The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-02-11

Other local banks will temporarily advance
funds to the board of education for salaries
and running expenses.
CLEARING HOUSE STATEMENT.
At a meeting OF the Clearing House AS
sOciatiOn this afternoon the following
statement on the suspension was issued:
The disaster which has to-day befallen
the City Savings Bank is the result OF
criminal Irregularities confined entirely 10
that institution and caused by the rash
speculation of its vice president, who con-
trolled the management and betrayed his
trust. The bank has been expelled from the
association. The officers of this association
desire TO state TO the public that there is
no need of apprehension regarding any
other bank in the city The present con-
ditiOn of the banks as shown by the week
" statements furnished to the clearing
house. reveals an unusually strong show
ing in reserve and cash resources and the
fair name and the good reputation of the
banks of Detroit will not suffer by reason
of this trouble"
This statement was signed by NJ. W.
O'Brien, chairman, and f. G. Bowman, sec
retary
There nothing like panic at any of
the other banks i'm the city and compara-
lively few deposits were withdrawn as a
result Of the excitement. At the Gratiot-
avenue branch Of the City Savings Bank.
which drew it's deposits largely from the
labOring people, there were many pathetic
scenes as the depositors learned that the
bank had suspended. Officers were in the
vicinity TO quell any disorder, but their
services were not necessary at any time
The Journal. Of which F. c. Andrews is
one of the stockholders this afternoon said
Of the suspension: The whole trouble has
been caused by the plunging OF Frank c..
Andrews In the stock market. Three
months ago Mr.. Andrews was a millionaire.
This is speaking without exaggeration. He
began plungina in the stock market. His
phenomenal luck had deserted him and in a
short time he became hopelessly entangled.
Last Tuesday afternoon Mr. Andrews did
a most extraordinary and inexplicable
thing. Using his authority vice pres
ident. he secured certified checks from the
City Savings Bank to the total amount of
s662, 900 and used them to pay obligations at
various other banks. carrying off the gilt
edged securities deposited with these banks
as collateral to his notes. Next day it came
out that these certified checks were far be-
yond the banks ability to pay, as besides
them Mr. Andrews had overdrawn his ac-
count 100000. Hurried consultations fol-
lowed with influential bankers along the
street Meetings were held from Friday
afterpoon and evening, all day Saturday.
all day Sunday and Sunday night and this
morning up to and after the bank closed"
LOST 100000 IN COPPER.
Heavy purchases of Amalgamated Copper
stock are believed to be responsible for Mr..
Andrews's ruin. President +. c. Pingree,
of the City Savings Bank, says that An
drews told him that he lost 200 in Anal
gamated Copper. Andrews has refused to
make any statement yet, either in regard
to hts failure or the banks suspension. Mr..
Andrews has been heavily interested i'm
suburban electric roads and at present is a
large stockhoder in the road being con-
structed from Holland to Grand Rapids, in
this State. Tonight Andrews resigned as
police commissioner and Mayor Maybury
Immediately appointed George Fowle as his
successor.
Although no warrant has yet been issued
for Henry r. Andrews, an officer is sta
toned at his home a guard. II. r. An
drews IS in a serious condition. In addi-
tion to the nervous prostration, he has had
a severe attack of heart trouble to-day. His
physician says: II think he stands fair
chance of recovery and that if nothing ex-
citing happens. the heart trouble will pass
away in two or three days.
Much sympathy is expressed for Cashier
Andrews, who, it is understood, became in
volved in the alleged fraudulent transac-
tions through friendship for +. c. Andrews
and did not profit by them himself.
The $662, 900 worth of certified checks are
held by the following institutions: Preston
National Bank, 100000; First National
Bank, $272.O0O; State Savings Bank. $6O.OOO
Detroit National Bank, Sl6O 600; Detroit
Trust Company, $4,000. II is not known
just how many of these checks are pro-
tected by securities, but il is said to be
considerable proportion of the total amount
Had the likelihood of the banks failure
been known sooner. the disaster might have
been averted. the directors of the other
banks would have kept the doors of the
City Savings open IL possible. When it did
become known the bank IN such bad
shape that other banks would not take the
risk of advancing enough money to tide
the City bank over. Members of the De-
troit clearing house have decide to take
care of checks which had been issued by
banks throughout the State which had been
correspondents of the City bank.