The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-05-30
SPRING GARDEN RASCALS
TIE BANKS MONEY LOANED ON
WORTHLESS COLLATERAL.

An Cverissue of the Banks stock
Brought to Light-suits to be Brought
Against Other Officers Than the Ken
nedys - Director Evans One of the
Men Who Worked the Institution.
PHILADELPHIA, PA. May 29.-The Euen-
ing Telegraph this afternoon says: "Suits
will be begun in few days against Nelson
r. Evans. director in the Spring Garden
National Bank, who was so strongly urged
upon the government for appointment as
receiver of the Keystone Bank against
Ephraim Young, also q director of the
Spring Garden Bank, and against II.
Albrecht, an ex-director, now presi-
dent of the American Machine Company,
which was seized by the sheriff few days
ago. AL the suits will be brought in the
civil courts, and although reports of Grim
inal prosecution against other officers Of the
bank than the Kennedys president and
cashier) are flying thick and fast, both
Bank Examiner Drew and Receiver B. f.
Fisher say that they have taken no steps
toward suoh a contamination of the hopes
of the angry and despairing depositors.
NATURE OF THE SUITS.
"The exact nature Of the suits which will
be instituted is not yet known, because
while it has been definitely decided that
suits will be begun the manner in which to
approach is yet under consideration. It Is
known, however, that in addition to Evans
nearly S200, 900 of indebtedness to the bank
in his own and other persons, notes,
and practically worthless collateral,
lie has overdrawn one of bis accounts in
the bank almost $4,000. Evans kept two
~. l. IL n. ! A.
name of "Nelson +. Evans" is about square,
whatever balance there is being quite small
and on the right side of the account. The
othexAccount was in the name of Nelson
F. Evans, treasurer" and is the one which
is overdrawn.
WORTHLESS COLLATERAL.
This account was kept by Mr.. Evans as
treasurer of the Bunker Hill Mining Com
yany, whose stock at the par value of 81 for
its 250,000 shares is not worth l cent a
share. 1t is said that $4,000 to 100000
shares of this stock have been placed in the
Spring Garden bank as collateral
for loans to Evans and his friends
The exact relations of Director Young and
ex-Director Albrecht to the bank as debtors
have not been fully ascertained, although it
is known that nearly all are connected with
an overissue of the stock Of the bank.
THE ovERIssUE FRAUDULENT.
"The overissue was fraudulent one by the
Kennedys, even II no one else was mixed up
in the matter, and it has been ascertained
that part of this stock found its way into the
hands of Young aud Albrecht, and upon it
as collateral security for their own notes,
they have borrowed money, but how much
is not yet definitely known Two of the
banks with which the stock was pledged
were the Coatesville National Bank, which
is In for $4,000, and the Sixth National
Bank, $1,000, both of which have
brought suit upon the notes. Both
Young and Albrecht put all the
blame on President Kennedy. They claim
that they were innocent holders of the stock.
They did not know that it was part of an
overssue nor that it was not registered.
They both say that the stock was handed to
them by Kennedy. who asked them to make
their notes to outside banks and present the
stock as collateral security"
PRESIDENT KENNEDY IN JAIL.
President Francis w. Kennedy of the
suspended Spring Garden National Bank,
who was yesterday committed for further
hearing on a charge of embezzlement and
conspiracy to desraud, was taken to the
county prison this afternoon in default OF
bail. His bail had been fixed at 0,000,
Kennedy being detained in custody at an
hotel over night. During the day every at
tempt to obtain bondsmen has been made,
but without success.