The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-05-29
A BIG LOAN TO A MYTH.
MORE OF THE SPRING GARDEN
RASCALlI- SHOWN Up.

A Note for $4,000 Drawn by Person
Who Never Z Bad ANY Existance Dis
covered Among the Assets-The
President Gives Bail, but the Cashier
Still Under Surveillance.
PHILADELPHIA, Pa, May 2s.-Francis
W. Kennedy, president Of the suspended
Spring Garden National Banb was arrested
this morning on a warrant sworn out by
Bank Examiner Drew, charging him with
making false entries in the books, false re-
turns TO the controller Of the currency.
and embezzlement OF $l00, goo and upward
OF the banks funds. Henry II. Kennedy,
cashier Of the bank and brother OF the
president, was also arrested, charged with
conspiracy with FEeneis w. Kennedy TO
make false entries, false returns and with
making both.
SURRENDERED VOLUNTARILY.
When the two accused men heard that
warrants We're out for their arrest they at
once went before United States Commis-
sioner Bell and gave themselves into Gus
tody. The counsel for the Kennedys stated
that they were willing to waive a hearing
and enter bonds for their appearance at
court. Commissioner Bell declined to al
low them to waive a hearing and fixed the
bail of Francis W. Kennedy at $40, 600 and
that of his brother, Henry II. Kennedy, at
$4,000, for a hearing on Monday next.
The kennedys are already under $4,000
bail each to answer a charge of receiving
money from depositors when they knew
that the bank was insolvent.
HENRY GIVES BAIL
In the case of Henry III. Kennedy bail
was at once entered for his appearance, and
he was released. Francis w. Kennedy
spent all day and part Of the night in an
unavailing effort to secure bondsmen. In
he was allowed to stay all
night at a hotel under the close
surveillance of four deputy marshals.
From the few developments that took place
to-day in the affairs of the Spring Garden
Bank it is evident that when the full story
of the banks management is told that it
will fairly rival that OF the looted Keystone
Bank. Receiver Fisher said to-day that
the further he examined into the affairs Of
the bank the blacker the outlook became
for the depositors.
WORTHLESS COLLATERAL.
1t is said that much of the collateral held
by the institution is of the most dubious
character, being one-name paper, stock of
companies that are more or less embarrassed
and such like. A member of the depositors'
investigating committee that is inyestigat-
ing the banks affairs said tonight that
among the collateral of the bank we're two
notes. one for $50 900 and the other for $780,
600, that are drawn by persons who have
no existence.
BUSINESS HOUSES CRIPPLED.
The suspension of the Spring Garden
Bank has been far-reaching in It's effects,
and many business houses have been seri-
ously crippled by it. Several failures have
taken place, the direct GAUGE of which, can
be traced TO the suspension of the bank
Yesterday the American Machine Company
was forced TO assign by reason of the bank y
failure, and to-day the Millward- Cliff
Cracker Company made an assignment
from the same cause. The Millward- Cliff
company is a stock company, and in an
investigation OF its affairs it was discovered
that Frank Benton. treasurer. had given
accommodation notes to the extent OF $780,
600 TO Francis w. Kennedy, president OF
the Spring Garden bank. When this was
discovered the officers of the company de-
cided to make an assignment to protect
their creditors, pending thorough investi-
cation. The company has a paid In capital
of 1926, 900, ana Its assets are now thought
to be about $4,000 in excess Of ita liabili-