New-York tribune., 1902-02-11
OFFICIAL WRECKS BANK.
SpECIL.tTION BRINGS ABOUT
GETtJ. CRASH IN DETROIT.
,-lcF PRESIDENT +. G. ANDREWS AR
RESTED HAS DRAWN MORE THAN
THIRD OF 100000 OF SAY
INGS DEPOSITS
INGS DEPOSITS.

Detroit. Feb 10-vice-President Frank c.
Andrews Of the City Savings Bank which has
been in the hands of State Banking Commits
siorer George L. Maltz since this morning was
arrested late this afternoon and arraigned at
$50 o'clock tonight, the charge of will
fully fraudulentiy and knowingly" securing
from the bank. without security and without
the knowledge of the other directors a sum ex-
cseding s.. 100000 He was released on S1OOOO
hail and his examination was set for February
n The cashier, Henry c. Andrews through
whom T. c Andrews is said TO have secured
the money by means of overdrafts and certified
checks Is seriously i'll at his home with nor
yous prostration.
IN addition 10 A total indebtedness 70 tho C,;+,-
savings Bank of 81, lbs, 600 to secure which NJ
Andrews has signed over to the institution oil
his real estate holdings and stocks bonds and
other securities, which, it is estimated will
total about Sl.0OOOOO. four local banks and =
,rust company hold his checks. certified ~ b.,
tbe cashier. Andrews to the amount of S662 :.
nn0 A considerable number of these checks are
protected by securities deposited with them bv
Mr.. Andrews.
As soon as Commissioner Maltz took charge Of
the institution he Immediately began an exam
ina+ion Of its books. 1t was found that tho
cashier had permitted F. c. Andrews to over
draw his account $4,000 Other liabilities
brought F. c Andrews's total indebtedness 70
the bank up 10 S1.15S.o 900. In addition 10 this
the cashier had certified to checks for F. &
Andrews, which he had deposited in other banks
10 the amount of 5000 At the close of his
examination Commissioner Maltz tonight issued
the follow statement of the banks condition at
the close Of business on February s:
Rssouroes.TGtal ang loans and assognts bonds
0T2Tr u y.
banks. S2SS.b9I; other asserts, SIS, ,922.
Liabillties-Stock. surplus and undivided
profits, S225.2l2; deposits, S3,3TO25I
RECORD OF THE TRANSACTIONS.
The examination showed that the record Of
F. c. Andrews's transactions was not kent in
The regular way, but in memorandum book
The first record of transaction between the
cashier and F. c. Andrews is January II, but
the examiners estimate that the transactions
have been going on for about six weeks Presi-
dent 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 it certified by the
cashier, Henry r. Andrews He would present
this certified check to the persons he was doing
business with, and ask them to hold it out for
the day. as the bank was not in funds TO meet IT.
Perhaps he would thus hold 1t out for two or
three days, and eventually. when there was
money enough in the bank to meet the check he
would 90 in and take It out There would he
enly sip of paper in the drawer. and the with
dTaVal 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"
Unfortunate speculations. especially heavy
purchases Of Amalgamated Copper stock are
believed 70 be responsible for Mr. Andrews's
Tun. r. c Pingree, president of the City
Swings Bank, says that Andrews told him that
he lost 100000 in Amalgamated Copper.
CLEARING HOUSE EXPELs BANK
The City Savings Bank was the depository for
The funds of the county auditors, their balance
there being more than $4,000. and F. c. An
drews arrested this afternoon on COM
plant sworn out by Auditor Christian. after
long conference between the auditors and Prose
cutor Hunt. The warrant was served on An
drews, who Is Commissioner of Police. by two of
his detectives. in the Office Of the Detroit Trust
Company. where hc had been in consultation
with officers Of the banks holding his certified
checks. The City Savings Bank was also the
depository for the Board Of Education, which
had total OF S467.000 on deposit. Other local
hanks viii temporarily advance funds to the
Board of Education for salaries and running
expenses
At meeting Of the Clearing House Assoca-
ton, this afternoon. the following statement On
the suspension WAS issued:
The disaster which has to-day befallen the
city Savings Bank is the result Of criminal ir-
FAguarties confined entirely to that institution
and caused by the rash speculation of its vice
president, who controlled the manage cement. and
BETRAYED his trust The bank has been eX-
rslled from the association The officers Of this
association desire 70 state to The public that
there is no need Of apprehension regarding any
ether bank in the city.
James K Andrews % the firm of Warren An
drews & Co when seen last night At his home.
No . West Twenty -ffth-st. said:
Frank G. Andrews was a member Of our firm
until the FIRST If this month. when he retired
We in no way related to one another; the
game IS merely a coincidence. His reasons for
having the firm and our business relations l
40 not feel At liberty TO discuss now"
F. Schenk and James V. Lott president
and cashier respectively OF the Mercantile Ma
t9nal Bank Of New York. said yesterday after
noon thar the failure Of the City Savings Bank
~ Detroit was a complete surprise TO them.
me Mercantile National Bank had been Corre- !
spondent for the Detroit institution since 1894 |
ana had always had the utmost confidence in |
ne prudence and integrity of the suspended |
oaak. These men stated that the City Savings |
bank owed nothing to the Mercantile National |
rank and had a large balance 10 its credit. Mr.. |
t.olt said that the former president Of the City
eaflngs Bank, George r. Angel, died about a |
sear ago, and. although Mr. Lott would not say |
20 directly. he intimated that the death Of the |
President might have had something to do with |
me present suspension.
II was said at the Fourth National Bank that |
used 70 have the City Savings Bank OF De- |
.ot as n correspondent but that the arrange
"ent was terminated some time ago
uRCUL4R TO u. S. r. HOLDERS.