The Dickinson press., 1902-02-15
J TOOK z O. Z: OVER 1 3 R 81, 900, 900.
VICE PRESIDENT or a DETROIT.
SAVINGS sANk is UNDER
ARREST.
With the connivanee Of the cashle,
/ He Relieved the lnsstitution Of 81,
1855, 600 BY Means Of overdrafts ano
Certified Checks Other Concern.
Hold His Paper to the Amount Of
sss2, ,oco.
the Connivance of the cashIeI

Detroit, Feb. 11.-Vice President
Frank G.. Andrews of the City Sav.
fngs bank, which has been in the
hands Of State Banking Commissioners
George i. 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
q sum exceeding $1,000,0O0. He was
released on $4,000 bail and his ex.
animation was set for Feb. 21. 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 q 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,O00. four local
banks and trust company hold his
checks. certified to by Cashier An!
drews. to the amount of s662,O00. 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.
c. Andrews transactions was not kept
In the regular way, but in a mem.
orandum book. The first record OF a
transaction between Cashier Andrews
and F. c. Andrews Is Jan. II, but the
examiner estimates that the transac
tfons have been going on for about
six weeks. President F. C. Pingree
explained the manner in which the
certified checks were obtained as fol
lows:
How the Scheme Was Worked.
F. c. 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 for
two or three days and eventually
when there was money enough in the
bank to meet the check he would go
III duU lhh0 IL OUT. luero WOulQ- De
only 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 Savings bank was the de.
pository for the funds of the county
auditors, their balance there being
more than $150,000, and F. C. Andrews
was arrested on a complaint sworn
out by Auditor Christian. The war.
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 total OF
s467 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 not
affected by the disaster and that the
city Savings bank is expelled from the
association. !.
l., Unfortunate speculations, especially
heavy purchases of Amalgamated
Copper stock, are believed to be re.
sponsible for Andrews ruin.