Evening journal., 1891-06-23
Hia Last Day al Meyumenaing.
KEYSTONE BANK CORRESPONDENCE.
MIR. Drew's Knowledge Of the Banks
Insolvency shown.

MIR. Drewss Knowledge of the Banks
Insolvency shown.
PHILADELPHIA, June 28 The official
copy Of all the correspondence between
Controller Lacy, Bank Examiner Drew
and Others with reference to their affairs
Of the Keystone bank, which was sent TO
Mayor Stuart last week and by him was
transmitted to councils Investigating COM
mittee was given out for publication last
night by Chairman Van Osten. The cor
respondenee ia very voluminous and much
OF IL has already been published through
the reports Of the proceedings Of the In
vestigating committee and the statements
OF the people connected with the bank
The first letter is from Mr.. Drew to Con-
troller Lacey and gives the result OF his
examination Of the banks affairs when he
paid his official visit on Jan. Q and when
he was informed of the deficiency OF $780,
600, which had been distracted by Presi-
dent Lucas. He also gives in detail the
measures he took to recover the money
from the Lucas estate and the success he
met with in obtaining the bank building
and portion OF the property at the sea-
shore He says that Marsh was ignorant
ly led into the irregular transactions while
cashier by President Lucas, and that the
latter, on his deathbed exacted a promise
from Marsh to continue the deception
under representations that the money alb
stracted would soon be returned to the
bank from the result Of the Lucas enter
prises.
On Feb 10 Mr.. Drew wrote that he was
about 10 make "A statement Of the affairs of
the bank 10 the board OF directors and
asked for NEUTRALITY-SUSPICIOUS. upon which
be could net. On the following day he
sent a full statement OF the condition of
the bank to the controller and with il the
statement that il would take a very long
time 10 fully elucidate the methods by
which a large a part Of the capital stock
had been abstracted without disclosing the
deficit in the books. He added that he had
been led to believe that Marsh had only
been the tool OF designing chief, but late
developments had made him entertain sus-
picions Of Marsh.
On Feb 2S Drew wrote that If II was de-
cided to Assess the stockholders the notice
OF assessment should be preceded by the
strongest advice TO the directors to have
the money paid before the fact should be
made public and thus prevent a run on the
bank. In reply the controller urged that
prompt measures be taken TO rehabilitate
the bank, and unless some other way could
ur houuu nv OnCc nc WOulu OFueF m assess
ment OF the stock to be made at once.
After the assessment OF $3.50, 600 had been
made there were number of communities
tions passed in reference to the payment,
and after his patience had been exhausted
the controller telegraphed Drew March 10
TO visit the bank in the morning and await
his instructions On March 20 the tels-
gram was sent directing the bank TO be
closed.
The controller was informed frequently
Of the various steps which were being
taken TO reorganize the bank, all Of which
have been published from time to tima
On March % Drew wrote a private letter
TO Lacy, In which he advised that no action
be taken against Marsh as his services
were indispensable to the investigation.
Previous to Marshs arrest numerous let
ters and kilograms passed in reference to
reorganization in one of which Drew an
nounced that Postmaster Field had CON
sented 60 accept the presidency, but it was
contradicted next day, as his business part
ners objected
On May Bardsley started 10 Washing
ton TO confer with the controller, but re-
ceived a telegram at Baltimore that Marsh
had been arrested, and he returned a.
once.
The correspondence closes with the tele-
grams from the controller announcing the
appointment Of Mr.. Yardly as receiver Of
the hank