The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-02-12
bETRAyAL Of TRUST
BY A BANK OFFICER
FraudulentIy Secures Over a
Million Dollars.
A SENSATION AT DETROIT
Vice. President Andrews of the Bank
Put Under Arrest.
GAVE BAIL FOR TEN THOUSAND DOLLARS
The Cashier Through Whom Adrews Secured
the Money by Means Of 0yerdraf,s and
Certified Checks in State Of
Nervous Collapse.
Vice. President Andrews of the Bank
Put Under Arrest.
GAVE BAIL FOR TEN THOUSAND DOLLARS
Nervous Collapse
(By the Associated Press)

Detroit, Mich, Feb. 10.--Vice-Pre
dent Frank c. Andrews, OF the City
Saving Bank, which has been in the
hands of State Banking Commissioner,
Geo. l.. Maltz, since this morning, was
arrested late this afternoon and arraign-
ed at 8: 80 O'clock tonight on the charge
OF 'willfully, fraudulentIy and knowing
ly" securing from the bank, without Sc
curity and without the knowledge OF the
other directors, a sum exceeding $l,00Q,-
900. He was released on $4,000 900 bail
and his examination was set for Febru-
airy 81. Cashier Henry c. Andrews,
through whom r. c.. Andrews is said TO
, have secured the money by means of
overdrafts and certified checks, is Sc
riously i'll at his home with nervous
prostration.
In addition to a total indebtedness to
the City Savings Bank of $1,158,000 TO
secure which Mr.. Andrews has signed
over to that institution all his real es-
tate and stocks, bonds and other securi-
ties, which, 1t is estimated, will total
about 81 100000 -Four local banks and
trust company held his checks, certi-
fed TO by Cashier Andrews to the
amount of $662, 900. A considerable num-
Der of these checks are protected by Sc
curities deposited with them by Mr.. An
drews
As soon as Commissioner Maltz took
charge Of the institution he began an
examination of its books. It was found
that Cashier Andrews had permitted +.
C.. Andrews TO overdraw his account
1914 600 Other liabilities brought +. c.
Andrews total Indebtedness to the bank
up to $1,158,000. In addition to this are
the certified checks to the amount OF
1862, 900. AT the close of his examina-
ton, Commissioner Maltz tonight issued
the following statement Of the banks
condition at the close OF business, Feb
ruary:
Resources-total loans and discounts,
bonds, mortgages and securities, $685.
093 overdrafts, 1913. 852; real estate, $l0,-
$685. cash in banks, s2ss, 697; other assets,
$1s,922.
Liabilities--stock, surplus. and undi-
vded profits, $225,212; deposits, $500
251.
| President F. C. Ineree explained the
manner in which the certified checks was
obtained as follows:
| "F G. Andrews would draw check Tor
| the amount he wanted and have 1t certi-
fed by the cashier. He would present
this certified check to the person he was
doing business with. and ask them to
hold il out for that day, as the bank was
not in funds to meet it.. Perhaps he
would thus hold it out for two or three
days, and eventually when there was
money enough in the bank to meet the
check, he would go in and take it out.
There would be only slip of paper in
, the drawer and the withdrawal would be
put down as a cash Item With this
monay he would in person pay the GER
titled check and tear il up
The city. Savings Bank was depository
for the funds of the county auditors,
their balance there being more than $780,
000 and f. c. Andrews was arrested this
afternoon on a complaint sworn out by
Auditor Christian, after a long confer
ence between the auditors and Prosecu-
tor Hunt. The warrant was served on
Andrews, who is commissioner of police,
by two of his detectives. The City Saw
| ings Bank was also the depository for
the board of education, which had a to-
tai of $4,000 on deposit. Other local