Keystone Bank (Philadelphia, PA)

Article Text

Run on the Keystone Bank

PHILADELPHIA, [Dec. 2. - The run on the Keystone Bank continues. All persons presenting checks for $100 or less are paid in currency, butany whose demandsexceed that amount are paid only $100 in cash and are given clearing house due billsfor the balance. These will be honored at any bank.

Article Text

The Keystone Bank

PHILADELPHIA, Dec. 2.-The run on the Keystone bank continued today. All persons presenting checks for $100 or less were paid in currency, but any whose demands exceed that amount are paid only $100 in cash and given clearing house due bills for the balance. These will be honored at any bank.

Article Text

A BUILDING ASSOOFATION GONE

The Totowa Order of Home Builders, a building and loan association of Paterson, N. J., has been compelled to suspend operations owing to the failure of the Keystone Bank of Philadelphia. The association kept all its funds in the latter institution. The president, W. B. Wood, and the treasurer, Gideon W. Marsh, of the Philadelphia bank, were directors in the Home Builders. The organization has 125 members, who are largely

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.

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

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.

Article Text

The Philadelphia Revelations.

The revelations in connection with the Keystone bank failure in Philadelphia are amazing. It now appears that the comptroller of the currency was aware of the insolvency of the bank for ninety days before its doors were closed, and yet permitted it to remain open and invite and receive the deposits of citizens who had no suspicion of its condition. The comptroller, it appears, knew of the fraudulent issue of the bank's stock by the president, Mr. MARSH, and his predecessor, and yet Mr. MARSH was allowed to remain at the head of the institution and draw his salary up to the moment of its suspension. In short, the government became a party to a wholesale confidence game. It was in collusion with a gigantic swindle which has brought ruin to a great number of innocent persons, wrecked many lives and reduced many well-to-do families to poverty. People who do business with a national bank depend upon the government to protect them. These banks are all under government supervision, and if that supervision is vigilant and honest, no bank can run such a career as the Keystone policy shop ran. The bank examiner, Mr. DREW, swears that President MARSH informed him of the overissue of Keystone bank stock (which was pledged with other banks as collateral for loans)

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.'

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.

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

Article Text

COGNIZANT OF CROOKEDNESS

Correspondence Not Creditable to the Comptroller of Currency. PHILADELPHIA, June 22.-An official copy of all the correspondence between Comptroller Lacey, Bank Examiner Drew and others, with reference to the affairs of the Keystone bank, which WaH received from the treasury department last week, was made public to-night. It is very voluminous. and much of it has already been published in connection with the investigation. A letter from Drew to Lacey gives the result of his examination of Jan. 9, when he as informed of President Lucas' $600,000 deficit, and gives in detail the measures he took to recover from the Lucas estate. He Bays Marsh was ignorantly led into these transactions, while cashier, by Lucas, and the latter on his death-bed exacted a promise from Marsh to continue the deception under representation that the money abstracted would BOON return from Lucas enterprises. Following this, at frequent intervals, were letters and telegrams in reference to the condition of the bank and the reorganization efforts. On Feb. 16 Drew's mind was evidently changing in regard to Marsh, for he reported that developments made him BUSDIcious of that gentleman. On February 28 Comptroller Lacey wrote Drew urging prompt measures to rehabilitate the bank. and Haying that unless some 8 other way was found at once be would order the assessment of stock. After the assessment had been made there were many other communications and finally, March e 19, the comptroller telegraphed Drew to visit the bank in the morning. Next morning he received instructions to close it. On the same day, t Drew telegraphed the comptroller urging n theappointment of a receiver without de8 lay and suggested the name of Mr. Lynch. He added that there were strong probabilities that the bank would be reorganized by e wealthy men. The same day Comptroller Lacey sent Drew the following telegram, a marked confidential: "Call at southeast corner Eighteenth and Spruce streets, 0 eight o'clock this evening, and give Mr. W. a close estimate of of assets and liabilities. Encourage all efforts to reopen the bank and give out no e information except such as will conduce to that end. and then with great care." March 25 Drew wrote a private letter to Lacey, advising that no action be taken against Marsh as his services were indispensable toward the investigation. Prea vious to Marsh's arrest a number of letters passed in regard to re-organization-

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.

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.

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.

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.

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.

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

Article Text

ALL PLEAD GUILTY

Philadelpbia's Spring Garden Bank Officers to be Sentenced This Afternoon. PHILADELPHIA, Aug. 18.-Judge Butler will pass sentence upon Francis W. Kennedy, president, and Henry H. Kennedy, cashier of the defunct Spring Garden, this afternoon. Both pleaded guilty to the bills of in. dictment found against them by the grand jury and both asked for & month's grace, Henry Kennedy's counsel pleading that his wife was about to become B mother and that he could assist the receiver in unravelling the accounts much better out of jail than if he were in it. Charles Lawrence, assistant cashier of the Keystone Bank, pleaded guilty to charges of assisting to wreck the institution and also made an appeal for delay, but it was refused.

Article Text

Eight Years for is 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.

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.

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.

Article Text

JOY IN THE QUAY CAMP.

The Outcome of the Libel Suit Pleases the Quaker City Leaders.

Senator Quay's witnesses, including his Beaver lawyers, registered at the Duquesne last evening. In the party were ex-State Chairman W. H. Andrews, David Martin, Charles A. Porter and Jacob Wildemore, Philadelphia; Robert M. Yardley, receiver for the Keystone Bank, James W. Latta, clerk of the Philadelphia Quarter Sessions, and Taylor Faunce, an expert accountant. Hamilton Disston, the Quaker City saw man, who likes to dabble in politics for recreation, arrived in the city on the limited, and will add his testimony to the others in the trial of the libel suit here to-day.

Mr. Andrews acted as spokesman for the crowd, and he had nothing to say. They had come to Pittsburg to rest for the night and appear at the trial this morning. Thev were all feeling good over the outcome of the suit at Beaver. Mr. Martin thought it strange that the Star should persist in its attacks up to the hour of the trial. Attorney Buchanan remarked that he had often advised the Senator to sue for libel before when some newspaper had jumped on him savagely. The Philadelphia politicians had little sympathy for the Star people. Senator Quay was expected here last evening, but won't be on hand until this morning.

The Philadelphia politicians have been pumped dry lately on politics. They are the people who turned down Harrison in the recent conduct for national delegates. They are Blaine men and expect to see the Secretary of State nominated for the Presidency.

Article Text

ORDER OF THE IRON HALL.

Members Ask that a Receiver Be Appointed.

A special telegram from Indianapolis to the Philadelphia Record says a receiver has been asked for the Order of the Iron Hall. This is an assessment insurance order, having a large membership through-out the country, and there are six branches of it in Richmond and one in Manchester.

The members asking for a receiver claim that the funds of the order were depleted by the failure of the Keystone Bank in Philadelphia, and that another Philadelphia bank is being sustained by the order. The supreme officers of the order claim that it is able to meet all obligations at maturity. Yesterday nothing was known by members of the order here about the application for a receiver.

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.