The age-herald., 1902-02-11
ViCe-President of Detroit Bank Draws Enormous Amounts
 Without Security
IS UNDER ARREST AND
 CASHIER IS FRUSTRATED
Many Laborine Men and Farmers Were Depositors and Many Pa
 thetic Scenes Followed the
 Announced Suspension.

Detroit. Mich, February 10.-Vice President Frank C. Andrews of the City Savings Bank which has been in the hands of State Banking Commissioner Maltze since this morning was arrested late today and arraigned tonight on the charge of "wilfully, fraudulently and knowingly securing from the bank, with out security and without the knowledge of the directors, a sum exceeding $1, 000 GOO. He was released on $10.0OOOOO bail and his examination was set for February 21.
 Cashier Henry c. Andrews through whom Andrews is said to have secured the money by means of overdrafts and certified checks, is seriously i'll at his home with nervous prostration. In addi- tion to a total indebtedness to the City Savings Bank of $1,15SOOO to secure which MT. Andrews has signed over to that in- stitution, all his real estate holdings and stocks, bonds and other securities, which it is estimated will total about $1,O0O000, four local banks and a trust company hold his checks. certified to by Cashier Andrews. to the amount of s662,O
 A considerable number of these checks are protected by securities deposited with them by Mr. Andrews.
 As soon as Commissioner Maltze took charge of the institution he immediately began an examination of its books. It was found that Cashier Andrews had per mitted F. c. Andrews to overdraw his account S9l4O0O. Other liabilities brought F. c. Andrews total indebtedness to the bank ap to S1,15S,O 900. In addition to this, Cashier Andrews had certified to checks for F. C. Andrews which he had deposited in other banks to the amount of $66200O.
 Banks Condition.
 At,the close of his examination Con- missioner Matze tonight issued the fol- lowing statement of the banks condition at the close of business February 8:
 "Resources-Total loans and discounts. bonds. mortgages and securities, S2.363 093; overdrafts, s913,S52; real estate s10,- 8e9; cash in banks, $2SS 697; other assets, s1s922.
 "Labilities-Stock surplus and undi- vided profits s225.212; deposits, 8, 37O. 251.'
 The examination showed that the record of r. c. Andrews transactions was not kept in the regular way, but in a memo randum book. The first record of a trans action between Cashier Andrews and F. C. Andrews is January II, but the ex- aminers estimate that the transactions have been going on for about six weeks. President F. c. Pingree explained the manner in which the certified checks were obtained as follows:
 A c. Andrews would draw a check for the amount he wanted and have it certified to by the cashier, Henry C. An drews. He would present this certified -6.,, la doing business and ask him to hold it out for that day, as the bank was not in funds to meet it. Perhaps he would thus hold it out for two 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 money he would in person pay the certified check and tear it up. This was done time and again
 Directors Make Statement.
 The directors issued the following state ment in regard to the suspension
 The directors of the City Savings Bank have issued the following statement:
 In justice to ourselves, our depositors and stockholders, the undersigned direc- tors of the City Savings Bank make the following statement:
 Early on Saturday morning we learn cd for the first time that Henry c. An drews, cashier of the bank, had allowed Frank c. Andrews to overdraw his ac- count in the sum of $900,O00 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 security we could Mr. Frank C. Andrews has turned over to the bank a large amount of securities from which we hope to pay our deposit tors in bank. The banking commissioner has deemed it the wisest policy to close the bank for the present. Outside of the Frank c. Andrews indebtedness and checks, the bank was never in better condition.
 (Signed)