The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1891-06-03
Special to the REcoRp-uNroN.


PHILADELPHIA, June 1.-THE City
Councils committee investigating the
method of ex-City Treasurer Bardsley
continued its inquiry this afternoon, the
Keystone Bank doings being under in
spection. Bank Examiner Drew stated
that there were ISIS shares of so-called
bogus stock. 1t was stock that should
have been cancelled, and is not, tech
nically, over-issued stock. 1t was mainly
in the name of John G.. Lucas. None OF
it was ever in the name of John Wanna
maker, and witness did not think he was
ever stakeholder, nor was William II.
Wanamaker, so far as he could recollect.
Mr.. Alexander, counsel for eX-Treas-
urer Bardsley, cross-examined Drew
very sharply Drew said he had made
semi-annua1 examinations of the Key
stone Bank for the past ten years. He
was not prepared to say that it was not
indebted to the amount of 100000 or
$500, 900 to other banks during the past
three or four years.
do you ever remember that before
Lucas died. said Alexander, ''haying
once called upon the keystone Bank a
week too soon?"
II don't remember any such letter.
said Drew.
did you not come to Philadelphia
once to examine the keystone Bank, and
then defer the examination for a week ?''
mo, sir'
At the close of Drew's examination
Councilman Citing offered resolution
that the Mayor write President Harrison.
asking him to order an investigation OF
the conduct Of the Treasury Department
in connection with the Keystone Bank
affair; ordering the production of all ac-
counts of the bank, and the appearance OF
Comptroller of the Currency Lacy before
the committee.
Tense Of the motion. He said: ''If the
banking law was to be acted upon and
construed as in the keystone case. there
would be little protection for any deposit
ors. By the confession Of Marsh in jan
uary, the Treasury Department became
aware of the keystone's rottenness, vet
ninety days thereafter the bank was
allowed to remain open and the city and
citizens of Philadelphia invited to deposit
their money. Some people who had
every opportunity to know the story OF
the rotten bank had every chance to get
out, while people who could not know
the story had every chance to get in. II
is the most extraordinary action on the
part of the General Government 1 ever
heard of.
II am not going to say whether Exam
liner Drew or Comptroller Lacy was re-
sponsible. But between them the bank
was kept open after the fraud was known
officially. Every obstacle one can fancy
has been thrown in our way. We can
look at the Treasurer's accounts, but we
want to look at the others, and find out
what other men were doing in those
ninety days after the frauds were known,
and while the city of PHILADELPHIA was
handling her millions in that bank"
One other member of the committee
voted with Elting, and four against him,
so the matter was dropped for the pres
ent, but it is expected to be revived
shortly.
Paying Teller Thomas, of the Key
stone Bank, said that another employe
and himself were kept very busy run
ming between the keystone and Spring
Garden Banks with cash to prepare fol
the visits OF the examiner. An impor-
tant point in Thomas testimony was to
the effect that during his six years con-
nection with the Keystone Bank, Ex-
aminer Drew dropped in about twice q
| week.
President Singerly of the Chestnut
street National Bank said: "Bardsley
was not paid any interest on what city
money he had in the BANK
The latest sensational outcome of bank
matters is that the validity of the Clear.
ing-house agreement between the
national banks is shortly to be tested liz
| the United States courts.