The Savannah morning news., 1902-02-11
OVER ONE MILLION
DETROIT BANK HEAVILY HIT BY
VICE PRESIDENT,
ANDREWS RECKLESS GAME.
HAS ALSO S6G2,0Oo OUT IN CERTI-
FLED CHECKS.

With the Aid of Cashier Henry &.
Andrews He Secured Money and
Certified Checks mt wili-IIas
Made Over About S1,OOO.O0O of
Property to Secure the Bank,
HOwever-DefauItin OmciaI Was
"a CommissiOner of Police and Was
Arrested by Two of His Detec-
ttyes.
Detroit, Mich, Feb 1.--Vice President
Frank G. Andrews of the City Savings
Bank, which has been in the hands of
State Banking Commissioner George
l.. Maltz since this morning, was ar
rested this evening and arraigned at
$3.50 tonight on the charge of "wilful-
ly fraudulently and knowingly" secur-
ing from the bank without security and
without the knowledge of the other di-
rectors, sum exceeding $1,00000O. He
was released on $4,000 BAH and his ex-
animation was set for Feb. 81.
Cashier Henry c. Andrews, through
whom f. C. Andrews Is said
to have secured the money by
checks is seriously Ill at his home with
nervous prostration. In addition to a
total Indebtedness to the City Savings
Bank of $1.15S 900. to secure which Mr..
Andrews has signed over to that insti
tuition all his real estate holdings and
stocks, bonds and other securities,
which, it is estimated, will total about
81, 900 000 four local banks and trust
company hold his checks, certified to
by Cashier Andrews, to the amount of
$662, 900, A considerable number of
these checks are protected by securi-
ties deposited with them by Mr.. An
drews.
AS soon as Commissioner Maltz took
| charge of the institution he began an
examination OF the books. 1t was
| found that Cashier Andrews had per-
mitted f. c. Andrews to overdraw his
accounts $s14,OOO other liabilities
| brought F. C. Andrews total indebt-
edness to the bank up to $1,l5S,o00. In
! addition to this are the certified checks
to the amount of S662, 600. At the close
i of his examination Commissioners
1 Maltz to- night issued the following
statement of the banks condition at
the close of business Feb. s:
Resources-Total loans and dis
counts, bonds, mortgages and securi-
ties, $2363, ,09S drafts, $685. 1852;
real estate, $10,S99; cash In banks, $685.
| 697; other assets $fS,922.
| Liablities-Stock, surplus and undf-
vided profits, $225,21 deposits, $780,
Isl.
The examination showed that the
record of r. c. Andrews transactions
we're not kept in the regular way, but
in a memorandum book.
How the scheme Was Worked.
President f. C. Pingree explained the
manner in which the certified checks
were obtained as follows:
! "F C. Andrews would draw a check
| for the amount he wanted and have Ii
certified by the cashier, Henry r.
| Andrews. He would present this certi-
| fed check to the person he was doing
business with and ask them to hold 1t
out for that day, as the bank was not
In funds to meet 1t. Perhaps he would
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 ii out. There
would be only a 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"
The City Bank was the depository
for the funds of the county auditors,
| their balance there being more than
$3.50 900, and F. c. Andrews was ar
| rested this afternoon on a complaint
sworn out by Auditor Christian after
| a long conference between the auditors
and Prosecutor Hunt The warrant
was served on Andrews, who is COM
missioner of police, by two of his de-
tectives. The City Savings Bank was
also the depository for the Board of
| Education which had a total of $467, :,
| 600 on deposit Other local banks will
| temporarily advance funds to the
! board Of education for salaries and
running expenses.
Was Criminal. Say Bankers.
At a meeting of the Clearing House
| Association this afternoon the follow
| ing statement on the suspension was
| issued:
"The disaster which has to-day be-
| fallen the City Savings Bank is the re-
suit Of criminal irregularities confined
entirely to that institution, and caused
| by the rash speculation of its vice pres
| ident who controlled the management
and betrayed his trust. The bank has
been expelled from the association. The
officers of this association desire TO
state to the public that there is no
need OF apprehension regarding any
other bank in the city. The present
condition of the banks, as shown by
the weekly statements furnished to the
| clearing house, show an unusually
strong showing in reserve and cash re-
sources, and the fair name and good
reputation OF the banks OF Detroit will
not suffer by reason Of this trouble"
There was nothing like a panic at
any OF the other banks In the city. and
comparatively few deposits We're with
drawn as result OF the excitement.
| At the Gratiot avenue branch OF the
| city Savings Bank, which drew It's de-
posits largely from the laboring peo-
| pie, there were many pathetic scenes
as the depositors learned that the bank
had suspended.
Officers were IN the vicinity TO queIl
any disorder but their services were
not necessary at any time.
He speeuIated IN Copper.
Unfortunate speculations. especially
| heavy purchases 81 Amalgamated Cop
per stock. are believed 20 be RESPONSE
/ lie for Mr.. Andrews ruin President
1