The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-06-15
troller is conscious of having done precisely
this in the case under consideration.

was in a nervous condition financially.
This was especially true of Philadelphia,
where at least four recent failures OF bank
ing institutions had unsettled confidence,
which was slowly returning. Failures are
often contagious, and placing this bank In
safe situation would have gone far toward
insuring the safety Of Others. II would
have saved the money aud credit OF nuner-
Gus depositors; 1t would have saved the city
of Philadelphia and the state of Pennsylvn-
MIA from serious losses; 1t would have saved
the sureties of the city treasurer from the
penalties of his official bond; il would have
in many ways conduced TO the promotion
of the welfare of the business community in
which 1t was situated.
THE ASSESSMENT.
There were several men of reputedly large
wealth on the board of directors these had
assured the controller that the sum Of
$3.50, 900 would be promptly paid In as soon
as the assessment was made; this assurance
was repeated to him just at the moment
when he was called upon to decide which
of the two penalties should be applied. The
assessment, IL paid in as agreed upon, would
prevent disastrous and scandalols
failure, while the harsher alternative
could bring nothing but serious loss and
much suffering to many. Ia honest exercise
of his discretion the controller determined
to give the stockholders one last chance, and
imposed an assessment Of $3.50. 200. Failing
to secure its payment after fourtsen business
days, he closed the association.
DELAY IN APPOINTING A RECEIVER.
"3. For the delay in the appoint
ment of a receiver. This criticism is of
very little importance in any event, and
has been pretty fully discussed already. In
closing this branch of the sub
jeot, in justice to one whose name
hrot1~hf fpfn ha dicnOa
sion of this failure, desire to
say that Hon. John Wanamaker has never
directly or indirectly suggested or solicited
one days delay in the closing of the bank,
nor in the appointment of a receiver, ex-
cept as appears by telegram
hereinafter quoted. / fact / have
met him but once during the present year,
and that meeting was on March 81, at the
suggestion and in the presence Of Hon. A. B.
Nettleton, then the acting Secretary of the
Treasury. This interview was the day after
the Keystone bank was closed and the fall
ure was folly discussed.
wANAMAKER's STOCK.
HE substantially confirmed the informa-
ton received from Mr.. Marsh, and said
that he held Rs pledge certificates repre-
senting about $50 shares of the stock of the
Keystone Bank, and that he had declined to
surrender them unless the Lucas estate
would payhlm the amount of his due.
urged him to use his influence in
aid OF the efforts being made to
reopen the bank. He promised to look into
the matter the same night, on his re-
turn to Philadelphia. and telegraphed Mr.
Drew 20 call upon him with statement Of
the assets and liabilities of the bank, and to
facilitate in every way possible his taking
an active interest in the scheme for reor-
ganization.
wANAMAKER's TELEGRAMs.
81 failed. however, in my attempt to enlist
him in the enterprise, and 50 ended all COM
munication between Us on any subject con-
nected with the bank'saffairs, excepting the
receipt Of the following kilograms:
TREASURY DEPARTMENT..
WASHINGTON, d. c., April 2, 1s91
From the postoffice department.
To Hon. Edtcard s. Lacey. Controller of the
Marsh OF the Keystone Bank came down last
night to say that ii was reported you intended
to appoint receiver of the Keystone Bank un-
less something more definite Is done to-day. /
believe nothing would suffer from giving them
twenty-four hours longer. at the end
of which they may put on paper something
more definite TO be presented to you. From
what he says they are getting along pretty
well in securing subscriptions to the new stock.
/ would recommend the appointment of a re-
ceiver be deferred, say one day, until he has an
opportunity to state something more definite
JOHN WANAMAKER.
TREASURY DEPARTMENT,
WASHINGTON. d. c., April 8, 1891
From the White House.
To Mr.. Lacey:
that the parties negotiating for control Of the
bank are 10 give an answer to him on Friday
next. WANAMAKER,
II desire to make this disclaimer as COM
prehensive and explicit as possible.
DREw's RESPONSIBILITY.
1n concluding this statement, | deem it
my duty to say that, in nay opinion,
several reports made by the bank
examiner did not reflect the
nnder consideration The degree Of blame,
if any, which properly attaches to Mr..
Drew, Is yet to be ascertained. He is en-
titled, by reason of his long and hitherto
acceptable service, TO an impartial investi-
cation and q fair hearing. He
has recently been so fully en-
ployed, by reason Of the failure of
banks, that it has as yet been found imprac-
ticable TO give the matter the consideration
its Importance demands. In the meantime,
however, he has been directed TO suspend
examinations until the facts are subs
mitted and conclusion reached"
READ WAS NOT INFORMED.
PHILADELPHIA, Pa, June 14.--United
States District Attorney r. J. Read said to.
night In regard 10 the statement OF Con-
troller Lacey, that he iMr. Lacey had
supposed him to be in full pos
session of knowledge of the criminal
acts of President Marsh. al wish to say
positively that had no knowledge
Of any criminal act by any living official
until after the bank was closed. did not
know until after the bank was closed that
Presidents Marsh's reports to the controller
of the currency were false. At the confer
ence held at Attorney General Miller's
on or about March 81 or %, the utmost
discretion was given me in the making OF
arrests. At the conference at which Con-
troller Lacey was present, it was acqulesced
in that it would be inadvisable TO make any
arrests while there was possibility Of a re-
organization being effected or the appoint
ment of receiver averted. Immediately
after Mr. Davis declined the presidency of the
bank and saw that all hope of reorganiza-
ton was over. caused the arrest Of Presi-
dent Marsh and Cashier Lawrence. Abso-
Lutte evidence that the reports made by
President Marsh to the controller of the
currency were false and that the entries
made In the books by President Marsh and
Cashier Lawrence we're false was not SUBJ
mitted to me until after they were ar
rested.n
DREw'S DEFENSE.
With regard to the controllers statement
that Examiner Drew's report did not show
the true condition Of the Keystone National
Bank, Mr.. Drew said tonight that he is
confident that the reports showed the condi-