Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1902-02-14
rs FORCED TO CLOSE.
The City Savings Bank, of Detroit,
Is in Trouble.
Vice President Andrews Is Arrested
for FrnuduicntIy Making Use
of Funds to the Amount
of s1,15S,OOO,


Detroit, Mich, Feb. 1t.-Vice Presi-
dent Frank c. Andrews, of the City
savings bank, which has been in the
hands of State Banking Commissioner
George L. Maltz since Monday morn
ing, was arrested late Monday after
noon and arraigned at $3.50 p. m. on
the charge of "willfully, fraudulently
and knowingly" securing from the
bank, without security and without
the knowledge of the other directors,
a sum exceeding $1,000,000. He was re-
leased on $4,000 bail and his examina-
ton was set for February 21. Cashier
Henry C. Andrews, through whom f.
c. Andrews is said to have secured the
money by means of overdrafts and GER
titled checks, is seriously i'll at his
home with nervous prostration.
Condition of the Bank.
AS soon as Commissioner MaltZ took
charge of the institution he immedi-
ately began an examination of its
books. 1t was found that Cashier An
drews had permitted F. C. Andrews to
overdraw his account $914,000. Other
liabilities brought f. C. Andrews total
Indebtedness to the bank up to $1,15s,-
600. In addition to this, Cashier An
drews had certified to checks for f.
C. Andrews, which he had deposited
in other banks, to the amount of $685.
900. At the close of his examination
Commissioner Maltz issued the follow
ing statement of the banks condition
at the close of business February 8:
-
bonds, mortgages and securities, $780,
O92; overdrafts. s913,S52: real estate. s1O,-
500: cash in banks, S.697; other assets
s1S922.
Liabllities-Stock. surplus and undi-
vided profits, s225,2l2: deposits, $3.50, ,25i.
Cause OF the Trouble.
The examination showed that the
record of f. C. Andrews transactions
was not kept in the regular way, but in
a memorandum book. The first record
of transaction between Cashier An
drews and +. C. Andrews is January IL,
but the examiners estimate that the
transactions have been going on for
about six weeks. President F. C. Pin
gree explained the manner in which the
certified checks was obtained as fol
lows:
IF. C. Andrews would draw check
for the amount he wanted and have II
certified by the cashier, Henry r. An
drews. He would present this certified
check to the person with whom he was
doing business and ask him to hold II
out for that day, as the bank was not in
funds to meet 1t. 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 go in and take 1t out There
4 would be only n slip of paper in the
drawer, and the withdrawal would be
put down as cash item. With this
money he would in person pay the Ger.
titled check and tear 1t up. This was
done time and again"
The Arrest.
: The City savings bank was the de-
pository for the funds of the county
auditors, their balance there being
more than S15O,O0O, and f. C. Andrews
was arrested on a complaint sworn out
: by Auditor Christian, after long con
ference between the auditors anC
: Prosecutor Hunt. The warrant wa!
served on Andrews, who is commits
sioner of police, by two of his de
tectives, in the office of the Detroi
: Trust company, where he had been il
holding his certified checks. The Cit,
savings bank was also the depositor,
=, for the board of education, which hat
a total of S467 900 on deposit. Othe
, local banks will temporarily advance
l funds to the board of education 70
: salaries and running expenses.
: Other Banks All Right.
At a meeting of the Clearing Hous
association the following statement o.
y the suspension was issued:
: 1.-The disaster which has to-day befalle
e the City savings bank is the result q
criminal Irregularities confined entirel
TO that Institution, and caused by tn
rash speculation of its vice presiden
who controlled the management and be
trayed his trust. The bank has been eS
Z PEELED from the association. The off
GERS of this association desire to stat
to the public that there is no need
apprehension regarding any other ban
in the city. The present condition of tn
banks, as shown by the weekly STATE
q ments furnished to the clearing hous
: reveals an unusually strong showing
:, reserve and cash resources. and the IA
u name and good reputation of the banl
n of Detroit will not suffer by reason
h this trouble.
s Due to Unfortunate Speculation.
d Unfortunate speculations, especis
t " heavy purchases of Amalgamate
= copper stock, are believed to be r,
i sponsible for Mr.. Andrews ruin. Pre-
e ident +. c. Pingree, of the City saving
a bank, says that Andrews told him tha
= he lost 100000 in Amalgamated COZ
q per. Andrews has refused to make an
statement as yet, either in regard t
his failure or the banks suspension
Mr.. Andrews has been heavily interes
: ed in suburban electric roads and {
u present is a large stockholder in I'll
10 road being constructed from Hollar
!, to Grand Rapids in this state. Monda
u night Andrews resigned as police con
p missioner and Mayor Maybury imm
&c diately appointed George Fowle as h
successor.
Paid Out a big sum.
n Dn II MnnIax,