The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1902-02-14
A BIG BANK SwINDLE.
A Detroit Savings Bank Wrecked by
It's Vice President.

Detroit, Mich, February 10.-Vice
President Frank Q. Andrews. of the
City savings bank which has been in
the hands of state banking commission
er George l.. Maltz since this morning,
was arrested late this afternoon and ar
raigned at $50 o'clock tonight on the
charge Of "wilfully. fraudulently and
knowingly" securing from the bank
without security and without the
knowledge of the directors a sum ex-
ceeding 81, 900, 900. He was released on
$40, 900 bail and his examination was set
for February 21st.
Cashier Henry G. Andrews. through
whom F. c.. Andrews is said to have
secured the one By means of over
drafts and certified checks, is seriously
ill at his home with aervous prostra-
ton.
In addition to a total Indebtedness to
the City savings bank of 81, 15S. 900. tC
secure which Mr.. Andrews has signed
over to that institution all his real es-
tate holdings and stocks, bonds and
other securities. which. it is estimated.
will total about 1000, 900. four banks
and a trust company hold his checks.
certified to by Cashier Andrews to the
amount of 1852. 900. A considerah'"
number of these checks are protected
by securities deposited with them by
Mr.. Andrews.
AS soon as Commissioner Maltz took
charge of the institution he began an
examination of its books. 1t was found
that Cashier Andrews permitted F. c.
andrews to oveidraw his account S914,-
900. Other liabilities brought F. C. An
| drews' total indebtedness to the banl
uD to Bliss. 900. In addition to this are
-IA nArtiGnI nhnnG fn tho nr0nTn6 of
$685., 900. At the close of his examina-
ton Commissioner Maltz tonight issued
the following statement of the hanks
condition at the close of business Feb
ruary Sth.
Resources-total loans and discounts,
bonds, mortgages and securities. 81
| 363. O93: overdrafts s913. $50; real estate
$40. S99: cash in banks S2SS, 697; other as
sets SIS. 500.
Liabilities-Stock. surplus and undi-
] vided profits S225. 212; deposits 1910. Isl.
The examination showed that the re-
cord OF F. c.. Andrews transactions was
not kept in the regular way. but in a
memorandum book. President F. g.
Pingree explained the in which
the certified check was obtained as fol-
lows:
F. c. Andrews would draw a check
| for the amount he wanted and have II
certified by the cashier, Henry r. An
drews. He would present this testified
check to the person he was doing bust
ness with and ask them to hold it 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 in and take it out. There
would 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 GER
titled check and tear it up. This was
done time and again"
The City savings hank was the de.
pository for the funds of the count,
. auditors, their balance there being mor'
than s150.000 and F. G.. Andrews was a.
rested this afternoon On a complain
sworn out by auditor Christian. aftel
a long conference between the auditor,
and prosecutor Hunt. The warran
was served on Andrews. who is com
missioner of police. b. two Of his de
tectives.
The City savings bank was also tn