The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-02-11
ANDREWS METHOD.
How a Bank Official Managed to
Rob His Own Bank.

ing commissioner George L. Maltz since
yesterday morning, has been arrested
and arraigned on the charge of t.wilfull,
fraudulently and knowingly" securing
from the bank without security ant
without the knowledge of the other di
rectors, a sum exceeding 81, 000, 060 Hs
was released on $4,000 bail, and his ex-
animation was set for February p
Cashier Henry C. Andrews through
whom F. c. Andrews is said to have Sc
cared the money by means of over
drafts and certified checks, is seriously
ill at his home with nervous prostration
In addition to a total Indebtedness to
the City Savings bank of $1.158, 900 tC
secure which Mr.. Andrews has signed
over to that institution all his rea
estate holdings and stocks, bonds an6
other securities, which it is estimated
will total about S1,000000, four loca
banks and a trust company hold his
checks, certified to by Cashier Andrews
to the amount of 1861, 900. A eonsidera-
bic number of these checks are pro-
tected by securities deposited with them
by Mr.. Andrews.
AS soon as Commissioner Maltz took
charge of the institution he began an
examination of it's books. 1t was found
that Cashier Andrews had permitted F.
c. Andrews to overdraw his account
$914,900. Other liabilities brought F. c.
Andrews total Indebtedness to the bank
Cashier Andrews had certified to checks
for F. C.. Andrews which he had de-
posted i'll banks to the amount of $685.
GOO. At the close of his examination
Comm issioner Maltz issued the follow
ing statement of the banks condition at
the close of business February 8:
ResOurceS-Tota1 loans and discounts,
bonds, mortgages and securities, 50, $685.
093; overdrafts, 1913, 1852; real estate,
$leS99; cash in banks, $2SS. 1897; other as
sets, $1S,922.
Lila bilities-Stock, surplus and undi-
v:ded profits, $225,212; deposits, $780,
The examination showed that the rec
ord of +. c. Andrews transactions was
not Kept in the regular way, but in a
memorandum book. The first record of
and L. G. Andrews is January IL but
the examiners estimate that the trans
actions have been going on for about
six weeks. President F. C. Pingree ex-
planned the manner in which the certf-
fled checks We're obtained as follows:
IF. c. Andrews would draw a check
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 1t
out for that day, as the bank was not
in funds to meet it. Perhaps he would
keep it out for two or three days, and
eventually when there was money
enough in the bank to n eet it he would
go in the bank 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
tilted 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 sl5OO0O, and F. c. Andrews was
arrested on a complaint sworn out by
Auditor Christian, after long confer
ence between the auditors and Pros
ecutor Hunt The warrant was served
lice, by two of his detectives, in the
office of the Detroit Trust company,
where he had been in consultation with
officers of the banks holding his GER
was also the depository for the board
of education which had total of $467,-
coo on deposit Other local banks will
temporarily advance funds to the board
of education for salaries and running
expenses.
At a meeting of the clearing house
association the following statement on
the suspension was issued
1.-THE disaster which has befallen the
City Savings bank is the result of
irregularities confined entirely
to that institution and caused by the
rash Specula ton of it's vice president
who controlled and betrayed his trust
The bank has been expelled from the
association. The officers of this assoc
citation desire to state to the public
that there is no need of apprehension
The present condition of the banks, as
shown by the weekly statements fur
nshed the clearing house, reveals an
strong showing 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
There was nothing like panic At any
Of the other banks in this city and COM
paratively few deposits were Withdrawn
as result of the excitement. AT the
Gratiot avenue branch of the City Saw
ings bank, which drew it's deposits
largely from the laboring people, there
were many pathetic scenes as the de-
positors learned that the bank had sus-
pended. Policemen were in the vicinity
to quen any disorder. but their services
were not necessary at any time
Unfortunate speculation, especially
heavy purchases of AmalgamatedS cop
per stock. are believed to be responsi-
Die for Mr. Andrews ruin. President
F. c. Pingree. of the City Savings bank
says that Andrews told him that he lost
100000 in Amalgamated copper And
-ews has refused to make any statement
as yet, either in regard to his failure or
he banks suspension Mr.. Andrews has
been heavily interested in suburban
electric roads and at present is large
in the road being construct
I'd from Holland to Grand Rapids, in
his state. Andrews resigned as police |
Although no warrant has yet been is |
sued TOT f1enry X ANDREWS, an Olilcer
s stationed at his home as guard H |
r. Andrews is in a serious condition. In |
addition to the nervous proStration, he |
las had a severe attack of heart trou |
Die.
Much sympathy is expressed for Cash |
er Andrews, who, it is understood be- |
anne involved in his trouble through |
friendship for f. c. Andrews and did |
Tot profit by the transaction.
The 1861, 900 worth of certified checks |
ire held by the following institutions:
Preston National bank 100000; First |
National bank 1912, 600; State Savings |
1ank $50, 600; Detroit National bank /
100 OGO; Detroit Trust company $4,000. |