Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-07-10
CET-R|CH-QU|CK
BANK UP AGAINST It
Fraud Order Issued Against the
Peoples United States Bank
Of ST, Louis, Mo.
NOTHING BUT A SWINOLE.
Lewis, Chief Promoter Never Pot In u
Single Dollar Though he Promised
Subscribers to Meet Subscriptions

Washington, JuN n.roHlma3lp'
General coucyuu tonight announced
the issuance of fraud order against
the Peoples United states bank of st.
Louia, Mo, ~ officers and agents und
u, g. Lows, publisher effective Jnl'
~ The action bars Dho company from
the use ~ the mails urlor uu lnvostlRu'
lion by the postal authorities ut 10 the
d,lails ~ the business Of the institute
ton, me postmaster pcnuW M M
announcement tonight Says
"ll IN Understood mat the FUNDS ~
The bank which have not been n'r.
ioNcd by Me- Lewis aud biz culcr.
prlsoa, amounting Ia about lV0'lhrdh
NJ the total amount omiucd are de-
POSTED IN banks and Win be- available
toward reimbursement Of the Noclt'
holdcra who number upward NJ ooJp,
II ia the intention or the oihcorE Of ih"
IuNonco department tn cooperate
win the secretary Of slulc N Missouri
IN every proper way tor the interests oi
the investors aud dopoNilow'
The announcement Of Mr. rouolyou
says that although IN oWly articles lu
hls magazine Mr. Lewis represented
that he would subscribe to the rtplill
stock dollar for cN'l} dollar SUP,
tprhod by m othcrs. 80 TINT he WOULD
own half NJ the capital stock uud lhhl
later he represented that h' uld
pledged hls entire fortune 0oN doi'
lar he hal, and hla publishing business
IN this banking enterprise, iUd mat ma
subscriptions would exceed 81 ouOoOO
tho inspectors found tNu Nh lcWiN
had not co.opoHtod to the rNlcnl of !
sluglo dollar NJ his own money dl'
though the bank had been I'm opoms
ton several months ud had Il Wid'up
,aptal stock ~ i2,00uUoo.'
Continuing, lhc statement says.
The inspectors found That MI LOWS
had made nm admission iu lhul effect
70 the bnnk examiners ON Ann 3, 1905,
Tho inspectors ana their office force
IN ~ Louis made 10 careful checking
Of the subscription books, nudMg ihat
ON MAph 81, 1905. Mr Lewis had Zee
rclVod and held us payment for shares
NJ stock IN tho bank t2,gS9ON ana hpd
accounted 90 the bank iu an amount not
exceeding i2,2Oi,Ng This showed mat
every cent " the t,oOOooO capital
stock which had been paid I'M Wps paid
WV W NNUHi IllllNIl lIINlNN lN''IN'N Wy
Mr. Lows from the public ana that
mono NJ hF own money had been I'm
vested in the enterprise. This WON
found to be- the fact, although Mr.
l,cWls had stated iu writing tu lho iu.
succtow that tNj 80 of the tiOO0oO paid
IN Al tho original Incorporation NJ the
bank were his personal funds Suhso'
puenllv ~ the hearing before the ns,
sisiani attorney R'nowl Mr. Lewis ad'
mittod nat That money was received ny
him from the people ana was not lly
own Although asked 10 DO 30 ~ the
hNrlng Nh Lewis failed 10 produce
envy evidence whatever that any Of his
personal funds had gone into this enc
lrrprlap, Mr. IpNlH stated az the hear.
lug that the directors had never zee
fhetd 10 make a loan he requested
The most important of the rcproHcn.
intlOns were that nll NJ the funds NJ
This bank would be lONncd by a com.
mttoo composed ~ three directors each
lom the ave principal banks Of ~
Louis
"lhc evidence showed. ana Mr. Lew.
IL admitted II, that hundreds of lhuus.
Nnds Of dollars were loaned Ia himself
ana his various enterprises, that no
committee Of 10 had been established,
hut that the loans had been made
practically AZ Mr. Lewis viii, ON
March No, the day after the inspectors
hcgan their Investigation In the bank
Mr. Lewis placed iu ils assets two
notes, one fur iiO0nn signed by him
sof alone, without collateral, the 9th.
cr for tll6.3iO signed by the board "
directors Mr. LOWS received no
money from the bunk Al mat time, the
notes beinR pat into the bank lu cover
money previously expended by Mr.
LOWS The last mentioned note Mr.
Lewis claimed, covered money spent IN
promotion of the bank. but are the see.
rotary Of state of Missouri declined 10
allow the iem n stands ts a person.
al loan to the dncolorN
ron March 10 Mr. lewis mad loaned
rlom the banks funds IN himself and
his enterprises i3ri6oo. the puld.n.otp.
llal stock uf the bank then hong hair
million On M,rll ~, when $1,000 OOO
capital stock had hpyn paid ln u state
mont furnished by NJ LoWiS ~ iho
hearing upon request showed hr hld
loaned to himself ana mis- enterprises
SNoi o2n These lolns include 3iG 10
the directors l3Do00O lo the Lewis Pan,
fishing COMPANY ,3i6lG39o to the Uni
NornilY Heights Realty A Development
company ana i9i 600 lo u, q fowls. A.
mat time Mr. LOWS had $3.50 of mo
hankA money invested IN stocks ana
bonds Of hlH enterprises The evidence
further showed that Lewis had agreed
10 loan go CO.. NJ the hanks money ON
an unsecured note, hat was prevented
from doing su by Secretary OF state
EwanRcr the University Heights
Realty a Development COMPANY which
had borrowed from the bank i3iGl63
and the stock of which 40 the extent of
l2ii shares Mr hoWiH sold 10 the hank
y shown 10 have Dsso.H conaIstug for
the most mari lu lind nurphtNDl fam