The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-10
RAMON The PEOPLE SU.S. BANK
yP,ID ORDER ISSUED AGAiNSI
4 ST. LOJIS CONCERN.
u, Promoter Isrd the Mails In securing
.,,rS az stock and soliciting Deposits
cot r.: OOO. 900 From the Public
,d,o,nrd n Third OF II TO Himself.

.dIoaurd a Third or II TO Iiimself.
N..n.>oroN, jnly @ fraud order
c.,,n., me Peoples nited states Ahk'
~, ,n,.cr- and agents "a such, and r. .
..,.. t ST Louis Mo. was issued ny
l,.r.g-,.,i General CorteIyou on july U.
,g.. .f,.' tomorrow morning Inc
,,a, a rAo Postmaster 'ieneral was
,,..NaI after It full hearing OF the case by
49,, ,.-..'ant Attorney General for the
I,., u"ca pa. artment
IL, ,,-un,,-, 20 a citation TO show cause
,.t.., rrp.,I order should not be issued
.....,-, ,hou the Peoples United States
Ian. and + : Lewis appeared before the
,,.,a,t Attorney General for the Post
nr.,. Dapar,ment IN June 49, in the per-
..,,. # (,,.,re, SHIELD and Shepard Bar
-, ,.lor,.rv- and T. s. Lewis,
r,,or, i Cauo. and II. l.. Kramer.
,.l ,,ad. answer to the charges.
f,, ., ..,,.r." IN the case showed that
-, r,w.. t,oi tie mails as his prime ipal
,.s,t j., riY,uNtinE the sale of stock and
.,.ur.p.; deposits in the bank.
The Peoples United States Bank was
,r,.r,cI 10 transact all of its business by
,s Use. f the mails The plan was to re-
.FI - -
,.,.& .y.tcn an d do exclusively mail
order Eauking business. Mr.. Lewis began
.Ie,rnrnotiof. Of this bank in the WomGns
YaQG,iHc for February, 1904, and has In
subsequent issues of the Womdn's Mo0G-
s.,c extensively advertised this bank.
Among the false and fraudulent repre-
sen'e'ion- and promises which the Post
uast,r-General found Mr.. Lewis had mnde
IN the promotion Of his scheme were those
relative to the amount Of capital stock
which Mr. Lewis had subscribed and
would subscribe, representations relative
10 the independent, strong, capable men
who would compose the board Of directors.
representations and promises that all funds
Of the bank would be loaned by Il com
p,it,ee composed Of fifteen directors Of the
Principal banks in St. Louis. and that the
funds would not be loaned to himself or
other directors.
The Postmaster General found that in
his early articles In the Womdn's Nhzn-
Nne and in his other advertising
literature about the hank Mr.. Lewis
reprcscnted that he would subscribe to
the capital stock q dollar for every dollar
subscribed by all others. so that ne would
that later he represented that he had
pledged his entire fortune, every dollar
he had, and his publishing business In this
banking enterprise. and that his subscrlp-
lions would exceed million dollars, These
representations were found TO be false and
made with intent to deceive.
The inspectors found that Mr.. Lewis
had not cooperated to the extent ola single
dollar of his own money. although the bank
had been In operation seven months and
had paid up capital stock OF $4,000 900.
The INSPECTORS found that Mr.. Lewis had
made an admission to that effect to Bank
Examiners Cook and Nichols on April g. 1905.
The inspectors and their Office force in
s.. Louis made a careful checking OF the
subscription books, finding that on March
49, 1905, Mr. Lewis had received and held
a. payment for shares of stock in the bank
ST. ,O43 81, and had accounted toSthe bank
in An amount not exceeding 81 .2O4 903 .05.
This showed that every cent OF the
100000 capital stock which had been paid
in was paid out of subscription money re-
oeived by Mr. Lewis from the public. and
that none OF his money had been invested
In the enterprise. This was found to be
writing to the inspectors that St85 $50 OF the
si0oooO paid in at the original incorpora-
ton Of the bank We're his personal funds.
Subsequently, at the hearing before the
Assistant Attorney General, Mr.. Lewis
admitted that that money was received
hy lin from the people and was not his
own. Although asked to do SO at the
I"arug Mr. Lewis failed to produce any
evidence whatever that any Of his personal
& nd- had gone into this enterprise or that
he ever intended 10 subscribe, or was in a
financial condition to subscribe for the
largo amount Of stock which he represented
le wW-'d take
or VI rich Ii lewis had loaned from the
tanh funds to himself and his enterprises
sSi COS -, the paid IN capital stock OF the
ank hen eng half million. On March 20,
when $4,000 CO capital stock had been paid
IN, statement furnished by Mr.. Lewis
Al the hearing showed that he had loaned
10 himself and his enterprises 1901, bSs, 49,
The University Heights Realty and |
Development Company, which had Dor
'o*ed from the bank s346, 1853 20 and the
stock Of which TO the extent of l.277 shares
Mr. Lewis sold to the bank, has assets
CONSISTING Iol lile IliDsl pdTt Oh IduU puI-
chased for 100000 a. a speculation in |
suburban property, and upon which Mr.. |
l"v;s stated about $50, 0oO had been ex- !
pended in improvements Its liabilities !
are shown to he 1914, 7OO53.
u APPEARS further that Lewis endea vored /
10 obtain proxies from all stockholders ap- |
pointing himself TO vote the stock, which |
proxies should remain in force for three |
wears At least, and in case revocation was /
"'-'lred in that time Mr. Lewis was to have
opportunity to purchase the stock.
On April &. 1905, the cashier of the bank ,
'''a the inspectors that 1881 shares OF the |
Increased capita stock had been issued |
ana IN every instance the shareholder had
Nsned proxy to the above effect.
" appears that it is the intention OF the |
'M'K t" increase its stock to s. ,OO0, 900 and
''Mt'anccs are being asked for on that
account
~ Is Understood that the funds OF the
rank which have not been borrowed by !
'"'N'' ana his enterprises, amounting to
"h"Ht two-thirds Of the total amount re-
'"t,'d' arc deposited in banks and will be
"'"l'ah" toward reimbursement of the
stockholders, who number upward of az COO