Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-02-10
BANK CLOSED
Savings Institution Shut by
Commissioner.
WRECKED BY OFFICIAL
DIRECTORS IGNORANT OF HIS
ovER-DRAFTs.
Vice President and Cashier Had Used
Over Million Of Depositors'
Money.

DETROIT, February 1O.-The City Saw
ings Bank did not open for business this
morning. At 8 o'clock the following notice
was posted on the door: This bank is in
the hands of George L. Maltz, banking
commissioner
Asked the reason for the suspension of
the bank, State Bank Commissioner Maltz
said to the Associated Press:
Frank C. Andrews, vice president Of the
bank and commissioner Of police Is the
reason. The bank had total deposits of
something over 100000 and Andrews had
more than third Of this money out on
certified checks and over-drafts. There are
$685., 600 out in certified checks and 1914, 900
in over-drafts Henry R. Andrews, cashier
Of the bank, advanced this money to Frank
c. Andrews without the knowledge Of the
directors. They are entirely blameless in
this matter. When learned of the bank 8
condition, 1 closed it. do not know" he
said in answer to another question,
whether any steps will be taken by the
directors toward legal proceedings against
the Messrs. Andrews l will issue a state
ment this afternoon on the banks condi-
ton
The clearing house committee is now in
session discussing the suspension.
Officers of the Bank.
The officers Of the bank, which was or
ganized in 1889, are: President, Frank c.
Pingree; vice president, Frank C. Andrews;
cashier, H. r. Andrews; assistant cashier.
Joseph A. Schultz. The capital stock of
the bank is 100000,
According to the statement of the banks
condition. printed December II. the bank
had total deposits of 1902, 4O5. 80.
The county auditors have in the City
Savings Bank one fund of $10S,043 and
sinking fund balance of $42, ia.
County Clerk McGregor has $4,000 in the
bank as register in chancery.
The entire fund of the board of educa-
ton money Is in the City Savings Bank,
Cashier H. r. Andrews of the bank being
treasurer of the board. 1t is estimated
that this is about 100000 The public
library fund is also in the City Savings
Bank.
Frank c. Andrews has filed quit-claim
deed to the City Savings Bank on several
pieces of valuable property.
Banking Commissioner MaltZ said 1t did
not look as though F. c. Andrews had
much to cover the amount he has drawn
from the bank.
Statement of the Directors.
The directors of the City Savings Bank
have issued the following statement:
In justice to ourselves, our depositors and
stockholders, the undersigned, directors OF
the City Savings Bank, make the following
statement:
Early on Saturday morning we learned
for the first time that Henry r. Andrews,
cashier of the bank, had allowed Frank &.
Andrews to overdraw his account in the
sum of over 100000, all Of which checks
were outstanding. The bank was imme-
diately put into the hands of the banking
commissioner and we set about to get all
the security we could, Mr.. Frank c. An
drews has turned over to the bank a large
amount Of securities, from which we hope
to pay our depoSitors in full.
The banking commissioner has deemed it
the wisest policy to close the bank for the
present for the best interest of all de-
positors. Outside of the Frank &. An
drews Indebtedness and checks the bank
was never in a better condition.
(Signed) F. C. PINGREE,
WARD L. ANDRUS,
HOMER McGRAW,
JOSEPH SCHULTZ,
F. s. OSBORNE,
W. r. McGRAW.