St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-06-13
QUAKER CITY RASCALS
Each Days Search Adds to the
Extent Of Their Crook
edness.
Sensational Testimony In
VolVing Officials Of the
United States.
An Additional Steal Of Hun
dreds of Thousands Dis
covered.
The Looted Banks We're Hon
eyeombed With Fraud
and Raseality.

and RaScallty.
PHILADELPHIA, Pa, June 12.-The
deeper the expert accountants probe
into the affairs of ex-City treasurer
Bardsley the more apparent the rascal
ltles OF the man become, and the enor-
nous sums which he made away are daily
added 10. Some very startling evidence
was produced to-day before the Bards-
ley investigation committee, prominent
United States officials, names being
brought into the case entirely unex-
pected to the majority of the committee.
Assistant Bank Examiner Jones. who is
very close to Bank Examiner Drew, was
on the stand and gave the committee in
formation regarding Comptroller La
cey's knowledge of the affairs of the
Keystone bank that has heretofore been
kept carefully guarded, This was that
on the 18th day OF last February. Comp
troller Lacey was in this city and per-
sonally visited the Keystone bank build
ing. and was shown the books and given
full insight into its condition as
known at that time by Bank Examiner
Drew.
Another Sensation
was the statement made by Gen. Louis
Wagner, the eX-director of public works.
This statement connected the name of
Assistant Secretary of the Treasury
Nettleton with the attempt to make
Nelson f. Evans, director of the Spring
Garden bank, receiver of the broken
Keystone bank. Assistant Bank Ev-
aminer Jones, when called to the stand,
explained at some length. in answer to
questions, the methods of examining
national banks and told when he took
the Keystone examination. On Feb. 2
said, by orders of the examiner, he took
official charge of the bank. Even after
the bank examiner took charge of the
bank, deposits were received from Feb.
. to March 20. He did not know what
was done about discounts, but did know
that depositors were allowed to check
out their deposits if they saw fit. After
the committee had asked all they
wished, Assistant Bank Examiner
Jones said: There is another thing
which l wish to state. Upon the
18TH day of last February Comptroller
Lacey was in this city. There was a
reception held at the Hotel LAFAYETTE.
which he attended. After it was over
Bank Examiner Drew brought Comp
troIler Lacey over to the Keystone bank
and L showed him the books, and ex-
planned to him the condition of affairs
as we then knew them to exist. l ex-
planned to him the padding of the New
ork bank exchange accounts, and in
formed him of due bills which had been
found. The difference found in the
ledger and the stock and bond accounts
for which the Lucas estate was held re-
sponsible at that time was
Thoroughly Explained to Him.
Comptroller Lacy understood at that
time all about the Lucas defalcation.
which at that time was understood to
be $500, 600. Then the assets were
considered and Comptroller Lacey
called the Sea Girt and Spring Lake
property worth 100000 instead of
S50O.000." This statement of Mr.. Jones
caused a great sensation, as Comptroller
Lacey's visit to the bank had been kept
a close secret and Bank Examiner
Drew had never, under the severe
cross-examination he has been sub
Jected to. allowed himself to give
the slightest intimation of it..
MIR. Jones also stated that, as an expert.
he did not believe it was possible to tell
by the books of the Keystone bank how
much of the deficit of the keystone
bank occurred before Mr.. Lucas death
and now much had occurred since. Ex-
Director of Public Works Louis Wag-
ner, who was asked to become president
of the Keystone bank at the time il was
proposed to reorganiZe it. proved a very
good witness. He testified that his
connection with the matter arose
terough his asking Treasurer Bardsley
to mention him for the receiver
ship. The day after this conversation
with Bardsley, which was on the I'd of
April, he received letter from Exam
iner Drew asking him to call at the
bank, and upon doing so Drew asked
him how he would like to be made pres
ident. He discussed and examined into
the matter for ten days and then de-
cllned. He said that he was told the
Capital Had All Been Sunk.
but that Comptroller Lacey was willing
to allow 100000 for the good will of the
bank, and 100000 would be subscribed.
At that time they showed bills receiya-
bic for 100000 or $500. COO, and as
sets for about the same amount, The
bills receivable which he examined he
considered were worth about6 60 cents on
the dollar, and the Sea Girt property. on
which he was we'll informed, he learned
was worth about so cents on the dol
lar. Drew told him of the over-issue
of the stock, but said that it had
all been called in. at that time he con-
sidered it would take $1,000, 900 to reor-
ganize the bank. Gen. Wagner, in con-
cluding his testimony, said: II was
satisfied at the time something was
hr,f Do IcIo
would tell me what 1t was. While at
the bank l said to Examiner Drew:
Nelson F. Evans. of the Spring Garden
bank, hear, is to be made receiver. as
| understand Wanamaker is backing
him. Drew answered, i guess
not then said something of the
accounts of the Spring Garden
bank which 1 did not understand.
Assistant Secretary Nettleton is a great
friend OF Evans. Nettleton has been a
heavy borrower at the Spring Garden
bank" Several other witnesses were
examined by the committee, but moth
ing further sensational was elected,
The auditor general and the state treas
urer were represented by Rufus E.
Shapeley, who before they went on the
stand read communication from At
torney-General HenseI, advising the
auditor general and the state treasurer
that while they might give all the in
formation they could to the committee
they were not to be examined as wit
nesses in the usual form.
AudftOr.GeneraI McCamant
then took the stand and testified that
the money due for licenses for 1899 and
the personal tax Of the same year had
all been paid in by Bardsley. For the
licenses for 1890, S361, COILS was still
due. The tax on municipal loans due