Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-06-30
KEYSTONE BANK STOCK.
Investigation by Councils Committee Il
Philadelphia Resumed.

| Philadelphia Resumed.
The first witness before the councils COM
mittee investigating the Keystone Bank affairs
of Philadelphia yesterday afternoon was s. p.
! Durham, president of the Mechanics National
Bank of Trenton, N. J. Mr.. Durham tes-
titled that the bank had loaned Henry H. Yard
money on two certificates of the Keystone Bark.
one of which was in the name of John Wanna
| maker. and power Of transfer on the back
| signed by Mr.. Wanamaker; the other in the
name of A. L. Single and the transfer signed
| by him.
| The certificate in Mr.. Wanamaker's name was
| No. 450, for 200 shares, and the loan was made
| April %, 1890. on Yards personal note. Since
| the loan was made the bank has parted with
certificate No. 450 and received certificate No.
! 907 in it's place.
| Mr.. Durham was questioned at great length,
but little of importance was elected from him.
Efhngham p. Morris, president Of the Girard
Trust Company, who was the next witness, testl-
| fled that his company had never loaned money
to Bardsley or discounted any paper for him.
In answer to the question Mr.. Morris said that
his company had once held certificate No. 45O
Of the Keystone Bank. The certificate, together
with No. Ash. 452. 453 and 454, were held as col
| lateral by the Girard Company for loan made
| to Mr.. Wanamaker on March 8, 1886. Each OF
the certificates was for 200 shares The loan
was called in by the trust company on OCTOBER
"a, 1859. Mr.. Morris had brought with him the
loan book of his company, and in looking 1t
over Mr.. Etting, a member of the committee,
called his attention to three loans made to the
Keystone Bank.
Mr.. Morris said that the loans were made to
the Keystone Bank on November and III, 1891
They were temporary loans and the collateral
offered by the bank was 243 shares of preferred
and ,461 shares of common electric trust stock.
Mr. Marsh. president of the Keystone Bank,
came to Mr.. Morris and borrowed the money,
stating at the time that it would be great OBJ
legation to Mr.. WanamRker.
Mr.. Morris understood that the loan WAS to
be made to Mr.. Wanamaker. and, as he put it,
I'VE are willing at any time to loan Mr.. Wanna
maker s4O,O O0." The loans were repaid by the
Keystone Bank the morning of the day after
they were loaned. Mr. Morris said that subse-
quently the Girard Company loaned Mr. Wanna
maker money on what he thinks were the same
shares of electric trust stock.
SIGNED FOR Mr.. wANAMAKER.
Howard Spencer Jones, clerk in the employ
OF Mr.. Wanamaker, was the next witness. Sew
eral Of the certificates pledged by Mr.. Wanna
maker to his brokers stood in Mr. Jones name.
Mr.. Jones explained that he signed the trans
fers on the back of the certificates at the re-
quest OF Mr.. " anamaker. He did not know
that the stock stood in his name.
Mr.. Jones said that w. Rankin, in whose name
several of the certificates stood, was boy or
youth, formerly in the employ of Mr.. Wanna
maker.
Samuel A. Mcclure, formerly the assistant
cashier of the defunct Spring Garden Bank,
was asked about due bill which Bardsey got
from the Pennsylvania Trust Company on the
3D. of October, 1890. Mcclure replied that
Bardsley deposited Sl50, 900 in the trust COM
pany short time before Francis W. Kennedy,
who was president of the Penn Trust Com
pany, as well as of the Spring Garden Bank,
then came to him, on October 3, and told him
to make Bardsey outa due bill for the $3.50, 900.
This he did, and Bardsley deposited it in the
Spring Garden Bank. Mcclure stated that in
so far as the Penn Trust Company was con-
cerned no cash was received or paid. Bardsley
had originally deposited the money in the
Spring Garden Bank, to which the due bill was
returned. President Kennedy told him that
the transfer from the bank to the trust COM
pany was made SO that the bank would not
have so large a line of deposits and be COM
PEELED to carry large reserve fund.
A number of officials of national banks and
trust companies were also called, but they all
testified that their institution had never made
any loan to John Bardsley, discounted his
paper or borrowed money from him.
MR.. wASAMAKER DID NOT APPEAR.
Contrary to the general impression Post
master General Wanamaker did not appear be-
fore the committee to explain the apparent
discrepancies between his previous testimony
relative to his ownership Of Keystone Bank
stock and facts subsequently developed by the
books Of the bank. The following letter from
Mr.. Wanamaker was read by Chairman Van
Osten:
PHILADELPHIA. June o.
William B. Van Osten, esq.
Dear Sir It seems to be thought by some that
tain evidence offered at the last meeting OF
mittee Is not in harmony with the testimony delivered
by me when appeared before you o witness.
assume that Your committee fully understands the
matter IT, however. there is any information wanted
from me shall be glad at twenty -four hours notice
meet any member or members Of the committee and
explain any every item OF my statement attend
any meeting Of which have notice.
communication was also received from ex-
City Treasurer Bardsley's counsel, stating that
if the committee was DESTROYS of any informa-
ton from his client, they should put it in
writing and submit it to Bardsley, who would
answer in the same manner.