Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1902-02-11
THE OFFICER 70 BLAME
Vice President of Detroit Bank the
Person Responsible for Banks
Closing Doors.
Had Been Allowed to Overdraw His
Account in the Sum of Nearly
Million.
Had Certified Checks for $7oo, 900 il
Addition-Deposits of the Bank
Three Millions. %

=. 4 i
Three Millions.
Detroit, Mich, Feb. 1.-THE City
Savings bank did not open for busi-
ness during the morning. At O'Clock
the following notice was posted on the
door:
''This bank is in the hands of George I
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 $3,000,O00 and An
drews had more than half OF this
money out on certified checks and
overdrafts. There are $662,000 out in
certified checks and $914,000 in over
drafts. Henry r. Andrews, cashier OF
the bank, advanced this money to
Frank c. Andrews without the 5knowl-
edge of the directors. They are en-
tirely blameless in this matter. When
learned of the banks condition I
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 in 1889, are: President,
Frank G. Pingree; vice president,
Frank C. Andrews; cashier, H. R.
| Andrews; assistant cashier, Joseph A.
| Schultz.
| The capital stock of the bank is
| $15O,O00. According to the statement
of the banks condition. printed Dec.
II, the bank had total deposits of $3,-
/ 62,4O5.30.
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.
O43 and a sinking fund balance of $42,-
ia. County Clerk McGregor has s22.-
! 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 S467,-
900. The public library fund is also
in the City Savings bank.
/ Frank c. Andrews has filed 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,G00 and had also. without consid-
Grafton, certified said Frank C. An
drews' checks for over S700,000, all
of which checks were outstand-
| ing The bank was Immediately
put into the hands of the banking
! comm ssioner 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.
1.-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 G. 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 1:30
| o'clock was in conference with the
/ Detroit Trust company, stockholders
| of the City Savings bank, and other
bankers. 1t is expected he will issue
| statement later. Walking up and
down the hallway outside the trust
4 company's office, he said:
young men can point to me as an
4 example of the result of speculation
| mania" s
None Of the other banks in the city
4 are affected by the suspension 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 a run
on any occasion.
i Gage Will Accept II.
New York, Feb. lit is reported
4 with authority in financial circles
here that the presidency of the United
States Trust company in this city has
4 been offered to Lyman j. Gage, for
u N arlns cncrafaru of the tran SIfru and