Omaha daily bee., 1902-02-11
FORCES BANK TO RUIN
Vice President Ties Up Over Nilli'n D'Ilaru
Of Deposits.
PRACTICALLY WRECKS THE INSTITUTION
Amount Dsfsultsd is Third Of the Eztir'
Deposits,
STATE COMMISSIONER TAKES cHARes
A,nss,"msnt E1Onsrats' the Director,
AHy BsmG
sTATE cOKMIsslsNLR TAXES cHANes
DtFAUL1ts PLACED UNDER ARREST
Criminal irregularities and Reckless
Speculation with Banks Funds
Are Assigned as Causeh
of Disaster.


DETROIT. Feb. 1G-vice President Frank
c. Andrews OF the City Savings bank, which
has been In the hands Of the State Banking
Commissioner George l.. Msltz since this
morning was arrested late this afternoon
and arrigned at 9;30 O'Clock tonight on the
charge OF wtlfully, fraudulently and know
ingly securing from the bank without Sc
curity and without knowledge OF the other
directors. a sum exceeding s1.000,O00. He
was released on $4,000 bail and his exami
nation was set for February 81.
Cashier Henry c, Andrews through
whom F. c. Andrews is said to have Sc
cured the money by means OF overdrafts
and certified checks, is Ill at his home with
nervous prostraton.
In addition to a total Indebtedness to the
City Savings bank OF s1,15s,00 to secure
which Mr.. Andrews has signed over to the
institution all his real estate holdings and
stock. bonds and other securities which it
is estimated will total about 81 900, 900.
Four local banks and trust company hold
his checks, certified to by Cashier Andrews,
to the amount of s662. 900. considerable
number of these checks are protected by
securities deposited with them by Mr.. An.
drews.
Allowed to 0verdraw.
AS soon as Commissioner Maltz took
charge Of the bank he began an examina-
tion of its books. 1t was found that
Cashier Andrews had permitted f. C. An
drews to overdraw his account $914,0Oo.
Other liabilities brought f. G. Andrews
total indebtedness to the bank up to 81
$4,000. In addition to this Cashier An
drews had certified to checks for F. c. An
drews which he had deposited in other
- h.
close Of his examination Commissioner
Maltz tonight issued the following state
ment Of the banks condition at the close Of
business February s:
Resources-Total loans and discounts,
bonds, morteages and securities x2.S6S.O9S;
Gyerdrafts ss Tesi ,sar estate ss, Gsg ~ cash
Liabilities-Stock, surplus and undivided
profits s225,2i2i deposits. sS.s7o.25l.
The exabination showed that the record
81 X. c.rA1dfe~ke e fAhsactions was not kept
in the regular way. but in a memorandum
book The first record OF transaction be-
tween Cashier Andrews and F. G. Andrews
is January IL. but the examiners estimate
that the transactions have been going on
for about six weeks. President f. @. Pin
gree explained the manner in which the GER
tilted checks was obtained as follows:
How Checks Are Certihed.
the amount he wanted and have II certified
by the cashier, Henry T. Andrews. he
person with whom he was doing business
and ask him to ho,d 1t out for that day as the
bank was not n f9nds 90 70 meet me IT, ~ peThhsP thap
days, and eventually, when there was
money enough in the bank to meet the
There There would be only a slip Of paper in the
drawer and the withdrawal would be put
he would in person pay the certified check
and tear 1t up. This was done time and
again.
The directors issued the following state
ments In regard to the suspension:
In Justice to ourselves. our deposItors and
stockholders, the undersigned directors of
the City Savings bank make the following
Early on Saturday morning we learned
for the first time that Henry X. Andrews.
ssheE Of the Ssnk R1a his esSsS tbs
sum of over 100000, and had also, with
out c0nsdeFatSn certified nSs sa6S sS Frank g
which checks were outstanding. The bank
was Immediately put into the hands OF the
to bsns Ret All the security we Could. Mr.. Frank
g. Andrews has turned over to the bank q
large amount OF securities, from which we
The banking commissioner has deemed II
the w,ses sop POSS tSs 3 best t0i Interest Of ali de
positors Outside of the Frank g. Andrews
indebtedness and checks checks the bank was
"''e' :" ~. C. PINGREE.
WARD l.. ANDRUS.
josEPH scHu1TrE.
#. 8. OSBORNE.
detectives Serve Warrant.
The City Savings bank was the depository
for the funds OF the county auditors, theiI
balances there being more than $150,000
and f. @. Andrews was arrested this after
49,
Christian. after a long conference betweeI
the auditors and Prosecutor Hunt. The
warrant was served on Andrews. who II
commissioner OF police. by two Of his de.
tectiyes In the once OF the Detroit Trus
company, where he had been In consG!ta
tion with the ofaeers Of the banks holding
his certified checks.
The City Savings bank was also the de
pository for the Board Of Education, whicl
had a total OF s4s7. .OO0 on deposit. othe
local banks win temporarily advance fund
to the Board OF Education for salarie
and running expenses.
At meeting Of the clearing house asso
citation this afternoon the following state
ment was issued;
Result of Criminal Conduct.
The disaster which has befallen the Cit
sayinss pank a is Ine rs,Hs ss,rs OF criminal IL IL
stitution and caused by the rash specuia
ti0n OF its vice president, who contTolle
the management and betrayed his trust
The bank has been expelled from the as
ISOLATION. The oficers OF this associatio
desire 70 state 10 the public that there
no need OF apprehension regarding an
other bank In the city. The present cond
tion OF the banks, as shown BY the week.
statements furnished 10 the clearing hous,
reveals an unusually strong showing I
reserve and cash. resources, and the fai
name and good reputation OF the banks Q
Detroit win not suffer by reason OF thi
trouble. N. W. O'BRlEN,
lSigned) Chairman.
i. c. BOWMAN, Secretary.
other Banks Not Affected.
There was nothing like a panic at an
Of the other banks in the city and CON
paratiyely few deposits were withdrawn q
3 result OF the excitement.
At the 0ratiOt Avenue branch Of the Cit
Savings bank. which drew its deposit