The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1902-02-11
OFFICER BLAMED
CITY SAVINGS BANK OF DETROIT
COMPELLED TO SUSPEND
BUSINESS
VICE PRESIDENT THE CAUSE

ndo Nertine0 HIS Checks Tor over
s7oo. .o0o-institution Had Deposits
Of Three Million Dollars.
Detroit. Mich. Feb. 1.-THE City
Savings bank did not open for busi
ness during the morning. At 9 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 City Savings bank State Bank
ing Commissioner Maltz said TO the
Associated Press
Frank G. Andrews. vice president
Of the bank and commissioner Of po-
lice. is the reason. The bank had to-
tai deposits Of over $1,000 GOO and AM
drews had more than half Of this
money out on certified checks and
oyerdrafts Their. are s662 600 out in
certified checks and ssliooo in over.
drafts. Henry X. Andrews, cashier OF
the bank. advanced this money TO
edge OF the directors They are en-
tircly blameless In this matter. When
| learned Of the hanks condition l
closed IT, | do not know. said he.
in answer 10 another question.
whether any steps will he taken ty
the directors toward legal proceedings
against the Messrs Andrews
The officers OF the bank. which was
organized In lss. are: President.
Frank G. Pingree. vice president.
Frank c. Andrews. cashier. H. X.
Andrews assistant cashier. Joseph a.
Schultz.
The capital stock OF the bank is
$4,000 According 10 the statement
Of the banks condition printed Dec.
l.. tho bank hal total deposits Of So
nS1 .so5 90
Banking Commissioner Malt said
IL dii not look as though r. c. An
drews had much 10 cover the amount
he has drawn from the bank
Tho county auditors have in tho
City Savings bank one fund OF sl">.-
oi3 aud a sinking fund balance ~ So
ia. County Clerk McGregor has So
GOO In the bank as register in chan
Gerry The entire fund OF the board II
education money is in the City Say
ines bank. Cashier II. r. Andrews Ci
.hc bank being treasurer OF the board.
II is estimated that this is about Sis,.-
ooo The public library fund IS also
in the city Savings bank.
Frank c. Andrews has filed omit
claim deed 10 the City Savings bank
on several pieces of valuable property.
Statement by the Directors.
Later n the day the directors Of the
City Savings bank issued the follow.
ing statement;
"ln Justice 10 ourselves. our depos-
itors and stockholders the directors Of
the CITY Savings bank make the fol
lowing statement.
Early on Saturday morning We
learned for the first time that Henry
II. Andrews. cashier Of the bank. had
allowed Frank c. Andrews 10 over
draw his account in the sum of over
s?on. .ooo and had also. without consid-
Grafton certified said Frank G. An
drows' checks for over 5000 ,onu. all
Ing. The bank was Immediately
pOt INTO tue MINUS ~! NV "ahN1a-
commissioner and we set about to get
all the securities We could. Mr. Frank
c. Andrews has turned over 10 the
bank a large amount Of securities from
which We hope to pay our deposiiors
in full.
The banking commissioner has
deemed ii the wisest policy to close
the bank for the present for the best
interest OF all depostors Outside 81
Frank G. Andrews indebtedness and
checks the bank was never in better
condition"
Bank Commissioner Malt says hc
will appoint one of the local trust
company trustee of the bank. Vice
President Andrews has signed over
TO the City Savings bank all OF his
real estate holdings and at l.3o
O'Clock was in conference with the
Detroit Trust company. stockholders
of the City Savings bank. and other
bankers. II Is expected he will issue
n statement later. Walking up and
down the hallway outside the trust
company's office. he said:
Young men can point to me as an
example Of the result of speculation
mania.
None Of the other banks in the city
orc affected by the suspension Of the
CITY Savings bank. George RI. Rus
sell. chairman Of the clearinghouse
committee and president of the State
Savings bank. said at noon:
THE general banking situation here
has never been better. There will be
no further failures"
Small depostors in some Of the
other banks are withdrawing their &C
counts but there is nothing like run
.,, -