The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-10-13
HAYWOOD PUT UNDER BAIL
ILLEGED ASSOCIATE OF QUAY WAItEs
a REARING.

Case Against Him Based Upon Ills Action
Ra state Treasurer I'm Agreeing Not To
Withdraw state Money from the Peo-
pies Bank Until a Loan WINS Satisfied.
PHILADELPHIA. Oct. II. Former State Treas
urer BENJAMIN j. Haywood OF Mercer county
was arraiRned to-day for completely with SEN
ator Quay, Charles II. Mckee OF PittsburR and
Richard II. Quay. for making unlawful use OF
the funds OF the Peoples Bank. in which more
than half n million dollars Of State deposits
were kept. Through his counsel. Mr.. Haywood
waived a hearing and entered $1,000 hail for
trial at the November term of the Criminal
Court. The security was furnished bv David
II. Lane. retired Republican oflceholder. who
entered u similar amount OF security for Sem
ator Quay.
Mr.. Haywood arrived In town from Pittsburg
this morning and left for his home this even
ing. lie smoked and chatted with his friends
in the corridor of the Walton Hotel during the
day and appeared 10 regard the whole affair as
trivial. The receiver OF tho bank. Thomas W.
Barlow, under advice OF his counsel. refuses to
reveal any of the facts shown by the books OF
the broken bank. or whether Haywood had at
any time a depositor's account there.
The specific facts relating to Haywood's acts
in the alleged conspiracy are the increasing oi
the State deposits In the Peoples Bank at the
time he was State Treasurer, to the additional
amount OF SlUD,UOU, WIN INSTRUCTIONS 10 JnB
bank cashier that no part Of the State deposit
should be drawn on until a loan OF SlO0,OOO to
Richard h. Quay should be arranged aud paid;
on call from August. 1895. until March %.
1898. when the bank collapsed. After the bank
Quay and his sou aud paid to the, receiver.
,m The only 9Ra t, Sthe t6u POINT n, 5 5G3HSIhinSS HAY hSywq pSa
receivers accounts Is involved in a letter to
the late Caslier .Honkins., instructing him TO
buy 300 shares OF metropolitan Traction stock.
md Indicating that IA note to cover the am Ount
OF the purchase had been made and signed by
HAYWOOD The receiver did not reveal at the
NOTE note sGsaedna j. j. H lay %SSSF"i for 81 ,$i rs D SHES was
dated dated Dec 6tssr ID. 1885, ese and, was secured S"aiSsd By YSS
shares Of METROPOLITAN Traction stock as col
The binding over Of Haywood practically dis
poses OF the case against Quay and his %associ-
e eiese u8 tdue the s fElm the b tfiaI Is D %tiSrne TsG ofaa ie
The a%ecounts Of the Peoples Bank e establish
secure the, retention Of the defendants for trial.
cent DISCLOSURES in the, operations OF the
PEOPLES pa Bank in stock spee%Iati3Pn ion and
Treasury was practically empty. and a settle
ment with the eity q Philadelphia for a sun OF
appro thhn isli9 81 sSSS. {GS P tc ths pu fSf a sshd an
fund we're delayed for months beyond the date
they, were due by law. and then the accumu-
sion Of the receiver of the Peoples Bank. and
found among the banks effects, is the famous
Indemnity note" given to State Treasurer
Haywood to secure him for the advance OF sal
aries to certain, employees at Harrisburg car
appropriation by the Legislature. The ex-
pected appropriation was vetoed by Gov: Hast
ings. The advance payment.o OF the salaries was
The note at the bank was discounted for
fraction over $1,000. Among the signatures
appended to It Is that OF the Hon. Boies PEN
rose, junior United States Senator. The note
is not yet due.