19082. Keystone Bank (Philadelphia, PA)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: December 2, 1890
Location: Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model: gpt-5-mini
Short Digest: bf3177a7

Response Measures

Accommodated withdrawals, Capital injected, Full suspension, Books examined

Other: Comptroller ordered closing and receiver appointed; substantial attempts to recapitalize were reported but failed.

Description

There was an intense depositor run on Dec 2, 1890 (paid small claims in cash and issued clearing-house due bills). The bank was later closed by the Comptroller in March 1891 and a receiver was appointed; attempts to recapitalize and reopen were discussed but failed and the institution ended in receivership. Dates for the suspension/closing are taken from contemporaneous correspondence (mid-March 1891) and receivership reporting in early June 1891. OCR errors in some articles corrected (e.g., references to $600,000 deficit by President Lucas).

Events (3)

1. December 2, 1890 Run

Cause: Bank Specific Adverse Info
Cause Details: Depositors rushed the bank amid concerns about the bank's condition (subsequently evidence of large deficits/defalcations by President Lucas and others emerged).
Measures: Paid checks up to $100 in cash; larger demands paid $100 in cash plus Clearing House due bills honored by arrangement with clearing house banks.
Newspaper Excerpt: The run on the Keystone Bank continues to-day ... All persons presenting checks for $100 or less were paid in currency ... Toward 1 o'clock the run on the bank seemed to have been broken.
Source: newspapers

2. March 16, 1891 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Comptroller closed the bank after uncovering large deficiencies and doubtful assets (including a reported $600,000 deficit tied to President Lucas and extensive real-estate assets); attempts to secure new capital were insufficient to restore solvency or confidence.
Newspaper Excerpt: On March 16th ... the comptroller ... closed the bank.
Source: newspapers

3. June 3, 1891 Receivership

Newspaper Excerpt: Referring to criticisms of his bureau in connection with the Keystone bank failure of Philadelphia, Comptroller Lacey said ... both the closing of the bank and the appointment of a receiver were ordered by the comptroller ... .
Source: newspapers

Newspaper Articles (24)

1. December 3, 1890 New-York Tribune New York, NY

Article from New-York Tribune, December 3, 1890

Click image to open full size in new tab

Article Text

THE RUN ON THE KEYSTONE BANK OVER. Philadelphia, Dec. 2.-The run on the Keystone Bank continues to-day with unabated vigor. All persons presenting checks for $100 or less were paid in currency, but any whose demands exceeded that amount are paid only $100 in cash. and receive Clearing House due bills for the rest. By an arrange ment with the Clearing House banks these due bills will be honored at any bank. Toward 1 o'clock the run on the bank seemed to have been broken. The line of depositors that early in the day completely enciveled the building rapidly dwindled down. and few took the place of those that had received their money. President Marsh said : "I think the run is about over. We have paid every one presenting themselves, and we are able to pay all. It is only our small depositors that have been making this run on The large business houses on our books have us. stuck to us, and over $10,000 has been deposited this morning." The $100,000 belonging to the city which was deposited in the bank was allowed to remain there by City Treasurer Bardsley. He said that he had been assured by the officers and directors of the bank and by Bank Examiner Drew that the bank was perfectly solvent. and therefore he saw no reason for withdrawing the money.

2. December 4, 1890 Delaware Gazette and State Journal Wilmington, DE

Article from Delaware Gazette and State Journal, December 4, 1890

Click image to open full size in new tab

Article Text

PHILADELPHIA, Dec. 2.-The run on the Keystone Bank continues to-day with unabated vigor. The crowd began to collect shortly before 10 o'clock and when the heavy iron door of the bank was raised they swarmed into the building and in a few minutes a line of 300 to 400 people was formed. All persons presenting checks for $100 or less were paid in currency, but any whose demands exceeded that amount were paid only the $100 in cash and are given clearing house due bills for the balance. By an arrangement with the clearing house banks these due bills will be honored at any bank. The $400,000 belonging to the city, which was deposited in the bank, was allowed to remain there by City Treasurer Bardsley. He said that he had been assured by the officers and directors of the bank and by Bank Examiner Drew that the bank was perfectly solvent and that, therefore, he saw no reason for withdrawing the money. The promptness with which every check was met and the heavy deposits made by a number of business houses, restored confidence in the stability of the bank and by 2 o'clock the run was over. It ceased with almost startling suddenness. At 12 o'clock the building was crowded with anxious and frightened depositors, impatiently waiting to draw their money. At 2 o'clock not a single person stood in front of the paying-teller's window, and but very few persons were in the bank, and they were but attending to their ordinary business.

3. June 4, 1891 The Helena Independent Helena, MT

Article from The Helena Independent, June 4, 1891

Click image to open full size in new tab

Article Text

OBLIGING COMPTROLLER. Ho Permits an Insolvent Bank to Do Business. WASHINGTON, June 3.-Referring to criticiams of his bureau in connection with the Keystone bank failure of Philadelphia, Comptroller Lacey said, to-day, as a matter of faet both the closing of the bank and the appointment of a receiver were ordered by the comptroller against the wish of all who had sufficient interest to express an opinion. There were many reasons it was to desirable why avoid R receivership, notably on account of its Assets being so largely in real estate. Hence the comptroller doomed it his duty to aid in several hopeful attempts to reepon the bank by the contribution of new capital, under new and competent management. As a matter of fact, it was officially reported to the comptroller that $800,000 of new capital had been subscribed and the Lucasestate was expected to make good all amounts due. Recont developments have shown that these plans could not have been carried out, but they wore sufficiently promising at the time to warrant the delay asked for. Similar measures, Lacey said, have caused the reopening for business within the past six months of at least four national banks whose capital had become impaired, and two more will open soon.

4. June 4, 1891 Los Angeles Herald Los Angeles, CA

Article from Los Angeles Herald, June 4, 1891

Click image to open full size in new tab

Article Text

LACEY'S DEFENSE. THE COMPTROLLER OF CURRENCY JUSTIFIES HIS ACTS. He Tried to Save the Keystone Bank as Many Other Banks are Saved-The Bardsley Investigation, Etc. WASHINGTON, June 3.-Referring to the criticisms of his bureau in connection with the Keystone bank failure in Philadelphia, Comptroller Lacey said today, as a matter of fact both the closing of the bank and the appointment of a receiver were ordered by the comptroller against the wish of all who had sufficient interest to express an opinion. There were many reasons why it was desirable to avoid a receivership, notably on account of its assets being so largely in real estate. The comptroller deemed it his duty to aid in several hopeful attempts made to reopen the bank by the contribution of new capital under a new and competent management. As a matter of fact it was officially reported to the comptroller that $300,000 of new capital had been subscribed, and that the Lucas estate was expected to make good all amounts due. Recent developments have shown that these plans could not have been carried out, but they were sufficiently promising at the time to warrant the delay asked for. Similar measures, Lacey said, have caused the reopening for business within the past six months of at least four national banks whose capital had been impaired, and two more will open soon.

5. June 4, 1891 Deseret Evening News Salt Lake City, UT

Article from Deseret Evening News, June 4, 1891

Click image to open full size in new tab

Article Text

Failures. WASHINGTON, June 3.-Referring to criticisms of his bureau in connection with the Keystone Bank of Philadelphia, Cemptroller Lacey said today: "As a matter of fact, both the closing of the bank and the appointment of 14 receiver was ordered by the comptroller against the wish of one who has sufficient interest to express his opinions. There were many reasons why it was desirable to avoid a receivership, notably on account of its assets being 80 largely in real estate, hence the comptroller deemed it his duty to aid in several hopeful attempts made to reopen the bank by the contribution of new capital under a new and competent management. As a matter of fact, It was officially reported to the comptroller that $300,000 of new capital had been subscribed

6. June 4, 1891 Deseret Evening News Salt Lake City, UT

Click image to open full size in new tab

Article Text

# IMMIGRATION LAWS. The Plan Proposed By Assistant Secretary Nettleton Approved By the President. DOUBTFUL IMMIGRANTS SHOULD BE EXCLUDED. Return of Two Italians and One Swede Who Have Become Paupers. By Telegraph to the NEws.! WASHINGTON NOTES. A Plan for Restricting Immigration Approved. WASHINGTON, June 3.- The plan proposed by Assistant Secretary of the Treasury Nettieton for restricting immigration has been approved by the President, and was today embodied in a circular letter and sent to all the steamship companies bringing immigrants to this country. It says, in part: "The evident disposition of many steamship companies under the pressure of sharp competition is to gather up in Europe and bring to the United States all who, without the aid of others, can pay the cost of steerage passage, regardless of their character or condition. Our laws compel, on the part of this government, a closer scrutiny and adoption of more comprehensive measures. So far as possible, the sifting process should be applied at the beginning, not the end of the journey. Much of this wholesome prevention work can be effectively done by the transportation company directly and through their local inland agencies in Europe, and the companies must be aware that their own pecuniary interests, not less than the cause of humanity, will be best served this way." Attention is particularly called to the provision excluding persons likely to become public charges. Doubtful cases should be excluded, inasmuch as some steamship lines, in order to increase their carrying capacity, have recently disregarded the provisions of "the law requiring a certain allowance of cubic air space to each stoerage passenger. Notice is given that hereafter a more thorough inspection is to be made of all steamships and penalties for violations of this provision rigidly enforced. EMIGRANTS RETURNED. WASHINGTON, June 3.-Assistant Secretary Nettleton today directed the return to their countries of two Italians and one Swedish immigrant, who, since their arrival in January, have become paupers, and under the new law they can be returned at the expense of the company bringing them here. This is the first order of the kind issued by the treasury department and indicates the vigor with which the new law is to be enforced. PURCHASES OF SILVER. WASHINGTON, June 3.-The treasury department today purchased 320,000 ounces of silver at 94.2 to 97.9 per ounce. Offers of 944,000 ounces were made. THE KEYSTONE BOND FAILURE. WASHINGTON, June 3.-Referring to the criticisms of his bureau in connection with the Keystone bond failure of Philadelphia, Comptroller Lacey said, today, as a matter of fact, both the closing of the bond and appointment of a receiver were ordered by the comptroller against the wish of one who has sufficient interest to express his opinion; that there were many reasons why it was desirable to avoid a receivership, notably on account of its assets being so large in real estate, hence the comptroller deemed it his duty to aid in several hopeful attempts made to reopen the bank by contributions of new capital, under new management. As a matter of fact, it was officially reported to the comptroller that $300,000,000 of the new capital had been subscribed and that the Lucas estate was expected to make good all amounts due. Recent developments have shown these plans could not have been carried out, but they were sufficiently promising at the time to warrant the delay asked for. Similar measures, Lacey said, have caused the re-opening for business within the past six months of at least four national banks whose capital became impaired and two more will open soon. A TWELVE INCH GUN. WASHINGTON, June 3. The first twelve-inch gun ever made in the United States has been completed at Watervliet and shipped to Sandy Hook proving ground for testing. NEWS OF AN EXPLOSION. WASHINGTON, June 3.-News was received at the Navy Department today that an explosion occured yesterday on the new cruiser "Concord," which was on the way to Norfolk. The steam pipes burst, causing the death of the fireman and coalheaver.

7. June 4, 1891 The Western Sentinel Winston-Salem, NC

Article from The Western Sentinel, June 4, 1891

Click image to open full size in new tab

Article Text

Affairs of the Eroken Keystone Under Control. A Philadelphia special says: Receiver Yardley is progressing with his administration of the affairs of the Keystone Bank, although he has not as yet signed the receipt which will release Bank Examiner Drew from all further responsibility in commection with the bank. Receiver Yardley has forwarded to the Comptroller of the Currency a statement of the actual cash he found in the bank, which was $112,000, and forwarded him the amount.

8. June 5, 1891 The Morning Call San Francisco, CA

Article from The Morning Call, June 5, 1891

Click image to open full size in new tab

Article Text

# THE BANK FAILURES. The Comptroller of the Currency States His Opinion. WASHINGTON, June 4.-Referring to the criticisms of his bureau in connection with the Keystone Bank failure of Philadelphia, Comptroller Lacey said: "As a matter of fact, both the closing of the bank and the appointment of the receiver were or- dered by the Comptroller against the wish of all who had sufficient interest to express an opinion. There were many reasons why it was desirable to avoid a receivership, notably, on account of its assets being so largely in real estate. The Comptroller has deemed it his duty to aid in the several hopeful attempts that have been made to re- open the bank by contribution of new capital under new and competent management. As a matter of fact it was officially reported to the Comptroller that $300,000 of new capital had been subscribed and that the Lucas estate was expected to make good all the amounts due. Recent developments have shown that these plans could not have been carried out, but they were sufficiently promising at the time to warrant the delay asked for. Similar measures, Lacey said, have caused the reopening for business within the past six months of at least four national banks, whose capital had been impaired, and two more will open soon. # BARDSLEY'S STOCK OPERATIONS. PHILADELPHIA, June 4.-Before the in- vestigating committee Peter A. B. Widener emphatically denied that he had, as alleged, "unloaded" $400,000 worth of Chicago Trac- tion stock on ex-City Treasurer Bardsley. He never sold Bardsley stock of any kind. The Presidents of several national banks denied ever having paid Bardsley any monetary consideration for city money de- posited in their institutions. Mr. Huhn of the brokerage firm of Glen- dennin & Co. resumed testimony. He said in the course of a single year the firm's stock operations with Bardsley aggregated $1,250,000, and in the same time they bor- rowed $910,000 from Bardsley and loaned him $250,000. Confidential Clerk Bean of Glendennin & Co. was plied with questions as to how he came to go to Bardsley's to borrow money, etc., but to all questions he returned the stereotyped answer, "I don't remember." The report of the expert accountants who have been investigating the accounts of ex- City Treasurer Bardsley was transmitted to the City Council Committee this afternoon by Mayor Stuart. The report is a voluminous one and gives in detail Bardsley's accounts with various banks. The report shows that on the 21st of May, according to the books of the City Treasurer's office, there was on hand $32,317,608 belonging to the city. Of this amount the books of the City Treasurer show there was on deposit in the Keystone Bank $1,437,000. This sum is claimed by Receiver Hardy and Bank Examiner Drew to be wrong, and that the bank's books show the actual deposit to have been $639,- 369. Bardsley had been carrying as cash in the City Treasury $196,045 of worthless checks drawn on the Keystone Bank. In some way, not yet definitely known, he raised the amount in cash and substituted it for the checks. He then went to Bank Examiner Drew and asked that this amount be charged to his account as City Treasurer in the Keystone Bank and credited to his personal account. This Drew refused to do. The only specific evidence of any criminal act of Bardsley with the city's money is the appropriation of $39,576, for which he was indicted. The examination is still going on. # A DELIBERATE SWINDLE. ST. LOUIS, June 4.-A Guthrie (Oklahoma) dispatch says: The receiver of the Com- mercial Bank, which failed some months ago, has handed in his report to the court. It shows that the bank, from its inception, was run with the view to take in all it could in deposits and then fail. The defunct bank started in without a dollar, and there is no record that the organizers of the insti- tution or anybody else ever put in a dollar except the depositors.

9. June 12, 1891 Rock Island Daily Argus Rock Island, IL

Article from Rock Island Daily Argus, June 12, 1891

Click image to open full size in new tab

Article Text

THAT KEYSTONE BANK FAILURE. A Bank Examiner in Danger of the AxOfficial Correspondence. WASHINGTON CITY, June 12.-Bank Examiner Drew, of Philadelphia, has been suspended by Secretary Foster. He will doubtless be dismissed from office. A telegram from Philadelphia says that when Drew was told of his suspension, he said that he had previously requested of the partment a full investigation into his official conduct, feeling confident that it will result in his complete vindication. The President and Mayor. Correspondence has taken place between the president and mayor of Philadelphia relating to the failure. The mayor want ed hat Comptroller Lacey should go to Philadelphia and testify as to the action of the bank examiner and government officials at the time of the failure. He also wanted permission for acommittee of the Philadel phia council and expert,accountants to ex amine the documents, etc:, in the comp troller's office relating to the failure. The president writes to the mayor that this last request will be granted, with such reservations of confidence as the interests of the creditors or the ends of public justice may make necessary. Thinks It a Bad Precedent. With reference to Comptroller Lacey going to Philadelphia to testify the president thinks it would be establishing a bad precedent, as congress is the only body authorized to investigate federal offices. Comptroller Lacey, however, has prepared a statement giving the whole connection of his office with the bank, and it will be forwarded to Philadelphia. This latter proposition was sent in the president's letter, and yesterday the mayor replied thanking the president for his courtesy in the matter. Lacey's document is long and exhaustive.

10. June 15, 1891 Rock Island Daily Argus Rock Island, IL

Article from Rock Island Daily Argus, June 15, 1891

Click image to open full size in new tab

Article Text

Lucas estate would pays him the amount his due: Would Have Nothing To Do with It. "I urged him to use his influ nce in aid of the efforts being made to reopen the bank. He promised to look into the matter the same night on his return to Philadelphia, and I telegraphed Mr. Drew to call upon him with a statement of the assets and liabilities of the bank, and to facilitate in every way possible his taking an active interest in the schemes for reorganization. I failed, however, in my attempt to enlist him in the enterprise, and so ended all communication between us on any subject connected with the bank affairs, excepting the receipt of the following telegrams, dated April 2, 1891; Ask for Twenty-Four Honrs. " 'Mr. Marsh, of the Keystone bank, came down last night to say that it was reported you intend to appoint a receiver of the Keystone bank unless something more definite was done to-day. I believe nothing would suffer from giving them twenty-four hours longer, at the end of which they may put on paper something more definite to be presented to yon. From what he says they are getting along pretty well in securing subscriptions to the new stock. I would recommend appointment of a receiver be deferred, say one day, until he has an opportunity to state something more definite. JOHN WANAMAKER.' Reflection on Examiner Drew. "In concluding the statement," Mr. Lacey says, "I deem it my duty to say that. in my opinion, the several reports made by the bank examiner did not re flect the true condition of the bank under consideration. The degree of blame, if any, which properly attaches to Mr. Drew is yet to be ascertained. Heis entitled by reason of his long and hitherto acceptable service to an impartial investigation and a fair hearing) He has recently been S0 fully employed, by reason of the failure of the Keystome and Spring Garden National banks, that It has yet been impracticable to give the matter the consideration its importance demands. In the meantime, however, be has been directed to suspend examination until the facts are submitt and a conclusion reached.'

11. June 19, 1891 Shenandoah Herald Woodstock, VA

Article from Shenandoah Herald, June 19, 1891

Click image to open full size in new tab

Article Text

THE NEWS EPITOMIZED. Eastern and Middle States. Ex-CITY TREASURER JOHN BARDSLEY, of Philadelphia, was brought up from Moyamensing Prison in the common van and placed in the dock where he pled guilty to the eventeen indictments found against him for appropriating State and city funds, THE Treasury Department has designated Charlotte, N. Y., as a quarantine station for the entry of cattle, sheep and ewine from Canada. THE Reformed Presbyterian Synod at Pittsburg, Penn., expelled five ministers for non-conformity with principles of the Church. THE Cambridge (Mass.) Aldermen have refused to grant licenses to druggists, and the sale of liquor is now absolutely prohibited in that city. CHRISTOPHER LITTLE, of Pottsville, a lawver and insurance agent, committed suicide at Mauch Chunk, Penn. BANK FXAMINER DREW, of Philadelphia, Fonn., has teen suspended by Secretary Fostet for his connection with the Keystone Pank failure. THE Massachusetts Legislature adjourned sine die. AT Randoiph, N. Y., a fast train struck a carriage containing Mrs. Dow, wife of exState Senator A. G. Dow, and Mrs. George Fox. Mrs. Dow was instantly killed and Mrs. Fox fatally injured. Mrs. Dow was about sixty-five years old. Mrs. Fox's husland was killed by a train about four years ago. SECRETARY PROCTOR delivered their diplomas to the sixty-four members of the graduating class at West Point (N. Y.) Military Academy. C. MASON MOODY, who has been Treasurer of Franklin County, Mass. for fifteen years, has confessed to having used $16,168 belonging to the county in his private business, H. H. YARD, of Philadelpbia, was arrested, charged with conspiracy with ex-City Treasurer Bardsley to defraud the city of Phila. delphia; another deficit of over $400,000 was discovered in Bardsley's accounts. The Snpreme Court has handed down a decision that W Redweod White, appointed City Treasurer by Governor Pattison, is the proper appointee to succeed Bardsley. Rich ard G. Oeilers, appointed by the City Counc1/, is ousted.

12. June 20, 1891 Perrysburg Journal Perrysburg, OH

Article from Perrysburg Journal, June 20, 1891

Click image to open full size in new tab

Article Text

LACEY'S STATEMENT Regarding the Course Pursued by Him with the Keystone Bank. Bank Examiner Drew's Conduct Explained and Commented Upon-Mr. Wanamaker Failed to Effect a Recognition of the Bank Although Very Anxious to Do So. WASHINGTON June 15.-The statement by Comptroller Lacey to Mayor Stuart of on the course pursued and sent prepared by him Philadel- with the bank of that was here last night. made phia Keystone public The Bank city state- Exincluded the letter of Drew of January 28 the aminer him ment of $600,000 defalcation notifying of In Lucas, this president of the bank. Mr. Drew explains how the letter late by of adroit the manipulation of the accounts of bank Lucas, with the assistance Marsh, the former cashier of the bank, abstracted large sums of money from real the bank to use in speculations in estate. Marsh, he reported, was ignorantly led into these transactions and promised Lucas when the latter was on his death-bed to continue the deception under representations that the money abstracted would soon be returned to bank from the result of Lucas' enterprises. the Drew also reported that there was no evidence that Marsh had profited by these irregularities. Later on January 27, Mr. Drew, Wash- in an with the comptroller at and interview stated that in his judgment house ington, the opinion of the clearing to committee, in the property conveyed bank by the Lucas estate was equal had the value to the indebtedness which event in concealed, and that in any entirely been creditors of the bank were connecthe also, that to sever Marsh's suspicsafe; with the bank would excite retion and that Marsh was thoroughly earnest ion, and was actuated by an assist pentent to do all in his power to which desire bank in recovering any sums it. Mr. the been improperly taken from the bank had says he did not close had no lawLacey for the reason that he the facts then authority to do SO upon reason ful submitted, and for the further bank examadvised by the the bank iner, that he Drew, was that the capital of was unimpaired and later reports from Bank Further Drew convinced the comptrol- were Examiner the board of directors satisfacler that putting matters in a he levied slow condition, in so on March 7th the tory of $250,000 upon the coman (assessment on the promise of that the mittee of be paid shareholders directors of the bank within a assessment would Drew comOn March 14th Mr. from the week. of little active support re-habitate the plained in the effort to on directors reached the comptroller closed the the bank. 16th This and three days later he bank. comptroller states never that Postmas- directly The General Wanamaker solicited any ter indirectly suggested the or bank, nor in or delay in the closing of of a receiver, except hereinafter the appointment by the telegram met him but as appears In fact. I have and that quoted. during the present year, day of March once was on the 21st the presence of meeting suggestion and in then acting secat the A. B. Nettleton, This interview Hon. of the treasury. Keystone bank was was retary the closed day and after the the failure was the fully indiscussed. substantially confirmed Mr. Marsh, he held as a "He I received from certifibank and in the them and cates formation stock said representing that Keystone about surrender 2,500,000 pledge shares that un- the of had declined to would pay him his of the he the Lucas estate urged him to use being his influence in, the bank. the He same night less amount made to reopen due. the aid matter I efforts promised I failed, in to enlist him to look his return into attempt Philadelphia. to commuon in my ended all however. and SO subject between bank's affairs, with the following: nication nected the enterprise, the of us on except- coning the receipt DEPARTMENT POST OFFICE OF ASHINGTON. April Mr. Marsh WASHIN Comptroller night to of HON the Keystone reported you you bank unless I believe someE. was S. LACEY, bank Keystone came down intend last to appoint say that for the done to day. them twenty thing a suffer from the end of more detithey presented a'on. nothing four receiver hours may would put longer. definite on paper at was to something you. giving well From which in would what securing time re he commend day. nite they to be are getting new stock desays subscriptions appo 10 n the ment until of he has ferred. to state say. something one more statement." Nir "In concluding **I deem the it my several duty reports to say Lacey says, opinion, the did not retrue The made that, in by my the bank condition examiner of degree the bank of flect the consideration. which properly ascertained. attaches if any, to be he has the under to blame, Mr. Drew, yet ho wever, examinationlusion until been reached." directed In the facts meantime, to are suspend submitted and a

13. June 23, 1891 The Salt Lake Herald Salt Lake City, UT

Article from The Salt Lake Herald, June 23, 1891

Click image to open full size in new tab

Article Text

THE KEYSTONE BANK The Correspondence Between Lacey and Drew. AN APOLOGY FOR MR. MARSH By the Examiner, Who Afterwards Changed His Mind-The Comptroller's Queer Confidential Telegram. PHILADELPAIA, June22.-The official copy of all the correspondence between Comptroller Lacey, Bank Examiner Drew and othrs with reference to the affairs of the Keystcne bank, which was received from treasury department last week, was made public to night. It is very volumnous and much of it has already been published in connection with the investigation. In a letter from Drew to Lacey he gives the result of his examination of Jan. 9, when he was informed of President Lucas' $600,000 deficit and gives in detail the measures he took to recover from Lucas' estate. He says Marsh was ignorantly led into these transactions while Cashier by Lucas and the other on his death bed 1 exacted a promise from Marsh to continue the deception under representations that the money abstracted would soon be returned from Lucas' enterprises. Following this at frequent intervals were letters and telegrams in reference to the condition of the bank and reorganization efforts. On February 16 Drew's mind was evidently changing in regard to Marsh for he reported that developments made him suspicious of that gentleman. February 28 Comptroller Lacey wrote Drew urging prompt measures to rehabi1 tate the bank and saying unless some other way was found at once he would order an assessment of the stock. After the assessment had been made there were many t other communications and finally, March 8 19, the comptroller telegraphed Drew to visit the bank in the morning. Next morning he received instructions to close it. On the same day Drew telegraphed the comptroller urging the appointment of a re] ceiver without delayand suggested the name t Mr. Lynch. He added there were strong probabilities the bank would be re-organized by wealthy men. The same day Comptroller Lacey sent Drew the following telegram marked contidential: "Call at southwest corner Eighteenth and Sprucestreets. 1 8 o'clock this evening and give Mr. W. Close estimate of the assets and liabilities. Encourage all efforts to re-open the bank a and give out no information except such as 1 will conduce to that end, and then with S great care." h March 22 Drew wrote & orivate letter to 2 Lacey, advising that no action be taken against Marsh, as his services were indispensible toward the investigation. Previous to Marsh's arrest numerous letters passed in regard to reorganization.

14. June 26, 1891 The Columbian Bloomsburg, PA

Article from The Columbian, June 26, 1891

Click image to open full size in new tab

Article Text

Marsh is Still Missing. HUNDREDS OF MEN SCOURING THE WOODS AND SWAMPS TO FIND HIM. PHILADELPHIA, June 22.-District Attorney Graham returned from Spring Lake this morning, but would add very little to what is already known of the alleged presence of Marsh at that place, and the assault npon "Max Freeman," the mysterious Philadelphia detective. He, however, gave an encouraging report of "Freemans" condition, and said that it was now believed that he would recover from the effects of the terrible blow given him by his assailant. While it was at first feared that if the blow did not cause death the victim would lose the use of his lower limbs, his physician now thinks he will eventually recover. "Max Freeman" as the detective has chosen to be known, is one of the brightest and aplest of the Philadelphia newspaper men. His right name is Thomas Garside, and previous to his coming to this city and entering upon newspaper work he was, as Professor Garside, generally known as a labor agitator, and had a reputation which extended over two continents. He is the Professor Garside who took charge of the Jewish cloakmakers' strike in New York, and whose exploits at that time the New York papers devoted colums to recounting. He has lectured extensively both in Europe and this country on social and economic questions, and has been for years high up in the labor organizations of this country. A little less than a year ago he came to this city, and took a position on the local staff of the Times, where he soon won recognition as a bright and capable reporter. That the man he was after at Spring Lake was Marsh there seems to be no doubt. Garside, during the Keystone bank run, was at work on the story, and met Marsh frequently. Since that time, through all the interesting developements, he has been at work on the case. With his knowledge of the inside workings of the Keystone bank he had but little trouble in tracing Marsh to Spring Lake, led to this conclusion by his knowledge of the intimacy between Yard and the fugitive bank president. Garside by his friends is known to be a man brave and fearless to a fault, and his rash attempt to arrest the man he believes to have been Marsh, practically unaided, causes no surprise. Mr. Graham had as long an interview with Garside as his condition would allow, and the injured man told all he knew. The district attorney learned enough at once to send to this city for detectives, and three of Chief Wood's men are now at Spring Lake searching for the men who were at the lonely cottage at Como and from one of whom Garside received his injuries. One of these men the authorities are convinced is Marsh. Garside caught a glimpse of him as he was disappearing in the darkness, and is confident it was Marsh. It is now thought that Marsh has taken to the swamps or woods, and hundreds of men are scouring the country in search of him.

15. July 7, 1891 Idaho Semi-Weekly World Idaho City, ID

Article from Idaho Semi-Weekly World, July 7, 1891

Click image to open full size in new tab

Article Text

EASTERN ITEMS | A New Explosive to Tested by Experts. REV. SAM SMALL DROPPE An Attempt to Amend the Compuls Education Bill of Illinois Has Failed. The Odd Fellows are to build a $1 000 temple at Chicago. The anti-trust law in Iowa proves be inadequate to accomplish the I pose desired. Ordnance experts are to test a I explosive manufactured in Virginia called Americanite. Milwaukee liquor dealers are to bt a distillery of their own, so as to be from whisky-trust exactions. H. C. Bile of Los Angeles has 1 engaged as Professor of Greek at Bl: burn University, located at Carlinv III. Bank Examiner Drew at Philadelp has been suspended pending a comp investigation of the matters now un inquiry. Armour, Morris and Swift are to tablish stock yards at Tolleston, I where their packing houses are to be tablished. The World's Fair Association of C mercial Travelers has been formed Chicago. Foreign drummers will asked to join. The appropriation for completing work of the last census is running and an army of clerks will be dismis delaying the work. The whole audience at the Prine commencement cheered Dr. McCosl he entered the church where the e cises were being held. One of the railway tunnels under Hudson, connecting New York city the Jersey shore at Hoboken, will finished in about six months. Comptroller of the Currency Lacey made his report relative to the dow) of the Keystone Bank of Philadelp It contains about 9,000 words. Crowds are still calling upon the p physician, Rev. Father Mollinger Pittsburg. No cures of a miraculous ture have been reported lately. It is now announced that the Kentu

16. July 11, 1891 The Times Richmond, VA

Click image to open full size in new tab

Article Text

WANAMAKER'S WAIL OF WOE. Bardsley Preferes a Serious Charge Against the Political Saint. AND HE BOLDLY PLEADS NOT GUILTY. Interesting Developments Before the Investigating Committee Regarding That Keystone Bank Affair. PHILADELPHIA, PA., July 10.-The Bardsley investigating committee held another session this afternoon, at which Postmaster-General Wansmaker attended and testified concerning his transaction with the Keystone bank and the statement. made by ex-City Treasurer John Bardsley to Editor McWade, of the Ledger. which was for the first time made public. It proved to be an interview between MeWade And Bardsley on two liferent occasions at the prison. In regard to John Wanamaker, Bardsley said that Marsh told him that he knowingly held over-issued shares of bank stock and demanded $100,000 for them. and upset the plans for reorganizing the bank. WANAMAKER GUILTY OF A CRIME. Bardsley then said that he advised Marsh to engage counsel and make a demand on Wanamaker for the overi-ssued shares, as he was guilty of a crime in holding them. Marsh's lawyers notified Mr. Wanamaker that if the fraudulent shares were not delivered to them by a specified date, they would resort to legal measures to get them. The shares were then turned over without delay. Wanamaker had made a threat that he would see Comptroller Lacey in Washington, and have the bank closed before they expected it. "In March, 1890," said Pardsley, "Marsh came to me and said Watamaker wanted $200,000 at once. Marsh told him that he did not have that amount on hand, and Wanamaker told him where he could get it. "Two days later Marsh came to me. saying that Wahamaker was persistent and must have the money. I loaned him the money and Wanamaker got it." Bardsley also talked a great deal about his connection in the past with several prominent Philadelphians and blamed them for the stand they had taken against him. WANAMAKER AGAIN DENIES THE CHARGE. Postmaster-General Wanamaker who had entered the room while Bardsley's statement was being read, then stepped forward and requested that he be allowed to testify. He stated that he never pledged the over-issued stock after he was told that it was an over issue, and it was out of his hands at the time. As to the story told by Bardsley to McWade that he had threatened to close the bank unless he was paid for the over-issued stock and that lawyers Sulzberger and Johnston had forced him to return it, Mr. Wanamaker said, was abs lutely false. Bardsley's statement that Marsh obtained from him $200,000 for Wanamaker, in March. 1890, he said, was abs lutely untrue and without the slightest foundati n. and invited the committee to inspect his b oks. In closing his testimony Mr Wanamaker read letters from Comptroller Lacey and Assistant-Secretary Netiletonto sh W that he had never influ need or delayed the appointment for an instant of a receiver for the Keystone Bank.

17. July 11, 1891 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, July 11, 1891

Click image to open full size in new tab

Article Text

Hugh Mullen, Bardsley said: "The mayer wanted Richard J. Lennon appointed to the same place. Afterwards Bardsley learned that Matt Quay was pushing Albert H. Crawford for the place, and [Crawford was the auditorgeneral's man for the place. Martin and Porter and all of Quay's people were working for Crawford, and the result was that overtures were made to Singerly to draw Lennon out of the fight. He was promised that if Lennon was taken out $100,000 of state money would be placed on deposit in the Chestnut Street bank. "This was done. Lennon was taken out of the fight and the $100,000 is in the bank now. Crawford got the place, and Mayor Fitler got angry at what he claimed to be a broken promise." Bardsley then paid Hugh Mullen $500 to redeem the promise to the mayor. H. H. Yard, he said, got a great deal of the Keystoue bank money. He was in the pool with Lucas and Marsh, and Marsh allowed him to overdraw his account $90,000, even when the run on the bank was going on. Widener and Elkins, the traction magnates, he said, never sold him any traction stock or had any dealings whatever with him. McWade also asked Bardsley if Judge Wilson had ever borrowed money from him as city treasurer. He said no: and on being asked what judges had borrowed money, he answered in a whisper, Finletter and Ashman. The money, he understood, was simply an advance on their salaries; they did not know whether he was lending the state moneys, city moneys, or his own money. The remainder of the statement was simply a long story of Bardsley's troubles given in his own words with numerous comments, all of which contained no new facts. H. H. Yard, who was then called, did not respond, and a communication was received from his counsel stating that his case had been appealed to the supreme court. The committee voted to instruct the city solicitor to take measures to compel Yard to obey the order of the lower court and appear before the committee.

18. July 13, 1891 Daily Kennebec Journal Augusta, ME

Article from Daily Kennebec Journal, July 13, 1891

Click image to open full size in new tab

Article Text

Drew's Resignation Received. WASHINGTON, July 12-Bank Exeminer Drew's resignation only reached Comp. troller Lucey Saturday. The comptroller already has several applications for his place. He will not fill it immediately, however, Bank Examiners Shepard and Bette taking care of current work in Philadelphia backs. Comptroller Lacey has made an assessment of $500,000 on the shareholders of the Keyetone Bank. on account of their individual liability, being 100 per cent of the par value of the stock, payable Aug. 11, 1891, and has directed the receiver to take all necessary steps for its collection.

19. July 16, 1891 The Southern Argus Fort Scott, Baxter Springs, KS

Article from The Southern Argus, July 16, 1891

Click image to open full size in new tab

Article Text

After Singerly left I learned that Matt Quay was pushing Al Crawford for the place and that the auditor-general, who was Quay's man, would support Crawford. "Strong pressure was brought to bear on me by Quay and his men-Porter, Martin and others-but I held to my promise. Quay, however, 'pulled' Singerly and got him to withdraw Lennon, promising him to keep $100,000 of the state funds continuously in the Chestnut street national bank. Singerly came to me twice about it and got me to say that I would see that Quay's pledge was kept. I did so, and Singerly has the money there now. The Inquirer has been very wild and ridiculous in some of the charges it has made. Elverson has no reason to attack me or to allow me to be attacked in this way by his people. In fact, he has every reason to be the other way, and I could stop it if I send him the word. But I do not want to commit myself on paper. The conduct of that paper has been abominable, outrageous in its treatment of my poor wife. And did you notice that he demands that the investigation should go on. He is a pretty fellow to talk about reform. If a strict investigation should strike in his direction his record would astound the community. But look at Bill Singerly. As I said before, he should be in jail along side of me. There are more men than one who got money out of the treasury." H. H. Yard, Bardsley said, got a great deal out of the Keystone bank money. He was in the pool with Lucas and Marsh and Marsh allowed him to overdraw his account $90,000, even when the run on the bank was going on. Widener & Elkins, the traction magnates, he said, never sold him any traction stock or had any dealings with him. McWade also asked Bardsley if Judge Wilson had ever borrowed money from him as city treasurer. He said no; and on being asked what judges had borrowed money, he answered in a whisper "Finletter and Ashman." The money, he understood, was simply an advance and he did not know whether he was lending the state money, city money or his own. The remainder of the statement was simply a long story of Bardsley's troubles given in his own words with numerous comments, all of which contained no new facts.

20. July 23, 1891 The Seattle Post-Intelligencer Seattle, WA

Article from The Seattle Post-Intelligencer, July 23, 1891

Click image to open full size in new tab

Article Text

# BANKS ROBBED FROM WITHIN. The receiver of the Keystone bank of Philadelphia finds that the assets equal $1,726,511, of which $996,992 are of doubtful value and $153,912 worthless. On the other hand, the liabilities are $1,735,577, not including the due bills for Bardsley's alleged loan of $925,000 of public money-or $2,660,000 with those thrown in. In other words, the bank has been robbed of about $1,500,000, not by burglars from without, but by embezzlers from within. The worst of it is that these national bank frauds not only reveal the existence of extraordinary opportunities for theft, but they establish a still more ominous fact, the utter inefficiency of the only means which it is possible for the government to employ to check or prevent fraud when once the bank official proves to be a scoundrel. During the nine years ending with 1886 there were 55 separate cases of defalcations in national banks, amounting in all to $9,959,741, divided as follows among the responsible officials of the banks: Fourteen presidents, total embezzlement, $5,184,569, average for each individual, $370,326; 21 cashiers, total, $3,798,000, average, $180,857; 9 tellers, $462,000, average, $51,000, and 11 sundry officers, $515,172, average, $46,833. These figures represented direct frauds. Of the 27 national bank failures that took place during the four years following 1886, twelve were due to frauds by bank officials, while eleven were attributable to excessive loans to bank officers, two to bad management and two to decay of trade. The record of the current year will raise this startling average. While the average losses from national banks is very small, since only a fraction over three per cent. of the national banks organized since 1863 has been placed in the hands of receivers, nevertheless one is startled by the absolute ruin of nearly all the banks that have been victimized by fraudulent officials; by the impunity with which such frauds are committed, and the seeming difficulty of devising any means to prevent them. It is a noteworthy fact that some of the banks esteemed to be safest have proved to be the most rotten and corrupt in their management. The national bank exam- iner is seldom a person who is likely to discover defalcations which presidents and directors fail to trace. His official func- tions are to see that the bank was properly organized and administered; that no law had been violated in respect to loans, re- serves, investments, bad debts, dividends; and that the assets were really worth the amounts representing them on the books of the bank. He comes but once a year, stays but a single day, and of course can not be relied upon to discover thefts or false entries that have escaped detection by the directors, who are always present, and are naturally spurred to vigilance, since they are personally sure to be the sufferers if the bank's money is stolen. No mode of official examination by the federal official, under the present bank system, can be expected to be an effective substitute for the interested vigilance and personal accountability of the president and directors of the bank. The English banking system is superior to our own, because instead of maintaining thousands of small banks it permits the establishment of large banks radiating in all directions from a central office within a limit of 500 miles. Under this system the examination is efficient and continuous, being, so far as the branches are concerned, conducted by the bank

21. August 19, 1891 Waterbury Evening Democrat Waterbury, CT

Article from Waterbury Evening Democrat, August 19, 1891

Click image to open full size in new tab

Article Text

Eight Years for a Bank Wrecker. PHILADELPHIA, Aug. 19.-Charles Lawrence, ex-assistant cashier of the Keystone Bank, who pleaded guilty to the indictments found against him of complicity in wrecking the bank, was sentenced to eight years' imprisonment. The sentences of Francis W. Kennedy, president, and Henry H. Kennedy, cashier of the suspended Spring Garden Bank, were suspended until Sept. 8.

22. September 18, 1891 Alexandria Gazette Alexandria, VA

Article from Alexandria Gazette, September 18, 1891

Click image to open full size in new tab

Article Text

As SECRETARY FOSTER has from the first asserted that the Treasury has a large surplus, for the sake of his own reputation, as well as for that of Postmaster General Wanamaker, he should have prevented the suspension of the investigation of the affairs of the broken Keystone Bank of Philadelphia.

23. August 6, 1892 The Washington Bee Washington, DC

Article from The Washington Bee, August 6, 1892

Click image to open full size in new tab

Article Text

# Iron Hall In Trouble. The Order of the Iron Hall, apparently one of the most prosperous of the various mutual benefit orders in the West, with headquarters at Indianapolis, having a membership of about 70,000, is in trouble, and if the allegations made in a complaint asking for a receiver are true, its affairs are in a very bad mess. The gravest reports are current involving the funds which are or ought to be in the hands of the supreme officer. So far as they relate to the officers in general, the reports have been indignantly denied, but an adequate denial was wanting inasmuch as the reports relate more directly to Mr. Somerby, the supreme justice of the order, who has not been heard from. It is said that the funds of the order were depleted by the Keystone Bank failure in Philadelphia, and that subsequently Mr. Somerby and Mr. Hayes withdrew over half a million dollars from Indianapolis banks, and deposited it in a Philadelphia bank in which they are interested, and which is said to be sustained to some extent by funds of the order. It is certain that the balances at Indianapolis have been largely reduced. The other reports that the money went elsewhere to sustain interests that were not the Iron Hall's are not as yet established.

24. January 28, 1893 The Hood River Glacier Hood River, OR

Article from The Hood River Glacier, January 28, 1893

Click image to open full size in new tab

Article Text

BEYOND THE ROCKIES Important Patent Decision Made by the Supreme Court. WAR ON SWEATERS IN BOSTON. The Number of Victims That Judge Lynch Has Executed During the Past Year-Other News. The authorities of North Dakota propose to enforce the prohibition law. The Carnegie milla at Homestead, Pa., are running full in every department. The New York theater ladies have taken to removing their hats during the performance. The boys in the State Reform School at Topeka have just finished putting up 350 tons of ice. Dr. McGlynn says he never ridiculed the Pope, although charged wish the ecclesiastical offense, A combination of manufacturers of goods and cut nails 18 being formed by large Western firms. George G. Slosson has challenged anybody in the world to a match game of billiards for $1,000 it side. The principal operators of silver mines in Colorado have practically agreed to shut down until silver advances. New Orieans is finding much difficulty in enforcing the Sunday law, owing to the apathy of the police officials. The Carnegie Company was a great financial loser by the recent strike, and ) it is economizing in its management. Gidon Marsh, the fugitive P esident of the wrecked Keystone Bank of Phila a delphia, is said to be in South-Africa, In Boston the bosses and the clothing e cutters have joined hands to compel the sweaters to grant the demands of their workmen. I The Comanche, Kiowa and Apache n agreement for the cession of 2,500,000 acres of land has been sent to the Sen ate by the President. It The train bearing the old liberty bell to the World's Fair will run only by day, in order to give people along the j route a chance to see it if The industrial and financial conditions n in South Carolina are reported as gratiof lying because of the improvement in the agricultural interest. d It is reported that unless prompt measures of protection are adopted in the y natural-gas district of Indiana the supply will soon be exhausted. is Chairman Hood of the New York is Board of Assessment estimates that h fully $400,000,000 of personal property 9 in the State escaped taxation. Philadelphia is entitled to be known as the city of sisterly love. According e0 to a recent police census the city boasts of 23,000 more women than men. A New York letter to the Philadelphia d e Press intimates that Baby Ruth 18 to have a rival, and there will likely be birth at the White House this spring. al President Harrison has received a cane cmade from the wood of a house on Porto Santo, one of the Madera Islands, re which Christopher Columbus once lived, kCongressman Dalzell is going to make y another attempt to get through Congress he the bill providing for a survey for ship 05 canal to connect Lake Erie and the Ohio er river, It is estimated that Judge Lynch has executed during the past year 230 people-an increase over 1891 of forty one. His victims were 231 men and five is women. The railroad construction in the to United States during 1891 does not reac et. high figures, being only 4,000 miles The total was the smaliest since 1878 except those of 1884 and 1885. in Major General Schofield does no ed think the massing of troops at th World's Fair for display would prove he good idea or that it would give an nbeneficial return for the expense in m. volved. of The Cotton Bureau of the National 18, Alliance at Memphis, Tenn has issued us. an address to planters, advising th ngplanting of a less acreage to cotton on This season's crop is largely reduced not and the planters have got better price Michigan's war Governor, Austi till Blair, received a certified check fo nal $4,125 as Christmas gift from prom nent residents of that State. The ngGovernor is writing his recollections the war, and the money will be used im getting out the book. St. the In the case of the Dr. Briggs heres the case the New York Presbytery, without 35, expressing approval of the critical D theological views embodied in ns. Briggs' address, or of the manner the which they have been expressed at larillustrated, pronounces Briggs fully who quitted of the offenses alleged again in him. The Mutual Life Benefit Insuran d has Company of Hartford, Conn., has of cided to go out of business, and h lent made arrangements with the Nation aid, Mutual Insurance Company of Ne is it York to take : all its members who app for transfer. sig The Supreme Court has denied inmotion to advance the case of Merri few ex rel. VS. Charles Foster, Secretary t her the Treasury, popularly known as Ca the silver brick case. This is the ntly wherein the plaintiff sought to com rnal the Secretary to coin into dollars silv vitabrick offered at the mint for that p pose.