Los Angeles herald., 1891-06-12
One Result of the Keystone
Bank Scandal.
The Bank Examiners Acts to
Be Investigated.
Comptroller Lacy Completes His Re-
port on the Natter.
President Harrison Writes the Mayor
OF Philadelphia an Assur-
ing Letter.
associated Press Dispatches.

WASHINGTON, June 11.-Lacy, comp
troller of currency, has completed his
report with regard to the Keystone Ma
tional bank, of Philadelphia, and will
submit it to the president. The presi-
dent will transmit it to the mayor of
Philadelphia, as response to the reso-
lutions of the common council.
The fact, not generally known until
now, came out today that Bank Exam
liner Drew has been suspended from SER
vice pending a complete investigation
of the matters now under inquiry.
SURPRISE AT PHILADELPHIA.
PHILADELPHIA, June 1.-THE an
nouncement,of Bank Examiner Drew's
suspension was surprise to the author
tiles here. There was not, it is said,
any particular knowledge affecting
Drew's integrity, but it was
dispute between Drew and COMPTROLLER
Lacy respecting the examiners reports
before the Keystone bank closed On
being shown the dispatch from Wash
ington, Mr.. Drew said some days ago
the comptroller wrote him desiring a
conference on the situation, and suggest
ing the propriety of his not resuming
work until such conference was had,
and yesterday he received telegram
from the comptroller stating that he
would fix an early time for the confer
ence. He presumes that this is the
foundation for his reported suspension.
He feels confident that an investigation
will result in his complete vindication.
PRESIDENT HARRIsoN's LETTER.
President Harrison, in reply to Mayor
Stuart's letter, regarding the affairs of
the Keystone bank, says the comptroller
ment of his entire action in connection
with the Keystone bank, and will sub
NIT his report without delay to the sec
retary OF the treasury, who will transmit
copy of it to Mayor Stuart The request
of the mayor that committee OF the
council or its expert accountant be al
lowed to inspect all the records of the
bank, has been referred to the comp.
troller, with the suggestion that under
the advice OF the district attorney the
receiver permit an examination by the
proper representatives of the creditors
into all matters of accounts, and partic-
ularlY where irregularities are charged,
with such reservation OF confidence as
the interest OF the creditors of the bank
or the. ends of public justice make neces-
sary. The president in conclusion says
81 am sure you will find every officer of
the government having any public con-
nection with this matter desirous to CO.
operate with the creditors of the bank in
all measures calculated to protect their
interests, and TO hold to proper account
ability every person having been guilty
of completely with the failure"
BARDsLEY CLEARED ON ONE COUNT.
In court, today, Assistant District At
torney Kinsey called attention to the in
dictment charging ex-Treasurer Bards-
ley with embezlement as a public of
ticer, and said as Bardsley had already
pleaded guilty upon seventeen bills, in
volving maximum of punishment of
fifty or sixty years, it would be useless
to take up this indictment. Hence the
jury returned verdict OF not guilty on
that count.
PROPERTY OF BARDsLEY ENJoINED.
City Solicitor Warwick has filed bill
of equity to restrain Bardsley's assignee
from disposing OF certain property in
Germantown, alleging that the purchase
money was collected by him as city
treasurer. Suit has also been filed by
the receiver of the Keystone bank to
restrain Bardsley's assignee from dis
posing of certain collaterals, etc.