The Montgomery advertiser., 1905-07-10
FRAUD ORDER ISSUED
PEOPLES UNITED STATES BANK OF
 ST. LOUIS IN TROUBLE.
Postal Authorities, After CSncluding an investigation of Orgneasa- tiOn's AAairs, Bars 1t from
 Use of Mails.

an Investigation of Orgaeisa-
 tiOn's AAairs, Bars 1t from
 Use of Mails.
 Washington. July s.-Postmaster General Cortelyou tonight announced the issuance of a fraud order against the Peoples United States Bank of St. Louis, Mo, its officers and agents and E. c. Lewis, a publisher. effective July g. The action bars the company from the use of the mails after an investiga- ton, by the postal authorities as to the details of the business of the institu- tion.
 The postmaster general In his an- nouncement tonight says: Tt is un- derstood that the funds of the bank which have been borrowed by MT. Lewis will be available toward reim- pursement of the stockholders, who number upwards of 65,00o. It is the intention of the postofice authorities to cooperate with the Secretary of State of Missouri to try and straighten out the banks affairs without loss to the depositors."
 The inspectors and their ofnce force in St. Louis made a careful checking of the subscription books, finding that on March 15, 1905. Mir. Lewis had re- ceived and held as payment for shares of stock in the bank s2,28s,043.e1. and had accounted to the bank in an amount not exceeding sa,2o4.ss4. This showed that every cent of the $2.00o.- 900 capital stock which had been paid in was paid out of subscription money received by Mir. Lewis from the public and that none of his own money had been invested in the enterprise. This was found to be the fact. though MT. Lewis had stated that $456.s80 was his personal funds. Subsequently at the hearing before the Attorney General. Mfr. Lewis admitted that the money was received by him from the public and was not his own. Although asked to do so at the hearing. MT. Lewis failed to produce any evidence what ever 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 loan he requested.
 The most important of the represen- tations were that all funds of this bank would be loaned by committee composed of three directors each from the five principal banks of St. Louis.
 The evidence showed. and Mir. Lewis admitted, that hundreds of thousands of dollars were loaned to himself and his various enterprises. that no com mittee of fifteen had been established. but the loans had been made practical ly at MT. Lewis's will. On March 1b. the day after the inspectors began their investigation in the bank. MT. Lewis placed in It's assets two notes, one for $50, 900, signed by himself alone without coilateral; the other for 3146.- 76563, by the board of directors. MT. Lewis received no money from the bank at that time, the notes being put into the bank to cover money previous ly expended by MT. Lewis. The last mentioned note Mir. Lewis claimed covered money spent in promotion or the bank, but as the Secretary of State of Missouri declined to allow the item. directors. On March Is MT Lewis had loaned from the banks funds to him. self and his enterprises. S394. 4.604.63. the paid in capital stock of the bank then being half a million. On March 29, when s2o0O.O00 capital stock had been paid in. a statement published by MT. Lewis at the hearing upon request showed he had loaned to himself and his enterprises $907,63Ss3. These loans include sl46'a7b:eS to the direc- tors s3go.00o to the Lewis Publishing Company and s34s.163.20 to the Univer. sity Heights Realty and Development Comnany At that time MT. Lewis had S3,730 of the banks money invested in stocks and bonds of his enterprises.
 The evidence further showed that MT. Lewis had agreed to loan $66.8SS.66 or the banks money on an assured note. but was prevented from doing by the Secretary of state, Ihe university Heights Realty and Development Com many which had borrowed from the bank s346.163.20, and the stock of which to the extent of 1.277 shares MT. Lewis sold to the bank. Is shown to have assets consisting for the most nart of land purchased for $200.0o0 as a snecu,ation in suburban property and unon which Mir. Lewis stated about si5O. 900 had been expended In improve ments. It's liabilities are shown to be $674.70o.53.
 Anril 8. 1905. the cashier of the bank ,oid tho inspectors that 4.35l shares of the caiptal stock had been issued and in every instance the shareholder had signed a proxy appointing MT. Lewis to vote the stock:
 June 5th last John E. Swanger. Sec retarv of State of Missouri. made number of demands on MT. Lewis as to the future conduct Of the bank. which corroborated the report of the inspec- tors as to the condition as above out lined As to these demands, which reouired immediate return to the bank of all funds borrowed by MT. Lewis and bis enterprises MT. Lewis has fail ed to nay the loans. Mir Lewis is receiving large number of remit tances of the stock in the bank in his own name. It further appears that 1t is the intention of the bank to increase its stock 10 s5.0oo.ooo and re- mtttances are being asked for on that account. It is impossible to separate the bank for MT Lewis in this matter. of the attorney general. to whom the Poatmaster General submitted the mat.