Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-07-10
ISSUES FRAUD ORDER
Peoples United States Bank of
st. Louis Under Ban Of
Postal Department
HAS $4,000 STOCKHOLDERS
s $4,000 STOCKHOLDERS
Investigation by the Department Re-
veaIs a Peculiar State of Affairs
With Reference to the Institution
Promises of the Promoters Are Not
Kept.

Washington, July 10.-Postmaster
General Cortelyou last night ANNOUNCE
ed the issuance Of a fraud order
against the Peoples United States
bank of st. Louis. Mo-, it's officers,
agents, and e. G. Lewis. a publisher,
effective on July g. The action bars
the company from the use of the mails
after an investigation by the postal
authorities as to the details of the
business of the institution. The post
master general in his announcement
last night says:
1T is understood that the funds Of
the bank which have not been borrow
ed by Mr.. Lewis and his enterprise,
amounting to about two-thirds of the
total amount RENTED, are deposited
in banks and will be available toward
reimbursement of the stockholders
who number upwards of $4,000. 1t is
the intention Of the officers OF the
postoffice department to cooperate
with the secretary of state Of Missouri
in every proper way for the interest of
the investors and depositors."
The announcement Of Mr.. Cortelyou
says that altho in earlier articles in
his magazine. MIR. Lewis represented
that he would subscribe to the capital
stock dollar for every dollar sub
scribed by all others. SO that he would
own half of the capital stock and that
later he represented that he had pledg-
ed his entire fortune, every dollar ne
had and his publishing business in this
enterprise and that his subscriptions
would exceed $1,000.000. the inspectors
found that Mr.. Lewis had not coop
Grated to the extent Of single dollar
of his own money, altho the bank had
been in operation seven months, and
had a paid up capital stock Of 81
900, 1000"
Continuing, the statement says:
Had No Money Invested.
"The inspectors found that Mr..
Lewis had made an admission to that
effect to Bank Examiners Cook and
Nichols on April s, 1905. The in
spectors 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 $2.2ss, 043.61, and had
accounted to the bank in an amount
not exceeding s2,2O4,994. This showed
that every cent Of the 100000 cap
ital stock (Which had been paid in was
paid out of the subscription money re-
ceived 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 i'm
spectors that $495,7 $50 of the 100000
paid in at the original Incorporation 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
by him from the people, and was not
his own. Although asked to do so at
the hearing Mr.. Lewis failed to pro-
duce any evidence whatever that any
of his personal funds had gone into
this enterprise. Mr.. Lewis stated at
tha hearing that the directors had new
e. .s1e1used to make a loan he request
al