Gilpin observer., 1902-02-13
IL TOOK A MILLION
elNk or rIcEa sETRAYs TRUST.
ce President Andrews Of Detroit
&savings Bank Overdraws His Ae-.
~ count With connivanee Of
ft the Cashier

Detroit, Feb. 11.-Vicc 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 arrested
late this afternoon, and arraigned to-
night on the charge Of "wilfully, fraud
ulently and knowingly" securing from
the bank, without security and with
out the knowledge of the other direc-
tors, a sum exceeding $1,OOO,0OO. He
was released on $4,000 ball. and his
examination was set for February 21st.
Cashier Henry G. Andrews, through
whom II. q. Andrews is said to have
secured the money by means of over
drafts and certified checks, is seriously
Ill at his home, with nervous prostra
tion.
In addition to total Indebtedness
to the City Savings bank of $1,15SO 900,
to secure which +. G. Andrews has
signed over to that institution all his
real estate holdings and stocks bonds
Elnd other securities, which, 1t Is estl-
mated, will total about $1,0O0,000, four
local banks and Il trust company hold
his checks, certified to by Cashier An
drews, to the amount of $662,O0O. A
considerable number of these checks
are protected by securities deposited
with them by Mr.. Andrews.
/ At the close of his examination Com
Npissioner Malt tonight issued the
'pllowing statement of the banks con-
ition at the close of business Febru-
ry Sth:
Resources-Total loans and discounts,
bonds, mortgages and securities, $2,-
1868 ,093; overdrafts, S912S52; real es-
tate, $1O,SS9; cash in bank, $2SS,69I;
other assets, S1S,O22.
Liabilities-Stock surplus and undi-
vided profits, $225,212; deposits, 3d.
370,251.
The examination showed that the
record of II. G. Andrews transactions
was not kept in the regular way, but
in a memorandum book. The first rec
ord of n transaction between Cashier
Andrews and Il. O. Andrews Is jan
uary IL, but the examiners estimate
that the transactions have been going
on for about six weeks. PresidentgF.
G. Piagree explained the manner in
which the certified checks We're obtain
ed as follows:
"F. C. Andrews would draw check
for the amount he wanted, and have
it certified by the cashier, Henry c.
Andrews. He would present this certi
fled 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 ii. 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 in and take 1t
out. There would be only the slip of
paper in the drawer and the with
drawal would be put down as n cash
Penn. With this money he would in
person pay the certified check and tear
II up. This was done time and time
again"
The City Savings bank was the de,
pository for the funds of the county
auditors. their balance there being
more than S15O.00O and +. G. Andrews
- as arrested this afternoon on COM
IA plant sworn out by Auditor Christian,
after a long conference between the
auditors and Prosecutor Hunt. The
warrant was served on Andrews, who
Is commissioner OF police. in the office
of the Detroit Trust Company. where
he had been in consultation with Off
GERS of the banks holding his certified
checks. The City Savings bank was
also the depository for the board OF
education. which had total of S46t,-
600 OH deposit. Other local banks will
temporarily advance funds to the
Vi AOi sdiaiiSc ahh
running expenses.
The other banks of the city are In
good condition and there Is no panic.
At the Gratiot Avenue branch OF the
City Savings bank, which drew Its de-
posits largely from the laboring peo
pie, there were many pathetic scenes
as the depositors learned that the BANK
had suspended. Policemen were In the
vicinity to quell any disorder. but their
services were not necessary at any
time.
1t Is expected that +. G. Andrews
will issue n statement later. While
Walking up and down the hallway out
. side the trust company's office to-day
he said:
Young men can point to me as an
example of the result Of speculation
mania"