The sea coast echo. [volume] (Bay Saint Louis, Miss.) 1892-current, 1905-07-15

, Postmaster General Cortelyou Satur
day night announced the issuance OF
fraud order against the Peoples United
States Bank of st. Louis, Mo-, its Off
GERS and agents, and E. J. Lewis, {
publisher, effective July 9. The actor
bars the company from the use of mails
after an investigation by the posta
authorities as to the details of the bust
ness of the institution. The post mas
ter general, in his announcement, says
s'It is understood that funds of the
bank, which have not been borrowed by
Mr.. Lewis and his enterprises, amount
ing to about two-thirds Of the total
amount RENTED, are deposited in banks
and will be available toward reimburse
ment of the stockholders who number
upwards of $4,000. 1t is the intention
Of the officers of the postoffice depart
ment to cooperate with the officers OF
Missouri in every proper way for the
interests of the investors and depos-
itors."
The announcement of Mr.. Cortelyou
says that, although in early articles in
| his magazine "Mr. Lewis represented
that he would subscribe to the capital
stock dollar for every dollar subscribed
by all others, so that he would own half
of the capital stock, and that later he
reported that he had pledged his entire
fortune, every dollar he had and his
publishing business, in this banking
enterprise, and that his subscriptions
would exceed a million dollars, the in
spectors found that Mr.. Lewis had not
co-operated to the extent of single
dollar of his own money, although the
bank had been in operation seven
months and had paid up capital stock Of
two million dollars"
Continuing, the statement says:
s'The inspectors found that Mr.. Lewis
had made an admission to that effect to
Bank Examiner Cook and Nicholson
April 3, 1905. The inspectors and their
office force in ST. Louis made careful
checking of the subscription books,
finding that on March Is, 1905, Mr..
Lewis had received and held as payment
for shares of stock in the bank $685.,
043.61 and had accounted to the bank in
an amount not exceeding S2,204 ,99f.
This showed that every cent Of the
S2,000,000 capital stock which had been
paid in was paid out of subscription
money by Mr.. Lewis from the public
and that none of his money had been
invested in the enterprise. This was
found to be the fact, although Mr.. Lewis
stated in writing to the inspector that
1896, $50 of the S500,000 paid in at the
original incorporation of the bank were
his personal funds. Subsequently at
the hearing before the assistant attorney
general Mr.. Lewis admitted that that
money was received by HIM from the
public, and was not his own. Although
asked to do so at the hearing, Mr..
Lewis failed to produce any evidence
whatever that any Of his personal
funds had gone into this enterprise.
Mr.. Lewis stated at the hearing that the
directors had never refused to make a
loan he requested.
"The most important of the represen-
tations were that all funds of this bank
would be loaned by a committee COM
posed of three directors each from the
five principal banks of st. Louis, etc.
The evidence showed that Mr.. 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 the
loans had been made practically at Mr..
Lewis will. On March Is, the day after
| the inspectors began their investigation
in the bank, Mr.. Lewis placed in its as
sets two notes-one for $50, 900 signed
by himself alone, without collateral, the
other for St40,375.63 by the board OF
directors. Mr.. Lewis received no money
from the bank at that time, the notes
being put into the bank to cover money
previously expended by Mr.. Lewis. The
last mentioned note Mr.. Lewis claimed
covered money spent in promotion o.
the bank, but as the secretary Of state
of Missouri declined to allow the item
it stands as personal loan to the direc-
tors. On March ID, Mr.. Lewis hat
loaned from the banks funds to himsel
and his enterprises s394, ,60l.63, the pai(
in capital stock of the bank then beins
half million. On march 80, $2,000,00
capital stock had been paid in, a state
ment published by Mr.. Lewis at tn
hearing upon request showed he ha'
; loaned to himself and his enterprise
s907 ,53S S3. These loans included S146,
1858 to the directors, $500, 900 to tn
Lewis Publishing Company, s346, 1922
to the University Heights Realty an
: Development Company, and $4,000 +
I E. G. Lewis. At that time Mr.. Levi
: had sl3, ,730 of the bank money investe
in stocks and bonds of his enterprises
The evidence further showed that Levi
: had agreed to lean s66,6e6.6d OF til
banks money on an unsecured note
but was prevented from doing SO b
. Secretary of State Swanger. The Uni
x,arSItxy uaicrbtc Paaltr and Imprava