The Birmingham age-herald., 1905-07-10
.STLOU|S NOW HAS BIG BANK SPINDLE E. 6. Lewis is Forbidden to Use
 the Nails
FRAUD ORDER IS ISSUED
Publisher and Realty specuIator Has Borrowed Most of the Money Placed in His Bank by Thou
 sands of Depositors.

Washington, July 9.-Postmaster Gen. eral Cortelyou tonight announced the issuance of fraud order against the Peoples United States bank of St. Louis. Mo-, it's officers and agents, and B. G. Lewis, a publisher, effective July g. The action bars the company from the use of the mails until after an investigation of the postal authorities as to the de- tails of the business of the institutions. The Postmaster General in his announce ment tonight says:
 Tt is understood the funds of the bank which have not been borrowed by MT. Lewis and his enterprises, amounting to about two-thirds of the total amount remitted, are deposited in banks and will be available toward reimbursement of the | stockholders, who number upwards of | 65,OOO. It is the intention of the officers of the Postoffice Department to cooper ate with the Secretary of State of Mis- souri in every proper way for the in- terests of the investors and depositors."
 Never Pledged Dollar.
 The announcement of MT. Cortelyou says that although in early articles in his magazine MT. Lewis represented that he would subscribe to the capital stock dollar for every dollar subscribed by all 1 others, so that he would own half of the capital stock, and that later he rep resented that he had pledged his entire fortune, every dollar he had and his publishing business in this banking en- terprise, and that his subscriptions would | AoI1 fl,a found that MT. Lewis had not co-operat- ed to the extent of a single dollar of his own money, although the bank had been in operation seven months. and had a paid up capital stock of two million dol- lars"
 Continuing, the statement says:
 'The inspectors found that MT. Lewis had made an admission to that effect to | Bank Examiners Cook and Nicholson, April B. 1905. The inspectors and their office force in St. Louis made careful checking of the subscription books find- Ing that on March 15. 1905. MT. Lewis had received and held as payment for l shares of stock in the bank g, ,045 61. and had accounted to the bank in an amount not exceeding s2,204,994 This showed that every cent of the s2.000,000 capital stock which had been paid in was paid out of subscription money received by MT. Lewis from the public, and that none of his own money had been invest ed in the enterprise.
 This was found to be the fact that al- though MT. Lewis had stated in writing to the inspectors that $495, ,750 of the $500,- GOO paid at the original incorporation of the bank were his personal funds. Subse- uuently at the hearing before the assist ant attorney general. Mir. Lewis admit ted that that money was received by him from the public, and was not his own Although asked to do so at the hear ing. Mir Lewis failed to produce any evil dence whatever that any of his personal funds had gone into this enterprise. MT. Lewis stated at the hearing that the directors had never refused to make a loan he requested.
 No Committee Named.
 "The most important of the representa- tions were that all funds of this bank would be loaned by a committee composed of three directors each from the five prin- cipal banks of St. Louis. etc.
 ''The evidence showed and Mir. Lewis admitted that hundreds of thousands of dollars were loaned to himself and his various enterprises, that no committee of fifteen had been established, but that the loans had been made practically at Mir Lewis will. On March 15 the day after the inspectors began their investi- | gation in the bank, MT. Lewis placed Tn It's assets two notes-one for $50.oOO sign ed by himself alone. without collateral, the other for $146.37563 by the board of directors Mir Lewis received no money from the bank at that time the notes being put Into the bank to cover money previously expanded by Mr. Lewis. The last mentioned note. MT. Lewis claimed, covered money spent In promotion of the bank. but as the secretary of state of Missouri declined to allow the item, It stands as a personal loan to the direc- tors On March 15 MT. Lewis had loaned from the banks funds to himself and his enterprises sS94. 63 the paid in capital l stock of the bank then being half a mill lion. On March 29. when $2000.00o capital stock had been paid In. statement pub lIshed by MT. Lewis at the hearing upon request showed he had loaned to himself and his enterprises s9o7. .53sss These loans include S46,s7563 to the directors, s390000 to the Lewis Publishing company. $346 16320 to the University Heights Realty and Development company. and s25.ooo to F. G. Lewis At that time Mir. Lewis had s4s. 7sO of the lanI's money invested in stocks and bonds of his enterprises.
 "The evidence further showed that Lewis had agreed to loan s66.666. 66 of the banks money on an unsecured note. but was prevented from doing so by secre- tary of State Swanger. The University Heights Realty and Development com pany. which had borrowed from the bank $346 163. 20 and the stock of which to the extent of 1277 shares MT. Lewis sold to the bank. is shown to have assets con- ssting for the most part of land pur- chased for s20o,00o as speculation in su- 'burban property. and upon which MT.