The daily morning journal and courier., 1902-02-11
OVER A MILLION EMBEZZLED
DETROIT BANK TICTIMIZED BY
 ITS VICE ESIDERT.

Bank Arrested-Other Financial In-
 stitutiona Hold His Paper for S662, ,00O
 Cashier in CoiIusion-Examina
 of the Bank missioner.
 Detroit, Feb. 10.-Vice President Frank c. Andrews of the City Savings bank, which has been in the hands of State Banking Commissioner George l.. Maltz since this morning, was arrested late this afternoon and arraigned at 9;30 o'clock tonight on the charge of "wilfully fraudulently and knowingly" securing from the bank, without secur- ity, and without the knowledge of the other directors, a sum exceeding ,0OO,- 000 He was released on $10,000 bail and his examination was set for February 21, Cashier Henry c. Andrews, through whom F. c. Andrews is said to have secured the money by means of over- drafts and certified checks, is seriously ill at his home, with nervous prostra- tion
 In addition to total indebtedness to the City Savings bank of 1,15S,000 to secure which MT, Andrews has signed over to the institution all his real estate holdings and stocks bonds and other securities, which it is estimated will total about $1.O00,oO0, four local banks and a trust company hold his checks, certified to by Cashier Andrews, to the amount of $662, ,000. A considerable number of these checks are protected by securities deposited with them by Mr. Andrews.
 As soon as Commissioner Maltz took charge of the institution he immediate ly began an examination of it's books. It was found that Cashier Andrews had permitted F. C. Andrews to withdraw his account S914,0 ,000. Other liabilities brought F. c. Andrews total indebted ness to the bank up to S,15S,000 In addition to this, Cashier Andrews had certified to checks for r. c. Andrews, which he had deposited in other banks, to the amount of $662, ,00O At the close of his examination, Commissioner Maltz tonight issued the following statement of the banks condition at the close of business February s:
 Resources: Total loans and dis counts bonds, mortgages and securities, s2,363093: overdrafts. $913.852; real es- tate, s1o,S99; cash in banks, $aSS,697; other assets, $1S,922. tt Liabilities: Stock, surplus and un- divided profits, $225, PIP deposits, $3,370,- 25t. The examination showed that the rec ord of F. c. Andrews transactions were not kept in the regular way, but in a memorandum book. The first record of a transaction between Cashier Andrews and F. c. Andrews is January H. but the examiners estimate that the trans- actions have been going on for about six weeks. President F. c, Pingree ex- plained the manner in which the certi- fled checks was obtained as follows: ''F. c. Andrews would draw check for the amount he wanted, and have it | certified by the cashier, Henry R. An | drews. He would present this certified | check to the person he was doing busi- | ness with and ask them to hold it out | for that day, as the bank was not in funds to meet it. Perhaps he would thus hold it out l for two or three days, and eventually when there was enough money in the bank to meet the check, he would go in and draw it out. There would be only a slip of paper In the drawer and the withdrawal would be put down as cash item. With this money he would in person pay the certified check and tear it up. This was done time and again.
 The directors issued the following statement in regard to the suspensions: In justice to ourselves, our depositors and stockholders the undersigned direc- tors of the City Savings bank make the statement:
 Early on Saturday morning we learn- ed for the first time that Henry R. An drews, cashier of the bank, had allowed Frank c. Andrews to overdraw his ac- count in the sum of over $900, 000 and also had certified said Frank c. An drews' checks for over $700000, all of which checks were outstanding.
 The bank was immediately put into the hands of the banking commissioner and we set about to get all the secur- ties we could. Frank c. Andrews 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 deem- ed it the wisest policy to close the bank for the present for the best interest of all depositors. Outside of the Frank c. indebtedness and checks the bank was never in a better condition,
 (Signed)
 F. c. Pingree,
 Ward l.. Andrus,
 Homer McGraw,