The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-02-11
VICE PRESIDENT ANDREWS, OF
CITY SAVINGS BANK, IS
UNDER ARREST
STEALINGs GO OVER A MILLION
His brother Was Cashier of the In
stitution end Carried the Theft
Along by Means of Certi-
fed Checks.
MONEY LOST IN SPECULATION

DETROIT, Feb 10-Vice President
Frank c. Andrews, Of the City Savings
bank, which has been in the hands of
State Banking Commissioner George Il.
MaItz since this morning, was arrested
late today, and arraigued tonight on the
charge Of" wilfully, fraudulently ana
knowingly securing from the bank, with
out security and without the knowledge
of the other directors, of a sum exceeding
81 900. He was released on $4,000 bail
and his examination was set for Feb.
81
Cashier Henry c. Andrews, through
whom F. c. Andrews is said to have Sc
cured the money by means of over-drafts
and certified checks, is seriously i'll at
his home with nervous prostration. In
addition to a total Indebtedness to the
City Savings bank OF 81, ,15S,O 900, to secure
which Mr.. Andrews has signed over to
that institution all his real estate hold
ings and stocks; bonds and other secur-
tiles, which it is estimated will total
about $1.OO0OOO, four local banks and a
trust company hold his checks, certified
to by Cashier Andrews, to the amount
of $662. .00O A considerable number of
these checks are protected by securities
deposited with them by Mr.. Andrews.
Enormous Overdrafts.
Commissioner Maltz found that Cashier
Andrews had permitted F. C. Andrews
to overdraw his account $914,0 Other
liabilities brought f. c. Andrews total
Indebtedness to the bank up to 81, ,15S, ,000.
In addition to this, Cashier Andrews
had certified to checks for F. C. An
drews, which he had deposited in other
banks, to the amount of $662,000.
The examination showed that the rec
ord of F. c. Andrews transactions was
not Kept in the regular way, but in a
memorandum book. The first record of
a transaction between Cashier Andrews
and f. c. Andrews is Jan. IL, but the
examiners estimate that the transac-
tions have been going on for about six
weeks. President F. c. Pingree ex-
planned the manner in which the certified
checks We're obtained as:
f. G. Andrews would draw a check for
the amount he wanted and have it Ger
titled by the cashier, Henry r. Andrews
He would present this certified check
to the person with whom he was doing
business and ask him 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,
ne would go in and take it out. There
would be only 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 certi-
fed check and tear it up. This was done
time and again.
The City Savings bank was the depos-
itory for the funds OF the county aud
itors, their balance there being more
than $150.000 and F. T. Andrews was
arrested this afternoon on complaint
sworn out by Auditor Christians. after
a long conference between the auditors
and Prosecutor Hunt The warrant
was served on Andrews, who is COM
missioner of police, by two of his de-
tect1ves.
The City Savings bank was also the
depository for the board of education
which had a total of 1857 600 on deposit.
Other local banks Will temporarily ad-
vance funds to the board Of education
for salaries and running expenses.
At meeting Of the clearing house as
sociation this Afternoon the following
statement on the suspension was isued
The disaster which has today befalIen
the City Savings bank is the result of
criminal Irregularities confined entirely
to that institution ana caused by the
rash speculation of IT'S vice president
who controlled the management and be-
trayed his trust. The bank has been
expelled from the association. The Of.
feers of this association desire 10 state