The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1905-07-22
ST. LOUIS BANK
IS UNDER BAN
Postal Order Bars Peculiar
Fiscal Institution From
Use of Mails
FOUNDER is GOOD BORROWER
E. G. Lewis, Magazine Publisher and
Promoter Of Large Enterprises, Does
Not Hesitate TO Accept Loans on
Personal Notes.

Washington special: The Peoples
United States bank OF St Louis. the
unique mail order financial institution
founded by +. G. Lewis. publisher OF
the Woman's Magazine. and promoter
OF many large st. Louis enterprises,
has been barred from the mails under
fraud order announced by Postmas-
ter General Cortolyou
The same order Includes Lewis and
all officers and agents OF the concern.
which, established 10 conduct a bank.
ing business, TO make loans, and ac-
cept deposits by mail. has done an
enormous business in many states
State Enters Complaint.
The character OF the enterprise was
first called in question by the Mis-
souri, authorities. who raised the point
that Lewis was borrowing too heavily
from the Institutions funds for other
enterprises In which he vas inter
ested.
1T is understood that the funds OF
the bank which nave not been Dor.
rowed by Mr.. Lewis and his enterprls-
es. amounting TO about two-thlrds OF
the total amount remitted." says the
postmaster general in his announce
ment, ARE deposited in banks and will
be available toward reimbursement OF
the stockholders. who number upward
OF Go 900
Lewis represented that he would
subscribe TO the capital stock a dollar
for every dollar subscribed by all 9TH
ers SO that he would own half OF the
capital stock. Later he represented
that he had pledged his entire for
tune In this banking enterprise. The
inspectors found that Mr.. Lewis had
not co-operated to the extent OF a
single dollar. although the bank had
a paid up capital OF $2.00000o
March Is. 1905. owls had received
for shares I'm the bank $2.2S9.04361.
and had accounted 10 the bank IN an
amount not exceeding S2.204994
This showed that every cent Of the
s. 600 600 capital stock which has been
paid In was paid cut OF subscription
money received By Lewis from the
public and that none Of hts own money
had been invested In the enterprise
This was found to be the fact al.
though Mr. Lewis had stated In writ.
ing 10 the inspectors that Si95 $50 OF
the S500,00O paid In az the original in
corporation OF the bank were his per.
soral funds Subsequently az the
hearing before Assistant Attorney
General Mr. Lewis admitted that that
money was received by him from the
IA "a az fu
The evidence shows. and Lewis ad.
mitted, that hundreds OF thousands Of
dollars were loaned 20 himself and his
various enterprises, practically at his
will. The day after the investigation
began he placed In the assets two
notes-onc for $4,000. signed by him
self alone without collateral, the
other for Sl4G,375.G3. signed by the
board Of directors. Mr. Lewis received
no money from the bank at that time,
the notes being put into the bank 20
cover money previously expended by
him
March % Lewis had loaned 10 him.
self and his enterprises 1907 53S.S3.
These loans include $ilG375.C3 10
the directors. 1890 coo 10 the Lewis
Publishing Company. S3iG.163 20 TO the
University Heights Realty and De.
volopmcnt Company. and $4,000 10 T..
@. Lewis At that time Mr. Lewis
had $40, $50 Of the hanks money In.
vested IN stocks and bonds Of his en-
tcrprises. The evidence further
showed that Lewis had agreed 20 loan
soc ,6GGCG Of the banks money on an
unsecured note, but was prevented
from doing SO by Secretary OF State
Swanger
The University Heights Realty and
Development Company which had
borrowed fro mtho bank $3l6.1G3 20.
and the stock OF which 10 the ex.
tent of .217 shares Mr. Lewis sold to
the bank. is shown TO have assets
consisting for the most part OF land
purchased for $500 600 as n speculation
I'm suburban property. aud upon which
Mr. Lewis stated about $4,000 had
been expended in improvements. Its
liabilities are shown TO be SG74. 700.53.
on April s. 1895. the cashier OF the
bank told the inspectors that 1881
shares of the increased capital stock
had been issued and in every ip.
stance tho shareholder had signed
proxy appointing Mr.. Lewis TO vote
the stock.
MIR. Lewis IS receiving large mum.
her ~ remIttances for stock In tho
bank In his own name. II further ap.
pears that Il Is the intention OF tho
bank to increase It's stock TO $4,000.
000."