Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-10


| or the mails. The Postmaster General In
his announcement last night said:
| 1t Is understood that the funds of thu
| pahk which have not been borrowed by Mr.
| Lewis and his enterprises, amounting TO
| ABOUT two-thirds of the total amount re-
| hhtted, are deposited I'm banks and will be
| available toward reimbursement OF the
stockhoiders, who number upward OF 05 600.
- me ihIentioon of the officers OF the
| iost ofnce Department TO cooperate with
the secretary OF state of Missouri I'm every
proper way for the interests OF the IN.
Hestors and depositors''
| History Of the Bank.
| Inc Peoples United States Bank was I'm.
| corporated November L. 1904, with a caps
ital stock OF s1,0o0.oOO. The capital stock
was increased March IL. 1905, to 81 800 ooo,
| OF which $1,000, coo was paid in
The original capital was divided into
10000 shares. 1915 of which were held by
H. ". Lewis, The remaining eighty-fve
snares were shown TO be held by seventeen
others, each OF whom held five shares
Inc men chosen for the first board of d.
Tectors were Edward G. Lewis. Frank ].
Cabot Augustine p CoakIey. Eugene w.
Thompson and Guy A. Arbogast
r. g. Lewis began advertising the bank
IN the February. 1904. edition OF a maya.
ZIne which he owned and controlled and
Whlch ne mad been publishing In ST. Louis
at the time for about a year This publ.
cation has continued to carry the ADVERTISE
ments of the bank since that time.
Mr.. Lewis Statement.
Early statements regarding the bank were
hlied with hope and promise. In the maga-
zine for July, 1904, 1t was stated by Lewiss
Since my article appeared in our last
issue over 10000 subscriptions to the capital
STOCK or our bank have been received
am arranging to turn nearly everything I
n. my bpf
ings in my present publishing business, and
expect to subscribe for at least 81 900 600 OF
the STOCK OF our bank. l must pay cash.
exactly the same you do for my stock
as there Is no promoters stock in this
bank. but when 1t opens its doors there Will
be dollar in cash in the vaults for every
dollar OF capital stock and every dollar OF
| my profits will go to increase the reserve OF
the bank each year.
ALREADY the enormous success OF the
bank is assured. One banker of Chicago
has offered to place a million dollars OF our
stock In a single day. A San Francisco
banker subscribed for 100000 of the stock.
but was permitted to have only 500 and
If any of my readers fail to get In before
all the stock is subscribed | shall not let
this banker have the $500 of stock
Did Not Contribute.
The Postmaster Generals statement says
that although Mr. Lewis represented that
he would subscribe to the capital stock a
dollar for every dollar subscribed by all
others, 50 that he would own half of the
capital stock, and later he represented that
he had pledged his entire fortune-eyery
dollar he had-and his publishing business
In this banking enterprise. and that his
subscription would exceed 81 600 600 the In,
spectors found that Mr. Lewis had not co.
operated TO the extent of "a single dollar of
his own money, althoughthe bank had been
IN operation seven months, and had paid
up capital stock of S2,Oo0.0O0.
Continuing, the statement says. The In
spectors found that Mr.. Lewis had made
an admission TO that effect to Bank Exam
liners Cook and Nichols on April 3. 1905.
The inspectors and their office force in st.
Louis made careful checking of the SUBJ
scription books finding that on March Is,
1903, Mr.. Lewis had received and held as
payment for shares Of stock I'm the bank
s., $50 0I361. and had accounted to the bank
in an amount not exceeding 81 204 994 This
showed that every cent of the 81 100000
capital stock which had been paid In was
paid out of subscription money received by
Mr.. Lewis from the public, and that none
of his own money had been invested in
the enterprise. This was found to be the
fact, although Mr.. Lewis had stated in
writing to the inspectors that s495 $50 of
the S50o.000 paid in at the original ncorpo-
ration Of the bank were his personal funds.
Subsequently at the hearing before the as
sistant attorney general Mr.. Lewis adj
mitted that that money was received by
him from the people 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 al the hearing that the directors had
never refused to make loan he requested.
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-
cpal banks of St. Louis, etc.
Loans to Himself.
The evidence showed that Mr.. Lewis
admitted that hundreds of thousands of
dollars We're loaned to himself and his
various enterprises; that no committee Of
fifteen had been established but that the
loans had been made practically at Mr..
Lewis Will On March -. the day after
the inspectors began their investigation
in the bank. Mr. Lewis placed in fits
sets two notes-one for $50. 900, signed by
himself alone, without collateral; the
other for S146.37563, signed by the board
of directors Mr.. Lewis received no money
from the bank at that time, the notes be-
ing put into the bank to cover money
previously expended by Mr.. Lewis. The
aforementioned note Mr.. Lewis claimed
covered money spent in promotion of the
bank, but the secretary of state OF
Missouri declined to allow the item it
stands a personal loan to the directors.
On March - Mr. Lewis had loaned from
the banks funds to himself and his en-
terprises 1894, 60463. the paid-in capital
stock of the bank then being half mil
lion. On March 30, when s., 000, 900 capital
stock had been paid in. a statement fur
nished by Mr.. Lewis at the hearing upon
request showed he nad loaned TO nlInSelE
and his enterprises 1907 ,53s.S3 These
loans include $146375.63 to the directors,
S390,000 to the Lewis Publishing Conn ..
pany, S346 1G3. 20 to the University Heights
Realty and Development Company and
5000 to Il. G. Lewis. AT that time Mr..
Lewis had S43T30 of the banks money
invested in stocks and bonds of his en-
terprises.
THE evidence further showed that
Lewis had agreed to loan 500, $685. GO of the
banks money on an unsecured note, bue
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 1920, and the stock of which to the
extent of 1,211 shares Mr.. Lewis sold to
the bank, is shown to have assets consist
ing for the most part of land purchased
for 5000. 900 a speculation in suburban
property, and upon which, Mr.. Lewis
stated, about $150,000 had been expended
In improvements. Its liabilities are shown
to be $614, 700.53. On April 8, 1905, the
cashier of the bank told the inspectors
that 1881 shares of the increased capital
stock had been issued and in every in
stance the shareholder had signed proxy
appointing Mr.. Lewis to vote the stock.