Evening star. [volume] (Washington, D.C.) 1854-1972, 1892-04-29
NATIONAL BANK INVESTIGATION.
Testimony Taken Before the House Com.
mittee at Its Session Today.

Testimony Taken Before the House Com
mttee at Its Session Today.
The banking and currency committee of the
House has found difficulty each day in secur-
ing a quorum to conduct the national bank in
vestigation, the technical character Of the in
quiry and the fact that the failure has been
investigated heretofore with a great deal of
thoroughness tending to lessen interest IN il,
SO that today the committee, on motion
of Representative Walker. adopted resolu-
ton making six members quorum for the
purposes OK the investigation. Controller
Laceys examination was continued. aud he put
in evidence the Geographic and mail corre-
spondence between the Office of witness. and
Examiner Drew and Keystone Bank officers be-
fore and after the failure of the keystone Bank
A letter from Examiner Drew to Mr. Lacey.
received about February 20. 1891. was read. In
this letter Drew said he had further axamined
the banks affairs and that it would take
long time to find out the methods by which
such large abstraction of its funds had been
made without his knowledge. The letter
also stated that he Drew was be-
ginning to suspect Marsh. The letter
accompanying Mr.. Drew's final report,
received March 9. stated that there was no I'M
easiness among the depositors. This letter
reached him. Mr.. Lacey said. fourteen bust
ness days before the bank was closed. It
appeared from the reports OF Examiner Drew
that certain liabilities Ill the shape OF clearing
house loan certificates aggregating about
S544000 were omitted in the report of January
"a 1881. Liabilities of this nature were in
Guided i'll reports of February 16 and 60.
although their aggregates were less than at the
date of the January report
Mr.. Lacey continued to read from copies Of
correspondence between himself and the bank
examiner. and told of his action on the Tia
of March in ordering an assessment OF
$3.50 900 to make good the impairment of the
capital stock of the bank. On March Is. Mr..
Lacey said, President Marsh came to Washing
ton, called upon him and told him there was
a certain overissue of $500 shares OF stock OF
the keystone Bank i'll existence. Marsh said
that Mr.. Lucas formerly president of
the bank) had been interested with Mr..
Wanamaker in deal connected with
the Reading railroad. In order to supply
money Mr.. Lucas had furnished the shares OF
stock to Mr.. Wanamaker. who had used them
ms collateral, and borrowed money to carry
out Mr.. Lucas part of the deal.
Marsh explained that it would not
be well to attempt to resuscltate
the bank while this stock was in existence or
until some of it was retired. Mr.. Wanamaker.
Mr.. Marsh said, had refused to surrendee the
stock. though the only reason why he should do
SO was because he was patron and friend of the
bank. Mr.. Marsh said ne had made an
arrangement with Mr.. Wanamaker whereby he
has to surrender the stock; but Mr.. Waua-
maker had notified him (Marsh) that ne could
not carry out the arrangement. Marsh there
fore came to him (Mr. Lacy. He suggested
to Mr.. Marsh that he go to Mr.. Wanamakers
house and inform him as to the overissue OF
stock Meantime ne (Mr; Lacey went to soic-
itor General Taft, (who was Acting Attor-
ney GeneraD and told him that
Marsh was in Washington and could
be arrested before he left the
city. Mr. Taft, however. did not act favorably
on the suggestion. Later in the evening he
(Mr Lacey again saw Marsh. who gave him
to understand that Mr.. Wanamaker had
not given him any encouragement in the mat
ter of the surrender of the stock. This closed
their interview and the next day the bank was
closed.
The committee at this point adjourned until
tomorrow.