The state herald., 1902-02-14
HE TOOK A MILLIorl
BANK OFFICER eETRAYs TRUST.
Vice President Andrews Of Detroit
Savings Bank overdraws His Ac-
count With connivance Of
the Cashier,

Detroit, Feb. 11.-yice President
Frank G. Andrews of the City Savings
bank, which has been in the hands of
State Banking Commissioner George l..
Maltz since this morning, was arrested
late this afternoon, and arraigaed to-
night on the charge of ''wilfully, fraud
ulently and knowingly" securing from
the bank, without security and with
out the knowledge Of the other direc-
tors, sum exceeding $1,000,000. He
was released on $4,000 bail. and his
examination was set for February 21st.
Cashier Henry G. Andrews, through
whom Il. G. Andrews Is said to have
secured the money by means of over
drafts and certified checks, is seriously
i'll at his home, with nervous prostra-
ton.
In addition to n total Indebtedness
to the City Savings bank Of 81, 1880
to secure which Il. G. Andrews has
signed over to that institution all his
real estate holdings and stocks, bonds
and other securities, which, 1t is estl.
mated, will total about $1,00O,O00, four
local banks and trust company hold
his checks, certified to by Cashier An
drews, to the amount of $GG2OO0. A
considerable number of these checks
are protected by securities deposited
with them by Mr.. Andrews.
At the close of his examination Com
missioner Malt tonight issued the
following statement of the banks con-
ditlon at the close of business Febru-
ary Sth:
Resources-Total loans and discounts,
bonds, mortgages and securities, S2,-
363,003; ovcrdrafts, S913,S52; real es-
tate, S10,SS9; cash in bank, S2SS, ,69I !;
other assets, $1S,022.
Liabilities-Stock, surplus and undi-
vlded profits, S225,2l2; deposits, S3,-
370,251.
The examination showed that the
record of Il. G. Andrews transactions
was not kept In the regular way, but
In n memorandum book. The first rec,
ord of a transaction between Cashier
Andrews and Il. G. Andrews is jan
uary IL, but the examiners estimate
that the transactions have been going
OH for about six weeks. President f.
G. Pingree explained the manner in
which the certified checks We're obtain
ed as follows:
''F. @. Andrews would draw n check
for the amount he wanted, and have
1t certified by the cashier, Henry C..
Andrews. He would present this certi-
fled 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 II. Perhaps
he would thus hold 1t out for two or
three days, and eventually when there
was money enough in the bank TO meet
the check, he would so In and take II
out. There would be only the slip of
paper In the drawer and the with
drawal would he put down as n cash
item. With this money he would In
person pay the certified check and tear
1t up. This was done time and time
again"
The City Savings bank was the de-
pository for the funds Of the county
auditors, their balance there being
more than Sl50,OO0 and i. c. Andrews
was arrested this afternoon on com
plaint sworn out by Auditor Christian.
after n long conference between the
auditors and Prosecutor Hunt. The
warrant WIS served on Andrews, who
Is commissioner Of police, In the office
Of the Detroit Trust Company, where
he had been In consultation with OIL
GERS OF the banks holding his certified
checks. The City Savings bank was
also the depository for the board OF
education. which had total Of Si6I.-
900 ON deposit. Other local banks Will
temporarily advance funds TO the
board OF education FOR salaries aud
running expenses.
The other banks Of the city are In
good condition and there II no panic.
At the GratIot Avenue branch OF the
City Savings bank. which drew Its de-
poslts largely from the lnborlng pco
pie. there were many pathetic scenes
ns the depositors learned that the bank
had suspended. Policemen Were In the
vicinity to queli any disorder, hut their
services were not necessary at any
time.
II is expected that T.. &. Andrews
will issue n statement later. While
walking up and down the hallway out
side the trust company's office to-day
he said:
Young men can point TO me as an
example OF the result Of speculation
manila"