Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1902-02-11
OVER $l,80O,00O
Sunk by Frank R. Andrews Of
Detroit in Stocks.
City Savings Bank in Commissioners
Hands Andrews Arrested.
Was Vice President and Got Funds
Through the Cashier.

Detroit, Mich, Feb. 1O.-Vice Presi-
dent Frank II. 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. 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 ST.
100000 He was released on $4,000 bail
and his examination was set for Feb.
q. Cashier Henry C.. Andrews, through
whom F. c. Andrews is said to have Sc
cured the money by means of over
drafts and certified checks, is seriously
ill at his home, with nervous prostra
| ton.
| In addition to total Indebtedness to
| the City Savings Bank of 81, 15S, 900, to
secure which Mr.. Andrews has signed
over to the institution all his real es-
| tate holdings and stocks, bonds and
| other securities, which it is estimated
will total about $1,00OOOO, four local
banks and a trust company hold his
checks, certified to by Cashier Andrews
to the amount of $662,000. A consider
| able number Of these checks are pro-
tected by securities deposited with them
| by Mr.. Andrews.
| AS soon as Commissioner Maltz took
charge of the institution he immedi-
| ately began an examination of it's
books. 1t was found that Cashier An
drews had permitted F. r. Andrews to
| overdraw his account $914,0O0. Other
| l. - ~
| Indebtedness to the bank up to 81 ,15S,-
600. In addition to this, Cashier An
| drews had certified to checks for F. r.
Andrews, which he had deposited in
other banks, to the amount of 1862, 900.
| At the close of his examination, Com
| missioner Maltz, tonight, issued the fol-
| lowing statement of the banks condi-
ton at the close of business, Feb. s:
Resources-Total loans and discounts,
| bonds, mortgages and securities, 49,
| 363.093; overdrafts, $913,S52: real estate,
s1O,S99; cash in banks, $2SS, 697; other
assets. $1s,922.
| Liabilities-Stock, surplus and undi-
vided profit, $225,212; deposits, $780,
| 251.
The examination showed that the rec
ord of F. r. Andrews transactions was
| not kept in the regular way, but in a
memorandum book. The first record
| of a transaction between Cashier An
drews and F. II. Andrews is Jan. II, but
the examiners estimate that the tran
sactions have been going on for about
| six weeks.
The directors issued the following
statement in regard to the suspension:
tn 6nnnci-
| tors 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 r. Andrews to overdraw
| his account in the sum of over 5000. 900,
and also had certified said Frank c.
| Andrews checks for over 100000, all of
which checks were outstanding.
1.-THE bank was Immediately put into
| the hands of the banking commissioner,
and we set about to get all the secur-
| ity we could. Mr.. Frank r. 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
deemed it the wisest policy to close the
bank for the present for the best inter-
est Of all depositors. Outside of the
Frank r. Andrews Indebtedness and
checks the bank was never in a better
condition.
The City Savings Bank was the de-
pository for the funds of the county
auditors. their balance there being
more than s15O,0O0, and F. r. Andrews
was arrested, this afternoon, on a com7.
plant sworn out by Auditor Christian.
after a long conference between the au-
ditors and Prosecutor Hunt The war;
rant was served on Andrews, who is
commissioner Of police, by two of his
detectives, in the office of the Detroit
Trust Co, where he had been in con-
sultation with officers of the banks
holding his certified checks. The City
Savings Bank was also the depository
for the hoard of education, which had a
total of $467, 900 on deposit Other local
hanks will temporarily advance funds
to the board of education for salaries
and running expenses.
There was nothing like panic at any
of the other banks in the city and COM
paratively few deposits were with
drawn as result of the excitement. 1
At the Gratiot Avenue branch of the
City Savings Bank, which drew it's de- i
posts largely from the laboring people,
there were many pathetic scenes as the
Gepositors learned that the bank had
suspended. officers were in the vicin-
ity to quell any disorder, but their SER
vices We're not necessary at any time.
Unfortunate speculations, especially
heavy purchases of Amalgamated Cop
per stock, are believed to be RESPONSE
BILE for Mr. Andrews ruin. President
F. c. Pingree of the City Savings
Bank, says that Andrews told him that
he lost 100000 in Amalgamated Cop
per.
Cashier H. R. Andrews, who is not
relative of F. c. Andrews, is in seri-
Gus condition of collapse at his home.
Mrs. Andrews said, this afternoon:
He came home, Friday night, from
the bank so nervous and trembling that
he CROPPED his way to his bedroom and
has not stirred since then. For the
past three months my husband has not