Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1898-10-04
SENATOR ACCUSED
OF BANK wRECKING.
HE AND OTHERS UNDER ARREST
CASE GREW OUT OF THE FAILURE
OF THE PEOPLES BANK.
Quay and His Son and Three Others
Charged With Conspiracy to Use
Public Moneys on Deposit
Declared to Be Il PO-
litical Move.

PHILADELPHIA, Oct. 3.-Warrants were
issued to-day for the arrest of United
States Senator Matthew Stanley Quay, his
son, Richard r. Quay; eX-State Treasurer
BENJAMIN j. Haywood and Charles H. Nc
Kee, of Pittsburg, law partner of Lieuten-
ant Governor Lyon. They are accused of
conspiracy with John S. Hopkins, formerly
cashier of the Peoples bank. to use public
moneys for their own use. Hopkins killed
himself last March, shortly before the
banks failure.
Senator Quay and his son came up from
Atlantic City as soon as they heard of
their intended arrest. They promptly sur
rendered themselves and Magistrate Jer
mon held them in 5000 bail each for
hearing at noon next Thursday. David II.
Lane, the Republican leader, became their
bondsman, and this afternoon they returned
to the seashore. By advice OF their attor-
ney, they declined to discuss the case. They
will come back TO the city on Wednesday,
so as to be in full time for the hearing.
Mr.. Haywood is in Montana and Mr.. Nc
Kee in New York.
United States Senator Penrose, who was
with his colleague this afternoon, spoke
freely after the latter's departure for At
lantic City.
Il presume Senator Quay will not make
any statement at this juncture," said he,
regarding this last dastardly attack Of
his malevolent enemies, though he doubt
less will, in the proper time. There is. how
ever, no reason why 1, as his colleague and
personal friend, should be silent.
Attempted assassination of character has
been almost the sole weapon of attack by
Senator Quay's opponents for several years,
and the methods pursued have been aug
mented in viciousness and vindictiveness as
hanrl ct
the last despairing effort of unscrupulous
conspirators comes this brutal move of the
opposition which they have had upon their
programme for weeks, with the desperate
hope that it might, in some way, aid in the
election of 4 Democratic legislature. The
people of Pennsylvania are, above all things
else fair and just, and they can be trusted
to see through the sinister motives ami
mating the small coterie Of disgruntled,
defeated politicians who are responsible
for the sensational resort to the courts.
In due time there will be complete eX-
position of the true inwardness of this
latest act in the drama of character assas-
sination now so conspicuous feature in
Pennsylvania politics"
The warrants were made out on Saturday
by Magistrate Jerome, at the instance Of
District Attorney Graham and on the af-
HutN4l VI NHdTleS L F. myers, OIL tIle ulStTlCt
| attorneys office. Myers is a detective and
acted on information furnished by Thomas
W. Barlow, received of the Peoples bank.
The affidavit on which the warrants were
| issued is as follows:
Charles F. Myers, being sworn according
| to law, doth depose and say that Matthew
| Stanley Quay, Benjamin ]. Haywood, Rich
| ard r. Quay and Charles H. Mckee and
| other persons to this deponent unknown
did unlawfully combine, confederate, con-
| spire and agree to and with each other and
| the said persons unknown, to use the pub
| lie moneys of the commonwealth of Penn
| sylvania for their own use, and also did
| combine, confederate and conspire and
agree to ami with each other and divers
| persons to this deponent unknown, and to
| and with John S. Hopkins, deceased for
merly cashier of the Peoples bank, of Phil
| adelphia, corporation duly created and
| existing under the laws of the common
| wealth of Pennsylvania, to unlawfully loan
| public moneys and to unlawfully buy and
sell stocks, that is. shares Of stock, in
divers corporations, and did unlawfully use
and employ the moneys of the Peoples
| bank within the county or Philadelphia
and within two years past"
District Attorney Graham said that. from
| evidence in the shape of letters and pa
/ pers furnished to him, he believed it his
| duty to begin proceedings. He added:
Il propose to have a hearing as quickly
| as possible, and to produce at that near
| ing all the facts necessary to a binding
over Some of the facts will be reserved
| until the time of the trial.
"If the state OF affairs as represented tc
| me is true 1t ought to be exposed. Ihis
rottenness ought to be shown UP, no mat
ter upon whom it reflects. 1t Is not my
ri n
of a case. and 1 will say nothing further
| as to its merits.
"It was brought to my knowledge on Fri
day. Although Mr. Barlow is assistant dis
| trict attorney, none of these facts was
| given me by him. He always kept his
duties as receiver entirely separate from
his duties in this office. When sent for II
connection with the evidence that WI
sought. he cheerfully and willingly deliv'
cred up what was in his possession
Mr.. Graham expressed a firm determine
| ton to proceed vigorously.
| James H. McManes. formerly president
| of the defunct Peoples bank. said that ht
had known the warrants were to be issued
although he had nothing to do with the
| action. He asserted ignorance of any trans
actions justifying it. Mr.. McManes added:
Senator Quay and his son. Richard, botf
had their personal notes discounted at th'
bank. the last of which matured after th'
bank had closed its doors. These note
were all promptly paid when due, ant
neither Mr.. Quay or his son Is indebted t.
the hank one dollar that | know of. M,
feelings toward Mr.. Quay and the othe
men are of the most friendly character
Mr.. Quay and had our differences IN dav
gone by, but they were patched up Ion;
ago."
The news struck political circles of al
| shades of faith like thunderboit, ana
| variety of explanations We're gwen an
discussed throughout the day Secretar,
of the Commonwealth David Martin salt
he knew nothing beyond the newspape
statements The affair acquires additiona
| significance from the fact that 1t come
in the midst of one of the most bitter cam
paigns ever fought between Quay and hi
opponents, involving the question of his re
| election to the senate
The Peoples bank suspended business o.
March "a last and it presently develope
that Cashier Hopkins had committed sui
| eide At this time the state had on de
posft in the bank S5C5.Oo0 and the city So.
co., but the institution was insolvent Pres
ident McManes agreed to make good tn
amount of liabilities, and most of it ha
been since paid.
A BALL PLAYERS CRIME.