The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1902-02-13
OFFICER BLAMED
CITY SAVINGS BANK OF DETROIT
COMPELLED TO SUSPEND
BUSINESS.
VICE PRESIDENT The cause

Had Been Allowed to overdraw His
Account in the Sum of More Than
100000 and in Addition the Cashier
Had Certified His Checks for Over
$500, ooo-Institution Had Deposits
of Three Million Dollars.
Detroit, Mich, Feb. 1.-THE City
Savings bank did not open for bust
ness during the morning. At 9 o'clock
the following notice was posted on the
door:
"This bank is in the hands of George
L. Maltz, banking commissioner"
Asked the reason for the suspension
of the City Savings bank State Bank
ing Commissioner Maltz said to the
Associated Press:
Frank G.. Andrews, vice president
of the bank and commissioner OF po-
lice, is the reason. The bank had to-
tai deposits of over 100000 and An
drews had more than half of this
money out on certified checks and
overdrafts. There are 100000 out in
certified checks and $914,00O in over
drafts. Henry r. Andrews, cashier of
the bank, advanced this money to
Frank G. Andrews without the knowl-
edge of the directors. They are en-
tirely blameless in this matter. When
I learned of the banks condition l
closed it. I do not know" said he,
in answer to another question,
whether any steps will be taken by
the directors toward legal proceedings
against the Messrs. Andrews"
The officers of the bank, which was
organized ig 1889, are: President,
Frank &. Pingree; vice president,
Frank C. Andrews; cashier, H. R..
Andrews; assistant cashier, Joseph A.
Schultz.
The capital stock of the bank is
$150000. According to the statement
of the banks condition, printed Dec.
II, the bank had total deposits OF 3d.
O62, 4O5.30.
Banking Commissioner Maltz said
it did not look as though F. G. An
drews had much to cover the amount
he has drawn from the bank.
The county auditors have in the
City Savings bank one fund of $685.
043 and sinking fund balance of $42,-
TIA. County Clerk McGregor has $22,-
900 in the bank as register in chan
Gerry. The entire fund of the board of
education money is in the City Saw
ings bank, Cashier H. R. Andrews of
the bank being treasurer of the board.
It is estimated that this is about $467,-
900. The public library fund is also
in the City Savings bank.
Frank c. Andrews has filed a quit
claim deed to the City Savings bank
on several pieces of valuable property.
Statement by the Directors.
Later in the day the directors of the
City Savings bank issued the follow
ing statement:
"In justice to ourselves, our depos-
itors and stockholders the directors of
the City Savings bank make the fol-
lowing statement!
early on Saturday morning we
learned for the first time that Henry
R. Andrews, cashier of the bank, had
allowed Frank G. Andrews to over
draw his account in the sum of over
$90O,O00 and had also, without consid-
Grafton, certified said Frank G. An
drews checks for over 100000, all
of which checks swere outstand-
ing. The bank was Immediately
put into the hands of the banking
commissioner and we set about to get
all the securities we could. Mr.. Frank
C. Andrews has turned over to the
bank large amount of securities from
which we hope to pay our depositors
in full
'"The banking commissioner has
deemed it the wisest policy to close
the bank for the present for the best
interest of all depositors. Outside of
Frank C. Andrews Indebtedness and
checks the bank was never in better
condition"
Bank Commissioner Maltz says he
will appoint one of the local trust
company trustee of the bank. Vice
President Andrews has signed over
to the City Savings bank all of his
real estate holdings and at 1870
o'clock was in conference with the
Detroit Trust company, stockholders
of the City Savings bank, and other
bankers. It is expected he will issue
statement later. Walking UP and
down the hallway outside the trust
company's office, he said:
: Young men can point to me as an
example of the result of speculation
mania"
None of the other banks in the city
ORC affactod Inv tta Suspansion Of the
City Savings bank. George H. Rus.
sell, chairman of the clearinghouse
committee and president of the State
Savings bank, said at noon:
"The general banking situation here
has never been better. There will be
no further failures"
Small depositors in some of the
other banks are withdrawing their ac-
counts but there is nothing like run
on any occasion.