New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-07-11
BARDSLEY'S STATEMENT
WHAT THE CONVICTED TREASURER SAID
ABOUT Mr. WANAMAKER.
THE PHILADELPHIA CONlMITTEE-HIs
nE-SI Al. OLE RARnsIEY,S CIARGEs

PHILADELPHIA July 1O-The subcommittee Of the
Finance Committee Of City Councils that IS mquirng
into the failure OF the Keystone National Bank and
the affairs OF cx-City Treasurer John Bardsley, held
long session this afternoon The main witnesses were
Robert NJ Mcwadc. city editor Of "The Public Ledger;
William V. Mexican, cditor-in-chei Of the sano paper,
and Postmaster-General Wanainaker
The testimony Of Mr.. McWadc and Mr.. Mexican had
reference to two statements obtained by the former
from Bardsley June IS and 10, four days before
the accused City Treasurer made his public statement
in court when brought up for sentence. Mr. Nc
wade the first witness. lie said that he went to
the county prison on Thursday, June 15 and inter
viewed the imprisoned exGty Treasurer. BaTdsley
talked freely and understood that the interview was
for publication lie told Bardsey that in view Of
certain charges made in the newspapers, he thought
It proper for him to make full statement,
particularly as to what became of the
s945O0O deposited, which had disappeared,
A consultation was held between Mr. Mexican, himself
and another member OF the editorial force Of "The
Ledger and il was decided not TO publish it.
Mr. Mexican was not sworn. lie said that because
the statement implicated a number of reputable citizens
upon the testimony of a witness not credible it was
decided that 1t was not proper to publish it,
Mr. Mexican then submitted the first interview and
Mr. Mcwade the second to the committee. 1t was de
cdcd by vote OF TO to listen Mt once 10 the public
reading OF the statements.
IN the FIRST interview Bardsley said: {" I have made
every restitution in my power, having handed over to
an assignee all the property that possessed As for
the 100000 which is said TO be missing, can account,
fer L yself concerned, for every dollar Of it.
- far as those duebs concerned can prove that
they are all genuine Cashier Hayes and Mr.. Maeulrc
Of the Keystone National Bank, acknowledgcd the
signatures. But the man Marsh who could explain
everything, the man who coII tell all about where
that 293OO 600. has gone off Ike coward despite MS
pro.cstatloas that he would stand by me t. the end
How was II that Bank Examiner Drew aid not dis
cover the banks condition earlier than he ddl'
Perhaps there was a good reason replied Mr.
Bartsey In a significant tone for his failure TO dis
close his discovery. For thing he was heavy
borrower from the bank. lie first borrowed from John
c. Lucas, to whom he gave his promissory note. When
Lncas died Marsh transferred Drcw's note 70 his own
drawer. Lucas rad Drew under his thumb all nmng
and Marsh kept him In the same position. why, II
was really owing to Drew that put much of the
city's money into the Keystone Bank. 1t occurred IN
this way About month after ! was elected CiW
Treasurer Drew came to me with a prepared statement
OF the condition Of the Keystone Bant. showing that it
vac not only perfectly solvent but had large amount
Of reserve capital lie said that it was not like the
Third National which had lot Of dead wood among its
directors and that the board Of directors Of the Key
stone was made mp Of live. energetic men, It was
largely in consequence of his representations that
made heavy deposits there of both the city and State
moneys
"When the bank met my checks promptly during the
first year had ample confidence In IT, 1t WIS but a
short time prior to the last run on the bank that !
asccrtained anything tangible about tho Lucas in
dcbtedness Marsh first told that Lucas was short
ebout 100000 or 100000 Then he SAID 1t
was nearly 100000. After that he increased
the amount Of the shortage or indebtedness 10 from
$4,000 to 800 900. Marsh told me that John Nara
,.r 1-no,rir,iv held over no shares Of our over
90. .c.NOfo +it,r, .ucfsl ls
had never paid or given any value for them whatever
WanamaIer's demand Was that Mrs Lucas was to give
$4,000 Of that amount, Marsh $4,000 and the bank
the remaining $4,000.
"Tho dcpositors hid all this time acted nobly
some Of tho stockholders were mean, and few
should, from what know, be in prison too pl2n
was arranged that the stock was TO be thrown INTO
a pool or given up. in order to help The rebuilding
Of the bank. Everything seemed clear for a speedy
and satisfactory arrangement, whcn John Wana-
maker upset all our plans by his remarkable demand,
accompanied by the threat that unless the SlOo.-
900 was paid over to his lawyer, p T. Rotb.imcl he
would close the bank. Marsh vas frightened ana di
not know what to do. ! told hin TO engage good
LAWYERS at once ard to Instruct them to demand tie
over-issue from John WanamakCr. and not p2y him
cent. I .howcd him that John Wanamak-r was
knowingly gu ity OF crime In retaining those over
lss;, d share and that he must not be permitted 70
bulldozc the bark; Marsh took my advice and Ell
gagged Mayer sulzbergcr and John G.. Johnson. They
demanded the stock and WanamaEer reduced his a.
mand to 800. 900, but he and his lawyer were told
that il the stock were not returned by certain
specified date legal action would he taken against him.
Before that date John Vanam1kcr weakened and re
turned every share Of tho ovcr-lseuc.
But while this going on, Marsh was still
frightened, and he said 10 nc one day: II John
Wanamacr IS going 10 tell Lacey, I'll be ahead Of him
and tell the whole business myself That afternoon
he took train for Washington and made clean breast
Of everything 10 the Controller that night After he
left Mr. Lacey that gentleman hurried from his home
afr his lawver with the intention of having Marsh
arrested In Washington. Unfortunately he could moi
find his lawyer anywhere, so he allowed Marsh TO -
home TO Philadelphia. but tcleeraphed that nieht u
Ban. Examiner Drew, ordering him to close the banf
on tie following morning"
McWade asked him " In q statement which yol
overheard Marsh make TO me- You must recollect what
he said about John Wanamaker blackmali.ng the bank
and being responsible iOr It's prccarouS condition
Eardsl,y answered Il do ccrtairiy. Let mo
explain to yon what sort Of borrower John NaI'r
maker was and how he borrowed. Here's an m
stance: In March, 1900, Marsh came 10 NC III
rroai 0drct ard said that John Wanamaker wanted
900 from the bank ami must have II right away
Marsh added tlat he tod Wanamaker thai the banR
had not that large amount OF money to spare-Ladh
n on hand i'm fact. oad WGlamaker said to him ula
he knew where TO get it, Marsh sad TO me tha'
Wanamaker was a good customer oi the b1nh any
how aud he want ID to oblsc him. tod nun tha'
| cond not do anything for mm Two dal' A'cF
ward lie rcturnod and SAID that John Wanamaker was
nersistent and must have the money that he Aho"
tba uank did not have II. but if would lend IT, Jhe
baul, would not ask the Interest but would pay over
a, me direct whatever W1lanaAcr Wuud asloe #"
Iyc. ! let him have the money and John "aIa
maker got IT, Ihe books OF the bank 0nsnt ID e"'
A good idea Of his TRANSACTIONS
Z .t,4 T,.pl
Here Mr. Bardsiey paused, and with his nSAt ianu
on his forehead let hs head drop on the I'tlc ron
tablet on which the food rests that IS passed. tuous"
,be grated cell d.,or liz few minutes he looaed mp
and with silh said he thought 1t was very strange
that Colonel \. X Mcclure, Thomas Doan ana diners
should have deserted him IN his hour 0f trouble
when | was a candidate for City Treasurer" said
bo renectiyeIv 81 called on Colonel Mcclure and re-
ported 10 him I'm detail everything In nv past life that
might have by any possibility been termed wrohs
or fault said to him: colonel If YOU think thai
with hi, 10 ord should not sti1d a. a cand dac ue
The people ,ay the word aud viii withdraw lie lou
me 1, 20 ahead that The Tines would support m io
Iah