Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1902-02-14
TOOK OVER 81, 900, 900.
VICE PRESIDENT OF A DETROIT
= SAVINGS BANK IS UNDER
= ARREST.


$4,000 by Means Of overdrafts and
Certified ,checks-other Concerns
Hold His Paper to the Amount Of
see2,ooo.
Detroit, Feb. 11-Vice President
Frank G. Andrews of the City Saw
ings bank, which has been in the
hands of State Banking Commissioner
George J.. Maltz since morning, has
been arrested and arraigned on the
charge of "willfully, fraudulently and
knowingly" securing from the bank,
without security and without the
knowledge of the other directors, of
sum exceeding $l,000,000. He was
released on $4,000 bail and his ex-
animation was set for Feb. 81. Cash
Ter Henry G. Andrews, through whom
F. c. Andrews is said to have secured
the money by means of overdrafts
and certified checks, is seriously ill
at his home with nervous prostration.
In addition to total Indebtedness to
the City Savings bank of $1,158, 900, to
secure which Mr.. Andrews has signed
over to that institution all his real
estate holdings and stocks, bonds and
other securities, which it is estimated
will total about $1,000,000. four local
banks and a trust company hold his
checks, certified to by Cashier An
drews, to the amount of 100000. A
considerable number of these checks
are protected by securities deposited
with them by Mr.. Andrews.
The examination by Commissioner
Maltz showed that the record of F.
! G. Andrews transactions was not kept
in the regular way, but in mem
orandum book. The first record of a
transaction between Cashier Andrews
and F. G. Andrews is Jan. II, but the
examiner estimates that the transac.
tons have been going on for about
six weeks. President F. G. Pingree
explained the manner in which the
certified checks we're obtained as fol-
lows:
How the Scheme Was Worked.
F. G. Andrews would draw a check
| for the amount he wanted and have it
certified BY the cashier, Henry C. An.
| drews. He would present this certi
fed check to the person with whom
he was doing business and ask him
to hold it out for that day as the bank
was not in funds to meet it. Per
| haps he would thus hold it out fol
two or three days and eventually
when there was money enough in the
bank to meet the check he would &C
in and take it out. There would be
only 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 City Savings bank was the de
pository for the funds of the county
auditors, their balance there being
more than $3.50, 900, and F. G. Andrews
was arrested on a complaint sworn
rant was served on Andrews, who is
commissioner of police, by two of his
detectives. The City Savings bank
was also the depository for the board
of education, which had a total Of
$467, 900 on deposit. Other local banks
will temporarily advance funds to the
board of education for salaries and
running expenses.
! The clearing house association has
issued statement that the condition
of the other banks in the city is moi
affected by the disaster and that the
city Savings bank is expelled from the
association.
Unfortunate speculations, especially
heavy purchases of Amalgamatel
Copper stock, are believed to be re
spOnsible for Andrews ruin.