The Montgomery advertiser., 1902-02-11
RESOURCES.


 mortgages ard securities ...... .$2, ,363 093 yOverdrafts ....................... 9l3, ,s5e Real estate . ....................... 10s99 Cash Tn bank ........................ 2ss6sf Other assets .. ...................... 1892
 LIABILITIES.
 Stock surplus and undivided
 profits .. .......................... 225,2l2 Deposits, ........s.................. 3,3iV,Zol
 The examination showed that the record of F. c. Andrews s transactions was not kept in the regular way, but in a memorandum book. The first record of a transaction between Cashier Andrews and F. C. Andrews is January Il, tut the examiners estimate that the transac- tons have been going on for about six weeks. President F. C. Pingree. .eX- plained the manner in which the certified checks were obtained as follows:
 IF c. Andrews would draw q check for the amount he wanted and have it certified to by the cashier. Henry C. An drews. He would present this certified check to the person with whom he was doing business and ask him to hold 1t out for that day, as the bank was not In funds to meet it. Perhaps he would thus 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 ana Idhe IL Oul. Wpuiu 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 directors issued the following state ment in regard to the suspension:
 Tn justice to ouselves. our depositors and stockholders, the undersigned direc- tors of the City Saving Bank make the following statement:
 Early on Saturday morning We learn ed for the first time that Henry C. Andrews, cashier of the bank. had allow ed Frank c. Andrews to overdraw his account in the sum of 900. 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. Mir Frank C. Andrews has turned over to the bank a large amount of securities from which we hope to pay our depositors in bank. The banking commissioner has deemed 1t the wsest policy to close the bank for the present. Outside of the Frank c. Andrews 'indebtednes s and checks. the bank was never in q better condition.
 "F. c. Pingree.
 Ward L. Andrus.
 Homer C. McGraw.
 Joseph Schultz" The City Savings Bank was the depos- itory for the funds of the County Audi | tors. their balance there being more than $50 GOO and F. C. Andrews was arrested l this afternoon on q complaint sworn out by Auditor Christian after a long confer | ence between the auditors and Prosecu- | tor Hunt The warrant was served on Andrews, who is commissioner of police. | by two of his detectives, in the office of | the Detroit Trust Company, where he had been in consultation with officers of the banks holding his certified checks. The l City Savings Bank was al~o the depos- 1 itory for the Board of Education, which l had total of s467, GOO on deposit. Other 1 local banks will temporarily advance funds to the Board of Education for sala- ries and running expenses. At q meeting of the Clt airing House As | sociation this afternoon. the following ! statement on the suspen ion was issued "The disaster which has tc'ey befallen | the City Savings Bank is the result of criminal irregularities confined entirely | to that institution, and u-td by the | rash specul ton of it's Fice-President, | who controlled the management and be- | trayed his trust. The bank has been ex- pelled from the association. The officers | of this Association desire to state to the | public 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. fur | nished to the clearing house, reveals an | unusually strong showing in reserve and | cash resources. and the fair name and |