MASTER NEGATIVE NO. 95-82505 COPYRIGHT STATEMENT The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted materials including foreign works under certain conditions. In addition, the United States extends protection to foreign works by means of various international conventions, bilateral agreements, and proclamations. Under certain conditions specified in the law, libraries and archives are authorized to furnish a photocopy or other reproduction. One of these specified conditions is that the photocopy or reproduction is not to be "used for any purpose other than private study, scholarship, or research." If a user makes a request for, or later uses, a photocopy or reproduction for purposes in excess of "fair use," that user may be liable for copyright infringement. The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would involve violation of the copyright law. Author: U.S. Congress. House Title National banks, January 24, 1893 Place: [Washington, D.C Date: [18931 ^5'^25qS ' \ MASTER NEGATIVE # COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD U, '6. ConcrccG. House. Comittcc on l^an^rin^ and currency. I.'ational banlrc, January ?A, 189^- (;lleport on invor.ti;>ition oi cauLicc of failure of 'Icyntone and uprin- Garden national ban:::, Pliiladclphia, and Ilavcrick national ban]:, Boston. rV/abhinrton, 1893 -, 612 p. 2o en. (5M Con~rosr,, ?A scsa. Hounc. P.cport nc.23'1.';) Caption title. ^^llunnir.c title roads: Invos-I tication or national^ jbana. RESTRICTIONS ON USE: FILM SIZE: 2i'2iVY\m TECHNICAL MICROFORM DATA REDUCTION RATIO: Dx IMAGE PLACEMENT: lA (ua) IB IIB DATE FILMED: L-fo'^S INITIALS: Tb TRACKING # : At5*f 0(,€^3 FILMED BY PRESERVATION RESOURCES, BETHLEHEM, PA. tt> .'^.' ^ <^ 00 en Ol z 3 3 > Q) DO ABC bcdef a, O o m 4^a ciZ! ±.m CD O OQ^X 3 X 1— » 3" ^ 13 7- hO^:^^ §^ 0^:3 Z <2 ^5 O 5 ^ < :33 00^ -0 STUVW Z12345 RSTU stuvw a>x X < CXiM N < O X M e> nOO O .'V' :v>. ^^o9> ^. "5^ ^ "^^^."^V ^^^ c? ^>' >^ >' yv 8 o 3 3 > o 3 3 o o 3 3 o r^^^^^^^ % o CO o 00 b to to bo In 1.0 mm 1.5 mm 2.0 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghiiklmnopqrstuvwxy? 1234667890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyzl234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 2.5 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 .^^ ^^ j> &• ^o f* fp fo> V <<^^ ►.v-^ . '^ €> ^o ip fp ^fo^ m H O O ■o m Tj > C CO X TJ ^ m O m ^<-' i^' B. V «= r^ ^o ^f

CD CD CT ,;:?'0 ■^o zJ X 3i IJKLMN nopqrst IJKLMN nopqrst OPQRST uvwxyzl OPQR uvwxy f^c 1^ C/) ^5 Jrl-i ^■Si f^c cnx ^5 ^-< 00 INI S^ o X OOM 8 ^fo- 137^3 a Columbia (Mniftersiitp LIBRARY 1 School of Business I / TESTIMONY TAKEN BEFORE THE COMMITTEE ON BANKING AND CURRENCY, HOUSE OF REPRESENTATIVES. Committee on Banking and Currency, April 27, 1892, The Committee on Banking au national banks to be $8,448.13, and due to State banks and bankers, $1,320.41. Q. What is the total of assets and liabilities?— A. $538,751.73. Mr. Sperry. What is the difference in the date of these statements? The Chairman. One is June and the other is August; about two months. * Q. The item given in the examiner's report as to the value of the real estate is the value as it appears on the books of the bank, and not by appraisement of the examiner?— A. Yes, sir. Q. So that the effect is that any change which appears in this item be- tween the statement of the resources in general and the examiner's report represents the change made upon the books of the bank?— A. Yes, sir. It will be observed that in the examiner's report other real estate men- tioned among the resources is valued at $35,802.60, making all the real estate valued at $185,802.60, while the capital of the bank is only $2()0,000. The examiner says in reference to the real estate that these estimates were taken under the old regime. The president agreed that tliese as well as the mortgages should be disposed of within six months. Ihe Comptroller evidently made an agreement that the real-estate account should be reduced. co?o.^^\S^?,«*^ ^'* ^*^"* in the report of resources, - other real estate, !r>?'!l^\^^^--^- '^Otlier real estate" in this report is stated to be By the Chairman : Q. Another item is, " mortgages on real estate, $38,827.50." Is there any such item in the examiner's report ?— A. It shows the item of other leai estate, stocks, bonds, mortgages, to the amount of $26,327.50. II 4 INVESTIGATION OF NATIONAL BANKS. Q. Who was the examiner?— A. W. P. Drew. Q. This same man continued to examine this bank!— A. Yes, sir until it was finally closed. (The exhibits referred to by Mr. Lacey were presented by him to be inserted in the evidence, and are marked Ex- hibits A and B.) Exhibit A. Report of the condition of the Keystone Bank of Philadelphia, Pa., at the dose of basiucsif June 12th, 1875. RESOURCES. Loans and discounts . ^^1K Ano au Overdrafts ...'.; V.*.:*;.: 1 186 79 Due from banks and bankers in'«ft7'ii U.S. bonds ';;;.';;;;;;;. ■*- 50' ^-^J Premium on U. S. bonds q mn no Mortgages on real estate; 33 827 "V) mwrS^Tt^''**^''''*-^ *-:"/.:::::::;:::::: 90; 000:00 Utner real estat*^ ox S0'> fiO Insurance (perpetual) on banking bouse ."JS\ * 600 00 Susjx-nded notes (discounts) ok ooe'cn Profit and loss 'aZf^ Furniture ■.::::;;::;:::;:: ifmf> stationery ;;;; '?5ooo Current expenses " " 97 f- U.S. revenue stamps on liand 148 1*S Checks and other cash items .'.' j 4 2 lO^T Fractional currency (including nickels) .... l'97«ViM) Due from First Nat'l Hank, Phila.lcl].bia (subject to sight \\Y;\\'t) ^^^ ^y^si 88 Billsofother national banks ' To iq9 m Legal-tender notes. ^•^^:^::::::.:::::::::::::::. i^Z 488, 198. 45 LIAIilLITIES. Capital stock paid in 900 oq^ f\t\ inxeresi 97 79 Discount 'r-o'll Exchange **.".".'. .*.'.".*.'.".' 7 fIJ Individual deposits ...^ .Jj' gj Due to banks and bankers •' ^"-i^'.".: i.".'..."/.."**.'..'.".*. .*."'.; 1 221 88 488, 198. 45 Philad,, June 14, 1875. J. B. WiSWELL, Cash, INVESTIGATION OF NATIONAL BANKS. KX 111 BIT B. 5 [No. of bank, 2291.] Examiner's report of the condition of " The Keystone National Bank,'' located at Phila- delphia, in the count}/ of l*hHadelphia, State of Pennsylvania, at 9 o'clock a. m., Au(iuHt23;i875. 'iHOMAS Allman, President.] [J. B. WiswELL, Casliier. liesonrces. Dollars, i Liabilities. Dollars. jl k 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. Xote.s and bills di.scounted Overdrafts (22 a(-.) V. S. bonds to secure (Circulation., U.S. bonds to secure deposits - - . IT. S. bonds on band Otlier stocks, bonds, and mort- gages Diie from app'd reserve agents, viz : (None yet appointed) Due from other national banks Due from Static banks and bankers. Banking house $150, 000. 00 Other real estate 35, 802. 60 Furniture and fixtures 1, 003. 62 180,184.79 ; 1. 904.54 ij 2. 50,000.00 '■■. 3. 4. 5. 26,327.50 I 7. ■|i Capital stock paid in. . Surplus fund Di.scount Exchange Interest Premiums Profit and loss 11, 056. 03 $610. 42 21.32 229 01 200, 000. 00 49,660.11 !i 8. 2,020.49 Current expenses. Taxes paid 186, 806. 22 291. 17 Rent Circulation received . On hand and re- turned $ Xone. 11. 916. 78 128. 50 9. State bank circulation outsta nd- Preraiunis paid ! Perpcitual insurance j Checks and other cash items ; Exfh's for C. H., includ'g gold | checks j Hills of other national banks I Bills of State banks ' rra<;tional currency (includ'gnick-; els) , ' ; Specie, viz: i Coin $ : bold Treas'y notes : 8,762.50 1 1 600.00 |l 13,122.09 1! li 10. 11. mg M't'g on bank property Dividends unpaid Individual deposits, viz: Subject to check. $250, 947. 51 60,000.00 11, 365. 00 Demand certifs . Time certificates - Certified checks . Cashier's checks 5, 990. 00 I 12. 2,296.32 ii Legal-tender notes U. S. cert's of dep. for legal tend era ' Eedemntion fund with Treas. U. S. (Jsot yet remitted.) Cash short 6, 310. 00 13. 14. 15. 16. 17. United States deposits ! . Deposits of U. S. disbursing ofti- \ cers Due to national banks : Due to State banks and bankers. | Notes and bills re-discounted i. Bills payable i. Cash over ■ . 256, 937. 51 8, 448. 53 1, 320. 41 101.00 Total i 538,751.73 Total ; 538,751.73 Records: In good order; bills discounted found correct. Other books: Very well kept; individual ledger was balanced and found to be cor- rect; is in excellent hands; daily ^' statements " made. President: Owns 35 shares of stock; a retired gentleman devoting himself exclu- sively to bank. Cashier: Formerly in Girard National Bank; evidently a careful and laborious offi- cer; acts as paying teller. Directors: 7 owning 330 shares of stock; H. J. Crump has but 11 shares, par value. «+ T u ■ 1 °^^^^*^ meets semi weekly mainly in active business. JMo(!kholders: 120; certificates will be issued to alias soon as practicable; largest ** T ' ^^^^®- ^^'i^lJanis, a director, 100 shares. oihcc: Large banking house corner Juniper and Chestnut streets; well arranged: remainder ot building well rented for offices, etc. bale: Large safe^ vault by Evans & Watson ; good doors, good locks ; 244 safe-deposit boxes, watchman; burglar alarms. DIVIDENDS AND SURPLUS (SECTION 33). m!f«^f..!l^* dividend, May 1, 1873; amount, 3^ per ct. ; carried to surplus, $- UUia bank went into operation as a national bank August 1, 1875.) 6 INVESTIGATION OF NATIONAL BAXKS. LOANS AND DISCOVNTS. $165, 741. 69 On ]>ni)or witli two or more individual or firm names On ,sin<;le name i»ai)er (one person or firm) without other security On mortgagen and other real estate security On U. S. bonds payal)le on demand ! ]]] On other stocks, bonds, etc., payable on demand .......... All other loans (nine loans on collaterals, 13 notes) ''.'..... i4,443.i() Inclnded in the above are — , » Bad debts as defined in section 38 $ Other suspended and over8.— Revenue official examineracticable. Q. In this case how soon was it? — A. Twenty-three days. q! Would it be possible for a bank having received this certificate to continue as a State bank? Would it so continue indefinitely? — A. The law says it shall become a corporation under the national bank aet at the date of the execution of its organization certificate. By Mr. Dickerson : Q. That would dissolve it under its State charter? — A. That would be a legal question that I hardly would want to give an opinion upon. By Mr. Sperry: Q. You do not attach jurisdiction until you receive notice that the bank has commenced business as a national bank? — A. Yes, sirj that is the practice of the office. Q. You probably take some action to revoke a charter unless they notify you that they are ready to 'operate as a national bank? — A. There is no process by which the Comptroller can terminate the fran- chise of a bank except in case of the appointment of a receiver or a suit to vacate its charter under the law. By Mr. Walker : Q. The appointment of a receiver by whom? — A. By the Comptroller. In fact the appointment of a receiver does not terminate the franchise ; it can only be terminated by the expiration of the twenty years or by I)roceedings against the bank. By Mr. Dicker SON : Q. You have no statutory autliority to cancel your certificate? — A. No, sir. By the Chairman : Q. Under the prac^tice of your office, before the bank aetually com- mences business they have to make a preliminary statement? — A. It is the practice as soon as it is oi)en for work. Sometimes it will run thirty days. I want to correct the date of the issuance of the authority. It was July 30, instead of June 30. The certified copy of the certificate of authority was not before me. By Mr. Sperry : Q. I was wondering how it happened to run so long? — A. Sometimes they do not open for business for several months after they receive authority. By Mr. Cox : Q. When the application was made t^ convert it into a national bank was there anything presented to the office to show the condition of its assets?— A. The report of condition of June 12, 1875, seems to be the only evidence filed with the Comptroller as to its condition. Q. What is the amount of real estate as assets of the old State bank as reported?— A. The banking house property, $90,000; other real estate, $28,322.60; mortgages, $33,827.50. The Chairman. We have those details in the record now. (To the w^itness.) Please pass to the first increase of stock and give us the date of It.— A. The correspondence seems Xo have begun in November, 1885, looking to an increase of the capital iu the sum of $100,000. At that I 8 INA'KSTIGATION OF NATIONAL BANKS. th.ic tlic. iiKTcase (;..,ul(l be m,Mlc by tl... vot.. by llic dim tors of Hie asso,.,H !o„ The increase did „ot take i.la.-.. .u.tii about tl.e Ist of May. 1, when It was iiKTea.seJ-.i^»!:tgages?-A. Ko bonds, no mortgages, no real estate, and no banking-house property. ^ ' +».*«?''' T*"*'? ''"y explanation attached to the report in reference to S i rViort V.;t'fr*""*^ ''"■" '"j"^"'e *»'-"^l' ^hTclJ^^eSnde^e tween thrcomntmlw «^f A" accordance with an agreement made be- Z^tvZ^^tatflr^. i^^ president prior to the conversion of the co^^rtrint.'t^ht'*grlr!^^^^^^^^ ^"^'^ ^^'*' -*^^ ^'^-'^^ »>« By Mr. Walker: th?offlce*s*liS^ wh.T'is*!j''* ''•;• ""*'•"' '''^^'^ y'*'^ *"-^ Wanks printed in We^e^n. M fJii • ''°'' *™'" «"« exa"'i''ation to another ?-A. we Keep no blanks showing an exam ner's work Thev arc takou »n ba^lk^s^Xe^s. -^ ''"^''^'"'^ ^'^ ^''^^^^^ ^ *^^ attention of the Q. Of the Comptroller's office?— A. Yes, sir ^?. Do you have in your office a book or any form of record- for in can b^ referredt"l'7,r'"^ ea<3h one of the examinations, so thXt A "^^^^^Yf ®^ to— A. They are not so treated. fi.r^ ^* J'^* ""^^"^^^ **^'^"^ five to ten times as much work to treat SeZTen^^^^^^^ ^ '''''' ^^^"^ accordi^g^Ttt System l^have spoken of?-A. m, sir; your way would require much greater INVESTIGATION OF NATIONAL BANKS. 9 (). All yon would have to do, then, would be to enter tlie fio-ines? — A. it is not iinportniit to eal thin^- is to find what is on the ledgers, and the liabilities, and whether the resources are worth the book value. What you want to get at is the a« located and continued in the citv of Phila- fs?ount and^LlH^'^^'^.^'^t^"^' and State of Pennsylvania, where its operations of uiscount and deposit are to be carried on. ($20o'o00^'^^mrth^h\**'''''f of this association shall be two hundred thousand dollars itJMwT^SldTtVe'^^^^ Ck''^ ^"^^^^ ^*' ""''^ '''^ ^«^^- «^^^^ hoXs tWeormivlw/'./"^*^^ i"" order that the said Keystone Bank and the stock- noiaers thereof may avail themselves of the advantages of the aforesaid act, and that 10 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 11 t!. On: ia> H«ff.^i , i +r ^''''^ may be channred and converted into a national banking asso- ciation nnder the name and title of - The Keystone National Bank of Philadelphia " In witness whereof we have hereunto set onr hands, this twenty-fifth day of March eighteen hundred and seventy -live. "^ i»irtit.u, [SEAL.I JoHx C. Lucas. [SEAL.] H. J. Chump. [SEAL.] Wm. Armstrong, [seal.] Irvix H. Torrexce. C. M. Clingan. Thomas Lewis. Thomas Allmax. Chas. Williams. [seal.] [seal.] [seal.] [seal.] A. Karnes. Arthur, Robert Allen.F.B A llmau, Thomas Armstrong, William BugbeeCo., (1. W... Brintzenghoffer , Bartel8,tr:w Bum8,B.C Butler, Rebecca, Mrs Bewley.T.J Brenneman, B. F Beewer, John Buck, Daniel Bauer, F Crump, H, J Chamberlain, M Chapin, Geo. W Chapin, Sarah C Colket, Coffin Carson, R, I Cooper, W. F Clingan, Lewis & Co. Clingan, Dr. CM.... Craven, Jno.V Dixon, Thos.S Residence. Philadelphia. ...do No. shares. — do ...do ...do ...do.... — do — ■ ...do — do Lancaster I Philadelphia ...do , ...do ...do Donagliy, Walt Davi«lson. Dr. Sam'l . . Dixon, George B Damon, A. F Donnelly, V.P Edar,M Excelsior Div. No. 205, Sons of Tem- perance. First Nat. Bank, Cur- winsville. Field.s, Geo. F Freedly, Jno. K Fitzgerald, Thomas, Cot Ficken, Richard Folmer, Mrs. E. H Gillinger, Philip Gould &■ Fischer Gibson, C.E Gasslein, J. J Greer, Wm. R Graff,J.F Holden, Lentz «fe Sail ade. Howell, Zophar C . . . Howard, James Holden, Sarah E Holden, H.L Haines, G.B Hickman, M. B Hopkins, Edward . . . HoUtrook. Jno. O Hopkins, Mrs. M Johnson, Henry Jones, S KerIin,I.N Keeney, Thomas M . Kirbv.E.W Kirby,Mrs.E. W.... K:rise,P.N Lucas Bro Lewis, Thomas Lewis, Henry R Lyons, James H Landi8,P.K Milton, Pa Philad«^Iphia ...do ...do Columbia Philadelphia .-..do ■ * * ■ UtJ ■•.«•>•■««_• do do do ....do do Wiliianisport, Pa Philadelphia Philndelphia- ...do ...do New York Milton, Pa Philadelphia , --•do , Williani.si»ort, Pa Pliiladeli»hia , ...do WilliamM]>ort, I'a . Philadelphia do Wiliianisport, Pa . do Philadelphia AVest Clie.Hter, i'a Philadelphia do ...do Muncy. Pa Wiliianisport, Pa Media. Pa Philadelphia j ...do ! ...do I Lynchburg i Philadelphia ...do... I ...do ... ...do... ...do... Names. 20 Mellock,J.M 5 Meyers, George 10 Morgan, J ames 45 Murphy'sSon.s, W. F 20 Matthew.s, C. T 5 Matthews, C. T., Mrs 20 Mitchell, Thompson . 10 Milnor, Phoebe 40 Merriman, Hiram . . . 20 Mottatt.J.J 50 Munroe, D. S 20 Ma.hette, E.V 6 Murphy, William 10 Duke. 5 McCuue, Clement 50 McConnell,A 15 I MeSJiane, Manuel 20 i McMnllen, W^ 100 i Norton, CD 20 Obdyke,B.P 5 Omensetter, R. L 40 I Omensetter, A 60 ! (m',Geo. H. W 10 Otto, Jno. A 120 Pennell,W.H 25 Patton, .J ames 10 Paul, HenrvS 20 Riebel, JoHeph 30 Renninger, H. B :^0 Richie. K.L ;{0 I Reynolds, Joseph H., 10 cash. Stokes, Richard S . . . Stang, Peter Stradley, John Stearns, Mrs. Sarah C Steams, J. A Stearns, Delia E Stearns, Enuna A . . . Stearns, G. L. «fc O. R Sallade, E I Stewart, Mrs.Marv- E Spencer, Charles it . I Woo•-••>•..••• AVilliamsport, Pa . Pliiladelphia do do ...do 50 80 20 5 100 20 20 20 no 10 25 10 40 200 20 60 70 40 50 10 I 10 i 5| 50 I 10 10 10 5 20 5 25 30 10 100 20 AVilliamsport. Philadelphia. . — do ....do do do Williamsport, Pa . do do .-..do ....do do Philadelphia j East Lynn, Ct i Canton, Pa j Canton, Pa I Williamsport, Pa .' Philadelphia — do Pittsburg, Pa Philadelphia — do ...do ...do -do ...do — do Williamsport, Pa . Phila jnid convert said h.mk into a national banking ass<>ciation un0). Irvin H. Torrence, sixty-nine shares (69). Margaret R. Torrence, ten shares (10). Lucas & Brother, twenty-five sliares (25). B. F. Biennenian, fifty shares (50). C. Colket, one hundred shares (100). Clement McCiine, ten shares (10). (ieo. B. Dixon, twenty shares (20). T. N. Dixon and Geo. B. Dixon, executors and trustees estate Thos. S. Dixon, one hundred and twenty (120). James Tayl«)r, ten shares (10). Alex. McConnell, fifty shares (50). James H. Lyons, one hundred shares (100). Donashy & Walt, twenty-five shares (25). J«weph Butler,i)er R. T. Butler, forty shares (40). Horace F. Whitman, ten shares (10).' Z<»i»har C. Howell, two hundred shares (200). John A. Otto, ten shares (10). Charles E. Gibson, one hundred and ten shares (110). Huam L. Holden. seventy shares (70). Thoni])son Mitchell, ten shares (10). L. L. Stearns, ten shares (10). Sarah E. Holden, sixty shares (60). ('has, L. Stearns, G. L'. Stearns, one share (1). J. A. Stearns, one share (1) Sarah C. Stearns, thirty-two shares (32). Emma A. Stear^is, one'share (1). Delia E. Stesirns, one share (1). Holden, Lentz & Sallada, H. L. Holden, Geo. W. Lentz, J. Sallada, three hundred and twentv sliares (320). Hiram Men*i man, twenty shares (20). Sain'I Jones, ten shares (10). M. I'Mer, thirty shares (30). Wm. Weaver, twenty shares (20). Carroll E. Monroe, one share (1). John Pat ton, fifty shares (.50). Henry Johnson, fifty shares (50). original list of signatures. .J. B. WlSWELL, Cashier Keystone BTc. Articles of association. We, the undersigned, directors of the Keystone Bank of Philadelphia, having been authorized by the owners of two-thirds of the capital stock of said bank to change and convert the said bank into a national banking association, under and according to the provisions of the act of Congress entitled "An act to provide a national cur- rency, secured by a pledge of United States bonds, and to provide for the circulation and redemption thereof,'" approved .June 3, 1864, and of subsequent acts in addition to or amendatory thereof, and to exectite articles of association do hereby, in our own behalf andin behalf of the stockholders whom we represent, make and execute the following articles of association : 1st. The name and title of the association into which the said Keystone Bank of the city of Philadelphia is to be changed and converted shall be the Keystone Na- tional Bank of Philadelphia. 2d. The place where its banking house or office shall be located, and its operations of discount and deposit carried on and its general business conducted, shall be the city of Philadelphia, in the county of Philadelphia, and State of Pennsylvania. .3d. The board of directors shall consist of not less than five nor more than eleven (11) stockholders. The regular annual election of directors shall be held on the sec- ond Tuesday of January of each year; but if no election shall be held on that day it may be held on any other day, according to the provisions of the tenth section of the act ; and all elections shall be held according to such regulations as may be prescribed by the board of directors of the association not inconsistent with the provisions of tiie aforesaid act. 4th. The capital stock of this association shall be two hundred thousand dollars, to be divided into shares of lifty (50) dollars each; but the capital maybe increased, according to the provisions of the thirteenth section of the act, to any sum not ex- ceeding six hundred thousand dollars; and in case of the increase of the capital of the {issociation, each stockholder shall have the privilege of subscribing for such number of shares of the proposed increase of the capital stock as he may be entitled to according to the number of sluires owned by him before the stock is increased. 5th. The board of directors (a majority of whom shall be a quorum to do business) shall elect one of their number to be president of this association, who shall hold his office (unless he shall become disqualified, or be sooner removed by a two-thirds vote of all the members of the board) for the term for which he was elected a di- rector; and they shall have i)ower to elect a vice-president, who shall also be a mem- ber of the board of directors, and to elect or appoint a cashier and such other officers and clerks as may be required to transact the business of the association; to fix the salaries to be paid to them, and continue them in office or to dismiss them, as, in the opinion of a majority of the board, the interests of the association may demand. They shall also have power to define the duties of the officers and clerks of the association, to require bonds for them, and to fix the penalty thereof; to regulate the manner in which elections of directors shall be held, and to appoint judges of the elections ; to provide for an increase of the capital of the association, and to regulate the manner in which such increase shall be made ; and generally to do and perform all the acts that it may be legal for a board of directors to do under the act aforesaid ; and they shall also have the power to make all by-laws that it may be proper and convenient for them to make under said act for the general regulation of the business of the association and the entire manjigement and administration of its affairs: which by-laws may prohibit, if the directors shall so determine, the transfer of stock owned by any stockholder who may be liable to this association, either as principal debtor or otherwise, without the consent of the board. 6th. This association shall continue for the period of twenty years from the date of the organization certificate, unless sooner dissolved by the act of its stockholders owning at least two-thirds of its stock, who may dissolve and close up the associa- tion in such manner as they may deem to be for the interest of the stockholders aaid creditors of the association, but subject to the restrictions, requirements, and pro- visions of the act. 7th. These articles of association may be changed or amended at any time by stock- holders owning a majority of the stock of the association in any manner not incon- sistent with the provisions of the act, and the board of directors or any three stock- holders may call a meeting of the stockholders for this purpose. In witness whereof, we, the directors aforesaid, for ourselves as such directors and m behalf of the stockholders of the Keystone Bank, have hereunto set our hands, this twenty-third day of March, eighteen hundred and seventy-five. Thomas Lewis. TlI().MA!> AlJ-MAX. C'liAs. Williams. John C. Ltcas. H. J. CUUMP. Wm. Akmstroxg, 14 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 15 •:■,. i '.a: I certify the forcjroiiijr to be a true copy of the original articles of association of the Keystone National Bniik, and that such original is duly stamped with a — cent revenue stamp for each piece of ])aper on which it is contained. Dated Philadelphia, March 25th, 1875. TuoMAS Allman, . . J Fresidmt pro tern. [Dr. C. M. Clingan, pres't., Joseph B. Wiswell, cash'r.] Keystone Bank, 1326 and 1328 Chestnut Street, Philadelphia, Apl. 3, 1875. Hon^ble Jxo. Jay Knox, Compt. of the Cmrency, Washn. : Dear Sir : May I trouble you to send me a copy of the ^' Free Banking Law," to gether Avith the necessary blanks by which this bank may be converted into a Natl- We already have blanks sent us last year, but presume these will not do, or at least our board seem to have doubts thereupon. I am sorry thus to trouble you, but con- sider it best, as it may save annoyance hereafter. Very respectfully, J. B. WiswELL, Cash. Philada., No. 520 Walnut St., ^ , ^ April '27th, 1875. Thos. Allman, Esq., PrcH. Kejf stone BanV: My Dear Sir: Your favor of 24th inst., in which you inquire if the lcgislati(m r»f this State to facilitate the conversion of State banks into national banks is still in force, is received. In reply to yt)ur question, I have to say that the enabling statute of this State has been made perpetual by the 2nd sect, of the act of .July lOth, 1866, Pamp. Laws of 1867, page 1362. The original act of Augt. 22, 1864, P. L., 977, contained a provision that any bank intending to make a conversion shall notify the State treasurer of its election to do so on or before the 1st day of Jan'y next (1865), which, as a conse- quence, rendered the act of no avail after that date. By an act approved Feb'y 28th, 1865, P. L., p. 6, the time for such notification was extended to Jan'y 1st, 1866 and by the act of July 19th, 1866, above referred to, it was extended to Jan'v 1st' 1867. The second section of this act also made it unnecessary thereafter to "make supplements to the original act for the purpose of extending its existence by mak- ing the act perpetual in these words : '' If hereafter anv bank of this Commonwealth, at a general meeting of the stockholders hehl for that purpose, shall elect to sur- render its charter, to become an association for carrying on the business of banking under the laws of the United States, then all the privileges and immunities of the act to which this is a supplement shall be extended to it." Therefore, under this statute, you are able to complete the con version of your bank into a national bank when you have complied with the acts of Congress upon the subject. I am, very respectfully, yours, etc., M. Arnold. „ - , ,^ Philadelphia, May 6, 1874. Hon. John J. Knox, Comptroller of the Currency: Dear Sir: I hereby inclose an application for a national-bank charter under the national currency act. This application has not been forwarded (its date being Mar '^' Comptroller of the Curi-ency, Washington, D. C. : Dear Siu: I have the honor to acknowledge the receipt of vour favor of 2l«f i,i«f .J^\t ^'"''^'I'S «{/^*' ?>o»rd of directors, held this niorniug, your letter was received and the proyisos therein contained were unanimously accepted received 1 will he in Washington early next week with thehonds Very respectfully, your obdt. servt., Thomaj? Allman, Freat. No. 2291.] Treasury Department, UEEICE OF (:!OMPTK(>LLf:R OF THE CURRENCY, wi,« 1 X .. X Washington, Jubf 30th, 1875. Whereas by satisfactory evidence presented to the undersicri.ed it has been madA to appear that the Keystone National Bank of Philadelphi a" n the dtv o^Phfl^ delphia, m the county of Philadelphia, and State of PeXyvTnia has l^eLi d Iv organized under and according to the requirements of the ac^ of ConZ *' An act to provide a national currency secured by a pled-e of Unitrr^SAfw^^^^ and to provide for the cnrculation and 'redemptioif Thereof '\npprv^ June S^«^' and has complied with all the provisions of sLid act requked^^^^^ wUh before commencing the business of banking under said act : ^«n^l>li«^ with i£ =!^r^/^;^^^^;-^^^^ i« authoriz^/^ilrtii^:- ^^In testimony whereof, witness my hand and seal of oflire, this mh ilay of July. J NO. Jay Knox, Comptroller of the Currency. INTESTIGATION OF NATIONAL BANKS. 17 John C. Lucas, president; G. W, Marsh, cashier.J Keystone National Bank, 1326 ani» 1328 Chestnut St Hon. H. W. Cannon, Philadelphia, Nov. 5, 'l8S5. Comptroller of the Cnrrcncif: charter and what forms must be obselCd in so doTn-^ ^ ""^'' ""' lour answer will oblige, yours truly, ** * John C. Lucas, Prest. [John C. Lucas, president; G. W. Marsh, cashier.] Keystone National Bank, 1326 and 1328 Chestnut St., T>wAT» Rtt,. rkw- + 1. . Philadelphia, Mch 27, ^1886. t^^ZlTiim^C^ Department in November, 1885, it was the intention to increase tne capital $100,000. Subsequently it was determined to make the increase ^^imS Mav^ T^l tbe amount paid in four installments, the last of wh c^ viirbe dm'Z fl'^kTrL'm'itterbrr.*^^^ '^ ^"' ^^'^^"^^^^'^ *^^ ^'^^"^' ^^^"^^^ "" "llinVblank In makmg report on 1st inst., we supposed we slioidd include the amount of capi- tal then paid in, the $121,260.50 being amt. reed, on acct. of- the $200,000, new capital subscribed. *^ ,.i^>^^^y ^*i:im"nJJ\^ ^^^•!°''® 7'" ^! received, and we will ask authority to issue cer- tihcates lor $200,000 additional capital. If we are required to comply with any other form, we shaU b« pleased to do as in- structed by you. ^ Very respectfully, rr u \T n u ^^^' C. Lucas. Prest To Hon. V. P. Snyder, ' Acting Comptroller, WasUngton, D. G, [John C.Lucaa, president; G. W. Marsh, cashier.] Keystone National Bank, 1326 and 1328 Chestnut Street, Philadelphia, May 4, 1886. Dear Sir: I enclose, properly signed, etc., blank in regard to increase of capital. Very respectfully, * I'ivai. To Comptroller of the Currency, ^* ^' ^^^=' ^' Washington, D. C, 2291. Keystone National Bank of Philadelphia, To the Comptroller of the Currency, *^' ^^^' Washington, D. C: i>/V''i¥'r?'^'/J'"*'?^'^*^''**^® ^'^P^*^^ «*«^k of "Tlie Keystone National Bank of ir.,li!r TxJ* 1 f«uf '• "If *^«s«*l' pursuant to the articles of association of said bank, approved May 1,^1886 in the sum of two hundred thousand dollars, all of which has Irdi^^thousTuVcltr.^^^"-^^ ^^^^*^^ «^^^^ '' -^^ bank now amounts to four [Seal of bank.] • q^ ^ ^^^^^ ^^j^^ i>TATEOFFKNN'A, County of Philadelphia, ss: ^tl'f^'Ji>'J^f'''h cashier of ''The Keystone National Bank of Philadelphia," in the State of Penn'a, do solemnly swear that the foregoing certificate by me subscribed is G. W. Marsh, Cashier. Subscribed and sworn to before me, this 4th day of May, 1886. [Ofhcial seal of officer. J johk W. Barron, Notary Public, No, 2291. Treasury Department, Office of Comptroller of the Currency, WT,..« ^. ^^ . Washington, D. C, May 5, 1886. rci cv th^f f *f f^*^*P/y notice has been transmitted to the Comptroller of the Cur- Penn^ h « « l ^-^'^^^''^ stock of ''The Keystone National Bank of PhUadelphia,'' I aSanTe wffi,'?^''^^'^^.'^ *^^ "J"' ^^ *^** ^^nd^xtdi thousand dollars ($200,000), in ^h^wt^k amoi^nfnf ^''^r-'^''" ^^ ^^* ^^ Congress approved May 1, lg»6, and that ^tocHf Lid CV . 'f''^ '''^''T^ has been paid in, and that the paid-up capital ' ($400,W0) : amounts to the sum of four hundred thousand dollars I Ba^roVUnade7nYi« ''^^^^^^^ ^}^. *Hf "^?^*^^ "*^i^^ «^ "^he Keystone National liimdied f 1^ ., P 5 ^'/ ^f?I®^^^**' ^'^^ ^^^^ increased a« aforesaid in the sum of two •sai ba k t aTai^^^^^^ ($200,000) ; that said increase of capital has been paidinto I *-rf "^r cti^^^^^^^^ -^ *^^**^« -^-— o? capital [4 al ol^ComnZ^lr .^^'^""*« ^^^^^^ ^^ ^^^^^1 signature and seal of office. ^ ^aCI.J yf^ j^^ TRENHOLM, 3790 2 Comptroller. m 18 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 19 'iI'M:; i^ll 11 ■;'|lt; TESTIMONY OF ANDREW J. SARDEN. Andrew J. Sarden, sworn and examined. By the Chairman: Q. Where do you live?— A. In Pliihidelphia, at Kirkbridge, Brides bni'g. Q. What is your present occupation? — A. 1 am in the office of Boyd & Company. Q. In what capacity ? — A. Assistant bookkeeper and collector. Q. What is your age? — A. Twenty years. Q. Were you ever employed in tlie Keystone National Bank in any capacity? — A. Yes, sir; I was em])loyed in that bank seven years. Q. Diuing what time?— A. Fiom 18.S4 to 1891. Q. Were you there at the time of the closing of the bank? — ^A. Yes, sir; I was there when the bank closed. Q. In what capacity?— A. For the first live years I had the corre- spondence, and the last two years I was the individual bookkeeper. Q. You kept the individual ledger ?— A. I kept the individual ledger, the accounts under the letters of '^ A to G" of the names. Q. Of course you knew the officers of the bank? — A. I did. Q. And you knew what books the bank kept?— -A. I knew all those that came within my knowledge and observation. Q. The bank kept a general ledger? — A. Yes, sii*; I know there was a general ledger, but I knew nothing a])out it. Q. There was an individual ledger? — A. Yes, sir. Q. And this was kept in two or three forms? — A. It was kept in three different forms. Q. Then there were the books of the original entries kept by the tel- lers? — A. Yes; they had other books. We posted from the check and deposit slips, except the discounts and foreign collections, which were posted from the discount clerk's books. Q. Most of your work was done from the check and deposit ac counts? — A. Yes, sir. Q. Did you know of the existence of any books other than the reg:- ular books of the bank? — A. Ko; not in any particular direction. Q. Have you heard since the failure that there were a set of books in which false entries were made, intentionally or otherwise? — A. I knew before the bank closed that there were such books. Q. What was the character of the entries in them? — A. Mr. Law rence kept them and he put down the names and the amount, and in another part he had provided for increasing balances. He put them down likewise. Q. How were those amounts decreased on the ledger? — A. By rub bing them out or making false charges. Q. Were any of those entries made in the ledger of which you hnd charge? — ^A. Yes. Q. By whom? — A. According to the handwriting I believed they were made by Mr. Lawrence. Q. You did not make them? — A. No. Q. You have known of such entries being nmde? — A. Yes, sir; «»| number of them. Q. In whose handwriting were those entries? — A. in the hanu writing of Mr. Lawrence. Q. What is his name? — A. Charles Lawrence. Q. What was his relation to the bank? — A. He had charge of the cash book and the general ledger, and tor the last year or two he was assistant cashier. Q. Where is he now? — A. He is in Moyamensing Piison. Q. He was put on trial and convicted ? — A. Yes, sir. Q. Where were those books kept ? — ^A. I saw them by accident. That w as how I knew it. Q. You did not keep them yourself? — A. No, sir; he kept them in a drawer of his desk. Q. Did you see them long enough to see in whose handwriting they ^yere? — A. I saw him make one entry. It was the John Bardsley entry for $40,000 or $50,000. Mr. Marsh came to me and said that Mr. Drew was coming back; and Mr. Marsh asked if I could not come down, and if I would not rub out the balances, and I did* not say yes or no. He turned away and I went and told Mr. Lawrence about it and said that 1 would not do it. He said that he would, and he went back and made the entries " J. B. $40,000 or $50,000." Q. The memorandum I have is that the change was made from $94,000. — A. It was somewhere about $90,000. Q. That was a change of the ledger that diminished, apparently, the liability to Bardsley to that amount? — A. Yes, sir. Q. Do you know of any other instance w^here such a memorandum was made in this book ? — A. No, sir. Q. Did you ever see the books in Mr. Marshes i)ossession ? — A. I never did except one night. I was there one night a little late tixing up sonie of my work on which I was behind. They had e^terything closed up from the Chestnut street side. They were going over the accounts that night and I saw the books. They were getting leady to alter them, and I saw them, as he had a couple lying on the desk alongside of the ledger. Q. Can you state what date that was? — A. I have no idea. Q. How long was it before the bank broke? — A. I haven't any idea. It was shortly before I took the ledger, because I was going to make a trial balance and Mr. Marsh would not allow me to do so. By Mr. Walker : Q. Did you testify about this matter on the trial? — ^A. I was sub- poenaed, but I did not testify. Q. Were there others who testified to these same facts in that trial? — A. I do not think so. There was no trial, because he plead guilty. Q. He plead guilty in doing these things? — ^A. Yes, sir. By the Chairman : Q. Could you, by an examination of the individual ledger or ledgers, tell what entries had been made from time to time in Mr. Lawrence's handwriting, and would you be able upon inspection of those books to determine where they were falsified?— A. I think I could in most cases, for I am tamiliar with his handwriting. Q. You discovered the true balances after taking the ledger?— A. No, he did not alter them, only at two certain periods. Q. I understand you to say that shortly after you took the individual ledger you proposed to take off a trial balance and Mr. Marsh would not pernut ycm to do it. Did you learn that there w^ere forced balances on tnat book?— A. We all had a sort of general idea that things were wrong. ^^ By Mr. DiCKERSON: Q. You had inference, but no knowledge?— A. Yes, sir. M i 20 INVESTIGATION OF NATIONAL BANKS. UrSTESTIGATION OF NATIONAL BANKS. 21 Q. From the informatiou you had, you came to the conclusion things were wrong? — A. I suppose I could have found out. Mr. Walker. Ask him when he first communicated these facts to anyone. By the Chairman : Q. After that one time, had you discovered that Lawrence was the individual who was making changes in the balances on your book f — A. I suppovse when the examiner came in 1 did. Q. Mr. Walker desires to be informed as to when you first communi- cated these facts to anybody? — A. As soon as I found them out I told Mr. Lawrence about it, and he said it was all right. By Mr. Walker : Q. How long was it after you discovered these facts? — A. I suppose it was when the examiner came. Q. You must know somewhere approaching the time when you first discovered these facts. Was it three months or six months? — A. It was inside of six months. Q. Can you state the date any closer than that? — ^A. I do not know that I could. I have no recollection about it. Q. Would an examination of the books enable you to fix the time more accurately as to when you discovered it? — A. I guess I discovered whose handwriting it was previous to that time. Q. When did you discover that Lawrence's handwriting was in the balances? — A. I do not remember. I suppose that if I saw the books I could tell when Drew came to make the alterations. By Mr. Dickerson : Q. Did Lawrence make any entries in his own handwriting? — A. He made alterations. They were all starred, every one of them. By Mr. Walker : Q. By Lawieuce? — A. Yes, sir; the star is a double entry. There is first a debit and a credit, and a star was to enable him to tell them. By Mr. Cox : Q. Were you present when the examiner came, after you had discov- ered these false entries? — A. When? Q. When the examiner came to examine the bank? — A. I was always there. Q. What books did he use in making these examinations; the books on which false entries had been made? — A. He used the little pass book to put the amount down in. By the Chairman : Q. What books of the bank did he use? — A. The individual ledger. By Mr. Cox : Q. Were there false entries on that book? — A. Yes, sir. Q. Did the examiner ever inquire of you in legard to those entries? — A. No, sir. Q. Did you hear any inquiry made about that in anyway? — A. He did not examine the ledgers himself, but his assistants did. Mr. Tren- holni was there and his nephew, Mr. Drew, was there, and Mr. Jones. Q. VVlio made those examinations! — A, They all did, but at different periods; not at the same time. Q. Were you there when the last examination was made? — A. Yes, sir; I guess I was. For three months 1 was not there, and there was an examination made while I was absent. Q. Who made the last one? — ^A. Mr. Jones — I don't know his name. Q. Where is he? — A. In the Market Street National Bank of Phila- delphia. Q. And the examiner, in person, never made any examination, so far as you knew? — A. Not to my knowledge — I mean Mr. Drew. By the Chairman : Q. You never communicated any of these facts to the examiner or his assistants? — A. Never. B^ Mr. Dickerson : Q. Do you know whether anyone else did? — A. I do not know. Q. Did you ever hear any conversation about it ? — A. I only heard it afterwards when Lawrence made the confession. I didn't know any- thing about it before. Q. That was in November, 1891? — A. It was the 1st of December, 1890. Q. You don't know whether Mr. Drew knew anything about this? — A. I do not. Q. Did he ever ask for references to those star entries? — A. He never asked me. Q. He never asked you about any of the books in your custody? — A. He never did, but he had a personal account in my ledger. Q. Did they not come to you and ask you any questions about the books or yoiu" methods of keeping them ? — A. They took off a trial balance. Q. Did they notice the difference in the appearance of the books? — A. They never said anything to me if they did. Q. Did they have the books in their possession? — A. Yes, sir; they had to take the balance off my books. Q. Was there any effort made to make the handwriting appear like yours? — A. I discovered a case day before yesterday where he had made an alteration, and it was like mine. It was so much so that when I first saw it I thought it was mine. That shows he had copied my handwriting. Q. Could you distinguish them ordinarily ?— A. I think 1 could. His handwriting was somewhat peculiar. His is a sort of a jerky, heavy hand- writing; mine is not of the best, but it is light. I saw him make two false entries. Q. None of these bank ofiicials from the Comptroller's department, the United States examiners, ever asked you any questions about this? — A. No, sir. Q. You say that Mr. Drew had an account in the bank?— A. Yes, sir; he had a personal account in my ledger. Q. Was it ever overdrawn, to your knowledge ?— A. I think not. Q. Do you know what the items that went to make up the credit side were; whether they were cash or not?— A. I don't know what kind ol deposits he made — that is, whether they were checks or cash. I can't say. By Mr. Cox: Q.. What was the extent of that account; how large did it run? — A. It was not much more than $200. It was sraiill. i i] I i 00 :S' INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 23 :r r. I C^. You say you saw these books day beinre yesterday? — A. Yes, sir; I saw tbem down at tlie receiver's office. Mr. Me(iill showed them to rue. Bythe Ohaiuman: Q. Do I understand that you were sent there by Mi*. Volhiui, the ex- pert! — A. I was. Q. The receiver (hxliued to permit you to see them? — A. Mr. Brown dec^lined. Q. Who was he? — A. He was the expert on the books. Q. Was he from Washington? — A. I am not sure who employed liim; but I think the council committee employed him. He would not let me look at them. By Mr. Cox ; Q. Bo you know what amount of money the bank paid those ex- aminers? — A. I don-t know; I heard they got $100 from each bank for each examination. Q. One hundred dollars from each bank or for each examination? — A. Each examination. By the Chairman : Q. You testified to the sum of $50,000 in alterations. Did that re- duce the credit in favor of Bardsley upon the books of the bank that much? — A. It did; yes, sir. Q. So that the bank was that much less indebted to him, and the bank was the gainer and Bardsley the loser? — A. Yes, sir. Q. It just took $50,000 out of the credit of Bardsley's account? — ^A. Yes, sir. By Mr. Cox: Q. State also whether any of these gentlemen who you have said were assistant examiners, wliose names you have given, had any ac- counts in the bank ? — A. Yes, sir ; Mr. Trenholm had. Q. Was it an individual deposit? — A. Yes, sir. He is the only one. Q. His name was not in your ledger? — ^A. No; but I knew abcmt it. I took the bookkeeper's accounts. Q. What sort of iu^count was that? — A. It was very much overdrawn. Q. To what extent was it overdrawn? — A. It was overdrawn at least $5,000, if not more. Q. Was there any other of these gentlemen who had accx)unts there? — A. None besides Drew and Trenholm. By Mr. Dickerson : Q. Were they borrowers of the bank? — A. They were if their ac- counts were ovenlrawn. Q. Did they negotiate paper there? — A. Not that I know of. Q. Who is Treiiliolni ? — A. His father is in New Yoik somewhere. By Mr. Diokerson : Q. Do you know of anything else ab(mt the bank that was irregular? If so, state what you know about it and the general methods of the bank. — A. I don't know hardly how to answer that. By Mr. Cate : Q. He means, is there any other crookedness you know about, and if so we want you to state it. — A. Those are the only things that came under my eye. I knew from hearsay that the bank got a great deal oi money ttom Bardsley. By theCHAiK3iAN: O The accounts with Bardsley were regular deposit accounts ?— A. He iiad four accounts, the '^ Bradford Mills," "John Bardsley," "John Bardsley, special," and " John Bardsley & Co." Q. What was the "John Bardsley, special," account?— A. It was the highway account Q. What was the account of "John Bardsley?"— A. That was his personal account. , . ., , ,. » * Q. That was the account in which he kept the pubhc money?— A. Yes, sir; the John Bardsley account. Q. The "Bradford Mills" was a manufacturing concern of which Bardsleywastreasurer?— A. Yes, sir. o ^ « ^^ x Q. What was the other account?— A. "John Bardsley & Co." That was a very inactive one. Q. The active account was the John Bardsley account?— A. Yes, sir. Q. In addition to that, he furnished money to the bank which did not go into the account?— A. I don't know anything about that, except what I saw there. Q. You learned that he gave \h^ bank money and took due bills?— A. Yes, sir; he took due bills. Q. And this you did not have anything to do with?— A. I had charge of the certificates of deposit issued by the bank. There was a great deal of this business. Mr. Marsh would draw up certificates of deposit for large amounts and give them to certain parties, and from them we never got any money. He told me to post them up, and the parties got the money on them for which we never got any return. Q. Can you give the names of some of those gentlemen? — ^A. H. H. Yard, William Jackson, and one or two other parties who were em- ployed by him. By Mr. Cox : Q. I do not catch clearly about how they work this. — A. I don't know whether Marsh got the cash. It didn't come from the receiving teller. By Mr. DiOKEESON : . Q. They came to you in the regular way in the office? — ^A. They were regular certificates of deposit. They didn't come from the receiv- ing teller. Q. Ordinarily would they come through the receiving teller? — ^A. I never got tliem. By Mr. GATE : Q. The teller did not take your books to make up the balances? — A. No, sir; because those accounts didn't show on any book. By the Chairman : Q. Who was that teller? — A. Jefibrd and Nieman, and Hayes, son of the cashier, were paying tellers. By Mr. Dickerson : Q. Was there any temporary use of money to make up the amount of cash in any way that you know of? — A. I only heard of it. We borrowed from other banks. Q. Was there any record kept of that indebtedness? — A. We would give them our due bills. Q. The books would not have shown anything about that? — A, No, sir 5 the paying teller has charge of the due bills. I 'i ' 'j m 24 INVESTIGATION OF NATIONAL BANKS. Q. You would not be able to testify as to the amount of those ?— A. I would not. The due-bill matter is very much mixed up. By Mr. Townsend : Q. You say that the certificates of deposit were issued bv Marsh to Yard ?— A. Yes, sir. ^ By the ('hairman: Q. Were not these issued by Marsh?— A. Yes, sir. By Mr. Townsend : Q. The first seen of those wnu,mion of '' The Ketfstone National Bank, at Philad'aJ' in the State of Report of f1^'-^ond^u>n^ .^^ ^^l^n^^^ V^^^^^^^ ^^ ^^^^ ^^^ ^^^ ^^. ^^^^^^,. ,,^1. Db. . Resotirces. Dollars. 1. Loans and discount (see schedule) . 2. Overdrafts ; • - • - - - - - - • 3. U. S. bonds to secure circulation (par value) -.--•• — 4. U. S. bonds to secure deposits (par value) - ,--••• 5. U. S. bonds on hand (par value) including $ U. S. refunding certificates - 6. Other stocks, bonds, and mor^ gages (see schedule) 7. Due from approved reserve agents (in schedule) 8. Due from other national banks. . . 9. Due from State and private banks and bankers (see schedule) 10. Banking house $ 11. Other real estate $ 12. Furniture and fixtures $ 682, 722. 80 1, 494. 55 200,000.00 Liabilities. 13. Current expenses and taxes paid. . 14. Premium paid— On bonds for cir- culation. $ ; other premiums, 15. Checks and other cash items (see schedule) 16. Exchanges for clearinghouse 17. Bills of other banks 18. Fractional paper currency, nickels, and cents 19. Specie, viz : Gold coin $4,947.50 Silver coin 5,152.84 Gold certificates (sec. 2.'>J, Rev. Stat.) Silver certificates (act Feb. 28, 1878) 13, 857. 53 29, 933. 34 14, 216. 48 10. 000. 00 8, 601. 83 10, 884. 29 16, 568. 16 53, 079. 78 2, 150. 00 2L00 1 . Capital stock paid in Dollars. 200. 000. 00 2. Surplus fund T^ff US 3. Undivided profits 18, 609. 05 4. Circulating notes re- ceived from Comp- troller $ Less amount on hand and in Treasury for redemption $ State bank circulation outstand- inS 180, 000. 00 6. Dividends unpaid. 7. Individual deposits subject to check $634, 940. 35 8. Demand certificates of deposit $ 9. Time certificates of deposit $ 10. Certified checks $ 11. Cashier's checks out- standing $ 40,165.04 ^„ .,.,v.. -- 12. United States deposits 53^ 079. 78 ji 13. Deposits of U. S. disbursing ofli- cers 20. Legal-tender notes 21. U. S. certificates of deposit for legal-tender notes 22. Redemption fund with U. S. Treas- urer (not more than 5 per cent on circulation.) • 23. Due from U. S. Treasurer (other than 5 per cent redemption fund) 10, 100. 34 37, 565. 00 9, 000. 00 14. Due to other national banks 15. Due to State and private banks and bankers 16. Notes and bills rediscounted . . . 17. Bills payable 675, 105. 39 1, 319. 17 161. 19 Total 1,100,194.80 Total 1, 100, 104. 80 I, G. W. Marsh, cash, of " The Keystone Nati'l Bank, Philad'a, Pa.," do solemnly swear that the above statement is true, to the best of my knowledge and beliet. Correct. Attest; State of Pennsylvania, County of Philadelphia: Sworn to and subscribed before me this 10th day of October, 1881 r . _ -1 T * "! G. W. Marsh, Cashier. Wm. Abmstbonq, Jno. C. Lucas, Granville B. Haines, Directors. [seal.] James P. Kennedy, Notary Publie. ■ ij 'X\ 28 INVESTIGATION OF NATIONAL BANKS. SCHKDIILKS. Loans and discounts. Oh paper with two or more individual or firm names $612, 879. 69 On single-name paper (one person or firm) without other security $ On mortgages and other real-estate security $ Ou U. S. Donds (demand loans) $ All other stocks, loans, etc. (demand loans) $ All other loans $ 69,843.11 Included in the above are — Bad debts, as defined in section 5204, Rev. Stat $ Other suspended and overdue paper $ Liabilities of directors (iudividuai and firm) as payers * . $ 35, 422 682, 722. 80 Other atoeks, bonds, and mortgages. Due from approved reserve agents. Hanover National Bank, New York. $13,857.53 Due from State and private hanks and hankers. [Such items, only, as exceed one-tenth of the capital of this bank.] Cheeks and other cash items. Checks and drafts Internal-revenue stamps $16, 406. 78 161. 38 Average r^'serve and interest. — Average reserve for last 30 «iays (in bank and with reserve agents) was 20 per cent of deposits and bank balances. The higliest rati^^of interest allowed is 3 per cent. Q. Eecurring to the examination at the point where we were yester- day, you were asked to produce the report of the condition of tlie bank made about the time of the first increase, somewhere in the neighbor- hood of January, 1886, I think it is. — A. The first increase of capital was approved by the Comptroller May — . Q. Your testimony shows that your report was made in January, 1886, and the last report about the increase and report of the condition of the bank nearest to that date at the close of business was January 19, 1886. — A. Yes, sirj the next report of the examiners was July 27, 1886. That was after the first increase. INVESTIGATION OF NATIONAL. BANKS. 29 ^ m 1 ^ f>.o Tniinarv rcDort of 1886, please, and state whether there iX^^^^^'^^^oZtt^.t^^^^ Wnowalludetothe report '''^''\'^-rTtLTl7^^'^.^ ,,,^, „p,, tte report of the "TTTrnlo'^rre^o't'o^'M^^^^^ 1, showing the condition Do you Q. lurn to tne i^v^\^ ^.,i.„^.^ i' o„^. fnrm?— A. T»^o real estate ap- which^ou have?-A. The same item appears in the report of condition '''n ThV'exSuer's report also shows due from reserve agents Q. me exaniiucis icpuiu ,c„„„,, i cK^w«_A The renort shows <' due fi'om other banks," $47,031.07. . . Q. Due from State banks and bankers, $5,316.%.— A. This repoit '^ q""^ tSc tsin ^^^ on these cm-rent expenses, $3,140.91. This seems to be a report among the resources.-A. The current expenses and ^^^IlltTaTinc^^^^^^^^ t.he custom to show current ex penses, salaries, rent, stationery, fuel, lights, and other expenses as re- sources until the dividend period arrives, when they are charged to urofit and loss. That reduces the item on the other side. ^Tlstliere anything here which will enable y^u ^ tell whet^^^^^ dividend was declared between January and March, 188b f— A. A divi- dend of 3 per cent was declared on May 4, 1886. - ^.^^ fi^,^. Q. That was the first dividend in that year!— A. Yes, sir; the first dividend in that year. , . . , . O The undivided profits do not appear on this examiner's report, except as surplus!— A. Here is an item which makes up the undivided ^"^a^Discount, profit, and loss!— A. There is an item extended here, making the amount in the report of condition stated as undivided ^^Q. The two items of discount and profit and loss aggregate ^8,539.13 !— A The report of March 1, 1886, makes the undivided profit $14,548.bo. *Q. This statement reports due individuals on deposit and demand certificates $968,101.89. What is the item corresponding!— A. Ihe amount due as individual deposits, subject to check, is stated as $1,485,595.57. Teller's due bills are added to that amount m the sum of $54,847.14. The total charges aggregate $1,540,000. Q. Will you turn to the other side and state the amount ot notes and discounts!— A. It was 1,080,788.66 on March 1, 1886. There is an item, "due national banks," of $27,315.45. Q. The report of March 1 makes it $53,073.42.— A. Due State banks, $10 938 12. Q. Thereport of March 1 makes it $17,822.40. Q. Is this report which you have before you the last one that was made prior to the increase of the capital stock! — A. It is. Q. And this examination by the examiner, in January, was the last one!— A. It was the last one before the increase of capital. Q. Have you a report of the examiner which was made next after that! — ^A. The next examination was made July 27, 1886. ffmmim^Kma Wm 30 INVESTIGATION OF NATIONAL BANKS. Q. The increase of capital stock was in May? — A. It was May 4 or 5. Q. Will you take that and look at some figures ! What amount is actually paid in, according to the report? — A. $400,000. Q. What is the surplus as reported? — A. $70,000. Q. What are the undivided profits?— A. $18,6()7.11. Q. The circidation is reported here at $45,(X)0. — A. It is reported here at $45,000. Q. U. S. bonds to secure circulation is reported at $50,000. It is the same here on .July 27, 1886. What is the amount of notes and bills discounted ?— A. $l,29;i,433.60. Q. Overdrafts reported in January is $4,427.00. What is the amount due from reserve agents? — A. The amount due from reserve agents is stated on July 27, 1886, at $116,838.85. Q. The amount due from other national banks is how much? — A. $57,91^9.37. Q. The amount due from State banks and bankers is how much? — A. $15,303.36. Q. State the amount due from national banks, as set out in the fig- ures.— A. It is stated at $104,991.22. Q. And the amount due State banks and bankers? — A. $26,174.83. Q. To ask you the general question, can you see from that statement, in any way, what they did with the other $200,000?— A. The total foot- ing of the report of January 19, 1886, was $1,329,894.57. The report of the 27th of July, 1886, shows $1,794,952, showing an increase of some- thing over $400,000 between elanuary and July of that year. A large part of that increase appears in the items of lodns and discounts. Q. Compare it with the March statement, and you will find it is not as large as loans and discounts. — A. Loans and discounts on March 1 were $1,080,780.60; that is, on the 1st of July, and $1,292,432.62 in January, an increase of about $210,000. Q. At the same time the item from other banks and to other banks — those items off-setting each other — shows less due from them and more due to them. — A. The amount due from banks on July 27, 1886, Avas much larger than is shown by the report of condition on the 1st of March, 1886. Mr. Payson (attorney for Comptroller Lacey). • Please give the figures. The WITNESS. The amount due from reserve agents on March 1, 1886, is stated at $64,675.06; due from other national banks $47,031.70; show- ing the aggregate amcmnt from banks and bankers on the 1st of March, 1886, to be $134,055.27. The same item on Jul v 27, 1886, was $191,131.58, an excess on July 27, 1886, of about $56,000.*^ By the Chairman : Q. Take the other items, which are opposite items, and see how that comes out. — A. The amount due to banks and bankers was $70,895.80, and on July 27, 1886, it was $131,166.05, showing that the amount due to banks and bankers on July 27, 188(>, was in excess of that of March 1 about $()0,000. Of course the banks represented on one side are not the same banks as those represented upon the other side. The amount due from banks and bankers to the Keystone Bank would be from banks situated in reserve cities, like Boston and New York, and those due trom the Keystone Bank would be to interior correspondents who kept accounts in Philadelphia. By the Chairman : We will mark these exhibits C to P, and let them go in the record. INVESTIGATION OF NATIONAL BANKS. 31 Exhibit C. (Form 251.) [No. of bank .] * ^f n^ rnfidiiion of the Keystone National Bank. Located at FUladeU ^%X\l?c":L% ffmf^dTpZXte If Pennsylvania, at S o^clock, i>. m., January 19, 1886. John C Tatcas. PrMident. Resources. Gideon W. Mabsh, Cashier. Dollars. 1. Notes and bills discountetl 2. Overdrafts : • T I- " ' /■> o' v 3 U S.bond«t0 8ecurecircmation(..' o) 4 TI. S. bonds to secure deiMWils 5*. IT. S. bonds on hand .......-- 6 other stocks, bonds, and mortgages 7. Due from appv'd reserve ajreiits, viz : . Hanover ^ « * ^ o i> » L , . „., 4 00 Bank, N. Y $12,734.92 Tradesmen's National Bank.N.Y 54, 774. 2d 910,42(5. 4. 427. 50, ()0() ;J3 0(5 Liabilities. 8. 9. 10 Due from other national bank s (58) . Due from State banks and hank- ers (5) - j^,. Banking houses $ 11 . other real estate 12. Furnitme and fixtures. $10, 000. 00 13. Current expenses $3, 140. 91 14. Taxe* paid. - - 15. Premium.s paid * Exchanges 16. Checks and other cash items 17. Exch's for C. H., incl'dg gold ch ks 18. Bills of other national banks 19. Bills of State banks ...........--- 20. Eractional currency, incl d ni«kel8 21. Spec'ie, viz: Fractional silver $1, 21 5. 25 Silver dollars 40,242 Silver Tr'y cert's 3, 000 Gold coins 2,448..")0 Gold Tr'y cert's (57, 509. 17 51, 543. 45 5, 31(5. 90 10, 000 3, 140. 91 240. 23 7, 809. 97 70, 103. 81 13, 3(55 977. 93 9. 10. 11. Capital stock paid in Surplus fund zr^^'ka Discount $o> 201. 56 Exchange Interest Premiums ^ „«-, r-r Profit and loss <. 337. .>7 Dollars. 200, 000 70,000 Circulation received. . $45, 000 On hand and returned. . State bank circulation outstanding Dividends unpaid Individual deposits, viz: Subject t« check. . . -$956, 354. 79 Dt^mand certifs. . Time certificates Certified checks.. Cashiers' checks. 11, 747. 10 8, 539. 13 45,000 40, 905. 75 12. 13. 14. 15. 16. 17. United States deposits Deposits of XJ. S. disbuising otticer. Due to national banks (0) Due to State banks and bankers (5) Notes and bills rediscounted Bills payable Cash over 968, 101. 89 27. 315. 43 10, 938. 12 22. Legal-tender notes 2(», 878 23. XT. S. cert's of dep. for legal-tenders C5, 000 24. 5 p. c. Red'u fund with Treas. U. S. 2. 250 25. other funds with Treas., U. S Cash short Total .... 1,329,893.57 Total.. 1,329,834.57 Records: Complete— Bills discounted are correct. They are proved monthly. Other books: Well kept. 2 Individual ledgers (1360 %) balances every other month— $426.18 short older., bal., $1,962.66. . «-. , i- 4. i President: Manager and principal stockholder; owns l,0o4 shares ot stock- large owners of property at Spring Lake and Sea Girt, N. J. Vice Irest: It. 13. Haines; owns 791 shares of stock; a merchant. Cashier : An experienced officer, acts as paying teller. S. Mint. . T ,,- nr\n. Bank rents whole building for $9,400, subletting for 3,500; net rental $o,900. Safe: Have safes and safe dep. vaults; watchman; rents from boxes $300. IHVIDKNDS ON SURPLUS (^ECTION .5199 OK THE ItriVlSED STATl TICS OK TIU. U. S.). Date of last «Uvidend, November 3, 1885, amount $ 3 per cent. Carried to protitand loss $1,447.87 n I ;'„" ^^ INVESTIGATION OF NATIONAL BANKS. LOANS AND DISCOUNTS. On paper with two or more iudividiial or firm names (on demand $68 671 7«^ 7^0 «7« r.i mZl llS) rr.' /.""^P^^««" «^ «"") ^i*l^«"f' oth "sS (de- ^^' '^^' ^^ On mortgajje and oVher reil eVtatJ' 8ec">'i*y • - ^^^' ^^^' ^ On U. S. bonds payable on demand. . . On other stocks, bonds, etc., payable on demand'*"*.' w, ,yy, ,^, On time, secured by collaterals iV' aItV* IJL Included in the above are— ^** "'*• ^ Bad d^bts as defined in section 5204 of the Revised Statutes of the Other suspended and overd'ue* *p{Iper' *!]'.'.*.'"."/. 4.97 ...^ ,^ Liabilities of directors (individual aiii! firm) jw 'p*av;;'('l' b*orr"ow;r) ' ' I' im' m uTes of the uf S^'vlLf* prescribed by section'52oi o^' thi Revised Stat- "' '^^ ^ GENERAL REMARKS. Overdrafts, of these $1,409.16, are old and doubtful, and will be chai^ffed oft, the remainder are recent and good " _ «^«arfeea ^ " Past due papa-." "'i'aS;- good'" '""' '^"•"' "^^"^ "'^ '»"""8 this examination; re ^ZlZ\LZ^L^Ai^^''^r^^^' "°ff d-'ri^g' ihis" examination; ^^''''^^ '^ 1A vSf- . ^ ^*' ®^^' $1,000 like eventuall V k 01 o ko Due I880: 4 notes, small loss, if any " 5,81i.53 Due 1885 : Aug. and Sept. ^' John O'kourke '''endorsed '^Mi'chael O'Rourk;'-" "' ^' ^^ renewed during this examination intiiaeiu Kouike, Due 1885, July: - J. H. Haverly; '^ hopeful ! ;:::;: I'^m ^'J^iS^rKl^S^^^-''---^^ '^-^ Due 1885 : 4 notes recent and good ' ^^ .., .... .... ...... .. 878. 90 _ , ^ ^ $27,433.18 corrt^Tdenc:/'"'" "'""" "*"'''' """"-^'"S reserve agents, have been verified by No interest is paid on deposits. an'^at■;^t5fp„r„1•i:r?,^tr^^^^^ a ^^^i^^:^^'^'^ l:?n."±eut:t *^;;irt '^^ -> ^oT «■-**<• Cn^af^t^ritr ^<'- '--'^'^^ - ^- Hr'LiLrin^s'c"itra^drr.-„^ ei?y-?epu" d^fmmior^^^^ "*" ^''""'"^ (^ »"-->' « » ""•' """tr-tor i„ this W. P. DuEw, To the COMPTBOLLEK OF THE CURRENCY, Examiim. Wathinglon, D. C. IXVKSTIGATIOK OB' NATIONAL BANKS. 33 ExiiiiJiT D. Xo.olbauk, 2291. [Use tho bbmk lines if nej-essaiy, but do nut erase or change any of the printed itenifj-l Uemrt ofih coudition of The Ket/Htoiic Xational Bank, at PhiJod., in the State ofPenna., ■' "^ at the cloKe of business on the 1st day of March, 1886. Db. Cb. Kesourees. Dollars. Liabilities. 4. 5. 6. 8. 9. 10. 11. 12. 13. 14. Loans ami discounts (rtee schedule). I Overdraft."* :-•.•••'! U. S. biuids to 8wui-e circnlatuui i (par value) — iner cents, 3 per ] t-cnts U. S. bonds to secure depo.mt>* (i»ar value) - per cents r. S. bonds on hand (par value) — p«T cents Other st«Mk.>*, bonds, and ihort- •rajre^ (se«* schetlule) ,080.788.66 ^i 1. 121.38 2. 11 3. !i 50,000 Cai>ital .slock paid in... Surplus fund Undivided jirotits Due fromajiprovcd reserve agents (se^ scheduhO Due from other national banks Due fi-om Stat«»and private banks and bankers (see schedide) Ranking house $ Other real estate $ Furniture and lixture8.$10,00().00 ('unent expenses and taxespaid..^ Premium paid — on bonds f«»r cir- \ eolation $ : other pre- j miunis $ 64, (»7r». 06 47, 031. 07 22, 349. 14 10,000 7, 004. 89 Circulating notes re- ceived from Comp- troller $ Less amount on hand and in Ti-easury for redemption $ 15. 16. 17. 18. 19. 20. $12, 674 2, 980 51.38 2,000 Checks and other cash items (see schedule) , 3. 087. 56 Exehanges for clearing house ! 596, 714. 54 Bills of oiher banks Fractional i)aper-curreucv, nickels, and cents Trade dollars Specie, viz: Gk)ld coin $.35, 420 (lold Treasarv certiti- cates (sec. 254, Uev. Stat.) $ Gold Treasury certili- cates (8ec. 12, at;t of July 12,1882 $ Gold clearing-house cer titlcates Silver coin— dolls. 9,3(KJ. Fract'l. 3,374 Silver Treasury c<^rtiti ireetort. STATE OF Pennsylvania. County of Philadelphia: Sworn to and subscribtMl before me this ninth day of March, 1886. l=^EAL.] * JOHN W. Barron, .Votary PM6i» :J792 3 I I ■*•«■ »■" fl 34 INVESTIGATION OF NATIONAL BANKS. SCHEDULE. Loans and dinemints. i )ii papers with two or nioi-e imlivitlual or Ann names $981, 848. 66 On sin^leiiame paper («me perM«»n or firm) without otlier t*e«urity $ 62, 500. 00 Onmortpip^es and other real-estate se imj»er $ o, 84'j. 83 Liabilities of directors (individual iind lirni) as payers $ 12ilOo!oo • Other utockn, bondt, and mortgoAjiS. Ihiefrom approved reserve agenU. Tradesmen's National Bank Hanover National Bank $4:<, (565. 86 21. 009. 20 Ihiefrom State and private bankg and hankers. [Such items, only, as exceed one-tenth of the capital of this bank.] Checks and other cash items. Checks and drafts on banks, etc., in this city , Checks and drafts on other banks. . . Coupons $3,087.56 U. S. refundini; certificates... Average reserve and interest.— KverSiSi^ reserve for last 30 days (in bank and with i-eserve agents) was 28.08 per cent, of deposits and bank balances. The highest rate of interest paid by the bank is 3 i>er cent. INVESTIGATION OF NATIONAL BANKS. 3o Exhibit E. (Form 251.) [No. of bank 1. . . .t ../• ihj> omid'ition of ** The Kemtone National BanJCf" located at Phila- Gideon W. Maksh, Cashier. John C Licah, VivsiiUnt. llesoui-ces. Dollars. 1,292. 4.'{3.62 7 801. 07 1. Notes and bills discouulinl 2. Overdrafts -.-■•-;■•■* , 3. U. S. bonds to .secure circulation, (!{ 0„) - 00, iJUU 4. IT. Sl bonds to secure deposits . . . b. U.S. bonds on hand 6. Other stocks, bonds, and niort- gag«'8 Liahilities. 1. Capital stock paid in. 7. Due from api»d reserve agents, viz : Hanover Nat. Bank, Ts.Y $6,699.40 Tradesmen's Nat. Rank 110,139.39 ^^^^ 116,838.85 8. Due from other national banks (;») ---I 5<, 989.37 9. DiH> from State banks and bank ers (15) 10. Banking house $ 11. Other real estate VI. Fumitui-eand tixfrs... 10,0(W 2. Surjdus fund --- 3. Discount $13. 329. 45 4. Exchange 5. Interest 6. Premiums 7. Profit and loss 5, 277. 66 Dollars. 400,000 70,000 Kents from boxes 8. Circulation received. ..$45, 000 On hand and returned. . 9. cttate bank circulation outstand- ing 10. Dividends unpaid 15, 303. 36 I (*190, 131.58) 13. Cunent expenses. 14. Taxes paid 6, 048. 24 1 .'i. Interest Exchange l(i. Checks and other cash items 17. Exch'sfor C. II. includggoldch'ks 18. Bills of other national banks 19. Bills of State banks 20. Fractional currency, including nickels 21. Specie, viz: Fractional silver. . . $2, 260. 50 Silver dollars 37,185 Silver Tr'v cart's... 620 (\o\A coin 1,791 Gold Tr'y cert's.-.. 120 10,000 6, 048. 24 747. 12 191.14 8, 979. 95 53, 777. 10 16, 038 330.84 22. Legal-tender nott^s. 23. U. S. cert's of dep. for legal tendei's . 24. 5 p. c. re1VI1JKNI>8 AND .SUJiPI.US (SECTION 5199 OF THE REVISED STATUTES OF THE U. 8.). Da te of last flivitloml, May 4, 1886. Aiiiouiit $ 3 per ct. Carried to i»rotit and loss jt « r.jt «« LOAN'S AX1> DISCOUNTS. On paper with two or more individual or firm names (tl,.injuid-t22.r>60.;^)-${H>i> H6<) 17 On MiugJe-name paper (one person or lirm) without other security (demand $8.5,701.66) "_ $294 443. 15 On mortga«> es a nd other real-estate security .'.'.'.'.'.'.'.'.'..$ ' On U. 8. bomls payable on demand .' '.'.'.'.''.'.'.'.'.'..$ 8.50 On other stocks, bonds, & c , ])ayable on deuuind '..'.'.'.'.'.'.'.'.'. '.'..'$ 47 5()() On time, secured by colbitera Is .' * j«' uio lueluded m the above are — Bad debts, as defined in Section 5201 of the lievised Statutes of the ir. s.--. ^ ^ ^ other suspended and overdue paper '...'.'. .'.'.'.'.'. $80 023 erger is a director with 100 shares of stock). Own order 50 000 (iENERAL REMAKKS. "Overdrafts" : All are recent and good except 85.88, which are doubtful .$ 7, 861. 07 /'Expense %": Of this -J^ ($6, (U8. 24) $2,020, all overdue notes, stated to have })een charged to this % through the inadverteiue of the clerk. They were charged to the *♦ Profit and loss " during this examination. " Pasi-due paper. " Due 1885, "Ely, Hursberger & Ely,'' failed, balance from $2,300, difference charged oflf ; hopeful *j qqq y^ Due 1885, " Haverly, " endorsed "Southwell, " in suit ; liopoful . l ' 800 00 Due 1885, two notes and bals. ; hopeful ' 359' 4Q Due 1886, " Eltonhead ," endorsed " Pfciffer ; " some loss iikel v 9 (XX) 00 Due 1886, "The William Wilson & Son Silversmith Co., '' Philada., failed "' balance from $16,000, difference p'd ; good / 14 1^2 47 Due 1886, ten notes, recent ; good ..'.'.'.'... lo' 290 80 :W, 023. 65 Balances with other banks including reserve agents have been verified bv corre- spondence. *' / The bank rents the entire building— a part of which it (Hcui.ics— for $9,000 receiv- ^ mg rents of $3,900 for offices, etc., making its net rental $5,100. This bank is the legally authorized depository for the city of Philadelphia, and has to-day a balance to credit of "city fimd %" of $2f)5, 487.25. Since the increase (to $400,000) of its capital stock, this bank has not only streujrth- ened its board of directors but has likewise materially enlarged its business and consequently improved its prospects of success. ' George K. Preston, president of the "Hibemia National Bank " of New Orleans La having a residence in this city, is a director of this bank. ' *' AV. r. Drew, n- ^1. r^ Examiner. lo the Comptroller of the Curkkxcy, WaahingtoHf D, C, INVESTIGATION OF NATIONAL BANKS. Exhibit F. 37 [No. of bank, 2291.] [Use the blank lines if necessary, but do not er^e or change any of the printed it^ius.] Beport of tU conditio^i of ike Keystone National Bank, at P1^lada',f the State of Penna., '^ 0/ ^^ ^^^ ^^^^^ . hu8in€S8 on the 3d daif of Jvne, 188G. Db. Besources. 1. Loans and discounts (see schedule) 2. Overdrafts :"*",";•""* 3. U. S. bonds to secure circulation (par value), 3 per cents . 4. U. S. bonds to secure deposits (par value) - ,* ■ * t ' * 5. U. S. bonds on hand (par value) .. 6. Other stocks, bonds, and mort- gages (see schedule) Dollars. 1,180,046.65 642.80 50,000.00 Liabilities. 1. Capital stock paid in 7. Due from approved reserve agents (see schedule) vr"V 8 Due fioni other national banks . - - 9*. Due from State and private banks and bankers (see schedule) 10. Banking house $ 11. Other real estate. % 12 Furniture and fixtures $10, 000. ou 2. Surplus fund 3. Undivided profits. 56, 860. 78 49, 936. 83 19,767.78 10, 000. 00 1, 469. 42 4, Circulating notes received from Comptroller .$ Less am't on hand and in I'reasury for redemp- tion ^ 5, 363. 29 142, 059. 14 14.240.00 247.59 2,000.00 5. State bank circulation outstand- ing 6. Dividends unpaid 13. Current expenses and taxes paid. . 14 Premium paid— On bonds for cir- culation $ Other premiums $ 15. Checks and other cash items (see schedule) - 16. Exchanges for clearing lionse 17. Bills of other hanks ."{L'{' 18. Fractiimal paper-currency, nickels and cents 19. Trade dollars 20. Specie, viz: Gold coin ..$23,650 Gold Treasury certifi- cates (sec. 254, Rev. Stat.) Gold clearing house certificates ^-^ 000 Silver coin — Dolls., 12,300; fract'l, 5,575. 17,875 Silver Treasury cert it- 1 icates (act Feb'y 2^'^*^^^ ^ 66,525.00 *, X w^.wi.-v T.ftt4-s 1 106.000.00 21. Legal-tonutT notes...-. ., V 1 2«> US. certificates of deposit_lor iegal-tender notes (sec. 5195^ Rev. '»•{ Redemption fund with I'.S.Treas- " ' urer (not more than 5 per cent in circulation) - - ■ - - •»4 Due from U. S. Trea,surer (other than 5 per cent redemption fund) 7. Individual deposits subject to check . .$1,160,467.69 8. Demand certificates of deposit $ 9. Time certificates of deposit $ 10. Certified checks $ 11. Cashiers checks out- standing tellers' due bills $ 5,603.12 12. United States deposits - - - ■ 13. Deposits of U. S. disbursing officers ■ 14. Due to other national banks 15. Due to State and private banks and bankers 16. Notes and bills re-discounted ... 17. Bills payable r^), 000. 00 'J, 250. 00 Totad i 1.757.409.28 Total DoUars. 400,000.00 70, 000. 00 11, 258. 57 45,000.00 4, 960. 59 1,166,070.81 43,314.02 16, 805. 29 1,757,409.28 T C W Marsh cash'r of -The Keystme National Bank. Philada., Penna.,'- do solenmlysw^^ the abo^st'Jt'Jnie^.Hs true to the best of my knovvledge and belief. ^, ^^ ^^^^^ ^^^^^^^ Correct. Attest: I^ris Drkka, l).P.S.NiCHOiA Samvei. Lupas, IHreetor*. State of Pennsylvania, County of Philadelphia: slom to and subscribed before me this tenth day ot June, l^^-^^^^ ^ ^^^^^^ y^^^^ p^^^. M&Unowledged before an oflicer having an oflicial seal. See act approved Feb. 26. 1881. ii 'III > fljl ■J ■4 ra .i. if;' .1 i 'i 38 INVESTIGATION OF NATIONAL BANKS. SCHEDULKS. Loatm and diwonvts. On pai>er witli two or more iiulividiial or firm names $839, 746. 65 On single-name paper (one i>er8on or Arm) without other security $101, 800. 00 On mortgages and other real-estate security $ On U. S. Donds (demand loans) $ On other st04ks, bonds, uefrom State and private hanks and bankers. [Such items only as exceed one-tenth of the capital of this bank.] f'lierkftavd other rash items. Checks and dralts on banks, a.« .. in this city -•- ' $5. :sfi3. 2»> j Internal-revenue stumps ' Coupons r. S. refinidinvr <»rtLflcateH Average reserve and interett.- A\eTaiio reserve for last 30 days (in bank and with reserve agents) was 25.89 per rent of deposits and bank )»alance. Th*' highest fate of interest paid bv the ttank is :i per cent. The Witness. A report of condition inierveiK'd between those two dates, from June, 1886, about thirty days after the capital was first increased. Q. Have you copies of the papers relating to the certificate given by the Comptroller showing the increase of the capital stock? If so, give the date. — A. The first letter alluding to nn increase of the capital stock was addressed by John O. Lucas to tlic Hon. H. W. (Gannon, Comptroller, on l^ovember 5, 1885. Q. And the certificate I— A. The final certificate of Comptroller Tren- holm, ai)proving the increase, was dated May 5, 1886. ^ . >■ INVESTlGAtlON Oi? NATIONAL BANKS. 39 ( ) The rell eSate appeared on the assets between June and October, m AV^*^ 30 Th;;anie it^m is stated on the 1st of October 1881 X' the bSS house had '^^-^rrT.tm^^^f^C'n^^^^^ and loans and discounts were set down at |68^,^^^.»l, ^.nowing d nrpase of about $100,000 between the two dates. * Tps Q That is, an inci^ease in the items of loans and discounts!-A. Yes, sir. Bv Mr. Sperry : j v. i Q Is there any increase in the amount due to other banks and bank- !j;"»'Cl ir.k. In (UlKT, «. that ™ul.l be m „,».6U,«o...t d.tor- once. BvMr. Oox: „ ., •,. O There is a loss of $40,000 of assets in real estat*. Now, the dis- nnmits and loansTncrease up to a certain amount, as appears from the rext^atemenrbut it does not increase enough to cx)ver the amount o ?e^ eSSr I want to know whether that real estate appeals m any other tbrm. By Mr. DiCKEESON : ^ i „»♦ o Mav be it appears under the head of "due from other banks' t— A ^ThP amount due from State banks and private banks is increased alK.ut IS TTe specie on hand increased during this per.od about |S,0(M), according to the report. By theOHATRMAN: J 4. 1 ^ O Give us the totals of assets at the two Perio1«--A- l^e ^oUii^- souiveslvnd liabilities on June 30, 1881, ff^.^l'if ^^^^^^^-go^" *"' 1st of October, 1881, the sum totals were stated at $1,100,194.80. O«30 000 drops out there. They may have sold the property lo. 1. ^'tlT^n is stated on the books. That would account for it.— A. That seem^to i^^ accmntM by the reduction in the surpUis yl"ch, on rtT.Jf 1«S1 was stated at «60,0(K), and on the 1st of October, l.s81, ft S.S ar$2lf^ whil would seem to indicate that there was a loss in the real estate of $3.5,000. By Mr. Dickebson : ^ .. , , ^ ♦ O Ts there any dividend distributed, or was it on at^count ol debts .— A% Su not Se 1 will make a memoranduin t« have the reportsot dividends certified and sent up for the periods m 1881, 1886, and 1888. By Mr. Cox: Q. From the examination you have given these reports, do you th.^^^ that that *140,(KK) in real estate appears in any item in tho^ repoits after it disappeared !-A. Of course, it would take * J^'y^^^f ', analysis to state exactly the facts m '•«l'*t»«'i, *« *^^h Ji'Lo'^Xreas loans and discounts and other items amount to aboAtS12o,W)0, ^^here^) the loss seems to have been charged to th««inonT.t ot about «^ Those two together would represent the value of the leal e*tati ii it is I 40 lNVb:STIGA'I'ION OF NATIONAf. BANKS. A a loss; but there does not seem to be any statement showing that the bank i)roi>erty was sold and that it went into the assets of the bank. By Mr. Spebry : Q. That answer assumes that the other items were stationary. — A. The att'airs of every bank are kept by double entry bookkeeping. What is charged to one account must be taken from another, so that the statement of resources equals those of the liabilities; and while there may be tluctuations or changes in several items, still there is nothing inconsistent with the fact that the real estate was sold and went into it. Q. Loans and discounts might disagree. Your answer assumes tliose to be stationary. By Mr. Walker : Q. Any sensible man in double entry bookkeeping sets down and- charges up the double accounts, and sees what is left. The question js whether after thus taking off the froth the assets of the bank were the same after the bank was sold as before, or what the difference was! By the Chairman : Q. The difference seems to be $35,000, which is charged to undivided l>rolits?— A. In the matter of liabilities the deposits seem to have been increased only about $9,000 between the two dates. But it is not inconsistent with correct bookkeeping to conclude that the increase in loans and discounts, and other items mentioned, would represent the real estate, if, as we supposed, there was a loss of $35,000, which was charged against the surplus acc^ount. I do not say that that is the fact; but it would sustain the statement. By Mr. Sperry : Q. An analysis of the two statements would justify that conclusion, you think f— A. I think so, so far as it appears by the two reports. By Mr. TowNSEND : Q. You could not tellwithout looking at the books?— A. It would take an expert with the books of the bank to demonstrate it. In the report of an examiner he simply records the actual changes that have taken place: but he does not rec^ord the several transactions that led up to those changes. By Mr. Sperry: Q. Do you require the examiner to value the real estate?— A. We always do now; it was not dcmc* in the early reports; but now the iners are required to value every asset in the bank. Q. Includingreal estate?— A.' K very item, real estate, personal prop- erty, and everything; and at the end of the report those are rec^apitu- lated and the exac^t amount estimated is stated. Q. Did the bank examin<»rs carry those items to this report?— A. I would not want to state anything in relation to that, because this occurred before 1 became Comptroller, and the reports show what is actually done in that partic;ular case. Q. You say the examiners are re(iuired to examine the assets. Do the exajniners attempt to value Wut credits of the bank ? Do they take the paper of the bank? Is an examiner expected to know what the value of that paper is?— A. lie is to place his valuation upon it to the best of his ability. Of course an expert examiner going through paper can usually tell whether it is business or accommodation paper. If it has all the ear-marks of being genuine, he puts it down as good paper. INVESTIGATION OF NATIONAL BANKS. 41 If it is accommodation paper, he makes a memorandum and inquiies as far as possible of the oflftcers of the bank, and sometimes from outside •IS to the (credit oithe maker or indorser cm accommodation paper, and in that way arrives, as near as possible, at an idea ot whether it is iloubtful or worthless. . ^, . , , O If the director of a bank should put in paper, the examiner would be expected to know it, would he I— A. He would be expected to report as soon as he ascertained the relation of any director to that paper; but he might be deceived. ^ . ^ x .e Q Wcmld he be expected to know the business reputation ot any m^'er of a note which api)ears in the bank?— A. He is not charged with the study of that question; but in an exammation, for mstance, in Philadelphia of forty banks he very soon comes to find out who are the chief borrowers in those banks. Where he finds an individual appear- ing in various banks, and occasionally with his notes past due or under protest, or where a bank has charged oft* his paper, the information obtained by such an examination soon gives him an acquaintance with all the paper that is presented for discount in a given city. Q. Suppose the clerk of a director, an irresponsible person, should make paper pavable to his order, would the bank examiner be expected to know by whom it was made?— A. He would be expected to report it if he found that it was made by an irresponsible party. We reqmre examiners to possess information to a greater or less extent. They are expected to be thorough and careful, and to give the office all the infor- mation that they can get as to paper. By Mr. Cox : Q. In going through the papers of the bank, suppose the examiner finds that the names of the directors or officers of the bank appear as borrowers, is it his duty to report that fact to you?— A. He is always required to report the amount of liabilities found in any bank against officers and directors. That is stated in his report. By the Chairman: Q. I think that is a comparatively new regulation.— A. It has been in existence ever since I have been in office, and I think it was in exist- ence some time before that. Q. Turn to that report of July, 1886, and see if it is there. I do not think it is.— A. For instance, in the report of Mr. Drew upon this bank in eluly, 1886, he states the liabilities of directors as $97,558.8:^. The examiner is always expected to report it. By Mr. Cox : Q. I think it is a tact that this has been required of national bank examiners substantially since the passage of the law.— A. I can not say how far back it goes. The requirements of examiners have increased from year to year. If you will look at these reports covered by the period under examination, you will find that there has been an increase in the demand on examiners. The blanks upon which they make reports contain an infinitely larger number of requirements than they did five years ago. Q. The duties have been enlarged?— A. The duties have been added to. For instance, I have issued three new sets of instructions within the last year. In 1891 there were issued three new sets of instructions covering the points of danger developed by failures that have occurred. The Chairman. There is nothing in these reports that show the market price of bank stock in any way? ■ m i . L I iH ' t 1 H !' 42 INVESTlGAtlOK OF NATIONAL BANKS. Mr. DiCKERSON. Does it show the increase, whether it is more than pari ' 1 ^' ^^.*^^}y ^^^ ^^^^^ *^^ examiner's report states the par vahie of the shares at $50, and the selling value at $o5. .3' ^***li?re is no other question in regard to this increase of stock in l»«b, we will pass on to the next item. The capital stock was increased again?— A. It was increased $100,000 in 1888. Q. Give us the date of the application for that increase, and the date when the increase was approved?— A. On the 10th of January, 1888, the stockholders had a meeting, adopted a resolution authorizing the increase of the capital stock in the sum of $100,000, making the total capitalization $500,000. The cashier made the proper certificate that 1 qLI^Iu^'V^^ ^^ J^,^®"? P^'^ ^^ ^^' October 30, 1888. On November 3, 1888, the Comptroller issued his certificate approving said increase. y. Will you turn to the statement of condition of the bank immedi- ately preceding the January meeting in 1888 f— A. The last report of condition prior to the meeting of January, 1888, shows the condition of TJie Dank at the close of business on December 7, 1887. ^1 \ ^1^1 ^^" S!7® "^^ *^^' ^^^® ^^ ^^^ "®x* statement of condition of the bank f— A. The next report was for the 1.4th of February, 1888. ^T.^;.u ."l? *^^^^ *^^ statements, the loans and discounts is stated on the 7th ot December, 1887, to be $1,294,048.40. What is the amount ot the loans and discountsaccordingtothat statement?— A. According to the statement of February 14, 1888, it is $1,239,576.02. Q. Amount due from approved reserve agents according to the De- ^T^l'r^oTJ.^ '" 1102,697.74 !-A. According to the February report it Q. Amount due from other national banks is $94,233.66 ?— A The amount in the February report is $41,246.54. Q. What is the amount due from State and private banks according to that report?- A. It is $15,657.18. ^ Q. Due on exchanges tor clearing houses, *126,828.08?— A. It is stated m the February rei)ort at $182,007.43. Q. That item, as 1 understand it, means balances due from other banks?— A. No, sir; the item of exchanges for clearing houses is the amount of checks deposited to-day for the credit of the customers of tne Keystone Bank, Avhich on to-morrow it will send to the clearing Q. It means checks of individuals drawn upon T)aiiks other than the Keystone, and deposited with the Keystone?-A. Yes, sir; the v are deposited one day and paid the uext morning. Q. The surplus fund is stated at $88,000 in this report?— A. In the February report it is stated at $88,000. re^iVt^tfs^S^fs^r^^^ ^^ 112,166.33?— A. A<>cording to the February 7A^^;r^^^A^T^xJ due depositors, including tellers' due bills, is $1,352,- f{mr *^ February report it is $1,404,788.90. Q. The amount due to other national banks is stated at $32,767.74?— V r^^^^^^S ^^ ^^^ February report it is stated at $46,097.02. A ^\ The amount due State and private banks is stated at $14,447.10 *— A. According to the February reiwrt it is $15,513.44. The total liabili- ties and resources is $2,037,729.78. Q. The amount stated here is $1,040,113.43? INVESTIGATION OF NATIONAL BANKS. 43 Exhibit H. No. of bank, 2291. [Use the blank lines if necessary, but do not erase or change any of the printed items.] Beportof tU condition of ^^ The Keystone Xationf Bank,ytPhilada in the State of nepori oj p^^ J f^e close of humnex.^ on the 7 day of Decern., 188i. Cb Bb. Resources. 1. Loans and discounts (see schedule) 2. Overdrafts ;--.---■ 3. U.S. bonds to secure circulation (par value) 4.^ per cent 4. U. S. bonds to secure deposits (per value) ■ 5. U. S. bonds on hand (par value) . . - 6. other stocks, bonds, and mortgages (see schedule) Dollars. 1,294,648.48 1, 142. 67 50,000 Liabilities. 7. Due from approved reserve agents (see schedule) 8. Due from national banks 9. Duo from State and private banks and bankers (sec schedule) 10. Banking house $ 11. Other real estate $ 12. Furniture and tixtures. . . $10, 000 102, 667. 74 94, 233. 66 28, 315. 74 1, Capital stock paid in 2. Surplus fund 3. Undivided protits. 4. Circulating notes re- ceived from Comp- troller $ Less am't on hand and in treasury for redemption $ Dollars. 400,000 80,000 12, 166. 34 45,000 5. State bank circulation outstand- 13. Current expenses and taxes paid.. 14. Premium paid— on bonds for circu- lation $——; other premiums.$ 6. Di\idends unpaid. 15. Checks and other cash items (see schedule) 16. Exchanges for clearing house 17. Bills of other banks 18. Fractional papercurrency, nickels .Mid oCntb 19. Specie, viz: Gold coin $43,700 Gold treasury certifi- cates (sec. 254, Rev. Stat.) $ Gold clearing-house certificates . - $40, 00(t Silver coin: Dolls.. I 16,400 ; fract'l, 9,639. .$20. 039 Silver treasury certi ficate8(actFeb'y28, 1878) $ 7. Individual deposits 10, 000 I subject to check . .$1,265,613.70 3,329.04 1 8. Demand certificates of deposit $ 3,999.32 ! 9. Time certificates of |i deposit $ i 10. Certified checks $ 8,041.45 11. Cashier's cheeks out- 126,828.08 II standing; tellers' ^ ^^^ ^, !| due bills $88,093.05 2, 025. 50 4,369 549. 25 109, 739 80. (HtO 20. Legal-tender notes 21. U. S. certificates of deposit fori leeal-tender notes (sec 5193, Kev.l Stk) ! 20.000 22. Redemption fund with U.S.Treiis- 1 urer (not more than r. per cent . i on circulation) 2, 2.'»<» 23. Due from U. S. Tieas^ui-er (other ; than 5 i>er cent redemption i fund) ' Total 12. United States deposits 13. Deposits of V. S. disbursing officers • 1,353,706.75 14. Due to other national banks I 32, 767. 74 l.'"». Due t(» State and private banks ; and bankers 14,447.10 16. Xotes and bills redis<'ounte■■ J 11 44 INVESTIiJATION OF NATIOXAL D.4NKS. SCHEDULES. Lomiut and discounts. On ])aper with two or more individual or firm names $1 156 O"? 06 ' On »*ingle-name paper (one person or firm) without other security ..... $ ' i:w' 6~1 4" *1 '^4 fiis aa On mortgages and other real-estate security ' % -»*,o4o.« On U. S. bonds (demand loans) | On other stocks, bomhi, &.c. (demand loans) .!.!!!!.!. | All other loans | Included in the above are — Bad debts, as deflnen8 , $8, 041. 45 U. S. refunding certitii'rttes. Average reserve and interest —Average reserve for last 30 days (in bank and with reserve airents) Avas >^% per cent of deposits and bank bafauce. The highest rati of int^resFpaid by XTaK 3 ™ 25 cent. \ m INVESTIGATION OF NATIONAL BANKS. Exhibit I. 45 No. of bank, 2291. [Use the blank lines if necessary, but do not erase or change any of the printed it«m8.] D 4 f4h^ ^r^^tiiuinn of '* The Keustone National Bank," at Philada., in the State of Report of %^^;^^'^Z ^e closTof business on the 14th day of February, 1888. Db. Resources- Dollars. 1. Loansanddi8Count« (see schedule) 2. Overdraft* (see schedule) .....----■ 3. U. S. bonds to secure circulation (par value) — per cents, 4* per cents - .- - -; • : ' 4. IT. S. bonds to secure deposits (par value) — per cents V'T" 5. U. S. bonds on hand (par value)— 1,239,588.62 1 2, 842. 51 Liabilities. 6. per cents - v ' * v * Stocks, securities, judgments, etc. (see sefore me this 21st day of February, 1888. (SEAL.] J^O F. llEARDON, Notary Public. Must be acknowledged before an officer having an official seal. (See act approved Feb. 26, 1881.) H "5 ' I 11 ! J 46 INVESTIGATION OF NATIONAL BANKS. [ITill all schedules, writiug in the word "None" whenever no amount is to be entei^ed.] SCHEDULES. -Loans and ditcountt. On demand on IT. S.l)ond8 i " "' " stocks, bonds, and other personal securities !!!."!!..$ C)n )>ai>er with two or more individual or Ann names .'.*..*.".. $1, 027, 378. 62 " single name paper (one i>erHon or Hrm) w ithout other security $ ' 180 'W 00 " other stoiks, bonds, ete. (demand loans) ^ 3«>' qoo 00 " mortgages and other real-estate security sanctioned by see. 5137, R.S. (see Hchwinle) * 'not - - " - (see schedule): $ , , Pi*"* V. ■ 1,239,578.62 Included m tlie al>ov♦^ are — Bad debts, as detined in section 5204, Rev. Stat Other su8i>ended and overdue pai»er .."...!!.. $27,892. 13 Liabilities of directors (Individual and linn) as payers $77,300.00 Loans exceeding the limit prescribed hy section .->J(M> of the Revised Statutes, including amounts in excess o/ this limit du^/rom State and private banks and bankers. Stocks, securities, judgments, claims, g it 41 *« 3 " " * »• 1 " " ' Temporary INVESTIGATION OF NATIONAL BANKS. Other real estate and mortgages owned. 47 Describe property and nature of security, and state from whom it was obtained. Estimated actual value. Amount of prior lien, if any. Amount j Bate when i ^ta^' *"^^".V of debt -A \ J>**^ secured, i «^^^»^^'^- ' acauired. Loans and discounts, secured by mortgages or other real-estate secuHty. [Sanctioned by sec. 5137, U. S. Eevised Statutes.] Name of debtor. Description of real estate. Estimated actual value. Amount ! Amonnt of of debt prior lieu, secured. if any. !' Date when acquired. State bow acquired. [Not sanctioned by sec. 5137, U. S. Revised Statutes.] Name of debtor. Description of real estate. Estimated actual value. Amount of debt secured. Amt. of prior lien, if any. Date wlu'U acquired. State how acquir^. (Indorsed) : Banks will not fill up indorsement. No. of bank, 2291. Report of the Keystone Na- tional Bank of Philadelphia, Penn., Feb. 14, 1888. Q You gave the date when the final approval of the Oomptroller wa^ given which was some time in 1888 ?-A. It was November 3, 1888 O. This certificate of increase of stock seems not to have been tiled with the Department until October 30, 1888.— A. The cashier's certifi- cate is dated October 30, 1888. The date of filing does not appear on the instrument. It was evidently between June and November, as the Comptroller's approval was dated November 3. Exhibit J 1. [Form No. 156.] » Treasury Department, Office of Comptroller of the Treasury, Washinffion, Koremher ?, 1885. Sir: I am in receipt of your letter of the 5tb i^s*-. relative to the proposed in- crease of the capital stock of your association m the sum of $100,000 Section 5142 o? the Revised Statutes of the United States provides J^^t «nj ^- ciation may, by its articles of association, provide for an increase of its capital tiom tune to time, as may be deemed expedient. The maximum of ^"^IVhrrofn^troller provided for in the articles of association, must be determined by the C omptroller of the Currency, ■5?*!SeB9BB— B^ r C 2, ■'1 48 INVESTIGATION OF NATIONAL BANKS. In the sixth article of the articles of associatioii^ aiUDiig other things, the power to provide for an increane of capital stock and to rcjfnlat^* thr manner in which such increase shall he made, is given to the hoard of e offered to outside parties. Section 5140 of the Revised Statutes further provides that no in«rease of capital shall be valid until the whole amount of such increast- is paid in, ane sent. Very respectfully, II. W. Cannox. ComptrolUr. Jno. C. Lucas, Esq., /Vc«/. '' Tin Keystone Xat'l Hank," PhUadtiphiOf Pa, P^XHIBIT J 2. 2291. Keystone Nationai. Bank of Philadelphia, Jo nil ar If 10, ISSS. At a meeting of the sharebfdders of the Keystcme Naticmal liauk of Philadelphia, held on January 10, 1888, at which 22 shareholders were present, representing 5,687 shares of the stock of this association, it was — Resolved, That, under the provisions of the act of May 1, 1880, the capital stoik of this association be increased in the sum of $100,000, making the t«)tal capital $500,000. The above resolution was adopted by the following vote, representing more than two-thirds of the capital stock of the association : Nanie. UoHiileut'C. McFaddeii, Chas [ rtiiludelphia. LncH8, Saiiiut'l i »lo do d«> do do Luca8, John C Haines, Granville B NicholH, D. P. S .... Ditman, Ja8. G Van Bfil, Henry ' dn Stanj;, Peter do Stang, Geo do ■ " ~ do do do do do do do do do No. of shares. Reed, Allen H Whilldin,L.M.. Onrap, (ieo. R . . Elliot. A. G Raines, t'.E Byrd, John Green. Henry W Grey son. Joseph Heraty. E. P . . . . Hiibof, Jno. Y I do F..ogan. M. P.. Pennell, W. H Yard, H.H... Total nunil»er of shaies 5iK) 2(» , 74:{ 791 230 70 2i;{ .'»0 .'.0 100 .'»0 IliO 50 25 20 :w 20 .'»0 ino 1(H) 100 2:<.-. 5.687 I hereby certify that the above is a true and correct copy of the resolution and vote passed at a meeting of the shareholders of this bank held on Jan. 10, 1888. [Seal of bank.] (;. W. ^\\\\au, Cmhier Sworn to and subscribed before me, this the :i0th day of October, A. 1>. 1888. [Seal of notary.] John \V. Harrox, Notary Public, INVESTIGATION OF NATIONAL BANKS. 49 Exhibit J 3. } 2291. Keystone National Bank of Philadelphia, October 30, 1888. To the Comptroller of the Currency, Washington^ D. C: It is hereby certified that the capital stock of "The Keystone National Bank of Philadelphia '' has been increased, pursuant to the provisions of the act of May 1, 1886, ill the sum of 100,(XK) (me hundred thousand dollars, all of which has been paid in, and that the paid up capital stock of »aid bank now amounts to 500,000 five hundred thousand dollars. [Seal of bank.] G- W. Marsh, Cashier. State of Pennsylvania, County of Philadelphia, ««.; I Gideon W. Marsh, cashier of ''The Keystone National Bank of Philadelphia," in the State of Pennsylvania, do solemnly swear that the foregoing certificate by me subscribed is true. ^ ,,r ,r a. r G. W. Marsh, Cash, Subscribed and sworn to before me, this 30th day of October, 1888. [Official seal of officer.] John W. Barron, Notary Public. f' Exhibit K. 2291. Treasury Department, Office of Comptroller of the Currency, Wa^hingUm, D. C, November 3rd, 1888. Whereas satisfactory notice has been transmitted to the Comptroller of the Cur- rency that the capital stock of ** The Keyst• 19. Specie, vi/> : Gold coin... $40,000 Gk)ld Treasury certifi- cates $ Gold clearing-hojise certificates $50, 000 Silver dollars, 8,000; frac'l, 3,895 $11,895 Silver treasury certifi- cates $ Fractional silver coin . $ 107, 803. 61 64, 378. 60 23,640.95 10, 000. 00 3, 999. 32 7, 073. 54 74,811.28 5, 560. 00 376.04 20. Legal-tender notes 21. United States certificates of de- posit for legal-tender notes (sec. 5193, Rev. Stat.) 22. Redemption fund with U. S. Treas- urer (not more than 5 per cent on circulation) 23. Due from U. S. Treasurer (other than 5 per cent redemption fund) . Total 101.895.00 98, 000. 00 Liabilities. Dollars. 1. Capital stock paid in . 2. 3. 4. Surplus fund Undivided profits. Circulating notes re- ceived from Comp- troller $ Less am't on hand and in Treasury for redemption or in transit $ State bank circulation outstand- ing 6. Dividends unpaid 7. Individual deposits subject to check. .$1, 215, 345. 23 8. Demand certificates of deposit $ 9. Time certificates of deposit $ 10. Certified checks. -..$ 202,258.86 11. Cashiers checks outstand in g : tel- ler' s due bills $ 400, 000. 00 80,000.00 19, 787, 10 45, 000. 00 812.50 2, 250. 00 12. 13. 14. 15. 16. 17. 18. United States deposits Deposits of U. S. disbursing ofli- cers Due to approved reserve agents (see s(;hedule) - - Due to other'national banks Due to State and private banks and bankers Notes and bills i-ediscounted . Bills payable 1, 417, 604. 09 63, 218. 49 8,387.92 2,034 810.10 Total 12,034,810.10 1, G. W. Marsh, of "The Keystone National Bank, Philadelphia, Penna.," do solemnly swear that the above statement is true, t*» the best of my knowledge and belief, and that the schedules on back of the report have been carefully filled out and fully and correctly represent the true state of the several matters therein contained. Correct. Attest : G. W. Marsh, Cashier. D. P. S. Nichols, Louis Dreka, Samuel Lucas, Directors. State of Pennsylvania, County of Philadelphia: Sworn to and subscribed before me this seventh day of May, 1888. [seal] John W. Barron, NotAiry Ptbblic. Must be acknowledged before an officer having an oflicial se^l. (See act approved Feb. 26, 1881.) ^1 ij ''A I Hi m I i 1.1 52 INVESTIGATION OF NATIONAL BANKS. [Fin all schedules, writing in the word "None" wherever no amount is to be entered.] Schedules. Loang and ditconnU. On demand, on V. S. bonds $ " '• '■ slocks, bonds, and other personal securities $ " paper with two or nion- iudividiiul or Hrm names $l, 177, 756.95 " time, single name paper ((mo i>erson or firm) without other security $ 20.5,000.00 *' otluT stocks, bonds, etc. (d«'mand loan.s) $ 101, 000. 00 •' time, on mortgages and other real-estate security sanctioned by sec. 5137, R. S. (see schedule) T $ On time, on mortgages an«l «»thcr rt'al estat«' security not sanctioned by sec. 5137, R. S. (see schedule) '. '. $ Total 1,483.756.95 Included in the alM)vc are — Bad debts, as derined in seel ion .'»2!>4, Ke\ . Stat $ Other suspended and overdue jiajwr .$12, 692. 43 Liabilities of directors (individual and tirni) as payers .$56, 821. 12 Loans exceeding the limit prescribed by necfion 52i>0 0/ the Revised Statutes, including amounts in excess 0/ this limit due from State and private, banks and bankers. Stocks, securities, jvdgnnents, claims, etc. INVESTIGATION OF NATIONAL BANKS. Other real estate and mortgages owned. 53 Describe property and nature of se- i Estimated Amount of Amount of j^^^^ ^.,^,,„ State fully ^ -' -^ • ' - - -^ -iriorlien, . debt | acquired. il any. ! secured. I ^ curity, and state from whom it was obtained actual value. how acquired. Loanx and discounts, secured by mortgages or other real e4ttate security. [Sanctioned by sec. 5137, U. S. Revised Statutes.] Name of debtor. Descri}>tionof real estate. i Estimated actual value. Amount of debt secured. Amt.of Djitewben prior hen, acquired, if any. * State how ai^quired. [Not sanctioned by se<;. 5137, U. S. Revised Statutes.] Name of debtor. ... .. , Estimated Description ui real actual estate. value. Amount of debt secured. Amt. of iDate when prior lien, | acquired, if any. ^ State how acquireil. Balances due from or to approved reserve agents. From— Hanover Nat'l Tradesman's . (Indorsed :) liauks will not till up indorsement. No. of bank, 2291. Report of The Keystone Nat. Bank of Philadelphia, Pa. April JO, 1888. Checks and other cash items. Checks and drafts on banks, &c., in this city Checks and drafts on other banks. . . V Average reserve and in trre«f.Xvvr}{ tl It -t tt it Temporary Unsecured : Standing 12 months or over ki a it II i< q li II ii J il tt Temporary c li i\ J. i 54 INVESTIGATION OF NATIONAL BANKS. Exhibit L. Ko. of bank, 2201. [Vso the blank lines if necessary, but do not erase or change any of the printed items.] Report of the condition of " The Keystone National Bank. " at Philad'a, in the State of Fenn'a, at the close of business on the SO day of June, 1S88. Db. Cr. Besources. 1 . Loans and diHCOuntH (see 8<;li<^dule) 2. overdrafts (see schedule) 3. U. S. bonds to secure eirculation (par value).. per cents, 4^ per cents 4. U. S. bonds to secure deposits ^jiar value) . -pei cents 5. U. S. bonds on hand (par value). . per cents 6. Stocks, securities, judgments, claims, 6lc. (see schedule) Dollars. 8. 9. 30. 11. 12. 13, 14. 15 Due from approved reserve agents (see schedule) Due from other national banks — Du(3 from State and private banks and bankers Hanking bouse $ Furniture and tixtures. . . $10, 000 Other real estate and mortgages owned (see schedule) Ourrent expenses and taxes paid. . Premium on bonds lor circulation, $ ; premium on other IJ. S. bonds, $ Checks and other cash items (see schedule) 16. Exchanges for clearing house 17. Hills of other banks , 18. Fractional paper currency, nick- els, and cents 19. Specie, viz: (loldcoin % 14,401 Gold Treasury cer- tificates $ Gold clearing house certificates $140, 000 Silver dollars $ 2, 600 Silver Treasury cer- tificates *. $ Fractional silvercoin $ 2,431 1,508,001.82 1, 605, 53 50,000.00 82, 820, 67 55, 860, 39 23, 779. 70 10, 000. 00 4, 850. 49 3, 999. 32 4, 050. 57 361, 95.1. 93 2, 000, 00 776.54 Liabilities. 20. 21. 22 Legal-tender notes United States certificates of de- posit for legal-tender notes (sec. 5193, Kev. Stat.) Redenijition fund with U. S. Treasurer (not more tlian 5 per cent on circulation) 23. Due from U. S. Treasurer (other than 5 per cent redemption fund) Total 159, 432. 00 70, 000, 00 30, 000. 00 2,250.00 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 10. 17. 18. 2,371,380.96 Capital stock paid in Surplus fund Undivided profits Circulating notes re- ceived from comp- troller $ Less am'ton hand and in Treasury for re- demption or in tran- sit $ State bank circulation outstand- ing Dividends unpaid Individual deposits subject to check . . $1,582,892.24 Demand certificates of deiHtsit $ Time i-ertificates of de^KJsit $ Certified checks $ Cashier's checks outstanding $] 174,577.26 United States deposits Dei)osits of U. S. disbursing offi- cers , Due to approved reserve agents (see scherivat« banks and bankers 45, 000. 00 SoO.OO 1,217,823.65 Notes an'd bills rediscounted liills payable 1,963,158.38 Total 50, 145. 74 7, 500. 00 125,000.00 1,963,158.38 I, G. W. Marsh, cashier of The Keystone Natl. Bank, Philadelphia, Penn., do solemnly swear that the above statement is true, to the best of my knowledge and belief, and that the schedules on back of the report have been carefully filled out and fully ami correctly represent the true state of the several matters therein contained. Correct. Attest: State ok Pennsylvania, County of Philadelphia : Sworn to and subscribed before me this 11th day of October, 1888. [Notary seal.] G. W. Marsh, Cashier. D. P. S. Nichols, Louis Dreka, Samuel Lucas, IHreetors. John W. Barron, Notary Public. Muat be acknowledged before an officer using an official seal. See act approved Feb. 26, 1881. i ■ i I ^;' t I 58 INVESTIGATION OF NATIONAL BANKS. [Fill all schedules, writing in the word " none" wherever no amount is to be entered.] SCHEDULES. Loans and discounts On demand, onU. S, bonds * " '' /' stocks, bonds, and other personal securities .."".".....'"'.'"""'** $ On paper with two or more individual or tirm names .''.'*'.".' " ' $1 025 328 88 " single-name paper (one person or firm) without ol her security ..!...!...!.'.!!! $ ' WJ ooo 00 " other stocks, bonds, etc. (demand oans) * ^25 000 00 " '* mortgages or other real estate security (see 8ch«'dule) !...!'....*'.."*."...$ '^"**^ $1,819,328.88 Included in the above are — Bad debts, as delined in section 5204. Kev. Stat Other suspended and overdue paper Liabilities of directors (individual and Arm) us payers.. $4 44;{ ^ Knter the amount in each of $27 ''04 ' *^'®-'**' three items, or write in $85 500 I *^"' ^•^^d "none" if there is no ■ *' ' [ amount to enter. Loans exceeding the limit prescribed by Section 6^00 of the Jtevised Statutes, including amount* which exceed this limit due from State and private banks and bankers. "Nsaae of Iwrrower. Enter fuU amount of loan. Kame of borrower. Enter full amount of loan. Stocks, securities, judgments, claims, <£c. Enter number shares of stock or face value of bonds. Name of corporation issuing stock, bond, etc. Amount at whicli carried on books. State whether taken Estimated actual for "d«!bts previously contra(;ted," or otherwise. market value. Balances due from or to approved reserve agents. From— T<>_ Enter name and location of bank. Amount. Enter name and locatiod of bank. Amount. Hanover ». 64, 522. 35 84, 016. 96 Tradesmens Checks and other cash items. Checks and drafts on banks, &c., in this city Checks aiid drafts on other banks . . . Average reserve and interest.— Avernixt^ reserve fi)r Isist 30 days (in banks and with was 24/otf per cent of deposits and bank, balance.s. The liigheat rate of interest uaid jMjr cent. resei-ve agents) i>aid by the bank is 8 INVESTIGATION OF NATIONAL BANKS* Overdrafts. 59 Secured : Standing 12 months or over. • 4 6 " " ' t« 3 " •' . »« 1 " " . Temporary Unsecured : Standing 12 months or over. "6 " " ii 1 " " . Temi>orary Other real estate and mortgages owned. Describe property. state form of conveyance, and from whom obtained. Amount at which earriedon books. Amtmntof prior lien on ])roi»erty, if any . Estimated aetnal value of jiropert.N Date when acquired. State whether taken for "debts pre- viously con- tract^^i»^f^^. marsh. Cashier. Correct. Attest: D. P. S. Nichols, Louis Dreka, Samuel Lucas, Directors. Stxtv: or VT.yrs!^Yi.yAS\x, County of Philadelphia: Sworn to and subscribed before me this nineteenth day of December, 1888. [SEAL.] ' Must be acknowledged before an oflicer having an oflicial seal. See a<;t approved February 20, 188L John'w. Barrox, Notart/ Pvhlic. m r- i: < il issse H 62 INVESTIGATION OF NATIONAL BANKS. Overdrafts. Secured : Standing 12 mouths or over . Temiwrary $2, 876. 18 Unsecured : Standing 12 months or over. it Q it it ♦ « Q tt it ' «» 1 •* •* " Temporary SCHEDULES. Loans and discounts. On paper with two or more individual or firm names $i, 095 00 On single name paper (one person or finn) without other security ! ' ]87 00 On moit ":ages and ot her real-estate security On U. S. l)onds (demand loans) \\\\ On other stocks, bonds, «fcc. (demand loans) I........"I....**. 65 00 All other loans Included in the above are — Bad debts, as defined in section 5204. Rev. Stat Other suspended and overdue pa]»er .".'.'."" 8,432.64 Liabilities of directors (indiviffual and firm) as pavers 50, 846! 00 None. OtJicr stocks, bonds, and tnortgages. Due from approved reserve agents. Hanover Xat $53,227.00 ' Tradesmen's Nat ' 72, 622. 00 ! Loans exceeding tlie limit prescrilied by section 5200 of the Revised Statutes, including due from State and private banks and bankers, none. * Cheeks and other cash items. Checks and drafts on banks, &.c., in this city. (-hecks and drafts on other banks Coupons $22,817.02 U. S. refunding cetiflcates... A was per cent verane reserve and intereM.—Avf^vi:^^^ reserve for last :{0 days (in bank and with reserve acents) \ 2J.56 per cent ot deposit* and bank l>alauce8. The highest rate of interest paid by the bank is 3 Q. Will you turn to the examiner's report next in date after this in- crease. Take the preeedinf:^ one finst and the other atlfcerwards.— A. The examination immediately preceding the increase of the capital iii 1888 was made September 17, 1888. Q. Will youpleasestatethe'amountof thecapital stock tliere named ?— A. The amount of the capital st-ock paid in is stated at $450,000. If you will remember, that is stated in the letter to the bank, to which I called attention, stating to them that that $50,000 was improperly stated. By Mr. Cobb : Q. The reply stated that it was $500,000?—- A. The reply said there was paid in $100,000, and that the capital was increased to $500,000. By the Chairman: Q. The amount of loans and discounts reported on October 4, 1888 by the bank, is $1,319,328.88. What is it in the examiner's report ?— A. ' In the examiner^s report of September 18, 1888, it is $1,369,826.32. There is one other iteiQ which should be added to that— demand loans INVESTIGATION OF NATIONAL BANKS. 63 for collateral security, $129,343.05. That would undoubtedly be in- cluded in the first item ot loans and discounts in that report. You will notice in the schedule demand loans are listed at 125,000, which was substantially the same item. . ^ . . ^ ^ v. x Q The amount due from reserve agents is stated in October at $148,539.31. What is it in the examiner's report?— A. The amount re- ported by the examiner September 1 7, 1888, as due from reserve agents, is $135,336.66. . , ^ . x. Q. The amount due from other national banks m the October state- ment is $93,649.28?— A. In the September report it is $89,668.60. Q. Amount due from State and private banks is $15,622.14!— A. In the September report it is $15,494.05. Q. Exchange for clearing houses is stated here at $lo6,297.24.— A. in Mr Drew's report for September he states the amount at $172,117.71. Q. The amount of specie is stated at $67,250.— A. The September report makes it $67,053.75. , ^^ . , . * mi Q. The amount of legal-tender notes is stated at ^ < 1,246.— A. Ihe legal-tender notes here is stated at $30,817 j but this is part of the amount I gave you before — $67,053.75. Q. That would make a difference, then, of nearly $71,000 on that tern f— A. What does the specie and legal tenders aggregate there? Q. One hundred and thirty-eight thousand four hundred and ninety- six dollars?— A. Here the sum is $67,053.75. The difference is $71,000. Q. Turn to the liabilities: The surplus fund is stated at $80,000 here. — A. It is so stated in this report. Q. The undivided profits are $37,388.99.— A. In this report it is $34 547 49. Q. Circulating notes are stated here at $45,000.— A. That is the amount here, less the notes on hand, $44,510. Q. The individual deposits subject to check are stated at $1,174,- 086.09. — A. Individual deposits subject to check are reported in this at $1,288,676.70, to which add demand certificates, $25,000. Q. The item here is $43,737.56, as cashier's cheeks. Those are entered as demand certificates.— A. They should not be. They are a totally different thing, and should not be reported under the same classification. Q. Are there any items of cashier's checks reported in that? — A. Kone. Q. Due to other national banks, $50,145.74.— A. Here it is, $115,- 954.09. Q. Due to State and private banks, $7,500.— A. In this report it is $635.06. Q. Bills payable, $125,000.— A. It is so in this report. Q. Is there any real estate shown in that statement? — A. There is no real estate in this report. 64 INVESTIGATION OF NATIONAL BANKS. Exhibit O. No. of bank, 2291. Examiner's report of the condition of ''The Keystone National Bank," located at Phila- delphia , in the county of Philadelphia, State of Pennsiflrania, at 3 o'clock, p m.. Sept. 17, 18SS. [Exsimination commenced at 2 o'clock p. m. Examination closed Sept. 23.] Granville B. Haines, President. Gideon W. Marsh, Catihier. Resources. 1, 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Note's and bills discounted Demand loans witli collat. secur. . . Overdrafts (U8 atics.) TJ. S. bonds t<) secure circ. * (4^) U. S. bonds to secure deposits'^' r. S. bonds on liand Otber Ht(»cks and bonds rremiums paid Minor coins Cash items (for cliks., $3,388.02) . . . Due from national banks (49) Due from Stat«^ banks and bankers (7) Exrhanjies for clearing house Checks on other banks in same place National-bank notes Due from ap. res. ag., viz. : Hanover Nat. Bank, N. Y $51,918.17 Trailesmen's Nat, Bank.N.Y 82,06.3.19 3rd Nat. Bank, N. Y. 1, 355. 30 Dollars. 1,369,520.32 129, 343. 05 3, 415. 92 50,000 Liabilities. 1. Capital stock paid in (50,000 new) 2. 3. 3, 999. 32 891.41 3, 612. 46 89, 668. 55 16, 494. 50 172,117.71 10, 390. 67 5,610 Surplus fund Other undivided profits, viz. : Discount $22, 239. 19 Exchange 618.77 Interest rrtiniums R<-uts 84 Protitand loss 11,605.53 17. Reserve fund in bank, viz. : Fractional silver $3, 130. 25 Silver dollars 2,116 Silver Try cert's . . . 22, 407 Gold coin 3,583.50 (jold Try cert's Legal tender notes . . 30, 817 U. S. cert's of dep. . . C. H. cert's of dep ... 5, 000 135, 336. 66 18. 5 p. c. red. fund witli Treas. U. S . 19. Other funds with Treas. 11.8 20. Banking-house furni- ture and fixt $10,000 21. Other real estatt? and mortgages. . . 22. Current expenses $11, 677. 87 Taxes paid Interest paid 4, 391 . 81 C«sh shoi-t . Total. 67, 053. 75 2,250 10,000 16, 069. 68 4. 3. 6. 7. Due to national banks (7) Due to State banks and bankers (2) Dividends unpaid. Individual deposits, viz. : Subjei't to rheck $1, 208, 676. 70 Demand cert's.. 25,000 Time cert's Certified checks. Cashier's checks Dollars. 450,000 80,000 34, 547. 49 115, 954. 09 635.06 417.20 8. United States dejmsits 9. DeiK>sit« of IT. S. Disburs. Off 10. Circulati«m received $45,000 Less on hnnaid, ami bonds required of tlu'ni; whether the ofiieers are trained ]>ankers, and if they are enf^ajjed in business outsiany or firm) without other security 314, 327. 46 C. Loans and discounts secured by real estate mortgages or liens upon real estate 1). Demand loans secured by other collaterals (on personal security, $24,043.05) 129,343.05 E. Time loans secured by other collaterals 32, 010 Total notes and bills discounted 1,498,869.37 Included in the above are — F. Bad debts, as defined in section 5204 of the Revised Statutes.. 4, 953. 88 G. Other suspended and overdue paper 46, 588. 25 H. Liabilities of directors (individual and firm) as payers (firm, $42,900) 172,324.00 LOANS EXCEEDING THE LIMIT PRESCRIBED BY SECTION 5200, U. S. REVISED STATUTES. "John C. Lucas" (late prest., dec'd) (demand with coUats.), $65,300. Mem. Demand note, $50,000, in above amount, secured by collaterals — will soon be paid by administrators — $35,000 now in bank. Overdrafts : Of these $838.90 have been paid during examination; $466.67 are very doubtful. GENERAL REMARKS. Supplementary sheet of examiner's report of September 17, 18SS, of the Keystone National Bank, Philadelphia, Penn. Of loans long in the bank the following require mention : "J. C. Lucas, trustee," with city liens for improvements amounting to $13,200 (a demand note) $12, 500 Originally $30,000 in bank when a State bank: difference collected. Interest is paid. When this was taken W. Armstrong, a contractor, was pres't. of the bank. "Samuel B. Griffith," a contractor, order "John C. Lucas, pres't; trust ac," (a demand; note int. pd^ 7,278 8,' 136 2, 929. 05 8, 145. 76 38, 988. 81 At an interview with the board of directors this day (Oct. 2) the result of this examination was communicated to them, aud the above described items were espe- cir.ll y referred to. It was agreed that a committee shouM take these matters in 3792 5 66 INVESTIGATION OF NATIONAL BANKS. charffr and ascertain the likelihood of payment, and charge otf any Iors found likely ^""in addition to this, th,. condition of the bank habitually as t<, its shortness of legal reserve, its almost invariable settlement largely in debt daily at *]>« clearing house, and the nlctiee of t>orrowing fron. banks, not din,".f700; -Eisenberg," $1 188 06) ■' ' Due'May, 1888.' "' Charies Lawrence, trustee," 2 notes. Bank holds plates andprintingmachineryascollaterals*.. .-.-..-.- ---....-.. ^'l**^-'^ Due Sept. 14, 1888. '' H. H. Yard," own order (pd. during examination).. 10,000 Due 1888. 2 notes, good - ^"'^ 46. .588. 25 Mem- It is the intention of the bank to reduce substantially the above, as well as bad debts, by charging oft' items or parts thereof at next dividend period (Nov., 1888). :_____ — * See supplementary sheet. INVESTIGATION OF NATIONAL BANKS. 67 Balances with other banks, including reserve agents, have been verified by cor- respondence. Interest is paid on some 60,000 of personal deposits. Average reserve for the last thirty days, 22 per cent. Bills payable, ''clearing house due bills," with bills discounted as security, as follows : Loan. Security. Bank. $25, 000 75, 000 25,000 $37, 285. 77 102, 559. 07 Farm. &, Mech. Nat. Bank. Phila. 4th St. Nat. Bank, Phila. Central Nat. Bank, Phila. 125,000 . Mem: In addition to the above this bank owes as certificates of deposit $25,000 to the Farm, and Mech. Nat. Bank as above, making total amt. $150,000. Please see supplementary sheet. W. P. Drew, Examiner. To the Comptroller of the Currency, Washington, D. C. Q. Will you take the next examiner's report, and give us the date of it! — A. The next examiner's report is dated April 9, 1889. Q. What is the amount of cai)ital stated here? — A. The amount paid in is $500,000. Q. What is the amount of surplus ! — A. $85,000. Q. And the amount of undivided profits! — A. $38,501.76. Q. And the amount of notes and bills discounted! — A. $1,356,092.91. Q. What is the amount of demand loans! Q. Overdrafts are $16,430.62. There is an item here among the re- sources of cash items, $3,613.46. Q. What does that mean! — A. Cash items on this report are stated at $24,627.94. The description of this is not contained in this report. They consist usually and properly of checks that are handed in after the books are closed for the day. If a depositor should come in and make a de- posit after the bank has been closed, covering checks given upon this bank, or some item of that sort, that would not absolutely be money, but would be converted into money the next day. It would be tem- porarily carried as a cash item. Q. It seems to have grown! — A. It frequently happens in banks and gets to be a pool for worthless items of small amounts. By Mr. Cobb: Q. It would be reported next day ! — A. Properly the cash items should be items that would be converted into bankable funds next day. We have great trouble in getting banks down to that. It becomes a little pool into which they drop doubtful or worthless items. Q. That grows right along! — A. Unless the examiner calls attention to it, the bank is liable to keep on increasing that practice. By the Chairman : Q. I want to call attention to the discrepancy between the cash items of the report of September 23, 1888, and thase of April 9, 1889. The item here is $3,612, and the other is $24,627.91. There is a memoran- dum, "for checks," $24,547.51, showing that the larger part was for <*hecks. and the remainder for something else. — A. The item due from national banks is stated at $8,906.08. Q. It is stated here at $10,932.62. — A. State banks and bankers, $1(»,494.50. This shows $21,651.42. ( : 68 INVESTIGATION OF NATIONAL BANKS. Q. Exchanges for clearing house is $172,117.71.— A. It is here $217,- Q. The amount in the hands of reserved agents is $135,335.66.— A. This shows that amount to be $139,288.88. * 4/?7 akq 7k ^ Q. And the amount of (^ash in the bank is stated at $67,053.75. What is the item there! Does it include legal tender notes?— A. It includes everything in the banking house on deposit. It is stated here at $115,740. . ^ ^ • ^i,- ^ ^ *a -^oi ai Q The amount of interest paid is stated in this report, at $4,3yi.»l.— A. Here it is $3,100.63. .... ^ -^ ^ .u Q. In regard to that item, the amount of interest paid covered the period from the last examination, or from what date?— A. That simply shows the amount of interest that has been paid and not covered into profit and loss account. It is owing to the practice of the particular bank as to when that is charged off. It might be one month or six months, but it is always charged off at the dividend period. Q The amount due national banks is stated at f llo,9o4.0U.— A. un this'report it is stated at $106,622.52. Q. The amount of individual deposits is stated at $1,233,676. <0.— A. The same item is stated here at $1,048,945.52. Q. No cash checks are stated here.— A. There are none m this re- port. Demand certificates are $81,289.59. Q. The amount of bills payable is given here at $125,000.— A. In this is stated at $200,000. ..i. .^v. ^r. ^ k i«^si Q I call attention to the two reports, one ot the 4th of October, 18cSh, and "one of the 12th of December, 1888, in which the cashiers' checks are stated in one case at $43,737.56, and in the other at $47,693.51 Is there any item in your report that can be supposed to include cashiers' checks?- A. Those are marked tellers' due bills.' Q One gives tellers' due bills and another cashiers' checks.- A. Cash- iers' checks is a well understood item. When you take to a bank a note for $10,000 to have it discounted, the discount clerk will figure off the discount, say $100, and give you a cashier's check for the remainder. You take that and deposit it in the bank or some other bank. In Phila- delphia it is customary for the cashier to issue a due-bill for the differ- ence due the clearing-house. When he goes to the clearing-house m the morning he has, say, $200,000, in checks on other banks. He deposits those Then there are checks against his bank for $250,000, and he would thereby owe the clearing house $50,000. It is customary to either pay that in money or to give the bank a due-bill for the amount and pay it next day through the clearing house. Consequently, an examination of such a bank as the Keystone would not show that, there being no such classification in the report. I think designating them as cashiers' checks is improper. tellers' due-bills.- A. I am in the same trouble that you are about that. I do not see any. .oo.^« a r Q. When is the next report of condition, February, 1889?— A. In this report the item listed is ^' bills payable." This report of April 9 says it shows bills payable, due-bills, and certificates of deposit. All are grouped together; for instance, National Bank of the Republic, $^>r>,000; Foreign Exchange National Bank, $20,000; Fourth National Bank, $75,000 ; Central National Bank, $25,000 ^ Seventh National Bank, INVESTIGATION OF NATIONAL BANKS. C9 $25,000; Third National Bank, $30,000; aggregating .f 205,000, which was secured by pledges of loans and discounts of $.'^3G,000. Q. That should not have been on the Examiner's report under the head of notes and bills discounted! — A. No, sir. Q. They were not discounted, but merely pledged as collaterals! — A. Yes, collaterals for the payment of these obligations to the several banks. Q. In the Examiner's report where does that appear!— A. It is under the head of bills payable. Q. I thought there was a reduction in bills payable, on the report of September, 1888, of $125,000!— A. It stands here at $200,000. Of course, the due-bill account should be separately and distinctly stated. A certificate of deposit is a totally different account, and should be separately stated. Neither of them should be classed as bills payable. Unless that is done it is impossible to tell which are due-bills and which are bills payable. Q. You have the report of condition of February 26, 1889. In that report bills payable appear at $50,000, I believe!— A. Yes, sir. Q. And the tellers' due-bills at what amount!— A. $67,219.41. Q. And then you have another report of condition in May! — A. I have one dated May 13, 1889. Q. What does that show!— A. Tellers' bills are $157,003.43. Q. Bills payable!— A. There is nothing stated as to bills payable. , Q. Praer cents. 6. Stocks, securities, judijroents, claims, etc. (see schedule). 7. Due fnmi approved reserveagents (8tH3 schedule). 8. Due from other national banks. - . 9. Due from State and private banks an»l bankers. 10. lianking house $ 11. Furniture and fixtures .. $10,000 12. Other real estate and mortgages owned (see schedule). 13. CuiTeut exi)enses and taxes jHud. . 14. Premium on bonds for circulation, $— — . I'leniium W- "" Loans exceeding tlie limit jirescrihed by Section 5200 of the Revised Statutes, including amounts in excess of this limit due from State and private banks and bankers. None. None. Stocks, securities, judgments, claims, etc. Balance due from or to approved reserve agents. Chase Nat'l. Tradesmens From — 22, 747. 74 12, 245. 00 To— Checks and other cash items. Checks and drafts on banks, etc., in this city Checks and drafts on other banks Average reserve and in f^^ rest. —AvGrage reserve for last 30 days (in bank and with reserve agents) was rVij P«r cent, of dei>osits and bank balances. The highest rate of interest paid by the bank is 3 per 26 cent Overdrafts. Secured : Standing 12 months or over. 6 " " - 3 Temporary Unsecured : Standing 12 months or over. " 6 " " . K Q it ii " 1 " " . Temporary 1,068.41 Other real estate and mortgages oivned. Describe property and nature of se- curity, and state from whom it was obtained. Estimated actual value. Amonnt of prior lien, if any. Amount of debt se- cured. Date when acquired. State fully how acquired. Loans and di.seounts, secured by mortgages or other real-estate sec%irity. [Sanctioned by Sec. 5137, U. S. Revised Statutes.] Name of debtor. Description of real estate. Estimated actual value. A mount of debt se- cured. Am't of prior lien, if any. Date when acquired. State how acquired. * See letter 4-23 '89. t See letter 3 18. i .Omim '*■< ;'l i.i 72 INVESTIGATION OF NATIONAL BANKS Loan$ and diteounts, secured by mortgaget or other real-e»tatete^urilp—Coniinnei\. [Not sanctioned by iS«c. 5137, U. S. Kevised Statutes.] X^me of debtor. Description of real estate. Estimated actaal value. Amount of debt H«- cured. Amount of pri«»r lieu, if any. Dat« wlien acquired. State how acquired. Exhibit Q. No. of bank, 2291. Examiner' 8 report of the condition of the Ketjfttone National Bank, located at Philadelphia, in the county of FhUadelphia, State of PeintHjilrania, at 10 o'clock a. m., April 9, 18S9. [Exainluutiou commenced at fl o'clock a. m. Examination closed April 13. j Gkawville B. Haines, President. Gideon W. Maksh. Gathier. Kesources. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 18. 14. 15. 16. Notes and bills discounted Demand loans with collateral se- curity Overdrafts • U. S. bonds to secure circulation* (4i). U.S. bonds to secure deposits* U.S. bonds on hand* Other stock s and bonds Premiums paid Minor coins Cash items (for checks, $24,547.51) . Due from national banks (35) Due from State banks and bankers (12) Exchanjifes for clearing- house Checks on other banks in same place National-bank notes Due from app'd reserve agents, viz : Chase Nat. Itank, New York $19,755.01 Tradesmen's Nat . Bank, NewYork . 19, 533. 81 Dollars. 1. 35C, 092. 91 34, 400. 00 16, 930. 60 50, 000, 00 3, 999. 32 2:56.81 24, 627. 94 109,320.28 21,551.82 217, 980. .57 20, 193. 28 6, 425. 00 Liabilities. 1. Capital stock paid in Suridiis fund Other undivided protits, viz : Discount $30,005.88 Exi'Iiauge Interest ; Premiums i Rents (boxes) 1, 082. 52 ' Profit and loss ... 7, 353. 36 I Dollars. .500, 000. 00 8.'), 000. 00 .38. .501. 76 4. Due to national banks (8) \ 106, 022. .52 5. Due to State banks and bankers (3)| 8, 408. 60 17. Reserve fund in bank, viz : Fractional silver. . $1, 392. 50 Silver dollars 6, 911. 00 Silver Tr'y cert's . 24, 949. 00 Gold coin 10,436.50 Gold Tr'y cent's ... 1, 480. 00 Legal-tender notes 20, 571. 00 U. S, cert's of dep C. H. cert's of dep . 50, 000. 00 18. 19. 20. 21. 22. 5 p. c. red'n fund with Treas. U. S. Other funds with Treas. U. S Banking house Furniture and flxt'rs. . $10, 000. 00 Other real estate and mortgages . . Current expenses $20, .596. 44 Exchg 618.08 Interest paid 3,108.63 Cash short . Total. Dividends unpaid ( »vei«lrafts Individual deposits, viz: Snbjeit to clietk. $967, 664.93 Denujnd cert ifs . . SI, 380. 59 Time eertilicites Certified checks Cashier's checks 3, 953. 00 16,9.30. CO 8. 39, 288. 82il 9. 10. 11. 12. 115.740.00 13. 2.250.00 United States deposits Deposits of U. S. disbursing of- j. fleers. 1 Circulation received . $45, 000. 00 Less on hand and refn'd i 1,048,945.52 State bank circulation out- '. stanKLriiiA, Pa., Jj>n7 9, 1889, [Supplementary sheet.] Overdrafts. C.N. Thellinbarger, director, made good bv discovmt H ^55. 82 Estate of Jolin'C. Lucas (late president, dec^d), by administrators, to com- plete payment to contractors for erection of T).". houses on Fi'dcral street, Philadelphia, under construction at time of Mr. Lucas' death; will be paid soon lb, Mi^. W 21, 386. 22 Other overdrafts (37 accts. ) probably good 9, 171. 25 30, 557. 47 Mem.— During this examination Mr. Henry Van Beil (301 shs.) was elected vice- president of this bank, and he will be at once the principal manager, fhis is an important step, and in the right direction. He is a careful merchant, and brings to the discharge of his new duties a thorough and conservative business tal^t. llis standing is good among business men and in the community generally. Even tne few days since his election the condition of the bank in important features has im- proved, and it is conlidcutly expected that under his management the ahnost uni- form daily settling in debt to the clearing-house, which has brought upon the bank hitherto some dispute, particularly among banks, will be corrected and permanently corrected; borrowing money to loan again will bo stopped, and great care and new vigilance will be observed. • ^ i 4.1 i-v + The chief error in management has been overloaning, under a mistaken tneory cnat failure to accommodate all business among its patrons would, under the stress of competition, lose to the bank valuable accounts. This bank continues to act as the depository of the city treasurer, having an average balance from that officer (.f $ 1()(),()(X) daily. This function it shares with the 3rd IS at. Bank, the city treasurer alternately drawing on each for a period ot thie.e months. M«M.— A recentlv .hartenul State institution, ^^The Central Savings tund and Trust Company," with practically the same stockholders as this bank, will be organ- ized shortly and will Oicupy a part of the banking room, thus materially reducing the rent. . . , 1 . -x 1 '\a- With proper management there is no reason why this bank, m its new buiiamg and in a most eligible location, should not prove successful. I believe it will. W. P. Drew, Examiner, To the COMPTUOi.LEIi OF THE CURRENCY, WaHhinyton, J), C. [Note.— Under the head of '^general remarks" the examiner should mention the character of col laterals held, and give a general description of tUe loans and dis- counts, overdrafts, stocks and bonds, other real estate, cash items, expenses, bills payable, or other accommodations sought by the bank, and the necessity theretor. He should schedule all tsxcessive loans obtained by any corporation, company, or hrm, through its stockholders, members, officers, or employ^^s, for the bem-tit and use ot such companv, corporation, or tirm as may appear from the credits such aecount has received, or otherwise, and should describe the manner in which such accommoda- tions were obtained. J 1 GKNKRAL REMARKS. INVESTIGATION OF NATIONAL BANKS. Tf) Due \SHH. W. n. Brown, own order, interest ])aid, good 2, ofK). (H) Due 1X88. '^Melanv," renewal, intc^rest paid, hopeful 26S.00 Due 1888. "(4. B. ' Morse," $590; '*E. R. Bodin," $000 int. pd, go(»d, probably 1,490.00 Due 1888. " L. L. Cann," balance from $3,000; difference paid, hopeful. 2,437.06 Due 1889. "Nolan &. Co.," $500; "Zaiie," order "Kelley," $2040, good. .. 2, 540. 00 Due May, 1888. (Renewals) 2 notes, "Charles Lawrence, trustee." 8, 145. 76 $26, 575. 35 j^Ipm.— Recognizing the liability of the late Prest. J. C. Lucas, in the last-men- tioned paper ("Lawrence,'* $8,145.76), the administrators of his estate, of whom the president of this bank is one, will pay the same. In similar conditions are items in "demand loans," as f5,000 Silver dollars $ 4, 600 Silver treasury cer- tificates $ Fractional silver coin. $ 6,400 119, 485. 38 75, 200. 41 29, 616. 41 10,000 1, 087. 53 3,999.32 i 26, 401. 90 100, 184. 21 16,400 647.44 20. 21. 22. 23. Lejjal-tender notes United States certifi«'ate8 of de- jMtsit for legal-tender notes (sec. 5193, Rev. Stat) Redemption fund with U. S. Treasurer (not more than 5 per cent on circulation) Due from U. S. Treasurer (other than 5 per cent redemption fund Total 113, 000 156,000 2,250 2,082,440.76 Liabilities. 1. Capital stock paid in 2. 3. 4. Surplus fund Undivided profits. Circulating notes re- cei\ed from Comp- troller $ Less am't on hand and inTreasury for redemption or in transit I 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. State bank circulation outstantl- ing Dividends unpaid Individual depf>sitj» subjeet to clieck. . .$1.192,.'>ove are- Bad debts, as deli ii«'d in seclion 5J04, Rev. Stat $6. 821. 14 Other suspended and overdue paj>er 4,916, 18 Liabilities of directors (individual aiid firm) as payers 91, 000. 00 $96, 600. 00 1, 063, 491. 48 186, 230. 10 30,485.16 1. 376, 806. 74 Jjoans exceeding thcUmit prescribed by secHnn r,"JOO of the Revised Statutes, including amounts in excess qf this limit due from State and private banks and bankers. None. None. Stocks, securities, judgments, claims, etc. Balances due from or to approved reserve agent*. From— To— Trailesmens,' N. T Chase $75, 379. 73 44, 105. 65 $1, 497.47 Checks and other cash item^. Checks and drafts on banks. Sec, in this city ' $26,401.90 Checks and drafts on other banks . . Average reserve and interest.— Aversige^ reserve for last 30 days (in bank and with reserve agents) was 27iVo Pt>r cent of deposits and bank balances. The highest rate of interestjpaid by the bank is 3 per cent. Overdrafts. None. Other real estate and mortgages owned. Loans and discounts, secured by mortgages or other real estate security. Secured. : Standing 12 months or over 4t ft il- li ti O (( t( " 1 " " . Tpmnorarv ... ... Unsecured : Standing 12 months or over 6 " *' 3 " " Temporary $1, 361. 42 [Sanctioned by sec. 5137, U. S. Revised Statutes.] Name of debtor. Deseriptiouofreal ^j^^^'^" ^»^^^- value. Amount of debt secured. Ai9lt»fl Date when Stale how acquired. 78 INVESTIGATION OF NATIONAL BANKS. Locmsand diacovutu, $rf^ired by tnortijagfn or other rraleslate *«r»'rt/»/~Coniimied. [Not sanclioiiod by sec. 5137, U. S. Kevisod Statutes*.] INVESTIGATION OF NATIONAL BANKS. 79 Name of debtor. Prsniption of real estate. Estimated a<-tnal value. Am.Hintof Ainonntof p.^,^ ^.^en debt prior lien, 8ecured. if any. aequired. State how ai-qiiirud. (Indorsed:) Banks will not till ui> ind»»r»ement. No. of bank, 2291. Rejwrt of the Keystone Nat'l Bank of Philadelphia. Pa., May 13, 1889. By the Chairman : Q. The experts employed by the eity of Philadelphia are reported to have reached the conelusion, and so stated to that municipal body, that this bank was insolvent on the 1st ofJanuary, 18S8. I desire to know whether there is anything in these reports, either the reports of con- dition or the reports of the examiners, as made to the Department, which indicate any such condition on the part of the bank? — A. There is nothing whatever. Q. It is impossible to figure from the statements any such condition of the bank! — A. It is entirely impossible. It is impossible to deduce any impairment of capital whatever at that date. Q. Since the bank has gone into the hands of a receiver, have any figures reached you which demonstrate or indicate that the bank was at that time insolvent? — A. The receiver himself has made no exami- nation, which I know of, with reference to its condition prior to his taking possession. The experts appointed by the Secretary and the committee of fifty hav e gone into that matter and have rewritten a great many accounts, in order to ascertain its condition at various periods, reaching back as far as January, 1888, I think. Q. Has their report been comi^leted ? — A. My impression is it will be completed withiri two weeks. They have reported, of course, from day to day, as I understand it, the facts demonstrated, and various special objects of inquiry have been completed. Q. To whom have those been made — to the Secietary direct? — A. Yes, sir. Q. With regard to the examination of this bank, since it became known that it was in difiiculty, what investigations have been made? As you are informed, there have bt^en several, I believe, and I would like tx) get those classified if I can. — A. My recollection is that a com- mittee was first appointed by the committee of the (common council of Philadelphia to investigate as to the amounts due the city of Philadel- ])hia by reasons of dei^osits made by the city treasurer, Mr. Bardsley. Of course it did not cover all the transactions of the bank, but only those relating to the interests of the city. Certain experts were ap- pointed by the governor of Pennsylvania, who proceeded to investigate the accounts of the bank, so far as they related to the interest of the Commonwealth of Pennsylvania. Subsequently the Secretary of the Treasury directed me to ask the mayor to select ccirtain exi)erts to pro- ceed to make an examination of the books of the bank, the exi)ense to be i)aid out of the public funds. Those experts also made an examina- tion of the aliairs of the bank. Q. So far as that examination was concerned, was it in reference to any particular accounis, ov was it n^garding the gt^ieral accounts of the bank?— A. My recollection was that this hist examination was quite general. The most comph'te and tliorcmgli examination has been made by the ioint committee composetl of four experts appointed by the com- mittee,* of whi<*h Mr. Reeves, I think, was chairman, an,600. The lawful money reserves at the time Avere $17,588.04, less than the legal leipiiiement. Q. Was Mr. Jolin Wanamaker an officer or director of the bank? — A. No. .■:.-! Ubi J II 80 INVESTIGATION OF NATIONAL BANKS. Q. Was Granville B. Haines an officer!— A. At that time he was president of the bank. Q. Have you the report, or a copy of it, to which that criticism was addressed ! — A. Yes, sir, it is here. By Mr. SrEBRY : Q. Was Mr. Wanamaker a stockhokler of the bank at that time? — A. The last report of the stockholders made t^ the office, so far as I am now advised, does not show that he was a stockholder at that time. By the Chairman : Q. What is the date of that report!— A. July 3, 1888. Q. Is there any report of the stockholders of the bank later than July, 1888 ?— A. I directed them at the office to send me all, and this seems tx) be the latest report. Q. 1 will ask you to make further examination upon that question, and state whether the report shows the names of stockholders — that is, whether there ever has been any bank statement ^iviuj*- the list of stockholders later than the one you ])roduced of January, 1888. Now, please state whether this examiner's report of October, 1889, came to your personal attention prior to the failure of the bank? — A. I have no recollection of seeing it. It was treated by Mr. Abrahams, my deputy, at that time. It was while I was engaged in preparing my annual re- port, and he signed all the correspondence at that time. Q. Coming back to the question which led up t<> this letter, when was your attention personally called first to the condition of this bank and the criticisms upon its condition? — A. It would be impossible for me to fix that. I can not tell how early I did give my personal atten- tion to the matter, except as it appears by the official correspondence. Q. Taking that as your guide, what would you say it was, because this appears to be the act of Mr. Abrahams f — A. The earliest date when I canremeniber having had my attention called to the bank w as cfn the 28thof July, w^hen I w^rote a letter to G. W. Marsh, president, in reference to a report of Examiner Drew for July 3, 1890. . Q. Prior to that time had there come to your knowledge any facts at all which related to the condition of this Ininkf — A. I can not say that I remember when exactly, but I have no recollection prior to that date. Q. Does your recollection serve you in that respect, or do the records of your office show that your attention had not been called to the Key- stone Bank as being in a critical ('ondition prior to that time! — A. That is my recollection. I can not carry those things in my mind, as I have nearly 4,000 banks to look after. Q. There was nothing up to that time which made the condition of the Keystone Bank exceptional? — A. I don't remember anything ex- ceptional. In looking over the corresi)ondence there was the ordinary criticism, and that would be visited upon sound bar\ks which were not well managed, but nothing to excite alarm. Q. Was any part of the correspondence signed by you personally, or was it signed by the deputy <*.omptroller, up to that date? You say the criticism is such as would be made upon any good bank that was not well managed! — A. If you wait a moment I will see how many letters I did sign in reference to the transaction of the bank ])rior to that time. The first letter seems to be addressed to the bank by me on .fune 4, 1889, and it simply refers to an informality in the jurat attached to the report of condition. The next letter was dated June 4, 1889, in which the attention of the bank was called to the item of deposits entered on the face of the INVESTIGATION OF NATIONAL BANKS. 81 report, $1,289,505.39, while the schedule showed the amount was $1,349,505.39. Q. A difference of just $00,000 !--A. Yes, sir; and the report was returned for correction. Q. What was the date of that report!— A. May 13, 1889. Q. Have you got that letter, alluding to the amount of deposits, which was returned for correction! — A. Yes, sir. Q. Then it is not a corrected report!— A. Yes, sir; this is a corrected report. While the schedule showed the amount was $1,349,505.39, it was returned, and they returned this letter in wliich they explain it. They say the individual deposits subject to check were $1,193,5.09.90. The cash checks outstanding were $157,003.43, making a total of $1,349,- 505.39. This is the letter in which he says, '* I do not see how I made the blunder.'^ The trouble is in reference to the footings. Q. It is $60,(M)0 out of the way— that is, they didn't foot the right amount. The Witness (after tiguriug). Yes, $60,000 difterence that I can not explain. Q. Did you send back to be corrected the report with your letter?— A. No; I asked them to forward the corrected schedule, and they are corrected in this report. Treasury Department, Office of Comptroller of the Currency, Washington, D. C, June 4, 1889. Mr. G. W. Marsh, Cashier Eeyiftoue SutiouaJ Bank, Philadelphia, Pa.: Sir: In your report of condition for May 13, 188iK the item of "Deposits" i8 en- tered on the face of the same at $1,280,505.39. while the schedule shows an amount of $1,349,545.39. You are respectfully re<| nested to forward a correct schedule of the items compos- ing the amouut, hy first mail, and also to see that future reports are correct in this respect. Respectfully, yours, E. S. Lacey, ComptroUer. Q. In resjionse to that letter you received a letter of which that is a copy ?— A. I received a letter dated Friday, June 5, 1889. It shows de- posits as follows: Individual deposits subject to check. $1,192,501.90; cashier's checks outstanding, $157,003.42. ' Total, $1,349,505.39. Q. The ettect of that correction w^ould be to throw^ this out of balance $60,000 f — A. I suppose so; assuming the footings are correct. Q. Then, by making the correction reported by that letter, there would be $60,000 more liabilities and no more assets?— A. That would be the result of it. [Granville B. Haines, Prest. ; Henry Van Bell, Vide-Prest. ; G. W^ Marsh, Cashier.] Keystonk National Bank, 1326 AND 1328 Chkstnut St., Oppositk the U. S. Mint, Philadelphia, June 5, ISSO. Dear Sir: Tlie dei)osits were as follows: Iu(i. Dep. suh ject to check 1, 192, .501 . 06 Cash'r checks outstandino; 157^ 003. 43 Total 1,349,505.39 I don't see how I made the hluinler. V^ery resp'f y, G. W. Marsh, Cr, Hon. E. S. Lacey, Comptroller of the Currency. 3792 6 :.' ijwmiiiUMi i: i 9t ■ 'n 11 It; !' ■ ■ ..'"^ 82 INVESTIGATION OF NATIONAL BANKS. O. No other correction was mswle oftliat report?— A. I will see. Tbe next letter I addressed to tlie Keystone National Bank was on August U, 1889, calling- attention to the fact that proof of publication ot report of July 12, 1880, had not been received. Q. So lUr as this coiTespondence goes, there was no further correction on the face of the May report!— A. I don't see any. (For this report see Exhibit R, ante.) , ^ . xt i.- i The next communication addressed by me to the Keystone National Bank was on January 6, 1890, in which I called attention to the fact that proof of publicatioii of the report of December 11 had not been Treasury Department, Office of Comptrolt^kr of the Currency, Washingtotif August 14ih, 18S9. 'cashier Keystone National Bank, Philadelphia, Pennsylvania: Sir- Proof of publication of the report of the condition of your bank aH made to this office at the close of business on Friday the 12th day of July, 1889, has not been ^To'urattention is particularly called to the re.] u ire men ts of the law with regard to forwarding reports, and to the penalty for ftvilure. (See Section 5211 and Section 5213, U. S. Kevist'd Statutes.) Respectfully yours, ^ ^ ^^^^^^ Cor)H)troUei'. Q. Can vou state whether those proofs of publication were ever fur- nished?— A. I could not. The next communication by me was dated April 3, 18(X), saying that upon examination of report of condition Feb- ruary 28, 1890, it was found that under the head of specie, clearing- house certificates, $30,000 had been entered, which error was afterwards corrected. Treasury Department, Office of Comptrolj.er of the Currency. Washington, D. C, Apnl S, 1890. Mr. John Hayes, ,., .. ^ , » n Cashier, Keystone National Bank, Philadelphia, Pa.: Sir : Upon examination of your report of condition on February 28, 1890, it is found that under the head of specie, you enter "gold clearing-house certihcates, $30 000 Vou are respectfully requested to inform me at your earliest convenience whether this amount represents gold certificates issued by your clearing house, or gold cer- tificates issued by the U. S. Treasury payable to order and used for clearing-house ^YnTase the amount includes certificates of both these classes, please j^ive the amount of eath class held at date of report, and see that this information is given in future report*. KeHpectfnlly yours, ^ ^ ^^^^^^ Comptroller, The next communication addressed by me is dated April 28, 1890, and states that proof of publication of the report of February 28, 1890, had not been received. Treasury Department, Office of Comptroller- of the Currency, Washington, April 28, 1890, Mr. John Hayes, Cashier, Keystone Nat. Bank, Philadelphia, Penna.: Sir: Proof of publication of the report of condition of your bank, as made to this office at the close of business on Friday, the 28th day of February, 1890, has not been received. I INVESTIGATION OF NATIONAL BANKS. 83 Your attention is particularly willed to the rc Cashier, Keystone Nat. Bank, Philadelphia, Penna.: ., 8ir: Proof of puldicatiou of the report of the condition of your bank, as made to this office at the close of business on Friday the 28th day of February, 1890, has not l>e»'n received. . > > Your attention is particularly called to the requirements of the 1:iav with re^^ard to ^'.^'Tr J^^^P^""*!' S?"! *^ *?^ penalty for failure. (See section 5211 and section a21d, u. S. Kevised Statutes.) Respectfully, yours, * E. S. Lacey, Comptroller. Q. Had they failed to file the reports?— A. They had made reports, but they are required to show proof of publication of the reports. Ihe next communication was June 4, 1890, in which attention was called to the fact that an item of |2,000 which was carried as premium on Lnited States bonds in the report of condition of May 11 was exces- sive, and that $250 of it should be charged off. Treasury Department. Office of Comptroller of the Cuhjiency Mr. G. W. Marsh, Washington, D. C, June 4, 1890, President Keystone National Bank, Philadelphia, Pa.: Sir : Upon examination of your report of condition on Mav 17 ult it is found f hi t sectUdmiM^m^^^^^^ ^'"" "^'^'^ ^"'"^ ''' »"^"^">^ «n United States bonds to MfTllh ;;"V^'V'* ''?^'^^''LI'X ''^''^'''^ ^^^ market value of the premium on these bonds ?U>n':^t1r^ne^t'S!Sl'' ^"^^ '"^^ ^^^^^« ^^«^^^^ ^^ ^^^^^^ ^^ ^-^^ ttdeci^^t Respectfully, yours, g. S. Lacey, Comptroller. hv^fbtV^o"?^^ ''' ^ *^? ^^t^^'' ''^ ^'^^^ -^' ^^^^^ ^^^^^i<^h I'^fei'^ to criticism by the bank examiner m the report of July 3, 1890 : Hon. E. S. Lacey, Philadelphia, July i% 1890, Comptroller of the Currency, Washington, D. C: iVrS J^yS^rnf ?i' •"'''•f '''° ^''''° ^^'"''' ''^'^ ^^^« ^« 5^^* ^^««n sent to The Keu.tone ZZ^ J ^^""j ^^ this city, on my report of its condition mailed to vou on the 1«fb S:'alZ a^TsinftJi^ r r.* *V* V* ^f ^^^^^-^^^ ^- longer Ihan^^ay're un'avold^- exceksTve loan bv the b^nk to /r'^?/ ^ ^^^^ *V* ^^' vvomised reduction of the the condition omrba^lkt;^'/^^^^^ ^^a^ama^er has not been effected. Meanwhile coj.^^to bJ^^^^ the Clearing house, Sve methods ^f "f ^«?»Pe^'!tion to compel the bank to return to safe aSd conserva parS^^^^^^^^^ ^^*^«"* ^yrther delay, will avail much,"and^rbe the same end^^ ^^"'^ ^'^ ^^^^ clearing-house committee in their eltbrt« towards Very respectfully, ^ W. P. Drew, Nat. Bank Examiner. iito I, i : li »i m 84 INVESTIGATION OF NATIONAI- BANKS. liner s re- () You have the report here of the condition and tlic cxanii noli dudngtUo period that yon have been in office, and which period is covered by this correspondence?— A. Yes.sm ti.o i.nnk was Q. Is the/e anything in those reports 'i^^^f ^^''S * f* ^/f J^ ^'tn in .lifficnltv or showing any embarrassment?— A. ihere i>< noi ung in anv of he reports prior to January, 1891, that indicates any unpair- mSit of t4 ''M.ital o? the bank, or anything looking towards "^olvew^ O I will put in this report prior to that one. This letter dated July 2H, l,S!Mr.efers to the examiner's report l-A. Yes, sir; to the report of ^' * Exhibit S. Ko. of Bank, 2291. [Use tJin l.lank limss if necessary, but do not erase or clianKO any of the print«Ml ilen.s.] Report of the condition of - The Keystone Xaiional 1^,1:^ at ™'«^-^^'" ''- '^'«'^ '^ Penna., at the close of himneas on the 12 day of July, hSSJ. ^^ Db. Resources. 1 . Loans anddiscounts (see sojiedulo) . 2. Overdrafts (seo scheiluh') ......-• 3 V. S. bonds to secure circulation (par value) — per cents 4"o per (^ents .- ■ - ; 4. U.S. bonds to secure deposits (par value) — per cents 5. V. S. bonds on band (par value) — ]>er cents • ■ • 6. Stocks, securities, .juuj;nients, claims, &c. (see scbedule.) Dollars. 1,351,772.21 671. 16 50,000 Liabilities. 7. Due from approved reserve agents (see schedule) • • 8. Due from other national banks . . . 9. Due from State and private banks and bankers 1(1. Bankini: house 11. Furniture and tlxtures 12. Other real estate and mortgages owned (see schedule) ; ■ • ■ 13. Corrent expenses and taxes paia.- 14. Premium on bonds for circulation $ premium on other h . S. bonds, $ 15. Checks and otlier cash items (see schedule) 16. Exchanges for clearing house 17. Bills of other banks ; - ■ - 18. Fractional paper— cunency. nick- els, and cents 19. Specie, viz: Gold coin * 3^. ''^'" Gold Treasury certifl- cates * Gold clearing-house oer- titicates ^ ^"^^'2 « Silver dollars $ 13, 600 Silver Treasury certifl- Fractional silver coin ... $ 9, 400 128, 513. 25 93, 621. 54 24, 928. 46 10,000 5, 218. 49 3, 999. 32 30, 747. 40 135,720.69 17, 500 1, 563. 84 1. Capital stock paid in. 2. Surplus fund 3. Undivided protits 4. Circulating notes received from Comptndler $ Less am't on hand and in Trea.sury for redemption or in transit $ Dollars. 500,000 90,000 15, 145. 40 5. State bank circulati«ni ontstand ing 6. Dividends unpaid 7. Individual depos- its subject to check $1,340,003.88 8. Demand cert id- eates of deposit ..$ 9. Time certificates of. deposit $ 10. Certitied checks ..$ 11. Cashier's checks outstanding; t«'ll- ers' due bills $117,708.09 45,000 720.50 ;l,457,7n.97 20. Legal-tender notes - - • - 21. United Statescertiflcates of deposit for legal-tender not«8 (Sec. 5193, Rev. Stat.) ■■-•:-.-- - ■ • • -•• 22. Redemption fund witli U. ». Treasurer (not more than 5 per cent on circulation) 23. Due from U. S. Treasurer (other than 5 per cent redemption fund) 188, 000 147, 000 12. United States deposits - - - - 13. Deposits of U. S. disbursing offi- cers 2,250 14. Due to approved reserve agents (see schedule) r^ ocr. n? 15 Due to other national banks 54, 980. 07 16. Due to State and private banks \ and bankers ; 27,942.42 17. Xotes and bills rediscounted . . . 18. Bills payable Total . . 2,191,506.36 Total 2,19L506.36 :^~^^ujo^t.^«"^^^^^^^^^^^^^ the above 4' INVESTIGATION OF NATIONAL BANKS. 85 of the report hav»> Ikjcu carefully tilled out and fully and correctly represent the true st^tc of the several matters therein c<»ntained. Correct. Attest : State of Pennsylvania, County of Philadelphia. Sworn to and subscribed liefore me this 19th day of July, 1889 G. W. Marsh, Cashier. G. B. Haines, J. B. Jackson, Samuel Lucas, D^irectors. [^^■^^■] John W. Barron, Notary Public. Must be acknowledged before an otticer hiiving an otticial seal.— See act approved Feb. 26, 1881. [Fill all sche^lules, writing in the word 'none " wherever no amount is to be entered.] SCHEDULES. Loam and ditcounts. ■$ On demand, on U. S. bonds " . " " stocks, bonds, and other i»ersonai securities ....**.*.'. *.'. Ou time, papers with two or more individual or tirm names . " •' single-named paper (one person or linu) without other secnritv V' m' fi?2 " " secured by stocks, bonds, and other per.soual securities | 79' \it "s,-hedule? "'^'"*»''^'*'*' ^"^^ ^^^'^"^ ^^^ ^«*^t*^ security sanctioned by Sec! 5137, r! S.' (s^ On time, on mortgages and other real estate security notVanctionedbv Sec! '5137 * R S " (see .scheneNat'l f OK 86 INVESTIGATION OF NATIONAL BANKS. Exhibit T. No. of bank, 2291. [Use the l»lank Hues if necessary, but do not eraae or change any of the printed items.l Report of the condUion of '' The Keystone Natioiial Jiank;' at ^I^^^^^^^ the .State of renna.f at the close of business on the 30 day of Sept., 1SS9. Db. Cb. Resources. Dollars. 1. Loans and discounts (see schedule). 1,379, 006.55 i 2. Overdrafts (see schedurt^) ] 1, 503, 72 ; 3. U. S. bonds to secure «inulation (par value) — per cents, ■ 50,000 per cents 4. U.S. bonds to secure deposits (par value) — per cents I 5. U. S. bonds on liand (par value) — Liabilities. Dollars. 500,000 1. Capital stock paid in 2. Surplus fund ; ^^^^^ ,^ 3. Undivi-^l- ^^ per cents 6. Stocks, securities, .iud^ments, claims, etc. (see schedule) 7. Due from approved reserve agents (see schedule) I 80, 7 18. 29 | 8. Due from other national banks Iffi, 821 9. Due from State and private banks i |! andbankers i 45,351.40 j 10. liankinji lioHse. $ || n. Furniture and fixtures $ 4 . Circulat lug notes re- ceived from Comp- troller ♦ Less am't on hand and in Treasury for redemption t>r in transit $ 5. State bank circulation outstand- ing , 45, 000 12. Other real estate and mortgages owned (see schedule) 13. Current exjienseH and taxes jiaid . . 14. rremiiunon bonds for circuhition, !^ . Premunu on otlier U. S. bonds, $ 10,000 15, 373. 26 3. 999. 32 15. Che. 000 Silver Treasury certiti- cates $ ! Fractional silver coin.. $4,000 56, 000 20. Legal-tender notes 158. 000 21. Tnited States certificates of de- posit for legal-tendur notes (sec. 5193, Rev. Stat.) i 22. Redemption fund with U. S. Treas- | urer (not nmre than 5 per cent on circulation) 2, 250 23. Due from U. S. Treasurer (other j thanSpercent redemption fund). 0. Dividends unpaid 7. Individual deposits subject to check.. $l.35:»,509.20 8. Demand certificates of deposit $ 9. Time certificates of depo.sits $ 10. Certified checks $ 11. Cashiers checks outstanding $ 108,618.31 507.50 12. United States deposits 13. Deposits of U. S. disbursing offi- cers 1,462,127.51 14. Due to approvcil reserve agents (see scheue to State and ])rivate banks , ^ and bankers 15, 9<0. -3 17. Notes and bills rediscounted 18. Bills payalde *, Total 2.210,296.45 Total '2,216,296.45 I G. W. Marsh, cjish. of the Keystone National Bank Unlada., IVnna do solemnly swear that the above statement is true to thebosl of my knowledge and belief an.l that the schedules on back o tlie J^ort have been carefully filled ..ut and fully antl correctly represent the true state ot the several matters therein contained. • Correct.-Attest: ^^ ^ Marsh, Cashifr. J. B. Jackson, Hknky Van Beil, Louis Dkeka, Direxitort. SrATVi or VKSySYLVKSl A, Covntij of Philaddphia: Sworn to and subscribed b...ore n.e this 4 day of Octol>er, 1889. ^^^^ ^^, ^^^^^^^^ ^.^^^^^ ^^^^^.^ Must be acknowledge*! iKjfore an officer having an official seal. See act approved Feb. 26, 1881. INVESTIGATION OF NATIONAL BANKS. 87 (Fill all schedules, writing in the wonl ' none" wherever no aumunt is to be entered.] 8CHEDITLE8. Loans and DiscounU. On demand, on U. S. bonds * ^ '• '* stocks, iKuids. and other personal securities $ 56 104 00 On time, paper with two or more individual or firm naines $ ggg' goo 98 " " single-name paper (one person or firm) without other security --.'.. $ 343' 783 07 " " secured by stocks, bonds, and other personal securities '. . $ go' 318 50 " '' on mortgages and other real estate security sanctionetl by sec. 513^ R. S. (see schedule.) « On time, on mortgages and other real-estate securitv not sanctioned liv sec 5137 R S (see schedule) ' " ' ' ' ^ Total 1,379,006.55 Included in the above are — Bad debts, as defined in section 5204, Rev. Stat Other siis]tended and overdue paper Liabilities of directors (individual and firm) as i i) as payers. $ 7,192.06 $ 10,698.89 $ 76,202.83 Loans exceeding the limit prescribed by section 5200 of the Revised .Statutes, including atnounts in ezcest of tfas limit due from State and private banks and bankers. ' n None. None. From- StoeJcs, securities, judffment*, claims, etc. Balances due from or to approved reserve agents. To— Tradesmen's Nat'l, N. York. Chase, 70,610.12 10, 108. 17 Checks and other cash items. Checks and drafts on banks, etc., in this city Checks and drafts on other banks! ... 7. 949. 54 «>-l^/^'!^^'■T'■'^^'*"^ mter«*«.-- Average reserve f.»r last 30 days (in bank and with reserve agents) was cent! ^^'*' ' "^ balances. The highest rate of interest paid by the bank is 3 per Overdrafts. Secured : Standing Temporary .. 12 6 3 1 months u or over i. .i None. None. None. Unsecured : Standing 12 months or over. 6 " 3 ii (i Temporary 1,503.72 Other real estute and mortgages owned. Loans and discounts, secured by mortgages or other real-estate security. [Sanctioned by .sec. 5137, U. S. Revisear value) — ])er cents 6. Stocks, securities, .judgments, claims, &c. (see schedule) 1. Capital sto«k paid in. 7. Due from approved reserve agents (see schedule) 8. l)ue from other national hanks 9. Due from State and private banks and bankers 10. Banking house $ 11. Furniture and fixtures. . . $10, 000 2. SurT>lus fund '■i. Undivided profits. 4. (Mrculaling notes re- ceived from Comp- troller $ Less am't on hand and in Treasury for redemption or in transit $ Dollars. 500,000 'D5, 000 9, 007. 44 12. Other real estate and mortgages owned (see schedule) 13. Cnrrent expenses and taxes paid.. 14. Preuiium on bonds foreinulatiou, $— — ; premium on other U. 8. bonds, $ 131, 005. 76 86, .')21. 34 24, 704. 44 10, 000. 00 5, 985. 38 2, 999. 32 5. State bank circulation outstand- ing 6. Dividends unpaid. 15. Checks and other cash items (see schedule) 40,943.02 16. Exthanges for clearing house ' 122, 523. 66 17. Bills of other banks 12, 640 18. Fractional ]>apercuiTenthcial seal. See act approved Feb. 26, 1881. 4 [Fill all schedules, writing in the word "None" wherever no amount is to be entered.] SCHKDULES. Loans and discounts. On demand, on U. S. bonds " " " stocks, bonds, and otlier personal securities , On time, paper with two or more individual or firm names " " single-name paj)er (one person or firm) without other security... ... secured by stocks, bonds, and other personal securities . on mortgages or other real-estate security (see 8<-hediile) . Total. $ 60.984.22 $ 932,159.88 $ 298,607.16 $ 64,963.41 1, 356, 714. 67 Included in the above are — Bad debts, as defined in Section 5204, Rev. Stats $ 6, 784. 19 ] ^'"f'^*' ^^^*\ amount in each of Other suspended and overdue papers $ 8, 416. 21 }■ : "^.l^ uiree items, or write Liabilities of directors (individual and firm) as payers. .$56,203.84 in the word "none" if there is no amount to enter. Loans exceeding the limit prescribed by section 5200 of the Revised Statute.", including amounts which exceed this limit due from State and private banks and bankers. Name of borrower. Enter full ■ amount of : loan. Enter full Name of borrower. amount of loan. J no. Wanjunaker 1 93.250 I i None.' Stocks, securities, judgments, claims, er cents V. S. bonds on hand (par value) — per cents Stocks, securities, judgments, claims, etc. (see schedule) Liabilities. Dollars. 96, a.'iS. 68 82, 2;)G. 90 Due from ai»i>roved reserve agents (see sfhetlule) Due fron> natioDal banks Due from State and j>rivate banks and bankers 58,971.30 Banking house $ ! Furniture ant! fixtures... $10,000 i Capital stock paid in j 500. 000. 00 I Surplus fund " 95, 000. 00 Undivided profits 31 , 440. 21 Circulating notes re- ceived from Comp- troller $ Less am't on hand and in Treasury for redemption or in transit $ 5. State bank circulation outstand- mj Other real estate and m«)rtgage8 owned (see .schedule) Current expenses and taxes paid.. Premium on bonds for circulation. .$ ; i>remium on other U. S. bonds, $- 10, 000. 00 13, 037. 72 2. 000. 00 Checks and other cash items (see ' schedule) 9. 473. 68 Exchanges in clearing house | 71. 488. 07 Bills of othtr banks | 13, 000. 00 Fractional pa i)er currency, nickels, and cents Specie, viz- Gold coin $23,640 Gold Treasury certifi- cates $ Gold clearing-house certificates $30, 000 Silver dollars $ 5, 400 Silver Treasury certifi • cates *. $ Fractional silver coin. $ 2,685 6. 7. 8. 9. 10. 11. 12. 13. Dividends unpaid. Individual dej>osits subject to duM-k. . $1,191,745.35 Demand cei'titicat<'8 of deposit $ Time certificates of deposit $ Certified checks $ Cashier's checks outstanding $59,394.34 45,000.00 223. 00 Unitefl States de]>osits De]M>sit8 of U. S. disbursing of- ficers 1,251,139.69 9rt have been carefully filled out and fully and correctly rei>re.sent the true state of the several matters therein contained. Correct. Attest: Jno. Hayes, Cashier. G. W. Marsh, G. B. Haines, Saml. Lucas, l>ireetont. Statb of Pknna., County of Philada.: Sworn to and subscril>ed before me this eleventli dav of Mareh, 1890. [SEAL.] John W. Bakrox, Xotary Publie^ Must be acknowledged before an officer using an official .leal. See act approved Feb. 26, 1881. INVESTIGATION OF NATIONAL BANKS. 1)1 [Fill all scheflules, writing in tlie word "none" whei-ever no amount is to be enleied.j SCHEDULES. Loant and discounts^ On demand, on U. S. bonds $ " " " stocks, bonds, and other personal securities * "' Un time, paper with two or more individual or firm names " " single-name paper (one penson or firm) without other security " " secured by stocks, bonds, and other personal securities " •' on mortgages or other real-esi ate security (see schedule) $ 73, 699. 00 $874, 69;!. G8 $337, (too. 00 $ 77,052.00 Total I 1,363,444.68 Include*! in the above are — Bad debts, as defined in section 5204, Rev. Stat. Other suspendwl or overdue paper Liabilities of directors (individual and firm) as payees * 6 784 19 ^ Z -'ooi'io Enter the amount in each of these three * '^ items or write in the word "none'' $60 663 80 ** there is no amount to enter. Loant exceeding the limit prescnhed by xecfion oiO^J of the Revised Statutes, including amounts which exceed thitt limit due from State and private bankis and banlters. None. Stocks, securities, judgments, claims, i£c. Enter number -Nr-m.^^/if ..,^..«,„...f5/»,. Amount at , Estimated : State whether taken for shares of st^K. uomis, etc. ^^^ books. ; value. , tracted, " or otherwise. Balances due from or to approved reserve agents. From— To— Enter name and location of bank. Amount. Enter name aiul location of bank. Tratlesmen's Nat. Bk . .. Chase Nat. Bank 86,041.92 Chase 10, 313. 7G Amount. 7, 434. a-> "H Checks and other cash items. ('hecks and drafts on banks, etc., in this city Checks aiid drafts on other banks . . 9, 473. 68 Average reserve and interest. —Avar&ge reserve for last 30 n or in tran- sit $ 5. State bank circulation outstand- ing 6. Dividends unpaid 7. 8. 9. 20. Legal-t«nder notes 21. U.S. certificates of deposit for legal-tender notes (see 5iy3, Rev. Stat.) 22. Redemption fund with U. S. Treas- urer (not more than 5 i)er cent on circulation) 23. Due from U. S. Treasurer (other) than 5percentredemittion fund, 16, 173. 05 203, 722. 75 1, 360. 89 66, 760. 00 139, 000. 00 2,250.00 Total 2,033,659.38 15. Checks and other cash items (see schedule) 16. Exchanges for clearing house 17. Bills of other banks ; 5, 180. 00 18. Fractional i»apers, currency, niek- els, and cents 19. Specie, viz. : Gold coin $26,400 Gold Treasury certifi- cates $ Gold clearing-house certificates $30,000 Silver dollars $7, 000 Silver Treasury cer- tificates $ Fractional silver coin $3, 360 10. 11. 12. 13. 14. 15. 16. 17. 18. Individual deposits subject to check . . $1 ,236,845.24 Demand certificates of deposit $ Time certifli-ates of deposit $ (Certified che<;ks ■$ Cashier's <'hecks out- standing $ 77,011.95 Dollars. 500,000.00 100, 000. 00 10, 821. 57 45, 000. 00 5,186.50 United States deyiosits Deposits of U. S. disbursing ofli- cers Due to approved reserve agents (see schedule) Due to other national banks Due to State and private banks and bankers I 11, 370. 19 1,313,857.19 47,423.93 Notes and bills rediscounted. Bills payable Total 2,033,659.38 I John Hayes, cashier of "The Keystone National Bank of Philadelphia, Pennsylvania," do solemnly swear that the above statement is true, to the best of my knowledge and belief, and that the schedules on back of the report have been carefully filled out and fully an«l eorrectly represent tlie true state of the several matters therein contained. John Hayes, Caahttr. Correct. Attest. , ^ John Hayes, G.B.Haines, Louis Dkeka, G. W.Maksh, I/irectora. Must be acknowledged before an officer using an oftieial seal. See act appn»ved February 26, 1881. State of I'ENNsvi.vania, County of Philadelphia: Sworn to and subscribe*! before me this 2«th day of May, 1890. [»EAL.] John W. Bakkon, Notary Pullie INVESTIGATION OF NATIONAL BANKS. 93 iFill all schedules, writing in the word "none" wherever no amount is to be entered.] SCHEDULES. Loans and diiicounts. On demand, on U. S. bonds On (lemand, on stocks, bonds, and other personal .securities I $48, 754. 9;j On time, paper with two or more individual or firm names { gio] 09L 9;{ On time, single-name paper (one person or firm) without other securitv 333,' 507! 97 On time, secured by stocks, bonds, and other personal securities ! 81 j 635! 67 On time, on mortgages or other real estate security (see schedule) ^'otal 1 1,273,990.50 Inelnded in the al)ove are — Bad debts, as defined in section 5204, Rev. Stat .$.'>, 216. 84! ^"f"" *^? amount in each of thes( Other suspended and overdue paper 7, 013. 18 \ V^^*^ .f"].";,^'' ^^F"® '" ^^^ ^"" Liabilitiesof directors (individual and firm) as payers 61, 200. 00 "**"^ " *"^'*** '*^ "" J'>"«"'"t t< sse I to Loans exceeding the limit prcecHbed by section r>300 of the Revised Statutes, includiny amounts which exceed this limit due from State and j)rivat« hanks a?ui bankers. None. None. Stocks, securities, judgments, claims, <6c. Balances due from or to approved reserve agents. From— To— Enter name and location of bank. Amount. Tradesmen's, N. T ' $48. 1.55. 08 Chase, " 30,937.47 Checks and other cash items. Checks and drafts on banks, &c., in this city $16, 173. 05 Check and drafts on other banks ..-^fo^^f rew/re rtwrf ^«Y^r«*^-Ave^an:e reserve for last 30 days (in bank and with reserve agents) V as 2o,J\, per cent of deposits and bank balances. The highest rate of interest paid by the bank is 3 per cenc. Overdrafts. Secured : Standing 12 months or over. 6 it w •» ,•{ «« re8, 1890, addressed to Mr. Gideou W. Marsh, president of the Key- stone I^ational Bank. TlJEASl'RY DKPAKTMENT, Office of CoMriKOLLKK of the Cukkency, Washington, D. C, July SS, 1800. Mr. Gideon W. Marsh, President Keijstone Nat'wual Bank, VhiUuielphia, Pa. SiK : The report of an exiimiuatiou of your bank, made on the 3r(l instant, has been re(!eivetl. The tbilowing loans appear to exceed the limit prescribed by sec. 5200, U. S. Rev. Stat. : J oh 11 Wanamaker ^200, 000. 00 Estate of .John C. Lucas 57,bAi.b7 Thtise loans should be reduced to the lawful limit as soon as practicable. Please inform me when this has been done. The examiner states that the iirst-mentioned loan was reduced durmj^ the exami- nation by tlie payment of $50,0orts that it is likely that you will sustain a considerable loss on the paper of F. J. Primrose, amounting to $12,816.86, which has been extended. The loss on these items, as soon as ascertained, should be charged off; and until this is done no further dividends should be declared by your bank. It also appears that you have borrowed $230,000 from banks in Philadelphia on certificates of deposit and bills payable, all of which is secured by $310,378.87 of the bills receivable of your bank lodgted with these banks as collateral. In addition to this it appears that you have rediscounted $25,000 with the Chase National Hank of New York, making a total of $25,5,000 borrowed by your bank. This amount of bonowed money, taken in connection with the hal)itual shortage in your lawful-money reserve, make it appear that the business of your bank has been too largely extended, and this condition should be corrected as soon as practi- cable, first by the reduction of the excessive loans noted, and further by the reduc- tion of the volume of your excessive loans and discounts Avithin the limits of prudence and safety. ^ , • , 4. The necessity for such a course is urgent, as it appears from the examiner s report that the habit'of being frequently indebted to the clearing-house and the practice of borrowing from other banks to make good this indebtedness has had the effect ot causing your bank to lose standing w^ith the clearing-house committee, and in some measure to attect vour credit with your associate banks. A prompt and full reply to this letter over the individual signatures of your direct- ors, to whose attention you will please bring it for consideration, is respectfully requested. Respectfully yours, ^ ^ ^ * E. S Lacev, Comi)troller. INVESTIGATION OF NATIONAL BANKS. 95 Q. Did you get a response to that letter ?~A. I got a response to that letter dated July, 1800, which is as follows: [G. W. MarsL, president. John Hayes, caehier. Chas. Lawrence, assist, cashier.] ^oo« ^ .„«« ^ Keystone National Bank, i62h and 1328 Chestnut Street, Opposite U. S. Mint Hon. K. S. LACET, nuadelphia, July 2911,, 'l890. Comptroller of the Currency, Washington, D. C: . ' Dear Sik: Your letter of July 28 was received this a. m. and read to our full board at their regular meeting. In regard to the loans in excess of section 5,200, we would say that the loan to Mr. \\anan.aker has been further reduced to 100,000, and he has promised to re. Exchange '^67. Interest Premiums Rent .«* . — Protit and loss .. . 7,355. Dollars. 500,000.00 100,000.00 87 51 73 11 Dui' from other national banks 12 Dtie from Slate banks and bankers 13! Exchanjics for clearing house 14. Checks on other banks in same place ,'*,■"■ i 15. Bills of other national banks 16. Minor coins 17. ('ash items , 18. Reserve fund in bank, viz : Frartioual silver . . $0, 871. M Silver dollars 407. (X) Silver Tr'y cert's . 4, 608. 00 Gold coin Gold Try cert's . . Legal tender notes U.S. cert's of dep. C.H. certs of dep. Diu' to app'd reserve agents, viz: Due to other national banks Due to State banks and bankers . Dividends unpaid Individual deposits, viz : Subject to check $1,077,178.99 Demand certi f " s 30, 000 Time certificates Certified checks Cashiers checks 19,289.11 '7,.'H»4.6."> 902. 57 1,306.00 3, 732. 50 400.00 7, 270. 00 45, 000. 00 15, 000. 00 41. 653. 01 178, 512. 38 8, 11.5. 14 130,602.31 I 42,989.31 ' 1, 555. 00 1, 753. 03 434.00 9. United States dei>osits 10. Deposits of U.S.disbursingofficers 11. Circulation received $45,000 L ess on hand and ret'nd . 125 12. St«febank circulation outstanding 13. Notes and hills redisrounted 14. Bills payable 1,107,178.99 44. 875. W) 25,()00.66 200,000.00 5 ].. c. re**• '•* 22. Cash short (recent). Total 82, 'M9. 00 2, 250. 00 10,458.38 302. 00 2,006,056.32 15. Cash over. . Total 2,006,056.32 Supplem^^torn sheet U, examinf^ report on -'Ken'tone Notioml Hank," PhiladeU ^^ phta, Pa., of July 3, 19^0. Hon. E. S. Lacey, Comptroller of the Currency, Washinffton, D. C: Sir- Althous£h some improvement is evident in the general coml it ion and conduct nfthis bank shice the election in January last of Mr. CI. W. Marsh to the presidency, ^Jil^its IbrLr 11^^^^^^^ relations with the clearing house, its habit of being wi Hn[lv ill debt there and its practice of as often borrowing, generally on due- hrfrom other banks a large proportion of the funds necessary to discharge such huUtXesr^^^^ tendency to overloan, and to eeu brought^nto^P discredit wfth many of its aB8<»ciates in the clearing house. A close scrutiny of its methods of computing its reserve as given in its moniino- rrports to the clearing house maujiger lately developed the fact that it has been the practice of the bank to count as a part of its reserve clearing house checks on other banks, thus enabling the bank to appear to have its reserve when, in fact it has been short of its resen^e by the amount of such checks. This error, I think, was corrected, as since the 3, ^^' ^^ C. Loans and discounts secured by real-estate mortgages or liens upon real estate - - - .,, tyr^ on D. Demand loans secured by other collaterals ««' St 5fi E. Time h)an8 secured by other collaterals ee,04<.oD Total notes and bills discounted h ^l'^, 424. 44 Included in above are— . .^^. ., ^t t> • i F. Bad debts, as defined in section o204 of the Revised Statutes in'?rT*n G. Other 8us])ended and overdue ])aper H>, ibi. ii H. Liabilities of directors (individual and firm) as payers 109. (>0;,. 8,3 LOANS EXCEEDING THE LIMIT PRESCUIDED BY SECTION 5200 U. S. REVISED STATUTES. John Wanamaker (own order $100,000) .- - - - ^200, 000. 00 Reduced by $50,000 during this examination, on assurances received of further reduction within a week (from July 16) to legal limit, Estate of J(»hn C. Lucas (late prest. of bank, dec'd) $57, 6;^. 67 Note of administrators, on demand, representing a balance from some $90,000 (dif- ference paid) of his obligations, direct and indirect, assumed by them; administra- tors say estate is entirely solvent and much more. Note — ITnder the head of General Remarks the examiner should mention the character of eollaterals held, and give a general dcseription of the loans »"d < jS' counts, overdrafts, stocks and bonds, other real estate, cash items, expenses b is payable, or other accommodations songht by the bank, and the necessity theieloi He should schedule all excessive loans obtained by any corporation, <'0"'Pany, m firm, thnmgh its stockholders, members, officers, or employes, tor the benefit ami use f sich companv, corporation, or firm, as may appear from the credits such account has received, or otherwise, and shonld describe the manner in which such accommo- d tions were ol>tained. He shouhl note any deficiency in the lawlul '""ney reserve at date of examination or during the precoding thirty days, aud its general condi- tion since the last examination.] GENERAL RKMAHKS. Overdrafts, 101 acs v*:a: 4iu nn7 17 38 acs. made good up to to-day (.Inly 16) '^^-^^^'^^ Balance probably good, less, say $1,000 . ... . ... .... - - - $(i, 050. 85 Memo.— Still further reduced to-aid, mainly a loss - - . - --;-•:-■•---,'•';* ' " 2. Due May, 1888 (many previous renewals), '' The Amico 1 nblisli- in<' House" (failed), by Charles Lawrence (clerk in the bank), trustee, good for some part from plates, etc., last interest paid May, 1888 ^>-^^''-^*^ $10, 582. 82 Both should be gradually charged off. INVESTIGATION OF NATIONAL BANKS. 99 Other past-due paper: Due October and November, 1888, 2 notes (Wright, $5,000, in suit), hopeful $5, 150. 00 Due 1890, 11 notes, recent and (less Keystone Watch Club Co., failed $2,000) good 5,011.11 $10, 161. 11 Bank has likewise under discount, not due, $1,500 more of the Keystone Watch Club Co., equally doul>tfnl. Extended paper, likely to be mainly a loss : F. J . Primrose, renewals, interest paid $12, 816. 86 Balances with other banks, including reserve agents, have been verified l>y corre- sjiondence; also all loans to bank. Interest, at 2 to 2^ per cent, paid on some $250,000 deposits. Average reserve for last thirty days, estimated, 19 per cent. General condition of reserve, short. This bank continues to act as the active depository of the Philadelphia city treas- urer, authorized by vote of councils, with an average balance (also authorized by councils) of $400,000; balance to-day, $.399,000. Certificate of deposit. Loan of $30,000 from Farmers' and Mechanics' National Bank, Philadelphia, with $40,000 bills receivable as collateral. Bills payable : Fourth Street Nat. Bank, Phila $ioo, 000 Seventh Nat. Bank, '' 70000 Com Exchange Nat. Bank, '^ 'VoOO Drexel&Co. '< '.*.:;'.;:: "s^OOO With $270,378.87 bills receivable as collaterals $200 000 Rediscounts : ' Chase Nat. Bank, New York |25 000 * Please see ''Supplementary sheet." W. P. Drew, Examiner. To the Comptroller of the Currency, Washington, D. C, Q. Was any dividend declared by the Keystone Bank after that letter was written?— A. The report of Mr. Drew, of Febrnary 2S, 1891, shows that the date of the last dividend was :November 4, 1890, 3 per cent. Q. So a dividend was declared, according to your letter, in November, 1890?— A. Yes, sirj according to the report of the examiner. Q. Look at the report of July, 1890, and see if there is a dividend in that report, and if so, give the date.— A. According to tliis report, a divi- dend was dechired May 5, -1890, of 3 per cent. At this point the committee adjourned until Friday, April 29, 1892. COMMITTEE ON BANKING AND CURRENCY. Washington^ B. C, Friday, April 29^ 1892. The committee met at 10 a. m. Present: The Chairman and Messrs. Cobb, Cox, Cate, Henderson, Busey, Sperry, Walker, and Dickerson. On motion of Mr. Walker it was decided that hereafter six members ol the committee should be sufficient to constitute a quorum in this inquiry. A If 1 i- ii I - 100 INVESTIGATION OF NATIONAL BANKS. tilt I !, IM TESTIMONY OF E. S. LACEY, COMPTROLLER OF THE CURRENCY— Resumed. The Chairman. We were at the point, in your exaniiuatiou, looking at the letters of July, 1890. We will recur to that. Will you proceed and state what communication you had next with regard to the Key- stone Bank, whether it came from the examiner or from any other source? Mr. Lacey i)roceeded to read the letters of his Department in relation to the Keystone Bank, copies of which he will furnish to the committee hereafter. During the reading of the letters the following proceedings took place : By the Chairman : Q. Did you reply to the letter of August 2, 1890 f— A. No, sir. Q. What is the* next communication ?— A. The next is a letter from Mr. Drew, dated August 2, 1890, ui which he alludes incidentally to the Keystone National Bank. Philadet.phia, AngmtS, 1800. Hon. K. S. Lacey, Comptroller of the Currency, WaHhittfjton, D. C: Sir: I have the honor to state that your instructions to the Keystone National Bank of tliit* eitv, with letters to the DirectorH (individually) of that bank, callin«r their attention tlioreto seem likely to have the desired ofteet, and I hope that before many days I shall be able to report a marked change for the better in the condition of tlio bank. I am requested by those of the C. H. (Jomniittee now in the city to thank you, for them, for the ready and effective cooperation rendered by yonr ottice. Very respectfully, W. P. Drew, Nat. Hank Examiner. Philadelphia, Aug. 2, 1800. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C: Sik: For the last several weeks I have been hard at work in my district to place tlie work here in such a stage of forwardness as would enable me, with your permissicm, to take a vacation some time this month at my obi home in Maine. I have given particular attention to the banks which have required special care in examination— notably ''The Keystone National Bank" of this city, and also ''The Spring Garden National Bank." ' My report on the former is already before you, and that of the latter will be forwarded to your office early next week. If there should seem to be anything in either report which requires further atten- tion on my part before goin«' away, I would thank you to give me the required in- structions as early as the lOtti inst., if practicable. I intend, in a few days, to visit the 1st National liank of Hightstown, N. .L, as directed by your letter of a short time ago, and can adapt the time of my vacation to conform to any wishes you may have for my services elsewher(^ before I go. I woiihl likewise be happy to render any service within any of the banks in Maine or on the line of my journey to and from Augusta, where I puri>ose, with your per- mission, to make my sojourn. I am also at your call should yon desire that J visit your othee in person at any time on any matters connected with my duties. Yours, respectfully, ' ^ "^ W. P. Drew, Nat, Hank Examiner. Q. Does that letter of Angust 2, from Mr. Drew, refer to the report of the 3d of July?— A. Yes, sir. Q. There was no report between tlie 3d of Jidy and the writing of that letter ?— A. No, sir. It will be remembered that this period was one of great stringency in the money market, when the probable fail- INVESTIGATION OF NATIONAL BANKS. 101 ure of the JJaring Brothers was announced on tlie 15th of November, at which time stocks fell off remarkably, and money, if 1 recollect aright, went to 182 per cent per annum. Q. Is there no communication between those dates mentioned calling attention to the condition of the Keystone Bank?— A. No, sir; I think there was nothing. * ' ^^^^^^ Q. We would like to be sure of that.— A. I can only say I have required the clerks in charge of the correspondence to produce every- thing to and from the office, and to and from the examiner, for this period 111 relation to the bank. ' By Mr. Payson : Q. Your recollection is the same?— A. Yes, sir. By the Chairman : Q. Tell me where your correspondence relating to these matters is kept, and how it is kept. Is it kept in more than one place ?- A Yes ^1' ^" *^<^/o'i*f Pondence with the examiners in relation to'reports wi?h th. ?hfi'f i ^l ^y^^''^'^'^^ of reports, and are afterwards filed with the chief clerk in the regular files of the Bureau. All the cor- respondence relating to insolvent national banks is filed in the division ot insoh^nt banks. All the unofficial communications, or those of a hi m V own roo^^^^ '^""^ '" ^^^""^^ ^^ ""^ ^'''^''^^ secretary in the files Q. Have you directed a search to be made in all those places '—A I have m those places, and in every other division of the office. I have lX^::!tf^ ^"^^^^ f ^^^^^^ *^^«^ communications, directh g mm to Juriiisli Hie correspondence. Q. Tliat is of some little imijortanee. Will you jri ve me the names of the sentlemen who h.ye charge of that correspondence/aud upon Xm ot-"enortv1r^^^^ ff-^h^'- t'-T^'^ ^P''*"' «"-*■ of tlifdiS w ?}? im', l^i'- ^'\^.- iMkms, cliiet of the orsanization division; Mr W. W. Hdridge, chief of the issue division; Mr. George W Eobert son, superintendent of the redemption division; Mr. f. () ■EbaiiHi ^^Twhn" '"">'''"' •'""! ^- ^- Stoddard, in charge of iusolvm.t talks! stittrd'him rbafir ^•"'^^''^'-y •-^- '^^'•- T- !•• Kane. I have in- fi,.»:..wwr ''*'*""'•** '''*''f^,*^" daily <»mmnnication between your of- flce and the examiners at Philadelphia during the (iiuincial scare Wa^ IX^tT «'""»V""'"'*'T ''*•' ^""' exaininers'iu other .-idestil. fo a general way. I can not recall just how general it was; but examiners ^Srelei^eUier ""^ ^""^ "'^™^ ^ ^ ""^ cond^ifiJ^SlL^ cit^es^l^Af Yes ^'s^r*"^*'^" precaution taken at that time in the reserve By Mr. Oox: faetthnf H,l '^t*r" ^h'«h was read, where attention was called to the loans tt«n*'"^*®"'""''f:^''?'"»°'^^'°l*tod the law in getting larger weTe those plrtier''" ^^ '""^ '*'"'*"' ' """"' ""^^^ '^""^ ^1»'> and Ml? Lueari57,m '''^*"^ "'*"'' "^ ^''^"' ^^'- ^anamaker $80,000, hibit No^V ^Th ^'"f """I to this report of October 2, 1890, being Ex- contihK t .'.f"'/'f*®' '"'J,'^'* «e«n»sas if the report as now ,, resented was re lut^ 3h """' '" f=?f' ' '•"'>»^« schedules.-A. The report Ti m,'"""", ami they entered it as correct. V. ihen the report was corrected ?— A. I suppo.se .so. • 'I r' riMMIMHt 102 INVESTIGATION OF NATIONAL BANKS. J 1 Exhibit 1, April 29, 1S92. N(.. of Bank, 2291. [Use tho blank lines if necessary, but do not erase or change any of the printetl items.] {eport of the coudilion of " The Keystone National Bank,'' at Philadelphia, in the State of renna., at the clone of business on the 'H day of Ootoher, 1890. I Cb. llesources. 1 . Loans and discounts (see schedule) . 2. l)v«Tdr!itts (see scbe«lule) a, r. S. l»i>nds to secure circulation (par value) — per cents — per ivftntfl ..->..•■ «••••••-•-••••••••■ 4. U. S. bonds to secure deposits (par value) — i>er cents 5. U. S. bonds on hand (par value) — per cents 6. Stoika, securities, judgments, claims, &c. (see schedule) 7. Due from approved reserve agents (see schedule) 8. Due from other national banks... 0. Due fnim State and private banks and bankers 10. Hanking house 11. Furniture and tixtures 12. Other real estate and mortgages owned (see schedule) i:*.. Current e.vpenses and taxes paid. 14. Premium on bonds for circulation $ ; premium on other U. S. iMUids, $ Dollars. 1,157,924 54 1,631.24 50,000 15. Checks and other cash items (see Hchedule) 16. Excdiiuiges for clearing house 17. Bills of other banks 18. Fractional paper currency, nick- els, and cents 19. Specie, viz: Gold coin ? 24,000 (Jold Treasury certifi- <;ates $ Gold clearinghouse cer- tificates... $ 35,000 Silver dollars $ 9, SOD Silver Treasury certiti- cates $ Fractional si ver coin.-.$ 2,200 104, 796. 59 187, 655. 43 ;{2, 398. m 10,000 11, 527. 72 1,000 34, 175. 77 140,631.04 7,500 2, 1?J. 84 Liabilities. 1. Capitail stock jiaid in — 2. Sundus fund 3. Unuivided profits. 4. Circulating notes received from Comptroller Less am't on hand and in Treasury for redemption or in transit Dollars. 500,000 100,000 28, 509. 74 5. State bank circulation outstand- ing G. Dividends unpaid 7. Individual deposits subject to check . .$1, 137, 706. 14 8. Demand certifi- cates of dei)Osit . . .$ 9. Time certiticates of deposit $ 10. Certilied checks 11. Cashier's checks outstanding; tell er-8 d uc bifis $ 84, 389. 40 45,000 1,004 20. Legal-tender notes 21. I-nited States certificates of de- jmsit for legal-lender notes (Sec. 5193. Rev. Stat.) 22. Kedemption fund with TJ. S. Treasiirer (not more than 5 i>er rent er $14, 293. 64 Liabilities of directors (individual and firm) aspayesr $47,200 Enter the amount in each of these three items or write in the word "none" if there is no amount to enter. Loans exceeding the limit prescribed by section 5200 [of the Revised Statutes, including amounts which exceed this limit due from State and private banks and bankers. Name of borrower. J. Wanamaker Est. J. C. Lucas , Enter full amount of loan. .$80, 000. 00 $57, 736. 18 Name of borrower. Enter fiUl amount of loan. None. Stocks, securities, judgments, claims, <£c. Balances due from or to approved reserve agents. Enter name and location of bank. From— Tradesmen's N. Bk Chase N. Bk Amount. | Enter name and location of bank. I Amount. 51, 655. 45 53, 141. 14 To— Cheeks and otiier cash items. Checks and drafts on banks, &c., in this city Checks and drafts on other banks 37, 175. 77 Average reserve and interest.— Average reserve for last 30 days (in bank and with reserve a«rentm Je'^cent?' ^' """^ '^'^'*"' ^°* ^""^ ^^^^'*'' '^^^ ^^igliest rate of interest S by thrban"k°s 3 Overdrafts. Secured : Standing 12 months or over. ^' g 11 ti Temjwrary Unsecured : Standing 12 months or over. 6 4; .. Temporary 1,631.24 Othet* real estate and mortgages owned. None. Loans and discounts secured by m-ortgages or other real estate secunty* None. Indorsed: [Banks will not fill up iudor.sement.] ^'o. of bank . Report of The of , , 18_>. m fit \ X ii 104 INVESTIGATION OF NATIONAL BANKS INVESTIGATION OF NATIONAL BANKS. 105 By Ml. Gate: Q. Ill the letter you read, did Mr. Drew say tliat the sales in Mr. Waiiamaker's store amounted to $70,(M)0 a day"? — A. Yes, sir. They are stated at $1,(M)(),()0(» a mouth. Phiij^delphia, Nov. 20, 1890. Hon. E. S. Lacey, Comptroller of the Cnrrenvy, Wmhingtony I). C: 8iR : I have the honor to report that the late fiuancial disturbances have as yet not affected seriously any of the national banks in this city, although the Clearing- House Association began yesterday to issue loan certificates to such banks as (lesiro the same. The aniouut of su«'h i-ertiticates issued to the close of business this day is some $4,500,000. That the banks will almost universally apply for them is prob- able. This will enable them to aid their borrowers and to pay balances with the clearing-house without employing money. The failure here to-day of " Walker Brothers" was announcess. Banks all right. W. V. Drew. [Telegram.] Philadelphia, Nor. 25, 1890. Hon. E. S. Lacey, Comptroller, fVaHhinf/ton : Situation still improving and better feeling prevails. W. P. Drew, Nat. Bunk Examiner. Philaua., Pa., Nov. 25, 1890. Hon. E. S. Lacey, Comptroller of the Cnrrency, Washington, D. C. : Sir: I have to report that the financial condition here has steadily im]>roved. The stock market is stnmger, and while money is very scarce, the banks are able to ren- der accommodations which are necessary to prote ery respectfully, t ble >N'. P. Drew, -V. li. Exmr. Shonld it be necessary to telegraph me to-morrow .Ini-inji biiRine^s hours iile.se »ei,,l .are Karn.ers & Mochai.i.-s' Na't. Bauk, afterwards u.y house;3;93« Chitn'i.t St! m mtm m 106 INVESTIGATION OF NATIONAL BANKS. ITeleijram.] ^ ^^„^ Phila., Dec. 1, 1890. Hon E. S. Lacey, Compt. of Ctin'ency, Wafth'n : Run continued until close of business. All demands promptly met. W. P. Drew. [Telegrara.] Hon. E. S. Lacey, Conir. fyaah'n : Run renewed this morning. Prospects better. [Telegram.] Hon. E. 8. Lacey, Comptroller' of Currency, Waaiyn. D. C: Run practically over and l»auk victorious. Phila., Dec. 2y 1890. W. P. Drew, Exmr. Phila., Dec. 2, 1890. W. P. Drew. Philadelphia, Dec. 1, 1890. Hon. E. S. Lacey, CompiroUer of the Currency, Washington, D. C: Sir: I teb'graphed you twice to-day of the ''run" on ''The Keystone Nat. Bank" of this city. When the doors closed at three o'clock the bank had paid df])OS- itoi-s aouiti' -^100,000, but there was a large gathering, piobably of 100 people, still claiuorin**- for their money. The directors and some friends of the bank are in session to-night deliberating whether the bank shall open to-morrow morning or not Unless arrangements can be etfected by which the bank can have a large sum of money— not less than $100,000— \t is probable that tlu^ bank will not open. The situation here has been very much aggravated by the occurrences of to-day, and rumors are rife of intended ''raids" on some of the other banks here. The city treasurer has a deposit with "The Keystone Nat. Bank," $400,000. He did not draw on that at all to-day, and it is understood that he will not do so for a short time longer. The feeling here is one of much uneasiness, particularly among depos- itors who seem to have lost confidence in all moneyed institutions carrying deposits. I will telegraph you freely to-morrow and write a report of the day's events affect- ing the situation here. . . X ^Xl . 11 I send you an '^Evening Telegrajdi" of to-day, giving an account of the trouble at the Keystone Nat. Bank. Very respectfully, •^ ' ^ ' W. P. Drew, Exmr. [Telegram.] Hon. E. S. Lacey, Comptroller of Cnrrency, Wash.: Run is persistent, result in doiibt. Phila., Dec. 1, 1890. W. P. Drew. Treasury Department, Office of Comptroller ok the Currency, Wanhhuiton, D. C, December 1, 1890. Sir: It appears from the report of condition of your bank on October 2, 1890, that the following loiins in excess of one-tenth of its capital stock have been made, viz: J. Wanamaker '^S'SSS'JS Est. J. C.Lucas 57,7iJb.l8 Section .5200, United States Revised Statutes, prescribes that "the total liabilities, to any associatiorroweital stock of such associaticm actually i)aid in." Respectfully yours, Mr. G. W. Marsh, President Keystone National Hank, Philadelphia, Pa. E.S. Lacey, Comptroller. INVESTIGATION OF NATIONAL BANKS. 107 Treasury Department, Office of Comptroller of the Currency, Washington, D. C, December 1, 1890. Sir: In your report of condition for October 2, 1890, the item of "checks and other cash items " is entered on the face of the same at $34,175.77, while the schedule on back shows an amount of $37,175.77. You are respectfully requested to forward a correct schedule of the items com- posing the amount, at your earliest convenience, and also to see that future reports are correct in this respect. Respectfully yours, r. m. Nixon, Mr. John Ha.^s, ^'^"'^ Comptroncr. Cashier Keystone Xat. Bank, Philadelphia Penna. Treasury Department, Office of Comptroller of the Currency, Washington, D. C, December 1, 1890. Sir: The report of condition of your bank on October 2, 1890, is received in which no entries appear in the following schedules on the back of the report, "Bad debts " as defined in Section 5204, Revised Statutes. ' Please inform me by return mail what amounts, if any, should be entered in these sciieduies. You are respectfully requested in future to fill out all schedules on the back of the report, writing in the word "none" where there are no items to be entered. A careful compliance with this request will save correspondence. Respectfully yours, R. M. Nixon, Mr. John Hayes, ^'^"'^ Comptroller. Cashier Keystone Nat. Bank, Philadelphia, Penna. Philadelphia, Dec. 2, 1890. Sir: The run on the Keystone National Bank has ceased to-day at one o'clock J he bank met every demand promptly, and a considerable amount' was received on deposit to-day. It is the opinion of the C. H. committee, as well as all concerned that the excitement is passed. ^xntu. As soon as I am able to obtain the facts in detail relating to the inception and progress of the affair I will communicate them to you. Comptroller of the Currency, Washington, D. C. December 4, 1890. Dear Sir: It is, as I know, your custom to make frequent calls upon banks under tio^. ^"If iv.^f ,<^»i at times when you are not engaged in making regular examina- tions Has It been your practice on these occasions to call for their balance sheets ^«Mn,^oIf "?^'' ?"? V'^Vepi giving information as to their condition, and has any catedf '*^-'®^^®'^ to giving you tree access to their affairs in the manner indi- Very respectfully, e. S. Lacey, Mr. W. P. Drew, Comptroller. National Bank Examiner, 3939 Chestnut street, Philadelphia, Pa. Hon. E. S. Lacey, Philadelphia, Dec. 6, 1890. Comptroller of the Currency, Washington, D. C: "c^asl^'lniVu,!^'' ^^^^^f ^? r,^*'l?«^ herewith a statement showing the condition as to ^dhiflt m1 ^91^^'^' ?^*^'^ Keystone National Bank of this city on the 1st and -a mst (days of the run) and at close of business to-day. «"iinp]l il ? ^^'^^ t^"^* '^'^''i"^' *^'^ ''^""'^" the bank paid in deposits $374,000, and has gained m deposits since the run $124,000. f

0 ?ill w 1 ^ith the committee of $450,000 bills receivable, having previoiislv (\ov To o;lw .f ?"* ?^^'^ ^" *^'^l^««i* of $200,000 bills receivable." ^ ' ^ ' flesh i\elaJu^'^l during the run, three depositors ( Avo of them directors) placed c»u iieposits of money m the bank, in amount $70,000. >l 'W ,. l |.UJ ' Jt»J 108 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 109 Tin- rit.v fci«}iHurer concluded to make no draftw on his deposit of $1(X),000 in tlic bunk. This run was caused by ruinoivs which have been in circulation lor several weeks, and especially during the present financial stringency aflfccting the s(dvency of the bank, alb^oing large loans of a doubtful character by 'the bank, referring to the debt of the estate of John C. Lucas, dec'd. late president of the bank. This it is nuder- 8to(Ml will b(^ ])ai •' " Deposits 653,' 0(X> Dec. 6, 3 p. m. Cash in bank $19,000, N. Y. $31.000 50,000 " '* Deposits Tn\m) Clearing-house balances : 10 a. m., Dec. 1, Dr 95.000 " '' Dec.2,Dr 270,000 " '<■ Dec. 3, Dr 102, (XM) '' " Dec. 4, Dr 42,000 " '' Dec. 5, Dr 17,000 " '^ Dec.G,Dr I^^'cKK) TUEASL KY DePA KT.M KNT, OfFK'I: of COMPTROf.LER OF THK CuilHENC^V, IVanhinqion, J). (\, Iter. S, 1890. Mr. G. W. Marsh, President Kei/stone yulional Bank, Philadelphia, Pa.: SlU: Yon are respectfully informed that a copy ot* the list of the names of the shareholders of your association for the current year, as required by Section 5210, U. S. Kevised Statutes, has not been received at this othce. Blanks for this purp<»se were mailed to the cashier of your association in .June and in August last. Another blank is enclosed herewith, which you are requested to have promj)tly executed (th inst. There is much ai>i>reheu8iou felt that mercantile houses will l)e seriously embar- rassed unless the money market beeomes nunh easier, of which there does not seem to be any prospe^ ^^^^^^^^ ^»«^' that on that day ''The W.fs tern Nat navrn.n/-^*''^ ^"""^ '^"* *^ "'^^^^ Central Nat. Bank" of this city by exmess for latter was IcceAid^ '''" '^''^^^''' '''" ^ '^^""^^ ""^ ^^^ ^'^^^ "^ payment, which inak^era's^rrno^^^^^ implication, in the same article in the Sun to John Wana- f r as reported embarrassed is likewise wholly without foundation. h\ m i vsa 110 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF national" BANKS. Ill 'I ^ I bavo learned coiifidentially from undoubted authority that the amount of that gentleman'8 pa]>er outstanding is very much less than usual at this time of the year, and that his aflaiiH are in a very comfortable position. His retail store here is bringing daily from sales at the counters more than $70,000 cash. The receipts last month were largely in excess of $1,000,000, and this month will reach $2,000,000. He is regarded here by the banks as entirely prosperous and sound. Very respectfully, ^^, ^ ^^^^^ Xaf. Bank Examiner. p. S.— The settlements at the clearing house of the Keystone Nat. Bank during the week have been satisfactory, and it is recovering quite rapidly from the deple- tion caused by the run. [Telegram.] Philadelphia, Dec. 16^ 1800. Hon. E. S. Lactky, CompiroUn', JVaxh inyfov : Situation much improved. Better feeling all round. Moris & Smith, brokers, failed, three hundred thousand. in/ . L . UI'EMr . [Telegram.] E. S. Lacky, Comptroller, IVashiuyton : Situation continues to improve. PiiiLADELPiiiA, Dec. 17, ISOO, Clearfield failure affects none of «mr banks. W. P. Drew. Treasury Depautment, Office of Comptroller of the Currency, Washington, December 17, 1890. Mr. John Hayes, Cashier Kcifstone .\V//7 Hank, Philadelphia, Penna.: Sir: Proof of publication of the report of the condition of your bank, as made to this oific*^ at the close of business on Thursday, the 2nd day of October, 1890, has not been received. . . ^ ^. , -xi m Your attention is particularly called to the requirements of the law with regard to Ibrwardin*- reports and to the penalty for failure. (See 8ectier centum of its deposits, and whenever tlic lawful money of anv other association shall be below fifteen per centum of its deposits, such association sliall not increase its liabilities by making any new loans or dis- counts otlierwise than h^ discounting or purchasing bills of exchange payable at sight, nor make any dividend of its profits, until the required proportion, between the aggregate amount of its deposits and its lawful money of the United States has been restored. And the Comptroller of the Currency may notify any association whose lawful money reserve shall be below the amount above required to be kept on hand to make good such reserve." , It is also observed that the average reserve of your bank for the 30 days preceding the date of report (10) was below the per centum of deposits required by law Respectfully, yours, E. S. Lacey, Comptroller. By Mr. DiCKEBSON : Q. When did this bank suspend— as I liave lost the date?— A. It was closed by my order on March 20, 1891. By the Chairman : Q. I want to get some figures into the record at this point. I will take the October report, and you will take this report of December, and we will compare them. The report of condition on October, 1890, re- ports the amount of discounts at $1,157,124.05.— A. The renort of December 19 stated tlie amount at $873,134.72. Q. Overdrafts, $1,631.21.— A. By this report it is $23,994.24. Q. Amounts due from approved reserve agents in the October report IS $104,796.59.— A. This report says $40,810:24. ^ Q. Due from other national banks, $189,655.42.— A. Bv this renort it is $61,884.30. ^ lo icpun Q. Due from State and private banks and bankers, $32,398.63 —A This report says $46,701.67. ' ^o^'oS^^?^^"" ^"^'^ ^^^'^"^ ^"^^^ ^^^^^^ $34,175.75.— A. By this report it is foy,o20.4D. Q. IteiAS of exchange for clearing houses, $140,631.04.— A. The sum Here is «|pJJ7,t)o^,oo, ^n^n.?^"^ ^^ ^*^®^ ^^^^^^ $765,000.— A. By the December report it is Q. Fractional paper currency, nickels, and cents, $2,177.81.— ^A Bv the December report it is $1,351.46. ^ Q. The specie is $71,000.— A. In the December report it is $5,756.50. re ) t 'r* «? legal tender notes is $139,000.— A. In the December Q. Take the other side of the account; liabilities, surplus, $100,000 in October.— A. In December it is $100,000. i , ^ ,infv $14 '84^905''"^'^'*^^^ ^'""^^^'^ ^^''^ '^ October, $28,569. 74.- A. December Q. Dividends unpaid^ $1,004.— A. In this report it is $6,486. W. ihe aggregate of individual deposits, cashiers' checks, or tellers' due bills by the October report is $1,222,095.50.— A. By the Decem- ber report they are $618,199.17. xxcA^ecem OctobeTrf ^rt^*'^"^^ ^^ ^ difference there of $600,000 in favor of the By the Chairman: in ti;e'Decl^^^^^^^^ "^""^'^ I13,721.-A. No an.ount is stated De1e£/rlK^^ "'"' ^^ $1,953,664.08.-A. The be^^Pnnrf^'^'r'xT''^^^''''^?''''?^'^"'^ the limit disappears in the Decem- "ci lepoit.— A. 1^0 excessive loans are stated in the Decembei report. in w ■. l\ 1 '1 'I, il 112 INVESTIGATION OF NATIONAL BANKS. Exhibit 2, April 29, 1892. No. of bank, 2291. [Use tlie blank liue» if laoc^ssarj', but do not erase or cbaugo any of the printed items.] Kepori of the cimdiHon of '^ The Keystone National Bank," at Philada., in the State of Penna., at the close of business on the 19 day of Decern., 1890. De. Cs. Resources. 1. Loans and discounts (see sebedule) 2. Overdraft.s (see 8«'bedule) 3. V . S. bonds to secure circulation (par value) — per cents, — p(i!r (!ent« 4. U. S. bonds to seture deposits (par value) — per ceuta 5. V. S. bonds on hand (par value) — per cents 6. Stocks, securities, claims, etc., (see schedule) Due from approved reserve agents (see schedule) Due fnnn otber natitmal banks Due from State and private banks and bankers 10. Banking bouse $ 11. Furniture and fixtures $ 8. 9. Dollars. 873, 134. 77 ! 23,994.24 : rK),000 12. 13. 14. 15. 1«. 17. 18. 19. Other real estate and mortgages «»wne«l (see schedule) Current expenses and taxes paid. . Premium on bonds for circulation, $ Premium on other U. S. bonds, $ 40,810.04 «1,884.30 14,701.87 10, 000 9, 486. ai Liabilities. 1. Capital Block paid in. 2. 3. 4. Surplus fund tlnaivided profits. Circulating notes rweived from Comptroller •$ liess am't on hand and in Treasury for ro«lemption or in transit $ State bank circulation outstand- ing 6. Dividends unpaid. 1,000 Checks and other cash items (see schedule) Exchanges for clearing house Bills of other banks Fractional paper currency, nick- els, and cents *. Specie, viz — (jold coin $1, 623 Gold Treasury certi- ficates $ G<»1<1 clearing-house cer- tificates $ Silver dollars $3, 000 Silver Treasury certifi- cates .' $ Fractional silver coin. . .$1, 133. 50 :{9. 9. 820. 46 632. 86 500 1, 351. 46 20. 21. 22. 23. Legal-tender notes United States certificates of de- ))08itforlegal-tender notes (sec. 5193, Rev. Stat.) Redemption fund with U. S. Treas- urer (nt>t more than 5 per cent on circulation) Due from U. S. Treasurer (otber than 5 per cent redemption fund) 5, 42, 756.50 747 2,250 Total 1 , 286, 070. 13 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Individual deposits subject to check . . .$589, 311. 22 Demand certificates of deposit $ Tiuje certifii-afes of depo.'iit $ Cert ified che«'k8 $ Cashier's checks out- standing $ 28, 887. 95 United Stjttes deposits Deposits of U. S. disbursing offi- cers Due to approved reserve agents (see schedule) Due to other national banks Due to Statei and private banks and bankers Dollars. 500,000 100,000 14, 849. 05 45,000 6,486 618,199.17 1, 535. 91 Notes and bills rediscounted. Bills payable Total 1,286,070.13 T, John Haves, Cash, of 'The Kevstone Natl. Bank, of Philada., IViina.." dr> soleinnly swear that f he above statement is true, t«) the lA'sf of uiv knowledge and iK^lief, and that the s« hedules on ba' ^'i " secured by stocks, bonds, and other personal securities *28 200 " ♦' on mortgages or other real-estate security (see schedule) *p o, ^sw Total Included in the above are — $873, 134. 77 Loans exceeding the Umit prescribed by section 5200 of the Revised Statutes, including amounts which ex- ceed this limU dm from State and private banks and bankers. None. Stocks, securities, claims, etc. None. Balances due from or to approved reserve agents. Enter name and location of bank. Tradesman's. Chase From- Amount. 22, 178. 64 18, 63L 40 Enter name and location of bank. To— Amount. Checks and other cash items. Checks and drafts on banks, etc., in this city Checks and drafts on other banks 39, 820. 46 Average reserve andinterest.—AveTaiieTeneTye tor last 30 days (in bank and with reserve a^entsi was 10 per cent of deposits and bank balances. The highest rate of interest Sb? thi bSk on •leposits IS 3 per cent, on money boixowed is 6 per cent. ^ ^ ^ ®^ Overdrafts. Secured : Standing 12 months or over . • < Q It (t •» 3 ii 4. «« J (t (i Temporary Unsecured : Standing 12 months or over . p'd reserve agents, viz : Chase iNiitional Bank, New York Keserve funds in bank, viz : Fractional silver $4, 520, Silver dollars 4,360 Silver Tr'y cert's . . .14, 495 Gold coin 1,056 Gold Tr'y cert's Legal-tender notes . . 4, 604 \J^^. S. cert's of dep . . . C.H. cert's of dep... 895, 793. 51 158, 806. 13 50,000 ,50 17. 18. 19. 20. 21. 5 p. c. red'n fund with Trens. U.S. Other funds with Treas. TJ. S Banking house $225, 000 Furniture and fixtures ... 10, 000 Other real estate and mortgages. . Current expenses $11, «)02. 28 Exch'g 363.01 luterestpaid 7,125.53 Cash short. Total 355, 391. 91 2,000 82.11 56, 303. 83 4, «75. 05 3, 963. 50 59, 879. 75 7, 727. 78 1,250 1,631.45 Liabilities. 1. Capital stock paid in ,.. 2. Sui-plus fund 3. Other undivided profits, viz : Discount $5, 732. 84 Exchange Interest Premiums Rents Profit and loss 11, 516. 97 29, 035. 50 2,250 235, 000 19, 090. 82 1,883,081.34 4. Due to app'd reserve agents, viz : 5. Due to national banks 6. Due to Slate banks and bankers, . . 7. Dividends unpaid 8. Individual deposits, viz: Subject to check $1, 209, 438. 36 Demand certif's. Time certificates Certified checks. Cashiers' checks Dollars. 500.000 100, 000 17, 249. 81 2,495.32 2, 338. 81 6,120 9. United States deposits 10. Deposits of U. S. disbursing offi- cers 11. Circulation received $45, 000 Less on hand and retu'd. . 12. State-bank circulation outstand- ing. 13. Notes and bills rediscounted. 14. Bills payable Cash over Total 1,209,438.36 45,000 439.04 1,883,081.34 [Note.— Examiners are requested to report below whether the records are fully and explicitly kept, and, if not, whether proper corrections and additions have been made during examination; whether the books are correctly kept, and how often accounts are balanced ; which othcer is in charge, and if others are active or inactive; their reputation, salaries paid, and bonds required of them ; whether the officers are trained bankers, and if they are engaged in business outside of the bank ; whether the directors meet regularly as a board, and how often; the number of shares owned by each; whether they have active discount and examining committees, or leave management entirely to the othcers : the number and classes of stockholders, and whether annual meeting was regular; whether the office, vault, and safe are secure, and if used in any other business than that of this bank, whether its busi ness kept entirely distinct and separate.] Records : Undergoing examination. Other books: Undergoing examination ; 3 individualledgers contai i ,470 accounts. President: Formerly cashier; owns 50 shares of stock Vice-president: Granville B. Haines; largely engaged in retail dry goods business. Cashier: Formerly paying teller. Asst. cashier : Charles Lawrence ; is general bookkeeper. Directors: 9. Stockholders: 120. Office, vault, and safe: Large and well-equipped banking room, superior vault ana safes ; time locks and watchmen ; rent paid, $13,000, and rent received, $3,000. DIVIDENDS AND SURPLUS (SECTIONS 5199 AND 5204, U. S. REVISED STATUTES). Date of last dividend, Nov. 4, 1890; amount, 3 per cent; carried to surplus, $ • Charged off since last examination : Losses, $ ; premiums, $ — - — j decrease of values, $ . INVESTIGATION OF NATIONAL BANKS. LOANS AND DISCOUNTS. 115 A. Paper with two or more Individual or firm names $730 279 01 B. Single name paper (one person, company, firm, or members' of a 'com'- ' pany or firm, without other security) gj 214 50 C. Loans and discounts secured by real estate mort^jaies or liens 'unon ' real estate _ * ^ D. Demand loans secured by other collaterals 'eno 00 E . Time loans secured by other collaterals *..".'."..'".'*..'".'.'.! 14 50o'. 00 Total notes and bills discounted 895 793 51 Included in the above are — F. Bad debts, as defined in section 5204 of the Revised Statutes $ G. Other suspended and overdue paper.. . i82's58'ii ^$35000)'*'^^ «f directors (individual and firm)" 'as* payers "(firm h"* wV^/^^'^'f ¥^ ^'"l^*"?'^^'^ ISf ^^^^^ section 5266,* v. S. ReVis^d Statu^es.^' ^ H. H. Yard (includes cash items) $21, 000 j overdrafts $58, 000 $108 000 ity nrm, through f/r«Vo?? fr'^ ^''''^}'^' all excessive loan7 obtained iTfVnvco;^^^^^^^^ _ Its stockholders, members, officers, or employes for the benefit and use of sucnomn^n v «ffi7H«T'X?r *' may appear from the crediis suclJ accounts has rLeiv^%r XrS^S should describe the manner in which such accommodations were obtained.] oiuerwise, aua GENERAL REMARKS. charged %% estimated loss, say $158, 806. 13 opposite U. S. Mint and Wanamaker's, Overdrafts: Mainly overdue notes $20,000 Banking house : New and elegant building with lot in rear to SansVni street, 32 ft. by 90 it. Total rents received $37 000 taken for debt of John C^ Lucas, late pr?si- ^f "n ni. "^v^.'^^^l^i deceased, said to have cost $480,000, valued at $4i>0,000, subject to a mortgage of $225,00;), at 4i per cent. Ihe % represents equity in the property 99^ ooo nn Bond«, etc., onhand: ^ ^4o,U(..a00 Total bonds and stock of "The Sea Girt Land and Improvement ,^ 'IV.^.''^ ! The Spring Lake Land and Improvement Co.," at Sea birt and Sprmg Lake, New Jersey, taken for debt of John t/. Lucas as above. For a part of the Sea Girt property the State of New Jersey has con- tracted to pay $69 000 (probably to be paid in February, 1891) and the balance of that property is estimated by former now belonging to the bank, but 'his"be8t' JudgnreliTi^s^thTtT^^ Past due paper^:'''*^^^ ^ '^^^'' *"" ^""^^ something near $500,000 . . 355, 391 . 91 (64 notes) estimated loss, say i 8q qko ^>i Please see accompanying letter. ®^' ^^' ^ W. P. Drew, To the Comptroller of the Currency, Examiner, Washinffton, D. V. Hon. E. S. Lacey, Philadelphia, January 24, 1891. Comptroller of the Currency, Washington, B. C: on the 9?h^?w ""/w^ the examination of the Keystone National Bank of this city hitherto eftWnoii ^^ '"^^"^"1: ^^ *^^ president that there would be disclosed a amSnfto $^^^^ '^'V -^^^ ^^^ ^^ '''• ^^'^ president, John C. Lucast velopmeSfsUrbV'meil'ex^Sf^^^^^^^^^^ ^^"^ verified by subsequent del l > '^V 1* «, .■,i; 116 INVESTIGATION OF NATIONAL BANKS.. INTESTIGATION OF NATIONAL BANKS. 117 t 111 '■'I "I '1 ,f's- u. It appears that Mr. Lucas, durinj? his presidency of the bank, had, with the con- nivance of the cashier, Mr. Marsh, now the president of the bank, earned out, by adroit nuuiipiilation of the acs. of the bank, for a series of years, a scheme for sys- tematic abstraction from the bank of hirge sums to assist his speculations in real estate at Spring Lake and Sea (Urt, New Jersey, as well as in the construction of a large building on Chestnut st. here, now occupied in part by the bank. The method of concealment of this large diversion of the bank's funds seems to have been to charge the amounts taken to the general ace. of deposits and so to alter indi- vidual balances on the ledgers as should make their aggregate credits fit the general a<»c. at the time of the examination. Sometimes the foreign bank balances were also ''padded" to correspond to the deficit. ^ xi. i i To protect the bank so far as possible, I took measures to secure for the bank without publicity whatever pro])eity belonged to the estate of Mr. Lucas, and, after a few days, succeeded in obtaining tlie property used by the bank as a banking- house for '<-225y000 and the property at Spring Lake and Sea Girt, New Jersey. In these endeavors I was assisted by Hon. John R. Read, U. S. district atty. here, whom I employed to aid in tlie transactions. ^ , x -4. Tliere may be still more juoperty of the Lucas estate that can be secured, but it is too early to say positively. i -x • • • The discovery was reported to the clearing-house committee, and its opinion is, in view of all the facts ho fur known, that further time be allowed the directors ot the bank to raise some $3(X),00() to be put into tlu> bank. This purpose is in active course of completion, and it is hoped that by this fresh 8upi)ly of funds, with a radical change in the management of the bank, soon to be effected, the bank can be successfully rehabilitated. „ , , , x .• x • It appears that Mr. Marsh, formerly the cashier of the bank, was at iirst igno- rantly led into the irregular transactions by the president, and that the latter, on his death-bed, exacted a promise from Mr. Marsh to continue the deception under representations that the money abstracted would soon be returned to the bank from the results of Mr. Lucas's enterprises. ^ , • xi i * i There does not appear to be any evidence that Mr. Marsh profited in the least by these irregularities. ., x i • n ir * 4. Since the disclosure he has faithfully and earnestly cot»perated m all efforts to assist the bank to secure property for this debt, and his intimate knowledge ol all matters connected with the ailair has been of great uso. Beyond the directors of the bank, the seven members of the C. H. committee, the counsel on either side, and myself no one has any knowledge or suspicicm, so far as I can say, that the bank is in any trouble, aiul it is earnestly Jiope ^^^^' Comptroller of Currency, Washington, D. C: Strong credit with clearing house this morning. Prospects encouraging. \^. P. Drew. >1 1 f!4 |;^ 120 INVESTIGATION OF NATIONAL BANKS. i: 1: i '■■(4 As preliminary to this letter I am about to read, which is dated Feb- ruary 16, 1890, 1 would say that there was a meeting of the assay com- mission which visited the United States mint on February 12, 1891, of which I was a member. I was in Philadelphia about three days, I think. During that time I called at the Keystone Bank and had a con- versation with several of the leading directors of the bank, in which it was discussed as to how the cash of the bank should be replenished. Their assets were largely in real estate, and it was important that it should be stronger in cash. By Mr. Wire : Q. How was that developed!— A. The report shows. During the time intervening between the 24th of January and the 16th of February Mr. Drew had been continuing his examination daily. His assistant, Mr. Jones, was put in charge of the books as general bookkeeper of the bank, and he was still continuing his examination to ascertain precisely the liabilities and the amount of its assets. Q. Can you state, in brief, what they were and what your conclusions ^ere? — A. Mr. Drew verbally gave me some information which he had ascertained in the interim. He stated the sum, which I can not re- member. Q. I want to know what your personal conclusion was. — A. He stated that there would be developed some impairment of the capital, but I can not remember the amount, because it was given verbally. I re- quested him to make out another statement of the condition at that time, and forward it to me, showing the amount of impairment. That statement came to my hands, and showed an impairment of about $125,000. I presume that was what I read about in the letter. Q. Was that ever made public?— A. Certainly. Q. Does your conclusion appear anywhere in the record! — ^A. No, sir: not in respect to that. Q. It is not on file!— A. I did not write him. This was merely a verbal communication to me in Philadelphia. Q. I thought that if your conclusions appeared anywhere they would be important, but unless they do it would not aid us much. Mr. Sperry. If it appears, it is probably in the form of an assess- ment. By Mr. Wike : Q. My question had reference to what impression you got from the suggestion made by him.— A. I was about to state it. As I say, we had a verbal conversation, in which it was disclosed that there would prob- ably be some impairment of the bank^s capital, and I requested him to make a statement of it. He did make the statement. I had stated to him that whatever impairment was disclosed should be made good by an assessment, and he laid that before the board of directors. Q. Your suggestions were not preserved! — A. They were verbal. I did not name the amount, because it was predicated upon the report which he was to send me. Philadelphia, Pa., February 16, 1891. Hon. E. S. L4CEY, Comptroller of the Currency , Washington, D. C: Sir: I have arranged to lay before tlie board of directors of the Keystone National Bank here your conclusions with reference to an assessn ent on the capital stock of the bank at their meeting to-morrow. Some of the stockholders have already expressed to me their willineness to pay their proportion. 1 propose to lay before the directors to-morrow a complete statement of the condition of the bank, at that time, and to INVESTIGATION OF NATIONAL BANKS. 121 ' u {i«free with them upon the amount of losses of all sorts likely to accrue, and shall reduce all values to a fair minimum. I hope to mail to you to-morrow evening my report. I learu that Mrs. J. C. Lucas, widow of the late president, intends to sail for Europe within a short time. As she owns 2,000 shares ($100,000) of stock of the bank, action should be taken at once. Please forward to me written instructions on which I can act. The bank was a creditor at the clearing house this mt>rning $49,400, and everything at the bank was quiet as usual. Very respecfully, W. P. Drew, National Bank Examiner, By the CHAIRMAN: Q. Is that a copy of the statement of the resources and liabilities of the bank on the 16th of February? (Handing witness a paper.) — A. Yes, sir. Q. What impairment of capital does that disclose? — A. (After figur- ing.) It is not sufficiently explicit to enable me to give the exact de- ficit. There is a doubtful item here of $337.52. I can not state what that was for; but I find that the deficit was stated at $211,156.37. There are expenses of $33,437.15; making the total $244,952.51. The surplus and undivided profits were $119,137.41, which would show that the impairment of the cai)ital of the Keystone Bank at that time was $125,466.11. That is about my recollection of it. By Mr. WiKE : . Q. I want to ask you, because it is not so important in this case as it is to have a general understanding of this matter. I asked what proc- ess you or your examiners have of examining the paper of banks. What sort of care do you observe, or what sort of examination do you make of the discounted paper of banks? — A. The duty of an examiner upon entry is to take charge of its cash and assets. Q. But what care do you take in seeing whether the paper is good? — A. I was going to tell you. The bank examiners will take charge of the bank and put the cash under seal until he has counted the cash and it has proved to be correct. It is then his duty to take every note, bond, stocks of any kind, and everything representing value to the bank, and to make a careful list of them. Q. You do not mean that he makes a registry of all those? — A. He makes a list of every piece of paper, and if it be proved by handling it he makes a list of it. He takes the paper and goes over it seriatim. Mr. Drew would know in ninety -nine cases out of a hundred if the paper were suspicious. Q. What inquiry would he make about it?— A. That is entirely owing to circumstances. Q. I do not suppose it is possible.— A. As an ordinary proposition, if you had been an examiner you would be able to pick out readily the genuine paper, and the j)aper that had come in in the proper way. The paper, if it were renewal paper, or accommodation paper, would have tlie earmarks of such. It wcnild appear on the face of the paper, if it was a round sum, or if it was indorsed by an individual. That paper IS laid aside, and he proceeds to question the bank officers, and if not satisfactory he makes a memorandum of it. He inquires of other dis- creet persons as to the standing of persons whose paper he was not con- versant with. Q. Will you furnish me a certified copy of this list referred to in the statement of February 16, 1891, and it will be introduced in evidence, and marked Exhibit No. 4 ? ii] ill i f 1 i 4 ^M ■ i^^' HI ^^^H H 9" I^H ; m (ill; ^4l 122 INVESTIGATION OF NATIONAL BANKS. Exhibit No. 4, April 29, 1892. Condition of the Keystone Nat. Bank, Philadelphia, at close of business Fthruary 16 1891. Cash items : ' Protested checks, H. H. Yard, probably good $21, 000. 00 City treasurer (good) 7,463.68 Other protested checks, notes (hopeful) .% 930. 74 " " " 299.67 Memos, president (good) 1, 199. 22 I '' cashier 325.00 '^ other parties (hopeful) 1,110.00 \ Sent to U. S. Treasurer 655. 00 Advances on salaries 322. 11 Donbtfulitems 337.52 36, 642. 94 Country checks (good) 5, 671. 65 Runners' checks 10, 937. 99 C. H. exchanges 167,327.43 Nat. bank notes 780.00 Frac. currency 576. 06 Frac. silver 4, 068. .50 Silver dolls 3, 382. 00 Silver notes 5, 310. 00 Gold coin 3, 730. 50 Legal-tender notes 2, 754. 00 U. S. gold certs 45, 000. 00 286, 181. 07 Bills discounted : Time paper not matured 668, .595. 52 '' <' overdue 179,907.82 Demand loans ($75 m. on collat.) : 91, 372. 55 939,875.8'J Missing overdue paper 40, 468. 65 980, 344. 51 Mem. : Of the above, $669,804.80 are held by clearing-house for $428,516.24, C. H. loan. RESOURCES. Bills discounted 980,344.51 Overdrafts (97 acs) 99,907. 11 U. S. bonds for circulation (4|) 50,000.00 Bonds Baltimore Traction Co. (for debt) 100, 000. 00 Other bonds and stocks (Sea Girt, Spring Lake, N. J. (for debt) 700, 000. 00 Due from res. agts. : Tradesmen's Nat. Bank $25, 260. 98 Chase Nat. Bank 8,846.28 34, 107. 26 Due from other banks 51,783.93 Furniture and fixtures 10, 000. 00 Expenses $20,147.65 Exchange 784.29 Interest paid 12, 505. 21 33, 437. 15 Premiums (on U. S. bonds) 2, 000. 00 Cash 286,181.07 Redfd. with the U. S. Treasurer 2,250.00 2, 350, Oil. 03 Short on capital aud surplus 211, 156. 37 2, 561, 167. 40 INVESTIGATION OF NATIONAL BANKS. 123 Mem. : This short, is made up mainly by fictitious bals. witli res. A *f^J* ••;■•■,; .• 78,700.00 And due bills act. dr.'' xi3 340. 69 192, 040. 69 LIABILITIES. 5^P^*^^ .500,000.00 Surplus 100 000.00 l^i8c«»^t $7,610.44 P. and loss 11,516.97 19 1*^7 41 Circulation $45, 000 ($7.50 on hand) 44 250* 00 Dividends not paid q 220 00 Deposits for checks (city treasurer, $552, 163. 05) .' .*.".*.*.'.' '$1,'467,'985.'67 Certs, of deposit : 47 701 91 T^ . T 1 1,455,687.58 Dueto banks 6 812.84 Cash over ' g-o 00 Clearing-house loan !.*....!!..!!.!!'! 428 516 24 2, 561, 167. 40 Single named paper : 105, 000. 00 1 ime loans on collaterals 35 qq^ qq Demand loans on collaterals 75' qqq* (^ Past-due paper, Apl., 1888, to Feb., 1891, 99* noYeV,TucYudes" $50, 606* estate J. C. Lucas, late prest., dec'd 179 907 qq Directors' indebtedness (firm $33, 000) ".....'-!.*.]]]*] 38 000 00 3 individual ledgers (1,470 ac's) no differences; pass books being balanced as rapidly as possible. ** Average reserve for last ninety days, say, 12 per cent. " " thirty '' <^ 10 per cent. Interest paid on same, $200, 000. Loans ill excess of legal limit: H. H. Yard (including protested checks) log qqq qq Estate of J. C. Lucas, deed., late prest, direct .'' " "'."" 50' OOO 00 Indirect ; '..".'."//." 75,000; 00 ■i\ ■ i 125, 000. 00 [G. W. Marsh, president. John Hayes, cashier. Chas. Lawrence, asst. cashier.] _„^ Keystone National Bank, 1326 and 1328 Chestnut Street, Opposite U. S. Mint Hon. E. S. Lacey, Philadelphia, Feb. 17, mi. Comptroller of the Currency, Washington, D. C: f K??iL^ H^K *^® ^"'^«r t<> ^,^clo8e herewith a report of the condition of this bank at tJie close of business on the 16th mst. blJrfv^fn^i!^^ A^ !i^y«.P«* Jj'id time to-night to transfer the same to the appropriate ha^t o^ T- ^t 'St '*-iT'l^',^ ^^P^' "'"'r^'y •''" •attainable information regarding the bank at present. It will take a very long time to fully elucidate the method! bv J«fi5 f • "* if ^f ^ f ^"^ ""! the capital stock has been abstracted without disclosing the deficit m the books and accts. of the bank. That the whole amount of the loss has vfn?pd^P'TT'''*^'J ?/.*u'^Ji*^ president and his friends I am more and more con- h .^^?; ^^ '^ 1 * that the present president, who was cashier under Mr. Lucas, n8tr,f.n.nT«i^''''^''^^^'".•*^^ aeiu-edation further than to have been the obedient instrument of a i)e(nlating and desigmng chief; but within a day or two I have hnf T ly^'n *^«»**^rtf n suspicions of him. I hope these suspicions are groundless but I shall endeavor to satisfy myself as soon as I can. feiouuuiess, Hom!!'!* *^^- !v '"''^l "^ directors to-day and laid your conclusions before them. While Se an Jw^'n^f f ^^ the required assessment others fear that snch an order would from th? w/^ -^^^^ J?^ ^^""^.^ ^^5 ^ '.^^'^^^ ^«* ^« surprised if a committee irom the board visited you this week to further discuss the matter. 1 he bank setth^d in debt $10,000 this morning at the clearing house. ii^ very thing seems to be moving along in the accustomed quiet way. bo'rr^wfn'i^™°n"n".wJ*''*'?^^^ f"^^® "P f. interest and expenses attendant npon the long practice of uorrowmg money to settle balances, and for other purposes not yet discovered. pra^^uce 01 "1 J- il If 124 if INVESTIGATION OF NATIONAL BANKS. Ifihv «'iu1o.s«m1 report is not Hatisfactory, in lonn or otherwise, will yon please re- turn it and I will transfer it to the proper hlank form. Very respectfully, W. P. Drew, Nat. Hank Examiner. P. S. — Mr.D. P. S. Nichols, of the board of directors, has consented to hecome vice- ]>resident of the bank, for a time at least. He is a very proper selection for that trust, and will supervise all the operations of the bank. Treasury Department, Office of Comptroller ok the CruRExcv, Washington, I). ('., Februaru SO, 1S91. Mr. W. P. Dur.w, National Hank ExamineTf 39S9 Chestnut street, Philadelphia, Pa.: My Dear Sir: I am in receipt of your two favors of the 16th and 17th instant, and note what you say in reference to No. 2291. The statement you sent is satisfactory as to the matter, but I should prefer to have had it on one of our regular blank forms as putting it in a more valuable shape. I would suggest that you send another, with the items stated upon the regular blank used for report, and take up each separate heading and give an estimate, in your judgment, of the exact value of the resources as stated. Estimate the discount upon each class of investments. My object in this is, if possible, to arrive at precisely the amount of deficiency necessary to be made up by assessment upon the capital stock. I should be glad to see any committee of the board which may visit Washington, but can conceive of no better way to put the institution in first-class shape than that suggested by me. One thing is certain, that some action is imparatively neces- sary, and the sooner it is taken the better will be the results. I shall, of course, sustain and encourage the board in their endeavor to put matters in a satisfactory condition. V^ery respectfully, E. S. Lacev, Comptrollei'. By Mr. WiKE: Q. What does Mr. Drew mean by the expression " without disch)S- ingF— A. He means the system by which they liad deceived him duiiug these months and years. Mr. Lucas is dead. By the Chairman : Q. Tliis is the first intimation that you received ?— A. Yes, sir. By Mr. WiKE: Q. Have you evidence of what amount is disclosed as suspicious?— A. ]Sro, sir; that will come later. He said he would investigate it. Mr. D. P. S. Mchols, to whom he refers, was president of the Central Trust Company, which occupied a room in the bank building. I made an assessment on the bank stock to make good the impairment of the capi- tal. It was decided that the directors would put in the sum and as soon as the assessment was made would make collections from the sev- eral shareholders. Q. Does that appear in your statement!— A. I may say that that talk I had with Mr. Drew was a verbal one. There was' no further communication until I received a letter addressed to nw, by Mr. Drew, dated February 28, 1891— this letter which accompanied the Hiial report of Mr. Drew upon the condition of the Keystone National P>ank. It was dated February US and was received on the 2d day of March. Philadelphia, Feb. ^'S, 1S91. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C: Sir: In additicm to the facts embraced in my report of the condition of the Keystone National Bank of this city, herewith furnished, there are some others which perhaps will better be presented in this letter. The valuation placed upon the stock of the land companies at Spring Lake and INVESTIGATION OF NATIONAL BANKS. 125 Sea Girt has been decided on after as full and careful investigation as I have been able to make, and has been concurred in by the directors of the bank. I enclose u map of the properties. The lots not heavily shaded have not been sold. Pay ($67,000) for the encampment ground for the State of New Jersey is confi- dently expected in the coming month. The attorneys of the bank have now in charge a thorough investigation into the legal status of the property, its real valuation, and will make a report at an early day to the bank upon all points relating to the same. This at my request. I have included in "Items creating the deficit" the capital stock, $72,000 of discounted paper, search for which, although it was in the bank according to my retained papers at the time of my last examination, has thus far availed nothing. Whether the notes have been abstracted (and I do not feel confident that they have not been) or are confused with other papers in the bank and will eventually come to light is quite doubtful. If you should conclude to give the bank the benefit of this uncer- tainty in making any assessment on the stock, it would much reduce the apparent deficit. It has been and still is very difficult to trace the losses of this bank. The fabrica- tion of balances and the falsification of accounts, the suppression of debts due the bank, together with the, to me, unprecedented removal of whole pages and leaves from ledgers containing large credit balances in order to bring the work of the ex- aminer down to the Itilse summaries, the correct amounts to be afterwards entered in other portions of the books, will render it a work of much time before the whole de- ce]>tion cnn be exposed. In addition to all this, payments to the bank have been made in considerable amounts of which no record of indebtedness appears, and a proposition ha« been made to put into the bank $200,000 from sources not to be divulged. The very item in assets of $100,000 bonds of the ''Baltimore Traction Company" is unexplained. The president knows where they came from, no doubt. They appeared only at the time of the run in Dec. last, and are now held as security by the clearing house committee. All efibrts to ascertain the sources and responsibility of these matters have met with failure. I have not pressed my inquiries in these directions, because I wished to get back into the bank all possible to obtain quietly. If you think it would answer better to send some one from the office to represent you pending further i)rogress, I hope you will not hesitate so to do. I will give him all aid m my power, and shall be able to turn my attentions to other banks that need examination in due course. I am perfectly willing and desirous to continue in charge of this investigation if deemed best, however, and no urgency appears elsewhere. 1 have thought that should there be any appearance of an incipient "run" on the bank I should shut the doors at once; but there is so far not the least appearance of uneasiness among the depositors. If you decide on the amount of th© assessment necessary, I would respectfully sug- gest that it be preceded by the strongest advice to the directors to make good the dehciency before public announcement of the assessment. I am sure that only the most vigorous action on the part of the office will awaken those interested to the great peril that menaces not only the bank but those who have had any part in its management. Please return the inclosed map. Very respectfully, w. P. Drew, Xat. Bank Examiner. P« S.— The bank settled creditor at clearing-house to-day $22,000. Q. How long was that before the bank closed ?— A. Fourteen business days expired before the bank closed. By the Chairman : Q. In the preliminary report made by Mr. Drew on January 24 the banking house appears as assets $225,000 ?~A. Yes, sir. Q. On the report made by Mr. Drew February 28, 1891, the banking house does not appear at all?— A. In the meantime the banking house, or the equity in the banking house, was sold for $175,000. Q. To whom was it sold!— A. To William Weightman, of the firm of Powers, Weightman & Co., of Philadelphia. Q. The item classed as securities, claims, etc., in the report of Janu- ^c^Ia -1^^ ®*^*^^ ^^ $385,391.91 ; and in the report of February it is ^»00,000 ?— A. Mr. Drew stated in his first report that the actual amount at which Mr. Lucas estimated it in his statement was three hundred »m fifty-five thousand and odd dollars. In the report of February 16, * I t : i •|: '^, 126 INVESTIGATION OF NATIONAL BANKS. ii I' '-1 hh: and also in the report of February 28, lie places an arbitrary value upon the Sea Girt and Spring Lake property of $700,000. He increases the value of the real estate between January 24 and February 10 by the difference between $355,000 and $700,000. The property originally was $355,000 J and in February it is put down at $700,000. The $100,000 referred to is bonds of the Baltimore Traction Company. Q. I notice on tlie report of February 28, 1891, there is clearing house liabilities $371,316.96. There is no corresponding item in the report of January 24? — A. Mr. Drew did not state it in his report of January 24, 1891. Q. Is there any item in the report of February 10? — A. Yes, sir. Q. What is stated there among liabilities? — A. The liabilities of clearing houses here is stated at $428,516.24. The Chairman. The paper will be inserted, marked No. 5. No. of Bank, 2291. Examinei^s report of the condition of " The Ktystone Natiottal Bank" located at rhila- delphia, in the County of FhiJade'lphia, Stale of rennsyhania, at 3 o'clock p. m., Feb- ruary 28y 1891. Examination commenced at o'clock ». Examination closed . GiDKON W. Marsh, President. John Hatbs, Cashier. Kesources. 1. Loans and discounts (see sched- ule) 2. Overdrafts 3. U. S. bonds to secure circulat'n (4^ per cent) ■■• 4. U. S. bonds to secure deposits ( per cent) • 5. U.S. bonds on hand ( percent) 6. Preiiiium on U. S. Inrnds 7. Stocks, securities, claims, etc. (see schedule) 8. Banking hou»o $ Furniture and fixtures 10,000 9. Other real estate and morg'es- (see schedule) 10. Due from approved reserve agents, viz: Chase Xat. Bank.N. Y. $6, 274. 58 Tradesmen's Nat. Bank, N. Y 12,7n.09 11. Due from other national banks.. 12. Due from State banks and bank- ers i:{. Exchange for clearing house 14. Checks on other banks in same Is of otiier national banks 16. Uncurrent and minor coins 17. Cash items (country checks $4,364) 18. Reserve fund in bank, viz: Fractional silver $3,546.25 Silver dollars 1, 420 Silver Tr'y cert's 10, 480 Gold coin 2,495 Gold Tr'y cert's Legal tender notes .... 2, 250 U.S. cert's of dep C. H. cert's of dep 19. Sp.c.red'nfundwithTreas.U.S. 20. Other funds with Treas. U. S... 21. Current expenses $21,451.91 Exch'ge 1,334.54 Interest paid 12,466.58 Deficit , 22. Cash short Total Dollars. 823, 330. 39 111, 990. 54 50,000 2,000 800, 000 10,000 18, 985. 67 53, 550. 91 2, 8.52. 95 119, 831. 73 39, 883. 22 903 394.15 16, 414. 15 20, 191. 26 2,250 35,253.03 386, 691. 98 1,938.49 2, 496, 461. 46 Liabilities. 9, 10, 11. 12, 13, 14. 15, Capital stock paid in Surplus fund other individual profits, viz : Discount $10, 552. 95 Exchange Interest Premiums Kents Profit and loss 11, 516. 97 Due to app'd reserve agents, viz: Due to other national banks Due to State banks and bankers Dividends unpaid Individual deposits, viz • Subject to check . . .$1, 357, 003. 25 Demand r^rtifs... 48,371.91 Time certificates.. Certified checks... Cashiers checks . . - United States deposits Deposits of U. S. disbursing of- ficers Circulation received.. $45,000 Less on hand retn'd . . State bank circulation outstand- ing Notes and bills rediscounted Bills payable Clearing-house loan Cash over DoUars. 500,000 100,000 22,009.92 44, 597. 02 1,982.40 6,120 1,405,375.16 Total 45,000 371, 316 2,496,461.46 INVESTIGATION OF NATIONAL BANKS. 127 No. of Bank, 2291. Directors. No. of sliares owned. Names. Post-office address. Liability as payers lind vidual or firm.) Liability as indors- ers. Occupation. 1 54 G. W. Marsh Philadelphia it (t 2,000 15, 000 2,500 Pres't of Bank 2 991 G. B. Harries D. P. S. Nichols Chas. McFadden Chas. C. Tow C. A. Shellenberger. . J. T. Jackson Sam'l Lucas Dry goods merchant. PresT, Central Svgs. Fund. "R, "R o.tvnf.rsiiKtfiv 3 250 4 700 2,398 5 25 U 204 it *• IK'-" 6,800 2,000 Mfr. Physician. 7 IW ^/F 8 20 (( Xfftrp.liflTit Mem. : Of the above Nos. 3, 7, and 8 have not qualifietl. Henry Van Beil. formerly vice-president, and L. Dreka have sold their stock. [State also whether records show that directors meet regularly as a board, and how often, and if they examine and approve loans and discounts at such times or not; whether they have active dis- count and examining committees, or leave management entirely to the officers ; whether annual meet- ing of shareholders was held, and if election of directors was regular; give number of shares repre- sented at such meeting; any vacancy in board should also be noted.] Records show meetings of board as a rule twice each week, and approval of loans and discounts. Board by committee examine bank semiannually. The last election seems to have been regular, and shares voted 6,016. Mem. : Mrs. J. C. Lucas, widow of lat« pres't, owns 2,085 shares of the stock, and the father ot Director Tow owns 775 shs. H. H. Yard owns 900 shares. Officers. ' Names. No. of shares owned. Liability as payers (indi- vidual or firm), inclu- ding over- drafts. Liability as indorsers or guanintors. Salary. Bond (if any). Other occu- pation (if any). President G. W. Marsh. John Hayes . . 54 2,000 2,400 3,500 Cashier 15,000 [State, so far as you are able, whether the officers are capable, prudent, and of good reputation o not, and wbether, m your opinion, their management is efficient and successful, or otherwise.] umcers were bred in banks, and seem to have enjoyed good reputations and much popularitv: too liberal and lacking in thoroughness of system and oversight. Books and accounts, i.i« *^Jf whether necessary books are used, and if these are correctly kept and promptly posted, and liow often accounts aie balanced and verified.] *» j a~ . "« i Ji^?.l^*^*°? ^^ 1^^^^ *^** *^^,*^' ^^^ ^^ loosely kept heretofore. During the last few weeks great IKo«? "^^ 1 f° V',^*" ^^^""^ supervision of my assistant, who has been constantly on duty in the bank as general bookkeeper and manager of accts. j «* j' m RESOURCES. 1, Loans and discounts. t'~R^ demand, paper with one or more individual or firm names $ rn" 5®™^*^' secured by stocks, bonds, and other personal securities ".".'. D ~ n V™®' P^P*''^ with two or more individual or firm names , JJ— un time, single-name paper (one person or firm) without other security '/.'.'. V — n l^^^' secured by stocks, bonds, and other personal securities . X — un time, on mortgage^} or other real estate security (see schedule) Total. Included in the above are— G.— Bad debts, as defined in section 5204, Eevised Statutes (see remarks below) . .a..— uiner suspended or overdue paper (see remarks below) A — Liabilities of directors (individual and firm) as payers (see schedule)!"!.'.'! 1,210 82,292 568, 498. 33 150, 830. 06 20,500 823, 330. 39 18,058.11 174, 996. 21 26, 300 ( ; • t wi > V PW iiH1 128 INVESTIGATION OF NATIONAL BANKS. Loans exceeding the limit presciihed by section 5200 oj the Bevised Statutes, including amounts which exceed this limit due from State and private banks and bankers. Name of borrower. Enter full amount of loan. Name of borrower. Enter full amount of loan. H H. Yard $64, 500. 00 48, 421, 92 Estate John C. Lucas : Direct t« $50,000 Tnfln'ftftfc . ................ 70,000 112, 921. 92 120,000 not [Describe general character of loans and discountH usti their quality and the value of collaterals se- curing same, especially excessive loans and others suhjiit to criticism ; state whether accommodations are well distributed or not; and if large loans or discounts are made to individuals, firms, or corpora- tions, give list of these, including all loans reaching limit prescribed by section 52(M). Loans which exceed this limit should be entert^d in 8chee property, state form of conveyance, and from whom obtained. Amount at which carried on books. Amount of prior lien on prop- erty, if any Estimated actual value of property. Date when acquired. State whether taken for " debts previously cx)ntracted," or other- wise. Looms and discounts secured by real estate—Mortgages or other liens on realty. Give name of borrower, describe property, and state form of conveyance. Amount at which carried on books. Amount of prior lien on prop- erty, if any. Estimated actual value of property. Date when acquired. State whether taken for "debts previously contracted," or other- wise. LIABILITIES. 1. Capital stock. WmMrMmmmm stock ledeer and certificate book verified. * Bank holds none of its own stock as collateral. 1 ne capital stock is seriously impaired. 2 and 3. Dividends and surplus (sections 5199 and 5204 U. S. Revised Statutes), |Sg«ii»?xT„.LrnSTor^^^^ , , aeL'iSrrti?h?sT "'^' ''^ '^"' ^'^"^' "^^ d;.?S?^Tvife^t t^fSfthltrrel^: Manifestly the bank must suspend dividends. 4y 5, and 6. Due to reserve agents, banks, and bankers. Prlmplff ^tW awa?tTn™iKlon'' Xnv H''^" furnished for this purpose, but forward report ^1 "''''''"'^s-.s«r!^^~S-=-^^^^^^^^ Accounts vi'iiiled, due on opeiTaccouniU, 7392 9 amounts are due on open account, or on demand or time ^ ■ :-:.J- 130 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. lai liiif- m 8. Individual deposits. Klf I verSSl by tbe exan.iner, an»"'>^ i" *''"« ^««1>««* *»^" *»««" iiregnlar, secre*, and dangeTOUS. RECAPITULATIONi. r«;t«t.. in -,11 cises briefly your opinion a« to general condition of the bank and whether it« busi- able losses, givinjr amount ot each.] (ieneral condition of the bank, highly unsatisfactory. Items showinc impairment of capital: *50 000. 00 FalsecreditwitbCbase.Nat. Bank New \;"1^ • • ■ ■ 'S 700 (W TradesmensXat. Bank, iscw Yi.rk S'ooooo Loss sustained on salt- of bank building - ill' 954 19 On due bill account (a myst. ly. or a pool lor losses) i^*. ^ • Short in bills disct'd a»« (lunt (not yet discovered) - -■- ••-•• '"'"' "^ Me This kern is within nr.lbability of discoyery, althougli much search has not re- veall'd it. It is doubtful whctiur this should be classed as entirely a loss. ^ ^^^ ^^ Necessary to ail.iust the accounts ' 386, 691. 98 W. P. Drew, Examiner. To the COMPTUOLLEn of the CrRHKNCV. WanhiiKjton, D. C. Trkascry Departmknt, Ol KICK OF COMPTKOLLEU OF THE CUUKENCY. Washingion, D. C, March 3, 1891. ^'"* ^]ra/io;m7^^aMrSn«i»fr, 8939 Chestnut Street, rhlladelphia, Pa.: Sir- I -im in recoil)! «)f vour report of tbe examination of 2291 under date of Fcb- niarv'^^Sth : also your letter of the same date referring to that bank. I return herewith th<. plat of Sea Girt and Sprinj; Lake as requested. It LXo ntelv necessliry that something be done in this matter >yithout further delay Unless some other\yay ean be found to put the bank in tunds I shall imme- UatelV or le? ail assessment of fifty per cent upon the capital stock Unless arrange. ents are made by the direct«ns and large stockholders >vbo understand the situation Hhe bank, to put this money into the bank on the day that the assessment becomes puS, a rm, Avill no doubt ensue, ^vhich will necessitate youi taking possession oi '*?^i?;ou wouid^al? ih" a^^^ of the board of directors of;^this bank to this lotteT mmediately upon its receipt and say to them that I cannot delay action in the Inatter ToTiger than the time necessary for me to hear from them m reply to this com- "" It Irev^dent that lifty per cent is the very least amount I could state the deficit at. If it should prove hereafter that the assets are worth more than now estimated, or if addSl amounts are obtained from persons indebted to tiie trust, these amounts wS inure to the benelit of the shareholders by forming the nucleus ot a surplus fund which ^vould increase the value of the shares. ^^ , • 1 + +1 ^ If the directors and large shareholders desire t<» continue the business, and get the benefit of the good wiU, ^vhich is, no doubt, of some value they must decide promptly. I cannot permit the bank longer to doi)usiness with its capital so greatly '"it^^s well for the stockholders to remember that the assets of the bank will be much more valuable if the bank continues business than if it is closed and settled up by a receiver. In the latter case they might suffer from a large assessment on account of their individual liability. It seems to me quite clear that l)oth the directors and stockholders will find it to their interest financially to exhibit the proper amount of courage at this time, and place the bank again in good credit; otherwise, heavy losses and great scandal will ensue, resulting in damage to the rejiutation of all who have been connected with the bank during its period of mismanagement. In the meantime, you will maintain a supervision of the affairs of the association, prepared to take possession instantly in case a mn should commence, which would inevitably result in suspension. Your early reply to this letter is desired. Very respectfully, E. S. Lacey, Comptroller. Keystoxe National Bank, Philadelphia, March 4, 1891, Hon. E. S. Lacey, Comptroller of the Currency: Dear Sir: Your instructions to Mr. Drew were read by him to the board and the largest stockholders of the bank this morning. A committee will visit you on Fri- day, reaching your office at 12 m., if that hour is convenient, to explain to you the probable payment of the amt. without further publicity. Very respectfully, G. W. Marsh. By Mr. Gate : Q. The clearing-house indebtedness is in the report of Febniavy 28 and February 16, but not in the report of January 24.— A. This letter, dated on the 4th, or possibly on the 6th of March, speaks of a commit- tee that was to visit me. The committtee did visit me, and consisted of Mr. Haines, Mr. Huey, attorney for Mrs. Lucas, and Mr. Marsh. In our conversation it was agreed that if I would make an assessment for $250,000 they -would agree to place that amount in the bank and await tlie returns of collections from individual shareholders. Consequently, on March 7, I made an assessment By the Chairman : Q. Will you rea^l that notice of assessment? Tlie Witness read the notice of assessment of March 7, 1801. Treasury Department, Office of Comptroller of tiik Currency, „ ^ Washington, D. C, March 7th, 1891. Mr. G. W. Marsh, President Keystone National Bank. Philadelphia, Pa. : Sir: I inclose herewith notice of an assessment of $250,000 levied upon your asso elation to make good an imjiairmeut of capital for that amount. Respectfully, yours, * - E» S. La€b*', Comptroller. Treasury Department, Office of Comptroller of the Currency, Washington, D. C, March 7, 1891. Whereas, it appears to the satisfaction of the Comptroller of the Currency that the capital stock of the Keystone National Bank, Philadelphia, Pa., has become im- paired to an extent which makes necessary an assessment of two hundred and fiftv thousand dollars ($250,000) upon the shareholders of said association to make good such deficiency: Now, therefore, Notice is hereby given to said association, under the provisions of section 5205 of tne Revised Statutes of the United States, to pay the said deficiency in its capital stock by assessment upon its shareholders pro rata for the amount' of the capital 1 '1 liii^' 132 INVESTIGATK^N OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 133 :t: ■" Stock held by each, and if such deiiciency Bhall not bo i)aid, and Kaid bank shall refuse to go into liquidation, as piovidea by law, for three months after this noti<«e shall have been received by it, a receiver will be appointed to close up the business of the association according to the provisions of section 5234 of the Kevised statutes of the United States. , ^ In testimony whereof I have hereto subst libed my name and caused my seal ot ottice to be aflixed to these presents at the Treasury Department, in the city of Washinirton and District of Columbia, this seventh day of March, A. D. l«yi. ** E. S. Lacey, Comj)lroUer of the Currency. To the Keystone National Bank, Fhiladvlphia, Pa, A. They had advised me that they would take up that amount. This was prior to the 7th, and on the 13th I had not received any informa- tion, and I wrote them and received a response from Mr. Drew under date of March 14. It appears all the way through that Mr. Drew was in consultation with the committee and was favorable to the pohcy pursued. March 13, 1891. Mr. W. P. Drew, „ ^... . , .. ,, National Bank Examiner, SDSD Chestnut Street, Philadctplua, Pa.: Sir: On 7th instant I made an assessment npori>oration issuing stock, bonds, etc. Baltti. Traction Co . Sea Girt Imp. Co . . . Spring Lake Ini. Co Auutunt at which car- ried on books. 100,000 700,000 Estimated actual market value. State whether taken for "debts previously con- tracted, " or other- wise. 100, 000 700,000 Debts pr. Con. Balances due from or to approved reserve agents. From— Enter name and location of bank. Amount. i To- Enter name and location of bank. Amount. Trademen's Nat. Bk 37,171.63 9, 610. 89 Chase, N. Y Cheeks and other cash items. Checks and drafts on banks, etc.. In this city Checks and drafts on other banks 58, 309. 59 3, 060. 43 Average reserve and interest.- Average reserve for last 30 days (in bank and with reserve agents) was 11 ])cr cent of deposits and bank balances. The highest rate of interest paid by the bank is 3 per cent, on money borrowetl is per cent. Overdrafts. Secured : Standing 12 months or over tt o t( it ii 1 I. t( Temjwrary Unsecured : Standing 12 months or over (t 3 K It " J It (I Temporary J 'VI V] 136 INVESTIGATION OF NATIONAL BANKS. Other real estate and mortgagee otimed. Describe property, state fomi of couveyaiict', and from whoiu o'btuiiied. Amount at | Amount of which car- iprior lien on riea on books. property, if any. Estimated ! actual Date when value of property. acquired. State wlnther taken for "debts previously con- tracted," or otherwise. Loant and discounts, secured by mortgages or other real-estate security . Describe property, state fonn of conveyance, and from whom obtained. Amount at which carried on books. Amount of prior lien on pr()perty, if any. Estimated actual value of property. Date wben approved. State whether taken for " debts nrevionsly con- tracted, or otherwise. (Indorsed:) Banks will not fill up indorsements. Natl Bank, of Philadelphia, Penna., Feb'y 26, 1891. Xo. of bank, 2291. Report of the Keystone Treasury Department, Office of Comptroller of the Currency, Washington^ D. C, March 17 j 1891, Mr. William P. Drew, Examiner of National Banks, 3939 Chestnut St., Philadelphia, Pa.: My Dear Sir : I am in receipt of your favor of the 14th instant, wliich I have read very carefully. The condition of No. 2291 is such that I must insist upon the prompt payment of the larger part of the amount of their assessment within the next five days, or else I shall feel called upon to take peremptory action towards bringing the matter to a determination one way or the other. I do not feel at liberty to allow matters to proceed any further under the conditions which now exist, and you will please so inform the parties in interest without delay and advise me of their reply. I am very much surprised to learn that Mr. Nichols and Mr. McFadden have re- signed as directors of the bank, as I was led to understand while I was in Phila- delphia that they were to be the principal agents in bringing the bank back again into line. I supposed, from assurances given me by Mr. MnrHli, Mr. Huey, and Mr. Haynes, that the amount of the assessment would be paid into the bank within a very few days from the time they received my communication. The directors of the bank should understand that their failure to qualify after their last election, or their resignation at this time, will not in any manner protect th«m from their responsibility as directors during the period when the losses occurred to the bank. It seems to me that if they thoroughly understood their interests they would realize that promptness and courage would be in the end the wisest and cheapest way in which they can escape from the present dilemma. Very respectfully, E. S. Lacey, ComptroUci'. Philadelphia, March 18, 1891. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C: Sir: Your letter of the 17th instant, referring to No. 2291, was duly received and its terms communicated to the board of directors and to certain other stockholders. They state that they recognize the imperative nature of the instructions and will endeavor to comply therewith within the specified time. There has been no change in the condition of the bank of any importance since my letter to you of the 14th instant. I will advise you daily of progress made in the desired direction, and meanwhile will employ my best endeavors to assist to that end. Very respectfully, W. P. Drew, National Bank Examiner. INVESTIGATION OF NATIONAL BANKS. 137 A. Mr. Marsh, president of the Keystone Bank, came to Washington on the 19th of March and called at my house about 6 or 7 o'clock in the evening. He told me that there were certain amounts of overissued stock of the bank in existence about wliich he felt he ought to inform me •!J^^^*^ ?^ ^ ^^^ *^^* ^^- ^^^'^^ ^^^^"^ his lifetime was interested with Mr. John Wanamaker in a deal connected with Eeading Railroad stock, If I recollect correctly; and that in order to supply the monev necessary to carry on that deal Mr. Lucas furnished Mr. Wanamaker ^^^^^t' ^^^ ^*^^" ^^ ^^^^^ ^^^ money he had furnished certain shares. Mr. Wanamaker had used these shares to borrow money on with which to carry part of that deal. He said that stock was still in existence, and that until that could be retired there was no use talking about resuscitating the bank. He told me that he had seen Mr. Wanamaker and that Mr. Wanamaker had declined to return the stock. •<^« * P^T ^^ ^^^^ ^^^ reason why Mr. Wanamaker did not surrender u r^* n °^ reporting the conversation. The only reason he gave me why he thought Mr. Wanamaker ought to surrender the shares was because Mr. Wanamaker had been a customer of the bank many years ago, and that under the circumstances he ought to be lenient and sur- render the shares. Q. There was no suggestion made by you that this stock was an overissue?— A. He told me distinctly that it was an overissue and I so stated. He reported to me that he had made an arrangement with Mr. Wanamaker by which he was to pay a certain amount of monev and transfer certain property to him, whereupon Mr. Wanamaker wa*s to surrender the stoc^k, but that Mr. Wanamaker had recently informed liim he could not carry it out, and consequently he had come to inform me of the existence of that stock. By Mr. Wike : Q. Whatwas thedate of that ?— A. It was March 19, 1891. He thought It was a hardship that Mr. Wanamaker would not carry out his a^-ree- ment, inasmuch as Mr. Wanamaker was a personal friend and had re- ceived accommodations at the bank. I heard what he had to say in relation to the matter, and revolving it in my mind I concluded I would intorm the Department of Justice of the situation of affairs. I was satisfied he had not been faithful. He had deceived me as to the losses sustained by the bank and its condition. I made up my mind that I could not give the matter of the resuscitation any further considera- tion. I then suggested to Mr. Marsh that he go to Mr. Wanamaker's house and inform him that he (Marsh) had told me as to the overissue and come back and report. He left the house. I immediately went over to the house of the Attorney- General, and, not finding him, I went to the house of the Solicitor-General, Mr. Taft, and informed him of the whole situation. 1 told him that Mr. Marsh would be back at mv house, and If he desired Mr. Marsh could be arrested before he lef't ine city. Mr. Taffc came to the conclusion that, inasmuch, as Mr Marsh had come to Washington for the purpose of informing me of this that he would not be likely to try to escape, and therefore he would not arrest him. I went ba^ ^f ^^^ list of shareholders on the soiven ^^ ^^ in Jnly? 1889, which was the last report prior to the in- Q. Did you not have one of a later date here the other dav?— A JNo, sir. ^ 4 >"! .'? W'^ . . * ' 'I '1^ '■■i 140 INVESTIGATION OF NATIONAL BANKS. 2Sro. of bank, 2291. Examiner^s report of the condition of the Keystone National Bank, located at Philadel- phia, in the county of Philadelphia, State of Pennsylvania, at 9 o'clock a. m. January 7, 188^. John \V. Lucas, President. ] [G. W. Marsh, Cashier. Ivesourcea.. 8. 9. 10. 11. V2. 13. J4. W. 16. 17. 18. 1«>. *J0. 21. 22. 23. 24. 25. Not OH and bills diftcouuted Overdrsil'ts U. S. bonds tt» secure circulation U. S. bonds to secure deposits. . . U. S. bonds on hand Other stocks, bond, and luort- gapes Due from app'd reserve agents, viz: "Hanover Nat. Bank," N.Y Due from other national banks (37) Due from State banks and bankers (13) Banking house Other real estate , i*'ui*niture and fix- tures $10,000 Current expenses... Taxes paid 3, 8«r>. 40 Premiums paid Exchange Checks and other cash items Exch's for C. H.,includ'g i;

aid Individual deposits, vi/.: Subject to clieck.$0()7, KiO. 40 Demand cert if s . . 7, 724. 55 Time certificates. Certified checks . Cashier's checks Dollars. 200,000 40, 000 6,261.96 15 180,000 2.61 18, 953. 80 26, 325 i 12. 13. 14. 15. 16. 17. United States deposits Deposits of U. S. disbursing oflicers Due to national banks (2) Due to State banks and bank- ers (2) * Due bills Notes and bills rediscouuted . . . Bills payable 674, 884. 95 3,197.49 1. M.08 2_'. :t79. 74 2.'», iiOO 9,000 40, 000 1,690 16 1,153,461.12 Cash over Total 1,153,461.12 Records: Complete; bills discoimted are proved montbly; are correct; all beariug 6 per cent interest. Other books: Very well kept; 2 iiidividiiul ledgers (8(X) ae'ts) balanced monthly; no differences. President: Manager of bank; a successfiil merchant, firm of Lucas & Bros., whole- sale grocers; a capable and attentive otticer; owns 612 shares. Cashier: Formerly teller in 3•>*••>«•.>«•-■- - >*■ Ditnian, J.G Dunham, Jno. Co Downs. M. D " Emma Excel . Div. Sons of Temp No. of shares. I ii << 31 50 50 25 31 50 6 1 6 10 12 10 15 20 125 25 20 10 10 10 10 15 22 11 10 9 12 12 30 2 100 13 15 10 20 50 10 70 10 20 5 13 10 INVESTIGATION OF NATIONAL BANKS. 143 Copy of list of names and residences of shareholders, cresident of somebank of Philadelphia ?— A. Yes, sir ; from Mr. Comegys. I will proceed to read the next communication, which was a telegram on March 20. (Mr. Lacey read from copies of letters received and sent, which will INVESTIGATION OF NATIONAL BANKS. 145 be furnished to the committee. During the reading, the following pro- ceedings took place:) Philadelphia, March 19, 1891. Sir: At the close of business to-day No. 2291 "settled" as follows: 5«8erve ^ $22,000 g"""^^ 8 400 t.x('hniiju:e8 42 300 Mems. aud other funds '.'.'.'...'..'.'.'. 13 400 86,100 Deposits, city treasurer 600~000 Other depositors lill!! 589* 000 1, 189, 000 Mr. Marsh informed me this morning that he intended to go to Washington to-dav to see you with reference to your letter to me of the 17th inst. I had an interview with the chairman of the clearing house committee, and he states that they all regard the condition of the bank as critical, and while they ex- press themselves as desirous of all in their power to prevent the suspension of the bank, and hope that it may be able to "pull through," they nev^ertheless feel that unless fresh capital is put in without much further delay the collapse must come. Nothing has yet been done towards realizing from the property at the seashore and the reported offer of $350,000 for a portion of it has not yet taken shape. ' I am at the bank daily, and will continue to report to you 'its condition. There is no excitement apparent, but a steady drain is slowly going on. Verj' respectfully, W. P. Drew, TT 11 c T ^^*' ^ank Examiner. Hon. h. S. Lacey, Comptroller of the Currency, Washington, D. C, [Confidential.] At the Philadelphia National Bank, Philadelphia, Math. 19, 1891. Dear Sir : Should it unfortunately become necessary for you to appoint a receiver for any national bank in this city, and should you belnclined to ask whether I can suggest the name of aisuitable person for such a service, I venture to say that I e permitted to do anything without your assent. You may dispose with 3792 10 1 HI ;i! I } " * ik; INVESTIGATION OF NATIONAL BANKS. wervires of any on*:, usiii^ best Judfjint'iit nnd taking steps to preolutle the rsi-'Jipt' of any guilty' person. Make uo setttlements whatever, but await further iuxtnu- tious. E. S. Lacey, Comptroller. [Telegram.] TllEASURY DKPAKTMKNT, Office of thk CoMrrROLLER ok the Ci rrkncy, Washington, March JiO, 1891. \V. P. Drew, Kxumrner in rharf/e Keffsione National Bank, Philadelphia, Pa.: Charles J. fcjtoddard of this office will meet you to-morrow morning with authority to assist. E. S. Lacey, Comptroller. Treasitry Departmen r, Office of Comitroli.er ok the CrRKEs< y, Washington, D. C, March 20, 1891. Sir: In view of your telegram and the apparent Tiecessities, Mr. Charles J. Stod- dard, of tbis office, is hereby auth«»rized to render you sueh assistance as maybe in his ])ower witb respect to the affairs of the bank temporarily, or until other arrange- ments may bo found expedient. E. S. Lacey, Comptroller. Mr. Wm. p. Drew, National Bank Examiner, In charge Jieystone National Bank, Philadelphia, Pa. Philadelphia, March 20, 1891. Sir: Your telegram of last evening was received by me at 10 o'clock p. m., and this morning I Avas at No. 2201 at o'clock, as directed. At 9.50 your telegram of this morning was receiveank's assets and had closed the doors. In order to admit those having business with " The Central Trust Co.," Avhich occupies a portion of the main room, police were stationed outside the doors for that imrpose, and to prevent entrance of others. I posted at the same time a notii^e that the bank was closed by the order of the Comptroller on the outer door of the bank. There was a throng of people, many of them dejjositors, in front of IiIh' bank, which gradually diminished in numbers until, at Ifjiee o'clock, there were but few remaining. The directors were present at the time of receipt of your order closing the bank, it being the regular day for their meeting. Much disappointment was ex]uessedby them, and by some other stockholders, at this sudden action; but as time went on, and the wisdom of the step was discussed, a feeling that it was, after all, best fVu- all concerned, became generally prevalent among them, and measures for resusci- tating the bank were consiilered. I remained in tlie bank until four o'clock, and will hold personal possession until otherwise ordered. I immediately, on closing the bank, telegraphed you to that effect, and sent a 8e<;ond telegram soon after. I also telegraphed in answer to your second telegram, repeat- ing the substance of the first one. My principal object in suggesting in my telegram that Mr. Lynch be detailed to the bank was because he has had so much experience in such cases that I thought he could render the bank more service than perhaps I might. Still, as there does not appear to be any promise of long excitement on the part of the depositors, and as I am familiar with the condition of the books and accounts of the bank, I may in this respect make up to some extent for my lack of ex])erience in the matter. I shall endeavor to resuscitate the bank, and meantime will faithfully obey your instructions. I will write to you daily in reference to the situation. Very respectfully, Hon. E. S. liACEY, Comptroller of the Currency, Washington, D. C. W. P. Drew. Nat. Bank Examiner. Mem. 8. x>- ni. -Sinct writing the above I have received your two telegrams of this p. m. W. P. Drew. INVESTIGATION OF NATIONAL BANKS. 147 [Telegram.] E.S.LACKT, March 21, 1891. Comptroller of Currency, Washington, D. C: Agreeably disappointed. Everything quiet. Shall return to see you to-morrow. C. J. Stoddard. Philadelphia, March 21, 1891. Sir : I thank you very much for sending Mr. Stoddard to me. I hope you will let him return on Monday for a few days at least. Have rec'd your telegram and will call as directed. A proposition from very strong parties has been made to take the bank. I expect that It will result favorably. Meanwhile I wiU endeavor to carry out your instruc- tions in all particulars. Very truly, yours, W. P. Dbbw, Hon. E. S. Lacby, ^^'- ^^^^^ Examiner, Comptroller of Currency y Washington, D. C. [Telegram— Confidential. 1 Treasury Depajitment, Office of the Comptroller of the Currency, W P Drew Washington, March 21, 1891. Examiner in charge of Keystone National Bank, Philadelphia, Pa.: Call at southeast corner of Eighteenth and Spruce streets at eight o'clock this even- ing and give Mr. W close estimate of assets and liabilities. Encourage all efforts to reopen the bank and give out no information except such as will conduce to that end and then with great care. E. S. Lacey, Comptroller. [Personal.] Treasury Department, Office of Comptroller of the Currency, Washington, D. C, March 21, 'iSOl. Mr. B. B. CoMEGYS, Care Philadelphia National Bank, Philadelphia, Pa.: My Dear Sir: I am in receipt of your valued favor of the 19th instant and note Its contents. As you are aware I was compelled to order the closing of the Keystone National m^L^u^ef aTe'L\r To'rfopen T""'' ^'"^ '' "P^^^"* ^ ^^^^^^^^ *^«^^^"^^ ^^^^ P^^^* V^r^^'^tt^t^X^lt:^^ Buggestions you may be able to make in reference to a Of course I expect there will be many candidates and much to be considered in se- lectmg a person to properly administer the trust, but I can assure you that any suff- Mdered ^"""^ ™*^ ""^^^ ^ ^'^^ ^® ""^^^ thankfully received aid carefully coi- Very respectfully, E. S. Lacey. iqS'.^a^ ^t y®^®£^^rew. Q. Where was that place at which they were to meet? — A. It was the residence of Mr. Wanamaker's son or his own, I forget which — one or the other. Q. Have you stated fully the substance of the conversation between yourself and Mr. Wanamaker? — A. I have stated all that I remember of the (conversation. I will be glad to give any further light in regard to it if the members of the committee desire it. By Mr. Dickerson : Q. How long did Mr. Wanamaker retain this stock after that? — A. That will be developed in the correspondence. I have forgotten the j)articulars. 1 will read the next reply which Mr. Drew made. Mr. Drew wrote me March 22. (After reading the letter of March 22, 1891, from Mr. Drew:) Philadelphia, March 2Snd, 1891. SiK : In accordance with yonr instructions by telegram yesterday, I called upon tlu^ gentleman named. He was evidently not aware of the purpose of my visit until I had explained it to him, but was no less glad to see me. I laid before him verbally a statement of the condition of the bank as I under- stand it, and after a free conversation upon the points involved, I left with the con- viction that he did not wish to assume ownership or control of it. Scmio other matters were incidentally adverted to, affecting the conduct of the bank's officials. His opinion evidently is that the bank is worth but little, if any more, than the ''good will," and that, at the best, there is, as he said, '' No money in the banking business." Very respectfully, W. P. Drew, Nat. Bank Examiner. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C» [O. W. Marsh, president. John Hayes, cashier. Chas. Lawrence, asst. cashier.] Keystone National Bank, 1326 and 1328 Chestnut Street, Opposite U. S. Mint, Philadelphia, March 22, 1891. Sir: I have the honor to report that, in obedience to your instructions, I closed this bank at five minutes after 10 o'clock on the 20th inst. The few deposits iilready made for that day were carefully set aside as received, to be returned to the respec- tive depositors. 150 INVESTIGATION OF NATIONAL BANKS. |4 .IJ"«i;H, if 1 at once took charge of the bank, taking all the asaets of every kind into my possession, and. tliey were immediately placed in the vault under my personal and sec: u re custody. As the Central Trust t'o. has its offices in the same room, police officers were stationed at the doors of the bank, and no persons wcbb admitted except those who had business with that ctmipany, or whom it was necessary that I should see in connection with the luisiness of the bank. There was no turbulency or excitement outside beyond what might naturally be expected in such a case, and the following day, yesterday, the doors were ojjened as usual, with the precaution of posting an officer of police inside to prevent any peared some time ago as collateral for a loan from bankers here, which loan has been paid, and I learn that these certificates are in ]>rivate hands .without liability against them. Examination of the stock books of the bank, and a very thorough one was made not long ago, has thus far failed to show the existence of any certificates in excess. I shall, with Mr. Stoildard's help, immediately enter upon another examination, and will report result. Any such certiticates as those refeiTed to are no doubt the property of the bank, and could be obtained on legal demand from any holder. If the report is true, I cannot conceive how such certiKcates exist unless the management of the bank at the time deliberately failed to cancel thein, and put them out fraudulently, for some private speculative purposes. 1 thank you for allowing Mr. Stoddard to assist me for a short time. His experi- ence is very valuable to me. When things become settled I shall need no assistance until either the bank is rehabilitated, or a receiver regularly placed in charge. No little interest is manifested here, particularly by the news])apers, to ascertain pre- cisely how mucli money was to the credit of the city treasurer when the bank closed, and iiiany reports ha ve'been publisheil putting the amount many hundreds of thousands above the amount ($400,000), limited by city councils. I have studiously declined to give any information to anybody, for no good purpose would be subserved by doing so. The facts are as follows : John Bardsley, city treasurer $600, 606. 65 John Bardsley, special 35, 881. 55 John Bardsley, overdniwn 34, 008. 52 His bondsmen are very rich men, and I hear to-day that they, and other of his friends will 8o0. 35 7,971.91 344,886.60 2,261,249.58 I 139,343.12 I 2,261,249.58 139.343.12 2,400,592.70 2,40(t,592.70 (^■i I wish t;0 state here that this was the first information from Mr. Drew in regard to any overissue of stock, and this was after the bunk was closed by me. By the Chairman: Q. Is that statement here which is referred to in that letter? — A. That is not here. It was just a brief memorandum on a slip of paper. That is ftilly covered by his official rej^ort later on, but the slip ought to have been copied. Q. The Mr. '' W.'' referred to in Mr. Drew's eommtunication of March 22, 1891, means Mr. Wanamaker?— A. Yes, sir. 1 r»i> INVKSTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 153 if % « :)■ 1 V*y Mr. DirKERSON: (). ICxphiiii in ivt'eivnce to this the question of overissue of stock. Tli(* uiK'aiicekMl old certiticates of stock were put upon tlie market im- proixnly ? — A. They were uncanceled certificates that had been sur- rendered. Q. I thouji'lit that the new stock was issued and the old ones can- celed? — A. No. Mr. Lucas might have a certificate for 100 shares of stoc-k- Me would sell it to Mr. Joues^ and Mr. Lucas would assign that in blank and deposit it with the cashier, and the cashier would issue to Jones KK) shares of new stock, but the old certificate would remain un('aneeled. Lucas would afterwards use the old certificate by handing it over to Mr. Wanamaker as collateral. [Private.] Philadelphia, March S3. 1891. Sir: I expect that to-morrow, after making an examination of the condition of tin* iisscts and liabilities of tht' bank, so far as I can properly exhibit them, the parties who are contemplating the rehabiliation of the bank will come to some conrlnsion on the subject. Should any result be reached I will promptly communi- cate the same to yon. Meanwhile, affairs of the bank are goinj; on smoothly, and lists of assets and lial)ilities are beinji; prepared. A few questions concerning; dis- l)osiliou of collections, KAR Mr. Lacey: This bank at date of suspension held a few items for collection for customers, such items not having been entered on the books as credits, nor on pass bc^oks as deposits. They formed no part of the bank's assets and were collected for accommodation. Moneys received since suspension for these items have been kept separate in each day's transactions, and a few persons not indebted nor liable in any way to the bank request delivery of proceeds as a measure of relief. May the examiner make such deliveries upon request? 2nd. A creditor has requested the return of two notes (foreign) which were placed in the bank for collection. One was not endorsed, and the bank has no title iu either. He is not liable to the bank in any way, and I don't see how they can ever become assets of the bank. May the notes be delivered as he requests f 3rd. A creditor, and who is a customer, is the treasurer of a manufacturing company and has been accustomed to deposit collection items of the company, endorsed over to him for his individual account. He is a large creditor and not individually liable. The company is also a creditor, but is liable for unmatured discounts in excess of balance. Mr. Gray's items are being collected by the examiner, and the former de- sires the proceeds as collected. It should be said that are not many cases of a character as above described, and that, through the foresight of Mr, Drew, the books of the bank are up to date, so that tlie liability of any person can be determined without difficulty. Mr. Drew is aware that an examiner is not authorized to pay out funds of the bank, but as these collection proceeds do not belong to the bank, I think he may safely give affirmative answers in the first two cases at least, and probably in the third. These matters will rest quietly for a few days if the bank's fate is quickly deter- mined, but after that ))ersous may demand to know the authority for withholding collections made by the examiner as an agent. What do you advise? With respect to the city treasurer matter, the subject of Mr. Drew's official com- munication, I can't see how his demand for moneys collected on the 20th can consist- ently be refused. Could he not succesafully claim that the whole fund should be treated as though deposited on the SOth, even though he knew the custom of the bank ? He will rest content, however, with the return of the money collected on the 20ih and the checks returned not paid. There are some very strong men who appear to be willing to co-operate in any well- considered plan to save the bank from a receivership and continue the banking busi- ness on the "old stand." There wUl no doubt be some develojrmenfc in a day or two, as it is felt that delay is harmful. With much respect, C. J. Stoddard. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C, By Mr. Cox : Q. In the letter of Mr. Comegys of March 24, 1801, he does not sug- gest the niiine of the gentleman at all?— A. No, sir; he had not yet jnentioned tlie gentleman's name. Q. Bo you know to whom that second question in that letter refers! — A. To Mr. Gray, who was treasurer of a manufiicturing cojnpany, if I recollect correctly. Q. You do not remember tlie title of the company f— A. No, sir. [Telegram.] Treasury Department, Office of the Comptroller of the Cijrrkxcy, Washinqtou, March 25, 1891. W. P. Drew, " ' ' Examiner in charge Keystone National Bank, Philadelphia, Pa.: Letter twenty-fourth received. Adjustment with city treasurer must await ap- pointment of receiver. E. S. Lacey, Comptroller. INVESTIGATION OF NATIONAL BANKS. 155 Treasury Department, Office of Comptroller of the Currency, Washington, D. C, March 25, 1891. Dear Sir: Your communication is at hand, intimating that certain parties would surrender to you some 4,000 shares of stock in the Keystone National Bank. If this will enable the bank to resume business, or in any way work to its advan- tage, I, of course, would make no objection ; but it must be distinctly understood that the individual liability of every shareholder attaches at the date of insolvency, and that no transfer of stock since that ttme will be permitted to work a release thereof if it shall become necessary to resort to a winding up of the affairs of the bank. Bear this in mind iu any transaction connected with the transfer of shares. No t ransfers upon the books of the bank or reissue of certificates should be made while the bank is in your hands. Very respectfully, E. S. Lacey, Comptroller. Mr. W. P. Drew, Examiiur in charge Keystone National Bank, Philadelphia^ Fa. ' Treasury Department, Office of Comptroller of the Currency, Washington, D. C, March 25, 1891. Dear Sir: Your letter of the 24th instant camie to baud by due course of mail. I note what you say in reference to a certain deposit made in the Keystone National Bank by the city treasurer, part of which was placed to his credit on the 19th instant and a jmrt intended to be credited on the 20th, but the credit was not completed. After consultation with the Solicitor of the Treasury I telegraphed you as follows, which is hereby confirmed : ''Letter of twenty-fourth received. Adjustment with city treasurer must await appointment of a receiver." I an> of the opinion that the amount credited to the city treasurer on the 19th has become a portion of the assets of the bank, and that the city treasurer is a general creditor so far as relates to that sum. The amount which was not so credited, and has remained separate and apart from the other assets of the bank, may possibly be held as not constituting a deposit. This matter, however, being still in doubt, the Solicitor advises me should be left, for adjustment by the receiver when appointed. I regret the necessity for delay in this matter, but do not feel authorized to pay over moneys which may be possibly held to be a part of the assets of the bank. I also have a letter from Mr. Stoddard, in which, by your direction, certain in-* quiries are submitted. The first inquiry submitted by him reads as follows : '' This bank at the date of suspension held a few items for collection for customers, such items not having been entered on the books as credits, nor on pass books as de- posits. They formed no part of the bank's assets and were collected for accommoda- tion. Moneys received since suspension for these items have been kept separate in each day's transactions, and a few persons, not indebted nor liable in any way to the bank, request delivery of proceeds as a measure of relief." In reply you are respectfully informed that you may make such delivery, upon request, taking satisfactory receipt from undoubted owners, who are not in any way indebted to the bank. The second inquiry reads as follows: ''A creditor has requested the return of two notes (foreign) which were placed in the bank for collection. One was not endorsed and the bank has no title to either. He is not liable to the bank in any way, and I don't see how they can ever become assets of the bank. May the notes be delivered as he requests?" In reply you are informed that these notes may be returned to the owners, upon recjuest, and upon their making a proper receipt therefor. As to the third inquiry, which refers to a customer of the bank who is the treas- urer of a manufacturing company, you are respectfully advised that an adjustment of the atfairs of this customer and the company of which he is treasurer must await the appointment of a receiver. Very respectfully, E. S. Lacey, Comptroller. Mr. W. P. Drew, Examiner in charge of Keystone National Banlc, Philadelphia, Pa, \ 'r > : . I*' :,, iTii'! ''* 156 INVESTIGATION OP NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 157 m:% i"fH i^.wmmt U I. r, Philadelphia, March 25, 1891. Sir: A representative of the parties who have in contemplation the rehabilitation of No. 2291 was shown to-day a general statement of the condition of the hank, and expressed satisfaction therewith, exce]>t with the item of seashore property. He stated tliat lie would lay the matter before his principals, and after they had come to a conclusion would inform me of the result. Some other parties are considering the matter, including one from New York, but 1 do not place much cathy, after all the ai)peal8 to protect their own interest, if they nuike a loss of most of all of the stock. Mr. Stodilard is of almost essential importance here, and I hope you will continue the favor of i)ermitting him to remain for some days longer. The ''olive branch" has pas8e to date. I saw to-day a representative of those who have had the subject of relieving the bank under consideration, and they are not prepared quite yet to give any definite answer. They talk of guaranteeing the deposits of the bank, which then should go into liquidation by forming a new bank at once, to occupy the rooms of this bank, taking the assets of this bank to recoup themselves from, engaging, when such de- iiosit debt is paid therefrom, to turn over the balance, if any, of assets, to the stock- hohlers, to be liquidated by and for themselves. What will be the result I cannot say, but I have told them that immediate action is required pro or con on their part. Another proposition, which has gained much acceptance to-day, is, following your order for assessment of 50 per cenf on the stock, and which was being entered upon when the bank was summarily closed, is when the 4,000 shares are turned in, then to collect from the remaining 6,000 shares $150,000, which if successful would put $350,000 fresh capital into the bank. Several stockholders have been interviewed already on this point, and a systematic effort to see mcJst of the rest will be made to-morrow and also some depositors who have expressed a willingness to accept stock under a new management for the amt. of their deposits will also be seen and a vigorous and systemati(; plan to eflfect these purposes has been entered Tipon. ' Of the 4,000 shares likely to be returned to the bank without consideration, tme of our bank ])residents here has offered to take and pay for $50,000, and another bank president $25,000, after satisfying themselves that it would be safe to do so, and these gentlemen, being men of recognized financial and business strength, would, I think lead others to consider the same step. I will keep you fully informed of all progress in all matters. It has occuiTed to me that perhaps, if you, agree in the wisdom of still further leniency in tbe way of delay to ap}>oint a receiver, you would feel willing to let me hold the trust for a little longer period to give time to show whether the plans re- ferred to can be consummated. I think the interests of all concerned now are as secure as if a receiver were in possession, and perhaps the knowledge of the situa- tion and also my accjuaintance with parties likely to help the bank in its extremity will pardon longer indulgence on the part of the Comptroller. All of your directions have been fully and faithfully carried out and the feeling that the office will render every encouragement is appreciated. If you agree with me I would respectfully suggest that you fix a time at which these negotiations for recovery must be beyond question certain to be successful or the alternative of a receiver surely expected. Very respectfully, W. P. Drew, Nat. Bank Examiner, ' Hon E. S. Lacey, Comptroller of the Currency, Washington, D, C, Q, I notice there are some references to certificates of deposit. Won't you recur to that a moment? The Witness (reading). " I have not yet made a call for certificates of deposit publicly in the papers." (The letter read by witness is from Mr. Drew, dated March 26, 1801.) Q. Is there something further about that? — A. What brought that out was that Mr. Stoddard suggested to him to advertise that anyone holding certificates of deposit should bring them in. Q. He (the writer) says he has no reason to doubt the accuracy of that account. The Witness (reading letter). "I have yet made no call of certifi- cates, because ittuiight increase unnecessarily the feeling in regard to the bank. I have no reason to doubt the accuracy of that account in the books, but shall satisfy myself in all cases as soon as practicable." Q. The certificates of deposit did not cover this account which they call the duebill account? — A. No, sirj no reference is made in this let- ter to that. m ') . ,4; t ■i ! .^!' 158 INVESTIGATION OF NATIONAL BANKS. tit INVESTIGATION OF NATIONAL BANKS. 159 II II ■^2 Q. You do not understand that the expression "certificate of de- posit refers to this? — A. They were two separate and distinct ac- counts. Q. As a matter of fact, do you find that the duebill account discloses thatf — A. The duebilJ account showed a very large indebt^ness that was not known to tlie examiner or the Comptroller; also the certificate of deposit accounts showed gross irregularities. By Mr. Cox: Q. I did not understand clearly why so much wa« paid; or did he l»r()pi)se to i)ay *^on the stock that was out?" — A. The Lucas estate and other parties in interest projjosed to surrender 4,000 shares of stock, and in order that tlie bank might make use of these shares and theiel)y put itself in possession of funds. I understand this letter to mean that one bank president offered to take $50,000 w^orth and another $135,000, and put the money into the bank, if, upon examination, they found it safe to 00 uncanceled certificat(*s of stock" and he says, "this has occupied much of our attention during the day." 1 should think the explanation of it was til at it was handed to them to be verified, and if shown to be an over- issut^ it was to be surrendered next day. Q. The next letter of Stoddard's is of the same date? — A. Yes, sir; the same date as Drew's. He said "the stock was in hand yesterday and will be delivered to-morrow." That would seem to indicia te that tliey had handed it in and they had been at work verifying it, but it was not to be surrendered until the next day. By Mr. Dickerson : Q. That was the examination and not the surrender of the stock? — A. Yes, sir. The surrender was to take place the next day, when they had determined whether it was overissue': ^ V 3792- -11 " % -tmi^ rl SI 4 162 INVESTIGA.TION OF NATIONAL BANKS. United Statks Internal Revenue, CoLLECToit's Office, Distkict, Pennsylvania, Phila., Mch. 30, 1891.^ My DevkCompthollek: Some friends of mine who are interested in the Kev. stone J^auk of this city, have hecome uneasy for fear you will insist upon ch)8ing; out said bank bi^fore they have time to fully eoniplete their plan of reorganization. I am advised that said bank can go on, provided the gentlemen now trying to arrange matters have the necessary time. Will you do me the favor to give all the time possible and not press the questicm of a receiver for at least 10 days? I have no doubt l)ut that by the end of tluit period the bank can go. I will see you on Friday upon my retuin to Washington and tell you more about it. Y'rs truly, « „ ^ B. F. GlLKESON. Hon. E. S. Lacey. Philadelphia, March 30, 1S91. Sir: The i)arties who for the last few days have had under advisement the resusci- tation of No. 2931, and who Avere expected to report their conchisions to-day, will not be able to do so until tomorrow. , This delay may not be disc«>uraging, but 1 am inclined to think it is unpromising. Some talk has been had to-day with reference to consolidating another bank with 2931, but unless within a few days some of these propositions take full form, I see no other way out of the dilemma than a receivership. Your telegram so authorizing was received to-day, and I have accordingly directed the attys. to continue in the work of perfecting title, etc., with respect to the sea- shore property. 1 will at once advise you of any change in the situation. Very respectfully, ^ir t» t^ W. P. Dkew, NaU Bank Examiner. Hon. E. S. Lacey, Comptroller of the Currency y Washington, D. C, By the Chairman : Q. (After hearing reading of letter of March 30, 1891, giving the number of the bank as 2991.) What was the correct number of the bank?— A. 2291. Witness then read letters and telegram as follows; [Telegram.] March 31, 1891. Hon. E. S. Lacey, Comptroller of Currency, Washington, D. C. Meetino- to-day of majority of stock to consider reduction to two hundred and in- crease three hundred thousand new stock. If decided on, meeting of all stock- holders to-morrow morning. _ W. P. Drew, National Bank Examiner. Philadelphia, March 31, 1891. Sir: An informal meeting of some ten stockholders of the Keystone National Bank, representing more than one-half of the whole stock, was held this afternoon, at which it wa^ decided to reduce the capital to $200,000, and to otter for sale $400,000 new stock, to be subscribed for at the bank within the next two days. If sufficient enclied in the way of new stock, and the ]»roposif ion to do so has been maresented. 1 am willing 1o undertake any resjumsibility you may ]dease to put u])on me, and will faithfully and fully carry out any orders which would in the interim ccmie to a receiver. The internal economy of the bank is in good shape, and the receiver, should he come, Avill so find it. I think 1 can refer confidently to Mr. Stoddard in this asser tion. INVESTIGATION O^ NATIONAL BANKS. 1G5 If you still thinic that you can give no longer time tlian the close of Thursday next, jdeas-e so teh'grapii me on receipt of this, that, in the event of ]>o.ssible failure to secure the needed funds by that time, lean i>repare the wav for the receiver's arrival. \'ery re.s]>ectfully, W. P. Drew, Xat. Bunk Examiner. Hon. E. s. Lacey, Comptroller of the Currency, Washington, D. C. P. S.— Mr. McFadden headed the list with 25,000. He has already $35,000 stock, and IS als<» locked up in the bank. Many depositors have suggested a meeting to help the suscriptions, and all are evidently hopeful of restoration of the bank. Mr. Marsh, of his own motion and ex]»ense, has sent the inclosed circular and card to all. Hon. .1. H. Read, U. S. Dist. Atty., attended the meeting vesterdav, and .said he would write to you on the situation. Keystone National Bank, 1326 and 1328 Chestnut Street, opposite the U. S. Mint, Philadelphia, April 1, 1891. De.ar Sir: At an informal uieeting of the majority of the stockholders, held March 31st, it w as thought that the best plan to resume business and relieve the depositors would be to deenase the capital stock to $200,000 and then to increase it, by sellin«»- new stock, to $600,(100, with a consequent change of management. This bein«rdone' the Comptroller of the Currency will allow the bank to begin business. '^ ' It was thojight that some considerable part of the stock would be subscribed for by the i)resent dejjositors. Should you feel willing to help in this plan and subscribe some part of your pres- ent balance, you would, 1 think, make a good investment and aid very much in lib- crating the locked-up balances. If you ran not conveniently call, and desire to subscribe, vour acceptance on in- closed car«l will reieive prompt attention. Very truly, yours, G. W. Marsh. Dear Sir Saginaw, East Side, Michigan, April 2, 1891. I notice that there is a failure of the Keystone National Biink, of Phila- delphia, and that a receiver is 1 ik<'ly to be a ppointed. It has occuned to m'e that vou can perhap.s do sonict liing for my brother, K. A., for that ])osition. Secretary Foster IS an old friend of his, and I would name him as a reference for ray brother's com- petency. It will ]»lease me very much if you shall find it possible to aid him in tliis matter. 1 nturn to New York City next week. Many thanks for the bundle of documents you sent me. Yours most truly, u ,, o T R. G. HORR. Hon. h. S. Lacey, Comptroller of the^ Currency, Washington, D. C. [Telegram.] Treasury Department, 1T„ ,, „ r ^^a8hington,D. C, Apl 2nd, 1891. J Ion. Edward S. Lacey, Comptroller: Mr. Marsh, of the Keystone Bank, came down last night to say that it Avas reported .^ou intend to ap])oint a receiver of the Keystone Bank unless something more defi- nite was done to-day. I believe nothing would sufier from giving them twentv-foiir "ours longer, at the *^nd of which they may i)ut on paper something more definite to je presented to you. From what he says they are getting along prettv well in secur- 1 ig suhscriptK.ns to the new stock. I would recommend appointment of receiver be ueierred, say one day, until he has an opportunity to state something mort^ definite. John Wanamaker. ii: m i; 166 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 167 m PlIILADKLPHIA, Ap'l 2, 1S91. Sir: Kepresentatives of the parties contemplating taking the new stock of the Keystone National Bank have examined the assets and liabilities of the bank this afternoon, and will to-morrow report their decision as to whether they will make the investnuMit. The soundness of some of the bills discounted and the valuation to be put upon the seaMhore property are the uncertain elements in the calculation. Meanwhile during the day many depositors have agreed to take stock for a part of their a'c's. I will telegraph results as soon as reached. The friends of the bank are making every effort to save it from a receiver, but I fear in vain. I can turn over the trust in an hour's time if necessary. Yours respectfully, W. P. Drew, Nat. Bank Examiner. Iton. E. S. Lacey. Comptroller of the Currency, Washington, D, C, I hereby agree to subscribe for National Bank, to be paid for out of my present balance. Philadelphia, April 2nd, 1891. shares of capital stock of the Keystone To Depositor, Treasury Department, Office of Comi»tkollkr of the Currency, Washington, D. C, April 2, 1891. Dear Sir : I am in receipt of your favor of the 31st ultimo, and note that it is proposed by certain stockholders that the capital stock of the Keystone National Bank be reduced $200,000, and thereafter increased in the sum of $400,000, the latter stock being subscribed for by parties who will pay the amount in cash. This would proceed upon the hypothesis that the. present assets of the bank are worth $200,000, after providing for all liabilities. I would suggest that it might be well for those hohling the $200,000 of old stock to deposit the same in escrow with some suitable person, accompanied by an agreement that in ease it should be found ultimately that the assets were not sufficient to meet the present liabilities of the bank and provide for $200,000 of stock, that any deficit should be made good by a surrender of a like amount of the old shares, to be reissued and sold to new sub- scribers for the benefit of the bank, in order to make good the deficit above re- ferred to. I know of no legal objection to this an-angement, with the proviso, of course, that it should appear upon the books of the bank that the owners of this st«Mk are indi- vidually liable, under existing provisions of law. This arrangement wouhl facilitate tlie proeuring of new subscriptions, I presume, for the reason that there is som<* uncertainty as to tlie value of the present assets of the bank, and as it is not probable that those who are now shareholders desire more than their just proportion of the new stork, ejjuity would indicate that the arrange- ment suggested by me should be carried out for the purpose of protecting new share- holders who ]>ay par in cash for their shares. I wish you would call the attention of the U. S. attorney. Read to this matter, and any others who you think would profit by the suggestion. Very respectfully, £. S. Lacky, Comptroller. Mr. W. P. Drew, National Bank Examiner, In charge Keifstone National Bank, Philadelphia, Pa, [S. S. Warner, president. R. A. Horr, cashier. W. Cushion, jr., asst cashier.] 2826. The First National Bank of Wellington, Ohio, April 3d, 1891. Sir: If the Keystone National Bank of Philadelphia, Penna., shall go into the hands of a receiver I would like the position, provided you consider it the right thing to do. Hon. Charles Foster, Sec'y of the Treasury, is well acquainted with me. I am quite willing you shall inquire of him as to my qualifications for the place. I have not nor shall I write him about it. Trusting that you will not consider this application presumptuous, I am Your ob't SeV't, K. A. Horr. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C. Treasury Department, Office of the Comptroller of the Currency, ^ _ _ Washington, April S, 1891. W. P. Drew, ^ i jt > Examiner in Charge Keystone National Bank, Philadelphia, Pa.: Date of receiver's appointment will depend npon progress shown in placing in- crease of stock. Telegraph me e»ch morning total amount of new stock subscr?bed. E. S. Lacey, Comptroller. Philadelphia, April 3, 1891. Sir : Your letter of the 2nd inst. was duly received and its contents communi- cated to those interested, all of whom commended your suggestions in regard to pla«;ing the $200,000 of the old stock in escrow, and appreciated this expression of your interest in their endeavors to place the bank again on its feet. U. S. . Diet. Atty. Read expresses his fiill concurrence in your views, and so endorsed your letter to be shown to those contemplating subscribing to the new stock. The parties who yesterday examined the assets with the purpose if those should in their opinion, be sufficient in value, to subscribe the necessary new capital re- ported unfavorably and withdrew. ' The total of pledges at close of business to-day is $238,000, including depositors' pledges, and tomorrow more is confidently expected. Parties here who have sub- scribed more than $100,000 to a proposed "Broad Street National Bank" are this evening in conference with the bank people on a proposition made by the former to turn this amount into the new subscription for the Keystone. Result of this will be known tomorrow, probably. Some strong people will be approached tomorrow who, it IS understood, are seeking investment in this direction with a viewof assum- mg the control. What the outcome of all this will be it is impossible to say, but it is clearlv ap- parent that the stockholders and their friends do not entertain the idea of ffivimr up until every expedient shall be fully tried. All parties interested say that they appreciate the difficulties under which your office may labor in granting more time, and that they will endeavor to secure your good opinion, even if they fail, I have no doubt. I will telegraph you tomorrow as requested. Very respectfully, W. P. Drew, Nat. Bank Examiner. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D, C. t 1G8 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 169 Treasury Depautmknt, Office of the Comptroller of the Currency, Washington, April 4, 1891. W. P. Drew, Examiner in Charge Keystone National Bank, Philadelphia, Pa.: In telegrapliin«5 ^^ give aggregate subscriptions for increase and not dally addi- tions. E. S. Lacey, Comptroller. , [Telegram.] April 4, 1891. Hon. E. S. Lacey, Comptroller of Currency, Washington, D. C: Six thousand this morning from depositors. Committee from proposed Broad St. National pledge fifty thousand conditional on representation in board and in- spection of assets. Will telegraph later in day. W. P. Drew, National Bank Examiner [Telegram.] Hon. E. S. Lacey. Total amount two hundred fifty-eight thousand. April 4, 1891. W. P. Drew, Nat. Bank Examiner. Philadelphia, Apl. 4, 1891. ferred decision as to subscribing $50,000 to the new stock of the latter until Monday. A movement has been started to-day to secure for the presidency of the Keystone, rehabilitated, Director Wagner, of the city department of public works, whose term of office expires to-day, and he has taken until Monday to give his decision. Should that be favorable, it would give great support to the movement, as he is a strong mun with a very strong following, and possesses uncommon qualifications for the position. The question then would not be the ability to procure the necessary funds, but the value of the assets and franchise. I am inclined to believe that he will accept. Very respectfully, W. P. Drew, Nat. Bank Examiner. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C, Statement of the City Trust, Safe Deposit and Surety Company, of Philadelphia. On the first day of January, 1891, the assets and liabilities of the company were: assets. Time loans $143,250.00 Demand loans 421, 834. 90 Cash in banks 160, 906. 71 Teller's cash 36,310.01 Mortgages and ground rents 108, 231. 00 Munici])al and railroad bonds 150, 400. 00 Real estate, 927 Chestnut street 224,850.26 '' " 929 '' '^ 30,591.36 Fixtures 6,:J35.22 Interest, rents, commissions accrued 7, .553. 53 Premiums due 3, 294. 92 Reclaimalilo or jierpetual ]»olicies 1, 200. IX> Due from sundry accounts 7, .377. 75 1, 302, 135. 66 liabilities. Due depositors $629,711.17 Capital stock , 500,000.00 Special deposits and rents 47, 062. 00 Trust funds 2,352.25 1,179,125.42 Surplus as to stockholders 123, 010. 24 Surj)lus as to bond and policy holders 623, 010. 24 I also certify that the net receipts for .January, February, and March, 1891, amounted to $21,224.81. County ok Philadelphia, ss.: James F. Lynd, being duly affirmed, says that he is the secretary and tieasurer of the City Trust, Safe Deposit and Surety Company, of Pliiladclphia, aud that the above is a correct statement of the financial condition of the company on January 1, 1891. James F. Lynd. Affirmed and subscribed to before me this 4tli day of April, A. D. 1891. [SEAL.] Wm. G. Wise Notary Puhlic. Treasury Department, Office of the Comptroller of the Currency, Washington, I). C, April 6, 1891. My Dear Mr. Horr : Your favor of the 2ud instant came to hand to-day. I note your suggestion and the same will have my best consideration. A project is on foot to resume business, in which case no receiver will be appointed. If this effort fails the person indicated by you will have very careful consideration. Very sincerely, „ « -r E. S. Lacey. Hon. R. G. Horr, Saginaw {East Side), Mich. Treasury Department, Office of the Comptroller of the Currency, Washington, D. C, April 6, 1891. My Dear Sir : Your valued favor of the 3rd instant came to hand to-day, and I note what you say in referrence to the receivership of the Keystone National Bank, of Philadelphia, in case the present efforts to reopen the bank fail. In re]dy I desire to say that due consideration will be given to your application when the time comes. Of course there are always a number of a]>plicants for such places, and frequently with strong recommendations of such character that one's personal desires must be ignored. I can assure you, however, that if the juoper opportunity otters I shall be very glad to offer you something of this kind. Very sincerely, E. S. Lacey. Hon. R. A. Horr, Wellington, Ohio. [Thaver. Itaiikin &. Coldren, attorneys at law, Washington, D. C. R. H. Thayer. J.M. Rankin. F.G.Coklren.] April 6, '91. My Dear Mr. Haxford: Will you be kind enough to see that the accompanying letter reaches Mr. Lacey'e hands early to-day. Many thanks for your courtesy. Very truly, RuFUS H. Thayer. Mr. H. .J. Hanford, Chief Clerk, tfc 11 r 1 I i i ^ i 170 INVESTIGATION OF NATIONAL BANKS. ' ' I I "• [Telegram.] April 6, 1891. Hon. E. S. Lacey, Comptroller of Currency, Washingtonf D. C. Two huudred sixty-two thousand this morning. Will telegraph later. W. P. Drew. Nat. Bank Examiner. Philadelphia, April 6, 1891. Sir: The pledges now reach $268,000, not much having heen done to-day heyond canvassing. It was hoped that Gen. Wagner, of whom I wrote in last letter, would be able to decide whether he would accept the presidency to-day, but as the inauguration of the new city encumbent took place to-day he was prevented by the duty of trans- ferring to his successor the department of public works and will not be able to re- port before to-morrow. Should he accept the place it is generally believed that it would encourage subscriptions to the new stock, and he would be able to surround himself with some of the ablest men in the city and insure success to the undertak- ing. Parties who have subscribed $40,000 to the proposed new bank will confer to-mor- row, as is expected, with those representing the new stock now being ]>ledged for the Keystone. I will advise you promptly of any results. Very respectfully, W. P. Drew, Nat. Bank Examiner, Hon. E. S. Lacey, Comptroller of the Currency ^ Washington, D. C» Treasury Department, Office of Comptroller of the Currency, Washington, I). C, April 6, 1891. Dear Sir: I am in receipt of your letter of the 4th instant, recommending the ap- pointment of Mr. .T. A. Sinn, of the above-named company, receiver of the Keystone National Bank, and will place theliame on file, to have careful consideration, should it be found necessary to appoint a receiver. Very respectfully, E. 8. Lacey, Comptroller, Mr. Charles M. Swain, (Care City Trust, Safe Deposit and Surety Co., Philadelphia, Pa.). Treasury Department, Office of Comptroller of the Currency, Washington, D. C, April 6', 1891, Dear Sir: I am in receipt of your reference of letter of Mr. Charles M. Swain, president of the City Trust, Safe Deposit and Surety Co., of Philadelphia, recom- mending the appointment of Mr. .Joseph A. Sinn, of said company, as receiver of the Keystone National Bank, and will place the same on file, to have careful considera- tion should it be found necessary to appoint a receiver. Very respectfully, E. S. Lacey, Comptroller, Mr. RuFUS Thayer. Atlantic Building, City, [Telegram.] Hon. E. S. Lacey, Comptroller of Cmrency, Washington, D. C: April 7, 1891. Total this morning two hundred seventv-four thousand. Conference with Wagner this afternoon. W. P. Drew, National Bank Examiner. INVESTIGATION OF NATIONAL BANKS. 171 Treasury Department, Office of Comptroller of the Currency. Washington, D. C, April 8, 1891. Sir: The account of Mr. C. J. Stoddard, for services and expenses on behalf of the Keystone National Bank, approved by me, is inclosed herewith, amounting to $114.00. You may remit the amount to him out of trust funds in your possession, filing the voucher as a charge to receiver's expense account in case the bank does not resume business. Very respectfully, ^ ^ ^^^^ Comptroller. Mr. Wm. p. Drew, , ^ , „,.,,,,. « National Bank Examiner, in charge Keystone National Bank, Pkdadelphta, Fa. I should explain that Mr. Stoddard was away on leave when he was in Philadelphia, and that he did not receive pay, only from one source. Witness then read telegram, as follows : [Telegram.] Treasury Department, Washington, D. C, Apl. 8, 1891. To Mr. Lacey : Marsh telegraphs me to-day to inform you that the parties negotiating for control of bank are to give answer to him on Friday next. Wanamaker. (From White House.) Q. The telegram you received on April 8, signed Wanamaker, came from Mr. John Wanamaker?— A. That is what I understand. Witness proceeded to read letters and telegrams, as follows: [Telegram.] April 8, 1891. Hon. E. S. Lacey, Comptroller of Currency, Washington, D. C: Revision of list reduces unconditional pledges to two hundred and fifty-four thou- sand. Wagner defers decision until Friday. Is favorably inclined. His acceptance will insure required balance. Windrim will write you to-day. W. P. Drew, National Bank Examiner. [Department of Public Works. Office: Broad and Market streets. Booms 210 and 212.] Philadelphia, April 8th, 1891. My Dear Mr. Lacey : A fnend of mine. General Louis Wagner, is being considered for the position of president of a reorganization of the Keystone National Bank. The general is a good business man, diligent, doing thoroughly whatever he undertakes. He is a man of strict integrity and I am satisfied would bring a business experience with him that would be valuable to the bank. He has told me that on Friday next, at 10 a. m., there is to be a meeting of gentle- men who are to finally conclude upon their action relative to the interests of the bank. He does not know what may be the outcome of the meeting, but has asked me to suggest to you that no action be taken in the aflairs of the old bank until after that meeting. I have known the general for fifteen years, and possibly more, and have alwaye respected him as a personal friend. Yours, truly, Jas. H. Windrim. Hon. Edward S. Lacey, Comptroller of the Currency, Washington, D, C. - s. II 172 INVESTIGATION OP NATIONAL BANKS. I! I'lllLADKLPUIA, Jpril 6\ 1891. Sir: I teloj^^raiihed you this moriiin**: that a revision of the pled^jes for the new stock of The Keystone National Bank showed reliahle suhs(ri])tions for two hundred uij«l hity-four thousand dolhus (.$2r)4,0(X)), it being thought best to eliiuiuate such pledges as might he either difficult or slow of collecti(ui. General \\aguer was at the bank this uiorning, and had a general view of the as- sets and liabilities, but, as he was obligeart of the State this alternoon, he asked for further tinu', until Friday the lOth instant, to make, with some of his friends, a detailed examination, and to give his answer. If he consents to take the l»ank it is likely that the residue of this new capital stock will be taken at once by his friends, annmg whom are many wealthv and induential men, among them Hon. K. H. Fitler, who has Just retired from the mayoralty, and Johu H. Michner, president of the Bank of North America, whom vou will remember seeing when you were here. The active (dearing-houae committee will support (General V/agner, and if he ioucludes, as I think he will, to take the bank, it would be fully and strongly rehabilitated. The de]>ositor8 are daily giving in subscriptions iii vaiying amounts to the new stock. Kvery thing is quiet, and a hojjeful air seems to prevail among the stockhtdders ami depositors. Geu. Wagner, in the event of his acceptance, will be surrounded by strong and well-known men in the directum. Of course I can jmlge only froiu this eml of the line, but I do not see that anyone's rights or privileges have been in the least abridged since the bank suspemled. Very respectfully, W. P. Drew , ,, T^ .. ^ -^"«'' Bank Exaininei'. Hon. E. S. Lacky, Comptroller of the Currency, ll'a)thhigton, D. C, [I'elegram.] Hon. E. S. La( EY, Comptroller of Currency, Washinyton, 1). C: Total this morning two hundred and seventy thousand. April 9, 1891. W. P. Drew, JS'a/. Bank Examiner. Treasi^ry Department, Office op Comptroller of the Currency. Washington, 1). C, April 9, 1891. * My Dear Mr. Windhim : I am in receipt cd" your value«l favor of the 8th instant and note what you say in reierence to your frien to this time nothing has ln'cn done, and I, with others in like positicm, have been placed in a very unpleasant position. My notes were there purely on collection, and the inoiiey l)elongingto me, and locked up; there is over six thousand dollars, and which causes me great incon- venience and trouble. 1 placed a $5,000 note there on collection on the morning of March 3d. It was paick a. m., to-day. I will attend and hope that something may come out of it, but if not, I would advise, without further parley or delay, the appoint- ment of a receiver. I am, very truly, yours, „ „ ^ _ H. W. Gray. Hon. E. S. Lacey, Comptroller of the Currency, WtMhington, D, C, P. 8.— The meeting of about a dozen of stockholders and de}>ositors together took jdace in an informal way. Gen'l Lewis Wagner, the prospective president, was pres- ent; he said he would accept the presidency, provided the bank could make a show- ing to warrant his taking hold of it; that is, if the examiner could furnish a state- ment to the clearing-house committee, to satisfy them, then it would be safe to assume the task. This the officers and esaminer promised to do, and the «juestion as to Gen'l Wagner's acceptance will now depend on the action of Messrs. Comegys anil Michner. of the «learing-hou8e committee. If (ien'l Wagner does accept he will, by heroic measures, be able to put the thinir on its feet. ** I trust you will give this an early reply, and state what my chances will be for receiving the money avi8 IS luesident of the IVtroleum Exchange, a rich and capable man, and would make a success of the bank, 1 think, should he take it FromAvhat I have learned to-night I feel quite satisfied that if all other plans r li ;, ^^ '^' ^'^^^ ^^*' ''^'**'®' ^® ^^ ]K)8tmartterhere and a strong friend ot the iostmaster-lieneral, andcouhl at once surround himself with a strono- board and w<»uld have the entire confidence of the community. I will keep you i>romi)tly advised of the progress of events. Very respectfully, W. P. Drew, IT 1^ c? T Is'at. Bank Examiner. Hon. L. S. Lacky, Comptrollir of the Currency, Washington, I). C. Treasury Department, Office of Comptroller of the Ctrrexcy, /) ashnifiton, I). C, April 14, ISOl. Sir: I am in receipt of your favor of the 13th instant, in whicli vou inform me that Mr. \\ agner has dechned the presidency of the Keystone National liank and that Mr. Pield is now considering whether or not he will accept it. I also note what you say in reference to Mr. Davis and Mr. Hrumficld I desire to impress upon you very l-onibly. and, through you, those interested, that it will be lUipracticable lor me to delay appointment of a receiver very much longer, and that whatever is done must be decided upon without further delay. ' Very respectfully, E. S. Lacey, Mr. W. P. Drew, Comptroller. JfJjcaminer in charge Keystone National Bank, Philadelphia, Pa. INVESTIGATION OF NATIONAL BANKS. 177 Philadelphia, April Jo, ISOl. Sii:: Mr. Davis and Mr. Field had a coufer(\nce this afternoon, and are to meet the directors and leading stockholders at 10 a. m. to-morrow. Mr. Field has consented to take the vicir-iuesidency under Mr. Davis as president, and to give his attention towards obtaining a board of directors whose names shall at once give entire confi- dence. Mr. Wanamaker will, it is thought, take a place in the board to oblige his friend Mr. Fiehl. I will inform you promptly of results. Your letter of the 14th inst. was received to-day and its injunctions laid before those interested. It had the effect of expeditinrg matters. Ver\ respectfully, &c., W. P. Drew, Nat. Bank Examiner. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C. [Telegraui.] Hon. L. S. Lacey, Comptroller of Currency, Washington, D. C: Three hundred and three thousand. It looks like Davis, with strong support. W. P. Drew. [Telegram.] Hon. E. S. Lacey, 1523 Conn. Ave.: April 16, 1891. I am carefully investigating aft'airs of the bank, with the intention of taking same if found satisfactory, and ask your patience. John S. Davis. [Telegram.] xr ,., o T April 16, 1891. Hon. E. S. Lacey, ' Comptroller of Currency, Washington, D. C: Davis likely to accept if certain conditions under consideration are complied with W. P. Drew. Hon. E. S. LACEV, Vm...^^,.^m^, April 16, mi. Comptroller of the Currency, Washington, D. C. : Sir: This morning Mr. Field suqmsed us all bv informing us that he could not take a directorship in the Keystone National Bank, owing to objections by his Imsiness partners, on the ground that he could not assume any new duties without seriously atiecting their business. This action comes as a damper on the euthusiasra of those who had built upon his ardent and positive assurances of last evening that he would take the vice-presidency. A note was received from him later in the dav, explain in«-- the reason above referred to, and extending his cordial and warm support '^ Although disappointed, Mr. Davis did not let Mr. Field's decision affect his pur- pose, and he has been engaged at the bank most of the day going over carefully and m detail its accounts and general condition. He telegraphed vou afterwards, to show that he was earnestly coutemplatiiig taking the work as its president. You will remember that in the formal settlement with the Lucas estate in Januarv last a re- ceipt was given by the bank in full of all claims against the estate, on the' latter iSI?^^ **^^^ *,^ ^^"^ ^'^^^ *^® building for $225,000 and the other properties for IV?n'2S' equahng $586,000 in all. Other obligations held by the bank for some ^110,000, were, by the terms of the receipt, to be returned to the estate without pav- ment of the same. This amount, justly due the bank, Mr. Davis insists shall be recognized by the estate and renewed or paid, ami a committee took that matter in cnarge this afternoon with the purpose of obtaining such recognition. I think the i'«'lial)ilitati<»n of the bank turns on this point, and I believe it will be satisfactorily 3702 12 1 .r 1 '-fi *■ 178 INVESTIGATION OF NATIONAL BANKS. settled iu favor of the claim. I hope aud expect that it will be arranged to-moi row, and will promptly notify yon. Mr. Davis is a v«^ry suitable man for president of the bank, beinj; rich and ron- nected by family aud business interests with other wealthy men, and should be U\ko the bank, he will, I think, easily and speedily place it in the forefront of our best banks here. The necessary funds will be at once iu hand, aud strong men will go upon the board. Very respectfully, W. F. Drew, JS'at. Hank Examiner, [Telegiaiu-l Hou. E. S. Lacey, Comptroller of Currency, Washington, JJ, C: Matter referred to iu my letter is uuder adjustment. April 17, 1891. Prospects uncbanged. W. P. Drew . I Philadelphia, April 17, tSOl. Hou. E. S. Lacey, Comptroller' of the Currency, WaHhinglon, 1). C, : Sir: Mr. Davis has been absent from the city to-day, but the jnoposition to recog- nize as a just claim the $110,000 not embraced in the receipt by the bank reft^red to in my letter of yesterday has been consideri'd by those reprei*enting the Lucas estate to-day, and a conference on the subject will be held to-morrow with Mr. DavivS. The indications now are that it will be so recognized, and unless Mr. Davis changes his mind, which is not likely, he will at once proceed to close uegotiations. I will telegraph you any result. As showing Mr. Field's reasons for withdrawal, I enclose letter from him. Very respectfully, W. P. Drew, Nat, Bank Examiner. Post-Office, Philadelphia, Pa., Office of the Postmaster, April 17, 18U1. Dear Sir: Referring to Keystone National Bank, permit me to say that I consider it one of the best locations in the city, and believe that under good management it <'annot be otherwise than a success. From what I liave learned iu regard to its present condition and its future prospects, were it not that my time is not only occu- pied but that I am really under pressure, I would be very glad indeetl to take hold of the institution with Mr. Davis and others, confidently believing that there is a bright future before it. I can only express my deep regret that my way is not clear to join in the present effort now being made for its reorganization. Yours very truly, John Field. W. P. Drew, esq., Philadelphia, Pa, [Tolegraui.] April 18, 1891. Hon. E. S. Lacey, Comptroller of Currency, Washington, D. C: Conference on Monday between respective attorneys as to estate recognizing fur- ther liability looks favorable. W. P. Drew. INVESTIGATION OF NATIONAL BANKS. 179 PiiiLADFLPJiiA, April 18, 1801. Sir : Mr. Davis, who has been detained to-day at court at Way's Landing, New Jer- sey, will be at the bank on Monday, and I expect confidently tliat the question of the rehabilitation of the bank will bo decided practically on that day. I will inform you promptly of the result. Verv respectfullv, W. P. Drew, A a/. Bank Examiner. Hou. E. S. Lacey, Comptroller of the Currency, WaHhingtonf D. C, [Telegram.] Hon. E. S. Lacey, Comptroller of Currency, Washington, 1). C: Davis in doubt. Negotiations still i>ending. April 20, 1891. W. P. Drew Philadelphia, April 20, 1891. Sir: Mr. Davis, who has been absent attending c f 180 INVESTIGATION OF NA ITONAL BANKS. J This plan is not intrudrd to Interfere with the payment for new hfock of the ]»le(l«,^es already named, in amount some three hundreKLi>niA, April 2J, 1891. Sir: I enclose copy of letter received this day from Mr. Davis, which M'ill explain itself, and which promises to extricate the Keystone National Bank from its ditticnl- ties. At a meeting of ItW) depositors held this afternoon the letter was read, and its pro- investigatiok of national banks. 181 visions, so far as pertaining to them, fnlly concurred in. linmediate stei)s will bo taken to secure fulfillment of the other stipulations. It will, of course, take several days to perfect all arrangements, but I think the main diflficnlties are on the eve of removal. I will report progress promptly. Very respectfully, W. P. Drew, Nat. Bank Examiner. Hon. E. S. Lacey, Comptroller of the Currency, Washington^ D, C. Keystone National Bank, 1326 AND 1328 Chestnut Street, Opposite U. S. Mint, Philadelphia, April 22nd, 189-. My Dear Sir: I have been requested by various parties having an interest in the Keystone Bank, which is now in your hands, to accept the position as president of the same. If you will relinquish the bank to new management upon the evidence that $300,000.00 or $400,000.00 of valid new subscribtions are made to stock to main- tain its present capital, and the arrangement with Lucas estate as suggested by Mr. Marsh and known to yourself, I would accept the same, if the present stock-holders and depositors would accept me, and permit their accounts to remain in the bank, and further agree to draw upon the present balance, one twelfth i>art or less for each month following this date. I should desire to choose my own board, as well as my employees, subject to their own suggestions. I should expect the hearty support of all who are interested at present in the Keystone Bank and would do all that an earnest and careful endeavor would accomplish on my part. Respectfully yours, John C. Davis. Mr. W. P. Drew, U. S. BanJ: Examiner, Treasury Department, Office of the Comptroller of the Currency, Washington, D. C, April 22, 1891. Sir : In reply to your confidential communication of recent date, you are resi^ect- fully informed that unless your case involves more than a delivery to you of the proceeds of collection items belonging to you, and upon which the Keystone National Bank has no lien, instructions already given to the examiner will govern, and delivery of moneys collected by the exjiminer tor your account will be proper. The Comp- troller is verbally ad\ ised, however, that you are responsible for certain discounts about to mature, and, if there is no objection, it might be well to ]>ermit proceeds of eollections received since suspension to be applied to the indebtedness when it beconu's due. It is to be hoped that some ])roper action will be taken without further delay to l)hice the bank upon an active footing, in which ease your present difficulty would be removed, and no special instructions in your behalf will be necessary. You are at liberty to show this croposition8 of the probable new president of the bank, but she has not as yet formally rendered lu^r decision. It is likely to be given at any time. Meanwhile matters are as usual at the bank. Mr. Davis is busily engaged there daily and evidently is of the opinion that he will have charge of it before long. Mr. McFadden, who has been absent, returned to-day, and is active in aiding the bank towards recovery. If all is right I think he will continue in the bank, probably the only one of its fonner management. Very respectfullj'^, W. P. Drew, Nafl Bank Examiner. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C, [Telegram.] Philadelphia, May 1, 1891. Hon. Charles Foster, Secretary, Washington, D. C: Since the credit of our whole national-banking system involved in the matter, we the citizens' committee of fifty therefore urge that the most earnest efforts should be made to discover and punish the perpetrators of the Keystone National Bank defal- cation, and that the Federal authorities use every means in the power of the Goveru- nient to secure the apprehension of Gideon \V. Marsh, the defaulting and abscond- ing president of Keystone National Bank. Joseph DkF. Junkin, Chuirmun Executive Committee, Citizens^ Committee of Fifty, [Telegram.] May 2, 1891. Hon. E. S. Lacey, Comptroller, Washington, D. C: Attorneys report matters likely to be settled satisfactorily on Monday, and request delay until then. Will write. W. P. Drew. II I ., 186 Investigation of national banks. INVESTIGATION OF NATIONAL BANKS. 187 '! ' 1 i rjl 1 ll 1 *t i n 11, 1 '41 } d! ir ^ 'Sf ,f !1 i -1 PinLAf>ELPHiA, Ma if 2, 1891. Sir: Your letter of tlie Ist instant was received this nioriiing, and at once trans- mitted to the attorneys of tlie bank and of the Lncas estate. I inclose herewith letter from Mr. Kead, atty. for the bank, bearing upon the case. I telegraphed its purport to you this afternoon. I leani that the stipulation which the estate makes is that the seashore pro]»erty shall be taken by the bank at $500,000 (it was settled for at $382,000). If this call be agreed to by the bank, then the estate will recognize its liability for any and all debts of Mr. Lucas to the bank, which, so far as the books of the bank show, amounts to nearly $1,000,000. 8ome of the stockholders, especially Mr. McFadden, whom I have seen to-night, are opposed to allowing $500,000 for the seashore property, claiming that only $362,000 should be allowed therefor, which is the sum named in the transfer of the property to the bank as stated above. Kepresentatives of all parties in interest are to meet at the bank on Monday, the 4th iust., when final action will be taken, of which I will promptly notify you. I shall endeavor to have present at the meeting as large a representation of the stock as can be obtained. Very respectfully, W. P. Drew, Nat, Bank Examiner. Hon. E. S. Lacy, Comptroller of the Currency, Washingtonf D. C: .^ J^. 8. — It is impossible to state with any degree of accuracy what the Lucas estate is worth, but from the best reports I have been able to obtain, it is my opinion that there ought to be from $200,000 to $250,000 more within reach. fTelogr.ini.l Office of United States Attorney, Eastern District of Pennsylvania, PhUadelphia, May 2, 1890. Dear Sir: I met Mr. Huey and Mrs. Lncas by appointment this morning at ten. The situation was discussed at length, anrt liually 1 retired with the understanding that I was to have an answer at one p. m. A messenger has just com© from Mr. Huey, who states that he is now in consultation with Mrs. Lucas and others, and that he, Mr. Huey, authorized me to say to you that he tliinks the matter will bo favorably closed on Monday. Please notify the Comptroller of the Currency, so that the matter maybe left open until then. Yours truly, JoiiN R. Read. Mr. W. P. Drew, Bank Examiner, Philadelphia, May S, 1891. Sir: I am to meet at 10 o'clock to-morrow the representatives of the Lucas estate with their final proposition as to settlement of the claim of the bank against the estate. If undoubted security can be given by them for $200,000 at least in addition to the values already turned over to the bank, and if $200, (XK) of the old capital can be jdaced in escrow by the shareholders, I shall feel that the new capital can be safely paid in and the bank reopened for business. After a prolonged consultation with U. S. Dist. Atty. Read to-night, we have agreed that the above course is advisable. If, on the contrary, the estate should be unwilling or unable to furnish the amount stated, Mr. Read advises that an affidavit be made by me at once lof>king to the ar- rest of Mr. Marsh and Mr. Lawrence, a former clerk. 1 will report result promptly to you. Very respectfully, W. P. Drew, Nat. Bank Examiner, Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C, May 4, 1891. H«m. E. S. Lacey, , Comptroller of Currency, Washingfon, J). C. Please defer action Keystone Bank until I see you at your house tably able to nrocure, for a hearing on the 8th inst. • xv, • ^ The dist atty. desires the originals of the reports to the Com].troller tor the last three years, for use in this hearing, and 1 have asked my assistant, Mr. Jones to visit your office to-morrow to procure these reports if practicable. Please let him have them if not inconsistent to do so. . , , i It will be necessary to compare them with the books ot the bank. I understand that Mr. Bardsley, who started this afternoon to see you at \\ ashing- ton this evening, was recalled by a telegram after his de]>arture because ot the arrest. Very respectfully, ^^ ^, ^^^^^, Sat. Bank Examiner. Hon. E. S. Lacey, Comptroller of the Currency, nashmgion, J>. C. Philadelphia, May 4, 1891. Sir: Permit me to introduce my assistant, Mr. H. C. Jones, who calls on you for the purpose of procpring the originals of reports of condition of the Keystone Na- tional Bank for use at the hearing on Friday next of the officials who were arrested to-day, as stated in ray telegram and letter. Please give him such fiicilities as may be necessary and oblige, Very truly your,, W.P.Drew, Examiner. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C. ti fW il ■ I 'J ^\ ■J 188 INVESTIGATION OF NATIONAT. BANKS. INVESTIGATION OF NATIONAF. BANKS. 189 ■( '. Colonnade PIotkl, Philadilphia, Pa., May 4, isyt. ./i^^^l^^' accord with my despatch to you of this morning, I left Philadelphia at 4:41 this p m., and had requested Mr. Marsh to -o with m* that you mi-ht be advised of details Mr Marsh did not meet me at th7, depot and I left withZt him f^r i/^'T!?-** Baltimore I was handed a despatch informing me of the arrest ot Mr. Marsh this pm. and asking my return home at once. I took return train at Jialtimore and met Mr. Marsh on my arrival here. I have no knowledge of why the arrest was made to-day, and fear the effect will be bad for the bank. The stockholders have called a mectii.g, I understand, at wl^c It 18 proposed to subscribe an equal to the stock that is not to be surrendered 4!'?00 OOn and the stock $800 000 that is to be surrendered is about ready trbeLan^^iS' J IT 'A ? *''*'^' with the Lucas estate, but Mr. Davis sai LookiTig Jit it from all points I do indeed think it will be wisd(»m to wait and ner- mit me to give you the latest ditails. ^ My address is City Hall, Phila. With great respect, I am, very truly, &c., Mr. Lacey. , . -^^"^ Bardslev. Treasury Department, Office of the Comptroller of the Currency Mr. John Bardsley, Washington, May 5, mi. City Hall, Philadelphia, Pa.: Letter fourth received. I will be at home this ovenin"- E. S. Lacey, Comptroller. Treasury Department, Office of Comptroller of the Currency . , ^^ « ^ Washington, n. r., 5, sl '91. Received of E S- Lacey, Comptroller of Currency, 1(5 reiM>its of condition of Key- A^tV^ohn R Read ' ' *"* ^"^^ ^^' ^^^^' inclusi've), for use of IT. S. Dil Harry C. Jones, Asst. W. r. I)rm\ Nat. Bk. Ex. [Telegram.] Hon. E. S. Lacey, ^^^^ ^' 1^^^- Comptroller of Currency Washington, D. C: msTZufwithul '^^P^'^*^^' ^"^ Htockholders Keystone Bank will call on you John Bardsley, J. O. Bowman, and others. On May 5, 1 wrote Mr. Drew a letter in whicli the suggestion of a receiver was made. Q. Who was that! — A. Il^elson F. Evans. Q. Does the letter state how he came to be mentioned ? — A. It does not. Q. Who did it come from ? — A. Mr. l!^ettIeton, Assistant Secretary of the Treasury. Q. Evans was an oliicer of some bank? — A. He was a director of the Spring Garden National Bank, which failed a few days later. Treasury Departaient, Office of the Comptroller of the Currency, Washington, D. C, May 5, 1891. Dear Sir: Mr. Nelson F. Evans, president of the Spring Garden Insurance Com- pany, has been recommended as a proper person for api)ointment as receiver of the Keystone National Bank. Will you investigate the records of the association and inform me by early mail as to whether he is a creditor, stockholder, or debtor of said bank, and further, as to whether any reasons are known to you, of any kind whatever, which would render it improper or inexpedient to issue a commission to him. Very repectfuUy, E. S. Lacey, Comptroller. Mr. W. P. Drew, Examiner in charge, Keystone National Bank, Philadelphia, Pa. Philadelphia, May 6, 1891. Sir: Your letter of the Tith instant, referring to Mr. Nelson F. Evans in connection with the receivership of the Keystone National Bank, is received. Mr. Evans is one of our most respected citizens and a very enterprising, energetic business man. He is an ex-president of the *^ Young Men's Christian Association" here, is president of ''The Spring Garden Insurance Co.," a successful institution, and a leading director in ''The Spring Garden National Bank." In ability, skill, knowledge of business and credits, uprightness of character and popularity, he is conspicuous. He is actively interested in several enterprises, some of which are speculative, is a pretty good borrower at the banks, and is thought at times by some to be rather too much extended. He is an iiidorser on paper now under discount at the Keystone National Bank for some $17,000, as by the appended list above. He is generally a large boiTower from the Spring Garden National Bank, as Avill be seen by reference to my last report on that bank. If the above considerations should not be regarde«l as an objection, he would make a good receiver and would actively labor, I believe, for the very best interests of all concerned. Matters at the bank are at the usual standstill. A committee are earnestly at work, with some considerable encouragement, to secure from the stockholders a fund which shall be sufficient to enable the bank to eftect voluntary liquidation. This is the result of a visit which a delegation made to you last night, and which they report was regarded with favor by you. I think that by to-morrow night it will be definitely known whether such a fund can be secured. The ''hearing" of Mr. Marsh and Mr, Lawrence will be had at 4 o'clock ]>. m., on Friday, the 8tli instant. The papers here are filled with all sorts of rumors aftecting the liberty and good name of many of the directors of the bank, but, as far as I can now see, there is not sufficient evidence to warrant the arrest of any others connected with the bank be- sides the names given above. I received today the inclosed letter from a committee of city councils, asking permission to examine into the account of the city treasurer. I have informed the writer of this reference to you. I have not seen Mr. Bardsley, and do not, of course, know what his feeling in regard to this matter may be, but I believe he will not de- sire such a visitation, and I can not see what good end can be subserved by permit- ting this inspection. Feeling here is very high just now, and a delay in this matter would, in my judgment, be best even if it would not be best to decline to grant the pennission. Very respectfully, W. P. Drew, Nat. Bank Examiner, Hon. E. S. Laoky, Co^nptroller of the Currency, Washington, D. C, 'f ■!.ll r I.'' kl if- 190 INVESTIGATION OF NATIONAL BANKS- INVESTIGATION OF NATIONAL BANKS 101 i. ' i.K«'y»iuJU', Natioual Bank. X. F. Evans.] S. p. M. Taskcr 1, IKX) due May 22 C. U. Van Guu(leu& Youn^ 1,650 June 24 C. H. Do ' 2,50() 29 C.H. S. P. M. Tasker 3, 300 July 10 C.H. 9, a^o Bradlord Hills L. Co 2, 000 May 13 C. H. " 3,000 Junel3 C.H. " 3,0(X) 20 Bank 8, 000 W. P. Drkw, Nat. Bank Examiner. Philadeli'hia, May C», 1801. Philadelphia, May 0, 1891. Sir: Since writiuj; you to-ni«;bt in regard to the name mentioned in your letter of the 5th instant, as a candidate for the receivership of the Keystone National Bank, have thouglit that, if the facts stated should be viewed by you as disqualifying that gentleman, 1 might perhaps be pardoned for suggesting a name. Mr. H. L. Warren has been visiting me here for a long time, and would, in my o))ini(m, make a capital selection. He is in successful business here, nearly 40 years old, a good accountant, and an able and accomplished man, thoroughly responsible, and could give strong business and other references. I would like to have you see him. I could, and most willingly would, render him all assistance, both personal and official. Please consider this sugge8tistautially conceded that there were about $200,000 more assets than would pay the debts, and the ])ropositiou continued to be made to provnlc tliree or four hundred thousand dollars more stock to be paid in to bring the stock up to the original amount. * * xr • Q. When you speak of debts, you do not include stock!— A. :No, sir; exclusive of stock. Early in the conversation I told them I had made up my mind to appoint a receiver, and that I should do so as soon as I could tind the right man; but even if a receiver were apiK)inted, I told them that if they could make such arrangements as would in-oMde for the payment of the depositors, I would withdraw the receixcr and per- mit the bank to go into liquidation, and that would be what they wished to accomplish. Q. Was there any discussion at that time about the liabilities ot the bank?— A. There was no discussion of the liabilities of the bank to Bardsley on account of due bills. That was not known at that time. He never did claim that until after his arrest, which oc<;urred some time later. Nobody knew that any such liability existed except Bardsley and Marsh. No such information had ever come to me, or the examiner, or anyone eLse, and I had no communication indicating that there was any such liability existing on account of due bills. Q. Was this question of the stock which had been in the possession of Mr. Wanamaker, and which was claimed to be an' overissue, discussed at that meeting?— A. If that was discussed I do not remember it. It is quite likely it was. It was a long conversation. We spent an hour or more in discussing the various phases of the matter; possibly it was mentioned, though I do not remember anything as to that. I had a great deal of talk with a great many persons. Q. I want to keep it down to that conversation. — A. i can not re- member what was said at that particular time, for the reasons indicated. Q. Was there any discussion at that time with regard to the person who should be selected as a receiver ?— A. 1 can not recall any con versa tion in reference to that. Q. Was any inquiry made by you in regard to this Mr. Evans? — A. I think not, because I had determined, as soon as 1 received the letter from Mr. Drew stating that he was a debtor of the bank, that I would not appoint him; so I do not think Evans was discussed, although he may have been. Q. Do you recall anything that occurred at that time in regard to the bank and its affairs beyond what you have stated? — A. I do not. By Mr. WiKE : Q. I would like to inquire what relation those three men bore to the bank? — A. They were not connected with the bank. This was a com mittee appointed by the depositors, consisting of seven prominent busi- ness men. Q. They were creditors?— A. They were creditors, but not stockhold- ers; I do not think any were stockholders. Q. Do you know what relation these other three men whose names i 192 INVESTIGATION OF NATION A I. BANKS. you have uot mentioned bore to the subject matter under discussion!— A. I suppose they were only interested as creditors wanting an early settlement. Under date of May 6 Mr. Drew addressed me a letter which was written the same date of the other one, in which he recommended his son-in-law for appointment as receiver. At this point I want to correct a 8Uf?gestion that I made in reply to a question of the chairman, and it is that this consultation with this committee was on May 5, and I did not receive this letter in relation to Evans being a debtor until after that date, so that J did not have that faet in my mind at that time, it was the next day that 1 got that information. By the Chairman : Q. After making that correction, can you state whether you made any inquiry of those gentlemen about Evans, or his fitness for the place of receiver?— A. if 1 did, I have forgotten it. Unusuallv, in the ap- pomtment of a receiver, i address such a letter as this to the examiner before I really consider a man, in order to ascertain whether he bears any such relation to the bank. That was done in this case. Witness then read letter and telegiam as follows: Common Colncil, Philadelphia, May 6th, '91. Dear Sir: The committee of couucils in the matter of city deposits in the Key- stone and other banks respectfully request that they hv allowed to examine the account of the city treasurer as contained among the books and papers in the Key- stone Bank. '^ '^ •' Yours, respectfully, VVm. Van Osten. „, „ , , Chaii-man of Committee. A\ . P. Drkw, Bank Examiner. (Indorsement): Respectfully referred to Hon. E. S. Lacey, Comptroller of Cur- rency, Washington, D. C, for authority. Please see my letter of this date. W. P. Drew, ^ ,, yut. Bank Examiner. Philadelphia, May 6, 1891, CUAXK, Paris & Co., Bankers, Washington, T). C, May 6, 1891. Dear Sir: Understanding that a receiver lias been or is about to be ajipointed for the Keystone National Bank of Philaectfully represent that we should not be held to be general creditors, but that the within amount, $1,990, be returned t^ us, not being part of the bank's assets on the business day of your closing. The bank is otherwise in- debted to us $13.63. We submit these facts in the full assurance that w© will receive abundant equity at your hands. Yoars, very respectfully, ,„^ ^ Crane, I'aims A Co. The Comptroller of Currency, JVashinffton, D, C, INVESTIGATION OF NATIONAL BANKS. [Personal.] 193 Washington, D. C, May 6th, 1891. Dear Mr. Lacey : I called at your residence this evening to show you the inclosed t<*lcgram which was received too late for me to see you at the Dept. The telegram is from my brother, who is the editor and principal OAvner of The Star of Phila. Mr. Smith, to whom he alludes, is the gentleman who wrote me the letter about the Key- stone Bank which 1 showed you week before last. I take the liberty of writing you thus hurriedly for the reason that I would like you to consider my name in coiincr- tion with the receivership of the Keystone Bank before deciding on an ai)point't. You will remeirtber I resigned the clerkship of the House P. O. Comme. to become the chief clerk of the Dept. of Justice under Atty. Gen'l Brewster. I remained in that position until the Kej^ublicans secured a majority in the Senate in Dec, 1883, when I was elected the chief executive clerk of that body, which position I still hold. I am also a part proprietor of the Phila. Star, and its Washington corrspdt. If you care to consider my name I can furnish you with scores of first-class endorse- ments from Phila. If you have time to peruse the new8pax)er slips in the inclosed envelope you will see that I am not unknown to the Phila. business community. I will call at the Dept. to-morrow to see you. I have the honor to be, Very truly, yours, James R. Young. Hon. Edward S. Lacey, Comptroller of the Currency. [Telegram— confidential] May 6, 1891. James R. Young, 1506 Q Street : Make immediate arrangements secure yourself receivership bank about which Smith wrote. See Lacey. Beveridge. Q. Who is "Beveridge" who signs the letter inclosed to you by Mr. James R. Young? — A. I do not know. Q. Who do you understand it to be? — A. I rather conclude that it is his brother. Q. Then it is his first rather than his last name? — A. I concluded that was the case, but I did not know who "Beveridge" was. By Mr. Gate : Q. Is this James R. Young the gentleman who is Executive Clerk of the Senate and had trouble about the executive sessions ? — A. Yes, sir. By Mr. Brosius : Q. To whom was that addressed? — A. To James R. Young. The Chairman. It was transmitted to the Comptroller with Young's letter. (To the witness.) Young speaks of having an interview and of showing you a letter from a Mr. Smith. Do you recall that interview ? — A. I can not recall any part of that interview, except I tliink he met me on the street casually; that he had received a letter from somebody, probably Smith, in whicifi Smith suggested to him that he apply for this receivership. Q. Mr. Smith\s letter was shown to you? — A. I am not sure whether it was or not. Q. Do you know who Smith was? — A. Ko, sir; I have never known who Smith was. Witness read letter and telegram as follows : Phii/a, May 7th 1891. My Dkar Friend: Remembering your kind expression of Apl. 20th, I would sug- Jicst the opportunity has occurred whcm you can remember and serve me by appointing lue receiver for the Keystone National Bank. I assume your favorable recommen- dation to the Comptroller of the Currency would fix it. 3792 13 ft V i\ MM ■■I! * ■"! II m T lr^ 1 Jk° ^1 » I 194 INVESTIGATION OF NATIONAL BANKS. If too late for the Keystone, keep mo iu mind for the next disaster. I can j^ive my ■whole time, ener^es, &c., to whatever I undertake, and have had both experience and success in unraveliujj: and settling a former bankrupt estate of over a million dollars, closing it in a twelvemonth. With renewed assurances of liigh regard, 1 remain, ever your friend, /^ „,,.,.,. ^ . L. M. WlULLDlN. (Care Whilldm, Deitz & Co., 126 Chestnut St., PhiFa.) Hon. Chas. Foster. ITelegram.J ,, _ ^ ^ May 7, 18111. Hon. E. S. Lacey, Comptroller of Currency, Waahinyton, JJ. C: Party referred to in my letter olyects to the examination at present. W. P. Drew. Treasury Department, Office of the Comptroller of the Currency, ,„ _ _ Washinyton, May 7, ISOl. ,W. P. Drew, "^ ' Examiner in charye Keyatone National Bank, rhiladelphia, Fa.: Your reply to my letter of lifth instant miscarried. Send duplicate immediately. E. S. Lackv, Comptroller. i A. New Post-Office Building, Philadelphia, May 7, JS91. Sir: Your telegram of to-day, stating that my letter to you of the (>th instant had miscarried and requesting a duplicate of the same, was received at 5 o'clock p. in. Unable to give you a duplicate, as I kept no full copy. I can only repeat the sub- stance of the letter. Mr. Nelson 1\ Evans is one of our most respected and energetic citizens, trained to business; is president of the Spring Garden Insurance Co., a successful corpora- tion, and a leading director in the Spring Garden National Bank. He was formerly president of the Young Men's Christian Association here. He is interested in several enterprises, some regarded its somewhat speculative, and is generally a pretty free borrower from the banks. He is indorser on some $17,000 paper now under discount by the Keystone National Bank. He would make an ethcient and popular receiver, and would co-o])erate faithfully and heartily in any effort looking towarELi'iiiA, Mays, 1S91. Mon. E. S. Lacey, Complrollcr of the Currency, Treasury Department, Washinyton: Mr. Evans rany, of Philadelphia, as receiver of the Keystone Bank. Thomas B. AVanamaker. Treasury Department, Office of Comptroller of the Cirrency, Washington, 1). C, Matf S, 1801. Messrs. Crane, Parhis «fc Co., Washington, D. C. : Gentlemen: Your letter of the 6th instant is receivtnl, referring; to a draft for- warded by you to the Keystone National Bank of Philadelphia on the day preceding the suspension of the bank, such draft being availed of on the following day in liquidation of the bank's liability through the clearinghouse. A receiver has not yet been appointeointment is made the receiver will be instructed to give your matter prompt attention. Very respectfully, E. S. Lacey, Comptroller. ">:} i'''! %\ I i ;J The Citizens' Trist A: Surety Co., Philadelphia, May Sth. 1891. Mr. Comptroller: The Keystone National Bank and the Si)ring Garden National Bank of this city having failed, rre8i)ect fully present the name of this Tbe Citizens' Trust and Surety company for ajipointment to a receivership. Mr. .T. F. Hillman, of the lirm of Mess. Wananiak<^r antroller, Very truly, yours, John Huggari>, President Citizens' Trust .V- Sureitf Co. General Lacey, Washinyton^ V I' -'\ 'I 106 INVESTlGATlOxN OF NATIONAL BANKS. ,, . ,, ^, , "Philadklvui A, May S, 1S91. My Deak x\lR. Lackv: Owiii«r to the unfortuiiiitc couditioii of the '^Keystom; National Hank" it \h sup- posed a. receiver will Im^ ajipoiuted by you. In that event, I desire to reeommend to you the appomtnuut of my personal friend Mr. James R. Vounlphia. I do sincerely hope you will appoint him. It will he not only a personal favor to lue, but will please our citizens I am y The party whose li- cauts— that is, in his extensive knowledge and experience in real-estate matters— and I understand a very large proportion of the assets of the Keystone National Bank are now in that form of property. Yours, very truly, XT T. c! T S. F. R. Tyler, Pt. Hon. E. S. Lacey, ' Comptroller of the Curreney. Law Offices, Rooms 545 to 550 Drkxel Building, J'h i fa (lelph ia, May 8, JS9L Dear Sir: lam advised that Mr. Evans has declined to allow his name to be con- sidered m connectum with the receivership of the Keystone Bank, and that Mr. Wm. I . liers has been suggested by a large number of the depositors and stockholders as a man who would be entirely acceptable to them. I have been waited ui)on bv a number of them this afternoon to know whether 1 would not coincide with theni in the thought of the wisdom of the choice. I said that I did most cordiallv, for I have known Mr. Tiers for a number of years as an active, intelligent businessman of present means and leisure, and that I did not know of anvhia, one who would not be interested in the aft'airs of tiie bank, and whose relatives would not be interested in them. Judj»e Gilkeson suggested the name of Mr. Yardley, and I made some inquiry of people who knew him in Congress, and they spoke highly of him. I si>oke to the Secretary of the Treasury about Mr. Yardley, and he thought well of the matter. Judge Clilkeson, Secretary Foster, and myself had a conversation about it, and it was suggested that Judge Gilkeson telegraph Mr. Yardley and have him come on. On the 8th of May Mr. Yardley came to the Department. Judge Gilkeson brought him up and introduced him to me, and we three went to Secretary Foster's room and had a consulta- tion, at which time Yardley's appointment was decided upon and his commission issued immediately. (^ You stated that you had inquired of other people about Mr. Yardley. Can you tell who else you inquired of f — A. 1 can not. Q. Can you name any i)erson other than Judge Gilkeson and the Secretary of the Treasuiy! — A. I would not at this time be able to name any person with whom I consulted other than those. Q. Did you consult with anybody in l*hiladel])hia? — A. Not unless they happened to be in the office j I do not remember about that. Q. Do you remember whether or not you did consult with anybody in Philadelidiia as to the selection of Mr. Yardley? — A. 1 do not think I did. I have no recollection of consulting with anybody in Phila- delphia. Q. Did you consult with John Wanamaker on that subject f— A. I did not. Witness read letter and telegram as follows : Tiw:a8URy Department, Office of Comptroller of the Currency, Washington, D. C, May 9, 1891. Sir: Hon. Rohort M. Yardley, of Doylestown, Pa., has this day been appointed receiver of the Keystone National i^ank of Pliiladdphia, Pa., of which yon are now in charge. A Idunk bond has been handed to Mr. Yardh^y for execntion in the penal snm of fifty thonnand dolhirs ($50,000), with at least two good and snthcient sureties, the sufficiency of th<' sureties to be ('Citified by a judge of a court of recorl, luuhr t^cd of Ihe court, other tliau a probate couil. The suieties are to (|ualify iu doiilde tlie amount of the bond. I enclose henwith the usual iustrnctions us to the receiver's duty, blank forms for his guidance, and other papers, which you will diliver. When Mr. Yardley places in your hauds the bond, duly e\eeuteginning of his receivership. Very respectfully, E. S. Lacey, Comptroller. Mr. Wm. p. Drew, National Bank Kxaminer, in charge Keystone National Banl-, Pliiladelphia, Pa. Investigation of national banks. 199 Treasury Department, Office of Comptroller of the Currency, Washington, D. C, May 9, 1891. Mr. John Huggard, (Care The Citizens Trust & Surety Co., Philadelphia, Pa.) : Dear Sir: I am in receipt of your letter of the 8th instant in regard to the re- ceivership of the Keystone National Bank, and in reply have to say that Hon. Robert M. Yardley, of Doylestown, Pa., has to-day been appointed receiver of said bank. Very respectfully, E. S. Lacey, Comptroller . V\ Treasury Department, Office of Comptroller of Ct rrency, Washington, I). C., May 9, 1891. Mr. Sidney F. Tyler, (Care The Fourtli Street National Bank, Philadelphia, Pa.) : Dear Sir: Yonr letter of the 8th instant is received, recommending tlie appoint- ment of Mr. W. T. Tiers as receiver of the Keystone National Bank. In reply, you are respectfully informed that Hon. Robert ^i. Yardley, of Doylestown, Pa., whose appointment was detennined npointed receiver of said bank. Very respectfully, E. S. Lacey, Coniptroller. Tbe letter received from Mr. Drew dated May 24, 1891, is the first in- formatioQ we had iu regard to the irregular due bills, $925,000, held by Bnrdsley. Witness then read letter and telegram as follows : Treasury Department, Office of Comptroller of Currency, Washington, I). C, May 9, 1891. Dear Sir: Your letter of the 8th instant is received, in which yon recommend the appointment of Mr. W. T. Tiers as receiver of the Keystone National Bank. In reply, you are respectfully informed that the appointment of Hon. Robert M. Yardley, of Doylestown, Pa., was detennined upon before the receipt of your letter, and has to-day been made. Very respectfully, E. S. Lacey, Comptroller. Mr. Samuel B. Huey, .'i45 Drexel Building, Philadelphia, Pa. Treasury Department, Office of Comptroller of the Currency, Washington, D. C, May 9, 1891. Sir: You ligve this day been appointed receiver of the Keystone National Bank of Philadelphia, Pa., now in charge of Mr. Wm. P. Drew, National Bank Examiner, and 1 hand you herewith a blank bond, which yon will please execute in the penal sum of fifty thousand dollars ($50,000) with at ieast two good and sufficient sureties, the sufficiency of the sureties to be certitied by a judge of a court of record, undei- seal of the court, other than a probate court. The sureties are to qualify in double the amount of the bond. Upon handing the bond, properly executed according to its terms, and certitied as above instructed, to Mr. Drew, you will receive your commission from him and be placed in charge of all the assets. A letter of instructions for your guidance is enclosed herewith, and the examiner will render you all the assistance in his power, and give you all information with respect to the affairs of the bank in his possession. You are requested to advise this office freely with respect to questions w hich may arise as to the allowance of claims, compromises, and settlements of whatever nature f i '1 200 INVESTIGATION OF NATIONAL BANKS. ^mi which may uot be fully covered in the letter of instructions, and further instructions Tviu DC jC^iven. -rifl^wn wi'i^K l*?;'*^^'^^*'^ notice of instructionH relative to your schedules of assets. hoKc made by the examiner will be m duplicate and cover every asset of the bank w..r .H > /! '''^'"■•'- <^'* fVPy J>eaiin- yonr receipt, and sijruature, will be for- Tv arded by the examiner to this office. The prejiaration of your scliedn es will bei^in %W ri ^'"" ^^1 *^J^^ '^^'^^' \"^ forwarded at the earliest practicable nu.n.cnt. i our salary will be $300 per month until further advised. Very respectfully, E. S. Lacey, Hon. Robert M. Yardley, ComptroUev. fVaahington, D, C, Philadelphia, April 10, 1891. wmf ll.!*"" ?^®*^ ^'^*''^''^ {'*''" *,^® columns of the Philadelphia Times of to-day, with reference to my official conduct in connection with the Kevstone National m«dP .n.t'ZYr'''''"^ K ""^ *^ ^^^^"i^ r^"^"' ''^•^"•^^ *h^ ««"«^« all'esations therein fit it' ^^*^ *H^ L^^^y ^^ prepared to do so at the '^hearing "on the 15th inst Should the U S. dist. attj concur with me m the propriety of such a course, I would re- rdit'i,,rt'ortLXit'ttt',^ •^•""' •""^<' "»■• *•"' -'"^'' "''""' ' "-« I will return them intact. Very respectfully, W. P. Drew, Hon. E. S. Lacey, ^''*' ^""^^ J^^aminer. Comptroller of the Currency, Washington, D. C. , K' ^-tK^^^^^ f ^^? ^^\y *""?^ lil^® *o l^ave you send me copies of the Comptroller's letters to the bank, based on these reports. v.umpi,roiiers W. P. D. I ' Philadelphl\, May 11, 1S91. sir: I receiyed, this morning, your letter notifying me of the appointment of Mr l^lt^t^ ''Tfl^^\ ^^ *^^ Keystone National Bank, with acccm.panying papers f have heard th»t he was in town to-da> , but he has not bt-en at the bank" and thme lore, I have not seen him. He will doubtless appear to-morrow Hi^faiZintment gives great satisfaction in all quarters. "«« appoiniment Matters are progressing slowly at the Spring Garden Nat. Bank, althoiu^h all are MnrnL^T*'""? ^.^^^ ^^'^ '\ ^^^t^'"'«"^' ^vhicl will be forwarded in a da v or wo Much ot my time, just now, is taken up in attention to details of the day of ZhZu- siou. still, things are in a state ot reasonable forwardness then- Jnw^fno^T''*' ''""i*^ more like a bad failun', and the talked-of chances of recovery grow steadily weaker, as I regard it. Probably a receiver will be the result May I ask whether you received my letter that the city councils, by a committee had requested through me your permission to examine* the accts. of Mr IWsle^^ the treasurer? I do not think the committee are at all anxious to haV [his pm^ ?heMeasu?e;.''' ^^ '''*''^"'" ^"^' ^^^^* *^^*^" "^*^^« ^'^^^^>' «^^ ac< ,u4!^ of Very respectfully, W. P. Drew. Hon. E. S. Lacey, ^^''*' ^^«'*^" ^•'•««»'«^''. Comptroller of the Currency, Washington, D. C. The communication, dated June 1, 1891, addressed to the Hon Ben- jamin Harrison by Joseph D. T. Junkin, is an exact copy of the one ad- dressed to Secretary Foster (dated Mav 1, 1891, by mistake) INVESTIGATION OP NATIONAL BANKS. 201 Witness read letter as follows ; Treasury Departmenj', Office of Comptroller of Currency, Washington, 1). C, May 11, 1891. Sir: As you are aware, a receiver has been appointed for the Keystone National Bank, and is instructed to immediately prepare his schedules of all the assets of the bank as they existed at date of suspension. Your schedules of these identical assets have not been received, and it is necessary that they should be promptly prepared and forwarded to this office. The changes which have occurred while you were in charge will be shown by the receiver's report, and your schedules of course will not show any estimate of actual values. The Comptroller would have requested you to have forwarded them at first, except for assurances as to the possibility of a resump- tion of business. It is now absolutely necessary that there should be no further de- lay. With respect to the Spring Garden National Bank, of which you are now in charge, you are requested to immediately commence the preparation of the required schedules and forward them to this office at the earliest practicable moment. You, of course, understand that the totals of the receiver's schedules must agree with those of yours in each case. Please advise the receiver of the Keystoue National Bank on this i>oint, and give the benefit of your advice and experience. Very respectfully, E. S. Lacey, Comptroller. Mr. Wm. p. Drew, National Bank Examiner, in charge, Spring Garden National Bank, Philadelphia, Pa. May 12, 1891. Sir : Your favor of the 11th instant came to hand to-day. I note with pleasure that the appointment of Mr. Yardley is well received in Philadelphia. I am glad to know that you will soon be able to give me a complete statement of the aftairs of the Spring Garden National Bank. As I before informed you, yonr com- munication which contained the request of the finance committee never came to hand, hence I have made no reply. Very respectfully, E. S. Lacey, Mr. W. P. BKEW, Comptroller. National Bank Examiner, Philadelphia, Pa. 4- Treasury Department, Office of Comptroller of the Currency, Washington, D. C, May 12, 1S9L Sir: I am in receipt of your favor of the 10th instant, in which voii inclose a clip- ping from the Philadelphia Times of May 10th, editoriallv criticising you in connec- tion with the failure of the Keystone National Bank. You also intimate that you desire copies of your official reports and of the Comptroller's letters to the bank for the purpose of making a defense of yonr conduct at the examination before the U. S. commission on the 15th instant. In reply, I beg leave to say that it seems to me improper to undertake a defense under such conditions, as the evidence which you propose to submit would be irrele- vant to the matter at issue, and would be subject to objection by the opposing coun- sel. You would be naturally so restricted by the laws of evidence as to make a per- sonal defense of your connection with the Keystone National Bank almost entirelv impracticable. In any event your reports to this office and the office letters in reply are of a confidential character and cannot be properly made evidence in an examf- nation of this character. Very respectfully, E. S. Lacey, »«^ -rrr -^ ^ Comptroller. Mr. W. P. Drew, National Bank Examiner, Philadelphia, Pa. M 1^1 if- 202 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 203 ,. [Telegram.] T*iiiLAi)Kr-PHiA, May 13^ 1S91. Hon. E. S. Lacey, Compr. of Currency, Wash'n. : Yardley takes charge Monday. Everything under good control. Wm. p. Drew. Here is a letter addressed to me under date of June 4, 1891, which has no signature, but which I have no doubt came from Mr. Drew. Q. Is that letter typewritten!— A. I think it is typewritten. Q. I notice one in his own hand.— A. I think this is typewritten; and this is probably why the signature was left off. ByMr. Sperry: Q. Read the gist of the charge that was made in the dispatch of wliich Mr. Drew speaks. The Chairman. The iminitation made in the paper was that Drew took upon himself the responsibility of settling over $(>00,()00 indebted- ness in the Lucas estate to the bank, and it was not reported to the Comptroller until after the settlement. Mr. TowNSEND. My recollection is that it was first disclosed on the 9th, and the first re])ort to the Comptroller was made on the 24th. The Chairman. The point of the charge is that he took time and made the settlement himself without consulting with the Comptroller! A. Perhaps it is proper that I should say that investigation not only disclosed no letters from Drew officially or unofficially, but also there was the absence of any comnumication from me to him during that period containing anything whatever in reference to it officially or un- officially. \Vitness reads letters and telegrams as follows: Phii.adelphia, May 13, 1891, Silt: As I telegraphed you this morning, Mr. Yardlev will not take possession of the Keystone Nat. Bank until Monday next, as he says he requires until then to arrange his private business. Meanwhile we are busy at that bank preparing I»roots ol the ledgers, etc., to produce at the hearing on Friday i^xt before the U S. eommissiouer. It is the purpose of Mr. Read not to confine his examination to the officers set forth in my affidavit, but to produce evideiice in general bearing upon the condition and conduct of the bank. Great interest is felt here, and the oc- casion will be one to be remembered by all the bank people as well as others. I have been somewhat hampered in my work to-dav at the Si>ring Garden Nat Bank by absence of my trusted assistant, Mr. Jones, who has broken down from se- vere prostration. I expect that he will be on duty to-morrow. The affairs at the bank are very much mixed, and the nearly 3.000 sHcouuts on the books demand a vast deal of work, and much of my time is taken up in details of the day 8 requirements, and in correspondence with banks which need inmiediatort and hope to forward it very soon. Some talk of reorganization is had, but the present outhM.k forebodes a receiver I understand that Mr. Rhawn, prest. of the Republic Bank here, would accept the position if tendered, lie has not been seen by me, but he would be in mv iudc- meut, an ideal receiver, if he would take the place. The involvements of Kennedy and livens seem to be growing, but my impressions may be premature The in- structions of your letters received to-day have been followed. Very respectfully, W. P. Drew, „ x* a T -^'"^' ^«wfc Examiner, Hon. E. S. Lacey, Comptroller of the Currency^ Washington, D, C. TiTE Spring Garden National Bank, 12th & Spring Garden Sts., rhiladdphia, May If, IS9I. Sir: Your letter of the I2th instant, in iins\v. C. Philadelphia, May 15, 1891. Sir: I had expected to be able to forward a report on the Spring Garden National Bank this evening, but the ''hearing" in the case of the officers of the Keystone National Bank, and preparations therefor, consumed so much of the day that I shall not be able to c city's OHit8 in the Keystonr National Bank and otluT hanks, lespectiully reqnest that they be alh)wed.to examine the acconnts of the city treasnrer, John Bardsley an«l all his accounts contained among the hooks and papers iu tlie Keystone National J{ank. Yours, very respectfully, Wm. Van Osten, Chairman of the Committee. Hon. Robert M. Yarducy, JRcceiverofthe Keif atone Bank. Keystone National Bank, 1326 and 1328 Chestnut Street, Opposite the U. S. Mint, Philadelphia, May SOth, 1891. Dear Sir: I beg leave to enclose herewith a letter from the Hon. Thomas M. Thompson, city contndler of Philadelphia, and would respectfully recommend that liis request be granted. Very respectfully, Robert M. Yardley, Receiver of the Keystone National Bank. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C. [Dopartmeut of city controller, City Hall. Thomas M. Thompson, city controller.] Philadelphia, May 20, 1S91. Dear Sir: This departmejit would be pleased to know the amount standing to the credit of the city treasurer of Philadelphia, upon the books of the Keystone National Bank. Will you kindly give this your immediate attention, and advise this department thereafter as soon as ])os8ible. Yours very truly, Thomas M. Thompson, City Comptroller, Robert M. Yardley, Esq., Receiver, Keystone National Bank, Philadelphia, Pa, Philadelphia, May 21, 1891. Sir: On reconviiilng of the "hearing" this afternoon at 2 o'clock it was found that Mr. Marsh had absconded. His bail ($20,000) was declared forfeited, and the proceedings were continued for several hours. It has covered testimony from the directors and clerks, myself and my assistant, Mr. Jones, and has been conducted in a very thorough manner by the U. S. dist. atty. I do not see that anything of a criminal nature has been elicited affecting others than those now under arrest. Bail was continued for Mr. Lawreme until the August term of court. Mr. Yurdley has ]»een absent to-day attending to professional ])usinefis at Doyles- town, but his chief clerk, Mr. Ryan, a partner of Mr. Yardl«>y, and who will remain with tlie latter during the receivership, has been at the bank all day. The count of the money has been concluded, and the amount, solne ^llfi.OOO, has been verified. Moreover, lists of all assets, including discounted notes, and names, etc., of depositors will he finished, and I expect a full receipt for everything liy Saturday. 1 have been at the Spring Garden Nat. Bank most of the day. Things there in progress towards a transfer of the affairs to the receiver. President and Cashier Kennedy were arrested to-day and taken before a magis- trate on a charge of receiving deposits after they knew the bank was insolvent. The. hearing was posti)oned until Saturday, and members of the C. H. connuittee and I have been subpoenaed. I received your telegram of the appointment of Gen. Fisher as receiver, and I believe the selection will give entire satisfaction. Very respectfully. W. P. Drew, Nat. Haul: /^xa miner. Hon. E. S. Lacey, Comptroller of Currency, Washington, D. C. Treasury Department, Office of Comptroller of the Currency, Washington, D. C, May 22, 1891. Sir: Your letter of the 20th inst. is received, inclosing a communication from Mr. Wm. Van Osten, chairman of the committee of the common council of Philadelphia, requesting permission to examine the accounts of the city treasurer, Mr. Bardsley, as shown by the records of the Keystone National Bank. While it is unusual to submit the records of an insolvent national bank to in8pe<-- tion, except as produced by mandate of the courts, I can see no objection under all the circumstances to an examination of Mr. Bardsh^s accounts, if such examina- tion is restricted to the single purpose and is conducted under your personal super- vision. Very respectfully, E. S. Lacey, Comptroller, Hon. Robert M. Yardley, Esq., Receiver, Keystone National Bank, Philadelphia, Pa, Treasury Department. Office of Comptroller of the Currency, Washington, D. C, May 22, 1891. Sir : Your letter of the 20th inst. is received, enclosing a communication from Hon. 'ITiomas M. .Johnson, city comptrollec of Philadelphia, requesting information as to the amount standing to the credit of the city treasurer of Philadelphia upon the books of the Keystone National Bank. 1 see no objection to your giving the information, with the statement that the balance is so much as shown by the books, errors excepted. Very respectfully, E. S. Lacey, ComiJtroll&r. Hon. Robert M. Yardley, Receiver Keystone National Bank, Philadelphia, Pa. Philadelphia, May 22, 1891. Sir: No tidings yet from Marsh, although every effort is being made to effect his capture. It is the general belief that he has fled to South America. Matters at the two suspended l)anks here are as usual. Mr. Fisher has not yet appeared. I am having all work done which will expedite the transfer. The sensation of the day has been the resignation of Mr. Bardsley as city treasurer, and an assignment in favor of his creditors. I fear very unfavorable revelations affecting his conduct, par- ticularly with the Keystone Nat. Bank. The Kennedy's of tlie Spring Garden Nat. Bank are being actively i>rosecuted by certain depositors on charges of receiving money frcmi them after they knew the bank was insolvent, and 1 have been summoned to attend an adjourned hearing to- morrow. I shall attend but shall decline, for want of authority, to produce books and papers. I called at the Third Nat. Bank to-day. It has had a very hard time lately, and has reducetl its deposits by payment from $1,500,000 to about $881,000. There is considerable uneasiness felt concerning its immediate future. I will be within reach, and will promptly notify you of results. Will you please have returned to me some letters from your office which I by mis- take enclosed in my letter to you of last evening. Very respectfully, W. P. Din-w , Nat. Bank Examiner. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C, * Letters and packages respecting the receiver for the Spring Garden Nat. Bank were rec'd to-day. m T 5' 206 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION Or NATIONAL BANKS. 207 TuEASUKY Department, Office Comptroller of the Treasury, Washington, D. ('., May ^^3, 1801. Mr. William P. Drew, Examiner in charge Spring Garden National Bank, rhiladelphia, Pa.: Sir: I am in receipt of your favor of the 2l8t instant enolosing a letter addressed to me under date of May Gtb, which letter went astray, and in which was enclosed » request Hijjfiied by Mr. WiJliani Van Ostcn, chairman of a committee of the common council of Philadelphia, askinepa im m i.xt. Office of the Comptroller of the Cli{i;ency, H'ashint/lon, Mat/ :?8, 1891. W. P. Drew, National Bank Exam,iner, 8939 Chestnut Street, Philadelphia, Pa.: Telegram received. Certified copies of condition rejjorts r<«ine8l4Ml have been mailed to your address to-day. K. M. Nixox, Acting Cmnpiroller, Treasury Department, Office of Comptroller of Currency, Washington, D. C, May 28, 1891. Sir- Your letter of the 25th instant is received, stating that the clearing-house committee holds about $247,000 of bills receivable, and $101,000 protested paper as collateral, securing $90,000 in loan certificates bearing 6 per cent interest. In reply to your inquiry with respect to interest, you are advised that, as at present advised, no interest can be collected upon the clearing-house loan as against your trust from and after the date of the suspension of the Keystone National Unnk. I In courts have held that contracts made by a national bank lapse at date ot sus]>eiision, and the courts have also held that no interest on any claim against an insolvent national bank in the hands of a receiver can be allowed, except when the assets are more than sulticient to pay the principal of all claims in full. . , ^, , As to suit on the protested notes, you can probably arrange with the clearing- house committee for a delivery of such notes, to enable you to put them in suit, the proceeixoN, Dexnity and Acting Comptroller. Hon. Robert M. Yardley, Receiver Keystone National Bank, Philadelphia, Pa. [Teiegi-ain.] Philadelphia, June 1, 1891. Hon. Benjamin Harrison, Prest. U. S., Washington, D. C: Since the credit of our whole national banking system is involved in the matter, we, the citizens' committee of fifty, therefore urge that the most earnest efforts should be made to discover and punish the perpetrators of the Keysto.ie National Bank defalcation, and that the Federal authorities use every means in the power of the Government to secure the apprehension of Gideon W. Marsh, the defaulting and absconding president of the Keystone National Bank. Joseph De F. Junki.n, Chairman Executive Committee, Citizens' Comm. of Fifty. Philadelphia, Pa., June 2, 1891. Sir : I forward this day to your oflice schedules of assets of Keystone Nat. Bank, and receipt for assets turned over by me to the receiver. very re8peotfully, ^, j. ^^^^^^^ Nat. Bank Examiner. Hon. E. S. Lacey, Comptroller of Currency, Washington, D. C. Philadelphia, .fnne 2, 1891. Sir: The interest, both public and private, in the Keystone Natiihin(fton, D. C, S p. m. TkKASIH V j )KI'AKTMKXT, Ofuck of Comptkolleu of Currexcy, Washington, D. C, June, 5, 1891. My Dear Sir: Your favor of the 2d instant came to hand by due course of mail. I note what you say in reference to the proposed resolution of Mr. Etting and also the attacks made upon yourself. I also note that you are pretty near through with your work connected with the two failed banks and will soon be ready to resume your regular duties. I have to suggest that before resuming examinations I should' like to have a conference with you and go over the matters which haye attracted so much attention durin"^ the past two or three months. You have been so fully employed as custodian of the assets of these two insolvent banks that I did not care to have you take the time to come over here, but as soon as I can get a little leisure and you are free from the banks in ques- tion, I shall be glad to arrange for you to come over for a conference. Very respectfully, E. S. Lacey, Mr. W. P. Dhkw, ■ i'omptrolh,: National Bank Examiner, S939 Chestnut St., Philadelphia, Pa, " 209 Treasury Department, Office of the Comptroller of the Currency, Washington, D. C, June 5, 1891. Sir: I am in receipt of your favor of the 4th instant in which you refer to the fact that the Lvenmg Telegram has a despatch from its Wasliington correspondent statiiiy: that your r(])ort of January 24th of the Keystone National Bank was the first intimation that the Comptroller had from you of the $600,000 deficit of the Lucas estate, and that you had made a settlement of the same, accepting for the bank prop- erty in Philadelphia and from the sea shore in that amount. I have ha(l a diligent search made since the receipt of your letter, but can find no comiininication mdicatin;;; that you had informed me previous to your report of January 24th. j i I will haye the search continued to-morrow and advise you if anvthinff is found VeVy respectfully, j b E. S. Lacey, Mr. W. P. Drew, Comptroller, National Bank Examiner, 3939 Chestnut Street, Philadelphia, Pa. rRolMTl M. Vanlloy, meivcr of ^'^vstone Natiomil Bauk.^1326 and 1328 Chestnuf, street, opposite the Philadelphia, ilf ay 39th, 1891. Sir : I enclose herewith bill of K^ad ife Petit, attorneys for the Keystone Bank for l>iofessioual services to the date of suspension. Will you kindly instruct me what is to be done in the matter. Yours, respectfully, Robert M. Yardley, Hon. E. S. Lacey, Receiver, Comptroller of the Currency. Treasury Department, Office of Comptroller of the Currency, Washington, D. C, June 5, ^1891. 1 i'>.^**Ar l^*t<^^of tlf 29th ult. is received, enclosing a statement of account ren- dered by Messrs. Read & Pettit, for professional services in behalf of the KeTStone National Bank up to the date of its suspension, and the account is returned herewith Please investigate the matter thoroughly, so that you mav be able, with a fuli knowledge of the character of the services and of the time employed, to recommend to ihe ( omj.troller what, in your opinion, the total charge should be not to e^eed such reasonable aniouut as would ordinarily be charged for similar services by attor- neys in Philadelphia o good repute. The charges appeax to be much too large. It is necessary that there shall be an understanding as to compensation of the dis- trict attorney as counsel for services rendered in behalf of your trust. Please eive this matter immediate attention and report. Whatever arrangement mav be madT it must be understood that no fees will be allowed which are not satiTfactor^to the Comptroller and the Solicitor of the Treasury. «^i'"ij' to me Very respectfully, E. S. Lacey, Hon. Robert M. Yardley, Comptroller, ^ Receiver Keystone National Bank, Philadelphia, Pa. Treasury Department, Office of the Comptroller of the Currency, ^ ex. ?rflr«^fwgr/ow, D, C, June 6, 'l891. Dear Sir: In further reply to your letter of the 4th instant, I be? leave to sav that a very careful examination of the files fails to discover ^nvcfommuni^tion rom you referring to the Lueas def-dcation in connection with the KeXTN^tW Jiank prior to your report of the 24th of January, and letter of the same re- ventin^, as was charged, innocent depositors from placing their uuuiey from that ers here and idse where. Where this wnll end, if any end there be, no one can forecast. None of our leading bankers have been upon the stand, with a few ex- ceptions, and these were examined chiefly on the point of paying interest to the city treasurer. As I desire to confer Avith some of the leading i)re8ident8 before I go to Washing- ton, I intend to do so in the forenoon of to-morrow before leaA'iug to see you. It is my belief that, generally, they do not approve of the present i)roeeedings, but the popular tide of feeling is so straper8 from me on the subject "were in yoarj^oclcet and not in the tiles. Am I right? If so, this may explain and INVESTIGATION OF NATIONAL BANKS. 211 justify my belief that I did send some fractionary word before I sent the complete report of Jan'y 26. But I shall see you shortly, and will refer to this matter then. Gen. Fisher is hard at work at the Spring Garden Nat. Bank, but the depositors are ur«'ing and beginning to find fault with him. Mr. Yardley is serene in his new quarters, and everything there seems to be going along quietly. I expect to have my list completed there to-morrow, compared and ready to for- ward to the oflSce. I have been pretty much burdened lately, and shall be glad to get relieved as soon as possible. I am. nevertheless, very anxious. Very respectfully , W. P. Drew, Nat. Bank Examiner, Hon. E. S. Lacey, Coniptroller of the Currency , Washington, D. C, ■I't?. Philadelphia, June 9, 1891. Sir: I fully realize the peril in which I may stand in regard to my continuance in the place which I have so long held, but I rely on the consciousness of having done my duty well and without favor, and on the belief that, as the Comptroller of the ('urrency, you will not withdraw your confidence in me officially without being convinced, after full and impartial investigation by competent and unprejudiced authority, that I am no longer worthy to retain it. My conduct in the matter of the Keystone National Bank of this city has been such as my best judgment has ai>proved, and in it I have uniformly acted within my au- thority, and with the full concurrence of those most interested. Whether the unjust and malicious re])orts of incompetency with which the papers have been filled during these last exciting weeks and the severe insinuations which have been made during the hearing in the Bardsley matter by a committee of then city councils, have weakened the efficiency of my service time only can show. Meanwhile I am entitled to the benefit of the doubt, and I shall expect to be per- mitted before long to resume my regular work among the lianks. As I proceed in this it will readily be manifest whether my continuance shall be lasting. I have no wish to embarrass the Comptroller nor to continue permanently in a field where I can not do good service; but this question can only be settled by trial. I have sc^n a few of our leading presidents to-day, and you will, I think, hear from some of them strong words in my favor. I shall resume my visits to-morrow, and shall be much disappointed if I do not receive more expressions of confidence. I am in no sense *' canvassing" in this matter, nor would I allow anyone to do so for me. I hope soon to hear from you that you can see me on the subject so important to me. Very respectfully, W. P. Drew, Nat. Bank Examiner, Hon. E. S. Lacey, , ComptroUer of the Currency, Waslilnglon, D. C, .U I Select Council, PhiladelpJiia, June 9, 1891. Dear Sir: At a meeting of the subconnnittee of the committee on finance to consider the city deposits in the Keystone National Bank and other banks, held this day, the following resolution was adopted : Kesolved, that the receiver of the National Keystone Bank be requested to furnish the committee with the following books of the Keystone National Bank : Stock ledger, stock transfer, certificate and dividend books. Attest : W. Van Ostex, Chairman, John Ekstein, Secy of Committee, Robert M. Yardley, Esq., Receiver of the National Keystone Bank, i: 212 INVESSTIGATION OF NATIONAL BANKS. [Tek'graiii.] INVESTIGATION OF NATIONAL BANKS. 21 a Phila., Pa. (no date), 1891. Hon. E. S. Lacky, Comptroller of Cnrrfiicif, WaHh^n: Can not (onio before fonr-tliirty train to-rin^ (Janb-n Naticnial Bank. W. P. Drew. (Office stamp shows received ,Inne 9, 1801.) Treaspry Department, Office of Comi'troi.leii of the Currency, H'nshhtffton, />. C, June tO, 1801, Hon. Charles Foster, Secretary of the Treositry: Sir: I have the honor to submit herewith » statement of the facts loading up to the tinal closing of the Keystone National Bank and the appointment of a receiver therefor. The tirst information reank from the results of Mr. Lucas' enter])riseH. Then^ does not appearto beany evidencethatMr. Marsh profit<*d in the least by these irre'iiilarities. .Since the disclosure he has faithfully an«l earnestly cooperated in all ettbrts to as- sist the bank to secure property for this debt, and his intimate knowledge of all matters connected with the affair has been of great use. Beyond the directors of tbe bank, the seven members of the C. H. committee, the counsel on either side, and myself, no one has any knowledge or siispiiion, so far as I can say, that the b:ink is in any troiiide, and it iji earnestly hoped thai no j»u))li«ity be given to the atVair until the bank shall be rehabiliated, or all ertorts to that end found to j>rove futile. I enclose a sort of abstract, which will show the condition of the bank yesterday morning, the 24th instant. 1 shall visit Washington on Tuesday next, the 27th instant, to attend a college reuuicm, and will call up«ni you at your oifice on that day. Should you wish to telegraph me to-morrow, please send to ''Keystone National Bank." Any letter may be sent to me at my house, 3939 Chestnut St. Very respectfully, W. P. Drew, Nat. Bank Examiner. P. S. — In a few days I shall be able to forward to you a full rei)ort of the condi- tion of the bank. Accompanying this letter was a preliminary statement of the resources and liabil- ities of the association, which, after considering all probable losses, as stated by the examiner, left the capital stock of $500,(K)0 intact, and, in addition thereto, a net surplus of $55,819.20. It will be noticed that the bank examiner, in the communi«'ation above quoted, states that an indebtedness of the Lucas estate had been theretofore concealed, anmunting to $6(X),000, and that the amount thereof had been verified by the exam- inarttm 8ubs«M|uently made by the bank examiner. It is also to be observed that, so far as the letter shows, this confession was made by President Marsh on the 9th of .January, of his own motion, and that he was said to have been at first ignorantly led into the irregular transactions by the late President Lucas, whose ])rotege he was and to whom he was under very great obligations, and that Mr. Lucas had on his stracted. It is also to be observed that, in Mr. Drew's opinion, and jiresumably upon con- sultation with the gentlemen named, and u])on their advice, it was important that no publicity be given to the affair until the bank should be fully rehabilitated. Upon receipt of this report the Com])troller was ccmfronted Avith a grave responsi- bility. The entire country had but recently passed through a crisis, caused by a severe monetary stringency, which made absolutely necessary the issuing of clear- ing-house certificates in three of the great seaboard cities. The uneasiness caused by this situation had been greatly aggravated in Philadelphia by reason of the fail- ure of several large private and State banking houses, and by the run which had been made upon the Keystone National Bank in December, under the effects of which it was still suffering. For these reasons the situation was one reciuiring the most considerate and careful treatment, and anything tending to shake returning confidence in financial institu- tions was to be studiously avoided. A renewal of the run upon the Keystone National Bank might have involved other banking institutions and produced widespread ilisaster. It was also true that the Keystone National Bank had passed through a severe crisis in December and had been able to weather the storm with $600,000 less assets than it had when this report reached the Comptroller. It is evident that the Comptroller could not at this time lawfully i»ave closed the bank, nor could he have even levied an assessment to make good an impairment of <'apital, as none existed, according to this report. The danger then was for a time l»ast and the Comptroller decided to await the arival of Mr. Drew on the 27th of January, the day following the receipt of this communication, when a full considera- tion of the situation in Philadelphia was entered upon and exhaustively discussed. It is well to remember in this connection that Mr. W. P. Drew was the senior ex- aminer in point of service, that he had been appointed in 1872 by Comptroller Knox, and had been continued in otfice by Comptroller Cannon and Comptroller Trenholm, although he was not in harmony politically with the latter, and that when the pres- I ^i 1 -I: \ I ■■ I \ m^A 214 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 215 out Comptroller cntenMl upon the diitios of his otiire no in:m stood higher in point r»f ability, integrity, and skill tluin Mr. J>r»;w. It is also to be remembered that the commnuication of Mr. Drew set forth the fact that he hud been in consultation with the directors of the bank, seven members of the clearing-house committee, and the United States attorney, and that he had the benetit of their knowledge of the situation and their acquaintance with the bank, its assets, and its ofKcers. It was represented to the Comptroller by Mr. Drew at this interview that, in his judgment and in the opinion of the clearing-house committee, the property con- veyed to the bank by the l^ueas estate was e(|ual in value to the indebtedness "which had been concealed, and that in any event the creditors of the bank were entirely safe. It was also re}>resented that to publi«ly sever President Marsh's connection with the bank would immeected to give especial attention to its affairs. This Avas the more feasible for the reason that Mr. Nicluds was the president of the Central Trust Company, his ottice being in the same rocun with the Keystone National Bank. Under these conditions and for these reasons the Comptroller did not insist upon the immediate resignation of I*resident Marsh, although it was distinctly understood that he was to remain there only so long as his services were absolutelv necessary in adjusting the irregularities which had grown uj* under his management, as he was, since the death of Mr. Lucas, the only person living who was conversant with the operations which resulted so disastrously to the bank. The Comptroller, therefore, did not close the bank at this time for the reason that he had no hiwftil authority to do so upon the facts submitted, and for the further rea- son that he was advised by the bank-exnminer that the capital of the bank was uii- imi)aired, tliat the creditors were therefore fully protected, and that promi»t etibrt would be made to replenish the cash by dejiosits'of $:^)0,000 to be made by the lead- ing ilirectors and stockholdei-s, which should phice it in funds until its own assets became available. The next communication received from Mr. Drew in relation to the matter under discussion was a telegram on the 30th of January, which reads as follows: '^Stl•ong credit with clearing-house this morning. Pros}»eets encouraging." No further coinmunicatiou ])ertaining to the matter under consideration was re- ceived prior to the visi^ of the Comptrtdler to the city of I'hiladelphia, on the 12th of Februaay, as a member of tln^ Assay Commission, upon which occasion he had an interview with Mr. Drew and several of the leading directors of the bank, including Mr. McFadden, Mr. Nichols, and others of the boar«l whose names can not now b«i recalled. There seemed to be a very earnest iMiri»ose shown upon the part of these directors to immediately pay in any sum necessary to make good any deficit which the examination then still in ju-ogress should develoj), and it was agreed that t4ie reserve of the bank should be restored and maintained. The Com[»troller at this time urged upon Examiner Drew that the examination should be completed at the earliest date possible, in order that the funds of the bank might be re])lenish<;d by the payment of whatever sum was necessary to make good its impairaient of capital, if any appeared, and he parted'with the directors attend- ing the conference firmly impressed with the belief that they were able and willing to place the bank in in entirely satisfactory condition as soon as it was determined what amount was necessary for the purpose. At this time the Comptroller asked Examiner Drew for a revised statement of the condition of the bank, which he promised to complete at the earliest date practicable and forward l)y mail. It was also agreed that a full meeting of the board of directors wa« to be held and arrangements made for the prompt payment of any assessment which might become necessary upon the facts developed in the final report which was to be made. The next communication received from Mr. Drew was uiub'r dateof F«d)ruary 16th, which reads as follows: . <' Philadelphia, Pa., Feb. 16, 1891. "Hon. E. S. Lacey, " Comptroller of the Currency, Washington, D. C: ** Sir : I have arranged to lay before the board of directors of the Keystone National Bank here your conclusions with reference to an assessment on the capital stock of the bank at their meeting to-morrow. Some of the stockholders have already ex- pressed to me their willingness to pay their proportion. I propose to lay before the dire<'tois to-morrow a complete statement of the condition of the bank at that time, and to agree with them upon the amount of losses of all sorts likely to accrue, and shall reduce all values to a fair minimum. I hope to mail to you to-morrow evening my report. 1 learn that Mrs. J. C. Lucas, widow of the late president, intends to sail for Europe within a short time. As she owns 2,000 shares ($100,000) stock of the bank, action should be taken at once. " Please forward to me written instructions on which I can act. The bank was a creditor at the clearing-house this morning $49,400, and everything was quiet as usual. '*Very respectfully, "W. P. Drew, *^Nat. Bank Examiner." One day later I received from him the following communication, dated February 17th, viz : *' Keystone National Bank, " 1326 and 1328 Chestnut Street, Opposite U. S. Mint, ''Philadelphia, Feb. 17, 1891. "Hon. E. S. Lacey, '* Comptroller of the Currency, Washinyton, I). C: "Sir: I have the honor to enclose herewith a report of the condition of this bank at the close of business on the 16th inst. *' I regret that I have not had time to-night to transfer the same to the appropriate blank form. As it is, it will, 1 hope, convey all attainable information regarding the bank at present. ''It will take a very long time to fully elucidate the methods by which so large a part of the capital stock has been abstracted without disclosing the deficit in the books and acc'ts of the bank. That the whole amount of the loss has been appro- priated by the late president and his friends I am more and more convinced. I have felt that' the present president, who was cashier under Mr. Lucas, has not been involved in the depredation further than to have been the obedient instrument of a peculating and designing chief. But within a day or two I have been forced to entertain suspicions of him. I hope these suspicious are groundless, but I shall endeavi»r to satisfy myself as soou as 1 can. " I met the board of directors to-day, and laid your conclusions before them. While some are willing to pay the required assessment, others fear that such an order would create another attack on the bank, and I should not be sur})rised if a committee from the board visited you this week to further discuss the matter. "The bank settled, in debt, $10,000 this morning at the clearing-house. "Everything seems to be moving along in the accustomed quiet way. " If the enclosed report is not satisfactory, in form or otherwise, will you please return it, and I will transfer it to the proper blank form. " Very respectfully, "W. P. Drew, " Nat. Bank Examiner "P. S. — Mr. D. P. S. Nichols, of the board of directors, has couseuted to become vice-i)re8ideilt of the bank for a time at least. He is a very proper selection for that trust, and will supervise all the operations of the bank." This latter communication was accompanied by a memorandum which had been submitted to the directors of the bank on the day previous, and which disclosed an estimated impairment of $125,000, after reducing all assets to their estimated cash value. While this showed an impairment of capital it did not indicate insolvency, for the reason that the bank would still have assets amounting to $375,000 after having pro- vided for all liabilities other than the capital stock. 'M i\ m ;}J 21G INVESTIGATION OF NATIONAL BANKSi. INVESTIGATION OP NATIONAL BANKS. 217 Upon nveipt off hivse two roniinmiicHtions I .uidrossod ;i Irttcr to M date of Februarv 20tli, jt cj.py oi' whirh is jrjvon 1»p1(»w : r. Diow, iiiirlei- "Trkasuhy Depaktmknt, ^'Office of tiik Comptuoller of the Currency, *^ Washington, D. C, Februan/ 20, 7891. "My Dear Sir: I am in receipt of your two favors of the 16tb and 17tli inst. and note what you say in referente to No. 2291. " The statement vou sent is satisfactory as to the matter, but I should prefer to have bad It on one of our rereciselv the amount of deticieney necessary to be made up by assessment ujMin the capital stock. "I should be glad to see any committee of the board which may visit Washington Imt can conceive of no better way to i)ut the institution in tirst-class shape than that suggested by me. One thing is certain, that some action is imperatively necessary and the sooner it is taken the better will be the results. I shall, of course, sustain and encoiirage the board in their endeavor to put matters in a satisfaitory condition. " Very respectfully, "E. S. Lacey, ''Mr.W.P.DREW, -Comptroner. ''National Hank Exaimnrr, S9:19 Chrstunt Street, Philadelphia, Pa." The next c^mimunication referring to this matter seems to have been the final and tormal report, as develo|)ed by theexamination. which had been in luocess continu- ously since the communication of January 24. This was date0,(K)0 upon tlie Mssoital stock held by each; and the Irejisurer ol the lluited States shall withhohl the interest upon all )m»u,Is held by him in trust lor any such association, upon notification from the Comptroller of the Cur- rency, until otherwise notified l)y him. If any su,h association shall fail to pay up Its capital stock, jind .shall refuse to go into liquidation, as provided bylaw, for three months alter receiving notice from the Comptndler, a receiver may be ai>i)ointed to close up the business of the association, according to the provisions of section fifty- two hundred and thirty-four. <^ x- j The comnnuiicatious covering this assessment read as follows: , ^^ "TREAiskURY Department, 'Office of the Comptroller of the Currency, ^'IVashington, ]). T'., A/arrh 7, 189 1. "Sir: I enclose herewith notice of an assessment of $250,000, levied upon youras- sociation to make good an impairment of capital for that amount " •'Respectfully yours, "E. S. Lacey, "Mr.G.VV. Marsh, '^Comptrolltr. ''President keystone National lianh; Philadelphia, Pa." '' Treasury Department, Office of the Comptroller of the Currency, " Washington, D. C, March 7, mi. canit ./ stocv'nf T'''!' ^'' /'"' -^tisfaction of the Com]>troller of the Currency that the \XJu^I^fJ I Keystone National Hank of Philahia, I'a., has beccmie im- pan eu to HU extent that makes necessary an assessment of two hundred and fiftv rr^:^t';l!;j'r '^T^c;, ""' ^"■"■«""'"-' "•■ -'" =—'■•*.'.;; tliiiixi^KiiiJ ^^ Notice 18 hereby giN en to said association, under the provisions of section 5205 of the Revised Statutes of flu* I'nitrd States, to pay the siiid deficiency in its capital stock by assessmrnt upon its slianboldeis y/ro rata for tin* aniount of the capital stock held by each, and if such y Jaw, for three months after this notice shall have been received l)y it, a receiver will be appointed to close up the business of the association, according to the provisions of section 5234 of the Revised Statutes of the Fnited States. " In testimony whereof I have hereunto subscribed my name and caused my seal of otiice to be affixed to these i)res«'nts, at the Treasury Department, in the city of Washington and District of Columbia, this seventh day of March, A. D. 1891. * *'E. S. Lacey, "Co7nptroller of the Currency. " To the Keystone National Bank, ''Philadelphia, Pa." This assessment was levied under the positive promise made by the committee con- sisting of Messrs. Haynes, Hughey, and Marsh, who visited me personally about a day or two after the receipt of the formal report, that the amount assessed would be paid in within one week at most, and that those advancing the funds to make good the impairment of capital would wait for reimbursement until the full pro rata sums had been collected from the stockholders of the bank. Not having been advised that the amount levied to make good the impainnent had been i>aid in according to agreement, 1 addressed a letter to Mr. Drew on the 13th of March, a copy of which is here given: " Treasury Department, "Office of the Comptroller of the Currency, ''Washington, D. C, March 13, 1891. " Sir : On the 7th instant 1 made an assessment upon the Keystone National Bank of Philadelphia in the sum of $250,000, to make good an impairment of their capital stock. " Will you please to advise me what has been done in the matter, and what amount, if any, has been paid in to make good the deficiency? "(iive me all the facts touching upon the condition and prospects. " Very respectfully, "E. S. Lacey, ^' Comptroller , " Mr. W. P. Drew, 'National Bank Examiner, 3939 Chestnut Street, Philadelphia, Pa.^^ «' A III response to this communication the following letter was received from Bank Examiner Drew: "Philadelphia, March 14, 1891. " Sir : In answer to your letter of the 13th instant, I have the honor to report that your order of the 7th for an assessment of $2.50,000 to make good imi)airment of the capital stock of the Keystone National Bank of this city was duly received by the president, and, on the following wii of his physical energies. He seems well, however. *' If y«)n can uiaKe such orders upon the directors of the bank as will compel au eaiiiest and eHeclive co-operation cm their i»art, I shall be glad to enforce them, l-ilty shares ol the stock of the bank were s(dd last week for $.30 per share and since that ti some otlers to purchase the controlling interest in the bank h'lve been made by strong parlies, but as the stock is under assessment such otters can not be considered without working disclosure of the assessment. Possibly soinethiuir may come ot these ])ropositions eventually. "I will writ*- y(m often, reporting progress, when any is made, or any changes af- fecting the geiM'ial condition of the bank. ^ "The haste with which I have been obliged to write, in order to mail this letter so you can receive it on Monday, must be my excuse for the appearance of this letter " Very res]»ectfully, "W. P. Drkw, a ij T.-. CI T - " ^*'^' ^""^ Examiner, " Hon. K. S. Lacky, '' f'omptroller of the finrennf, Waghingion, 1). C." This communication reached me on the 16th, and three days later I telesfranhed Examiner Drew to close the bank. On the 17th of March I made the following reply to his letter: " Treasi KY Department, *H)FFICK OF THE COMPTROLLER OF THE C( RRENCY, ttxM Air r. ^^ ' " ^yunhinyfoH, IJ. C, March 17, 1891. " Mr. William P. Drew, ^ 7 f , . *' Examiner of XadotHtl Ban k 8, ''S939' Chestnut St., Philadelphia, Pa.: "My Dear Sir: I am in receipt of your favor of the 14th instant, which I have read very carelully. "The condition V No. 2291 is such that 1 must insist upon the prompt payment of the larger part of the amount of their assessment within the next five days/or eke I INVESTIGATION OF NATIONAL BANKS. 219 shall feel «allcd upon to take peremptory action towards bringing the matter to a determination one way or tht^ other. , ., i- "I do not feel at lil)erty to allow matters to proceed any further under the <'<»iiili- tions which now exist, and you will please so inform the parties in interest, without delay, and advise me of the reply. ,.. , , , ,, ^c r^ i/i i "I am verynnich surprised to learn that Mr. Nichols and Mr. Mel adden have resi««'ned as directors «»f the bank, as I was led to understand while I was in Phila- deliriiiathat they were to bo the principal agents in bringing the bank back again into line. I su])posed, from assurances given me by Mr. Marsh, Mr. Hughey, and Mr. naynes,*that the am(mut of the assessment would be paid into the bank within a very few days from the time they received my communication. "'The dirc'ctors of the bank should understand that their failure to qualify after their last election, or their resignation at this time, will not in any manner protect them from their responsibility as directors during the period when the losses occurred to the bank. , , . . ^ ^^ ^i n i "It seems to me that if they thoroughly understood their interests they would real- ize that promi)tness and courage would be in the end the w isest and cheapest way in which they can escape from the present dilemma. " ^*'y >«»P^<=t«"lly. .< E. s. LACF.V, " Comptroller." The bank was closed on the night of the 19th of March, and did not reopen for business. The order to close it was given, after an interview with Mr. >Iarsh at niy house, on the evening of the 19tli of March last. He at that time iulormed ine ot the fact that certificates representing about 2,500 shares of stock in the Keystone National Hank had been improperly delivered to Mr. John VVanamaker during the litetime of Mr. John C. Lucas, and that negotiations for the surrender and cancellation of the same had failed, for the reason that Mr. Wanamaker claimed to hold them as a pledge for the i»ayment of a certain sum of money due him from the estate ot John C. Lucas, and he declined to surrender the stock until the debt was paid. Upon learning these facts from Mr. Marsh I immediately determined to close the bank, but did not so inform Marsh. 1 asked him to go to the rttsidence of Mr. W ana- maker and tell him that 1 luul been informed as to the existence of this stock, and t hen to return to my house. My purpose in this was to secure time enough to inlorm th«'. Department of Justi»e, and give an opimrtunity for Mr. Marsh's arrest before he left the city, in case that course was deemed advisable. As Sixm as Mr. Marsh left my house I called at the residence of the Attorney-Geu- eral, but learned that he was not in the city. I then laid the facts before the Solic- itor-General and discussed with him the entire situation. The Solicitor-! Jeneral did not deem it necessary to arrest Mr. Marsh at that time, believing that a man who had voluntarily confessed as to the Lucas defalcation and made a jourm\y from Philadel- phia to Washingtou to inform the Comptroller as to these irregular issues of certifi- cates of stock was not likely to fiy for the puriK)se of avoiding the arrest which he had thus invited. o i •• /. it*- i On returning to my house from this conference with the Solicitor-lTeneral 1 tound Mr. Marsh awaiting me, and soon after he left for Philadeljihia. Immediately after the departure of Mr. Marsh 1 visite jiich nUh, ana a rereiver was ap|M.int«Ml on the mh of May. I Ins bank was thorolbie in thr l.antis of the examiner tifty days after beinff closed able of ^nvin^^ all necessary attention to its nUna v attairs Certamly all the assets were carefully ffuardedf maturinir paper colle. ted acconnts written np and aroper encouracreimyit to all bona tide attempts to reopen failed banks ])y the ccmtribution of new "iT^i^t"^^^ the enconragement thus afforded the Comptroller has since .lannary Ist, ast enabled iank (who were really the responsible parties) and th^examiner, were all of the opinion that Mr. Marsh had ^nade a voluntary confVssio^artO the funds abstracte*, f «*;*-^.^?^„* ^ .^^ falcation in any way; that he was g^""'"<^lv repentant; that he ^ living who could substantiate any claim for the lost funds, and that his service* were^ilmost indispensable to a complete sdlution of the difficulties which surrounded the hank. During the time he remained president the. examiner was daily at the lank, hfs assistant was acting as chief bookkeeper, one of the '"- V'd^;n ll^k HoseTv had an office in the same room, and others of the bc»ard were expected to look cU»sely after the management. Second. For delay in closing the bank. , x • „.i In regard to this matter I desire to say that the Comptroller can only act m accord- ance with law. and so far as this case is conceded he is governed by the provisions of see. 1 of the act of .June 30. 1876, which reads as follows: *' That whenever any national banking association shall be dissolved and its rights, nrivile'rcs, and franchises declared forfeited as inescribed in section hfty-two him- dreeen com- mitted. ' This brings us down to the report of February 28th, which reached the Comptroller on Monday, March 2, 1891. ^r. x. ^v, i ^ The bank was closed on the evening of the 19th of March, so that the largest possible chday of which complaint can be made by any right minded person convers- ant with the law and facts, is reduced to sixteen full days, or fourteen business days, exclusive of Sundays. The entire force of the criticism is thus narrowed down to this that the Comptroller in the conscientious exercise of the discretion imposed upon him by the statute decided that it was, ajl things considered, wisest and best to impose the lighter of the two penalties which the law provnled and give the bank fourteen days in which to pay an assessment under section 520o, rather than to immediately order it closed, with all that such a disaster means to the numerous worthy people whose funds are thus rendered of no avail. ^. . , ^ ,. Discretion is given to an executive officer as it is to a judicial officer, and he can only be censured when he fails to faithfully and conscientiously weigh the facts pre- sented and in good faith do that which, all things considered, will in his opinion, eni ■ 222 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 223 ■V i of the city treasurer from the penalties of his official bond. It would have in many ways conduced to promote the welfare of the business community in which it was ?or« Th. J^t""? '^*''"'' several men of reputedly Jar-e wealth on tie board of dired- tors. J hese had assured the Comptroller that the sum of $250,000 would be nromntlv paid m as soon as an assessment was made. This assurance was repeated to him ihould be^'appiied! ^""^ "^"^"^ "P""" *^ ^^""'^^ ^^''""^ "^" *^^ *'^*^ penalties f«nnrf wS'?i 'V'''''*? '" '^f/^reed upon would prevent a disastrous and scandalous of SeVi^ to mLl'v ^ alternative could bring nothing but serious loss and much u+lVi^'i 1'""^^* exercise of his discretion the Comptroller determined to give the stockholders one last chance and imposed an assessment of $250,000. Failine to se- cure Its payment after fourteen business days, he closed the association. ^ iJiird. *or delay in appointing a receiver. di™s\ed ahJf^y" ''^'^^''^ ^'"^^^ importance in any event, and has been pretty fully mediately b^ec'-msc^- ^'''"^^^'^^'' *^^* *^® appointment of a receiver was not madeim- the^bau^k^^^ *^^ ^"^^^ ""^ *^® Comptroller to facilitate a resumption of business by x.iVohih^TJ'^^''^^^'^^' ^«°??de"?g all tl^e business and municipal ramifications which tlie failure involved, that plenty of time be given for developments, in order to avoid the appointment of some improper and interested person. ' damlr?,? trf^r^.f "Z^*'''' ^Y''^. ""V creditor, debtor, or stockholder has been rtamaged to the extent oi one dollar by reason of said delay. In closing this branch of tlie subject, in justice to one whose name has been brought into the discussion of this failure I desire to say that Hon. So^n Wanamakei of f b!T? ?"'''*^-^' or indirectly suggested or solicited oiie day's delay in the clisin^ of the bank, nor in the appointuient of a receiver, except as appears by the t^Wram hereinafter quoted. In fact I have met him but once during the present year^and Hon Tt"LTtTpr 't '''a ^.^^' "V'*^^^^' ""' '^'"^ suggestion^and i^n the prSce of Hon A. B Nettleton, then Acting Secretary of the Treasury. This interview was the day after the Keystone Hank was closed and the failure was fully discussed. tbn/\f^'h!n" •''i'?^'*"'''! «**^*' iuformation I received from Mr. Marsh, and said that he held us a pledge certihcjites representing about 2,500 shares of stock in the Keystone Bank and that he had declined to surrender them unless the Lucas estate wo^.ld ],ay hun the aniount his due. I urged him to use his intiuence in aM of the ertorts being made to reopen the bank. He pnunised to look into the matter t e same night on his return to Philadelphia, and 1 telegraphed Mr. Drew to call u mm h.m with a statement of the assets and liabilities of tlie bank, and to Ikcilitate I failed, however, in my attempt to enlist him in the enterprise, and sH ended a iX>mmunication In'tween us on any subject connected with the bank's atiairrexcei t- ing the receipt of the following telegrams : <*"«"», ei^cepi [Telegram from P. O. Dept.] "TKKAsrRY Department, " To Hod. Edwakd 8. Lackv, • " "«''""»"'"' ^- <^v ^j". ^nd, mi. " Comptroller: " Ml-. 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 somethi,,^ more dofi nite was done to-day. I believe nothing would suffer fnnn giving them"tNZity-four hours longer, at the end of which they may put on paper something ZrlaTnuifVu, he presented to you. From what he says they are getting .-.long prettTwe 1 in secii^ ing subscriptions to the now stock. I would recommeml appointment of rece ver be deterred, say, one day, until he has an opportunity to state iomething more definite! "John Wanamaker." (Telegram from White House.] Treasury Department, "To Mr. Lacey; ''Washington, D. C, ApH 8, 1891. y Marsh telegraphs me to-day to inform you that the parties negotiating for control of bank are to give answer to him on Friday next. ^^'miroi "Wanamaker," it> I desire to make this disclaimer as comprehensive and explicit as jxissible. In concluding this statement I deem it my duty to say that, in my opinion, the several reports made by the bank examiner did not reflect the true condition ot the bank under consideration. The degree of blame, if any, which properly attaches to Mr. Drew, is yet to be ascertained. He is entitled, by reason ol his long and hitherto acceptable service, to an impartial investigation and a fair hearing. He has recently been so fully employed, by reason of the failure of the Keystone and Spriii"- Garden National banks, that it has as yet been found impracticable to give the matter the consideration its importance demands. In the meantime, however, he has been directed to suspend examinations until the facts are submitted and a conclusion reached. , , . r. ti i i x In conclusion I beg leave to say that I have endeavored to give a full and complete narrative of the action taken by this Bureau during the entire period extending from the first day that the Lucas defalcation was brought to my attention, up to and in- cluding the appointment of Receiver YarcUey. If any matter has been omitted, or any point not made clear, it will be fully explained as soon as indicated. inclosed, herewith, I have the honor to hand you copies of the three reports made by the examiner on the condit-on of the Keystone National Bank. Respectfully yours, ^ ^ ^^^^^^ Comptroller, Philadelphia, June 11, 1891. Sir: A telegram from Washington this afternoon to the newspaper headed ^'Drew Suspended," created much surprise, and has led to very unfavorable comment re- gardintr myself. I enclose extract from " The Telegraph." It was indeed a great sur- prise to me, for I had not interpreted the suggestions in a letter from you a few days since, that I should not resume my regular work until I had a cf the Government. It is expected that the Comptroller s report will supply all information in that officer's possession rerew has been sasi)end«'d from dntv i)endin«r the resnlt ot an investi<,'ation into his a,ut grows out of the open disinite between Mr. Drew and Comptroller Lacev respecting the lormers reports to the Treasury on the condition of the Keystone Bank before it was closed District Attorney Read heard ot the suspension while trying the hat trimmino's case in the I;nite,d States district court. He said he was very sorry for Mr Drew but declined to be interviewed on the sul>ject. ' * ' Receiver Yardley knew nothing about the suspension, but said that such a move was quite natural in a case where there was such a divergence of views between an othcer of the Government and his subordinate. MR. DKKW\s EXPLANAHON. Late this afternoon on being shown the despatch from Washington announcing his suspension, Bank Examiner Drew stated that some days ago the Comptroller wrote him desiring a coufereme on the situation in F'hiladeljihia, and sua-«restino^tlie propriety of his not resuming his regular work until sm^h conference was had fand that yesterday he re('eived a telegram from the Comptroller stating that he would fix an early time for the conference. He presumes that this is the foundation for the reported suspension. Mr. Drew added that he had previously requested f)f the Depai-t-ment a full investi- gation into his ofhcial conduct, feeling contident that it will result in his complete vindication. ^ [G. M. Troutman, president, Theo. Kitchen, cashr, T. L. DeBow. asst. cash'r. No 723 Canital $750,000. Surph»8, $1,200,000.1 ^-«pu^ The Central National Bank, I'hiladelphia, Jvnc 11, 1891. My Dear Sir: Notwithstanding the numerous reports affecting the ability and integrity of our bank examiner, Mr. Drew, I beg leave to sav that in my judgment there does not appear any evidence whif h would leave me to doubt the propriety of resumption of his duties, and whenever his official service call him to this bank he shall be cordially welcomed. Very truly yours, etc., G. M. Troutman, TT ,, CI T President, Hon. E. S. Lacey, Comptroller, No. 723. [G. M. Troutman, president. Theo. Kitchen, cashr. T. L. De Bow, asst. cash'r. $750,000; surplus, $1,250,000.] No. 723. Capital, The Central National Bank, Philadelphia, June 11th, 1891. Sir : As the developments in the cases of the Keystone and Spring Garden na- tional banks seem to have created misgivings in some directions as to the capacity and eyen integrity of the bank examiner, Mr. Wm. P. Drew, I desire to say that so far as our experience is concerned I regard him as the most competent, thorough, and rigid examiner this district has ever had in my experience of twenty-five years, and withal a genial, cultured gentleman. I should extremely regret to hear of any resulting disadvantages to his interests, and until the entire facts in these unfortunate conditions are developed I, for one, shall certainly defer adverse judgment. Very respectfully, Theo. Kitchen, Cash'r. . Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C. 3557. [Sidney F. Taylor, president. R. H. Rushton, cashier. $1,500,000.] The Fourth Street National Bank. Capital Philadelphia, June 11th, 1891. Sir : Without wishing to be officious, I trust you will permit me, as an individual, at least, to speak a good word for Mr. William P. Drew, the national-bank examiner of this city, who at the present time probably needs friends to stand by him more than he has ever before felt their want. I can testify that Mr. Drew's relations to the Fourth Street National Bank have always been of the most scrupulous, painstaking, and conseryative character. He has invariably reported to your Department that which he felt called for your atten- tion, and wo, at least, have always considered that his decisions, even when at the moment we supposed them to be in conflict with our own interests, were Just and in- spired by a determination to do his full duty towards your Department. Thus far 1 have been unable to see anything in the newspapers connected with the investiga- tion of the Keystone Bank matters and of the Spring Garden Bank matters which has led me to change my opinion concerning Mr. Drew's honesty of purpose. An honest man will always have a poor chance of detecting fraud where a curpose of deceiving him, and so unscrupu- lous, far-reaching, and powerful a combination of rascals lias rarely come to my notice as that connected with the two banks which are now before the public for investigation. I shall be more than ])lcased individually to see you delay taking summary action in Mr. Drew's case until you are yourself assured of his l>eing the fool or villain which the creditors of the above banks are now naturally disposed to regard him as being. In writing you thus at length I feel that I am doing no more than justice to an honest man and a gentleman whose reputation for fidelity has heretofore been nnimpeached in this community. Yours, very truly, S. F. Tyler. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C, 4 ' Hi itf ■i • £ .'■' I f 1m -Mk 't 1 m I * 1'^ l\i June 11, 1891. Mt Dear Sir: For the past fourteen years Mr. Drew has been making examina- tions of the Pirst Nat. Bank, of which, as you are aware, I am the eashier. During all these years Mr. Drew has been careful and conseienti«uis in his work, and snite of the adyerse criticism arising from the failure of the Keystone and Si)rin" (/arden banks, 1 am satisfied of his integrity and ability, and sincerely hope he will cs necessary. You will inform* Hon. Edwin S. Stuart', mayor of Philadelphia, and Hon. John R. Read, U. S. district attorney, of your having received this communication. Very resi)ectfully, E. S. LacIcy, ^ », ,, Comptroller. Hon. R. M. Yardley, Beceivei' Keystone National Bank, Philadelphia, Pa, [Telegram.] Hon. E. S. Lacey: Jones's testimony without my authority or knowledge. Phila., Pa., June 13, 189 1. W, P. Drew. INVESTIGATION OF NATIONAL BANKS. 227 Philadelphia, June IS, 1891. Sir: As I telegraph you the evidence of my assistant, Mr. Jones, before the coun- cil's committee was without my authority or my knowledge. He could have in- tended to give only his impression, for I have had no talk with him on the points referred to. I have endeavored to correct the mistaken impression in the paper of to-morrow. All through this most unpleasant atfair I have shrunk from no responsibility, and believe that events will prove the judiciousness of the course pursued by the Gov- ernment in every important detail however much I must regret that any hiatus should ai»pear to have existed in the course of information comnmnicated, and notwith- standing the unmerited reproach that has been bestowed on me by certain papers and others, I am persuaded that my conduct will stand the strict test, and ultimately be commended by the candid and intelligent. For the first time for three months, I have, within the last ten days, met many of the leading men of our bank here, and have been received by expressions of welcome and confidence which have comforted me indeed. The committee having run out Mr. Wanamaker's clue most unsuccessfully, it is not so clear now what other they will address themselves to, but I have had private assurances from individual members that the course of the Government in regard to that bank is not condemned universally. Of course I am most anxious to be delivered from this body of death, and hojie you will be able very soon to have the conference suggested in your letter of .5th inst. With the exception of lists of notes, etc., which the receiver desires to have pre- pared with unaccustomed detail, I am practically through with the Spring Garden IJank. The clearing-house committee will, at their meeting cm Tuesday next, prob- ably act on my request for an examination into the falsificatioA of acct. ancl bal- ances of the l)ook8 of the Keystone Nat. Bank at the time of my examinations of that bank, with a view of ascertaining whether there was any censurable negligency on uiy part in failinjj to discover the irregularities, and Mr. Philler, prest. of the Ist Nat. Bank, has kindly consented to make the inspection. Besides being one of the leading presidents of our national banks, as you know, he is likewise a trained accountant and bookkeeper. I have every confidence in his candor and ability. Very respectfully, W. P. Drew, Nat. Bank Examiner. Hon. E. S. Lacey, Comptroller of the Currency, Washinqton, D. C. Treasury Department, Office Of Comptroller of the Cirrency, Washington, I). C, June 13, 1891, Sir: You will find enclosed herewith my checks Nos. 2312 and 2313, on the Treas- urer of the United States, for $100 and $439.32 respectively, drawn to the order of W. P. Drew. Please hand these checks to Mr. Drew, and state that the Comptroller, after due consideration, does not feel justified in allowing the charge for subsistence as the ex- aminer during the period of service was at home. The bill, receipted by Mr. Drew, is enclosed herewith, to be returned to him, and you will please take a proper receii)t for the amount covered by the enclosed checks. Very respectfully, E. S. Lacey, Comptroller, Hon. Robert M. Yardley, Receiver Keystone National Bank, Philadelphia, Pa. [Telegram.] Treasury Department, Office of the Comptroller of the Currency, • Washington, June 13, 1891, Hon. Robert M. Yardley, Receiver Keystone National Bank, Philadelphia, Pa.: Withhold delivei-y of checks in letter to-day until further advised. E, S. Lacey. Comptrollei\ •1 '^i '¥'i ^ 228 INVESTIGATION OF NATIONAL BANKS. [James V. Watsou, Preaideut. E. H. Webb, Cnsbicr.] Consolidation National Bank, PItifadelphia, 6, IS, 1891. Dkau Sir: Such severe strictures have been passed by the public press upon Mr. William P. Drew, who has been for many years a trusted bank examiner in this city, in regard to his examinations of the suspended Keystone and Spring Garden Nat. Banks, that feel willing to ask for him a fair and candid hearing before coudomna- tiou. Very truly, James V. Watson, Presdt. Hon. E. S. Lacey, Comptroller of the Currency. Office of the United States District Attorney, Eastern District of Pennsylvania, PhUadelpMay June ISth, 1891. Dear Sir: I am in receipt of a letter from the Department of Justice, dated June 9, 1891, enclosing a cojjy of the letter of the President of the tjnited States to the honorable Edwin S. Stuart, mayor of this city, relative to the request that you per- mit the committee of councils, now investigating the actions of the late city treas urer with the Keystone Bank, to examine and inspect all of the books, documents, and records of the said bank. In the letter of the At torney-( Jeneral to me it is suggested that under my advice you permit an examination by proper representatives of the creditors of the bank into all matters and account where frauds or irregularitir'S are charged, with such reservations of confidence as the interest of the creditors of the bank or the interest of public justice make necessary. As stated by the Attorney-General, the puri>ose is that the representatives of the creditors be permitted to examine whatever will throw light upon the matters prop- erly the subject of their investigation. At the same time the examination should Dot be regarded as a license to explore and expose matters disconnected with the alleged frauds and irregularities to the injury of persons in any way connected with those matters. Subject to the limitations suggested by the President and the Attorney-General, I see no reason why the committee <»f councils or their experts should make such an examination as is suggested by the l)ei)artment of Justice. Respectfully, yours, John R. Read, U. S. Attorney. Hon. Robert M. Yakdi.kv, Receiver of the Kcyaioue Xalinunl liauTc., Q. As the result of the investigation there was no oommniiication found from Drew to you, or from you to Drew, in relation to that matter, between the 1st and the 24th of January?^ — A. Between the 9th an(l the 24th — I mi<>iit say between the 1st and the 24th — there was no let- ter from him to me oflicially or privately, and none from me to him oth- cially or privately, durin«»- tlie i)eriod referred to. Later on Drew wrote me, as you will see, tliat he is unable to find any letter from me or any communication or telegram in relation to the matter. ByMr. Sperry: Q. You do not mean that he did not s€»ttle according to any instruc- tions from the office? — A. He had no instructions from the office, and he acknowledges that he had none. Q. Had he settled before he reported ? — A. He liad settled before he rei)orted. I call attention to the fact that, in the first place, there is the phraseology of the letter; in the second place, the fact that no letter of any kind was fcmnd in my files; thirdly, that he had no copy of any let- ter or telegram which he sent to me during that tnne; fourthly, that he had no letter or telegram from me during that time; which all seems to corroborate my theory that I never received any information from him as to that matter prior to the 24th of January. \ INVESTIGATION OF NATIONAL BANKS. 229 By Mr. Wike : Q. The promptness with which he seems to have made daily reports, or nearly daily iei)orts, 1 think, subsequently, makes it appear strange that he should not have during that period from January 9 to tha 24th made some statement about what he was doing or told what he had dis- covered. — A. The next communication, my recollection is, which I leceived after the 24th of «Tanuary, with the exception of one telegram, was on the IGth of February, which was twenty-four days after January 24, without any information from him. In regard to what he states in his letter of June 8, of having said the lijipers were in my pocket, T can only say that he is mistaken about it. The only comnninication I had then received was this large report, which it would be impossible t/o get into my pocket it* 1 wanted tx), and the one letter of January 24. lie came on next diiy after their recei]»t. By Mr. Wike : (^. Was there any cause assigned as to his removal ? Perhaps a let- ter was read while 1 was out. — A. He was not removed. He was di- rected, I think, that he was not to reenter upon examinations. Q. No reasons were given for his susi)ension? — A. No, sir. By the Chairman : Q. What occurred between the receipt of the letter of June 13 and tlie telegram of the same date ? — A. That will be shown further on. There had been no investigation to show whether Drew was indebted to the bank, and the receiver was advised to see whether or not he was so indebted. After the reading of the letter dated June 13, 1891, of Mr. John R. Keed, United States attorney, to Robert M. Yardley, receiver of the Keystone Bank, the committee adjourned until to-morrow, Wednesday, May 4, 1892, at 10:30 a. m. WASHINGTON, D. C, Wednesday^ May 4, 1892, The committee met at 10 : 30 a. m. Present: The chairman and Messrs. Sperry, Cate, W^alker, Wike, Busey, and Henderson. The Chairman. Mr. Lacey will now continue the reading of the letters, the last one he read being of date June 13. Witness read letters and telegrams as follows: Treasury Department, Office of Comptroller of the Currency, Washington, D. C, June 15, 1891. Mr. William M. Singerly, Care the Chestnut Street National Bank, Philadelphia, Pa. : Dear Sir : I am in receipt of your favor of the 13th instant, and note what you say in commendation of Mr. W. P. Drew, National Bank Examiner, which shall have very careful consideration. Very respectfully, E. S. Lacey, Comptroller, I ■! i' . ^- :i ft '' I ti l^ *^.-- ■■ 230 INVESTIGATION OF NATIONAL BANKS. TnKAsrRY Depautment, Office CoMrTKuLi>ER of the Cukrency, Washington, D, C, June 15, 1891. Mr. S. V. Tylkr, Care the Fourth Street Xatianal Bank, Philadelphia, Pa. : Dear Sir: I am in receipt of your letter of the 11th instant, and note what yon say in commendation of Mr. \V. P. Drew, National Bank Examiner, whicli shall have Tery careful consideration. Very respectfully, E. S. Lacey, Comptroller, Treasury Department, Office of the Comptroller of the Currency, Washington, D. C, June 15, 1891. Mr. G. M. Troutman, Care the Central Xational Bank, Philadelphia, Pa.: Sir: I am in receipt of your favor of the 11th instant, and note what you say in commendation of Mr. W. P. Drew, National Bank Examiner, which shall have very careful consideration. Very respectfully, E. S. Lacey, Comptroller. Treasury Department, Office of the Comptroller of thk Currency, Washington, D. C, June 15, 1891 Mr. Theo. Kitchen, Care the Central National Bank, Philadelphia, Pa. : Dear Sir: I am in receipt of your letter of the 11th instant, and note what you say in commendation of Mr. W. P. Drew, National Bank Examiner, which shall have careful consideration. Very respectfully, E. S. Lacey, Comptroller, Treasury Department, Office of the Comptroller of the CiTimKNCY, Washington, D. C, June 15, 1891. Hon. Morton McMichael, Care First yational Bank, Philadelphia, Pa. : Dear Sir: I am in receipt of your favor of the 11th instant, and note what you say in commendation of Mr. W. P. Drew, National Bank Examiner, which shall have very careful consideration. Very respectfully, E. S. Lacey, Comptroller, Trea.sury Department, Office of Comptroller of the Currency, Wathington, D. C, June 15, 1891. Mr. W. H. Rhawn, Care National Bank of the Repuhlic, Philadelphia, Pa.: Dear Sir: I am in receipt of your favor of the 12th instant, and note what you Bay in commendation of Mr. W. P. Drew, National Bank examiner, which shall have very careful consideration. • Very respectfully, E. S. Lacey, Comptroller, INVESTIGATION OF NATIONAL BANKS. 231 Treasury Dkpartment, Office of Comptrollku of tiik Cuurfncy, Washington, D. C, June 15, 1891, Mr. James V. Watson, Care Consolidation National Bank, Philadelphia, Pa.: Dear Sir : I am in receipt of your favor of the 13th instant, and note what you say in commendation of Mr. W. P. Drew, National Bank examiner, which shall have careful consideration. Very respectfully, E. S. Lacey, Comptroller, Washington, J%me 15, 1891. Hon. E. S. Lacey, Comptroller of the Currency: Dear Sir : In your published statement to-day in reference to the Keystone Bank I "see two telegrams which I transmitted to ymi for your information and had en- tirely forjajotten. Prior to making up the statement that I presented to the council's committee, I asked General Nettleton if he had any knowledge of any occasion or time when I had mentioned any one for receiver, or in any way delayed the appointment, and he an- swered no; and when I saw him later he stated to me that he had talked with you on this subject and you had confirmed his statement to me. Upon this assurance, confirming my own recollections, I prepared the paper submitted by me to the com- mittee. I beg now to ask if the telegrams referred to influenced your action in delaying the appointment, or whether you have any knowledge that leads you to suppose that I desired the appointment of any particular person tor receiver. Very truly yours, .John Wanamaker. i 11 [Address reply to "Comptroller of the Currency," Washington, D. C] Treasi:ry Department, Office of Comptroller of the Currency, Washington, D. C, June 15, 1891. Hon. Robert M. Yardley, Receiver Keystone National Bank, Philadelphia, Pa.: Dear Sir: I am in receipt of your favor of the 12th instant, inclosing a letter from the subcommittee of the committee on fiiumceof the Philadelphia council, request- ing that you furnish the committee with the stock ledger, stock transfer, and certifi- cate 'and dividend books of your trust. In reply, you are respectfully referred to my letter of the 12th instant, in which you will find stated the conditions under which you are to permit an examination of the matters and accounts of your trust. Very respectfully, E. S. Lacey, Comptroller. Treasury Department, Office of the Comptroller of the Currency, Washington, D. C, June 16, 1891. Hon. Robert M. Yardley, Receiver Keystone National Bank, Philadelphia, Pa.: Dear Sir: You will no doubt find among the assets of your trust a daily state- ment which will show the resources and liabilities of the Keystone National Bank at the close of business upon each day. This will be really a trial balance taken from the general ledger. I wish you would make out and send me, at your early convenience, a statement showing the condition of the bank at the close of business on each of the following days : January 24, February 16, and February 28, 1891. Very respectfully, E. S. Lacey, Comptroller, m a. I h 232 INVESTIGATION OP NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 233 [Telegram.] PiiiLA., Pa., June 16, 1891. Hon. E. S. Lacey, Comptroller of Currency, Waslm., D. C: I have informally stated that you could have had no inforiuatlon except from me, and all rriticisuis otherwise are without my anthtnity. Vour report entirely satis- factory to the banks. Can you hasten the conference and remit my bills? I await your orders. Events will completely justify the Department. W. P. Drew. [AddresH reply to " Coinptrollor oltLe Cnrreucy," Wa.shiugton, D. C] Treasury Department, Office of the Comptroller of the Currency, Waslniujtou, I). C, June 16, 1891. Hon. R. M. Yardley, Receiver, Keystone National liauk, I'hiluilelphia, Pa.: Sir: Referriuj^ to telegram of the 13th instant, you are respectfully informed that the checks contained in office letter of the same date may be delivered to Mr. W. P. Drew, if he is not directly or indirectly indebted or liable to your trust in anyway. When the delivery is made, the amount of the checks aliould be credited to the account of the Comptroller of the Currency on your books and charged to ''Loans paid and other disbursements." Respectfully, yours, R. M. Nixon, Deputy and Acting Compt roller. Treasury Department, Office of the C<)Mptkollkr of the Currency, WaHhinyion, D. C, June 16, 1891. Hon. John Wanamaker, Washington, D. C: Sir: I am in receipt of your note of yesterday in which you refer to the two tele- grams from yourself <[Uoted in my communication of the 10th instant to the Secre- tary of the Treasury, covering the transactions of this Bureau in connection with the failure of the Key8ter to reiterate what was said in my letter to you of Junc^th, and to direct that no further examiuation be proceeded with until the matters alluded to have been duly investigated and a decision reached. Very respectfully, ^ ^ ^^^^^ Comptroller. Confidential.] Washington, D. C, June 18, 1891. Hon. Edw. S. Lacey, Comptroller of the Currency: Dear Sir: At the time of the failure of the Keystone National Bank of Philadel- phia I held as collateral 2,515 or 2,516 shares of the stock. A doubt has been raised as to whether this stock was properly issued. The fact that Mr. Marsh, the former president, and no other person, raised this question while 1 held the stock, and his statement to me being only that he could not account for a portion of the stock, and that if I would consent to accept actual ownership of all the stock and pay assess- ments on it to aid in rehabilitating the bank, he would obtain from other holders enough stock to cover any irregularities of issue, if such existed, coupled with his interested motive in getting the Lucas estate settlement, gave me strong reasons to believe that the stock 1 held was properly issued, while in any event it could make no difference to an innocent holder of collateral whichever way the case stood, yet I feel an interest in ascertaining the facts from the stock books, which should show the true state of affairs. I beg to ask you to direct, if not inconsistent with the pub- lic interest, that the receiver allow my representative, under his supervision, to ex- amine the stock and transfer books for the purpose of determining the exact condi- tion of this matter. Yours, respectfully, Jxo. Wanamaker. [Robert M. Yardley, receiver of Keystone National Bank, removed to No. 2291, Room 21, third floor, Post-Oflice building.] Philadelphia, June 18th, 1891. Hon. E. S. Lacey, Comptroller of the Currency, Treasury Department, Washington, D. C: Sir: I beg to acknowledge your ftivor of the 16th, and herewith inclose you state- ment showing the condition of the Keystone National Bank on the following days : January 24th, February 16th, and February 28th, 1891. Yours, respectfully, Robert M. Yardley, Receiver. -i 234 INVESTIGATION OF NATIONAL BANKS. Dailfi Htntcmenl of the KctfMtone Nalioual Bank, 1891. Due bills Capital stock Circulation Profit an«l loss lnt INVESTIGATION OF NATIONAL BANKS. 23o Daily HtaUmeui of the Ke,, stone National Bank, /,99i-C«n tinned. Lewisburg, Pa., Union National Bank Lebanon, Pa., Lebanon National Bank... Manayunk, Phila., Mauiivunk Bank ... Media Kortbern Nat. Bk. -.-•----•-- N. S. Fund Norristo^^^l Nat. Bk . . Pittsburg Nat. Bk Pottstovvn Nat. Bk Pottsville Nat. Bk Reading Nat. Bk Ricbmoud Nat. Bk Steelton Nat. Bk Scranton Nat. Bk Wasbinston Nat. Bk. Wheeling Nat. Bk.... WestPliila. Nat. Bk.. West Chester Nat. Bk Wilmington Nat. Bk . . Atlanta Nat. Bk Toronto Nat. Bk Chester Nat. Bk Dover Nat. Bk Tradesmen's Triist, Chester Val. Bk.... Coat«8ville Nat. Bk. . . Chicago Ist Nat. Bk.. GENERAL LEDGER. Jan. 24. Feb. 16. Assets. Liabilities. Assets. $2,814.81 '. Liabilities. Assets. Feb. 28. Liabilities. ! $336. 5u 1)6.32 ioi-.^o "84." 38" "638.'i5 719. 50 I 164.02 2, 500. 00 8, 000. 00 $787. 16 552. 72 ■"776," 97' i.' 999." 66" 2, 023. 64 "iii.si 2, 518. 91 886.20 5,318.02 I 91.00 I 108. 40 $82. 40 22.17 23.20 452. 33 '2'i95.92 2.56 12,480.15 1 7,552.45 51,783.93 1 6,812.84 $3, 776. 98 '"977.98 2, 195. 70 2, 003. 57 2i6.'84 " 'i69.25 ""755." 78 428.80 904.08 2. 267. 82 125,70 12, 000. 00 165. 65 2, 476. 20 $2L30 "446.33 "122.' 87 2.56 56,403.86 I 6,719.72 [Address reply to "Comptroller of the Currency," Washington, D. C] Treasury Department, Office of Comptroller of the Currency, mishington, D. C , June 19, 1S91. Hon. R. M. Yardley, • , , ., ^ , . . „ Receiver, Key atone National Bank, Phihidelphia, Fa.: Sir: You will permit an exaniiiuitiou, under advice of the U. S. district attorney and under your supervision, of the stock and transfer books of your trust by a pioper representative of Hon. John Wanamaker, with such reservations of confidence as the interests of the creditors of the bank or the ends of public justice makes necessary. Very respectfully, ^ g ^^^^^^ Comptroller. June 19, 189L Hon. John Wanamaker, Washington, D, C: Sir: I beg leave to acknowledge the receipt of your letter of the 18th instant and in reply thereto to say that in accordance with your request I have this day addressed to Hon.'R. M. Yardley, receiver of the Keystone National Bank, a communication, of which a copy is herewith inclosed. Very respectfully, ^ ^ j^^^^^, Comptroller. I .! i«~i 236 INVESTIGATION OF NATIONAL BANKS. Treasury Department, Office of the Comptroller of the Currency, Wmhington, D. (\, June 19, 1891. Hon. R. M. Yardley, lieveirer, Kei/stone National Banl, Philadelphia Pa • I notice that the liability of the bank on account of cleariuc^ house certificitpQ i uot shown in either one of these statements. Will vou . le ^ae criv« !L !? of these items on each of <,he dates n.entionedf ^ ^ ^^^ ""^ *^^ ^""^"^ IS t Very respectfully, E. S. Lacky, Comptroller. IKobert M. Yanltev, receiver „r ««^»'- K.;;^-'^«»^^No. =2»,. Ke,„ov.a U, r^ 2.. third ««,r. Hon. E. S. Lacey, Philadelphia, June 24th, 1891. lability of the i-yv^,,, ates, January tih^ilteH.'^'^*"^^*^' ^'^"^""^ '^'^^'""^^ '^^'"'^ ^'" '^^ ^•'^<^<»""* of clearing-house car- Jan. 24, balance due Feb. 16, balance due... $r>44,851.4G Feb. 28, balance due 428,516.24 Yours respectfully, 374,416.46 KOIJKRT M. Yardiey, Jieceicer, [Tele^jram.J Hon. E. S. Lacey, Phit^delphia, June 24, 1891. Comptroller Currency, Treasury Ihpt., Washington, D. C: Subpoenaed to produce certificate stock book and certifinQf^a «<• ,»,,«- • i ^ co..neU iuvestigatiou co.,n,.itt«e th,™ uVloclf t,;?d"ay?"rro*^«2rL'Todudr s Robert M. Yardley, Receiver. [Telegraphic message. By '^"'^St'I-al^™''''"^' ^''^^Sea to be collected at Govern. Treasury Department, OFFICE OF THE COMPTROLLER OF THE CURRENCY, Hon. ROBERT M. Yardley, Washington, June 34, 'l891. Receiver, Keystone National lianh, Philadelphia, Pa.: Telegram received. Comptroller does not object provided you proceed under in structjons contained in his communication of June 12th. proceed under in- E. S. Lacey, Comptroller. Treasury Department, Office of the Comptroller of the Treasury Hon. Robert M. Yardley, frashington, D. C, June 25, 1891. Receiver, Keystone National Bunk, Philadelphia, Pa.: we^r?he^Irbv '^!T^^ "^^-^^f* ^»"«"»t of the assets of the Kevstone National Bank Very respectfully, £. S. Lacey, CumptrQlUar^ INVESTIGATION OF NATIONAL BANKS. 237 TRobert M. Yardley, receiver of Keystone National Bank, ^o. 2291. Removed to room 21, third floor, I post-office building.] Philadelphia, Jane 26, 1891. Hon. E. S. Lacey, ,.. , - . t^ ^ Comptroller of the Currency, }\ ashington, JJ. C; Sir- In reply to your letter of June 25th, I beg leave to report that bills dis- counted amounting to $729,308.93 were held by the clearing-house committee at the close of business January 24th to secure the payment of clearing-house certificates issued to the Keystone National Bank. Yours respectfully, _ __ v.^^.^^r *^ Robert M. Yardley, Receiver. Treasury Department, Office of the Comptroller of the Currency, Washington, D. C, June 29, 1891. Hon. Robert M. Yardley, Receiver Keystone National Bank, Philadelphia, Pa.: Sir: Enclosed please find a communication addressed to Hon. Edwin S. Stuart, mayor, which you will please deliver at your earliest convenience. For your information I herewith enclose a copy of the same. Very respectfully, ^ ^ ^^^^^ Comptroller. [Inclosure.] Treasury Department, Office of the Comptroller of the Currency, Washington, D. C, June 29, 1891. Hon. Edwin S. Stuart, Mayor, Philadelphia, Pa.: Sir- I have the honor to inform you that it is the purpose of this Department to aid in every practicable way the investigation of the affairs of the Keystone National Bank and the Spring Garden National Bank, and especially with a view to ascer- taining who have been guilty of criminal violations of law, or who have aided or abetted in the commission of such acts. ^ ^x, x To that end 1 am directed by the Secretary of the Treasury to request that y(ui will submit to him the names of two suitable persons for appointment under the provisions of the act approved March 3, 1891, which provides for the investigation of violations of section 5209, U. S. R. S., which reads as follows: ''Every president, director, cashier, teller, clerk, or agent of any association, who embezzles, abstracts, or willfully misapplies any of the moneys, funds, or credits of the association ; or who, without authority from the directors, issues or puts in circu- lation any of the notes of the association; or who, without such authority, issues or puts forth any certificate of deposit, draws any order or bill of exchange, makes any acceptance, assigns any note, bond, draft, bill of exchange, mortgage, judgment, or decree; or who makes any false oitry in any book, report, or statement of the asso- ciation, with intent, in either cale, to injure or defraud the association or any other company, body politic or cori)orate, or any individual person, or to deceive any officer of the association, or any agent appointed to examine the affairs of any such association; and every person who Avith like intent aids or abets any officer, clerk, or agent in any violation of this section, shall be deemed guilty of a misdemeanor, ^nd shall be imprisoned not less than five years nor more than ten." The persons to be selected and recommended by you should be expert accountants of ability and experience, and of such reputation as to courage and integrity as will satisfy the creditors of these insolvent banksthat the investigation will be thoroughly and impartially conducted. Yery respectfuUy. ^ ^ ^^^^^_ Comptroller, ai 238 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 239 Treasury Department, Office ok the Comptroller of the Currency, Washington, D. C, June 29, 1801. Mr. W. P. Drew, National Bank Examinei', PhiladeJpMa, Fa.: Sir: Inclosed herewith you will find certified copies of your report of January 24, 1891, as to the condition, at 10 o'clock a. ni. on that day, of the Keystone National Bank of Philadelphia, and of your lettf^r of tlir same date referred to in snid report. An investigation of the affairs of said hank discloses the fact that at the date of your said report it was indel)tcd on account of clearing-house certificates in the sura of $544,851.46, said indcbtt'duess being secured by pledge of its notes and bills amounting to $729,308.93, which assets were then held by the clearing-house com- mittee and were not in the custody of the bank. You will observe that this in- debtedness of $544,851.46 is not stated among the liabilities of the bank, nor is any mention made in either the report or letter of this large indebtedness, nor of the absence of so large a part of the assets. You are requested to explain the cause of these omissions at your earliest convenience. Very respectfully, E. S. Lacey, Comptroller. Office of the Mayor, Philadelphia, June 30, 1891. Hon. E. S. Lacey, Comptroller of the Currency, JVtuhinfflon, D. C: Dkah Sir: 1 beg to acknowledge receipt at the bands of IKuj. Robert M. Yardley, of your comniunic'atiou of the 29th iust., rtMiuesting jne by direction of the liouor- able Secretary of the Treasury, to sul)niit to him the names of two suitable persons for appointment under the provisions of the act approved March 3, 1891, which provides for the investigation of viohitions of st'ction 5209, IT. 8. R. S., and in reply to express my appreciation and thanks for your own as well as the Secretary's cour- tesy in this matter, and to state that 1 will be pleased to comply with the request and ])resent such nanuis at the earliest possible moment. I am, respectfully, • Edwin S. Stuart, Mayor. Philadelphia, June SO, 1891. Hon. E. S. Lacey, Comptroller of Currency, Washington, D, C: Sir: In answer to your letter of the 29th inst. for explanation of the omission in my preliminary report of Jan'y 24, 1891, (ui the Keystone National Bank of this city, of liabilities of $544,851.46, clearing-house loan certificates, and of the further fact that no reference was nuide to the same in my letter transmittiiig the report, I have to sttte that on a comi>arison made by me on the 26th inst. of my retained papers with the re]>ort referred to as recently forwarded by you, with the con-espondence, to the mayor of the laced in the report in banking-house account. As stated in my letter of transmittal, the n^port was informal and inconii)lete in many rt^spects, owing to the fact that nmny of the accounts were then, anort; and he reiterated at considerable length the statement contained in his letter to me of June 30, in which he stated it was purely an accident, and that he could not account for it in any- way, except that he had omitted it by accident. I informed him tliat the matter had been duly considered by the Secretary of the Treasury, and that the Secretary had directed me to ask for his resignation ; that I certainly could not recall that without the Secretary being consulted. He expressed a desire to meet the Secretary, whereupon I went to the Secretary, and he consented to meet Mr. Drew. We three went to tho Secretary and we dis(!ussed the (piestion at some length. The Secre- tary, after hearing all Mr. Drew had to say in the matter, stated that under the circumstances he could not modify his views as exi>ressed in the letter of July 2. Q. As expressed in yowr letter of July 2? — A. Yesj in which I re- quested Mr. Drew's resignation. After the interview we returned to my oftice and he took the letter of July 2. No new matter was intro- duced into the conversation which would give any other reasons for the omission than those indicated in his letter of June 30 to me. Q. Did he resign? — A. We will come to that later. Q. He did not resign at that time — ^he neither resigned nor refused to resign at that timef — A. No, sir. } INVESTIGATION OF NATIONAL BANKS. Witness had read telegrams and letters as follows: 241 Treasury Department, Office of the Comptroller of the Currency Hon. R. M. Yardley, Washington, D. C, July S, 1891. Heccircr Keystone National Bank, Philadelphia^ Pa.: Sir: The mayor of Philadelphia has suggested as proper persons for appointment to inve8t.<^.t<' violations of section 5209, as disclosed by the affairs of yoiir trnst the names ot xMr. Taylor Faunce, Koom 13, No. 308 Walnut street PhiLdelT^hi^ j,nH Lawrence E. Brown, No. 934 Drexel Building ' i-nuadelphia, and Is there, any reason to believe that the appointment of either of these gentlemen will place in jeopardy the interest of any creditor of your trust? S^nii«men Keply by wire, so that it will reach me by 9 o'clock Monday mominff, without nientionm^r names, mdicatmg the gentlemen as numbers 1 and 2 wimour Very respectfully, E. S. Lacey. Comptroller, [Address reply to "Comptroller of the Currency," Washington, D. C] Treasury Department, Office of Comptroller of the Currency Hon. Robert M. Yardley, Washington, D. C. July 3, mi. Receiver Keystone National Bank, Philadelphia, Pa.: Sir: Your letter of the Ist instant is received, enclosing a statement of trans- As at present advised, the Comptroller is of the opinion that the deposits men ^Z'Jll r^ those indicated as having been made by other creditors cSmbe™on: nfW^ as spe^al deposits, or protected so as to place the other depositor; in any other position than that occupied bv general creditors "sn^rs in any rhere seems to be some misunderstanding as to the iaw in the matter of deposits made in a national bank just prior to suspension. In some cases allegations of \va id have been sustained by the courts, but the Keystone National Bank warclose 1 v ?h« h..l*^/ Comptroller of the Currency without previous notice to the officers df t'h: bLt VX'n wily ."^""^^ '' "°^ '"*^"*^^^ ^^ *^« ^-* -' *^^ management to dost Very respectiully, E. S. Lacey, Comptroller. Hon. E. 8. Lacey, Philadelphia, July 6, 1891. Comptroller of the Currency, Washington, D. C: Sir: As you will remember, I took from you in vour office in WtJHhincrtni, fi.« afternoon of the^3rd inst., your letter of the 2nd inst^,Tformfnc. me tta^^^^ eou«ideration, the SecTetary of the Treasury had concluded to rSq fc^t throS^voi mv ^^!",?°^^*^«" a« National Bank Examiner, on account of my tkilur^ to nc"l c?e n ny preliminary report on the -Keystone National Bank" of this city of the 24th of lod^tJ^^i^t^i::^:^: ^^-^ of .544,851.46, on account o/ci^lt^:^^^^^^^^^^^ ih^"!!^^ ^®**^^ ^^^^l^ *^ ^^^ *"^^t as stated in my letter to you of the .30th ultimo that waseiXr.;H''^'''''^ *" ^T r'''^yf^^-^'^^^-^tr<^HLaaU.^^^^^^ was m?W? I 1^^ i"«moran«la tor my letter transmitting the report of .Jan'v 24 but S? I d^Jo^^^^^^ I was totally unaware of until,ln . „ne warded bvvn. H l^ o»"itted it by comparing the report of .Jan'y 24, as for- Sm leto Llto?.] -^ mayor of this city. Inasmuch as the report wasnec'essajily ren 11 i, 'p , ^"""^ \"'^ Jf "*'''' *"*^ *^^^ omission a clear oversight, and snbsernient ce?t H^., *e^ru«ry did fully show the liability on account of clearing-ho u^^^^^^ W f J I?"^ ^^*^^^. *^"^^ **'^'«« ^*« t^ken (March 20) in closin- tl e ba k 1 had tee W. ftn • *^«"«i^«^^*r? r^Y' ^^^"«^ '^^ unintentional ainl^cciden ai oi ds^ -As r^suU th^^ ^^ '^""T ^iJ"" ^'^"^ ^^"^^ «^ 2"^1 "»«*• y«" «tate hat oino "^"""^^'^^^^^ ^^^« reached that so important an omissioi, after fifteen o4v2 16 ) '41 242 INVESTIGATION OF NATIONAL BANKS. bo..8. l....n ccrHUeates <'"»?ta°^i°S ,,''g»i"te bank .%^^^^^ »"« re.iui.cd wilhw ,,../ kuowlclKe ever since the run »" ™« J'^^",^ .\'{'-'*v!^ ftom the clearing no partknlar iuvctigation, as *!'«''» 7''^;7«*,^*i'^24alon^^^^^ and accidental oversight. Very respectfully, yours, - W. P. Drew. July 6, 1891. Hon. E. S. Lacey, y^ t , n n * Comptroller of Cunemy, Jraslungtou, U.O,. , „,. , ^ ♦« « ..f DFAK Sir- On paitiuj? with you on the afternoon of the 3d m^. at your othce at **I iTope I may always retain the honor of your good opinion personally. Very truly yours, ' y^ p d^kw. Office ok Trkasury Department, THE Comptroller of the Currency, Washington, D. C, July 8, 1801, Mr. W. P. Drew, . „., j , ,. r>„ . No. S939 Chestnut Street Philadelphia, Pa.. Sir: Your favor of the 6th instant came to hand yesterday, in ^^'i^^^y^'^nd "th« if in view of the facts stated by you, your case might not be reconsidered, and the 'TtXr^^'^^^^^^^^^^ ^- ^«^" laid ;>efore. the Secreta? ^of th^ Treasury, and he directs me to say that, in view ot the senous nXre of the omission acknowledged by you as having occurred in your report of Sanuarv 2I 1891,^h^ not see his way'dear to modify his former decision in the matter, which was l il 244 INVESTIGATION OK NATIONAL BAHK8. P !i July 10, 1891. Hon. K. S. Laoey, romptroller of the Currency, ^Vmhington, D. V,. 8iR- Your letter of the 8th inst. was received hy me this mommg, 10th. 1 win ^'nlvTl^H^rr^^^^^^ Knox to-day at Spring Garden Nat. Bank with reference to bis %8. in that bank. Very respectfully, ^ p drkw. Treasury Department, Office of the Comptroller of the Currency, Washington t D. C, July 10, 1891. Mr. W.P.Drew, „..,.,,.. i> S939 Chestnut Street, Philadelphta, Pa.: nv AR Siu • 1 im in receipt of your favor of the 6th instant asking for an unofocial ««rv ce when I entered upon the duties of Comptroller on May 1, 1889, and th.it you Philadelphia, July 10, 1891. Hon. E. S. Lacey, m , • ,. n r . Comptroller of the Currency, nashinyton, D. C. «.tt- T have the honor to ackuowledse the receipt this day oi your letter ol the h in»t' and? ii, accordance with the directions of the Secretary of the Treasury, to tenderiiiy"re8ig'nation as National Bank Examiner. Very respectfully. W. P. Drew. IRobeit M. Tardley. receiver of Key«tc(mnnunicatetomesuch facts as indicate criminal complicity on the part (»f any of the officers or directors of either of said banks, or anything that indicates that the criminal statutes of the United States have been violated. I expect to sub- mit hills of indirtmont to the grand Jury at the August term against F. W. Kenneiiy ami Harry Kennedy, who held the position of president and cashier respectively of the Spring (xarden National Bank, and also against Gideon W. Marsh, late president of the Keystone National Bank (now a fugitive), and against Charles Lawrence, late assistant cashier of said bank, and I should like to feel at liberty to call for assist- ance on the part of these experts to furnish me with such additional evidence as they may obtain as to the criminal conduct of either of the parties mentioned. Yours very respectfully, John R. Read, U, S. Attorney. [Address reply to " Comptroller of the Currency," Washington, D. C] Treasury Department, Office of Comptroller of the Currency, Washington, D. C, July 11, 1891. Mr. W. P. Drew, 39S9 Cliestnut street, Philadelphia, Pa.: Sir : I am to-day in receipt of your letter of the 10th instant tendering your res- ignation as National Bank Examiner, which is hereby accepted. Very respectfully, E. S. Lacey, Comptroller. This closes the correspoudence up to the final resignation of Mr. Drew. Q. Have you two reports, the one made by Mr. Drew as examiner of the assets of the bank as he found them at the time of the closing of the bank, and one being a report of the receiver of the condition of the assets when he took possession? By Mr. Walker : Q. What date was it that he made the omission? — A. That was the first report made by Mr. Drew, dated January 24, 1891. (^ What is the date of the next report!— A. The next report was dated February 1(>, 1891. Q. When did the bank fail?— A. It was closed March 19, 1891, The final report was the one dated February 28, which reached me about the 2d of March. Qi What action did you take upon the report when it was first com- municated to you?— A. I made an assessment upon the capital stock. Q. Immediately ?— A. Yes, sir; but let me call attention to thi« fa(^t: The report of January 24, 1891, did not state the clearing-house liabili- ties of $544,851.40. It valued the Sea Girt property at three hundred and fifty five thousand and some odd dollars. The report of February 16 stated the liabilities on clearing-house certificates at a reduced sum, but it stated the Sea Girt property as valued at $700,000 instead of $35;>,000, which increased the resources as well as the liabilities. Q. What did the Sea Girt property provetobe worth?— A. Nothing lias been realized from it; but a recent valuation upon it shows that in any event it is not worth over $372,000, if you include some consider- 1 / 246 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 247 11 II. able i)(»rtioii of the stock pledged to Bardsley to secure the city treas- urer's account. By the ('H AIRMAN t Q What I want to get at is the statement that shows the condition of the assets of the bank on the day it ch>sed— the UHli of March.— A. This sliows that. This shows the vaUie of each particular asset ot the bank on the I9th of March, up to its receipt by Yardley when he took charge (J^l want to see what change there was?— A. This shows the con- dition of the bank at the time it closed. ^i ^ v. i. Q The correspondence shows, and my sense teaches me, that between the 'date wlien Drew closed the bank and the time the receiver took charire there was a change in the condition of these assets, and I want t4> know what it was.— A. The rules of the otitice require the receiver to show the ility to and from the bank on the date of its closing. Everything collected in the meantime is undoubtedly shown on this report. Q. I am asking for the schedule (U' the list; Drew states that he sent Q Mr Drew states that you will find the memorandum ami final report at such and such a tinie. There must be siuh a paper unless I have misapprehemkMl the rorrespondence. lie repeatedly referred in this correspondence to the fact that he was engaged in checking his reports— A. The examiner, when he turns over to the receiver the assets of the bank, is required to make an explicit schedule of every kind of assets and liabilities, and to pass them over to the receiver and ^et the receipt of the receiver for every particular asset that came into his hand when he took ])ossession of the bank. And as 1 understand it this report submitted here is the report, except the balances, as shown in the statements, showing the loans and discounts, receipts, etc. By Mr. Walker : Q How long did the examiner practically have -possession before he turned the bank over to the receiver f— A. From March 20 to May 8. Q At the time he took possession did he make as careful a schedule as he did at the time he turned the bank over to the receiver; or did he simply keep the business running along, keeping the accounts aiid the daily transactions?— A. He proceeded to make collections, and 1 sup])ose they are upon the books now in the hands of the receiver, t'iving the records of his transactions during the time; but the schedule which the receiver makes, and which the receiver receipts for, shows the condition of the bank at the date when the examiner closed the bank. ,,.,.. ^ i. i i Q When the examiner closed the bank— that is to say, it goes ba<-k of tiiatand shows all transactions since that time?— A. The books of the examiner will show that, but the records of our office do not. \N e do not keep the transactions of every trust in our oftice. Q. But while there is no full detailed statement of the condition ot the bank at the time the examiner displaced the officers of the bank, the accounts are kept along, and they show when the receiver *takes it.— A. ; The receipt of the receiver shows the condition at the time the bank was closed by the examiner. Q. The account that you handed to the chairman, as I understand it contains practically both the accounts which he asks for?— A. It show every item of assets and liabilities that was in it when the examiner took charge. Q. ThtHi that account shows both the statement of condition when the examiner took charge and when the receiver took charge? By the Chairman : Q. That is the receiver's account. It is not the schedule called for in the letter? — A. It is, as I understand it. Q. It is the receiver's report and not the schedule of the examiner. I'he r<'ceiver is required to duplicate this; but, in order that we should know, the schedule as originally prepared by the examiner ought to be here. By Mr. Wike : Q. It seems very clear to my mind that there ought to be something to show the condition of the bank when the examiner closed it, and took charge of its affiiirs.— A. That is precisely what this paper shows. Q. \ou may be able to figure it out from this.— A. Excuse me, this shows exactly the items, every note, overdraft, balances due, and every particular item that belonged to that bank when the examiner closed it, both the assets and liabilities, and the receiver has receipted for every single one of those items. Q. It does it, because it shows the result!— A. It shows the identical items. Q. Then it proceeds further to show what had become of them since that time?— A. Yes, sir; that is precisely what this shows— every item of assets and liabilities at the time the bank closed, and up to the time the receiver took charge. By Mr. Walkeb: Q. This is a complete answer to the question. It shows every trans- action between the date the examiner took the bank, up to the date when the receiver was appointed, and took possession. By the Chairman: Q. This examiner was required at the time when he took possession to make an examination and investigation as well as a schedule of the bank's affairs. Is not that one of the requirements?— A. That is the customary way; but, as you see, the letter says he had not made it up to the time when the receiver was appointed. Q. It shows that it had not been transmitted to you?— A. We did not receive it. Q. So that what we have got here in this report is simply the state- ment ot what Mr. Drew told the receiver at the expiration of neailv two months' possession of the assets of the bank? That is what w^'e Have got, and nothing else?— A. This report, as I understand it, shows not only what Mr. Yardley receipted for, but what Drew reports he had on hand March 20. o S*^^ ^'^ *^^ report which he makes in May?— A. Certainly. if V\ hat I want is the inventory or schedule of assets and liabilities wnicu he niust have made in this investigation in the montli of March. A. It IS evident, if he did make it, that he did not transmit it, because he was asked to forward it. Mt 248 INVESTIGATION OF NATIONAL BANKS. (^ Do you say tliat lie never did forward it?— A. I say, so far as I know, tliesc are all tlie papers that have been forwarded. Q. What 1 want to know is whether the schedules were made, and if so, whether they were filed in your office? — A. You want a statement showing the assets that came into his hands. If there was any report of the assets made by the examiner, I do not know it. Whatever there is is in the archives of the Office, and certainly are at the disposal of the Committee. Q, The third requirement was that we should also want copies duly verified of the reports of the bank officers and examiner from the first of January, 1887, down to and including the period when the bank examiner was in the custody of the bank, and up to and until the re- ceiver took possession of it and its assets. The missing one is the one covered by that period?— A. If there is any such report. Of course, that, I suppose, would mean the reports of the examiners. The schedule of the assets may be in the archives. I addressed a letter to Mr. Stod- dard requiring him to produce these papers. Up to the 11th of May there had been no schedule sent to the office. Q, This document which you do produce is the first report of the rciceiver with the schedule attached^ and this schedule " C " is part of that?— A. It is a list of depositors m Philadelphia, and the amounts due each, as shown by the ledger on March 20, 1891, the date of suspen- sion. The list of assets covers each particular item that was due to the bank, and gives a full description. Exhibit 1 of May 5, 1892. RECAPITULATION-STOCK CALLED FOB- Stubs show. Ledger shows. 907 969 1,039 1,089 1,176 404 1,602 1,551 708 1,573 186 286 1,241 1,241 Haines. 1,253 1,253 Yard. 2,098 2,098 Not posted. 1,414 1,414 " Lucas 800 800 Lucas. " 175 12,599 12,678 -♦ INVESTIGATION OF NATIONAL BANKS. 249 ) Names of shareholders of the Keystone National Bank of Philadelphia, as they appear upon the stock ledger f March 20, t891. Arthur, Robert Artlmr, Fannie R Allen, Mrs. M. P Anderson. John W.* Agnew, V. Barr, William I licll, Howard & Co liringhiirst, Mrs. A.F.*. Bastiau, U.S. Bradley, H Brintzinghofter, C* lieattv. M.A Bender, W. A Do Bums, B. C Brooks, W.H Bodine, D. W Brown, I. A. S Do Brown, Geo Do Do* Bncker, A. W Do Brown, Mrs. Rachel A Buck, Daniel Do Do* Buchanan, R. R Canning, Letitia Do Cassady, John H tio Cassadv, Jno. H Do Crump, H. J Crump, J ohn Crump, Geo. R.* Chapin, Sarah C Do Creth, JohnE.* Creth, Caroline Cooper, Mrs. D. E Coxe, WilliaiuP Do Do Chambers, Mrs. M. I Codbnrv. Richd. F Do Canim, Laura M Davis, Miss Mary A Do Do Dreka, Louis * Do Dahia, Geo. E. (see certif.No. 819, transf.). Dorons, A. C Dorons, Emma Excelsior Divis. Sons of T Do Fields, Geo. F Gabel,.ir., Geo. T Goforth, Mary Ann Graham, Mrs. S. C Do Green, Henry W.* , Gans, E. M Do Greenwell, John Garrett, Walter G rev son, Joseph Do Groves, estat* of William Do Goble, B Do Transferred. Certif. numher. 214 926 855 Shares on stub. 10 21 10 443 897 903 937 943 3.52 585 724 830 467 689 769 786 809 853 153 431 243 661 256 471 583 614 G6G 899 879 828 622 814 878 407 787 940 891 369 482 773 483 673 7.S5 837 50 5 10 1 5 10 10 2 10 40 20 10 5 5 5 10 10 8 25 6 8 6 10 10 5 5 7 10 6 11 10 10 2 5 5 5 10 2(K) 200 1 10 10 12 20 20 3 5 20 50 20 5 30 20 8 12 20 5 3 10 90 I 4 1 I 10 Shares in ledger. 10 21 10 100 50 o 10 50 50 1 8 10 12 10 40 20 15 20 18 25 20 10 15 12 16 U 10 100 12 10 10 2 15 10 200 1 32 40 10 20 5 13 90 4 1 15 25 8 20 50 25 50 ao 250 INVESTIGATION OF NATIONAL BANKS. \ I If ^Mmf8 of shareholders of the Keystone National Bank of rhiladelphia, efc— Continued. (libbs, Alniesia* Hainf^s,C.C Do Do Do Harmor, Josephine C Haiurs, H. A Holhrook, K. M Do ])0 Howard, James "W. . . Do Hihlmrd, Siiaan Y Do Hopkins, Edward Holbrook, John B Do Do , Hoopes, D. I Do- Hornickle, H. A JolinHon, I. T Do Do Jones, Joshua R Jackson, J. T Do Jarrett, lJen.j. F Jones, Honrv Jackson, W'. S.* Kohlnins. John Kohlmns. A nna L Do. Kerst, Henry (old certificate outstanding) Kerlin, Isaac Is^ Do King, Lillie W Do Logan, John P Do Logan, Jane H Lowry, A. A Long, Benj. C Do Long. William v.... Do Do Do Do Lex, William E. * . . . Lamborn, Joseph . . . Leech. William H... Do Do Logan, Mr^. Mary P. Lucas, J. H .' Do Lucas W. K Do Lucas. Floren«'-e Do Do Lucas, Samuel Do Lucas, Mrs. W. E J^ucas, Ethel Lucas, Mildred Lucas, Granville H.. Lucas, J. C Do.... Do... Do. . . . Do. . . . Do. . . . Lester, B.G. Certif. number. Mellock.J.M McFadden, Chas.. Do MoFadden, Addle. •Transferred. 871 872 873 1 762 906 226 488 670 G44 10 567 675 493 217 487 680 490 674 491 104 495 681 894 494 737 944 867 780 688 766 682 827 892 501 684 683 502 692 503 833 573 596 691 945 938 620 627 612 433 327 426 328 427 359 406 423 :t62 367 4'22 424 425 428 340 356 36:t 365 413 414 851 12 826 856 922 Shares Shares on stub, in ledger. 1 37 4 40 30 2 10 3 2 20 5 2 1 4 15 10 20 10 7 5 2 10 6 4 10 \) 100 III ill 10 I ) 10 1 1 20 i 2 2 200 200 100 100 100 100 200 20 50 25 625 301 40 14 12 25 36 5 15 30 5 425 15 50 10 10 100 37 44 30 2 1 19 52 10 20 100 4 20 20 2 200 20 75 625 \ INVESTIGATION OF NATIONAL BANKS. 251 jXames of shareholders of the Keystone National Bank of rhiladelphia, eerger, E. A Do.^ Seidenbach & Enburg * Transferred. ¥ MIMMH 252 INVESTIGATION OF NATIONAL BANKS. Names of shareholders of the Keystone National Bank of Philadelphia, etc. — Continued. Smith, Henrietta M IKi Do Do Smith. Edwin F Do Stang, Peter Do Staug, George Do Sharp, Amelia Taylor & Com'iVy, L. H.* '. Thoma.s, Howard V Do Torr, r. C Do Do Torr, W. S Do.* Tol»iii8on, Amelia L Tobia.son, Abigail A WeaA-er, David Do Walker, Relieeoa A William 11. Warner Warner, Mrs. Sallie Do Wilpm, G. S Whitesides, William Wheeler, Mifflin Do Webb, Mrs. E. D. (old certiliciate) Webb, Mrs. E. S. * Ware, Mrs. Hettie ADDENDA. * Tiausreried. Certif. Shares number. on stub. 813 6 835 20 877 7 910 10 860 10 911 5 715 10 10 40 438 50 714 50 434 6 712 1 10 882 5 896 5 540 5 507 1 898 20 727 5 750 904 5 905 5 455 10 638 3 840 2 419 100 549 5 640 1 927 4 889 6 890 5 708 5 47 < 10 650 ' 577 Shares in ledger. 43 15 50 100 T 10 10 26 755 6 5 13 2 100 6 4 11 15 5 20 10 Haines 1 1 40 1 1» 45 10 10 5 20 100 100 100 100 100 25 100 100 100 100 100 50 D«) Do Do Do Do Do Do Do Do Do ^ Do Do Do Do Do Do ..W Do Do Haines, A. M INVESTIGATION OF NATIONAL BANKS. 253 V —Mar 20 1S91. Amounts due to national banks. Keystone National Bauk, Philada., ' ' Cr. 1 Nat. Bank, Batavia q^^il'Sj Washington Nat. Bank, N. Y i' 074*04 Manavuuk Nat. Bank, Phila - ^'V^^^ 1 N at' Bank Norristown, Pa -' ^ Stcelton National Bank 9 56 Cbesttr National Bank . 1 1 n 77 Second National Bk. N. Y - ^,\\iy. H 10, 573. 47 I.— March 20, 1891. Duehills outstanding. Keystone National Bank, Philada., Cr. ^ ,,.^ $760.22 No.14477 359 Qg \iyi ;;;.";;:;'..':".:.*;;".!' 1,037.05 1440U Q QQQ ]^^l}y ;;;:;:::::::::!!:"!"";;";;;";."- 1; 193.94 14483 J^ 14484 ^'g^ 1 ^^g'g 1> 812. 90 C. H. settieni'ent runner's noon exchange, Mch. 19, '91 ^^'n^'tt No. 14487, Mch. 20, '91 ^^'^ $43, 701. 51 G.—Mar. 20, 1891. Amount due State hanks and hankers. Keystone National Bank, Philada., Cr. Carolina Sav. Bk., Charleston, S. C ^lol"!? Reed, McGranu & Co., Lancaster, Pa tnkok Crane, Parris & Co., Wash., D. C 2,bW.6iy 3,170.02 D ^Mar. 20 1891. Deposits made March 'JO, 1891, in account with the Keystone National ' Bank, Philada., Cr. .J. D. Laws $^.50 Benj. Seiser 05 Geo. C. Leupold -^ ^o Mrs. E. R. Freeman ^ ;^'^ City treasurer M,lbJ.&i 29, 240. 67 E— Mar. SO 1891. Certijicaies of deposit outstanding. Keystone National Bank, Philada., ' * Cr. No. 585 SS P3|^ :4. """ 1026." Mrs.* Bridget boherty 1^ 1509. Mrs. E. R. Freeman ^^ No number ^^^ * «„ No. 1560 ili'^ laSL C.A.Campbell ^^ 1658. C. B. Stoy ^ 1980 ^ 2345 ^ M70 '^'^ 2385 ^-^ 2473 ^ 2776 ^ 27g4 - - *'^' 2786. Milbourne McDowell J^ 2791 ^^ 7, 971. 91 I 11 t '1 ^ \i 254 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 255 I I M i ijl Schedule A1. — QtiarUr ending Mar. 20, 1801. — Bills receivable in the hands of there- ceiverof ihe Keystone National Bank of Philadelphia, Pa. No. 1 2 :t 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2U 21 22 23 24 25 26 27 28 29 :to 31 32 33 :54 35 36 37 38 39 40 41 42 43 Maker. L. L. C»ne (Santa Clara, Winn Co.). M. 1>. Loevv H.B. Driver Cliiir!»'8 Lawrence .. Van Dyke iV Conip'y , James Kennedy ... . P. Wallace James McCorniiek. . 44 45 46 47 48 49 50 51 52 53 54 55 C.^ C. liippinrott... W. Searborou<>li H. F. Atkinson & Comp'v. H. B. Driver G. Byron Morse Clias'.E.CJlent worth Edwanl Stewart Morris L. Lessly . . . Endorser. L. L. Cane — balance M. P. Loevy, E. P. Goodman. H.B. Driver B.M.Goldberg.... Geo. M. Vicker Jas. Keunedv,l)re8t., Atkin.son Bros. P. Wallace Keystone Watch Olub Co., Atkin- son Bros. I • • ■ ■ a VH.P •••«•■ •••■•* do Date. Atkinson Bros. W.T.Shaw Jolin Smith H. W. Kelsev Willis G. Hale W. (!alhotin , John I. Car berry James N. Elliott James L. Allan John M. Driver Alfred Hindle Kobert Cams J ames M organ Robert Cams James L. Allan S. E. Packard, agent. B:arvey Filley & Sons. S. E. Packard, agent. S. E. Packard, agent. William H.Brown.. James Morgan D.L.Drew S. E, Packard, agent. Frank T. Primrose . . Frank L Primrose .. Robert Cams Charles McGlade . . . William H. Moyer . . James L. Allan Charles McCrlade .. Frank I. Primrose . D. I. Tlioinpson Frank f. Primrose . Charles .McGlade . . William H. Moyer. William U. Hutch- inson, et al. Frank 1. Primrose. Charles McGlade . . William H. Moyer. Thomas W. Dickson Jno. :M. Driver, H. B. Driver. G. Jiyron Morse. . . AV. ( alhonn Edward Stewart . . C. A. Thompson, L Hayes, treas. AV. F.Shaw John Smith H. W. Kelsev Willis G. Ha'le John Hayes, treas.. W. S. Wolford do Faulkner & Allan.. John M. Driver ... F.A.Mitchell Robert Cams , James Morgan Kobert Cams , Faulkner & Allan. H.E.Pa••*••< Chailes Zane William M. Stuart . Aman 0(t. (Ml Worth- less. Julv 'JO, "91 July 21, '91 May 22, "91 May 23, '91 May 24. '91 May 30, '91 May 18, '91 Mav 18, '91 Mav 19, '91 May 20, '91 May 20, '91 DeniHud ... do 675. (K» 1.490.00 Maurice Landauer. . C.Haw D. L. Drew James M. Batters bv Dell & Jos. C. Nob- lit &, Co. G. W. Marsh D. L. Drew Horatio G. Kern John LPyle E. C. Riihnioud hraim Youuj; »rtin Burke March Jirownback Stove Co. W.W. Wallace T. Hudso^ J. McCulloujjh Mcllvain & Co J. F. Vanleer, jr Isaac H. Evans H. G. Irvine Preston Price, part pay't. Morris Spackman C.T.Davis Alpha S. Delussa F. Strata & Son Rich'd S. CoUuni W. S. Emerson H. Heilbronner Tho.s. Little diSon.... Kirk Johnson & Co. . . 0. 1^. ^uiin ............. Thos. Betts A. Vanier Joshua Jiartley Jno. (). Bowman Jas. Hart F.A.Davis '. Endorser. J. F. Portuondo . Ephraim Young Jos. Burke Date. 1. 15, '91 11,17, 90 12 20 '90 Jas. Dickson I l] 19/90 Central Market Co . . 1, 20, '91 Wilmington Dental 12,20, "90 Co. i John (ireer Ephraim Young . . J. F. Vanleer, jr ... John (Jreer L.W.Walsh Henry McHugh . . . Maturity. I Good, Doubtful, ^"'th D. Oram Young . . . C.T.Davis...:.... Alpha S. I)ehi8.>.00 |. 4, 4, '91 50.00 .. 4, 9, '91 3.000. J) ;.. 4. 6. '91 4(5.44 .. 1. 5, '91 4. 8, '91 2, 5, '91 4, 8, '91 12. 3. '90 4, 6, '91 2, 6, '91 4, 9. '91 6,28. '90 3,31, '91 1, 7, '91 4.10. •91 12, 8, '90 4,11. '91 2, 4, '91 4,11. •91 I '2, 10. 90 4.13. •91 3. 10, '01 4,i:{. '01 12. 9, '<.M> 4.12, '91 12, 11, '90 4.14, '91 1(K). 00 75. 00 133.00 40(». 00 113.40 50. 00 ].'»0. 00 208. 25 100.00 1, 3'. (0 100.00 I Schedule A2— Quarter ending Mar. 20, 1891.— Bills receivable in the hands of the re- ceiver of the Keystone National Bank of Philadelphia, Pa.— Continued. No. 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 Maker. Endorser. E. R. Bryan Quniton Corwine . . Abr. B. Paul W. H. Jones W. W. Ker Vicente Poi'tuouno. F. Strate&Son.... Geo. Myers, jr C. M. & R. Tompkins. Ivnn Muller B. F. Hanc« C. M. & R. Tompkins. H. T. Morrison &. Co. . Gus. A. Muller C. W. Gerkie J. Gallagher Thos. Leary W. H. Hahn Jas. L. Brown H. Heilbr.00 255. 15 300.00 2.")5. 15 25. 40 .'>5. 2.'» 290. (K) 125.00 280. 00 120.00 200.00 m A 260 • •■< INVESTIGATION OF NATIONAL BANKS. i! ' ■ 5 j ' 1 i J . 1 , n ' 9 ! \ ' Schedule kZ,~quarter endim, Mar. 20, 1891.— Bills receivable in the hands of the re- ceiver of the Keystone National Bank, of Philadelphia, Pa. -Continued. No. Maker. Endorser. SfKJ A.W.Turner T.J.Dunn & Co.... 304 M. Tofts ....do 365 I). S. Simmons do 300 J. B. Dumphy Dairyman's Sui»ply T. J. Dunn & Co . . . 367 IIarr(»lHon Bros. & Co . 368 J. A. Wilson E.J. Martin 360 Allen, DiimaH & Thom{)H seiit to other banks f.»r ,;ollection. and charged to them lM.oliug Cbas. O'Neil... Jas. R. White do C. H. Kendrick J. G. Kamsdell R. Cams Central Market Co H. H. Yard J. A. Wilson , Jno. Casey ITenry McHugh . .' Jno. N. Driver Jno. Gallowav , W. A. Gearv". Phila Towef Sup. Co H. (irahain so( iatiifu, etc. — Continued. Mar. 28 28 29 29 30 30 31 31 Apl. 1 1 1 1 1 1 1 1 1 2 3 3 3 3 4 4 5 5 5 5 6 6 6 6 7 7 7 7 7 7 7 9 9 9 9 9 9 9 10 11 11 11 11 12 12 13 13 13 13 13 13 13 13 14 15 15 15 15 15 15 15 15 16 16 18 18 18 18 18 18 Wanamakei- &. B H. Van Biel & Co Sea Girt L. & Imp. Co E. Young W. J. Jackson & Co . . Henry Baunner, jr E. D. Miller Thos. E. Wauvan A. H. Butterworth Excelsior Hasy Co Thos. H. Parks Jno. Love Noblet. Bros. & Co Jacob D. Lit B. K. Esler W.E.Allen Chas. W. Glenn, sr J. H. Hathaway uck W.B. Price Ed. C. Hill Wanamaker »fc B H. Van Biel & Co SeaG. L. & I. Co E. Young R. A. Jackson Geo. AV. Clothier Rich. Miller , H. H. Yard T.J. Dunn & Co Ex. Har Co H.H. Cleverly Jno. Love D. J. C. Xoblet & Co Le(m Isaacs & Co Phila. Towel Sup. Co ; H.H. Yard I Jo.s. Seddon & Co ' E. S. Bartel & Co i Jno. W. Ward 00.00 ' I 100.00 100.00 450.00 I 181.30 i , .500.00 I 500.00 250.00 ' 268.92 171.00 i 200.00 42.5. 16 1,000.00 t 500.00 345.00 293.45 2, 000. 00 210.00 175.00 5, 000. 06 5, 000. 00 5, OiiO. 00 1, 500. 00 366.66 756.66 200. 00 3,000.00 i56.'66 400. 00 300. 00 150. 00 269. 81 475.00 666. 66 252. 62 250. 00 510.00 '3,' 327.' 42 600.00 3,066.66 468.78 100.00 380. 00 500.00 175.00 12.'). 00 50O. 00 100. 00 1, 482. 50 2, 500. 00 1, 586. 76 1,500.00 425. 50 129.92 720. 00 3, 063. 02 504.80 500.00 247. 33 800.00 ?:■' 262 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 263 SCIIKDII.K H.- •Qnar(€r enil'nnj March ;?/?, As")/, hllh recnrablc hi the hand^ of the Cleuring- House Jsmciai'ton, ilv. — Contiuucd. SCHEDITLK H.- ■(Jiuirtn' oidhiff March W, ISf'/, hills rcvchahh- hi the haiidx of the Cleurtng-Moutsc AntfoaialioH, etc. — Con tiiiiuMl. Date due. ^■1 1 ''I ■It i .1 \ :t. i it 1 ! f 1 i Apr. May Apr. May 18 18 20 20 20 20 21 21 21 21 21 21 22 22 22 22 22 23 23 23 23 24 24 24 25 25 27 27 27 27 29 29 29 29 30 30 30 30 30 1 2 2 2 2 2 2 2 2 2 1« 3 3 3 3 4 5 5 5 5 5 5 5 5 5 5 5 b 5 5 6 6 6 7 8 8 8 8 8 9 9 F. "W. I^awrence W. IJ. (lr«'«M- S. Artlmr Love, treas Jiio. B. l>yott W. H. Meyers R. Hnzar({ W. J. Jack80u 6c Co 0. (J. ClenuiHT H.VanHeil & Co W. J, Juiiksou & Co S. W. Montgomery R. Hamilton 1. Taylor & Sou McMiillin H. W. Kelsey, treas B. ¥. Banes Jno. Truitt Mc Bride Bros B. K. Ksler J. O. Bowman W. J.Kollv R. W. St«M'l»' E. Sattertliwait J. M . CronuTieux Rich. M iller J. Breiscli G. W. Keudrick, jr B. F. Bam'8 G. W. Clotliier L. K. E.sHty, M.D H.Van Beii • f avi«. treas Guy C. Walraveu, trust . . .' S. Bunting & Co , H.J. A- (J. R. Cramp ! B.K.Esler I H. P.Connell ! W.S.Wolford T. Henry Sweeting ! Boughton 6c Willger C. Henry Marshall i>* \j* xarr. •....-.*•••••.•, H. H. Bingham Jos. H.Clarke End. J. W. Boughton. CrOOd. $200.00 236. 44 225. 00 1, 000. 00 200.00 200.00 1,000.00 1.500.00 5, 000. 00 1.500.00 H.McHugh Jno. (Jreer McFadden & Co C. H.Kitler Phillip Lowi-y , AiiH. B. Patterson R. A. JiM-k.son I G. Kamsdell H. Van lJeil& Co R. A. JiH-kson (i. E. Dearborn R. H. Goitlon, treas I. Tavlor &' Son Chas: O'Neill , H. W. Kelsey, treas I. W. Pepper , Kyle, B«^rry Sc Co., Liv . . M e Brior 2, (MW. 00 (J. W. Clothier 700.00 J. McLaughlin ' H.Van Beil & Co 1,100.00 R. C. Hon- & Co :{20. 00 Pat O'Neill , 1,200.00 H.McHugh ■ G. J. Conly j 350. 00 Phila. Towel Sup. Co ' H.McHugh I Chas. O'Neill 101. 50 J . O. Bowman ! J. Craig & S' HcHugh $654. 74 1. 952. 56 2, 000. 00 1, 080. 00 1, OlH). 00 800.00. i 300. 00 I 21*. 00 551. 80 401.99 5.50. 00 366.50 475. 00 752. 49 2, 000, 00 1, 000. 00 252.02 Worth- lees. 1 1,875.00 3.'>0. 00 ••.••• 2,209.87 100.00 1,063,83 500.00 101,50 635.33 250.00 111.88 420. 74 712, 18 202. 2:j 317. 16 650.00 May 9 9 9 9 9 9 9 11 11 11 11 11 12 12 13 13 13 14 14 14 16 15 15 15 15 15 15 15 18 19 19 20 20 20 20 20 21 22 22 22 22 22 23 23 23 23 23 25 25 25 25 25 25 26 26 27 27 30 30 2 June 2 3 3 3 5 5 5 5 6 6 6 8 8 8 8 8 8 8 W. Petry Jacob C. (-assel J. J. Pyle Vicent«! Portuondo U.S. Waite Thomas Little & Son U.McNeille A. S. l)e Li.sse A. G. Clemmer E.S.Pooley Jesse W. ( Jerhart Ho>vard A. (Hiase Hall & ( JaiTison Hei*man Wendall W.H.Mitchell Mrs. H. G. Schwartz Bradford Hill & Co C.C.Tarr W. J. Simmons E. Satterth wait John Connelly D. M. Stackhouse Sam'l Harrison, jr., 6c Co... B. F. Banes Wra. Petrj' Madam L. Vauent Viciente Portuondo Jno. J. Pyle W. W. Apsley, prest Jno. ConiU'Uy Jas. Riley Geo. Fox" S. Kirk Patrick G. J. Richardson, ex. . Peoples per (pt. paid) R. M. Braithwait Mad L. Vaunt V. Portuondo J.J. Pvle E. C. Rind «fc Co H.McHugh H.J, &G,R. Crump , Geo. Fi)x A. H. Mot>re I). 6c J. (\ Noblet 6c Co, (pt. ]>aid). K vie. Berry & Co \\*.R. Murphy P.J.Pattou -■- J. G. Ramsdell N.F.Evans Excelsior H.Co (t. B. Haines R. M. Braithwait & Co Mme L. Vaunt (pt. paid) Wauamaker 6c B Pooley Bros Geo. W.Oliver Isaac Taylor & S A. H. Moore A, R, Thomas C.H, Keudrick J, W, Balcora do A. R. Thomas Tuvmley Hunt 6c Co A. R. Thomas (i.e. Hetzel avis I Marv P. Loyan Bem. Seiser : S.C.<;askill M. N. vvo(m1s ."";;| G. E. (^unimiug '. David < iarrison .1 C. A. Bradeuberj: I H.H.Taui....:'. ;:| J. C. Lnras ' End. Good. H.J. &G.R. Crump., Geo. E. Dearborn H. H.Yard A. H. Moore , , do j C. H.Davis, ]tt. paid., I M<"Lean \ Kendall... 1 Nelson F. Kvans : Pooh'v Bros I H.d.k I. It.Ciump... I G.C. Het/el&Co.... ' J.J.Pvle ! H. Fillev & Son N. S. Evans AV, J..ra«'kson lioyd, W. & ( ;o G.C.Hetzol& Co.... I. W. Bon«rhton (J.DearlMMii N.F.Evans C. Kondriek F. W.Walton & Co... C. B. Iteesp «fc Co J. A. Wilson K. C.Hon Ex<'olsior H. Co S. Bnntin;; Sons & Co H. J. &■ (J, K. Crump. . H.W.iJay A. H. M«K»re Kendriek & Tramer. . H.M.Hugh N. F. Evans H.C. Ball do Doubtful. Worth- less. $1,200.00 1.565.87 I. 8, 150. 00 50.00 125.00 8(K). 00 2,400.00 2, 000. 00 i55. 66 200.00 2,500.00 1, 000. 00 3, 500. 00 5, 000. 00 1, 000. 00 1,650.66 2. 500. «10 2, . 00 5, 000, 00 000,00 90, 00 800. 00 1.000.00 250. 00 220. 00 400.00 950. 00 2, 000. 00 2, 000. 00 50, 000. 00 50. 000. 00 293, 703. 80 W.y. .7/ir'.!""''"''7./^^",!^- ^'''' ^''^^J--^''*'f^^ other than bilh receirahle, in the hands of the reeetrer oj the Keffstont- Xational Hank, of Phihuldphia, Pa. Date. 18- Deaeription of assets. Good. $3.98 Overdrafts : Arthur. R, A Askiu, H Amberlv, (leo .'. Brady, H. d .'!.".*."."!.'.".'.' Bardslev, .John Battersirv , J, .M .*!.".".*.'.'."!.'!!! Barron, John B ra <1 fo i( 1 . .7 . M '.'...'.'.'.'.'. Beaeh, House Billen.C.K Bosbvsiiell.O. C ". I w 70 I Brown, H .;; | **• '" 1 Brown, Chas \\ Bowman, H. L., jr ■■.V"..V...V".V.. Doubtful. .05 4.00 $149. 99 331.00 i. 287.71' 34, 088. 52 Worthless. 150. 78 4, 879.42 &;> 27.69 181.00 18,30 't;. INVESTIGATION OF NATIONAL BANKS. / 265 SciIKDCLK B.— Quarter endinff Mar. :*0. fSOl— Assets, other than Inlln recrirabh, h, the hands of the recdrer of the hei/stone Xational Bank, f/r.—CoiUiuued. Date. 18- Description of assets. Overdrafts— Continued. Buckheister, Fannie Burke,P,C Bureau ('ar Co., No. 1 Crawford, L, F Catherine, J. W Cams, Robert Canby, (reo Collier, Sarah E Callioun, Wm Collum, R. S Cumniings. (i, E Crump, Sarah R Crump, H. (J. & G. R Crump, John Davis, Edw,T Dengler. D.H Duskon.Jas Ellis, H.C Greer, J, N Gliple, Fre. 29 1.00 .23 4.51 .05 21.77 44.85 36.03 1.04 9.07 2.84 2L00 752. 84 4.00 .75 70. &5 20, 46 28.74 19.80 86.00 46.19 1.75 378. 25 .56 1.00 4.67 9.84 14.76 $4,900.00 1, 467. 33 251. 89 39, 32 1. 198. 85 7.811,33 3. 772. 94 499.37 6, 078. 75 270,53 10, 359, 29 11,744.94 5, 309. 98 2,655,82 676. 14 643. 34 58.50 535. 35 2, 146. 26 661.80 238.96 h .-!i ti 206 INVESTIGATION OP NATIONAL BANKS. I SoilEiJUl.K U.—Qiiaytcr ciidhuj Mar. SO, ISOl—AxHeis. othrr lh4tn hUla recHvuhh, in hand-s of the receiver, of the Keyxfone Xatioval Hunk, <7(;.— Continued. the Date. Description of assets. 1»- OvHrtlraftn— Continued. Vion, Jos Vineliiiul AV aiiamaker. M. B W'aiianiaker, J no., per Walker, W Walker,R.H Wenrick.O.K Peals, Hernion Paul, D. S Penii. :!klat. Elec. Co Parker, Nellie C Pine, Isaa<' S Raw, Wra. H. &Co Kankin, Frances Uauiborf^er, .\.D lleniington, Pyne Kankin, A.W' Ki«l(lle, J.O Roberts. J. 0. K Smart, Terrence P., treas Starces. Jess*' W., jr . Sanlord, F. If Sayres, Jas. W Shaw, J . H., ni'g'r Santa Clara Wine Co Saxton, D.B Steelman, J., agt Shed wick, Geo. W Stewart, (i. W.. treas Stewart, David Simpson, John Smith. H. Oscar StileH &. Fox Shirley. J. K Snowdcn. Wni Sh«K"nakcr. Mrs. C. K Schumacher, IT. C Southwell, CM Scliuldt.J.F. W Stolt /,. Jacob , Talb«.t, X. W Pliila. Hiirness SujtplyCo. Toddintftou. F. J. & Co Thouii>sou. Anna K , Trcnholui. Mrs. A.H Torava. Jo«ti Thompson. (J. A Van'devcr. J. M Watts, H.l) WalUw'o, Jno. A , Good. i:t. 42 5.29 Doubtful. .29 89.66 .10 "'.08 5.24 15 Wear.J.R. &Co. W«'bb. Will. C... West, ('has Wilson. Jos. A Wliiting. F. H '!!".'.'.".'.".'.!". Wood. C A., trustee Petty in H to O ledger, not aide to tind record Sargi'iit. \V.,.jr Auiouuts due bv banks: Tnulesmen'kNat. I{k,N.Y Chase Nat. I5k. N. V Citizens' Nat. Bk, Baltimore National JVk Commerce, ilostou . . .' National State Bank. Camden. N.J Del. ( :o. Nat. Hjiu k, Clu.'ster. Pa Frt. Dearborn Xat. B'k, Chicago, 111 J, 1891 — AhhvIh. oihrr than hiUs rereirahle in the hands of the receive)', etc. — C/Oiitinned. Date. 18— 2, 11, '91 3,1 J, '91 9, 13, '90 2, 13, '90 5. 27, '90 9, 19, '90 10, 29, '90 2. 28, '91 2, 11, '91 3, 11, '91 3, 17, '91 3, 3, 3, 3, 12, N(»v. Feb. Mar. Jan. Sept. Jan. Sept. Mar. 12, '91 19, '91 18, '91 19, '91 15, '90 15, '90 11 11 ],'91 17 3 20, '90 13, '91 13, '90 18, '91 19, '91 13, '91 6, '91 13, '91 Description of assets. Good. Doubtful. Amounts due bv banks^ Continued. Farmers' N'^at. B'k, West Chester, Pa Union Nat. Bank, Wilmington, Del N. J. T. Af L. D. Co., Camden, N. J Camden Safe De]). Co., Camden, N. J. (2,594.34). (Jash items from dep. made 3, 20, 91 : Depositoling Memo.. Wm. Calh(»un Memo.. Wm. Calhoun, end. D. P. S. Nichols Do Note, memo., J. L. Galloway, end.W. Calhoun, jr. Memo., J. MctJonnell / '. . . Memo., AV. t^alhoun Memo., (i. L. Harvey Do!!!!]! !!!!!!!"!!!!" ■"";!!!!]!!!!!"! Do Check, J. Kimble, build, account, end. J. Rey- nolds, jr Memo., (i. W. Marsh, pres Do Do $494. 87 2, 205. 29 205. 74 679.04 92.50 262. 50 178. 66 10, 000. 0(1 9.43 14. 00 83.00 23. 40 338. 58 31.50 15. 30 374. 44 113. 79 6.05 56.00 11.75 28. 26 45.00 200. 00 7.40 108. 80 335. 95 43.50 82. 00 90. 00 26.00 60,00 74.00 22. 25 8.00 7.50 158. 80 37.00 41. 8. 219.50 443. 42 220. 22 Do. ,00 ,00 25.15 250. 00 32. 06 75.00 190.95 Worthless. $1.52. 12 252. 06 KM). 00 1, 476. 5(; 299. 67 4G1. .52 20. 00 .5.60 20. (K) 50. tH) 60.00 261.63 25. 00 166! 6() 140. 00 202. 2.r 125. 00 250. 00 1 15. 00 200. 00 156.00 ■,. Jl ■A $162. (H) 98. 50 7.68 250.00 . 268 INVESTIGATION OF NATIONAL BANKS. >i(iii:i>i'LE B.—QHarlir fh(li»!f March 30, /SOI— Assets, other than hilh rcceivahle in fhs hands of the reveirer, etc. — Continued. Date. Mar. 16, '91 19, '91 Dec. 16, '90 Feb. 2, '91 Mar. 20, '91 20. '91 Mch. 20, '91 Feb. 18, '91 Mch. 20, '91 9, '91 9, '91 9, '91 9, '91 Description of assets. Cash items — Continued. Memo. G. W. MaxHh, pres Do Note, H. Patterson, end. G. W. Marsh Receipt for poHtal note to be renewed Check, J. A. Kelly &. Co. (cashed before bank closed) Check, Win. J. Baker (cashed before bank closed) . Check Jacob Meyers (cashed before bjink cIohhI) Memo., 1 teller snort in settlement Check L. Dolnias, Chester ($40 rasli attached). Check, memo., J. W. Catherine, jr Do Do T>n UO ••••---...-..-•...•.,...,...,..,,,.,., Do Country check held from 3, 19 (sent out 3, 20) . . Check returned from Camden, Nace & Swartlei Cash, $14,168.58 Sundry memos., advances of salaries to clerks. Casli on hand, 3, 20, own circulation Mut Hated coin Counterfeit uotes (2 $10) Fracti(»nal currency Fractional .silver ][[ Silver dollars Gold coin [[[ United State.s jjold certiflcates, 42.009.36 Exchanges for (J. H.. 3, 20, lield by them Traction bonds held by C. H. a.s collateral Sea Girt and Sjiring Lake stock Furniture and tixt ures 5 per cent reden»pt ion fund Error in item $97, a former schedule G, should be97ct8 Good. Doubtful. Worthless. $45. 00 50. 00 700.00 $.97 I. 179. 87 43. 08 239. 12 200.00 152. 0-2 '75. 07 *2, 319. 18 *285. (K) *6«'0. 00 *35. 11 *2. 200. 00 1, 072. 01 11.36 121.01 577.46 1, 000. 00 Total ($909,848.90) 19.72 1, 300. 00 6, 000. 00 3, 575. 50 30. 000. 00 70. (J05. 46 100, 000. 00 $94. 14 20.00 i, 250. 00 .500, 000. 00 10, 000. 00 96. 03 ■ 276, 225. 57 i 624, :M1 . 19 9, 282. 14 * To be charged to city treas. account. Beport of the condition of the Keystone National Bank, March :^0, ISOl. Assets. Total. Assets at date of siisjten.sion, viz; Bills receivable (schedule with this report), S<-hedule A Other assets (schedule .with this reuort), Sched uleB .....'. Excess of bonds over circulation .«. Total assets at date of suspension Good. .$811,662.51 $294,380.45 909, 848. 90 . 276. 225. 67 .5,000.00 \ 5,000.00 1,720.511.41 575,606.02 Doubtful. $372,651.29 624,341.19 Worthless. $144, 030. 77 9, 282. 14 990,992.48 i 153,912.91 Estimated actual value of doubtful and worthless assets, 20 per cent or $230,181.07. Liabilities at date of snspctmion. Individual dopo.sits (scliednle with this iei»oit), C $1 300 513 07 Deposits made March 20, D * 29 240 67 Certificates of de])OHit (schedule with this report), E ... ...... ... "7' 971 91 Due to national hanks (schedule with this njnut), V ...... ....... ... '. U) 573. 47 Due to other hanks and hankers (scluMlule with this report), G . ] 3' 170 02 Due clearin«?.honse loan account (schedule collat.), H 334' '>86 60 Dividends unpaid , '" 6,' 120.' 00 Due hills outstanding, 1 43 701. 51 Total. 1, 735, 577. 25 KOBEKT M. YaRDLEY, Beceivcr. INVESTIGATION OF NATIONAL BANKS. 269 ^ Exhibit 2, of May 5, 1892. Schedule C. List of depositors of the Eei/sione National Bank of Philadelphia, Penna., and amounts due to each as shown hy the ledgers, March 20ih, 1891 y the date of suspension. Adams, W. H. & C. E $25. 54 Anspach, T. J 98.89 Abel, A 21.83 Acker, T. A 93. 63 Adams, Ehenezer 9. 63 Applegate, J. E 1, 894. 89 Armstronj; & Vance 2. 11 Austin, K. 11 537. 95 Arthur, R., & Bro 456. 97 Altcmus, S. G 96. 74 Afruew, H. L 282.74 Allen, W.P 115.80 Allen,J.L 14.79 Alexander, \V. T 79. 73 A hern, John 4, 877. 59 Allen, A.G 124.54 Alcock, E.C... .571.50 Alard, H.C. De 1.78 Allen, .T. Alfred 100. 05 Alcock, A. B 100. 00 Ashraead, A. C .327. 25 Annear,S 226.12 Anderson, D. L 1. 12 Apsley, W. W 61.55 Anderson, Samuel 586. 28 Anderson, S. L Adams, C Aldred,H A8hhrid«5e, E. A Anderson, A Ashton, Kate Allison, A. A Arni8tron<^, R. H Aubrey, J. R Alexander, Lilian Atwoothe,W. F .21 Bonzano, M. G 2. 05 B r o w n . W 60 Bowman, W. O 3. 98 Borzell, ChaH. VV. & Co 58. 14 Bogan, M 79. 07 Bonnet, Chas. E., < reas 2. 00 Bosbvshell, O. C 4, 200. 00 Brown, ('.A 4,2(X).(H) Brnee, .lane 1, 085. 98 Bnrke,C 488.04 Bnist, James 32.85 Burr, Anna 104.42 Bnrdette, R. J 17. 65 Blum Bros 24.20 Bunting, Sanniel & Sons 6^ 272. 30 Bulkley, Ward «fc Co 1.81 Butler, (leo. W 1. 12 Burehard, Henry 2. 48 Buck, Jane .....' 2, 000. 00 Bruner & B<'i.shlag 6. 93 Burke, .James 2. 97 Bryan, J. G 5. 67 Challenger, T. E .34 Chambers, D 81.12 Carr, Peter .13.98 Cassatt, Mrs. A.J 782. 42 Clark, Fletcher 100. 32 Cartledge, T 4. 60 Chandler ife Scheetz 204. 72 Clark, W.E 8.50 Clark,J.B .93 Crawford, R 414.19 Crawford, M . E 62. 31 Craw fell, .1. H. & Sons Chandler, R.G Carn.ll.J.S Cha])man, .7. L Chapman, M. J Carpj'nter. (' Clare, T.M.iV Co Crabtree, Dora L Carti'r, Ida M CanHeld Mfg. Co Cadwallader, M. P Chamberlain, W Chad bourne, Hazeltine& Co. Clair,J. R Casvsidv, J (dm P Cla.vbangh, Mrs. E Carpenter, E. K Central Market Co Chew, J. E CrcKson, Ge(K V Cresson, F. E Central Electric Co Cresson, M. B Cleverly, H Central Savings Fund Crew, A. B Cln'ster, H CliOVn-d, Scott & Lawtou ... Clitlord, Eva M Crispcll, II.S Conlv, (ieo. .7 Collier, C.B Choate, Chas. A Conrad Bros Coxe, J Co}»pnck, M Ch)thicr, (ieo.W^ Conly, Chas.C Cohen, S. Sidis Cooper, .1. E Conly,M Consumer's Marble Co Coogan, Uani(d Cochran, Henry S Coates, H Cotter, J Cooling, M Coward, H Connnereial lee Co Crombie &, Ferguson Cottrelly, Matilda Coony, .lames H Cotwell, C. K Cooper, W Cowling, .1 Cox,M-.. Co(mey, P. J Cooper, E. M Cox, Samnel P Crump, .John Cnmmings, S Cunmiings, .John Currie, Anita Cuulitle, (leo. D Crumi>, G. R $2.86 .33. 21 .3,'v58 289. :^ 76.20 .11 3.07 2.30 22.90 2.74 105.00 53.39 6.24 10.00 1, 766. 92 7.44 3. 93 101. 92 ,327. 14 31. 32 .3, 312. 36 1,481.94 32.50 1.81 21.63 239. 56 742. 73 25, 430. 90 11. 31 .3.07 329.94 82. .59 .5. 8.~> 25.16 40.71 412. 5^1 115. 14 3, 577. 87 161. 83 1, 160. 02 387. 30 8.90 35.94 29.26 40.00 478. it' 267.81 291. 89 .28 25. 61 173.61 63.19 14. 95 17. (K) 4,681.81' 2.31 .19 .18 .45 345.80 438.61 200. 00 ll,00i».2l 7.9:5 9. i:'. 51.9.'. 239. 2.') 10, 000. (M) Clyde, J. J Dalby, J. E., treas Drayton, H. , Darragh, M. L Datesman, Geo. E Davis & Harvey 1 )a vis, F. A Dalmas, Sophie Drake «fc Strattou Davy, Samuel Drake, W.S Dalby, J. E Davis, Ed., supt Davis, J. H Dallas, T Davis, W.J Dakin «fc Petry Davis, F. A., treas Darling, C Daly,M.P Dexter, E. M. «fe Co Delaney, J.J Degenberg &, Ganserfc Dearborn, Geo. E Devlin,P.&F Dreka, Louis De Lissa, A. S DeMar,P Dean, H. L Deacon, C. R De Gran, M. J Dean, H. L. «fc Co Devlin, John Denny, C Drew,W.P Dengler, G. J Deuneler, Chas Deehan, James Deakyne & Pennypacker. .. Deane, A Deyoll,Z Dickson, Ida E Devine, W. J Dillaye. Blanche Dixon, Sally W Dickson, John & Co Dixon, H.P Dix(m, H.P.& Co Dilkes, Geo D'luvilliers, A Dixey,M.S Dixey, Charles Driver, J. M Driver, Chas Dollard& Co Douglas, Mary G Dore, Desire.. D(muH, A. B Dougherty, P Doherty, J. P. «fe Co Dougherty, Mrs. A Doerr.Chas.A Dunning, Stavely & Co Dollmer, Chas. F., treas Dunshee, E. S Dubosq, Frj.ncis P |>"nn,T.J.,J^Co Dunseith, James $21. 22 1, 124. 87 14. 72 .60 10. 83 315. 93 7, 431. 32 L83 26. 72 13. 69 190.66 1; 588. 30 315. 94 7. 49 .35. 21 .64 214. 29 •1,727..M l.(K) 1,100.00 370. 12 491.95 743. .55 4. 216. 78 <>")4. 75 1, 576. 80 1()9. 50 .95 ..51 201. 80 5.00 .81 1, 031. 23 . 99 .41 53. 37 401.27 1,139. .52 270. 08 .50. 34 1,. 585. 23 16.44 i .93 162.09 426. 37 394. 59 33. 57 924. 57 13.43 96.77 L41 L41 11.77 2.00 135.41 .11 129. ,50 972. 81 538. 95 498. 33 . 11. 87 3.54. 93 168.37 2, 230. 98 500. (H) 130.04 2, 552. 79 13.64 DutlV, Chas Dunn «Sr Co Durham, M Dye,C.R.C Emerson, W. S Evans & Battles Erskine, M. E Emery, S. H Evans, N.F Edwards, J. H Estel, .John Evarts, L. H Edmund, W. J E bersole, M. F Ewing, Alice B Eli, L. 1) Epij)hanv Sunday School Engle,A.D .* Ewing, Mrs. W. D Ewing, W.D Esler, F Earle,J.V Eisenbeis, Laura S Earey, Thomas J Empire Pub. Co El well, Rachel J., treas . ., Ecroyd, R.E Escaudel,W.S P^llis, Amos, 2nd , Edwards, V Emery, J. E., i^rest , Farrell,J.E Falkener, Mrs Faley,E Faulkner, A Fay,C Farrell, Frank Flannery, E Faulkner, M. B Faley,E.H Farquhar, J Farr,B.H Ferkeler, H Feller, David Fenn, Thos Ferguson, R Ferguson, C. A Freeman, J]. R Fence, S.P French, Wm.D Freeman, A. C Freeman, S. C Filley, H., &Sons... Fisher, Wni. J Finley, J. D Flickinger, H.W Fitler,C.H Fisher, W.D Field, .LF Fitzgerald, H Filter, E.B , Fischer, S. L Fi>r])es, W. S Ford, J. I' :... Fox, (ieorge Flower, A. E Fox, Ivan $460.22 138.77 250. 25 76. 48 L89 6.03 .75 30.91 500.80 30.40 .57 4, 160. 62 43.24 . 28 lOs! 64 4.17 13.55 L50 2a5. 36 306.98 L46 548.70 3.45 8a. 00 104. 37 169.11 3.69 45.00 128. 62 80.00 25.00 67. .50 .5.54 202.70 2.91 7.40 L39 L50 317. 26 89.22 108. 65 8.69 465.47 135.68 105. 74 4, 175. 81 79. .35 622.20 1, 643. 89 765. 86 300.00 1, 152. 93 431.81 350.14 93.63 125.41 - 6. 79 24.79 124. .55 502. 39 300.00 383.24 1,2.39. .55 25.52 200.15 77.58 836.78 i 272 INVESTIGATION OF NATIONAL BANKS. I^^^t of depositors of the Keystone National Bank of Philadelphia, Pen INVESTIGATION OF NATIONAL BANKS. 273 "k '.I ; Fox, Hannah Flowert, C Foster, Samuel Forepangh, John Fortcsciie, L ForKytli,C '///. ^'"»'«\y,M , Furness, L FiiUoway, J. V Fiiniess, J. F Furlonff,J.F Gray, H. VV Gage,J.G (iraysou, C Graham, S. (! Grant, H.M .'*'. Granlees, W. J., Mrs (irahanj. E. L Gray, .las Granlees, W. J Gratz,\V ;*. Galhi^her, K GJaser, Sam'l Gautsche & Son Gray,M. E [[ Garwood, S. S Gardiner Galloway, Wni \, Galla«;her, M * Gabell,G.T ',,[ Gautauerel, Mrs. E Graves, V Gray, M.D Garrison, David Granlees, H. V Gaskell, K. C .'.'.* Granlees, K., & Son Graves, O.B Graham, Jas Galloway, J. L * ] Graham & Son ', Gardiner, R. B - Gray, H. W., treas .' .' ." «age,C.S Gardiner, H. A Greenslit, E. A '.", Greenor, J. M ] ' Greaves, E. H ^erke,J , fierry,T Greer, John Glendenniiijf, H. M .'. Green well, John [ Gerster, Geo [[[ Geisse, L. W. C i (Overdrawn.) GJeason & Co Green, R.M.,& Co '....'. Gerry, L Gerrard, Mrs. A. L Green, !l Gre-jr.W.L [V]; Greene, C. P (ieary, W.A ." Greer, I )a vid Grimes,L [[ Ciilpiii,R Gillison, Christie & Lock- erbee D .. $1,039.92 Gibbons, R.Q Grimths,J.J Givin,W.J Gibson, Thos. .J Givin, S. R Gilmoro, Jas Gilmore, .F. C ... Gihhrist, W. W .... man, .s. O : Hayden, Wm I Hamilton, C.R I Hasselmau, N I Hancoek, J. B. &. Son I Hale, W. G ' Hartman, L. B Halpin, Rose Harris, T. M., &. Co .. Hawkins, F. H Harris, S. Clark Harris, Thos. W Hayes, J. Henry Hanan & Son Harland, A. L Hayes, Chas. E Harris «& Hend UK). 46 5.62 47.00 1.80 452. 31 772. 08 183. 05 17.09 2, 055. 06 289. .30 12. 30 3.09 2HH. 76 785.47 6.65 19. 67 514. 18 (>0.89 669. 70 25.68 7.61 156. 94 2, 974. 72 ..52 22.81 53.02 L69 239. 15 1.28 276. 6!) 3.26 139. fti 794.50 na., eic— Continued. $2,910.89 60.76 767.65 2L75 216. 53 76.77 1, 486. 1^ 783. 82 3.01 497. 44 27.77 4 12. 79 278. 19 576. 63 808. 86 23. 09 1,389.99 20.40 24. 23 1,0.51.63 954. 74 .32. 18 J)6.44 258. 62 91.67 27.5.00 a5. 98 394. 2<> 551. 24 .15 400.00 94. K2 238. (Mi 20. 30 117. 6> 1, 078. 20 856. 39 1, 030. SX 88.19 18.07 11.00 180. 00 11.07 897. 7:< 1, 303. 4 1 51.5-1 1.08 List of depositors of the Keystone National Bank of Philadelphia, Penna., cfc— Continued. as .. Henderson, J. D Hele, Martha D Heron & Nesbit Hetzel, Geo. C Hetzel, Geo. C, & Co Herring, W. E Henderson, Sam'l R Herohl, Chas. P Hess C'. F Hestonville M. *& ''i\ R.R. Co! Henry, H. S Henler Cutlery Co Heckeler, Rosa E Healy & Lupfer Hill, James E Hildrath, Mary A Hillman, Mrs. Kate 1 linch, Wm. E Hitchcock, Wm Hinchcliff'e, Geo. D Hillman, John F Hillborn, Chas., jr Hildebrand, H., treas Hinckley, John F., trea Hirons, Marv E Hill,P.L.,Anty Hicks, Robt Hickman, L. M Hills, Sarah Hopkins, Martha , Holbrook, R. M Howard's Sons, Jas. W, Hornickel, H. A llo]>per, Maria Howell, Francis F Holland, Geo., mgr H, rr, R. C Horr, R. C, & Co Horr,C Holli8,W. F.,& Co.... Hopkins, G.W Horter, L. F Howe, Frank, jr Hopkins, Jas. P Holler, Wm.H Hood &. Townsind Hopkins, Mrs. Kate Hobson, Geo Hoffman, Wm. A Ho8kin8,C.P Howland, Annie C Horau,Geo.S Hunter, Thos., M. D... Hunt,W.E Huber, John Y Huylers, J. G. Harrison, Hunter, John, agt Hunter, W.D , Hunt & Eaton Hunt, W. R., treas Hussey & Son Co Hyndinan,G. B Ivers&Pond Piano Co. Isaacs, Leon & Co Ihach. Franklin liwin, J. W JnglisOttoE.... Iiwin, (J.M... mgr. $336. 13 .,52 .322. 32 15.84 6, 471. 88 2, 534. 22 8.63 49.10 .24 537. 33 56.37 40.67 294.00 500. 00 19. 25 326.06 59. 84 516. 8S 72. .59 25. 25 96.26 1, 151. 44 570. 37 369. 45 .32.41 450. 24 470.07 306.41 310. 62 103. 39 148. 40 8.55. 17 4, 224. 59 1.52.21 231. (K) .61 219.11 .58. 82 .20 2.32.68 78.43 168..12 46. 95 1.24 13. 24 23. 91 30.00 180. (M) 1, 576. tK) 1.5.42 .30.26 352.50 258.05 ; 15.68 1, .332. 94 ' 402.88 46.21 i 20.00 8L45 402. .37 18.85 ' :^.79 154.74 514.80 I 46.40 .5.41 ; .07! 4.29 1 j Irving Publishing Co International Society of I Waiters and Bar Tenders. . I Jackson, J. T ' James, Thos. L j .Jacobs, a. E j Januvs, Frank Jewell, Geo. J i Jetireys, (4eo. W I Jenks, A. S Jermon, J. G .Johnson, John C .Jones, Mary .Jordan, Jacob R Jones, .1. R .Johnson, IL C .Jones, W. J .lohnson, S.J Jones, Rol>t. C .Jones, Mary H Jones, Jas. H .Jones, W. K Judge, P [][] Kauifinan, Chas Kahu, Saml. M Kramer. AV. J., agt Kampier, E KampcF.F Krager, R. L. (overdraw n). Kauflman, Jos. A Kaudman, Luther S ! Kemble, M. Virginia Kennedy, Matthew Kearu«'y, Richd I Kennedy, .Jos. P., estate Kerst, Jlenry Kendrick. Chas. H Kelly, Thos. J Kelly. Th(tH Kerr, .Jas Keys. H. C, treas Kelly, John A Kelly, .John A., & Co Kern, ijwvy A Kevs, JohnC Kelly, E.J KeystiMie Mortgage Co Keckeler, T.T Kennison, W Iverlin, Isaac N Keystone Mortgage Co. (div. fund) Keator, Bruce S Kellogg, Carrie J Kellogg, A. G Killian, Isaac Tvi tson, Louis Kingsley, C. A K^immel, M. S Kirk & Collins Kri venik & Trauner Kinnev, John King, C. P. «fe Co Kindried, C. F Kimmel, W King, Wm Kolischer, Theo Koshland & Stein 3792- -18 $1. 25 270.00 540. 05 7.5.85 11.3. 74 5.53. 25 85.33 40.45 184.88 45.64 316.56 439.82 16.24 2, 149. 72 590.63 .25 206.00 80.00 133. 96 788.19 558.00 270.24 27. 62 .523. 59 169. 27 358. 40 12.87 24.45 42.16 192. 48 6.70 482.09 112.70 1, 390. 30 726. 14 L43 58.51 12,177.95 6.69 485.55 846.^4 39.32 1, 076. 11 329.92 15. 30 12L00 10.00 473.08 13.49 194.00 143.06 311. 40 12.35 2.07 10L27 176. 62 3.78 1, 715. 94 49.60 238.40 26.10 217. 80 1, 758. 76 284.02 1, 400. 97 •M ^- •vv t 274 INVESTIGATION OK NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 275 J Ji I List ofdepositorfi of the Keystone National Bank of Philadelphia, Penna., c. 13 Kutz, H 812. 53 Kugler, Geo 464. 10 Kyle, Berry & Co 82. 46 Land, Frank G 1.62 Lamb, Walter 90. 31 Lamb, Jas. F 295. 56 Lauber, Chas 301. 84 Laws, J. D. & Son 727,21 Latferty, Jesse M 403. 81 Laird, Agnes 15. 00 Lawrence, Geo 100. 00 Lausch, F. A 4. 55 La Koche & Stalil 147. 79 Lackenby, Ellen 35. 00 La Ment, Clarenee 45. 88 Leer, Hattie (overdrawn) Lewis, J. E 111. 03 Lester, F. A 24. 95 Leonard, L. M .17 Llewellyn, W. H 1, 783. 79 Le Fevre. F. A 11. 98 Leskie, Harry B 21. 31 Leidy, Lewis C 19. 38 Lejambre, Henry 89.49 Lewis, B. F 137. 25 Lemon, H.J 86.88 Le Maistre, H. F 24. 06 Leouar«l, M. H 10. 98 Lentz, H. D 29.02 Le Conte, R. G 32. 45 i Leupold, Henry, jr 60.68 Lewis, Sarali C 13. 70 Leupold, George C 210.21 1 Lehman, V. B 251.70 Legal Tender Fraternity 160. 03 Liberty Lodge, A. P. A /. 328. 25 Lingle, J. M , 410.19 Linford, Chas 2. 27 Livengood *fe Lipscomb 120. 38 Lilley, James 474. 51 Litzenberg, Chas. H 5. 01 Linsley , A. B 140. 61 i Lindsay, Wm 500. 00 Libbey, C. P 500. 00 Logan, Mary P 122. 94 Love, John 748.67 i Long, John 14.42 ' Lonty, Kate S 75. 35 Long, Annie AV 14. 22 i Loeb, Joseph «fc Co 10. 50 Long, H H 14.48 , Loomis, I. L . 65 j Lockwood, Frank 191.89 Longstreet, John H 2. 19 > Long, James N 594. 70 Lucas, Saml. & Co 231.94 Lucas, Wm 107. 94 \ Luay, Hannah 157. .59 Lucas, Sum'l 265.97 Ludy, Jacob , 166.79 ! Luff, W^alter H 1, .567. 48 Lynch, Stephen 30. 29 McArthur, D 319.70 i Li8t of depositors of the Keystone National Bank of Philadelphia, Penna., etc. — Continued. McBride, Mrs. J. W , McBrido Bros Mcliurncv, David McClanc'Wm , McCardle, John , McCarthy, ElJen McCaulcv, Sarah McCall, James McCandless, W. J. & Co ..!! McCauslaud, Wm McCarthy, H.B '. McCaulcy, Chas. K McCay & Co McCaul, John A McCaddiH, J.T., treas M(("ltes,J.j:. & Co McClellan, K. W McCreedy, Jas McClinch, Dan MacCoy,A. W McCorinick, Jos McCormick, L ] MacConiH'll, A. A ' McCormick Harvesting Ma- chine Co i McCoy,Clias McCoach, Wm McCov, K. L McCullcij, Jas. P , McCune, K { McDermott, James McDimald, Joseph MX. 03 .61 5. 00 182. 45 101.33 5. 00 851.36 1.50 51.70 244. S8 20. 09 317..'>7 7, .53S. 5S 3. 24 49 02 243. 31. 666.27 104. 18 90. 00 132. 99 46. 32 1, 445. iio 27.61 36. 00 7. VH 74. 90 8.68 488. 18 5 75 69. 29 308.92 Raymond, C. W Ramsey, .1. S Read, Frank , Reed, Thomas B Rees, Chas. B., Sous & Co. Reynolds, J ., & Son Reeves, Abert A Reed,C.E Reilly,Wm.A Renuaud, M. A Reckefus, A. A Reeves, M. S Reichard, Mrs. A Reis, F. 8,, 1 reas Reichart, Ennua R Reed, Ennna C Relief Fund Order Amitie Reilly, Hu^h J Reiszner, I'rank Reinhardt. Sevilla A Reilly,Tho8 Re])jdier, Mary Riezler, Otto Ritson, Robt K'ielmiond, E.C. Co.,lini .. Kishel, A.C Rihlde.N Riilings, P.J Ki.32 3. 31 499. 61 1.58 250.00 429. 29 569.65 61.88 506.37 35.83 316. 28 505. 30 79. 70 672. 46 57. 00 19. (X) 10. a5 3, 395. 16 110.53 500. 15 62.91 10.1. 50 9.74 .45 75. 00 2.76 6. 94 1 16. 98 17. 20 1, 637. 20 157. 69 925. 92 596. 99 709.63 l> Sehafl'er,C.T Seattergood, Mrs. Geo Seattergood, (ieorge Snaw, tJ.A ................. S<*attergooil, Chas Sa j.'-er, M Sanborn, Frank A Staples, Horatio Sa jons. Chas. E Sh'arratt, W. H Sliar]), Benj . H Savidge, A. H San ford, (leo. A Stanhoi)e. .) . B Sayre.s, Amos B : — Sh'ai-]), J . 1 ). M. D Stanley Bradley Pub. Co... - Stankowiteh, Emily Sanford, Walter S Salin, Chas. S., treas Strawbridge, J. B Shane Bros Saul,M Sternberg, Constantine Scheible, Wm Sea Girt Land & Imp. Co . . , Stet8er,W.H Steele, R.W Steel, Robt Steel & Hill Schermerhorn, L. Y Sweeney & Cunningham . .. Smedley, Saml. L Stretch, John Sterner,E.Y Sweeting, T. Henry Shelleuberger, C.N Shreve, Virginia C Seddons, Jos. Lons Stephens, Cooper & Co Street, Alice M Seiser, Benj Steel, Ferd Senior, Jas Steel, Theo Sheatz, John O Street, Lewis C Stern, Max Stevens, A. F Skerrett, Kathryn G . . . . Spear, Annie F. A *. Seymour, E.C Steel, Davis W Schermerhorn, C. H Schmellick, Paul Steel, Jas Steel, Lourane C Se well, Mary A Sheffield, Oscar Smith, Mabel C Schippell, Julius Shirley, Geo. W Sliker, Rufus Smith, Geo. H Smith, Frank A Smith, A. A Smith, A.J Smith, Josephine B $26. 63(5. 3, 383. 270. 335. 410. 232*. 18. 293. 1, 450. 6. 3. 32. 1, 195! 1.56. 78. 100. 21. 49. 357. 126. 574. 2. 65. 128. 137. 20(}. 727. 147. 397. 419. 27. 34. 291. 585. 10. 41 42 38 19 78 00 10 98 86 95 81 36 87 42 70 05 85 53 69 32 25 56 27 87 02 80 I 6«! »> 5. 5. 98. 2(K). 112. 33. 159. 424. 98 32 01 03 29 39 62 35 83 00 91 6« 83 87 12 37 50 52 -.22 39. 41 1, 573. 17 89.72 10.16 305. 40 85. 88 2, 096. 62 4.80 63.33 2, 478. 75 1, 050. 00 .78 25. 00 5, 000. 00 78.72 .04 31. .58 .19 72.63 468.81 45.00 Smith, Walter H .t4JK '«> Smith, Robt 1. 07 Siegert, B. Frank 51 . 26 Siggons, L. K 1. 00 Siggons,M.H 21.00 Simmons, W.J 16.80 Simons, G. J and C. R 5. 59 Spittall, Geo. P .91 Shields, Edw 400.00 Strickland, W^m 6. 00 Sinnnons, Mary E 381. 63 Smith, Henrietta H 440. 05 Simpson & Murray 299. Ot Simpson, A. Curtin 4. 72 Siner, John 26. 51 Smith,H.H 1.42 Smith, S. Anna 37. .55 Springman, G. Harry 85. 33 Si)illman, Margaret L 7. 20 Sidebottom, Wm 74. 60 S]>ring Lake Beach Imp. Co. 105. 78 Smith, Edw.E 102.00 Smith, Grace F .87 Simpson,E. P 136.25 Stiteler, R. D 2.00 Spillem, Sallie N 200. 00 Sc^^itt, J. T 41.72 Schoft, H. K 259.30 Schofield, Eliza F 9.20 Stokes, Clayton 741 . 29 Sooy, L. B \ 394.08 Stoiie, Stewart 49. 46 Stokes, Robt 1.39 Stout, Jas .348.95 Schoolman, C. F 701.87 Shoemaker, .J. K 87. 37 Stool, Wm., jr 1, 203. 93 Stone, C. H 33.99 Scott, Mary 200. 00 Stocks, F. E 581 . .57 Shoemaker, L. B 37. 74 SoUers Shoe Mfg. Co 41. 85 Sho well & Fryer 460. 35 Stokes, Mrs. S.J 187. 64 Solomon, Hermon 400. 00 Supiot, Francois 40. 42 Supreme League Golden League 1,071..34 Suplee, Harry T 26. .56 Summers, C. A., treas 13. 16 StuU, G. W., treas 153.67 Squires, John E 10. 47 Schultz, A. G 210.19 Stull, Geo. W 3.28 Summers, Geo. W 248. 31 Smy the, Adam .563. 82 Snyder, Emily 265. 50 Snyder, J. F 415.89 Snyder, A. P 407.76 Taylor, Isaac F 80.18 Taylor, John B 19. 32 Taylor, Edw. J. , treas 100. 84 Taylor, Isa ac & Son 42. 27 Trask, A. K. P 4.04 Twaddell, John P 342.67 Todd, J . Liberty 19. 66 The Universal Order Coop- erative 440.73 ' ' eth, Jolm ( Philada.) 62. 49 24 3. 66 Yea t ts & Troth 847. 73 1. 59 I Young, Ephraim 9. 64 17.20 Young, Robt 1,129.43 68. 42 ' Young, Thos. S 310. 71 11.20 Young, Jas. P 150.01 i Young, John 6,248.04 800. 71 Zeckwer, Richd 471. 95 158. 91 Petty balances Ledger A to 3.78 G 2,699.12 . 69 Petty balances Ledger H to ; o. 5,694.80 6, 517. 50 Pettv balances Ledger P to 32.83, Z: 1,757.06 83. 63 ; Transient collections 4, 565. 46 Exhibit 3 of May 5, 1892. Daily state of the Keystone National Bank, 1891, Due bills Capital stock Circulation Profit and loss Interest Discount Exchange Surplus fund Bills discounted U. S. bonds Redemption fund with U. S. Treasurer Furniture and fixtures Premium Expenses Dividend Individual deposits Due by and tu banks and bankers Tradesmen's Nat. B'k, N. Y. Chase Nat. B'k, N. Y Cash Suspense Shorts and overs Certificates deposit Stocks and bonds General ledger. Jan. 24. Assets. I Liabilities. $7. 125. 53 365. 53 $16,697.22 500, 000. 00 45, 000. 00 11, 516. 97 5, 834. 63 Feb. 16. Assets. I Liabilities. 1,117,949.08 50, 000. 00 2, 250. 00 10, 000. 00 2, 000. 00 11, 652. 97 $50,494.58 i 500,000.00 ! 45.000.00 ! 11,516.97 $12,505.21 i 7,610.44 784.29 ' 100,000,00 I : 100,000.00 ' 980,344.54 Feb. 28. Assets. $12, 466, 58 "i." 333. 54 949, 843. 40 50,000.00 i I 50,000.00 Liabilities. $39, 859. 70 500, 0{)0. 00 45,000.00 11, 516. 97 16*552.95 166,666.66 Aiheville, N. C, "Western Carolina Bank Baltimore Citizens' National Bank 12. 480. 15 28, 652. 45 52. 724. 70 119, 309. 65 6, 120. 00 719, 288. 59 7, 552. 45 2, 500. 00 2,250.00 I ! 2,250.00 i 10,000.00 I i 10,000.00 2,000.55 ' ! 2,000.00 I 20,147.65 i ' 21,459.91 ! I 6,120.00 i I 6,120.00 1,308,078.56 , :!, 245, 012.71 51,783.93 25, 20U. 98 S. 846. 28 280. 929. 53 209, 326. 20 453, 810. 02 6,812.84 ! 56,403.86 6,719.72 ! 12.711.09 ! 6,274.58 I ! 265.044.70 I 653.33 1,097.45 77,701.91 ; 48,371.91 423,810.02 ; 1,414,509.86 164.34 1,414,509.86 2,113,088.63 2,113,988.63 2,013,153.96 2,013,153.96 305. 97 5, 675. 10 27.50 ^'13 2,233.75 !. 4 280 INVESTIGATION OF NATIONAL BANKS. I' ExJiiitiT 3.— Daily state of the Keystone Xalional lionh, /,W/— Cuiitinncd. \ t- K General h-ilger. Jan. 24. Feb. 16. Feb. 28. Assets. Liabilities. Assets. ! Liabilities. 1 Assets. Liabilities. Batavia, N. Y., Bank of Batavia $575.44 Batovia. N. Y., First Na- tional Bank $945.18 283. 67 $2, 134. 10 319 32 $3, 814. 87 244 32 Bristol, Pa., Fai-mera' Nat. Bank of Bucks Co Boston Nat. Bank of Com- luiTce $387. 65 393. 02 1 11, 241. 99 4,641.80 $4,462.79 785. 80 Caniilen, N. J., National State Bank 1 1 Charleston, S. C, Carolina Savinjia Bank 923. 95 1, 235. 07 1 40.'! 04 Waslin Nat. Bk., N. Y "' 2," 460." 23' i Chester, Pa., Delaware Co. National Bank 4.89 .344. 62 •>13 04 Chicago, IIU., Fort Dear- ; born National Bank ' 605, 51 5. 887. 71 ft, 700. 71 1 CoBshohocken, Pa., Firet National Bank i 20.61 Downingtowu, Pa., Down- ingtown Nat. Bk East (ire<'nville. Pa., Per- kionien Nat. Bank Frankford, Phila., fciecontl National Bank 91. 13 77.42 2.70 2. 6.'i3. 27 2 (\W 95 tJernjantown, Phila., Nat. Bk. of Germuntown 4, 285. 55 6, 903. 76 Harrisburg, Pa., First Na- tional Bank .15 Honey brook, Pa., First Na- tional Bank Integrity Title Ins. and Trust Co., Phila 2. 413. 165. 139. Jenkintown, Pa., .Tenkin- town National Bank 1. Lancaster, Pa., Betid. Mc- Grann & Co 695. 36 2, 814. 81 293. 58 n6ft (K) Lewisbnrg, Pa., Union Na- tional Bank Lebanon, Pa., Lebanon Na- tional Bai.k • 787. 16 552. 72 i Manayuuk, Phila., Mana- vunK Bank 96.32 •1 77« no Media Northern Nat. B'k . . . U. S. Fund ::::::::::;:: 776. 97 * 1,999.06 977. 98 Norristown Nat. B'k Pittsburg Nat. B'k 101. 50 82.40 2. 195. 70 2, 003. 57 Pottstown Nat. B'k Potts ville Nat. B'k 336. 50 2,023.64 "^■■■22.'i7" 23.20 4.52. 33 210.84 Reading Nat. B'k 84.38 21 30 Kichwoud Nat. B'k 1 169. 25 Steelton Nat. B'k 638.15 440 33 Scran ton Nat. B'k 747.84 755 78 Washington Nat. B'k 719.50 2. 195 92 ! 1^2 87 Wheeling Nat. Bank 428. 80 {KM. 68 2. 267. 82 12.5. 70 West Phila. Nat. Bk 2. his. 91 West Chester Nat. B'k 886. 20 5, 318. 62 91.00 ' Wilmington Nat. B'k Atlanta Nat. B'k Toronto Nat. B'k Chester Nat 164.62 2.56 2 .56 Dover Nat 2,500.00 12.000.00 165. 65 Tradesmen's Trust 108. 40 Chester Val. B'k Coatesville Nat. B'k 2,476.20 Chicago Ist Nat. B'k 8,000.00 12, 480. 15 7, 552. 45 j 51, 783. 93 j 6, 812. 84 56, 403. 86 6, 719. 72 INVESTIGATION OF NATIONAL BANKS. 281 By INI 1. Wike: Q. Wliut is tlic date of tliis repGif tlic cliaiiinan n(>w has in liis band! T\w dat(' of tli<' lettor was May 11.— A. It is May 18. Q. It appears seven days after the letter from the comptroller, insist- ing that Drew shall furnish a schedule. It is probably customary to furnish merely the account. The presumption is that there is no re- I)ort? — A. We will presume nothing. If it is in the office it will be pro- duced. Q. This covers the two points ; all the items between the time the examiner took possession and the time the receiver was appointed ap- pear in this report! — A. Yes, sir. Q. So that that will appear, whether you produce the other or not ? — A. Certainlv. By the Chairman: Q. Of course, Yardly, in making up this report, was necessarily guided by the information furnished him by Drew and from the books of the bank whicli had been in Drew's custody! — A. He would be guided to this extent, that he receipted for every item Drew states was in the bank on March 20. Mr. Drew must either x>roduce the assets or the money collected. The statement is complete and shows a general his- tory of the transactions. By Mr. Wike : Q. It occurs to me that, in order to arrive at a certainty in this par- ticular and to know the exact condition of the bank on that day, we should have a statement of it. Does this show it! — A. Yes, sir. Q. If it had been shown on that date or within two days after the examiner took possession this would be sufficiently accurate! — A. Un- doubtedly the records and books there show all this, but it was not necessary to transcribe them and send them to the office. They are there now and have been there since Drew took charge of the trust. By Mr. Walker : Q. It is simply a question of being there or being here. The items are all here, but not assorted. — A. We only require to have transmitted to us such as we need. The books are in the custody of the receiver and subject to the examination of this committee or anybody else, and they show any transactions during that whole ])eriod. Mr. Wike. The statement we have here was made months after the transaction. There ought to have been one made at the time the exam- iner took possession for the Government. Mr. Payson. It purports to be of the very date when the examiner took possession. Mr. Walker. It was transcribed on that date. The Witness. The record is made by the Government through its agent, the examiner, and it is left with the receiver, and is there subject to any examination which may be hereafter made. By Mr. Wike : Q. The receiver simply takes what the examiner turns over to himf — A. Whatever the Government does has to be done through its agent. That agent was the examiner and that examiner took possession Q. (Interposing.) And run it for three or four months without having started with a statement to the Government? — A. It was about 50 days. That was on account of the continuous expectation of resumption. Mr. Drew must explain that for himself. ( i;; !'.■' I' I' sit?-' 282 INVESTIGATION OF NATIONAL BANKS. The Chairman. It is understood, then, that the eomiiuttee desire a further search in your office for information as to whether or not you have in your office the schedules made by the examiner of the assets and liabilities of the l)ank when he took possession of it under your order. If you have such we desire a copy of them. - ., . The Witness. (To Mr. Stoddard.) Make a memorandum of that. By the Chairman : Q That brings us down to the point where the receiver had taken pos- session of the property. 1 1 a ve yon any list of the persons against whom assessments were made as stockholders of the bank?— A. No, sir; the assessment is made by the Comptroller in bulk,'and the particular per- sons charged with being stockholders and with having incurred indi- vidual liability is ascertained by the receiver, and he eniorces the col- lection of those particular items. Q. Is there any report of the persons against whom he makes assess- ments as to the number of shares and the amount of eacli!— A. I think not. I recpiiied him to send me at one time a transcript Irom the stock ledger showing those who were represented as stockholders when he took possession of the bank. . . ., j i Mr. WiKE (to the chairman). Is there anything in the record show- ing the reason for the increase of the Sea Girt property at the time ot the second reports ., . -^ . i The Chairman. There is nothing, except that it was increased. The Witness. Mr. Drew states in his correspondence that he had taken pains to investigate the value of the Sea (Jirt property, and had come to the conclusion that it was worth $700,000. By the Chairman : Q. There is a list attached to this exhibit of the stockholders as they appear upon the books on March 20, 1891?— A. Yes, sir. U I think you have testiiied that there was in the list furnished you of the stockholders on June 1, which was produced and put m evi- dence, and this is the one which accompanies the report, i he law requires that a list of shareholders shall be furnished to the Comptrol- ler as of the first Monday in July of each year. That list was lur- nished for the first Monday in July, 1889, but it was not furnished lor 1890 —A. There was no list of shareholders sent to my office, so tar as I know, between the first Monday in July, 1889, and March 20, 1890. Q I understand that no report has ever been made by the receiver of the Keystone National Bank of the persons against whom he made assessments in compliance with your instructions contained in your let- ter—A. The chairman will recollect that I had a conversation with liim in reference to the sixth paragraph of his letter, dated April 21, which reads as follows: "We shall also desire all correspondence be- tween the receiver or his attorney and yourself or your Bureau relating to the assets or business of the bank and showing the present condition of the trust." It was verbally understood between myself and the chairman that he would h)ok over the record since the receiver took possession of the assets and select out such papers as he wanted copied and submittetl to the committee. 1 should prefer not to make any statements with reference to this part of the inquiry without having the official documents before me. I may say that, so far as I uow re- member, the receiver has not transmitted a list of the names ot the shareholders supposed to be subject to the assessment for individual liabilities. INVESTIGATION OF NATIONAL BANKS. 283 The chairman calls the attention of the witness and the committee to the tact that the sixth paragraph of the letter relates only to the cor- respondence between the Comptroller's office and the receiver, and desires to correct the recollection of the witness by stating that m tact the conversation between the witness and the chairman related only to the correspondence of tlie receiver, and it was with regard to that only that the chairman accepted the suggestion that he would examine the correspondence at the office of the Comptroller before the certified copies were made; and to further call the attention of the Secretary to the fact that the inquirv now put to the witness refers to a report^nd not to the correspondence between the I^ureau and the receiver. With that explanation, I do not know why tliis matter of the receiver's report should not wait until the witness be given further time tor the examin- ation of the records of the offi(*e, if the committee agree with me m that opinion.— A. We are very glad, and very willing, to furnish certi- fied copies of everything in relation to the trust which the committee desires to have submitted to it. ^ The Chairman. Was there at any time a request made by a com- mittee of the citizens of Philadelphia with reference to an investigation of the affairs of this bank, or was such request made upon the Secre- tary to your knowledge!— A. All applications for permission to inves- tigate the affairs of this bank, so far as I remember, have been disclosed in the correspondence which has been read. Certainly all that has been addressed to me and all that which was a part of the records have been submitted, so far as I am informed. Q. You have stated, I think, that there was in progress now an inves- tigation'? — A. Yes, sir. , ^. Q I do not know that I am able to identify the letters relating to that investigation.— A. That is not under my direction, but under the direction of the Secretary of the Treasury, and is made by clerks detailed from the Treasury Department, acting with certain experts appointed by the committee of citizens of Philadelphia. My recollection is that the committee of Philadelphia appointed and paid for four ex- perts; that five have been detailed from the Treasury Department, and, acting lointly, they have been making a complete examination of all the books and records, both of the Keystone Bank and the Spring Garden Bank, since the 1st of October last, and that said exainination nearly completed. . Q. Are reports of the progress of that examination made to you or to the Secretary of the Treasury direct f— A. They are made to the Sec- retary direct. „ » r,., ^ • i i-i Q. And do not come to your Bureau?— A. They furnish us with copies, but not the originals. ^ ., Q. Are those furnished from the Secretary's office, or from the per- sons engaged in the examination ?— A. From the Secretary's office. Q. Who is the head of that examination?— A. A. E. Barrett. Q. Has he been in your Bureau?— A. He is a special operator m the Division of the Secret Service of the Department, and beholds my com- mission as a national-bank examiner. I send him to banks which it is necessary to investigate in this manner. That appointment was made as a matter of convenience to fiicilitate the investigation. Q. That was an investigation undertaken under authority of letters which you have read here, and by certain gentlemen for the city of Phil- adelphia?— A. An investigation by certain experts appointed by the city council of Philadelphia, in relation to the city treasurer. ■ r i > ■ 4 ■■■■ I : \ ■'--■ :( a II 1 I I* i !'■' n i < ■ ' 284 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 285 Q. The letter was jiddressed to the mayor of the city? — A. There was a subsequent ont^ made by th<' eity of rhihi(h'Ii>hia. Q. Is the one made by the mayor comph^ted, or the one made by the experts emi)h)yed by the mayor? — A. The examination disclosed by the correspondence was not ma4, George F. Fuchsiuger, Louis • Garrett, Walter ■ Gabel. Geo. '1'., jr , Goforth.M.A <)" Gilford, J. A I *j" Graham. Mrs. S.C *<> Philadelphia. do do do Lanca.Htor . .. Philadelphia. do do do do do do do do , do do do do do do do do do do do do do , do do do do do do do do do do (ireen, Henry W Goble,B Greyson, Joseph Groves, Wm Haines, Mrs. Anna M Heraty,M.P Heraty.E.J Hoopes, D. J • Hornickel H. A Holbrook, R. M Holbrook, John O Huber, John Y Hopkins. E Hubl)ard,L. Y Howard, J. W Hickman, M. B Hopkins. Mrs. E Hunt«'r, J ohn Jackson, J. T Jeitles, J . A J ohnsou, Henry Kerable, W. H..prest Kahlmus, John Kerl in. J . N Keen, Chas. J Landaner, M Laurence, Chas Lex, W.E Logan, J. P Logan, Mrs. Mary P Lowrj', A. A Long,'B.C Long, M. V •. Lukens.C McFa«ldeii, Chas Lnca.s,.JohnC , -• -I «" Lucas. Sam'l i d" McHride Bros eing duly sworn deposes and says that the fore«]:oing is a full and correct list of the shareholdeTs of said hank, with the residence of each, and the number of shares of the stock of said hank held by each of them, on the first Monday of July, 1886, and that the same is a true copy of the list of shareholders on file in said bank on that day. G. W. Maksii, Cashier. Subscribed and sworn to before me this 27th day of October, 1886. [Official seal of notary public] W. W. Duughkkty, Notary Public* V in m ^H ,"#ifl ^^^H % pH w^ .fi'X Mi W Hb '} .^^R; ' 1 ■ ' .... 1 :! M 288 INVESTIGATION OF NATIONAL BANKS. Copy of list of names and residences of shareholders of the first Monday of July, 1SS7, National Bank on the Name. Residence. Arthur, Robt ' Philad'a Agnew, Ed ' do . Barr, W.J ! do . Baiues, C. E I do . Bradley, H. H '■ do Biadlftv, W. B I do . Briutzinchotter, C do. Beatty, M. A ' do . Bender, W, A ' do . Burns, B. C ■ do . Brenuenmn, B. F I do . Brown, K. A ! do do . do. do. Buck, Dan'l Byrd, John ( 'anning, L „„ Crump, H. J ' (|o Crump, John do Cox, W. P do Cauthorn.P do T)reka, L do Dittman ,J.G do Durham, John C do Downs, A. C do , Excelsior Div., S. of T do Evans, W do Elliott, A. G., & Co do Fields, Geo. F do Freeman, H. G do Frieka, Henry A do Gabel, G. F.. jr d(. Goforth, W. A do Graham, Mrs. S. C do G reen. Henry "W do Gift'ord, J. J do Garrett, Walter do Gregson, Joseph do Groves, Wm do Goblo, Brookfee j do Heraty, E.J t do Heraty, M. P I do Holbrook, H. M 1 do Howard, J. W Hibbard, Mrs. S. T. Hickman, M. B HopkiuH, Ed , Holbrook, J no. C ... Hoopes, D.J Hopkins, Mrs. A . .. Hornickle H. A Huber, Jno. Y Johnson, Henry Jeitles, H. A Jackson, J. F Kemble, W. H., p't. Kahlmus, Jno Keen, C.J Kerlin, Jno Landaur, M Logan, Jno. P Lowry, A. A Long, Benj. C Long,W.V Lex, W. E Logan, Mrs. M. P... Lukens, H. T. do do -do do .do .do .do do do do do -do .do do .do -do .do do .do .do. do do. .do .do . Mellock, J. M do . McFadden, C i do McBuniey, D j do . Mc Arthur, D i do . McBride Bros ! d© ] McCuue, A ..^^ i.. "do do. do. do. do. do. do. McCausland, W McClees, J. E . McGillian, W McMullan, W Morgan, Jas. . Marsh, M.J. . ^ Murphy & Sons I . . . ! . .do Helouey, G. K !!!.!!. do *$50. No. of shares. *25 50 4U 25 5 1 5 10 10 10 100 25 12 8 10 11 10 5 4 40 7o 10 20 10 10 50 90 10 5 4 1 10 20 14 50 20 30 10 50 50 10 20 30 100 5 10 20 5 5 150 100 10 40 10 40 20 10 10 20 1 15 30 2 100 10 20 500 ao 5 5 5 10 12 2 7 20 4 120 INVESTIGATION OF NATIONAL BANKS. Copy of list of names and revidences of shareholders, etc. — Continued. 289 Name. Matthews, C. T. Miller, C. T.... Miller, J Moore, A. M Myers, J Nace, S Newton, C. C... Nichols, D. P. S Nirdlinger, S. F Nathans, H.F.. Omensetter, G.. Otto, Jno. A Over, David A. . Paynely, F., Co . Penrose, E Perot, Jno. S — Pooley, J. B Portuondo, J. F , Pennell, W. H... Paul, H. S Preston, Greo. R . Reed, A. H , Rees, P. A Richel, A. C Residence. Philad'a do. , do . do. .....do. do. No. of shares. .do -do .do -do -do .do -do -do -do -do .do .do -do. .do . .do. -do. .do . -do . Sheeler, L. M [ do . Sautter, C. H do . Steel, Theo i do . Smith, W. B I do . Shellenberger & Shcble ! do . Shcllenberger, E. A^..._. I do . do . do. JU-a *J •• as*************************************-******!*** >* 'CIO ■ • ■ Crnmp. Jno ! do . . . Comcross, Jno L ' do . .. Chapin, Sarah C ' do . . . Cattell,W.C I do... Cooper, Mrs. D. C ! do .. . Crump. Geo. R ' do . .. Commonwealth Title Ins. and Tr. Co do . . . Cox,W. K do... Chambers, Airs. Mary J do . . . Chapin, G.W do... I)avi8, Mary Ann do ... Dreka, L do . . . Dillman, J. G do . . . Dunham, Jno. Co do . . . Downs, A. C j do .. . Downs, Emma [ do . . . Excelsior Div., Sons of T t do . . . Evans, AV I do ... Elliot, A. G. & Co I do ... Elliott, R.M i do ... Fields, Geo. F ; do ... Freeman, Henry G., jr j do . . . Frioka, Henry A i do ... ( rlass, M. Ida I do . . . Gabell,Geo.F.jr j do... Gaforth, M. A I do ... (rraham, S. C do ... Green, Heni*v W I do . . . Gane, W. Walter i do ... Gregson, fJ oseph . GrtK»ves, Win Goble, Brook field. .do .do -do Goodrich, E.T do Gibbs, Almira Haines, Granville B ... Harm an, Mr«. J. C Heraty, E. J-. Heraty,M.P Haines, Franklin I) ... HoJ brook, R.M Howard, J as. "NV Hibbard, Mrs. Susan Y Hopkins, Edward Holbrook. Jno. O Hoopes. D. J HopKin8, Mrs. VV I do Hornicle, Heniy A t do . . Johnson, Henry i Muncv, 1* Jackson, J. T I Philada. . Kahlmus, Est. Jno ' do .. Kahlmus, Annie L I do . . Keen, Chas. J I do . . Keen, Chas., Ex • do . . Kirst, Henry j I do . . do do do do do do do do West Chester. Philada do do No. of shares. Kerlin, J. N Logan John P Loury, A. A . . .do .do .do 31 17 50 25 31 25 6 1 6 10 12 10 10 10 125 25 20 25 10 10 15 5 11 10 12 12 30 2 100 13 15 10 9 10 50 70 10 20 5 13 10 59 3 90 12 15 11 4 1 15 40 50 25 50 38 25 10 791 40 62 42 14 12 25 36 5 15 25 6 5 125 50 40 4 10 2 30 12 25 1 INVESTIGATION OF NATIONAL BANKS. 291 Copy of list of names and residences of shareholders, e Melloek,J.M <|" McFadden, Chas do McBui-ney, David do MeBurnev,E.C do McCune-b do McArthur,D do McBride Bros do Residence. West Chester. Philada do do do do do do McCau8land,N do McClees, Jas. E., trustee do McGillian,Wm do Melliek, Mrs. E. D do MeMullen,N 1 do Mc Ardle. James ' do Morgan, James 1 do Marsh. Mrs. W.J do Maasey.T. J do Murpliv, W. F., Sons ! do Meloney,G. R j do Matthews, C. T : do Mackie,B. T do Miller, C.H ' do Miller, J ! do Moore, A. M ' do Myers, Ja Pa> on the first Monday of July, 1888. Capital of bank, ^SitV^.J No- o* sliaros, ; par value of shares, $50; No. of shareholders, 170. Ihis list must in(bcate the shareholders as they appear on the books of the bank on ih& first Monday of July. (See section 5210, Revised Statutes.) The oath must be administered by an officer having an official seal. i'' INVESTIGATION OP NATIONAL BANKS. 293 [Form 251.] Examiner's report of the condition of the Keystone National Bank, located at Philadelphia, VpJy**' ^*^*^'^^y *^f ^fiiladelphiu, State of Pennsylvania, at 3 o'clock p. m., February 10, loot, John C. Lucas. President. GroEON W. Mabsh, Cathier. Kesources. 1. Kotos and bills discounted 2. Overdrafts , 3. U. S. bonds to secure circulation (3 per leut) 4. U. S. bonds to secure deposits 5. U. S. bonds on baud 6. Otber stocks, bonds, and mort- gagw 7. Due from app'd reserve agents, viz: Hanover Nat j Bank, N. Y $22,772.42 Tradesmen's Nat. Bank, N. Y 96,-384.36 Dollars. 1,282,104.49 8,684.83 50,000.00 8. Due from other national banks (46) 9. Due from State banks and bank- ers (J2) , 10. Banking house 11. Other real e.state 12. Furniture and fixt'rs .. $10,000.00 13. Current expenses 9, 709.66 14. Taxes paid 15. Interest paid Exchange 17 18 19. 20. Checks and other cash items Exch's for C. H., includ'g gold ch'ks Bills of other national banks Bills of State banks Fraction'l currency, includ'g nick- els 21. Specie, viz: Fractional silver. . . $3,252.75 Silver dollars 6,937.00 Silver Tr'y cert's. . . 8,429.00 Gold coin 6,639.00 Gold Tr'y cert's 120.00 119,156.78 38,157.85 14,585.92 10,000.00 9,709.66 1,728.14 762.97 25,690.17 5M.519.95 6,545.00 2,738.81 Liabilities. 1. Capital stock paid in 2. Surplus fund 3. Discount $16,079.46 4. Exchange , 5. Interest 6. Premiums 7. Profit and loss '. . . 1,255.56 Dollars. Bents from boxes 8. Circulation received . . $45,000.00 On hand and re- turned 9. State-bank circulation outstand- ing. 22. Legal-tender notes , 23. U. S. cert's of dep. for legal tenders 34. 5 p. c. reiVn fund with Treas.U S 25. Other funds with Treas. U. S. : C.H. gold certs Trade dollars Ca«h short Total. 25.377.75 28,371.00 2,250,00 60,000.00 31,960.00 37.08 10. Dividends unpaid , 11. Individual deposits, viz: Subject to check. $1,101,464.41 Demand certifs.. 24,141.13 Time certificates Certified checks. Cashier's checks . 400,000.00 80,000.00 17,336.02 55.00 45,000.00 617.50 12. United States deposits 13. Deposits of U.S.disbursing officers 14. Due to national banks (6) 15. Due to State banks and bankers (4) 16. Notes and bills rediscounted 17. Bills payable 1,771,380.40 Cash over Total ., 1,125,605.54 76,285.23 26,482.11 1,771,380.40 Records are complete. Bills discounted found correct: they are proved quarterly , Other books: 2 individual ledgers (1,553 oper.) balanced monthly, $403.46 short, a recent difterence. ' President : Manager of bank owns 2,420 shares of stock. Vice Prest. Granville B Haines, owns 791 shares of stock, is head of G. B. Haines & Co., dry goods. &c ' doing a large business. . , j g o, o^^., Cashier: Formerly teller; bred to the business; a careful and laborious officer. Directors: 10, owning 4,311 shares of stock; mainly in active business. Board meets twice each week. Stockholders: 147. All have certificates of stock. Par value of shares $50-$58. Tnn^!*"' "l'^ ''''.T.i^i?''^® building, opposite U. S. Mint, on Chestnut, corner of Jumper; rent paid, $8,000 «e<. ' Safe: Good safe and vault, with boxes; 2 watchmen. Dividends and surplus (section 5199 of the Revised Statutes of the U. S.) : Date of last dividend, October 29, 1886. Amount, 3 per cent. Carried to surplus, $10,000. 'k' .(;., . "I ■^■1 fi 1 2!U INVESTIGATION OF NATIONAL BANKS. II fi LOANS AND DISCOUNTS. On paper with two or more individual or firm names (deni. $37,178.71).. $956, 178. 99 On 8in«;le-namt' i)aper (one person or lirui) without other security (deui. .$.58,000) 283,480.50 On niort j»;aftevS and other real estate security On U. S. bonds payable on demand 850. 00 On other stocks, bonds, &c., payable on demand (or trade dolls., $198).. 13, 125.00 On time, secured by collaterals 28, 470. 00 Includcil in the above are — Bad debts, as defined in section 5204 of the Revised Statutes of the II.S Other suspended and overdue paper 82, 744. 84 Liabilities of directors (individual and firm) as payers 64, 981. 53 Loans exeeding the limit prescribed by section 5200 of the Revised Statutes of tlie U. S., viz: G. B. Haines & Co. have disc'ted our order 33, 124. 53 And by other parties (some on clerks) 24, 497. 30 57, 621. 83 GENERAL REMARK8. Overdrafts : Principal item, G. B. Haines & Co., dry fr««resents sundry notes which have been continued from time to tinui as renewal with past payments. Interest is regularly and fully paid on all of them, and the president is clear in his opinion that all are good, although it would be ditticult to realize at once upon all at maturity. Mem. — Examination of this bank l»y the directors has been sutt'ered to fall into desuettule the past year. Periodical and thorough examinations by the bank should be required. Mem. — The settlements of this bank with the clearing-house often make it a large debtor, and ccunpels it often to api)ly to other banks for assistanaid during examination.) Cash over (to-day) Total 20, 00:). DO 9.39 1,888,068.97 ^'Designate what F. S. bonds are held in each case. [Note. — Examiners are requested to report below whether the records are fully and explicitly kept, and, it not, Avhether proper corrections and additions have been made during examination ; whether the books are correctly kept, and how often accounts are balanced; which officer is in charge, and if the others are active or in- active ; their reputation, salaries paid, and bonds required of them ; whether the officers are trained bankers, and if they are engaged in business outside of the l>auk; whether the directors meet regularly as a board, and how often ; the number of shares owned by each ; whether they have active discount and examining committees, or leave management entirely to the officers ; the number and classes of stocklndders, and whether annual meeting was regular; whether the office, vault, and safe are secure, and if used in any other business than that of this bank, whether its business is kept entirely distinct and separate.] Records: Complete. Bills discounted are ]>assed monthly. They are $1.39 over. Other books: Very well kept. 3 individual ledgers (1,687 ace.) balanced monthly. Their dift'erence August 15, ult., $227.37 short. Over difference close of Sept. 6, inst., $1,367.22 over, which will be looked up. President: Manager of the bank, owns 2,175 shares of stock; salary, $5,tX)0; no bond; owns much real estate in Philadelphia, and at Spring Lake and Sea Girt, N, J.; member of "Lucas & Bro.," wholesale grocers, Philadelphia. Vice-president: Granville B. Haines, head of Granville B. Haines & Co., a large retail dry-goods house; owns 791 shares of stock. Cashier: A trained officer; owns no stock; salary, $2,400; bond, $10,0(X). Takea • ^1 i m li ly Ii 1 li - m ' 296 INVESTIGATION OF NATIONAL BANKS. tliir'iml\lct'il!s*'^^^"^^^ '*^ ^^'"^ bank, althoui;li familiar with all Irausac- $1oSk)^**"^ t^ashier: John Hayes, jr. ; acts as paying teller; salary, $1,500; bond, DIVIDENDS AND SUKPLUS (SECTIONS 5199 AND 5204, U. S. REVISED STATUTES). Date of last dividend. May 3, 1887. Amount, $ , 3 per ct. Carried to profit and loss, Jploo. lo. vahle"^^^^ ^"*^*^ ^^^^ examination: Losses, $229.66; premium, $ ; decrease of LOANS AND DISCOUNTS. ^' "^'ISo^^JS^l^ll *^'^ ^^^ *"^^^ individual or firm names (on demand, «Poo,D00.5o) djoi 1 nnn QiT B. Single-name paper (one person, company, iimi, or members of a coiii- ' pauy or firm) (on demand, $6,000), without other security 247 870 29 C. Loans and discounts secured by real-estate mortgages or liens upon ' real estate ^ ^ D. Demand loans secured by other collaterals . ...!!..!'[. 46 89621 E. Time loans secured by other col laterals !..!!.'.!]'."!! 73' 325! 00 Total notes and bills discounted \ 279 752. 47 Included in the above are — " F. Bad debts, as 'defined in section 5204 of the Kevised Statutes .... $3. 035. 42 Kj. Other suspended and overdue paper 24 016 60 ^' ^Jii^^Jl*^^® of directors (individual and firm) as payers" (firm, $62,o24.53) 104,824.53 LOANS EXCEEDING THE LIMIT PRESCHIBED BY SECTION 5200, U. S. REVISED STATUTES. Granville B. Haines & Co. (see above) have direct own order.. 33 124 53 And au endorsement of H. P. Lemaistre (formerly of the firm and "re"- ' * 81)01181 ble), 6 notes 24 479 30 57, 603. 83 (Although on these notes the uamo of the firm does not appear, there is evidence that they are tor % ol the firm.) a military camping ground at Sea (iirt, for $72,000, by the president of the bank, will probably pay most of these notes, if not all. 1. To order of '' Samuel Lucas, treasurer Spring Lake Land and Improvement Co." w S- 5'" • T' *^ ^^ $10,000 H<^««»«* 4^862 2. To order *' Lucas & Bro." '^^^' ^^ jr.lLSweeney 5 g20 K. W. Cromio 4' gg2 A. S. Lauer '.'.'.'. 3' iwi 3. To order '' Edward Irwin, treasurer Sea GirrLkiui'aiidlVn'pVco!" James Wilson ^ y3Q H.c.Brownaii ^•^^:^:::::::::::::::::::::, ^m Y . H. Smith 3' ygQ J. H. Goodwin '[[' ►' ^^^ J. H. Weldon !!!!!!!!! 4^860 '- 23,758 $526, 8:^3 Edward Irvin is a clerk of " Lucas & Bro.," as also are some of the other names on the notes, at least such is my impression. Irwin is undei-stood to be a man who in nnaucially responsible. W.A INVESTIGATION OF NATIONAL BANKS. 207 Mem. — The following notes represent balances of not«'S, many of which were in the bank, under a previous management, and some when a nat'l bank. The interest is rc^gularly paid every six montbs, and they are accounted good. J. C. Lucas, trustee, balance from $30,000; difference paid, $14,280, city liens as collateral $13,850.00 John O. Rourke, order M. O'Rburke, contractor, bal. from $18,000, dift*. pd 16,410.17 Chalks I^iwrence, trustee. Amies Publishing Co., failed, balance Irom $20,000, difference paid, secured by books, plates, &c 8, 445. 76 William Armstrong (formerly pres't of bank and a contractor). Order J. C. Lucas, pres't $8, 136. 00 Order Lucas & Bro 5,860.50 13,996.50 Sainl. B. Griffith, order J. C. Lucas, trustee ac 7, 278. 00 Chas. E. Blumner & Co., order J. C. Lucas, pres't 2, 929. 05 W. H. Butler (lithographer and publisher), failed, going on order W. H. Butler, trustee 10 901. 84 The Combination Trust Co. by M. H. Alberger, pres't, with 700 shares Combined Iron and Steel Co. (no quotation) 10,000.00 83, 511. 32 W P Drfw ExoniinfiT To the Comptroller op the Currency, Washington, D. C. Mem. — There has been but little improvement in settlements with clearing-house on the condition mentioned in last report. To-day, and for the last few days, the bank has, however, settled creditor. [Note.— Under the head of General Remarks, the examiner should mention the (haracter of collaterals held, and give a clear description of the loans and discounts, overdrafts, stocks and bonds, other real estate, cash items, expenses, bills payable, or other accommodations sought by the bank, and the necessity therefor. He should schedule all loans obtained by any corporation, company, or firm, through its stock- Imlders, members, officers, or employes, for the benefit aiid use of such company, cor- jxuation, or firm, as may appear from the credits such account has received, and should describe the manner and means by which such accommodations were obtained.] GENERAL REMARKS. Bad debts : Due 1885. Smart, order Fullerton ; hopeful for most Due 1886. March 24, Wallace, order Dobbins «fe Co. ; hopeful Due 1886. March to May, 3 notes, Bartleson ; good for | Due 1886. April 23, Brotherhead, order Shill ; doubtful Due 1886. Sept. 20, Culbertson, order Lex ; doubtful Due 1886. Dec. 2, Bien, indorsed Mapleson ; hopeful for most $529. 42 295.00 466.00 50.00 325. 00 1, 370. 00 Other past-due paper : = Due 1882. Apl. 26, O. D. Buffum, with atty. ; good for \ eventually .. Due 1884. Apl. to June, 2 notes, K. McBurney &, Sons, failed; in suit; hoj)eful for \ Due 1884. June to Dec, Whiteside, $400; Schroyer, $154.86; cKde' $2,000; Milanow,$400; Gould & Co., $136 ; all in suit; hopeful... Due 1885. Oct. 27, Amies Publishing Co. ; failed; in suit; hopeful.. Due 1885. Apl. to June, Ely, Hamburger. & Ely; failed; in suit; good for, say, \ *. "1 ., Due 1886. Feb. to May, 6 notes, Lewis T. Young & "co. ; failed; in suit; doubtful Due 1886. March, 8 notes, W. B. Metis & others; failed; in suit; goodfor^ ' ' Due 1886. Aug. 16, Tobin ; good Due 1886. May 15, The Wm. Wilson Silversmith Co., order Giles, Bro. &. Co. ; ho]»eful ; firm indorsed Due 1886. May 18, McNichols, order McGlue, with atty. ; good!...". Due 1886. Oct. 11, J. Lippincott, order J. C. Lippincott; failed; 75 per cent is ofiered I^ue 1886. Dec. 18. H. H. Harrison, Avith $3,000 stock" Di'iftV 'iU\\t Whisky Co. ; failed ; with atty. ; hopeful for most ". Due 1887. 12 notes, recent ; good within, say, $600 3, 035. 42 1,000.00 1,500.00 3, 090. 86 432. 57 1,090.98 3, 914. 58 3, 316. 53 277.35 2,619.73 42.25 3,000.00 1, 300. 00 2, 431. 75 24,016.60 'A ■I! % i. 29a INVESTIGATION OF NATIONAL BANKS. Mem. — The luanageiiiciit Hjiy that h»aii8 «ii tlie above lists will )»«> cliarj;condence. 2flu? during this examination, $20,000. Mkm. — This bank coutinnes to act, under authority of councils, as the deposito,ooo.oo U. S. bonds, to secure deposits • . . j U. S. bonds on band" \ Other stocks and bonds I Premiums pai0; sell, foa. Office, vault, and saf«*: Good, tenquuary quarters on Chestnut st., near U. 8. Mint; rent paid, $6,000; rents received from boxes, $:300. DIVIDENDS AND SURPLUS (SECTIONS 5199 .\ND .5204, U. S. REVISED STATUTES). Date of last dividend, November 1, 1887. Amount, $ , 3 per cent. Carried to profit and loss, $6,121.06. ^ , „ Charged oft' since last examination: Losses, $ ; premiums, $ ; decrease ot values, $ . LOANS AND DISCOUNTS. A. Paper with two or more individual or firm names $875, 946. 20 B. Single-name paper (one person, company, firm, or members of a com- pany or firm ), without other security 290, 799. 37 C. Loans and jliscounts secured by real-estate nuutgages or liens upon other real estate -. I). Demand loans secured l»v other collaterals (, 038. 00 Total notes and bills discounted 1, 237, 864. 42 Included in the above are — ^ -,ru\ o« Y. Bad debts,' as defined in section 5204 of the Revised Statutes .. 2, 100.85 G. Other suspended and overdue paper 52, 835. 60 H. Liabilities of directors (individual and firm), as payers (firm, $105,134.83) 149,634.83 LOANS EXCEEDING THE LIMIT PRESCRIBED BY SECTION 5200, U. S. REVISED STATUTES. Granville B. Haines & Co. : Direct; 7 notes, own order .... $33, 124.53 By <»therH (see sujiplementary sheet) 19, 749. 30 — $^2, 873. 83 Lucas & Bro. : Direct ; 7 notes, own order 31, 896. 00 By others (see supplementary sheet) 20, 365. 00 „ ar»i aa ^— ^— — ^— 52. 261. 00 i .•I ■ t llil r' 300 INVESTIGATION OF NATIONAL BANKS. Mkm.— Tlio iiulireet iiidobUdiioHs (in form) citn«a^ (niade Feb. 20, during this examination), no doubt good ; of the rest, they are probably good with slight exceptions. Large loans and discounts: John Wanamaker, own order, 4 notes $40 000 00 ^•H. Mayer, order Philadelphia Smelting Works, 6 note's".'".'. !!'.'.'.*. 22' 352* 80 T wlt:r iV?*^}"T**'*'"^*'''*'^*^^^"^^""^P 20! 000; 00 li. VV. Maltby & Co., own order, 6 notes 27 000 00 W . H. Butler, order W. H. Butler, agent ; 4 notes ."!!.'.*.".".*.*.'!"" 19 400" 00 The Combination Trust Co., with 700 shares ($35,000) stock of the ' ' Co. as collateral m the bank some years, interest fully paid on re- newals. I he president says it will be paid in full eventuallv . . 10 000 00 Demand note, Jauuarv 19th, 1882. William Armstrong (formerly city ' contractor and president of this bank), ordet of John C. Lucas, presi- dent ; interest paid reqularly. President says it is good eventuallv . 8 136 00 Demand note, January 30th, 1882. S. B. Griffith, o?der of John C Lucas, trustee acct. ; int. pd. regularly ; pres't says good 7, 278. 00 154,166.80 r^.^r^^'f ''i^^''' ^^^''^ ^'^^ of undoubted strength, and I do not know of any good reason lor discrediting any of them, even those of ^'long continuance," except the Conibmation Trust Co. ($10,000), which I regard as doubtful. ' ^ MEM.— 1 he loans mentioned under *' Loans in excess of legal limit " are virtually so tar as I am able to learn, being for ac. respectively of ''Granville B. Haines & h^ II Lucas & Bro. " though not bearing these names, are as follow^j, they hav- mg been long in the bank, interest being fully paid on renewal of the same: Order of Henry F. Lemaistre, for Granville B. Haines & Co. : Due March 4, 1888, Charles Harrison «i«8nnnn Due - 7, - T. c. Morris & Co ::;:;;:; 297930 DueApL 6, ^' Sam'l Batten n'ooom Due " 7, " George Hillisan sSS'no DueMay 2, '' M. Potter & Bros ll'.\l[[[[]][ll]] tjmOO Order of Edward Irwin, for Lucas & Bro. : ^^' ^^^' ^ DueAp'l 22, 1888, R. W. Cramie «m 99^; m Due do. ♦' " *' V^fm DueM'ch31, " " l'«Q?m DueFeb. 16," J. H.Wilson & Co ! l!!! *.'.!; q'Tfiom DueFeb. 20, " James Black '.'.^'.IV.]]V.[[\'.['.[[[[ 4 860;00 20, 365. 00 ^ J*?mwT^^vM**''* ^^'J^'^'vlI'loA/'*''*' ^y Morris & Co. ($2,979.30), Potter & Bro. iftd^^/^ri ?^'*T.^,^"'i^^i^^^^^ "«* ^« "'^^1« to stricture, but the others are believed to be wholly for the account of the firms nameil; Lucas & Bro are a wholesale grocery house in Philadelphia, rated at $75,000, and doing a large business Samuel Lucas, elder brother of tlie president (who has an interest in the m'^'J"* 'im "'^""^\"S ^"^"'V^I' ^n*l a director in this bank, owning 20 shares of stock. MkM.— Iho ijresident of this bank is erecting a large and elegant banking-house, cor. Juniper and Chestnut st. with offices, etc*, complete, and a^ room for this bank when completed, probably in July next. Mem.— This bank continues as the authorized depository of the city treasurer. To befn^^^ 04^ 07 'Vr- *""^Y ''. $365,923.55, the receipt^ (cash and checks) to-day of tbe'^tv treasurf^^^ piesident and vice-president of this bank are the bondsmen MEM-^rie ''settlements" with the clearinghouse have lately been much more favorable than at time ot my last report, but I have a suspicion that in some few instances the ''credits" shown were largely made up of duchills of other banks ?« l"*'^! •"""^,*^^'^^y.V/^-''*^^'**"«*' "^ *'"«^; ^^'l^i^'l* ^^as a part of the reserve of the bank. This probably will not recur. . v^uivuo INVESTIGATION OF NATIONAL BANKS. N^ 301 Mem.— The amt. in "Interest ac." (paid), as shown in this report, largely con- sists of interest paid to banks for loans ; sometimes for a period, as pledge of bills discounted ; sometimes for duebills for a day. This bank has been, in its manage- ment, particularly as to its daily " settlements," the subject of some criticism, not to say anxiety, on the part of the C. H. committee, and I am convinced that its habit- ual settlements, heretofore in debt to the C. House, has injured its reputation among its associates. The bank has had a hard, " up-hill" experience ever since it was char- tered, but I think it has seen its worst days. Mem.— The president of this bank is largely interested in real-estate operations, and by his friends is regarded as having made a fortune within the last few years; others again, perhaps through prejudice or spite, express doubts as to whether, less all incumbrances, he is worth much. He is obviously a very candid, honest, and lib- eral man, and also full of energy and enthusiasm. He is conducting several large enterprises, and expresses the hrmest conviction of entire success. He lives gener- ously but modestly, and is liberal in assistance to worthy objects. W. P. Drew, ^ , Kat. Bank Examiner. To the Comptroller of the Currency, Washington, D. C. [Note.— Under the head of General Remarks the examiner should mention the char- act/cr of collaterals held and give a clear description of the loans and discounts, over- drafts, stocks and bonds, other real estate, cash items, expenses, bills payable or other accommodations sought by the bank, and the necessity therefor. He should schedule all loans obtained by any corporation, company, or firm, through its stock- holders, members, officers, or employes, for the benefit and use of such company, cor- poration, or firm, as may appear from the credits such account has received, and should describe the manner and means by which such accommodations were ob- tained.] general remarks. Bad debts due from 1884-'6, 5 notes, hopeful but slow, $2,100.85. Other past-due paper: * Due 1883. William Hasse . . $1, 624. 18 S ^^il^^ ^^ "Jr^^ Keystone D.H.Johnston 4,808.91) Vinegar Works," m suit, ' ( hopeful for most * Du6 1885. Wash Fitler .... 420. 50 f ^';?^^,,*^^ !,' ^^] J ' ^"»»^^«g«i' John Murphy 467. 31 i f ^^^J 5 ^J^l • ^I^^^? \^^^' W. H. Haslet 203. 17 I ?T F'^ ^^^' P^^'' ^^P*^' t but slow * Due 1886. " Haulenbeck," order " Balfour," i offered, declined * Due 1886. "Eltonhead," order "Pfeffer," $500; pd., not credii hopeful * Due 1886. '' Franklin Bien," endorsed " J. H. Mapleson."' * Bie'n says _ he will pay when he can. Mainly a loss, probably . .1 . Due 1886. March to May, 6 notes, Lewis B. Young, own order, failed. President thinks Young's mother will pay, but doubt- ful $6, 433. 10 redited. Due 1886. Henry H. Harrison with 60 sh's ($3,000) "Duffy Malt Whiskey Co.," failed ; hopeful for a part • Due 1877. Jany. " Culbertson," order " Six ; " hopeful Due 1887. Jany. 3 notes endorsed Thomas Durham & Son ; hopeful Due 1887. Jany. to Aug. 8 notes ; hopeful for i * Due 1887. Sept. 2 notes ; hopeful Due 1887. Sept. 16. "J. H. Haverly," order C. M. " Sou'thweilV"'$2o6 paid, not credited ; doubtful for most Due 1887. Nov. and Dec. 3 notes; probably good ', Due 1887. Nov. 24. "John C. Lucas, trustee," originally (years ago) $40,000, difference jjaid, well secured by city liens on owner's proi)ertie8 in Philadelphia for improvements made, $1,350 paid on ac. during this examination; renewed balance Due 1887. Dec. 8. John C. Lucas, with 400 shares ($40,000) Spring Lake Beach Improvement Co. (stock not quoted) ; re- newed during examination ; interest paid Due 1888. 6 notes; good '..;;;; 1,090.98 1,000.00 1. 250. 00 1. 370. 01 3, 914. 55 1,300.00 325.00 2, 630. 00 1,770.77 86L09 2, 05^. 21 450.00 13,850.00 12, 500. 00 2,027.89 52,825.60 In hands of attorney and carried in " suspense ac." n i iu m'3. :i r-= 302 INVESTIGATION OF NATIONAL BANKS. Mem.— At the next dividend period the ubove list should be carefully revised, with a view of charging off all doubtful values (some $6,000 at least) before niakiug a divi- dend. .X5 T ^ Balances with other banks, including reserve agents, have been verified by cor- resi)ondence. Interest at 2 per cent is paid on some $60,000 of deposits and $40,000 bank balances. Average reserve for last 30 days, 29| pr. ct. Please see ''supplementary sheet." W. P. Drew, Examiver. To the Comptroller of the Currency, Washivglon, D. C. [Indorsed:] Please leave indorsement blank. No. of bank, 2291. Examiner's report of the Keystone Nat'l Bank, of Philadelphia, Pa. Feb. 15, 1888. W. P. Drew, examiner. Granville B. Haines, Pruident. Resources. Gideon W. Marsh, Cashier. Dollars. Liabilities. 1,251,101,60 37,800.00 1. Notes and bills discounted 2. Demand loans with collateral se curitv 3. Overdrafts j 22.938.83 4. XT. S. bonds to secure circulation* | (4 J) ] 50, 000. 00 5. U. S. Iwnds to secure deposits* i 6. U. S. bonds on hand* j 7. other stocks and bonds j 8. Premiums paid ' 2,999.32 9. Minor coins 2,508.11 10. Cash items 27.12 11. Due from national banks (27) | 118, 207. 75 12. Due from State banks and bankers (8) 13. Exchanges for clearing bouse U Checks on other banRs in s place 15. National- bank notes 16. Due from app'd reserve agents, viz: Chase Nat Bank, New York $65,253.84 Tradesmen's Nat. Bank, New York ... 9, 301 . 36 il 1. Capital stock paid in 2. Suri>lus fund 3. Other undivided profits, viz : Discount $23, 734. 33 Exohaiiye Interest Premiums Rents 88.75 Priflt and loss ' 5, 641. 95 same 17. Reserve fund in bank, viz : Fractional silver $4, 261 . 50 Silver dollars 3, 785, 00 Silver Tr'y certs 58, 659. 00 Gold coin 8,299.00 G old Tr'y certs 3, 360. 00 Legal-tender notes... 55,240.00 U.S. certs of dep 10,000.00 - C. H. certs. of dep .... 30,000.00 18. 5 p. c. red'n fund with Treas. U. S. 19. Other funds with Treas. U. S 20. Banking house, furni- ture and fixtures $10, 000. 00 16, 486. 50 85,679.42 32, 521. 11 11,635.00 74,555.20 4. Due lie to app'd reserve agents, viz : Chase Ts at. Bank, New York, coU.»^ 5. Due to national banks (6) 21 . Other real estate and mortgages . . 22. Current expenses $16, 338. 96 Taxes paid 225. 09 Exchg 411.56 Interest paid 6,226.59 173,604.50 2, 250. 00 10, 000. 00 6. Due to Stat« banks and bankers 7. Dividends unpaid 8. Individual deposits, viz : Subject to clieck.fl, 150, 438. 36 Demand certif 's . 9, 508. 39 Time certificates Certified checks Cashier's checks Dollars. 500,000.00 90,000.00 29, 465. 03 10, 343. 06 75,189.78 9. United States deposits 10. Deposits of U. S. disbursing otti- cers 11. Circulation received $45, 000 Less on hand... 1,780 1, 159, 946. 75 12. State-bank circulation outstand- ing. Cash short. 23, 202. 11 15. 24 13. Notes and bills redistounted. 14. Bills payable 6, 799. 69 507.50 4,'J, 220 Total 11,915,471.81 Cash over. Total 1,915,471.81 * Designate what U. S. bonds are held in each case. INVESTIGATION OF NATIONAL BANKS 303 [Note. — Examiners are requested to report below whether the records are fully and explicitly kept, and, if not, whether proper corrections and additions have been made during examination; whether the books are correctly kept, and how often accounts are balanced ; which officer is in charge, and if the others are active or inactive; their reputation, salaries paid, and bonds required of them; whether the officers are trained bankers and if they are engaged in business outside of the bank ; whether the directors meet regularly as a board and how often; the number of shares owned by each ; whether they have active discount and examining committees or leave management entirely to the officers ; the number and classes of stockholders and Avhether annual meeting was regular; whether the office, vault, and safe are secure, and if used in any other business than that of this bank, whether its business is kept entirely distinct and separate.] Records: Complete. Bills discounted are correct. They are proved semiannually. Other books: Very well kept. 3 individual ledgers (1,559 %) balanced monthly ; net difference to-day, $297.71 over. President : Owns 991 shares of stock. Head of large of dry goods (retail house of Granville B. Haines & Co.); at bank for an hour or two on board days, and occa- sionally on other days. Salary, $2,000. No bond. Vice-president: Henry Van Beil. Owns 300 shares of stock. A large wine mer- chant. Professes to be at bank daily, but his business causes frequent absences. A conservative officer. Salary, $2,000;' no bond. Cashier: The factotum of the bank. Owns 54 shares and is a director. A trained, diligent, popular officer. Salary, .$3,500. Bond, $25,000. Assistant cashier: John Haves. Owns no stock. Is paying teller and fully occu- pied at that desk. An efficient officer. Salary, $1,800. Bond, $10,000. Directors: 9, owning 2,619 shares of stock. Charles McFaddeu, a millionaire con- tractor (railroad) owns 700 shares. D. P. S. Nichols, horse and carriage bazaar, 350 fihs. Meet twice each week. Examine semiannually. Stockholders: 186. All have certificates of stock. Estate of John C. Luca*», late preset, dec'd, 2,689 shares. W. F. Torr, a capitalist, 750 shs. Par of shares, $50. Sell, $57. Office, vault, and safe: Elegant room in new John C. Lucas building, Chestnut St., opposite U. S. Mint. Rent paid, $13,000 ; rent rec\l, $4,000. Superior vaults and safes, time locks and watchman. DIVIDENDS AND SURPLUS (SECTIONS 5199 AND 5204, U. S. REVISED STATUTES). Date of last dividend, May 3, 1889. Amount, $ , 3 per cent. Carried to surplus, $5,000. Charged off since last examination: Losses, $ ; premium, $ ; decrease of value, 5— . LOANS AND DISCOUNTS. A. Paper with two or more individual or firm names $768, 370. 00 B. Single-name pajier (one person, company, firm, or members of a com- pany or linn) without other security 402, 683. 10 C. Loans and discounts secured by real-estate mortgages, or liens upon real estate D. Demand loans secured by other collaterals 37, 800. 00 E. Time loans secured by other collaterals 80, 048. 50 Total notes and bills discounted 1,288,901.60 Included in the above are — F. Bad debts, as defined in section 5204 of the Revised Statutes ... $8, 086. 11 G. Other suspended and overdue paper 17, 881, 75 H. Liabilities of directors (individual and firm) as payers 65, (XK). 00 LOANS EXCEEDING THE LIMIT PRESCRIBED BY SECTION 5200, U. S. RE\ ISED STAT- UTES. John Wanamaker $59,500 John Wanamaker, by H. S. Jones 50, 000 $109, 500 Granville B. Haines & Co 56,000 'ii i n U »-,,a?w«;~ J 11 . 1^u^^ ""^ general remarks, the examiner should mention the ^^»l^l of collateral held, and give a general description of the loans and dis- counts overdrafts, stocks and bonds, other real estate, cash items, expenses bi Is Wableor other accommodations sought by the bank and the necessty therefor. He should schedule all excessive loans obtained by any corporation, company oi firm, through its stockholders, members, officers or employes, for the benefit and use ?il'^'^}' "l"^^^ from the credits such account has received, or otherwise, and should describe the manner in which such accommo- dations were obtained.] «v.v.u*iiuiu INVESTIGATION OF NATIONAL BANKS. 305 Bad debts ; Demand loan, March 12, 1881, Charles E. Blummer & Co., failed, worthless $2, 929. 05 Due 1885, Feb. 18, Lewis F. Young «fe Co., failed, doubtful 675. 00 Due 1886, Dec. 18, H. H. Harrison, in suit, doubtful 1, 300. 00 Dne 1888, Apl. 10, L. L. McCann, bal. from $3,000, diff. pd., good from nine in board 2, 437. 06 Due 1888, May 1, G.B.Morse, doubtful 590.00 Due 1888, Dec. 12, C. F. Turner, good 150.00 8,08L11 Other past-due paper : Due 1887, Jany. to June, 4 notes, Thomas Durham, in assgt., hopeful. 3, 490. 00 Due 1888, May 6, The Amies Publishing House, failed, in suit, hope- ful for i from lithographic plates, etc 8, 145. 76 Due 1888, Aug., Boden $900, Oct., Keating $^116.66, hopeful, in suit. 1, 316. 66. Due 1888, Nov. 16, W. J. Kelly, in suit, hopeful 2, 040. 00 Due 1889, 7 notes, recent and good, $1,857.10, renewed during examin- ation 2,889.33 17,88L75 Mkm. — The administrators of the estate of the late John C. Lucas, deed., former i)resident of this bank, have agreed to pay off (within the next three months probably) the following discounted notes, in which he was more or less interested, and on which the interest has been regularly l)aid : Demand notes : John C. Lucas, trustee (with $13,200 municipal liens) 12, .500. 00 John C. Lucas (with 400 shs. $20,000, Spring Lake, N. J., Beach Im- provement Co.) 12,500.00 John C. Lucas' own order i, 800. 00 William Armstrong, order John C. Lucas, prest 8, 136. 00 Samuel B. Griffith, order John C. Lucas, prest 7, 278. 00 Time loans : W. H. Moyer, order James K. White 27,885.22 70, 099. 22 The administrators state that the estate will settle up for $400,000, at least, above all liabilities. My best information supports this view. Please see supplementary sheet. W. P. Drew, ^ , ^ Examinei\ To the Comptroller of the Currency, Washington, D, C, [Indorsed:] Please leave indorsement blank. No. of bank, 2291. Examiner's re- port of The Keystone Natl. Bank of Philadelphia, Penna., October 10, 1839. W. P. Drew, Examiner. 3792 ^20 I GENERAL REMARKS. Overdrafts (54ac8.): Estate John C. Lucas, late presdt., dec'd, good (see below)... $4 595 §7 Mrs. M. E. Lucas (widow of above) has $48,000 credit in other'ac' ! ' 4 049* 52 John Wannamaker, good by another ac 2 907* 63 Mrs. M. B. Wannamaker, good by another ac * " 3' 474" gn 50ac8.; estimated loss, $559. 27 '..'.'.'.....'....... 4' 910^95 22,938.83 P^H: • I:.:' * .''y I \ .IF 306 INVESTIGATION OF NATIONAL BANKS. [Use the blank linos if necossary, but do not erase or change any of the printed items.] No. of bauk, 2291. Report of the condition of " The Keystone National Bank" at Philada., in the State of Penna., at the close of business on the 18th day of July, 1890. Db. Cm. Resources. Dollars. 1 Loaus and discounts (see sched- ule) 2 Overdrafts (see schitlule) -^ . . . 3 U. S. bonds to secure circulation (par value per cents. . 4 U. S. bonds to secure deposits (par value per cents.. 5 TJ. S. bonds on hand (par value) ])er cents . - G Stocks. securities, iudgment, claims, etc., (see schedule) 1,209,719.36 916.72 50,000.00 7 Due from apjiroved reserve agents (sec srhedule) 8 Due from other National banks 9 Due from State and private banks and hankers 10 Banking house 11 Furniture ami fixtures VI Other real estate and mortgages owned (see si^hedule) 13 Current expen.ses and taxes paid. . 14 Premium on bonds for circulation, $ Premium on other U. S. bonds, $ 19 15 Check.s and other cash items (see schedule) 16 Exchanges for clearing house 17 Bills of other banks 18 Fractional paper currency, nickels, and cents '. Specie, viz : Gold coin $2,042.50 Gold treasury certifi- cates Gold deai'ing-house cer- tificates Silver dollars 8,437.00 Silver treasury certifi- cates Fractional silver coin Legal-tender notes United States certificates of de- 20 21 posit for legal- tender notes (sec. 5193, Rev. Stat.) 22 Redemption fund with U. S. Treas- urer (not more than 5 per cent on circulation) 23 Due from U. S. Treasurer (other than 5 per cent. rosit 9 Time certificates of deposit 10 Certifie«*f.— Average reserve for last 30 days (in bank and with reserve agents), was 23 per cent of deposits and bank balances. The highest rate of interest paid by the bank is 3 per cent. Overdrafts. Secured. Standing 12 months or over ti a 11 11 It o ti (1 " 1 Temporary , II Unsecured. Standing 12 months or over. II a 11 II 1 Temporary Other real estate and mortgages owned. — None. Loans and discounts, secured by mortgages or other real-estate security. — None. Committee a<]journed subject to the call of the chairman. 916. 72 l:J I ' i ■i ■1 1,1 I vl 308 INVESTIGATION OF NATIONAL BANKS. Washington, D. C, _,^ .,, Thursday^ May 19, 1892. The committee met at 11 a. m. Present: The chairman (Mr. Bacon) and Messrs. Dickerson, Town- send, Cobb, Henderson, Brosius, Cox, Sperry, Walker, and Bussey. The Chairman (to the stenographer). I will have put in evidence the following papers : Report of the Keystone National Bank, dated August 27, 1886, and marked Exhibit 1; Exhibit 1.— May 19, 1892. No. of bank, 2291. [Use the blank lines if necessary, but do not erase or change any of the printed items.] Report of the condition of ''The Keystone National Bank" at Philada., in the State of Db. Fenna,, at the close of business on the 27th day of Augustj'lSSd. Or. Kesonrces. 1 Loans and discounts (see schedule) . 2 Overdraft* • 3 U. S. bonds to secure circulation (par value) .per cents, 3 per cents . 4 U. S. bonds t<) secure deposits (par value)— per cents 5 TJ. S. bonds on hand (par value) —per cents 6 Other st^ocks, bonds, and mortgages (see schedule) Dollars. 1,208,177.14 677. 82 50,000.00 7 Due from approved reser\'e agents (see schedule) , 8 Due from other national banks 9 Due from State and private banks and bankers (see schedule) 10 Banking house 11 Other real estate 12 Furniture and ftxtures .$10, 000. 00 13 Current exi)enses and taxes paid . . 14 Premium paid on bonds for circu- lation, $ . Other premiums, $. . 15 Checks and other cash items (see schedule) 16 Exchanges for clearing house 17 Bills of other banks 18 Fractional paper currency, nickels, and cents 19 Trade dollars 20 Specie, viz: Gold coin $25,300.00 Gold treasury certifi- cates (sec. 254, Rev. Stat.) Gold treasury certifi- cates (sec. 12, act of July 12, 1882) Gold clearing-house certificates 40, 000. 00 Silver coin, dolls., 16,700; fract'l. 5,300 22,000.00 Silver treasurv certifi- cates (Act i'eb'v 28, 1878) 21 Legal-tender notes 22 United States certificates of de- posit for legal-tender notes (sec. 5193, Rev.^t.) 23 Redemption fund with U. S. Treas- urer (not more than 5 per cent on circulation) 24 Due from U. S. Treasurer (other than 5 per cent redemption fund) . 47, 577. 81 65, 043. 59 19, 990. 02 10, 000. 00 8,791.41 5, 325. 00 42, 583. 03 2, 700. 00 147. 82 2,000.00 87,300.00 88, 000. 00 40, 000. 00 3,950.00 Total 1,682,263.64 Liabilities. 1 Capital stock paid in. 2 Surplus fund 3 Undivided profits 4 Circulating notes re- ceived from Comptrol- ler Less amt. on hand and in Treas- ury for redemption Dollars. 400, 000. 00 70, 000. 00 22,460.00 5 State bank circulation outstand- ing 6 Dividends unpaid. 7 Individual deposits subject to check. .$1, 049, 389. 36 8 Demand certificates of deposit 9 Time certificates of deposit 10 Certified checks.... 11 Cashier's checksout- standing, teller's due bills 27,343.22 12 United States dej^sits 13 Deposits of U. S. disbursing offi- cers 14 Due to other national banks 15 Due to Stat« and private banks and bankers 16 Note* and bills re-discounted. 17 Bills payable 45, 000. 00 114.12 1,078,732.58 59, 568. 31 8,388.63 Total 11,682,263.64 INVESTIGATION OP NATIONAL BANKS. 309 I, G. W. Marsh, cash'r of " The Keystone Nat'l Bank, I'liiladelphia, Penna.," dosolenuily swear that _-, ._. . . ._ ^^.^^.^ the above statement is true, to the best of my knowledge and be Correct.— Attest : Statb of Penna., County of Philada: Sworn to and subscribed before me this Slst day of March, 1886. [8EAL.] G. W. Marsh, Cashier. D. P. S. Nichols, Samuel Lucas, Louis Dreka, Directors. John W. Barron, Notary Public. Must be acknowledged before an officer having an official seal.— See act approved Feb. 26, 1881. SCHEDULES. . Loans and discounts. Onpai)er with two or more individual or firm names $965,828.58 On single-name papers (one person or firm) without other security 85^ 600. 00 On mortgages and other real estate security On U. S. bonds (demand loans) !!!!.!!!!!!! On other stocks, bonds, etc. (demand loans) !.!!!.*!!!!!!!!!!!!!! On time secured by collaterals I..!!J..l!!i!J!!!I!*!,'!! 156 748. 56 Included in the above are — Bad debts, as defined in section 5204, Rev.Stat $ Other suspended and overdue paper !!!!!!. Liabilities of directors (individual and firm) as payers 1, 208, 177. 14 9,432.81 78, 724. 53 ^11 Due from approved reserve agents. Tradesman's, N. Y Hanover, N. Y $26, 563. 89 21, 013. 82 Checks and other cash items. Checks and drafts on banks, etc., in this city Checks and drafts on other banks Coupons $5, 325. 00 U. S. refunding certificates. Average reserve and interest.— A\eT»ge reserve for last 30 days (in bank and with reserve agents) was 26.53 per cent of deposits and bank balances. The highest rate of interest paid by the bank is 3 percent. x- j M 11 :t i t-r^' 310 INVESTIGATION OF NATIONAL BANKS. Eeport of the condition of the Keystone National Bank, dated Oct. 7, 1886, and marked Exhibit 2. ExmBiT 2--May 19, 1892. No. of Bank, 2291. [Use the blank lines if necessary, but do not erase or change any of the printed items.] Eepori of the condition of '' The Keystone National Bank," at Philada., in the State of Penna., at the close of business on the 7 day of October, 1886. Dr. Cb. Resources. 1 Loans and discounts (see sched- ule) 2 Overdmfts 3 V. S. bonds to secure circulation (par value) — per cents — percents. 4 U. S. bonds to secure deposits (par value) . .per cents 5 U. S. bonds on hand (par value) — per cents 6 Stocks, securities J udgment,claim8, etc. (see schedule) Dtdlars. 1,208,398.12 687.59 50,000.00 7 Due from approved reserve agents (see schedule) 8 Due from other national banks 9 Due from State and private banks and bankers 10 Banking house $ 11 Furniture and axtures . . $10, 000. 00 12 Other real estate and mortgages owned (see si'liedule) 13 Current expenses and taxes paid .. 14 Premium on bonds for circulation, $ . Premium on other U. S. bonds, $ 15 Checks and other cash items (see schedule) 16 Exchanges for clearing house 17 Bills of other banks 18 Fractional paper currency, nickels, and cents 19 Trade dollars 20 Specie, viz: Gold coin $29, 180. 00 Gold treasury certifi- cates Gold clearing house cer- tificates 50,000.00 Silver dollars 22, 400. 00 Silver treasury certifi- Fractional silver coin. 10,420.00 105, 331. 45 71, 110. 87 20, 020, 69 10,000.00 12, 369. 39 12, 969. 10 93, 704. 08 4, 780. 00 494.93 2,000.00 Liabilities. 1 Capital stock paid in 2 Surplus fund 3 Undivided profits 4 Circulating notes received from Comptroller $45, 000 Less am't on hand and in Treasury for redemption or in transit 5 State bank circulation outstanding 6 Dividends unpaid 7 Individual deposits subject to check. . $1, 120, 765. 69 8 Demand certificates of deposit 9 Time certificates of deposit 10 Certified checks 11 Cashier's checks out- standing 32,605.46 Dollars. 400,000.00 70, 000. 00 25,919.97 45,000 611.34 32,820.00 21 Legal-t«nder notes 22 United States certificates of deposit for legal-tender notes (sec. 5193, Rev. Stat.) 23 Redemption fund with U. S. Treas- urer (not more than 5 per cent, on circulation) 24 Due from U. S. Treasurer (other than 5 per cent (redemption fund. Total 112,000.00 59,000.00 30, 000. 00 2,250.00 12 Unite »-*• *» Balances due from or to approved reserve agents. From— Tradesman's, N. T. Hanover, N. Y To— $73, 383. 13 31, 948. 32 Cheeks and other cash items. Checks and drafts on banks, etc., in this city - Checks and drafts on other banks Average reserve and inter est. —Axersige reserve for last 30 days (in bank and with reserve agents) was 32.36 per cent of deposits and bank balances. The highest rate of interest paid by the bank is 3 per cent. .Ml ■>' n •r i pi'p <■ 312 INVESTIGATION OF NATIONAL BANKS. Kepoit of the condition of the Keystone Natioual Bank, dated D^ cember 28, 188G, marked Exhibit 3 : Exhibit 3— May 19, 1892. No. of bank, 2291. [Use the blank linos if necessary, but do not erase or change any of the printed items.] Repartof the comlition of " The Keystone National Bank," at Philada., in the State of Fenna., at the close of bnainesa on the 28th day of December, 1886. 3^«- CE. Resources. Dollars. Liabilities. 1 Loans and discounts (see schedule) 1,26(»,524.59 2 Overdrafts (see schedule) 892.63 3 U. S. bonds to secure circulation (par value), — percents, 3 per cents 50, 000. 00 4 U. S. bonds to secure deposits (par value), -per cents 6 U. S. bonds on hand (par value), — per cents 6 Stocks, securities, Judgments, claims, etc. (see schedule) 7 Due from approved reserve agents (see schedule) , 8 Due from other national banks 9 Due from State aiul i)rivate banks and bankers 10 Banking house $ 11 Furniture and fixtures. .$10, 000. 00 12 other real estate and mortgages owned (see schedule) 13 Current expenses and taxes paid . . 14 Premium on bonds for circulation, $ Premium on other U. S. bonds, $ Trade dollars 15 Checks and other cash items (see schedule) 16 Exchanges for clearing Iiouse 17 IJills of other banks 18 Fractional paper currency, nickels, and cents * 19 Specie, viz: Gold coin $56, 400. 00 Gold treasury certifi- cates 50, 000. 00 1 Capital stock paid in. 2 Suridus fund 3 Undivided profits. Gold clearing-house certificates Silver dollars 18, 000. 00 Silver treasury certifi- cates '. Fractional silver coin . 8, 706. 00 88, 502. 56 74, 732. 58 26, 973. 78 10, 000. 00 4, 760, 07 2,000.00 27. 884. 99 2.30, 571. 46 33, 600. 00 1, 531. 01 4 Circulating notes re- ceived from Conip- tndler $ Less am't on hand and in Treasury for re- demption or in tran- sit 5 State bank circulation outstand- ing Dollars. 400, 000. 00 80, 000. 00 9,563.97 6 Dividends unpaid 7 Individual deposits subject to check. .. $1,256,086.40 8 Demand certificates of deposit 9 Time certificates of deposit 10 Certified checks 11 Cashier's checks out- standing 81,175.46 45,000.00 4,886.00 26, 706. 00 20 Legal-tender notes 21 United States certificates of de- posit for legal-tender notes (sec. 5193, Uev. Stat.) 22 Redemption fund with U. S. Treas- lu-er (not more than 5 per cent on circulation) 23 Duo from U. S. Tn^asurer (other than 5 percent redemption fund). 133, 106. 00 80, 000. 00 20, 000. 00 2, 250. 00 12 United States deposits 13 Deposits of U. S. disbursing offi- cers 14 Due to a])proved reserve agents (see schedule) 15 Due to other national banks 16 Due to State and private banks and bankers 1,437,801.86 37, 928. 88 32, 088. 96 Total 2,047,329.67 17 Notes and bills re-discountcnl 18 Hills payable Total 2,047,329.67 thaV?i;^wf fJlifT^'fi **!" "^l'® Keystone Natl l^ank, Philadelphia. Penna.," do solemnly swear wt.!f ' ^^''^^^^"^ '''' ''"^^ ''^'^ "^^ '^^ Correct.-Attest : (j y^ m^^,„ ^„,^f^^ Gra.wille B. Haines, Louis Dkeka, d.p. s. n1cu0l.s, " IHreetoTM. INVESTIGATION OF NATIONAL BANKS. 313 S^gATE OK Pennsylva.via, County of VhiladAilphia : Sworn to and subscribe*! before me this eleventh day of January, 1887. (SEAL.! John W. Barron, Notary Public. Must be acknowleersonal securities On time, paper with two or more individual or firm names $1,055,869.31 " " single-name paper (one person or firm) without other security 85, 926. 37 •' " secured bv collaterals 118, 728. 91 " " on mortgages and other real-estate security sanctioned by sec. 5137, R.S. (see schedule) " " on moi't gages and other real-estate security not sanctioned by sec. 5137, R. S. (see schedule) Total 1,260,524.59 Included in the above are- Bad debts, a.s defined in section 5204, Rev. Stat Other suspended and overdue paper 7, 532. 61 Liabilities of directors (individual and firm) as payers 43, 788. 06 Baldnces due from or to approved reserve agents. From— To- Tradesman's. N. Y $55, 635. 21 32, 807. 35 Hanover N. Y. ...... ...... ........... Checks and other cash items. Checks and drafts on banks, etc., in 1 t iiis city j $27, 884. 99 Checks and drafts on other banks Average reserve and interest.— Axerage reserve for last 30 days (in bank and with reserve agents) was 2.^>.45 per cent of deposit and bank balances. The highest rate of iuterest-^paid by the bank is 3 per cent. ^.1 u 9 i J ♦■"el Tp i jiitj i n^. - |i m •:*. I ) r ■ 314 INVESTIGATION OF NATIONAL BANK8. Eeport of the condition of the Keystone Kational Bank, dated March 4, 1887, and marked '' Exhibit 4.^ P:xhibit 4--May 19, 1892. No. of bank, 2291. [Use the blank lines if necessary, but do not erase or change any of the printed items.] Report of the condition of the Keystone National Bank, at Philadelphia, in the State oj Pennsylvania, at the close of business on the 4th day of March, 1887. Db. Cb. Resources. 1 Loantt and discountet (see schedule) . Dollars. 1,318,932.83 Liabilities. Dollars. 2 Overdrafts \ i, 148. 91 3 U. S. bonds to secure circulation I 1 Capital stock paid in. (par value) per cents 4 U. S. bonds to secure depiosits (par value) per cents. . 5 IT. S. bonds on hand (par value) per cents 5 other stocks, bonds, and mortgages (see schedule) 50.000.00 7 Due from apj)rove "" owioiuHiy aw«ir f^^r^^r,*^ A*+^^* • G. W. Marsh, Ganhier. torrect-Attest. Granvillb B. Haines, D. P. S. N1CH01.8, Louis Dbeka, Directort. INVESTIGATION OF NATIONAL BANKS. 315 State of Pknnsvlvania, County of Philadelphia, st: Sworn to and subscribed before me this tenth day of March, 1887. [8BAI..] / John W. Barron, Notary Ptiblie. Must be acknowledged before an officer having an official seal. See act approval Feb. 26, 1881. SCHEDULES. Loans and discounts. On paper witb two or more individual or Ann nanies-. -- ^^'^?' 639 79 On single-name paper (one person or firm) without other security vi,wy. iv On mortgages and other real-estate security On U.S. bonds (demand loans) On other stocks, bonds, etc. (demand loans) All other loans Total Included in the above are- Bad debts, as defined in section 5204, Rev. Stat Other suspended and overdue paper Liabilities of directors (individual and firm) as payers 1,318,932.83 15,693.22 57, 288. 06 Due from approved reserve agents. Tradesmans, N. Y Hanover, N. Y 59, 329. 77 24, 611. 87 Checks and other cash items. Checks and drafts on banks, etc., in this city Checks and drafts on other banks Coupon s $32,377.96 U. S. refunding certificates. Averaae reserve and inUrest.-AxeTnge reserve for last 30 days (in bank and with reser^^e agents) was I7 per cJnt^dep^ite and bank baltnces. The highest rate of interest paid by tli« banT. is i per 27.07 per cent. V; 1 -i. • y f-j ' 316 INVESTIGATION OF NATIONAL BANKS. Report of the Keystone National Bank, dated May 13, 1887, marked Exhibits.- Exhibit 5— May 19, 1892. No. of bank, 2291. [IJsft the blank lines if necessarj-, bnt do not erase or change any of the printed Items. Eeport of the condition of ''the Keystone National Bank," at Philadelphia, in the State of Penn., at the close of busineaa on the ISth day of May, 1887. Db. Cb. Resources. Dollars. 1 Loans and discounts (see schedule) 2 Overdrafts 3 U. S. bonds to secure circulation (par value) 4 U. S. bonds t« secure deposits (par value) 5 U. S. bonds on hand (par value) 6 Other stocks, bonds, and mort- gages (see sclit'dule) , . 7 Due from approved reserve agents (see schedule) 8 Due from other national banks . . . 9 Due from State and private banks and bankers (see schedule) , 10 Banking house $ 11 Other real estate $ 12 Furniture and fixtures .. $ 1,327,473.88 231.00 50,000.00 Liabilities. 1 Capital stock paid in 81, 987. 99, 93S. 99 61 18 Current expenses and taxes paid . . 14 Premium paid— on bonds for cir- culation $ $ -on bonds for cir- Other premiums 15 Checks and other cash items (see schedule) 26, 442. 30 2 Surplus fund 3 Unuivided jirofits Dollars. 4 Circulating notes received from CJoujptroller Less ain't on hand and in Treasury for redemp> tion 10, 000. 102. 00 17 16 Excliauges fur clearing house . . . 17 Bills of other banks 18 Fractional paper currency, nickels, and cents 19 Specie, viz : (lold coin $30,865.00 Gold Treasury certifi- cates (sec. 254, Rev. Stat.) Gold clearing-house certificates $40, 000. 00 Silver coin, dollars, $1,200, frac, $3,616 . .$15, 616. 00 Silver Treasury certi- ficates (act Feb'y 28, 1878) 3, 532. 19 96, 073. 58 4, 595. 00 507.49 5 State bank circulation outstanding 6 Dividends unpaid 400,000.00 80,000.00 4, 120. 63 7 Individual deposits subject to check ...$1,191,490.50 8 Deniauense8 and taxes jMud . . 14 Premium paid on Imnds for circu- lation, $ . Other premiums, $ 15 Checks and other cash items (see schedule) 16 Exchanges for clearing house 17 Bills of other banks 18 Fractional paper currency, nickels, and cents 19 Si)ecie, viz: Gold coin $10,340 Gold treasury certifi- cates (sec. "254, Rev. Stat.) Gold clearing-house cer- tificates... 30.000 Silver coin— dolls., 9,000; frac., 5,127 14,127 Silver treasury certifi- cates (act Feb'y 28, 1878) 20 Legal-tender notes 21 U. 8. certificates of deposit for legal-tender notes (sec. 5193, Rev. Stat.) ^ Redemption fund with U. S. Treas- urer (not more than 5 per cent, on circulation) 23 Due from U. S. Treasurer (other than 5 per cent redemption fund) . Total Dollars. 1,303,193.27 42L90 40, 000. 00 100, 505. 04 80, 427. 70 18,816.06 10, 000. 00 6, 497. 72 Liabilities. 1 Capital stock paid in 2 Surplus fund 3 Undivided profits 4 Circulating notes received firom Comptroller Less am't on hand and in Treasury for re- emption Dollars. 400,000.00 80, 000. 00 17, 0915. 39 5 State bank circulation outstand- ing 6 Dividends unpaid 3, 908. 41 54, 546. 70 2,860.00 556.36 7 Individiuil dejwsits subject to check . . $1,138,329.72 8 Demand certificates of deposit 9 Time certificates of deposit 10 Certified checks /. . . 11 (Cashier's checks out- standing 105,585.97 45. 000. 00 938.50 12 United States deposits 13 Deposits of U. S. disbursing offi- cers 54, 467. 00 93, 000. 00 30,000.00 2, 250. 00 1,811,450.16 14 Due to other national banks 15 Due to State and private banks and bankers , 1, 243, 915. 69 18,246.16 6, 256. 42 16 Notes and bills rediscounted. 17 Bills payable Total 1,811,450.16 I, G. W. Marsh, cashier of " The Keystone Nat. Bank, Philadelphia, Penn.," do solemnly swear that the above statement is true to the best of my knowledge and belief. ■, G. W. Masse, Gathier. Correct— Attest: Granville B. Haines, Samuel Lucas, D. P. S. Nichols, JHreetors. INVESTIGATION OF NATIONAL BANKS. 319 State of Pennsylvania, County of Philadelphia : Sworn to and subscribed before me this 8th day of August, 1887. ^ ^ ^. rawAi 1 John W. Barron, ^^^^'i Notary Public. Must be acknowledged before an officer having an official seal.— See act approved Feb. 26, 1881. SCHEDULES. Loans and discounts. On pwjer with two or more individual or firm names $1. 167, 189. 32 On single-name paper (one person or firm), without other security 13b, 003. 85 On mortgages and other real-estate security On U. S. bonds (demand loans) On other stocks, bonds, &c. (demand loans) All other loans 1, 303, 193. 27 Due from approved reserve agents. Tradesman's N.Y ^S?iH? Hanover 32, 291. hi Average reserve and interest.— AvevAse reserve for last 30 days (in bank and with reserve agents) was 25/y^ per cent of deposits and bank balance. The highest rate of interest paid by the bank is 3 per eeut. 320 INVESTIGATION OF NATIONAL BANKS. r \~ Eeport of the Keystone National Bank, dated October 5, 1887, marked Exhibit 7: Exhibit 7— May 19, 1892. No. of bank, 2291. [XJBe the blank lines if nccessarj-, but do not erase or change any of the printo^l items.] Eeport of the condition of the Keystone National Bank, at Philadelphia, in the State of Pennsylvania, at the close of business on the 5th day of October, 1887. ^R- • Cb. Resources. 1 Loans and discounts (see schedule) . 2 Overdrafts 3 U. S. bonds to secure circulation (par value) 4 IT. !^. bonds to secure deposits (par value) ...* 5 U. S. bonds on baud (par value) 6 Other stocks, bonds, and mortgages (see schedule) Dollars. 7 Due from anproved reserve agents (see schedule) 8 Due from other nationid banks 9 Due from State and private banks and bankers (see schedule) 10 Banking house $ 11 Other real estate 12 Furniture and fixtures.. 13 Current expenses and taxes paid . 14 Premium paid : On bonds for circu» lation, $ ; other premiums, 1,322,294.48 1, 394. 82 50, 000. 00 85, 437. 21 53, 115. 02 27, 285. 39 10, 000. 00 14, 526. 27 15 Checks and other cash items (see schedule) 16 Exchanges for clearing hou^e 17 Bills of other banks 18 Fractional paper, currency, nickels, and cents 19 Specie, viz: Grold coin $26,000.00 Gold Treasury certifi- cates (Sec. 254, Kev. Stat.) Gold clearing - house • certificates 30, 000. 00 Silver coin, dolls., 14,000; frac'l, 4,880 18,880.00 Silver Treasury certifi- cates (act Feb'y 28, 1878) 5, 983. 36 120, 6:J9. 01 11,400.00 286.47 20 Legal-tender notes 21 U. S. certificates of deposit for le- gal-tender notes (Sec. 5193, Rev. Stat.) 22 Redemption fund with U. S. Treas- urer (not more than 5 per cent on circulation) 23 Due from U. S. Treasurer (other than 5 per cent redemption fund) . Total 74, 880, 00 90, 120. 00 20, 000. 00 2,250.00 1,889,612.03 Liabilities. 1 Capital stock paid in 2 Surplus fund 3 Undivided profits. Dollars. 4 Circulating notes re- ceived irom C o m p - troller $ Less am't on hand and in Treasury for re- demption . .' 5 State bank circulation oatstandinjr 6 Dividends unpaid 7 Individual deposits subject to chock . . .$1,114,133.09 8 Demand certificates of deiKMiit 9 Time certificates of deposit 10 Cert ifieil checks 11 Cashier's checks out- standing 140,845.72 400,000.00 80,000.00 30, 023. 66 45, 000. 00 844 12 United States deposits 13 Deposits of U. S. disbursing officers 14 Due to other national banks 15 Due to State and private banks and bankers 16 Notes and bills re-discounted. 17 Bills payable 1. 254, 978. 81 6, 171. 36 72, 594. 20 Total 1,889,612.03 I, G.W. Marsh, cash'r of " The Keystone National Bank, Philadelphia, Penna.," do solemnly swear that the above 8tat«ment is true, to the best of my knowledge and belief. -, . . ^^ ^ G. W. Marsh, Cashier. Correct— Attest : Ghanville B. Hainbs, D. P. S. Nichols, Ht. Van Beil, State of PK?rNsyi,VANiA, County of Philadelphm: Sworn to and subscribed before mo this thirteenth day of October. 1887. [8BAL.] John W. Barron, Notary Public. Mnst be acknowletlged before an official having an official seal. See act approved Feb. 26, 1881. INVESTIGATION OF NATIONAL BANKS. 321 SCHEDULES. Loans and disccunts. On paper with two or more individual or firm names $1,170,358.85 On single-name paper (one person or firm) without other security 151,935.63 On mortgages and other real estate security On U.S. bonds (demand loans) On other stocks, bonds, et<5. (demand loans) AH other loans Included in the above are — Bad debts as defined in section 5204, Rev. Stat Other suspended and overdue paper Liabilities of directors (individual and firm) as payers. 1, 322, 294. 48 31, 325. 47 58, 124. 53 Due from approved reserve agents. Tradesmen's Nat. B'k 64,182.31 Hanover Nat. B'k 21,254.90 Checks and other cash items. •■1,} I j Checks and drafts on banks, etc., in this city Internal-revenue stamps Coupons $5,983.36 U. S. refunding certificates Average reserve and interest. — Average reserve for last 30 days (in bank and with reserve agents) was 25.34 per cent of deposits and bank balance. The highest rate of interest paid by the bank is 3 per cent. A report of tlie dividends and earnings of the Keystone National Bank for six months ending April 30, 1888, marked Exhibit 8: Exhibit 8. No. of bank, 2201. No. of div., 5. Peport of earnings and dividends of the Keystone National Bank, located at Philadelphia, in the State of Penna., for the period of 6 months ending April 30,1888. Declared May 1, 1888. Payable May 1, 1888. 1. Gross earnings since last report ^31, 307. 58 2. Other protits realized since last report Total profits of last six months to be accounted for other than surplus fund 31, 307. 58 Deduct — 3. Premiums on bonds charged off since last report 4. Losses, decrease of values, bad debts, &c., charged off since last report 5. Expenses an5.47 *6. Net earnings and protits of past six months 11, 242. 11 Add— 7. Undivided profits brought forward from last report 20, 363. 42 8. Total of all profits : 31,605.53 Disposition: 9. Carried to surplus fund (not less than one-tenth of item 6, unless surplus is already 20 per cent of cap- ital) 10. Dividend of 3 per cent (on capital $400,000) 12, 000. 00 11. Amount of net profits undivided, to be carried for- ward 19,605.53 Deduct — 12. Amount withdrawn from surplus Total net profits (same as item 8) accounted for 31, 605. 53 * In case the loss exceeds the profits for the six months, the amount should be en- tered in red ink. 3792 ^21 322 INVESTIGATION OF NATIONAL BANKS. 13. Total profits as national bank Bince organization (less oxpensos, preniinnis, losses, &c.) $154, 270. .%0 14. Add profits of old organization at date of conversion. . . 11, 056. 03 f la^ 335. 53 15. Total dividends since organization as national bank 6.5, 730. 00 16. Total surplus fund proper at date of this report 80, 000. 00 17. Total other profits on hand (same as item 11 or this report) 10, 605. 53 165, iiSn. .53 *18. Net profits since last report (same as item 6), $11,242.11. State of Pknna., County of Phila.: If Gideon W. Marsh, cashier of the above-named bank, do solemnly swear that the above statement is true to the best of my knowledge and belief. [seal.] G. W. Mak8H. Cdshier, Sworn to and subscribed before me this 9th day of August, 1888. [seal.] John W. Bakuon, JVo/ary r»hHc. Report of the dividends and earnings of the Keystone ^National Bank, dated Oct. 31, 1888, marked Exhibit 9: Exhibit 9. No. of bank, 2291. No. of div., 6. JReport of earnings and dividends of the Keystone National Hank, located at Philadelphia, in the State of Penna., for the period of six months ending Oct. 31^ 1888. Declared Xov. 1, 1888. Payable Nov. 1, 1888. 1. Gross earnings since last rej>ort $34, 613. 80 2. Other profits realized since last report Total profits of last six months to be accounted for other than surplus fund 34,613.80 Deduct — 3. Premium on bonds charged off since last report 4. Losses, decrease of values, bad deb'ts, &c., charged off since last report 5. Expenses and taxes charged off and interest paid since lastreport $14,865.97 14, 865. 97 *6. Net earnings and profits of past six months 19, 747. 83 Add— 7. Undivided profits brought forward from last report 19, 605. 53 8. Total of all profits 39,353.36 Disposition — 9. Carried to surplus fund (not less than one-tenth of item 6, unless surplus is already 20 per cent of capital) 10. Dividend of 3 per cent (on capital $4(X),000) 12, 000. 00 11. Amount of net profits undivided, to be carried for- ward 27,353.36 Deduct — 12. Amount withdrawn from surplus Total net profits (same as item 8) accounted for 39. 353. 36 13. Total profits as national bank since organization (less expenses, premiums, losses, etc. ) 174, 027. 33 14. Add profits of old organization at date of conversion 11, 056. 03 185,083.36 15. Total dividends since organization as national bank 77, 730. 00 16. Total surplus fund proper at date of this report 80, 000. 00 17. Total other profits on hand (same as item 11 of this report) 27, 353. 36 185, 083. 36 *18. Net profits since last report (same as item 6), $19,747.83. ^lu case the loss exceeds the profits for the six months, the amount should be entered in red ink. INVESTIGATION OF NATIONAL BANKS. 323 State of Pknna., County of Philadelphia: I, G. W. Marsh, cashier of the above-named bank, do solemnly swear that, the above statement is true to the best of my knowledge and belief. [SEAL.] G. W. Marsh, Cashier. Sworn to and subscribed before me this 16th day of February, 1889. [SEAL.) John W. Barron, Notary Public. TESTIMONY OF EDWARD S. LACEY— Recalled. Edward S. Lacey recalled and further examined. By the Chairman: Q. Have you here this morning copies of letters which were ad- dressed to the gentleman in charge of the correspondence in your Bu- reau? — A. I have. Q. Will you please read them! Letters produced and read. Letter, dated April 22, 1892, to B. Z. Perkins, chief of the organiza- tion division: Exhibit 10. Treasury Department, Office of the Comptroller of the Currency, Washington, D. C, April 22. 1892. Mr. E. Z. Perkins, Chief, Organizatimi Division: Sir: You will proceed with all possible dispatch to prepare verified copies of all <(»rrespoudence and documents in your division relating to the Keystone National Bank, covering its organization and its several increases of capital, as well as all other matters in connection with said bank. • Very respectfully, £. S. Lacey, Comptroller. Letter dated April 22, 1892, to G. M. Coffin, chief of the division of reports. Exhibit 11. Treasury Department, Office of the Comptroller of the Currency, „ « „ ^ Washington, D. C, April 22, 1892. Mr. G. M. Coffin, ' Chief, Division of Reports: Sir: You will proceed with all possible despatch to prepare verified copies of all reports of condition and all reports made by examiners in connection with the Key- stone National Bank of Philadelphia, from januarv 1, 1886, to July 15. 1891. Also of all letters to and from this oflice relating to said bank, to the examiner and to the receiver thereof, from Januarv 1, 1886, to July 15, 1891. Very respectfuUy, • ' e. S. Lacy. , Comptroller. Letter dated April 22, 1892, addressed to W. W. Eldridge, chief of the division of issue. Exhibit 12. Treasury Department, Office of the Comptroller of the Currency, \f,. w w V Washington, D. C, April 22, 1892. Mr. W. W. Eldridge, Chief, Division of Issue : Sir: You win prepare with all possible despatch verified copies of all letters to ana irom this oftice and of all documents received relating to the Kevstone National 1 i^'"^^^t"i *VJ'?1!^'? *"''**^ ^^^^*^ 1, 1874, to September 1,1875; also from January 1, 1886, to July 15, 1891. ^ Very respectfully, £. g. Lacey, Comptroller, •I V r 'i 324 INVESTIGATION OF NATIONAL BANKS. Letter dated April 22, 1892, addressed to T. O. Ebaugh, general book- keeper. Exhibit 13. Mr. T. O. Ebaugh, General Bookkeeper: Treasury Department, Office of the Comptrolf.eu of the Currency, Washington, D. C, April 22, 1892, Sir: You will prepare a complete transcript of the accounts on your books relating the affairs of the Keystone National Bank of Philadelphia from its organization to the present date. Very respectfully, E. S. Lacey, Comptroller, Letter dated April 22, 1892, addressed to C. J. Stoddard, iu charge of insolvent banks. Exhibit 14. Treasury Department, Office of the Comptroller of the Currency, Washington, D. C, April 22, 1892. Mr. C. J. Stoddard, [n Charge of Insolvent Banks: Sir: You will proceed with all i)ORsil»le despatch to prepare rerificd ro]des of all letters to an'KSTIGATION OF NATIONAL HANKS. TESTIMONY OF T. 0. EBOLB. T. O. Ebold, swoni and examined. By the Chairman: Q. Did you receive a letter addressed to you by the Comptioller uuder date of April 22, 1892, and being Exhibit 13, of this date, call- ing for transcii|»t of accounts? — A. I did. Q. Did you jirepari- the accounts <'alled for by that transcript! — A. I did. I made a statement of everything expressed in the inquiry. Q. And did you furnish them to the Comptroller*— A. 1 gave them to Mr. Kane. Q. What you gave him was a complete transcript, as called for by thatletterf— A. Yes, sir; bonds and circulation. A transcript of all the account. TESTIMONY OF T. B. KANE. Mr. T. B. Kane, sworn and examined. By the Chairman : Q. You are private secretary to the Comptroller of the Currency!— A. I am. Q. Did you receive from him instructions to prepare certain copies of papers on file in his office in reference to this investigation f— A. I did. . - Q. You have heard him testify as to those instructions this morning? — A. Yes, sir. Q. Did you ])repare the copies ? — A. I prepared some and had others prepared by other clerks. Q. Under your supervision? — A. Yes, sir. Q. They were certified and delivered to the Comptroller!— A. Yes, sir. Q. Mr. Eldridge has testified that he gave you certain papers for certification! — A. Yes, sir. Q. Did you certify them!— A. I had them certified. Q. Under your supervision? — A. Yes, sir. Q. Mr. Eb'augh has testified to delivering certain papers to you?— A. Y'es sir Q. Were they certified and delivered to the Comptroller!— A. Yes, sir Q. You furnished to the Comptroller all the papers that came to you -from Messrs. Hbaugh and Eldridge and all that were called for!— A. Yes, sir. TESTIMONY OF EDWAED S. LACEY— Continued. Mr. Edward S. Lacey, examination resumed: By the Chairman : Q. Have you here this morning a copy of the rejiort of the examina- tion of Mr. Drew of the condition of the bank at the time he took pos- session!- A. 1 transmitted it to the chairman yesterday, and it is with these papers; it is the last one. Q. Is that the document [handing pai)er to wituessj!— A. This paper INVESTIGATION OF NATIONAL BANKS. 327 1 havT in my hand is a copy of the original schedule of assets of the Keyst/Oue National Bank of Philadelphia, made by Mr. Drew, national bank examiner, showing the assets coming into his hands on March 20, 1891. (Witness produced a document which is put in evidence, marked Exhibit 15, of this date.) ■')i Exhibit 15. Philadelphia, Pa., June 2, 1891. Hon. E. S. Lacey, Comptroller of Currency, Washington, D. C. : Sir: I forward this day to your office schedules of assets of Keystone Nat. Bank and receipt for assets turned over by me to the receiver. Very respectfully, W. P. Drew, Nat. Bank Examiner. Liit of schedules. A. Overdrafts. B. Bills discounted. C. Due by banks. D. Cash items in deposits received March 20th. E. Country checks in deposits. F. Cash on hand when bank closed. G. Cash items. H. Due bills outstanding. I. Deposits in Am. 3-20. J. Individuals' deposits. K. Due to banks. L. Certificate of deposits. M. Amt. due by banks collection ac- count. N. Amt. due by banks account B. D. O. Amt. collections paid. P. Amt. overpaid by banks. Q. Overdrafts paid. R. Bills discounted paid. S. Received from banks. T. Amt. due by banks. U. Returned items. V. Collections paid. W.OffsettsouB. D. X. Expenditures. Y. New York drafts outstanding. Amounts charged to hanks. A8heville,N.C Batavia,N.T Baltimore, Md Boston, Mass Camden, N.J Chester, Pa Chicago, 111 Frankford, Phila (Jermantown, Philn Hanisburg, Pa Integrity T. Ins. and T. Co., Phila. I^ancaster, Pa Miinayunk, Phila Media, Pa Northwestern Nat. Bk., Phila Pottsville, Pa Pottstown, Pa lii-adiiig, Pa Ri«limond, Va * Pittsburg, Pa !..i!"!I Scranton, Pa *". !!!!!!!!*! Washington, D. C. . . . .......! ..'*'.'. Wheeling, \V. Va West Phila. Bk Westchester, Pa Wilmington, Del Norri.stowu, Pa '.'..'.'.'. Tradesmen's Trust Co .'. Chase.N.Y Industrial Trust Co '..'.'.'. '. '.....'. Atlantic City Doylesto wn,' Pa . . . . ! 1 . * ! Western Carolina Bank. . . . Bank of Batavia Citizens' Nat. Bank Nat. Bank of Commerce . • . Nat. State Bank Del. Co. Nat. Bank Fort Dearborn Nat. Bank . . 2nd Nat. Bank Nat. Bank of Grermantown. First Nat. Bank Reed, McGran &. Co. Manayunk Bk First Nat. Bk SafeDep.Bk Nat. Iron Bk Keystone Nat. Bk . . First Nat. Bk M. & M.Nat. Bk... ThirdNat.Bk Crane, Parris & Co. German Bk Farmers' Nat. Bk . Union Nat. Bk First Nat. Bk A. C. Nat. Bk Doylestown Nat. Bk. $103. 37 313.01 161. 76 2, 153. 19 2, 914. 33 263.25 8, 005. 51 203.94 958.66 239. 50 26.00 817. 63 96.25 340.22 7.50 119, 01 103. 00 207. 52 62.90 195.00 87.15 116. 10 5.00 219.50 19.90 466.29 368.29 443. 42 971. 83 66.00 25.00 31.03 ■20,355.86 328 INVESTIGATION OF NATIONAT. BANKS. Overdrafts from Schedule A. Arthur, R. A $149.99 Askiii, H 331.00 Auiberlv, Geo 3.98 Briuly, H.J 1,287,71 Bardslcv, Jiio 34, 088. 52 Batf('rsi»y, J . M .05 BaiTou, J no 150. 78 BiaWford, J.M 4.00 Bearh House 4, 879. 42 Billon, C. K 42.55 Bo»l>vHbelI, O. C X.li) Brown, II W8 181.00 Brown, rhas 27. G9 Bowman, H. L.,.jr 18.30 BiickluMstor, Fauuie 4. .50 Biirke, P.C .79 Biin^au Car Co. No. 1 4,iK)0.00 Crawfonl, i.. F 2. 72 Catharine, J. W 23. 25 Cams, Koht 1, 4(»7. 33 Canliv, (ieo 2.01 Col 1 u-r, Sara li E 2:^. 49 Calhonn, Wni 254. 89 Cnilnni. li. S .91 Cnniniinojs, G.E 39.32 Cruniji, Sarah R 1, 198. 85 Crump, H.J. & G.R 7,6:^1.3:^ Cnini]», Jno 3,772.94 Davis, Kdw.T Devon inn DenoI.i,R.H ... Dukson, Jas Ellis, H.C Greer, .I.N Gertih^, Fred Grimth,AnnaE . Goldberg, B. M . . Harrison, Jos. S.. Hanuington, E. S Harvey, Geo. L .. Harris, J. Smith 3, 204. 32 67,9wry, P .05 LesleV, E. W 21. 77 Lowrv, A. A 44. S5 Lucas, L. C, est 10, 359. 29 Lucas, M. Eliz 11,744.94 Luras, Samuel 'Mi. 03 Lne, C. H 62. 15 Moon, Wm. H 58. .50 M umjier, M. A 535. 'ATt Nolan & Bros 19. 80 O'Donm-ll, E 8(). 0<» H to O Ledger Pettv Overdra Its 2. 71^5. 5« Pattison, J. B *. 46. 19 I'a tt on, Ed w. W 2, 1 46. 26 Patton,LP WJ1.80 Preston, G. R., jr 1. 75 Ridley Building Association .. 378.25 Shaw,W.F 2:^.96 Sargent, W., jr . 5. 21 6.5.71 145.00 150.00 255.15 140.06 282.00 70.02 606.50 135.00 101.50 255.15 25.40 300.00 85.00 55.25 500.00 50.16 400.00 290.00 140.00 50.00 113. 40 280.00 I '■A ^'^ 330 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION 01^ NATIONAL BANKS. 331 f lii Ke09totte Xational Bankf Philadelphiay Pa. Bills diHcounted, being part of Schedule B of hilU reoeitmble receipted for by receiver — Continued. A. H. Bntter worth... Excelsior Hosiery Co Tlioti. H. Parks J ohn Love D. Chambers Noblit Bros. &Co.... Jno. F. Vanloer, jr. . . tlaoob D. Lit B. K. Esler Wilson £. Allen Henry G. Irvine Chaa! W. Glenn, sr J. H. Hathaway &. Co... Wortman & Avis A, M. Zane Clinton V. B. Getty Cox & Sons Philip Caffery Jac;ob Myers , H. W. Avis Preston l*rice John Smith. Belair Fletcher Pearson H. Jackson Lemon M . Spackman J'. D. Jones C. T. Davis "Wm. Galloway Jas. R. Thompson Jas. F. Canfiehl CollinaBros., tJoliimbus. O. A. AV. Turn.r & Co., Ma- con. David Hood Do E. D. Dougherty G. F, Lowry Jno. G. Divine , F. Strate and Son ( )ldach & Co Marie Brolaskey Alpha S. I)elis.sa H. HeilbonerSchnecdady . H. J. and G. K. Crump Do I>o Richd.S. Collum , J. K. Shoemaker B. A. Stretsfh W. S. Emerson G. F. Stholler F. A. Davis , Jno. O. liownian B. K. Esler J ames H. Clark "W. J. Simmons Phila. Carriage & H. Co . . . Jno. J . Pyle Th(»ma.s S'utle & Son E. S. Simmons & Co., Bir- rainjxham, Ala. M.Taft, Omaha Oliver R. Bair Chas. S. Salin , W. J . Jackson Ellen S. Toplis Henry E.D.'Trymby A. Vauier 1). M. Stackhouse flames B. Harner James Hart, Bait Thos. Betta, ( ii>ruitn Sallie M. Baker , Joshua Bartley Chas. R. Colwell T.J.Dunn & Co Excelsior Hosiery Co. . , H. A. Cleverly John Love , D. Chtunbers D. & J. C. Noblit Si Co . Jno. F. Vanleer, Jr Leon Isaacs & Co Philada. Towel Supply & L. Co. H. H. Yard L. W.Walsh J as. Seddons Sons E. S. Bartel & Co McLear & Kendall Jno. W.Ward &Co..., C. V. B. Getty Chas. C. Torr Henry Mcfiugh Jacob Myer Deakym*& Pennypa0. 00 55.00 181.30 50.00 1,000.00 250.00 268.92 120.00 280.00 171.00 200.00 425.16 175.00 300.00 .46. 44 1,000.00 200.00 3, 000. 00 133.00 5, 000. 00 5, (MR). 00 5,000.00 10(».00 500.00 345.00 75.00 293.45 2, 000. 00 210.00 666.66 252. 62 250.00 1,500.00 510. 00 400. 00 290.00 142. 50 300.00 50.00 3, 327. 42 750. 00 20(».00 3,000.00 208.25 600.00 150.00 100. (K) 150. 00 300.00 100.00 3,000.00 468.78 400.00 300.00 100.00 150.00 Pd.4-1. Pd.4-1. Pd.4-3. Pd. 4-3 on account. Pd.4-4. Pd.4-4. Pd.4-8. Pd. 4-11 $160.00 100.00 125.00 126.07 55.00 50.00 120.00 280.00 Pd.4-7 Pd.4-7 Pd.4-9 Pu. 4-8 Pd.4-8 Pd. 4-9. Pd. 4-16 Pd. 4-13 Pd.4-10 Pd.4-13 Pd. 4-14 Pd. 4-13 Pd. 4-13 46.44 3,000.00 133.00 100.00 75.00 400.00 290.00 142.50 50.00 208.25 100.00 150.00 100.00 •/ Keystone National Bank, Philadelphia, Pa. Bills discounted, being part of Schedule B of bills receivable receipted for by receive*'— Continued. L. H. Patterson Jno. Kinney * Jno. O.Bowman E. R. Brvan, Wmspt Excelsior Hosiery Co F. A. Davis W. J. Jackson &. Co Jno. G. Salter Saml, J. Dickey Frank E. Morse W.Geisl M.Gallagher F. O. Goodwin W. J. Thompson, Camden. B. F. liauer David Greer Wm. B. (Jreer John J. Pyle Alfrwl I). Cams AV. H. Jones - Quinton Corwin Charles S. Saline Abr. B.Paul H. S. Morrison & Co., Pe- ters buri', Va. Timothy J . Donovan W. E. riering Edw. E. Rockwell M. M. Coppuck W . D. l*ri(!e Edmond C. Hill F. W. Lawrence -. W.B.Greer W.W.Ker AVm. AuUl Excelsior Hosiery Co Vicento Portuondo C. M. and R. Tompkins, Elmira. S. Arthur Love, treas Jno B. Dvott Wilbur rt. Myers Richanl Hazard J.W.Baker Wm. Calhoun John Mais Reynobls, Goodj'ear & Co., Syracuse. W.J. Jackson & Co A. G. Clemmer Henry Van Biel & Co W. J! Jackson & Co ..... R. W.Montgomery Rylaiul Hamilton Fredk. Strate & Son Ivan Mueller...: J. B. Demphev C. M. & r: Tompkins, Klmira. Isaac Taylor & Son Manr C. "Mullen H. w . Kelsey , treas B. F. Barnes John A . Truitt Saml. R. Mink Cihas. White Geo. Myei-s,jr McBri((o liros B. K. Esler E.S. Bartel & Co Jno. Craig & Son Jno. O. Bowman A. J. Smith, C. V. Laf- erty. Excelsior Hosiery Co . . A. R. Thomas R. A.Jackson J.G.Salter J. Rej'nolds & Son ...... C. F. Schtjolman .... Mc Lean & Kendall M. Gallagher E. S. Bortel & Co T.J.I)unnupplv and L. Co Henry Mcllnjib Cei^ral Market Co Chas. O'Neill Juo. O. Bowman < 'entral Market Co T.J.Dunn & Co Apl. 25,26 25,26 27 G.W.M 28 29 30 .Jno. Craig & Son J. W. lioughton Emma ( ,. I Jecd A . R. Thomas Geo. R. Crump Chas. C. Farr Excelsior Hosiery Co.. Chas. C. Farr R. M. Braithwait & Co. Jno. .T. Pvle Anu)s Kllis Geo. W. Close W. J. Simmons McLear & Kendall Sliowell& Fryer, Llim. Kelsev ( )riental Uath . . . H. A.(;lcv,^rly W. E. Hering Geo. W. ('b»tbier MattbcAV Hall T.J.Dunn \ Co A. M. Zane Allen, Dumas & Thomp son, Macon, Ga. Jas. C. Black , L. B. Mawson, Yardley, Pa. > W. T. Wilson . . . Bernard McHugli Henry McHugh P.A.Davis A. R. Thomas .. Jno. C. Allen Jno. F. Hillmau Jos. McMenamin j Henry M. Hugh Krirerick & Traunrer Jos. H. Field May May 2, 3 Jos. H. Field T.J.T«Mld Edgar N. Black Otto Wand W. B. Hutchinson Jas. S. Cantield Jas. M. .laittcs ] - • • - Jas. T. Wilson ' J. J- Salter Geo. E. Dearborn C. A. Kingsbury La Ro4be &. Stahl W. B. Hut»hinson T.J.Dunn A Co Jos. T. Kerbaugh . . W. S.GritfilhA Co. $100.00 1,000.00 271. 69 100.00 140.00 145.00 500.00 2, (KK). 00 700.00 111.88 250.00 500.00 150.00 181.68 1, 100. 00 320.00 1,200.00 420. 74 63.47 272.00 200.00 3.50. 00 712. 18 262. 23 72.66 101.50 317. 16 69.95 300.00 249. 50 650.00 250.00 2,000.00 1, 952. 56 2. 00(». 00 1,080.00 1,000.(H) 150.00 800.00 2, 500. 00 :{oo.oo ia>. 00 300.00 206.00 500.00 100.00 300.00 250.00 1,000.00 280. 00 500.00 90.00 551.81 2, 000. 00 liOO.OO 491.99 500.00 225. 00 100.00 320. 00 2(H). 00 268.92 ;r>o. 00 750.00 nm. 50 750.00 Pd.4-28. Pd.4-30. Pd.4-27. Pd.4-27. Pd.4-28. Pd.4-28- Pd. 5-2. $100.00 140.00 145.00 '250.00 150.00 181.68 Pd.4-30. Pd.5-7.. IM. 5-2. . . Pd.5-2... Pd.4-30.. Pd.5-9.., 200.00 69.95 300.00 Pd. 5-6. Pd.5-5. .Walraven,tru8t«e! 1 1, 500. 00 GuyC -,— , Boyd, Wbite «k Co ■ May Kvle Berry 6c Co.,Lim . . ' S. & Co I S.Bunting, S. s Ed w. H. Faley Kreeoson R. G. Cbase & Co Guy C. Walraven H. A. Cleverly do W. E. Herring Jno. J. Pyle Wendell' & Smith Shewell A Tryer, Lira . . 9,10 May 9, 10 11 12 Nelson T. Evans D.J.C.Noblit&Co Cha8.C.Farr Wm. J. Simmons Ed. Satterthwait Chas. L. Duiigan T. De B. Richards J. W. Bouf^hton Jas. S. Harrison J. W. Pepper R. M. Braithwait And. Marshall Jno. L. Galloway Yates & Troth W.T.Wilson Miner L. Vaunt Vincente Portuondo . . . Henry McHugh John J. Pvle Patk. O'N^eil E. C. Richmond Co., lim. 13 14 H.H.Yard Phillip Lowry Geo. Holland Dairyman's Supply Co. Henry McHugh H. J. & G. R. Crump . . . E. S. Bortel & Co E.R. Bryan C. P. Meloney Geo. Fox A. H. Moore D. & J. C. Noblet & Co. Central Market Co W. J. Simmons Geo. L. Harvey K. L. McMenamin Kyle, Berry & Co., lim. W.E. Murphy 15 May 16, 17 18 19 20 $.350.00 90.00 86.77 600.00 5.000.00 2,000.00 270. 41 1, 000. 00 175. (K) 110.00 4, (MK). 00 750. 00 100.00 252. 62 04.55 450.00 108.48 .-.10.00 2, ,500. 00 800.00 490.00 700.00 65.00 300. 00 200.00 150.00 2,000.00 200.00 400.00 2,500.00 75.00 200.00 3,000.00 400.00 50.00 .50. 00 100.00 150. 00 3, 000. (M) 400.00 75.00 162. 00 2,000.00 57.85 1, 000. 00 275.00 1,000.00 100.00 200.00 900.00 200.00 1, 50t). 00 500.00 500.00 1, 000. 00 150.00 61.20 400.00 2,500.00 350.00 1,000.00 167.91 771.48 965.00 i;t3. 00 500. QO 74.50 600.00 4,000.00 231.00 700.00 1, 000. 00 200.00 150.00 35L00 10L62 175.00 2, 100. 00 450.00 302. 72 2,750.00 Pd.5-11. Pd.5-8. Pd.5-9. Pd. 5-9- Pd.5-9. Pd. 5-9. Pd.5-7. $86.77 110.00 4,000.00 100.00 64.55 200.00 200.00 Pd. 5-12 IM. 5-12 Pd. 5-12 Pd. 5-13 Pd.5-14 Pd.5-13. 50.00 50.00 100.00 75,00 57.85 200.00 ty ^\ 334 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 335 Kejf8tone National Bank, Philadelphio, Pa. Rills diswuHted, being part of Sch^ule B of bills receivable receipted for by receiver — Continued. Koch Sc Co., Clncin., O Hughes Bros Price I.Tatton 11. Irvine Henler Cutlery Co E. HoditeB Stephen P. M. Tasker Excelsior Hosiery Co Grauville B. Haines "Wm. Petn-y Geo. J. llaymond & Co., Boston. Mine. L, Vaunt Chester L. Smith Chas.C. Torr W.H.Smith Pooley Bros T.W.Manship K. Reach eT. M. llowig Andrew Hughes Anian &. Bros J. W. M( Cartcrty, Bradford Isaac H. Evans, Bryn Thos. J. Martin &, Co A.H.Moore F. A. Davis Geo. W. Kendricks.jr Robert Boucher D. M. Stackhouae F.A.Davis E. D. Trymby M.B.Dwiffht Morris S. Packman F.A.Davis John Connelly Chas.^. Lynch James Birnie Wm. R. Murphy John Craig & Son Geo. C. Hetzel < ). C. Bosbyshell Vallee Bros. & Co Henry H. Yard John'T. Scott, jr Chester Co. Cert. Dep. West Che8t*ir G uarantee T. S. D. Thos. E. Wonnan E. J. Lex W. L. Lance Mai-y H>irley W. »j . Simmons L. Shuster Boraef &- Co Anton Anian Isaac H.Evans, Bryn Mawr Adam K. 00 3,000.00 202.21 270.00 2,000.00 650.45 12fl. 00 183. 45 250.00 200.00 5, 000. 00 1,200.00 206. 88 32, 438. 72 100.00 100.00 1,900.00 144.10 142. 15 100.00 330. 00 550.00 125.00 100.00 95.75 510.00 2,500.00 5, 000. 00 1, 000. 00 1,000.00 450.00 1,345.39 530.00 130.00 1,000.00 268. 91 40L80 1,900.00 2,500.00 315.00 650.00 5,000.00 5,000.00 600.00 313.59 100.00 75.00 900.00 i \^ Keystone National Bank, PhiladclpMa, Pa. P»ills discounted, beiny part of Schedule B of bills rcceirabU receipted for by receiver — Con tiii tied. Geo. W.Kucker R. C. Horr Henry fl. Yard Christian Mac^k Bonner & Eisler, K Y Michael O'Rourke McBride Bros Henry H. Yard . . .• J. McMurtrie John H. Miles W. E. Herring W.J. Simmons Wm. Rhodes Whitwill W.Coxe John Pipe Wm. M. Griffiths F. A. Davis, treas H. W. Kelsev Geo. W. Smith & Co AVilson E. Allen Newton K. Regar Thos. H. Hunter W. Y. Warner Charles J. Thatcher A. H. Moore A. H. Moore Cha«. H. Davis H. Knox Stewart. M. D. . . . The Bradford & Hill's Land Co. Thos. E. Wanman Pooley Bros C.B.Reeves Sam'l Mcllvaine, Chester. Isaac Brown Thos. E. Wanman James Reilly Geo. C. Hetyee Thos. E. Wanman John J. Pyle Henry Gercke Geo. W. Kendrick, jr John McFadden Cox Si. Sons Robt. Nichal A. G. Kellogg C. E.Wymau The Bradford Hill's Land Co. Geo. A. Schafer James R. Thompson Isaac Fleming Henry Redman Van (Jurden & Young Robt. A. Jackson Hoeflich & Wilson J. L. Codamer John T. Dunlap Geo. C. Hetzel Baughtan & Terwilliger . . Mary H. McGlade Geo. W. Smith & Co A'^an (iunden & Young ( Jeo. W. Kendrick, \v Fred. M. Walton & Co H. J. & G. R. Crump Const. Carijenter W.H. Thornton Henry Van Biel &, Co Henry M. Dixey Do Excelsior Hosierv Co N.VanBeil Sam'l Bunting's. Son & Co. H. J. & G. R. Crump Schomacker Piano Co R. C. Horr&:Co do H.H. Yard Robt. M.Wiley S. Black Michael O'Rourke McBride Bros ' H. H. Yard I J. S. McMurtrie | Henry McHiigh i W. E. Herring j W. J. Simmons ' Matthew Hall I H.J. &G. R. Crump...! D. & J. C. Xoblit&Co.l W.T.Alexander I W. S.Griffiths & Co....] H. W. Kelsev ! Geo. E. Dearborn j H.H. Yard ' Newton K. Regar '< Thomas Lewis i W. J. Quegley ! McLear & Kendall ! A. H. Moore j A. H. Moore, A. M. Moore. Chas. H. Davis i McLear & Kemlall V Nieson F. Evans June 10 12 13 and 14 13 and 14 Geo. W. Smith & Co A. H. Moore floseph F. Fjeld Harry H. Long James Reilly Mary Myers, Atlantic City H.H. Yard , Pooley Bros Henrv Coward (ieo. !B. Rnssell Central Market Co H.H. Yard H.J. & G. R Crump.. Geo. C. Hetvee& Co... H.H. Yard: Jolin J. Pyle J. A. Ger<'ke , Chas. H. Kendrick , Henry M. Hugh , Chas.C. Torr Rob'tNichals A. G. Kellogg C. E. Wyman Nelson 1^. Evans 15 16 S. A. Baker Harvev Filley & Sous . . F. A. Davis J. G. Ramsdell :.. Nelson F. Evans W. J. Jackson Boyd, Whit« & Co J. A. Wilson Jno. T. Dunlap Geo. C. Hetzel &Co.... .Ino. W. Baujihtan Chas. McGlade Geo. E. Dearborn Nelson F. Evans ( 'has H. Kendrick Freil. M. Walton & Co . . C. B. Rees, Son & Co J. A. Wilson do Henry Van Beil &. Co. . . R.C.Horr &Co R.C. HoiT&Co Excelsior Hosierv Co . . . H.Van Beil & Co S. Bunting. Son & Co . . . H. J. & G. R. Crump ... H. W. Gray, H. W. Gray, Treas. G«o. E. Dearborn A. H. Moore Krivems & Trauner H.Van Beil& Co H.J. &G.R. Crump.... W.Riddle 17 19 10 and 21 22 23 24 25 27 and 28 27 and 28 29 30 July 3 4 and 5 $300.00 470.00 5, :J00. IK) 100. 00 157.50 2, 110. 21 3, 000. 00 6, 000. 00 :w4. 00 540.00 200.00 ,540. 00 1. 000. 00 1, 50.5. 87 126. 50 1,000.00 500,00 1,500.00 1, 200. 00 2, 400. 00 400.00 75.00 4, 000. 00 225. 00 2,000.00 8, 150. 00 205. 00 125. 00 3,000.00 1,570.00 1, 000. 00 453.47 400.00 35.90 1.250.00 3, .500, 00 5. 000. 00 1,915.00 1,000,00 400.00 400.00 350.00 500.00 100.00 350.00 50.00 3,000.00 1,200.00 500.00 500.00 90.00 1,650.00 2.500.00 2, 500. 00 1.000,00 100.00 5,000.00 2,000.00 2,000.00 1, 285 00 2,500.00 500.00 5.000.00 1, 020. 69 864,00 855.50 1, 300. 00 600.00 500.00 1, 350. 00 500.00 5.000.00 4,500.00 2,500.00 1, 345, 39 2, 800. 00 500.00 503.68 4, 650. 00 306.25 li ^ 336 INYESTIGATION OF NATIONAL BANKS. Keystone National Bank, Philadelphia, Fa. Bills discounted, being part of Schedule B of bills receivable receipted for by receiver — Continned. Wm.M.Hirst Fletcher Pearson A. G. Clemmer Bonner & Eiseir, N. Y. . . Bernard M. Hugh Wm. Rhodes Stephen P. M. Tasker . . . Salfie M. Baker N. Moritz J. Henry Hayes Wayne, Stone Sc Co Excelsior Hosiery Co J. L. Cranmer Henry H. Yard Jaine's Reilfey McBride Bros -. . H.C.Ball Wni. J. Jackson Thos. Chadwick D. M. Stackhotise Excelsior Hosiery Co. .. . H.C.Ball J. S. Carter. J.G.Ram8 9tKK (K) 250. (K> 6.000.00 685.41 100. 00 2, 576. 77 500.00 2. 500. 00 4, 368. 46 1, 050. 00 494.60 2,500.00 1, 976. 78 150.00 2, 261. 70 2, 500. 00 4. 454. 01 50, 000. 00 L 800. 00 452.11 3, 105. 95 2,500.00 4, 310. 92 150. 00 102.20 M 4': ' 'ti •■1 338 invp:8tigation of national banks. INVESTIGATION OF NATIONAL BANKS. 339 Keustone National Bank, Philadelphia, Pa. IHlU diaeouuted, hHmj part of Schedule B of bills receivable receipted for bif receiver— Contmnea. [PAST DUE— Continued. Maker. Spring Lake Beach Impt. Co. Wm. H.Moyer Do .Tfts. L. Allan ThoH. E. Wareman .Tann^a J. King Robeii' Cams PeHn. Rooflufj Co Robert Cams Tho3. Brown Koystone Watch Club Co Frank J. Primroae E. E. Perry Thos. Durham & Son Endorser. Ghas. Zane. Spring Lake Beach & Tnipt. Co. Jas. K. White, manager do Eanlkner & Allan H. H.Yard - .Tno. W. Barron •' llobert Cams F.A.Mitchell Kobert t'arns Thomas Brown Endorser. Due. Feb. 28, 1891 Amount. Frank J. Primrose . Geo. A. Perry Wm. J. Kelly Mar. M. Foreman 28, 1891 4,1891 7, 1891 11,1891 11, 1891 14, 1891 14, 1891 1ft. 1891 Mar. 18, 1890 29. 1890 Jan. 20.1891 July 18, 1889 Jaii. 21, 1887 May 15,1887 June 30, 1887 Mav 29, 1887 Kov. 16, 1888 $5,000.00 4. 506. 21 4, 019. 92 350.00 1, 803. 00 aoo.oo 1,000.00 120. (H) 1,000.00 321. 15 80.00 2, 895. 66 * 287. 50 11,150.00 t. 590. 00 1 890. 00 1860.00 12,040.00 182,023.73 • To J. S. McKinlay, att'y, 7-19, '89. t To J. S. McKiulay, att'y, 5^-*. '89. DEMAND LOANS. Geo. D. Phelan J. C.Wymau Geo. E. "Cumminga John J. Pyl© G. B. Haines & Co S. S. Garwood L. C. Gropengeisser T. Nelson Davis ■ Marv P. Logan Beuj. Seisser K. C. Gaskill M. K. Wood Geo. E. Cnmmings David Gai'risou C. A. Bradonburgh H. H. Yard E. Bedford M. R. Wood M. Landauer Bureau Carr Co., No. 1 C. Horr G. W. Marsh D. L. Drew Jas. M. Battenby D. and J. C. Noblit & Co... D. L. Drew Horatio G. Kern E. B. Richmond Co., limt'd. JohnG.Pyle Geo. D. Phelan J. C. Wyman ■ Geo. E. Cummings John J. Pyle G. B. Haines & Co S. S. (Jarwooil -L. C. Gropengeisser T. N. Davis Mary P. Logan Bem. Seeser do R. C. Gaskill M. R. Wood Geo. E. Cummings David Garrison C. A. Bradenburgh H.H. Yai-d E. Re 800.00 1,600.00 250. 00 220.00 400.00 :k)0.oo 950.00 2,000.00 2, 000. 00 50,000.00 1,000.00 *700.00 900.00 1, 210. 00 500.00 1, 000. 00 200.00 8.000.00 1,500.00 600.00 698.11 2, 500. 00 2,000.00 89,818.11 * Separate receipt firom C.-H. / Schedule C. — Amounts dm by banks March 20, 1891, Assets : Citizens' National Bank, Baltimore $3, 053. 81 National Bank of Commerce, Boston . . -. 778. 00 National State Bank, Camden, N. J 980. 26 Delaware Co. National Bank, Chester, Pa 392. 52 Fort Dearborn National Bank, Chicago, 111 2, 793. 67 First National Bank, Conshohocken, Pa 25. 38 Second National Bank, Frankford, Phila 4^ 402. 16 National Bank of Germautown, Gerniantown, Phila 1, 620. 47 luteo^rity Title Ins. and Trust Company, Phila 216. 90 Jenkintown National Bank, Jenkiutown, Pa 58. 50 First National Bank, Media, Pa 545. 23 Merchants and Manufacturers' National Bank, Pitts.., Pa 2, 535. 73 Northern Savinjjs Fund, Safe Deposit and Trust Co 297. 34 Safe Deposit Bank, Pottsville, Pa 202. 73 Keystone National Bank, Reading, Pa ' 493. n F.rst National Bank, Riclimond, Va 263. 23 P'irst National Band, Scranton, Pa 346. 43 German Bank, Wheeling, W. Va 428, 80 West Philadelphia Bank, Phila 374. 79 Farmers' National Bank, West Chester, Pa 494. 87 Union National Bank, Wilmington, Del 2, 265. 29 N. J. Trust and Safe Deposit Co 205. 74 Camden Safe Deposit Co 679. 04 23, 424. 00 Tradesmen's Nat., New York 1,757.32 Chase " " " 765.02 Schedule D. — Cash items from deposits made March 20, 1891. J. D. Laws, Drexel & Co., 3, 12 pay stopped $92. 50 Drexel payment refused 262. 50 Keystone.* 178.66 Keystone 10, 000. 00 Keystone 9.43 Keystone 14. 00 ' Keystone Keystone Keystone Keystone 25, 946. 34 $83.00 23.46 338.58 31. 50 11,033.63 SCHKDULE Y..— Country checks from deposits made March 20, 1891. Mrs. E. R. Freeman, New Jer- sey, T.S.D.Co City treas. — Chicago, 111 Frankford $15.30 ft ft Germantown it tt It tt tt tt tt tt 374. 113. 6. .56. 11. 28. 45 200. 7. 108. 335. 43. 82. 96. 44 79 05 (X) 75 26 00 00 40 80 95 .50 00 00 City treas. — Integrity Trust . Industrial Trust . Manayunk , it Media N. Western, Phila N.S.F It u W. Phila .... Trades Trust 3, 21 Camden $26. 00 66.00 74.00 22.25 8.00 7. .50 L58.80 .S7.00 4f.00 8.00 219. 50 443.42 220.22 2, 855. 93 Schedule F. — Cash at the time of the suspennon. 9 pennm Own circulation Mutilated coin Counterfeit notes ($10) Fractional currency . . . Fractional silver $1, 000. 00 94.14 20.00 19.72 1,300.00 Silver dollars $6,000.00 Gold coin 3,575.50 United States gold certificates 30, 000. 00 42,009.36 it .r yh ! '1 ¥ 340 INVESTIGATION OF NATIONAL BANKS. Schedule Q.—Cash items March W, 1801. a i( i( it a a n (( t( tt (( it if it it it t< it $152.12 ^^^ ^ .- '^«5« 15 s7 N. ifroadhent, cash attached $100 250. 00 Jno. H. Longstreet and profee tX^nn Mems. Jno. W. Harron .li;^ L. Groff & Co., end. G. McGlade, profee ^' ilX' lS H. D. Holt, end. F. A. Mitchtll, profee ^?X* XA Fiunus Maguire, end. G. W. Clothier, profee 32. Ob '< A. Barrett, jr., & Co., end. Penn. G. Co., profee .... And McClees, end. Jno. Yonug...- Walter H. Smith, end. Geo. J. Dugler H. Qu inn, end. F. M. Love f""^ 2, 11,91. Ck. pro. L. Dolmas, Chester 3, 13, 91. Ck. Jno. Hayes. . . . 9,13,90. '^ "" " " ~ 2, 13, 90. 5, 27, 90. 9. 16. 90. 10, 29, 90. 2,28,91. 2. 11. 91. 3, 11, 91. 3,17,91. 3, 12, 91. 3,19,91. 3,18,91. 3,19,91. 12,15,90. 12, 15, 90. 11, 11, 90. 11,11,90. 2, 1,91. 461. 52 20.00 5.60 .50.00 60.00 E. M. Cooper W.F.Shaw MeniB. Jos. N. Cooling oM^ " Wm.Calhown ^5.00 " Win. Calbown, end. D. r. S. Nichols 7o.OO Mems. Win. Calhowu }?21S Note J. L. Galloway, end. W. Calbown, jr 190. 95 J. McConnell, cash attached $5 140. 00 <( 3!l7!9l! Ck. Mems. W. Calhown 262.25 1 3 91. " " G.L.Hawey 1^00 o tH\ ot\ t^ " ** 2.W. 01) 11 it it it H it ft a tt ft 145. 00 200.00 1.56.00 J. Keiublc, Biild. ac. , end. J . Reynolds, jr , ,.., ,^, ,8. G.W.Marsh, Pt 162.00 ^ Marsh, Pt Q^'^S 3, 20, 90. 1,13,91. 9. 13. 90. 3. 18. 91. 3,19,91. *' Mems 3,13,9L Ck. G.W 3 6,91. " Mems. G. W. Marsh, Pt 3 13 9L " Mems. G.W. Mar8b,Pt ^50.00 3 16 91. " Mems. G.W. Marsh, Pt 45.00 3 19 91. " Mems. G. W. Marsh, Pt -^00 12 16 90. " Note H. Patterson, end. G. W. Marsh ; olMS 2! 2.91. Receipt for P. O. for postal note ^rJx? Cash 121.01 3,20,91. Ck. paid'jVA. Keiley & Co 179.87 3;20;9L '^ *' Wm.J.BaWr j^-^^ 3 20,91. '* " Jacob Meyers «x!!* Aa 3)20,91. Mems. 1 teller short 7.68 200.00 3 20 91. Ck. L. Dolmas, from ( hester profee ($40 attsichcd cash) 152. 02 2,' 18! Ck. Mem. J.W.Catberiue,.ir J5.07 0»>f\ it it ** ^, oil*, lo 3,20. 3,20. 3, 9. 3, 9. 3, 9. (( it ft it it a it it tt it it a 285.00 600.00 a5. 11 2, 200. 00 Country checks held from 3, 19 ^'^?'Si Items returned from Canuleu 3, 20 11.^ SCHKDULK H.^Due bills on1standiHg S, 20, ^91. No. 14477 $760.22 ; No. 14486 - -- 1447g a59. 08 i Clearin'T bouse settlements 14480 1, 037. 05 1 Runners' Exc, 3, 19 14481*' 6,000.00' 14482 1,193.94 I J4J83" 3, 000. 00 14487. To C. Treas., 3, 20 . . 14484 5,000.00 14485 800.00 ! Di LE I. — DepositH made a. »». March 20, 1891, 14, 168. 58 $1,812.90 23, 031. U J. D. Laws Benj. Sciser Geo. C. Leupold Mrs. E. R. Freeman. City treas 42, 994. 6:^ 706.88 43,701.51 $292.50 50.00 3.5.00 100.63 28,762.54 29, 240. 67 INVESTIGATION OF NATIONAL RANKS. SCHKUIJLK J.—/« account wilh the Keystone Xatiotial Hank PhihuVa., IS- Adams, "W. H. and C. E $25. 54 AuHpacli, F. J 98. 89 Acker, F. A 93. 63 Adams, Ebeut;zer 9.63 A pplejrat© J. It 1, 894. 89 Armstrong &. Vance. Arthur 6l Bio,, R Altonins. S. li Agnew, B. L Allen, W.P Allen, JaH. L Alexander, W. T. 2.11 456.97 96.74 282.74 115. 80 14.79 79.73 Ahern, J<»hn 4, 877. 59 124. 54 571.50 1.78 100.05 100.00 327. 25 226. 12 1.12 61.55 586. 28 25 1.50 201.00 12.29 936. 71 10.00 36.44 400.03 133. 80 15.00 246.47 257. 47 9.48 555.63 293. 00 1.41 668.44 3.00 9.22 Allen. Anna Cr Alcock,E.C Alard, Herman Dr. . . Allen, tJ. Alfred Alcock, A. P AshmeMl, A. C Annear, Sam'l Anderson. D. L Apsley, \V. H AnderHon, Sam'l Ander8.77 773.11 11.32 05 BanlsU-y, ,J ., sjjecial 35, 80] . 55 Blancher.D.V 5.00 Bacon.D.H 16.95 Black, Samuel 540. 17 Battison, John, jr 8.36 Blackburn, C. A 45 Baker, An na H .38. (»8 Bradley . M ichsiel 662. 44 Blasius. Oscar 5.x 44 Barrs',John 460.00 Blasius &.. Sons 3 26 Bagot.J.W 210.00 Black wells. Durham Co 30 00 Iiarnard,Ray C 551.46 Barritt, Chas. H 264 44 Bancroft & Cox .' 80.77 Baraes. E.C 128.3I l|aillu,Rev.J.K 24.00 Baldwin, Elmer E 167.64 M-^'V'^F 51.26 Baker,J. W.,Kccty 430.45 Baker, ('has. T.. Hftt 9.03 BradenbiirK. Garrison & Co 33. 25 Beale, S. T., jr : 245.64 4. 141. 65 7.02 6, 152. 60 391. 52 14.05 2rM. 54 545.13 50 216. 23 37 104.37 14.60 87 97 368. ,'»3 Bennage, W. D Beard. M. A Bender, W. A Bell, Jos Bemady, D. E Bremer, J^ohn Beiswanger. Carolina Bergman. H. J Belmont Driving Club Bergman & Mority 253. 07 Bell.S.J 35.62 Be GeiTy,T.R 19.67 Greer,John 514.18 Glendenning, H. M 60.89 Greenwell, John 069.70 Gerster, Geo 25. 68 Gei88e.L.W.C 7.61 Gleason V I u "' i Hanan & Son $885.49 Haves, Chas.E 1,078.20 Harris, T. M., and Henderson Ha»H, Constantine Hallowell & Co., C. E Haig. Andrew H Harris, \V. Jno Ha/,ledine, Jno , Hamilton, C.L Hankin, £d 856.39 21.62 88.19 18.07 11.00 180.00 52.07 897 73 Husse, Lewis 1,303! 44 51.54 1.08 336.13 .62 322.32 14.84 534.22 Hetzfl, G. C. and Co 6,471.88 Helmbold,E.R. Heileg.E.C Henderson, J. D Hele, Maiiha D Heron and Kesbit Het zel, G. C Heriug,W.E. 8.63 48.90 .24 537. 33 56.37 . 40.07 294.00 500.00 19.25 325.06 54.84 516.88 72.59 25.26 96.26 Hillborn. Chas., Jr 1,152.44 HendorsoTi, S. R Herold, Chas. P Hess, Clark T Hestonville, M. &, F. R. B. Co. Henry,N.S Herder Cutlery Co Heckeler, Rosa E Healey and Liepfer Hill, Janiea E Hildrath,Mary H Hillmau.Kate, Mrs Hinch,W.E Hitchcock. "Wm Hinchcliff.G.D Hilliuian. Jno. F Hillebrand H., treas Hinkley, Jno. F., treas Hiron.s,'Mi-s. Mary E . . Hill, P. L., atty , Hicks, Robt Hickman, L. M , Hills, Sarah Howard, E.C Holbrook.R.M Howard's Sons, J. W. Hopper, Maria Howell, Francis T , Holland, G.,m'g'r . Horr,R.C Horr,C HoUis & Co., W. T Hopkins, G.W Horter, L. F Howe, Frank, Jr . . , Hopkins, Jas. P . . . Holler, W.H Hood & Town send . Hopkins, Mi-s. K. . . HoDson, G 152. 21 231.00 .61 219. 01 .77 132.68 78.43 168.52 46.35 1.24 13.24 23.91 30.00 180.00 Hoffman, Wm. A 1,576.90 Hoskius, C. P Howland, Anna C Hon«i, (ieo. S Hunter, G. M. D. . Hudson, J. H Hunt, W. E Hnmrael, A. L "Huylers " [Harrison, J. G] Hunter, Jno., agt , Hunter, W.D Hunt and Eaton Hunt, W. P., treas Hussey & Son Co Hyudmau, Mrs. G. B Iversand Pond Piano Co ... Isaa(;s &. Co., Leon Ibacli, Franklin Irwin,,!. W iHgles.OttoE Irwin, G. M Irving Pub. Co , Inter. Society of W. B J ackson. J . T James, T.L 560.37 369. 45 32.41 450.24 470. 07 46.31 310. 62 103. 39 148.40 855.17 Horniukel, H. A 4,224.57 15.42 30.26 352.50 258. 05 4.25 15.68 Huber, Jno.T.,ex'r 1,332.94 " - 4 90 402.93 51.21 20.00 91.48 402. 37 18.85 36.79 154.74 514.80 46.40 5.41 .07 4.29 1.25 270.00 540.05 75.85 Jacobs, G. E James, Frank Jewell, G. J JettVey, G.W Jenks, A. S.. agt Jermou, J. G Johnson, Jno. C Jones, Mary Jordan, Jacob R Jones, J. R Johnson, H.C Jones, W. J Johnson, S. J Jones, R. C Jones, Mary H Jones, James H Jones, W. K Judge, P Kanttman, C Kabu, Sam'l M Kramer, Wm. J., agt Kampiere, E Kampe, F. F., sr Kautmun, Jos. H Kaufman, L. S Kemble, M. V Kearney, R Kennedy, Jos. P., est Kerse, Henry Kendrick, C. H Kelly, Thomas J Kelly, Thomas Kerr, James Kevs, H. C, treas Kendrick, G. W., jr Kelly, Jno. A Kelly, Jno. A. & Co Kern, Lucy A - . Keys, Jno. C Kelly, E.J Keystone MTg Co Keckeler, F. F. Kennison, V Kerlin, J.H Keystone M'fg Co., "D. F". Keutor, Bruce S Kellogg. Carrie J Kellogg, A. G Killian. Isaac Kiltson, Louis Kingsbury, C. A Kinimel, M. S Kirk .& J.C 921.13 Noblet, J. C. & Dill 98.48 Noblet, J.C 05 Ojjden.Saml.M 64.46 O'Neill, Jno , 328.85 O'Neill, Pat 4,943.32 O'Neill, Chaa 664.46 Oliver, G.W 151.34 Oliver, M 82.22 Ogaen,R.C 216.02 Osborne, D. M., & Co 8.434.i57 Opi)enheimer. B 274.79 Otis Jiros. 4 Preston, Geo. R 37. 70 Perry,Helen B 30.88 Peter.son, Peter 4 1 . 33 Preston, Kdiuond, jr ."»9. 91 Pickop. Elibabeth 475. 00 Pinola Remedy Co .76 Phillips, C. C .*. 13. 70 Phila. Towel Supply 1 , 057. 8.-i Pierson, A. T 2. «"J Pine, Jennie Ji.'»<) X I'lCKCl'T'i lafi .•••••••••••-•••••>>>*•••• o«ri J • t>H X IK^^ tJ uo ..•>■■••.•«• >••••••>*•••■•••••• oH. I ■« Price. (J. B 7.^.03 Pioneer Build. Assn 463. 17 Pliillips. J. 1 7. 07 Portnondo, V 1,418. 03 Pope. Jcdin W .61 Poutterer, B. M .'). 00 Poutterer. M. A 182.45 Powell. Wm.W 10:J.XI Popp.J.J.F .MH> Pooley Bros 851.36 Potts, Mrs. K. M 1. .*>0 Potter. Geo. C, & Co 51. 70 Porter, Chas. M 244.88 Porter, Julia H 20.09 Potter,JohnE., d:Co 307.57 Portnondo. J. F 7, 538. .'VB Pond, J. B 3.24 Plow man, Geo., Co 243. 49 Pyle, Katie H. B 31.0*2 Pyle,JoluiJ 566.32 Quick, C.W 94.18 Quick, IMiilip 10U.(M> Quiun, Mary S 132. 99 Rand, Maiv W 46.32 Puimsdell, .Y. G 1,445.G.'> Rainey,Ja8 27,61 Ranck, Annie M 30.00 Raymond. W.S 7.98 Ralim,E.C 74. 9J Rawle.C.C 8. C8 Racine WagonCo 488. 1« Randolph, Mrs. H. li .'>. 75 Rambo.E.A 69.29 Rafsnyder. Fxlwin 308.92 Raymond. C.W 140.85 Raiiisev, J . S 328. 09 Reed, i-Yank 52.40 Reed, Thos. B 93.55 Rees, C. B.. Sons & Co 2,185.73 Reynolds, J. & Son 521.07 Reeves, A. A 3. :i7 Reed.C.E 24.5.00 Reilly, Wm. A 531.98 Rennard, Airs. M. A \ 37.73 Reckefus, A. A 378. 26 Reeves.M.S 68.07 Reichard, Mrs. A l.U Rees.F.S.. tresis 44.48 Reichert. Emma R 7.18 Reed. MrH. K.C 12.57 Relief Fund, Araitie 1, 796. 35 Reillv, H 6.56 Reiszner.F 7.08 Reilly, Thomas 24.38 Reinhardt. S«-villa 76. 24 Repplier, Mary 95. 00 Reizler,()tlo 48.44 Ritson. Robt 116.25 Richmond, E. C, Co 2,445.78 KiHhel,A.C 614.97 Ribble, W 184.30 Ridings, P.J 34.88 Ricketts,L 93.25 Richards. F. Do B 1.'39 Righter & Gibson 573.92 Richmond, E. C, agt 4.31 Ridley Pk. Cold Spgs. Water Co 618. 49 Richihond, Jas "... 4.84 Riddle, W 286.32 Ri8hel,A.C.,mgr 3.31 I / ■I- ♦< RisheU,J.D., & Co $499.61 Roert8, J.R.Evan8 505.30 Root, A. P 79.70 Rothschild, J., & Co 672.46 Rothe,Mrs.J. E 57.00 Rogers, J. H..jr 19.00 Rochefoitl.J.L 1,035.00 Ro))ert8,G.W 3,395.16 Ruppert, Maud IW- 53 Ruppert,J.H 75.00 Russell, D.& J 500.15 Rudhart, A. G 62. 91 Ru88ell,G.R 104.50 Russell. R.P 9-74 Rutherford. J .45 Swavne &. Wagner 2. 76 Sanfcey,6.R 6.94 Stant sowitch , A IIG. 98 S way ne, J 17. 20 Stang.G - 1,637.20 Stang,M 157.69 Stang.Aug 925.92 Salter, J.G 597.09 Salterthwait, B 709.63 Schatter, C. T 26.41 Scattergoo Siggons. M. H 21. 00 Simmons. AV. J 16. 80 Simons. ( ;. 1. & CJ.R 5. .59 Sj»ittall, Goo. P .91 Shicl West Pha. Brick Co '.'.'.'.'.'.'.'.'. 34447 Wenger.J. E 4^78 Webb, Judson C ',\\\ 7.')0 OO Wells, George B ....'.'.'. 177 67 Williams, H. W 667 0.*} Wilson, Jacob ] 947' '>9 Wilson, J. Dale .,', T.iri Wilson, J. C -xa or, wiww.T , ::::::::::: 2^2:15 Wilson.M . i«o •vt Wilcox & Gibbs Wiley, MyraC Whitney, Fannie K WilhMighby, Wm.M... WiUv.ll. M Wright, H. C, agt Whittv, W. H . .! White, LK.,nigr Wilbour, J. A Wilkinson. J Williams, J. K Wills, D Wiltbank,Z.M Writ,M.S Wiley,J.H Wittenmeyer, A 49'J. 86 320. 03 LV). 11 2.40 310.95 1.25 84.09 12.50 1, 995. 28 96.77 1,532.53 479.93 48.52 39. 36 10.57 Whitaker. Mary E ' 9ai\ ca Whitehead, Wra Wieder, A White,Johu R , Wilner Dental Co , Whitnmn & Son , White, Smitli Co Wilson, LM., agt , Whittier,Wm.W Whitman &. Son's Factory ... Whitaker,H.H Whitby.G.G W ilson . E. I Wood, Wm. B Walford, W.S Women's Silk Culture Wo'h icago *. , Roherts, Chicago Wattfl & Co., Chicago Sawyer &, Co., Boston Conkling. Camden , Simpson, Hall .5.0C 145.00 255. 15 .300.00 255. 15 25.40 55.25 '290.66 125.00 280.00 120.00 200.00 280. (W 142. .50 290.00 64.38 290.00 100.00 280. 00 1,06:{.37 280. 00 86.77 300.00 5, 925. 97 $8.35 1, 198. 50 125.00 18.85 26.13 23.75 26L09 .5.00 17.60 418. 78 49.90 U.34 10.51 28.00 350. 00 26.75 24.85 10.20 36.15 62.00 46.66 35.05 2,794.46 Schedule P. OveiT>aid by — Tradesman's Nat., N. Y $27,474.23 Chase Nat., N. Y 2,609.58 Boston Nat. Bk. Commerce 1,471.97 Chester, Del., Co. Nat 2.02 31,557.80 ^•1 352 i I I INVESTIGATION OF NATIONAL BANKS. Schedule Q.— Overdrafts paid since 3, 20, 91. 3,21. E.W.Lesley $21.77 3.24. W.B.Jones 28.70 Tlieo. Knauf & Co 39.32 3.25. A.L. Huminel 4.90 H.C.Ellis 5.70 3.26. R.H. Dengler ^, 3.90 L.T.Crawford 2.72 A. R. Weiirick 5.29 W. Sargent,jr 56 tred. Geipel 31.13 E. S. Haniiington 17. 35 Hattie L. Lee I.OO W. A. Stockton i. OO 3, 30. A. M. Longacker 4. 61 3,28. 3,30. A.C. McGowin .$4.00 4, 2. Mrs. J. W. McBride 9. 07 4, 3. Nolan «fc Bro 19.80 4, 4. Geo. Amberly 3. 98 4, 8. Samuel Lucas .S6. 03 4, 7. Mary McGlade 24. 90 4, 18. J. Miller 70. 85 4, 23. A. linger u[76 4,27, P.C. Burke 79 5, 2. R.S. Cullin....: " [91 5, 5. J. B. Patterson 46.19 Schedule B.—Cash collections for account of hills discounted. 1891. Mar. 21 Mar. 23 Mar. 24 Mar. 28 Mar. 20 Apr. 1 Apr. 3 Apr. 4 Apr. 7 Apr. 8 Apr. 9 Apr. 10 Apr. 13 Apr. 14 Offset. G. B. Aldrich, due 3, 18 Interest to J. P. Portuondo S>hraim Young artin Burke '..'.'...'. March, Brownback Stove Co., dne 3. 22! W.W.Wallace ! T. Hudson, due 3, 23; Co. E-D. 3, 28 J. McCullough, due 3, 26 Mcllwain & Co, due 3, 28 J. P. Vanleer, jr % Isaac H. Evans, due 3, 30 '.'.'.... H. G. Irvine \\ Preston Price, part payment .....'. Morris Specknian C. T.Davis Alpha S. De Lissa F. Strate A Son, due 4, 6..., R. S.Collum W. S. Emerson $169. .'>0 2, 830. .W $1.89 73.11 Apr. Apr. 16 17 Apr. Apr. 18 18 Apr. Apr. 21 22 Apr. 23 Apr. Apr. 24 27 Apr. 28 A»r. 30 H. Heilhoonner. due 4, ThoH. Little & Son Kirk. Tohiit^tou A- Co., C.S.Saliu Thos. Botts, due 4, 11.. A. Vanier, due 4, 11 ... J«>8hua Bartley Jno. (). KowniHu Ja». Hart, due 4, 12 F.A.Davis E. R. Bryan, due 4, 13 . Quinttui Corwine Abr. B. Paul W. H. Jones, due 4, 16. W. W. Ker, due 4, 19 . . V. Portuondo, due 4, 10. 6... due 3, 31 $1,418.03 81.97 May 2 May 5 May 6 F. Stroete & Son, due 4, 21 Geo Myers, Jr., due 4, 23 C. M. & R. Thompkins, due 4, 18. I van MuUer, due 4, 21 B.F.Hance C. M. & R. Thompkins, dne 4, 21. H. T. Morrison «fe Co., duo 4, 17 .. Gus. A. Muller C. W. Gerkie, due 4, 26 F.Gallaghrr riios. Leary H. W. Hahn. due4, 30 Jas. L. Brown, due 5, 2 H. Heilhronuer, due 4, 26 W. T. Mersevau. due 4, 29 Jno. J. Cassidj', due 5, 3 F. A. Davis, due 5, 2 W. B. Hutchinson .'..' L. B. Mawson, due 5, 4....i * 399.13 Cash. $36. .30 .28 150.00 282.00 140.06 50.16 70.02 85.00 400.00 160.00 50.00 100.00 126. 07 55.00 50.00 3, 000. 00 46.44 100.00 75.00 133.00 400.00 113.40 50.00 150.00 208.25 100.00 1,:{00.00 100.00 2, 000. 00 93. 31 100.00 101.07 205.00 100.00 1, 500. 00 46. 43 200.00 2.50. 00 100.00 1,645.10 250.00 500.00 250.00 145.00 150.00 181.68 69.95 250.00 140.00 200.00 100.00 300.00 200.00 90.00 INVESTIGATION OF NATIONAL BANKS. Schedule R. — Cash collections for avctmnt of hills discounted — Continued. 353 May May May May May WUUs G. Hale. Fred. W. Nofer. J. G. Gosch due 5, 9. Herder Cutlery Co., due 5, 21 $40.67 184. ;i3 i 11 12 May 13 May May May 13 14 16 8 i H. V. Cleaver, due 5. 8 9 I J. Rothchild, due 5, 8 I Wm. Thome Hugh McNeile, due 5, 10 Thos. P. Toner, due 5, 10 H. T. Morrison & Co., due 5, 6 . . Hugh McNeile Hugh McNeile P. B. Horner F. D. B. Rickards, due 5, 14 Chester Co. Guar. T. & S. D. Co. S. A. Alexander Isaac B. Mauger, due 5, 13 Isaiah Bender, due 5, 17 John Donahue, 5, 17 : Cash. $200. 00 •JQO. (K) 200. 00 due 5, 29 225. 00 llO.tH) 4, 000. 00 .: 64.55 . I 100. 00 200.00 . j 1, 500. 00 .1 ,50.00 i 50.00 .| 100.00 -i 200.00 . i 100. 00 .: 75.00 57. 85 61.20 .i 167.91 i 24, 360. 03 Schedule S — Received from hanks. Tradesmen's Nat. Bk., N. Y $29, 231. 55 Chase Nat. Bk., N. Y 4 346.43 Asheville, N. C, Western Carolina Bk ^ ' 103. 37 Baltimore Citizens' Nat. Bk 3 060! 57 Batavia, N. Y., Bk. of Batavia 311^ yg Boston, Mass., Bank of Conmierce 4 403. 16 Camden, N. J., Nat. State Bk 2 336! 89 Chester, Pa., Del. Co. Nat. Bk ' 657* 79 Chicago, 111., Fort Dearborn Nat. Bk 7 718' 55 Conshohocken, Pa., First. Nat. Bk ' 25. 38 Frankford, Phila., Second Nat. Bk 4 gog. 10 Germantown, Phil., Nat. Bk. of Germantown 2 579. 13 Harrisburg, Pa., First Nat. Bk ' — — Integrity T. Ins. ife T. Co Jenkintown, Pa., Jenkintown Nat. Bk Lancaster, Pa., Reed, McGran & Co. . . Manaynnk, Phila., Manayunk Bk Media First Nat. Bk Northwestern Nat. Bk. Phila Northern Savings Fund, Phila Norristown First Nat. Bk Pittsburg, Pa., M. &, M. Nat. Bk 2 73o! 33 Pottstown Nat. Iron Bk ' - - * Pottsville Safe Deposit Bk Reading, Keystone Nat. Bk Richmond, First Nat. Bk Scranton, Pa., Third Nat. Bk Wheeling, W. Va., German Nat. Bk West Phila, Phila Westchester Farmers' Nat. Bk 182. 75 242.90 58.50 395. 82 96.25 855. 18 7.50 542. 14 243. 29 103.00 321. 74 700.63 326. 01 433.58 433. 80 .594. 29 514. 42 Wilmington Union Nat. Bk 9 494. 43 Camden S. Dep. Co " -? • N. J. Trust & S. Dep. Co Industrial T. Co Atlantic City, N. J *.. ."/..'".IIIl." Tradesmen's Trust Co Doylestown, Pa., Doylestown Nat. Bk V.'.'.'.'." 679.04 205. 74 66.00 25 00 443. 42 3L03 Amount $25 from Atlantic City is already accounted for in the over- drafts paid 3792 23 72, 112. 48 25.00 72,087.48 n 354 II ' INVESTIGATION OF NATIONAL BANKS. Schedule l—AmounlH dm- hf/ hanks. Baltimore Citizens' Nat. Bk Batavia, N.Y Bank ofBatavia Camden, N. J Nat. 8ta te Bk Chicago, HI Fort Dearborn Nat. Bk Harrisburg, Pa First Nat. Bk Lancaster, Pa Kecd, M('(irann & Co.. Media First Nat . Bk Pittsburg, Pa Mer. «S: Mauf. Nat. Bk . . Richmond First Nat. Bk Washington, D. C Crane, Parris & Co Westchester Fanners' Nat. Bk Wihnington, Del Union Nat. Bk Norristown Fiist Nat. Bk Schedule U. — Returned items since March 20, 1891. Chicago money order Monroeville, Ohio, F. A. Davis Chicago pro. check. Lord & Owen, Chicago, .J. F. Potuonda, fee 2..58. Chicago pro. check, Lord & Owen, Chicago, J. F. Portuonda, fee 2..')8 Chicago pro. check, Lord & Owen, Chicago, J. F. Portuonda, i'ev 2.58. Chicago pro. check, Folson & Thayer, Youngston, Ohio, J. F. I'oi fee 1.40 rtuonda, Chicago pro. check, G. S. Rethr, agt., Columbus, D. M. Osborno & Co., fee 1.50 ;... Chicago pro. check, A. K.Ashworth, Pomeroy, Ohio, D. M. Osborne & Co., fee, 1.50 ; Wilmington pro. check, Ed. Hart, Middlet., Del., D. M. Osborne & Co., fee, 2.08 ;. .; Wilmington pro. check, R. J. Ford, Middlet., Del., D. M. Osborne & Co., fee, 2.27 /._' Wilmington pro. check, W. A. Scott, Mid. 67 7.10 20.00 600.00 80. 50 25.00 12.00 200.00 5(X).00 350.07 261.30 100.00 5.00 600.00 500.00 75. 00 25. 00 435.00 5.00 3.30 500.00 500. 00 62.40 7.50. 00 200. 00 135.00 ' 115. 26 62.00 225. 75 T^ 1 .... 16,62L30 Items ahove descrihcd were received hy me on this date. Robert M. Yardley, Receiver. Per Ryan. May 26, 1891. ^1r Amounts turned over to R. M. Yardley, receiver. Cash ^2]g Items, Schedule D ."'.'.'.'.'.'.'.'.'.'' ll' I terns. Schedule G 1 !.!!*!!.!!!..]!..!! 1 * ! 1 ] is' Returned items, Schedule U .....!............''..' 17' Collections paid. Schedule V 1' Offsets on hills discounted, Schedule W ..". ......[[].[][" .[[[[].[]".[[[ q Expenditures, Schedule X ]..'....!..!..". G Amount due hy hanks. Schedule T i'. ill.!. .!!!!!!!]!!!!! !!!! 5' Exchange on remittance by hanks W.[] ....[ V. ' Item, J. Miller i!"!!]!!!*..!!!!!!!!!]] ' Overdrafts, less amt.paid !!."!.*!!..*'!!!!!!!! 130 ij. s. bonds ]!!!!!!!!!!!.!!].']!!* ho Bills discounted, less amt. i)aid '.'.'.'.'...'.'.'.'.'.'.'.'" 787* Redemption fund !"'"!]!!!]!!*!!]1!! 2 Furniture and fixtures .'...'..'.'. 10' Exchanges held by C. H .-.-........]... 70' Stocks and bonds, lYac tion bonds held at C. H. : ' 2, 209 shares Sea Girt land $100 000 1,055 shares Spring Lake [ 500'000 166.52 033.63 096. 57 078. 11 114. 82 630.09 518. 64 747.52 4.73 475. 75 603. 01 000. (X» 067.17 250. 00 (KX). 00 005.46 Received the above. 600,000.00 1, 827, 792. 02 Robert M. Yardley, Receiver, INVESTIGATION OF NATIONAL BANKS. 359 Upon taking charge of the bank iu a. m. March £0th it was impossible to get a correct account of items of different kinds, some of which were in process of collec- tion. The amount as shown in report of ioudition is as near as we could get it; which will account for the excess of $6,669,67 in amount turned over to the re- ceiver and the total to be accounted for. These matters were explained to Mr. C. J. Stoddard, of the Comptroller Office, who was present. Assets to he accounted for. Overdrafts, Schedule A $131,(X)2. 14 U. S. bonds to secure circulation 50, 000. 00 Bills discounted, Schedule B 811,427.20 Redemption fund 2, 250. 00 Furniture and fixtures 10, 000. 00 Due l)y banks, including reserve agents. Schedule C ' 35, 946. 34 Cash items in Dep. 3, 20, Schedule I). . . 1 11, 033. 63 Country checks, Dep. 3, 20, Schedule E 2, 855. 93 Country checks on hand 3, 20, Schedule G 1, 072. 01 3 927. 94 Cash, Schedule F 42,' 009.' 36 Cash items. Schedule G 13, 096. 57 Memo., advances to clerks' ac, salaries 577. 46 Exchanges held by C. H 70, 005. 46 Fraction bond and Sea Girt and Spring Lake stock 600, 000. 00 1, 771, 276. 10 Amount due by banks, collection account, Seheduh' M 9, 568. 40 Amount due by banks, bills disc(mnted, account Schedule N 5, 925. 59 Amount collections paid. Schedule O 2, 794. 46 Overpaid by New York, Schedule F 30, 083. 81 Overpaid by Boston, Schedule P 1,471.97 Overpaid by Chester, Schedule P 2. 02 m 1, 821, 122. 35 Condition of ths Keystone National Bavl when ialen charrfc of by W. P. Drew, Xational Rank Examiner, 10 a. m., March ^Oth, 1S91. Overdrafts (schedule) $131, 002. 14 U. S. bonds 50, 000. 00 Bills discounted (Schedule B) 811, 427. 20 Redemption fund 2, 250. 00 Furniture and fixtures 10, 000, 00 Due by banks (Sdiedule C) 23, 424. 00 Due by Tradesman's Na.ticnial Bank, N. Y , 1, 757. 32 Duo b v Chase National Bank, N, ^' 765. 02 Cash items ac. Dep. 3, 20 (Schedule D) $11, 083. 63 Countrv checks, ac. Dep. 3, 20 (Schedule E) 2, 855; 93 13, 889. 56 Cash, Schedule F 42,009.36 Cash items (Schedule G) $13,096.57 Countrv checks (Schedule G) 1, 072. 01 14,168.58 Memo., advances to clerks, ac. of salaries 577. 46 Exchanges for C. H. 3, 20, held bv them 70, 005. 46 Traction bonds held by C. H . . . . '. 100, 000. 00 Sea Girt and. Spring Lake stock 500, 000, 00 1,771,276,10 Liabilities March 2©, 1891: = Due bills (Schedule H) 43,70L51 Circulation 45. 000. 00 Deposits in a. m., 3, 20 (Schedule I) 29, 240. 67 Dividends unpaid 6. 120. 00 Individual deposits (Schedule J) 1, 300, 513. 07 Due to banks (Schedule K) 13, 743. 49 Certificates of deposits (Schedule L) 7, 971. 91 Clearing-house loan 334,286.60 1,780,577.25 ^V: 360 INVESTIGATION OF NATIONAL BANKS. Received the followinjr from W. P. Drew, national bank examiner: Certificate of stock of Sea Girt Land Imp. Co. — No. 251.. 242.. 241.. 240.. 237.. 232.. 220.. 219... 216... 125... 124... Shares. 27 170 435 100 273 20 100 100 600 50 50 No. 123. 121. 122. 118. 119. 120. 191. 195. 194. Certificate of stock of Spring Lake Beach Imp. Co. — Shares. No. 89 200 90 200 91 200 92 200 No. 123. 72. Shares. 50 50 50 25 25 50 14 10 10 2,209 Shares. 5 250 1,055 Bradford Mills Co. certificate. No. 13, 100 shares. Note of M. Elizabeth Lucas, estate of J. C. Lucas, Jan. 12, 1891. One year, $9,100. Due bills and checks as follows received from John Bardslev May 18t'h, 1891, to be charged against the city treasurer account and credit to the account of John Bards- ley in individual ledgers : Due bill No. 14,477; 3, 19, 91 Due bill No. 14,487; 3, 20, 91 Keystone check — No. 152 167. 169. 170. 171. 172, 173. 174. 176. $766. 22 706. 88 25,000 125, 000 949. 76 903.28 714. 81 833.34 3, 270. 94 3, 612. .34 1,866.72 No. 177 $1,761.09 178 4,534.34 179 1,645.27 180 1,464.10 181 56<).52 182 2,790.03 184 663.46 185 10,000.00 186 9.000.00 196, 043. 10 Certificates of stock of the Keystone National Bank, received by W. P. Drew national bank examiner, from Samuel B. Hney, attorney for estate of J. C. Lucas on March 28th, 1891 for the purpose of cancellation. ShareH. No. 340 200 617. 618. 628. 629. 847. 851. 876. 879. 899. ^, ^ Shares. No. 900 100 100 100 50 100 100 100 200 901 225 902 241 923 200 924 100 925 200 928 100 200 200 Total 2,.516 Letter from Samuel B. Huey, attorney for J. C. Lucas to G. B. Haines, president dated 10, 4, '88, with reference to lithographic establishment number 31 and 35 N. Tenth st. Receipts from Read & Petit dated 5, 23, '91, for deed Mrs. Lucas to Keystone Bank for Sea Girt interest, and copy of receipt given to Mrs. Lucas. Bank books J. C. Lucas, number 2, Jno. C. Lucas and check register J. C. L., also check 12, 27, 1882. J. C. Lucas on Manufacturers' National Bank in favor of G W. Marsh, cashier, for $30,000. * *' Check 9, 10, '83, J. C. Lucas on Keystone National Bank, favor of Keystone Nat. Bank for $60,000 and check 1, 15, '85, J. C. Luca« on Manufacturers Nat. Bank favor G. W. Marsh, casliier, for $38,000, also lot of canceled checks amounting to $98,447 18 signed Jacob Myers. INVESTIGATION OF NATIONAL BANKS. 3G1 *l Seven packages bonds, mortgages, deeds, and etc., with reference to Fremont House and Sea Girt properties, found drawer of cashier's desk May 27, 1891 — 4 stock certificate books ; 1 stock ledger ; 1 dividend book ; 1 minute book. Individual ledgers, general ledgers, discount records, cash books, and other mis- cellaneous books, etc. One bag mixed coin amounting to $72.87 and (me bag mutilated coin, $4.04, found in vault and said to belong to Jno. Hayes, cashier. Due bill No. 14,480, amount $1,037.05, was given to Wanamaker & Brown on March 19, for which they gave their checks for $1 .0(X).50 and $36.55. The checks were charg<'d to their account, but afterwards the due bill was returned in exchange for the checks, leaving account of W. & B., as before the entry. Four accounts current with Tradesmen's and Chase National Bank New York, dated Jan. and March, 1891. Package papers with reference to deposit of city treasurer March 20, 1891. May 28, 1891, received pkgs. etc., above described. Robert M. Yardley, Beceiver. Q. Is that a copy of the formal iDstructions given to the receiver, Mr Yardley, from your ofl&ce? — A. This is the regular form of instructions delivered to receivers, and I am informed by Mr. Stoddard that this copy is the one handed to Mr. Yardley when he received his commis- sion. Exhibit 16. Duties of receivers of national hanks. Treasury Department, Office of Compiroller of the Currency, Washington, D. C, Sir: Having qualified as receiver of the receipt of your coniuiission from Mr. National Bank of , and ujion -, national bank examiner, in charge of the bank, and this letter, you will immediately remit the cash on hand to the Treasurer of the United States by exchange on New York, for the credit of the Comp- troller of the Currency, for account of the creditors of the National Bank of -, and all moneys hereafter collected must be forwarded to the Treasurer as fast as $1,000 shall be accumulated. You will also without delay prepare and forward to this office an inventory of all the assets of the bank as they existed at date of suspension, the good, doubtful, and worthless assets to be scheduled separately at their nominal value, and an estimate to be made of the actual value of the doubtful and worthless. The following process should be observed : All the bills receivable are to be scheduled by themselves, and the several columns should show ''number," "maker," "endorser," "rate of interest," "date," "ma- turity," " good," " doubtful," " worthless." Any bills which you think are not good for full value should be placed in the doubtful column. The same process should be observed with respect to "other assets, " and such items in either schedule as need further explanation should be accompanied Avith remarks for the information of this office. Schedules of the liabilities of the bank include an alphabetical list of the depos- itors and those holding certificates of deposit, creditor banks and amounts due to each, and contingent liabilities, such as rediscounted paper. A list of the stock- holders of the bank as ap})eared on the books at date of failure, is also required. Blank forms for quarterly reports will not l»e needed by you before the end of the next quarter, when the various assets now scheduled will appear under appropriate heads. The total assets at date of suspension will never change, but as the assets are col- lected the amounts will disappear from items 21. 22, and 23, and appear in items 10 to 19. I inclose herewith a printed form of blank proof of claim, and also a blank certifi- cate to be issued to the creditors who have proved their claims. You can order a sufficient number to be printed for use hereafter. The proper course in proving claims is for each depositor to present his claim, supported by an affidavit, and the production of the pass-book, whereupon it is compared with the books of the bank, and if it agrees therewith and you are satisfied that the books are correct, the certificate may issue; but, otherwise, you should require evidence of a proper character sufficient to establish the validity of the claim. Ill ' :J 362 INVESTIGATION OF NATIONAL BANKS. Certificates of deposit and other claims are to be proven by affidavit, and to your satisfaction. They can not he used as offsets against indebtedness to the hank. In all cases, whatever constitutes the evidence of indebtedness upon which ii claim against the bank is based, must be surrendered to you upon delivery by you of your cer- tificate of proof of claim. No other offset is allowed than money on deposit belongiug to the maker of a promissory note approaching maturity in the bauk, which may be applied toward payment of such notes. In applying such deposits in this way, the following general rule may be observed^ If the depositor is the maker of one or more promissory notes, such notes may be charged to his account, against the amount to his credit as depositor, provided that such amount is sufficient to cover the aggregate of such notes; or, if not so sufficient, then provided it is made sufficient by an additional deposit. Care nnist be taken against allowing the depositor to api)ly his deposit on a secured note while unsecured or less well-secured obligations of his are unprovided for; nor should deposits be applied to secure obligations of which the makers Jire stock- holders in the bank, unless adequat(5 and satisfactory security is given for the same amount, or so much thereof as m&y be necessary for the payment of assessments, in case such assessments should afterwards be laid up to the par vulue of the stock. When the deposit is less than the aggregate indebtedness, including stock lia- bility, the receiver may elect where he will apjdy it as an offset, so as to j)reserve to his trust whatever security attaches to any part of the indebtedness. Kotes,»when settled, may of course be surrendered, and a record of the transaction may be kept by crediting bills receivalde with the amount of the notes, and debiting cash with the amount of cash received, and "offsets allowed and settled" with the amount of deposit allowed as offset. Special deposits and collections which do not belong to the assets of the bank may be delivered to the parties owning them, but great care must be exercised that the ]>arties to whom they belong are not indebted to the bank, and that they are the rightful owners of such deposits or collections. Except in emergency, no law expenses .should be incurred, and no attorney should be em]>loye(l, nor attorney's bill ])aid, without the matter first being submitted to this office ft>r approval. In the matter of compromises of bad or doubtful debts, and sales of real estate or pi.'rsoual proj)erty, the following process should be observed: 1. Whenever a tlebtor pro])oses to compromise, and upon full consideration of all the information obtainable in regard to his ability to pay, and the means available for compelling him to do so, it bt^comes evident that the debt can not be collected in full, the receiver should submit the facts and the proposition to the Comptroller of the Currency, accompanied with his recommendation as to whether a conij)romise should or should not be made, and also as to whether the terms proposed are or are not the best obtainable. 2. Upon being advised that there is no objection on the part of the Comptroller, the receiver may present to the court a petition, based on a statement of the facts, all interests being summoned to attend as far as practicable by representatives of each class. 3. If an order of the court is mnd(^ aUowing the compromise, the receiver shall transmit the rin-ord to the Comptroller, for examination, approval, and file. If any questions arise as to collections or offsets which you may find difficult to settle, you should advise this office of the situation, and you will receive in- structions in the matter. Vou will be expected to preserve a prudent economy in the administration of your trust, anublislied in accordance with law. It is not exx^ected that you will make extra efforts in all cases to notify claimants that they shouhl come forward and prove their claims, but where you know the address of a bona Jide creditor, who would not be likely to see the advertisement, it would be an act of sini]>le justice to send hi in a written notice. I also enclose written forms for the transmittftl of moneys to the Treasurer U. S., and notice to the Comptroller of such transmittal, for your guidance. You can have a sufficient number of these printed for the purpose. A sufficient number of the proof of claim and the receiver's certificate may also be printed, and they are to be forwarded to this office when the receivershix> is closed. Please send me one or more samples of (^ach of them. A copy of the compendium of the mitional banking laws, and a copy of the Comptroller's last report, containing a synopsis of judicial decisions in important national bank cases have been forwarded to the examiner for your use. i < h ^ f INVESTIGATION OF NATIONAL BANKS. 363 You will keep this office fully advised by letter of your acts and proceedings, confining each letter to a particular subject as far as practicable. Additional in- structions will be given you from time to time as may be necessary. If you find paper in the bank upon which you can conduct correspondence you may have your name and title and the charter number of the bank printed in any available place over the bank heading. If exchange on New York can not readily be procured, remittances to the Treasu- *rer U. S. may be made by express at bankers' rates. Forms of advice of such remit- tance and notice to the Comptroller are herewith enclosed. Very respectfully. Comptroller. Q. The reports of the receiver, as they have been made from time to time, are the papers which I now show you [handing witness papers] ? — A. These papers are reports made by Mr. Kobert M. Yardley, receiver of the Keystone National Bank of Philadelphia for four separate dates, June 30, 1891, September 30, 1891, December 31, 1891, and the fourth and last, March 31, 1892, and which is the last report received from the receiver. (The papers were put in evidence and marked Exhibits 17 to 20 inclu- sive.) Exhibit 17. Beport of the condition of the Ketjstone National Bank, in the hands of receiver, for the quarter ending June SOih, 1891. ASSETS. Assets at date of suspension, viz : Bills receivable (schedule with first re- port Other assets (schedule with first report) , Excess of bonds over circulation Total. $811, 062. 5] 909, 848. 90 5, 000. 00 Good. Doubtful. $294, 380. 45 ' $372, 651. 29 276,225.57 I 624,341.19 5,000.00 I Total assets at date of suspension. . . Additional assets coining into possession of receiver since suspension (Schedule A). . . . Premium, interest, rent, etc., received since suspension (Schedule B) Total assets at this date DISPOSITION OF ASSETS. Amount collected b^ receiver to date: From bills recefvable (Schedule C) From other assets on liand at date of sus- pension (Schedule D) From oilier assets acquired since suspen- sion (Schedule E) From premium, interest, rents, etc., (Schedule F) 1,726,511.41 58, 505. 57 76.92 1, 785, 093. 90 575, 606. 02 47, 694. 95 76.92 623, 377. 89 Total amount collected by receiver . . Oflfsets allowed and .settled on bills receiva- ble (Scliedule G) On other assets (Sclieks 150, 059. 45 726, 748. 18 Claims in dispute (Sok.s (S<'he n Kvle " Pro. fees on ck. Citizens l^I^at. Bank Balto Note payable " " " " Collection items, Boston, Mass " Chicago, III Camden, N.J Norristown, Pa AsheviUe, N. C Batavia, N.Y Lancaster, Pa W. Chester, Pa Richmond, Va Balto., Md Cha8e,N. Y Media, Pa Wilmington, Del Washington, D. C Harrisburg, Pa Toronto Pittsburg Met. Pa W.Philada Reading, Pa Quebec Scranton Overdrafts, corrections of Ist report ■ Caah. Good. «« 41 14 41 «4 •4 44 4. 4t 41 4( 44 44 41 4« M M (4 r. May May Mar. 26 29 Apl. 1 Mar. 31 Good. $36. 30 l.^>0.00 •JS2. (K) 140. 06 i>0. 16 70.02 85. 00 400. 00 100.00 50.00 100. 00 126.67 55. 00 50, 00 2, «:«!. 50 4(i. 44 100.00 73. 1 1 133.00 400. 00 113.40 50. 00 l.'H). 00 208. 25 100.00 100. 00 93. :{1 100. 00 101. 07 205. 00 1(M>. 00 81.97 46. 43 200. 00 250. 00 100. 00 1,645.10 250. 00 500. 00 250. 00 14.'). 00 150. 00 181.68 <)9. 95 250. 00 140.00 200. 00 lOit. 00 200. 00 00. 00 200. 00 184.33 110. (M) 4, 000. 00 64. .')5 100. 00 200. 00 1, 500. 00 .50. 00 .'K). 00 100. 00 200. 00 100. (H) 75. 00 .57. 85 61.20 167. 91 200. 00 243. 00 255. 00 145.00 255. 15 300.00 255.15 25.40 55.25 290.00 125. 00 280.00 Doubtful. Worthless. A f Share Ho. Maker of note. 361 362 363 364 365 366 367 368 369 370 371 372 373 142 143 145 161 165 256 257 169 179 174 182 185 176 184 258 187 191#| 197 198 69 91 195 204 187 81 107 263 205 78 206 203 209 127 150 192 200 213 218 215 83 226 221 242 80 222 243 275 220 80 229 231 Collins & Bros Jno. Smith A. W. Turner M.Taft8 C. S. Sullivan &. Co J. B. Dunphy Hanalsan Bros. «fc Co J. A. Wilson Allen Dumas &. Thompson W. J . Thompson Allen Dumas & Thomp.son J. H. Emerson Lee Wolf it Bro John Mair do L. H. Patterson H.Irvine Andrew Hughes Isaac H. Evans J. W. McCaflerty Chas. n. Lynch Mary Harley Valleo Bros. & Co Adam Koehler, jr Jacob Greer Jno. T. Scott, jr Geo. W. 'Smith 29 3 30 6 7 9 9 20 20 8 12 6 6 10 20 June 12 Apl. 1 June 12 12 14 14 18 7 10 16 17 17 13 27 20 10 3 June Maj^ June May June Mar. Apl. June Apl. May Less amt. due Lancaster, retained as an offset by them from collections made of bills dis- counted, Nos. 350, 353, and 355 Mar. June Apl. June July Apl. June- 20 July 13 Demand June 19 Apl. 3 June 30 30 Good. $12(». 00 200. 00 280. 00 142. 50 290. 00 (U. 38 200. 00 100. 00 280. 00 1, oo:{. 37 280. 00 86.77 .WO. 00 1,570.42 2, 100. 00 231.00 6.'. 00 101. r.o 207. 70 40. 00 120. 00 100. 00 206. 88 75 Doubtful. 9i 1. /; 401.80 100. 00 1. 345. 39 100. 350. 200. 00 00 200. 00 75. 300. 300. 150. 66. 750. 33. 225. 00 00 00 00 01. 00 88 CO 313. 126. 2'). 100. 400. 288. .59 .50 00 00 00 68 1, 200. 1, 000. 50 00 00 00 3, 500, 54, 5). 25. .'>o;i, r)00, 00 22 00 00 00 00 42, 314. 54 421. 81 41, 892. 73 Worthless. $1.54.00 1.835.21 1, 835. 22 157. 50 400.00 453. 47 317. 29 100.00 100.00 $400.00 5, 352. 69 400.00 'II 5,352.69 400.00 368 INVESTIGATION OF NATIONAL BAITkS. Schedule D. — Quarter endinff June SO, ISOl. Collcciions from ''other aftsctx," on hand at date of suHpension, by the receiver of the Ketfsione National Bank, of PhUadel- phia, Pa. Description of assets. 1 Amberly, G«o Burke, P. C Crawford, L. F Collum,R. S Dengler, R. H Em8,H.C Geipet, F Harrington, E. S Knauff,T.C. C« Kerbaugh,J. F Kel8ey,H. W - Lee, HattieL - Longacre, A.M Lesley, E.W Lucas, Sam'l McBride, Mrs. J. W ,. McGlade, Mary McGowan, A. W Miller, J Nolan &. Bro Pattison, J. B Ridley Build. A 880 Sargent, "W.,jr Stockton, N.A The Ba<'.ku8 Portable Steam Heating Co linger, A Wenrick, A. B Asheville, N. C Citizens' Nat. Bank, Balto Nat. State Bank, Camden Del. Co. Nat. liank, ('heater. Pa Ft. Dearborn Nat. Hank , ('hicago Ist Nat. Bank, Conshohocken Doylestown Nat. Bank Frankford 2d Nat. Bank, Philad'a German town Nat. Bank Ist Nat. Bank, Harrisbnr^r Integrity Trust, etc., Philad'a J enkintown Nat. Bank Manayunk " " Ist Nat. Bank, Media Northwestern Nat. Bank, Norristown Merchants and Manufacturers Nat. Bank, P'b'gh., Pa National Iron Bank, Pottstown, Pa Sale Deposit Bank, Pottaville Northern Savings Fund, Philad'a Ist Nat. Bank, Nonistown Keystone Nat. Bank, Read ing. Pa 1st Nat. Bank, Bichmond, Va Ist Nat. Bank, Scranton, Pa German Bank, Wheeling, W. Va W. Philada.Bank Farmer's Nat. Bank. W. ( Chester, Pa Union Nat. Bank, Wilmington, Del N.J. Trust and S.Dep. Co., Camden, N.J Caniden Safe Dep. Co Tradesmen's Trust Philada Industrial Trust Tradesmen's N at. Bank, N. Y Chase Nat. Bank, N. Y John Hayes, on account 9, 13, '90, S. N. Broadbent, on account .•. Cash, 3, 20, '91, ck. L. Dolman, Chester. $40, •••«•> •»•••■■•-•-•-■••••»••••••••••■ >■••••> Memo., advances tocl'ks Mutilated coin...... ..................•.••••..••.•.•••••-•«•••.•••...■ Good. 3, 2, 2, 1, 41, $3. 2. S. 5. 31. 17. 39. 2'22. 240. 1. 4. 2L 36. 9. 21. 4. 70. 19. 4(). 378. •L 4. 14. 5. 60. 053. 556. 545. 822. 25. 31. 606. 579. 182. 242. 58. 96. 29. 7. 678. 103. 290. 542. 243. 700. 247. 419. 433. 594. 92. 150. 205. 679. 443. 66. 7.-)7. 765. 18. 100. 40. 121. 895. 577. 98 79 72 Ml 90 70 13 35 Doubtful. 32 47 86 00 51 77 03 07 00 00 85 80 19 25 56 00 67 76 29 21 81 61 77 47 38 03 10 13 75 90 50 25 03 50 08 00 34 14 29 63 21 18 80 29 37 15 74 04 42 00 32 02 65 00 00 01 22 46 $84.73 65,274.68 84.73 INVESTIGATIQN OF NATIONAL BANKS. 369 Schedule Y..— Quarter ending June SO, 1891. Collections of ''other assets,'^ acquired since suspension, by the receiver of the Keystone National Bank of Philada., Pa. Description of assets. Memo. John Hayes . . • W. B. Jones, overdraft Pro. fees on ck. Citizens' Nat. Bank, Balto Collections items. Citizens' National Bank, Balto Note Collection items, Boston, Mass Chicago, 111 Media, Pa Reading, Pa Scranton, Pa Tradesman's, N. Y. . Chase, N. Y W.PhU Good. $50.00 28.70 L20 10.56 150.00 3, 944. 75 2, 936. 03 324.45 108.66 49.95 20,011.28 3, 281. 41 10.51 Description of assets. Collection items, W. Chester, Pa Wilmington. Del. . . Morristown, Pa Toronto Lancaster, Pa Cash Collection items, Pittsburg, Pa., Met Bank of Batavia, N. Y Asheville, N. C Quebec Harrisburg, Pa Richmond, Va Domestic collections, Wm. E. Hinch. W. F. Shaw . . . Good. $19.90 22.52 151.75 51.75 64. .33 6.00 418. 78 511.69 79. 31 35.05 44.98 38.40 125.00 350.00 Schedule Y.— Quarter ending June SO, 1891. Premium, interest, rent, etc., collected by the receiver of the Keystone National Bank of Philad. Pa. Int. on No. 277, paid 3, 21, G. B. Aldrich, No. 142, " No. 257, " No. 69, " No. 91, " No. 275. Pro.fee8.No.l42, No. 182, No. 258, No. 69, No. 91, No. 107, No. 263, No. 222, it tt ii tt it ** «t due Mch. 18 . " Apl.20.. " May 23.. " Mcii. -20.. " Apl.20.. 6, 24, E. C. Richmond & Co., [demand 5. 20, John Mair, due Apl. 20 .. 5, 20, John Mair, 5, 25, 1. W. McCafferty, 6, 10, Wm. Calhoun, 6, 3, A, Koebler,.ir., 6, 5, Isaac H. Evans, 6, 10, Wm. Calhoun, It u 6, 12, Kline & Bro., " Koch laiison , Retd. check ; cash items ; Nace and Swart ley Protested check : F. A. Maguire; cash items; G. AV. Cl(»tlii»'r And. McClus; " Jno. Young W.H.Smith; " J. J. Duglir B.M.Cooper; " E.M. Cooper W.Calhoun; " D. T. T. Xirliols J. Kemble Building account ; cash items ; J. Ke vnolils, jr J, A. Kelly & Co. ; " J. .\. Kelly & Co W.J.Baker; " W.,T. Baker Jacob Myers; " JaeobMyers J. W. Catharine, jr. ; " city treasurer Do Bo Do. Do. $15. 00 25.40 18. U2 7.80 2. 002. 02 4, J>58. 04 501. 70 240. 00 11. :i5 240. 00 221.40 500.00 10.45 11.36 32.06 75.00 * 'i79.'87 43.08 2:{9. 12 75.07 2, 310. 18 285.00 600.00 35.11 Doubtful. $20. 00 r*. 60 50.00 156.00 No. 291 294 302 304 310 327 331 332 333 83 275 183 190 230 202 Maker. On biUs receivable. Alphas S. De Lessa. . . . W.S.Emerson Jno. O. Bowman F. A. Davis Vicenti Portuondo F.A.Davis Ferd.AV. Noler J. G. G(»s. note $97 instead of 97 c. in cash items $96.03 Tradesmen's Nat. Bank, N. Y., credit should have been made before bank closed 550.27 Error in footing of other assets " doubtful " in Ist statement .90 9.41 ............ Mutilated coin Counterfeit notes. 2 $10 20.00 Dif. between assets and disnosition of assets 26.69 582.42 190.31 116.03 Schedule J- •Quarter ending Jan. SO, 1891. Bills receivable in the hands of the receiver of the Keystone National Bank, of Philadelphia, Pa. m No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 34 35 36 37 38 39 40 41 42 43 Maker. L. L. Cann . . M. D. Locoy. H. B. Driver Chas. Lawrence. \ranDyke&Co. James Kennedy . P. Wallace James McCormick. . . C. C. Lippincott W. Scarborough H. H. Atkinson & Co H.B. Driver G. Byron Morse Chas. E. Glentworth Edmund Stewart . . . Morris L. Leslie W.F.Shaw John Smith H.W.Kelsey Willis G.Hale. ... Wm. Calhoun John C. Carberry . Jas. N. Elliott Jas. L.Allan John M. Driver... Alfred Hindle Robert Cams James Morgan.... Robert Cams James L. Allan ... S. E. Packard, agt . 32 Harvey Filley & Sons. 33 S. E. Packard, agt. . . do W.H.Brown James Morgan D.L.Drew S. E. Packard, agt. F.J. Primrose. , do Robt. Canns . . . Chas. McGlade. Wm. H. Moyer. Endorser. L. L. Cann M. D. Locoy. E. P. Goodman. H. B. Driver B.M.Goldberg Geo. M. Vickers Jas. Kennedy, presd., Atkinson Bros. P. Wallace Kejstone Watch Co., Atkinson Bros. . do Atkinson Bros Jno. M. Driver, H.B. Driver. G. Byron Morse Wm. Calhoun Edmund Stewart C. A. Thompson, J. Hayes, treas W.F.Shaw John Smith .., H.W.Kelsey Willis G.Hale John Hayes, treas W.S.Wolford W.S.Wolford Faulkner T i J } ' .^' • 372 No. 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 70 71 72 73 74 75 76 77 78 79 80 82 84 85 86 87 88 89 90 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 108 109 110 111 112 113 114 INVESTIGATION OF NATIONAL BANKS. Schedule J. — Quarter etiding Jan. SO, 1891, etc. — Continued. Maker. Jas.S. Allan Chaal McGlade F. J.Primrose D. J. Thompson Frank J. Primrose. . Chas. McGlade Wm. H. Moyer W. B. Hutchinson, etal. Frank J. Primrose. . Chas. McGlade Wm. H. Moyer Thos. W. Dickson ... Spring Lake Beach Impt. Co. Wm. H. Moyer , Wm.H. Moyer Jas. L. Allen S. E. Packard, agt Thos. E. Warman Jas. J. King Robt. Canna Penn Roofing Co. . Roht. Canns Lewis U. Wiley . . J. H. Reigle . Robt. M. Wiley. Wilson E. Allen.. Michael Meagher. Jacob Hartman... W. J. Simmons . . . Jno.F.Zcbley .... Wm. M. Stewart . Hugh Graham D. Chambers Clinton V. B. Getty Preston Price Mai'ie Brolasky... Alfre«l I). Caniis.. John J. Pyle Wm. B. Greer Chas. S. Salin Excelsior Hosiery Co Wm. Auld J.W. Baker Reynolds, Goodyear &Co. (/'has. White Saml. R. Mink Wm. J. Simmons G. W. M. Kigot Rich'd S. Galium M. McNulty Robt. M. W'iley Emma C Reed Wm. J. Simmons A. M. Zane B. H. Davis James B. Carey Jacob G. Dietiick Wm. J. Simmons Chas. P. Herold Dean C. Osbom William D. Troupe . . Charles Beamish W.W.Watson Amos O. Chase John McFadden Endorser. Faulkner & Allan .. Jno. S. McKinlay . . . F. J. Primrose Faulkner &. Allan . . , F. J. Primrose Jno. S. M 00 200. 00 "'"55. 66 "156. 66' "*i25. 66" " "i95. 66' *""272.' 66* '"256.' 195. 66' 00 ""i75." 65. 66' 00 ""75. 66' "m. 1,000. 66" 00 • • • $1, 976. 78 "2,' 261.' 70 4, 454. 01 8, 105. 95 '4,*3i6.'92 5,666.66 4, 506. 21 4,019, '5,' 666 6.200. 1,863 92 66 00 00 INVESTIGATION OF NATIONAL BANKS. Schedule J.— Quarter ending Jan. SO, 1891, e i, 570. 00 "i,' 256.' 66 1, 915. 00 356.66 1l I I } « 374 Ko. 217 219 222 223 224 225 227 228 232 233 234 235 236 237 238 239 240 241 244 245 246 247 248 249 250 251 252 253 254 255 259 260 261 262 264 265 266 267 368 269 270 271 272 273 274 213 INVESTIGATION OF NATIONAL BANKS. Schedule J. — Quarter ending Jan. SO, 1891, etc. — Continued. Maker. Cox & Sons A. J. Kellogg Bradford Hills Land Co. Isaac Fleming , Heniy Kedman , .r. L. Crauiner Mary H. McGla■■•••• D.L.Drew James M. Battersbv.. Dell & Jos. C. Nob- lit & Co. G.W.Marsh D.L.Drew Hortio G. Kem John J. Py le J. Henry Gercke Endorser. Chas. C. Torr A. G. Kellogg.... Nelson F.£vans. F.A.Davis J. G. Ramsdell Jos. A. Wilson Chjis. McGlade J. A. Wilson Geo. E. Dearborn H.VanBeil & Co n. J. • It t* «i it June 16, '91 74.50 "il.'vi 1,000.00 200.00 i, 566. 66 600.00 2,000.00 375.00 Less error in addition Ist report Schedule H with clearing-house collateral for loan . 1, 210. 00 900.00 500.00 8,000.00 53, 859. 44 .32 73, 534. 80 5:}, 858. 12 i 73, 534. 80 182,319.60 I 293,763.80 236,178.72 , 367,298.60 905. 00 1,000.66 1,000.00 j.'ii 144, 230. 77 144,230.77 144, 230. 77 Proof. Amountof Ist report $811,662.51 Amount paid to June 30, '91 63, 954. 42 Amount on hand J une 30, '91 747, 708. 09 On hand. Good $236,178.72 Doubtful 367,298.60 Worthless 144,230.77 747, 708. 09 Paid. Goo4lcash $41,892.73 G«»od oflMcts 10, '09. 00 Doubtful 5,352.09 Worthless iiMAM 63,954.42 INVESTIGATION OF NATIONAL BANKS. 375 Schedule K.— Quarter ending June SOih, 1891. Assets, other than hills receirahle, in the hands of the receiver of the Keystone National Bank of Philadelphia, Pa. Description of assets. Overdraft$. R. A. Arthur H. Askin H. J. Brady JohnBardsley .J. M. Battersby John Barron , J. M. Bradford Beach House C.E.Billen , O. C. Bosbyshell H. Brown Chas. Brown H. L. Bowman, jr ^ Fannie Buckheister Bureau Car Co. No. 1 J. W. Catharine Robt. Cams Geo. Canby Sarah E. Collier Wm. Calhoun Geo. E. Cunimings Sarah Crump H. J. re 62. 15 Good. $0.05 4.00 42.55 8.70 27.69 4.50 23. 25 2.01 23.49 3, 204. 32 40. 27 30. 30 152.05 9.00 LOO 5.00 38.80 134. 61 1.18 1, 210. 08 150. 00 11.28 3.30 3.50 1.80 20. 00 865. 29 .23 .05 44.85 L04 2.84 752.84 .75 20.46 28.74 86.00 A Doubtful. ; Wortldess. $149. 99 331. 00 1,287.71 34, 088. 52 i56.78' 1 hilada. Harness Stipply Co., petty iXS. Paul, ptttv '.... Edw. \V. Pattoii P. I. Patton ■■ Nellie C. Parker, petty Herman Perls, petty Penn. Mat. Elec. Co., petty G. R. Preston, jr. 130. 11 Isaac S. Pine, petty W. H. Ran & Co., petty L75 .29 4,879.42 i 181.00 i 18.36 i '. 4,900.66 '!...... i!..'.' 1 L467.33 % if I 254.89 39. 32 1,198.85 7, 631. 33 3, 772. 94 499. 37 6, 078. 75 270. 53 10, 359. 29 11. 744. 94 5, SC'Q. 98 2, 055. 82 676. 14 643.34 58.50 5:55. 35 ?5. 46 2, 140. 26 661.80 6. 0(1 47.07 $2, 589. 66 67.96 62. 15 985. 75 2.00 54.55 '-•iu-_^ I . i- 'i I 376 INVESTIGATION OF NATIONAL BANKS. Schedule K. — Quarter ending June 30, 1891, etc. — Coutiuued. Description of assets. Overdra/U — Continued. Good. Francis Rankin, pettv A. 1). Ramborger, petty .' A. W. Ran kin, petty Remington Pyne, petty J.S.Ruldle,pVtty , J. O. K. Roberts, petty Terence P. Smart, treas., potty W.F.Shaw Jesse W. Starces, jr., petty F. H. Sanford, iH^ty Jas. "W. SayreH, petty J. H. Shaw, manager, petty Santa Clara \V iiie Co., jK-tty D. B. Saxton, petty J. Steehnan, agt., petty Geo. W, Shedwick, petty Geo. W. Stewart, treas., petty David Stewart, petty Jolm Sinipsou, petty H. Oscar Smith, petty - Stiles & Fox, petty. ! J. R. Shirley, petty Wm. Snowden, petty Mrs. C. K. Shoemaker, petty H. C. Schomackt:r, petty C. M. Southwell, petty J. W. Schuldt, petty Jacob Stultz. petty - N. W. Talbot, petty Mrs. A. If. Trenholiii, petty T. J. & Co., Toddinytton. ]M>tty Anna K. Thonip.soii. petty Jos6 Torya, petty \ C. A. Thompson, petty E. W. Thonie i J. M. Vandever, petty I . Jo86 Vivo ' . Vinelan«l H. J). Watts, petty i. .lohn A. \Viillae«>, petty {: M. B. VV ami maker John Wanamaker, per.soiml W.Walker R.H.Walker J. R. Wear & Co., petty Wm. Webb, petty Chas. West. i)etty Jos. A. Wilson, iHJtty , F. H. Whiting, petty C. A. Wood, trustee, petty Due by banks: Banks of Batavia, Batavia,N. T Nat. Bank of Commerce, Boston, Mass Nat. State Bank of Camden, N. J Ist Nat. Bank of Media, Pa Merchants and M'f 'rs' Nat. Bank, Pittsburgh, Pa Farmers' Nat. Bank, W. Chest«r, Pa Items from Dep., ;J, 20 : City treas. ek., Drexel & Co City tresis, ck.. Keystone , Do Do $89 00 Doubtful. 10 .08 5.24 15 9.84 4, J)29. 98 334. 36 Do Do Do Do Do Ccuh itema. 2, 11, '91, pro. ck., L. Dolmas. Chester 3, 13, '91, ek., John Hayes, balance 9, 13, '90. ek., R. E. Trust, B. M. Broa0. m 14.',. 00 200. 00 4 .97 200. 00 112. 02 ^ _ 70,00.^.46 Traction bonds held Sy clearing house . . .'. 100, 000. 00 '2,250.00 5,666.06 $162. 00 98.50 7.68 250.00 45.00 50.00 700.00 Sea Girt & Spg. Lake stock, fu Redemption fund Furniture and fixtures Excess of bonds over circulation. .^00, 000. 00 io, 666. 66 202,054.05 I 623,834.55 9,166.11 Schedule L. — Quarter ending June 30, 1891. Other assets acquired since suspension in the hands of the receiver of the Keystone National Bank of Philada. Trd. C. Greipel, additional overdraft Overdrafts, correction of foi-mer statement Katioual Bank of Commerce, Boston, Mass 155.21 Camden, N.J , ^'^12 ?^ Harrisburg, Pa r I ^* 15 Media, Pa „ „„ /rJ Chicago. Ills ^'??^?^ Wa.shin<,'ton, D. C 116.10 Manhattan Life Insurance, J. Bardsley : 487.00 4,977.20 41 $10, 810. 62 10, 810. 62 Schedule O.—Qtiarter ending June 30, 1891. Loans paid and other disbursements by the receiver of the Keystone National Bank, of Philadelphia, Fa. On Mar. 19, M. J. Miller presented check for $475.75 in payment of a note for like amount due Apl. 18. The note was held by the clearing house as collateral. The check was re- ceived too bite in the dav to get the note from the C. H., but the check was charged to Mr. Miller's account, and bills discontinued cretlited with that amount (on Mch. 19.) In a. m. Mch. 20, bef«)re the bank was able to get the note from the C. H. for delivery to Mr. Mil- ler, the bank was taken charge of by Mr. W. P. Drew, Nat. Bk. Ex. Previous to Apl. 18 (when not* was due), Mr. Miller was notified by the C. H. to call and pay. Mr. Miller was very mueh distressed over the matter, not having the funds at his command to pay the note a second time. In charging the check .$475 75 to his account on Mch. 19, the account was overdrawn to the amount $70.85. Mr. Drew, upon Mr. Miller paying $70.85 in cash, the amount of the overdraft, took $475.75 from the cash on hand and paid the clearing house and the note was surrendered to Mr. Miller. (The check of 3, 19, distinctly stated that it was to pay note due 4, 18) yi"i:"\ ;"*,' $^75^ 75 Not<} of Richard Aliller (no connection, as far as known, with the above) for $1,000, due Apl. 28, was held by the C. H. as collateral; note not being paid when due was protested; Mr. R. Miller has a balance of $2,241.43 to his cr. on individual letlger. The C. H. notified Mr. R. Miller on that the note must be paid at once. Mr, Miller's check for $1,000 was ac- cepted by Mr. Drew and $1,000 taken from cash on hand and paid to C. H., the not* being surrendered to Mr. R. Miller 1. ^^- 00 Judgment for $6,500 was obtained against Laura R. Colwell and Charles R. Colwell prior to the appointment of Receiver Yardlev. They confessed judgment for the sum named, which was .$209.40 more than their indebtedness to the bank on two notes of $3,000 each. The dif- ference was paid out of funds in hand by Mr. Drew, who was then in charge 209. 4(t 1,685.51 t l-'l f 4 I: i 378 INVESTIGATION OF NATIONAL BANKS. ScnEDULE V,-Quariermdinf, June SO 1891. Legal expense, paid by the receiver of the Keystone National Bank, of rhUadelphia, Pa. June 11. To.^«jJ^]JjS;^c^^^^^^ court, filing bill in «,quity, Yanlley, receiver, vs. Magiil, a8- 12. ptr.S.inarWl, Ws'lorVervit'cHofw^^^^^^ ^r^ w^ffid^^h^^R" • PnCTr °^J^i"^^ and entering judgu.ent vs'." Laura ilVCoV- 111. 25 Schedule 'R.^Quarter ^diny June 30,1891. All othr expenses paid by the reeeirer of the Keystone National Hank, of J'hiladrpliia, Pa. -Kf o, T 1- ^J^ ^^ all claims against said bank to date- Mar. 31. John Hayes, caahier ♦on-» ni Hjirry C. Jones, general b<.okkeei)er-...^*.'ii!i! 7?J!X!I John G. Divine, discount derk •.... i,f*XX Samuel l.Hayes,receiving teller.. .::::::::::: Jf„^ SS A. J. Gorden,ind.ledgor bookkeeper \Z:i^ S^^°?:^.'?'^®?*^?''"''-^*^'Kt*i'>ookkeeper 'S'^"^^^. {So no Cha«.R. Edge, ind. ledger bookkeeper ^11 Wm.H.Merker, clerk . V^.^ John J. Ahem, ni^ht watchman. ..".!.*."'!.*.'.'! f-^ Jas. L. Doman, night watchman ^"- ' , J. M. Baudot, runner ou. ou Walter Daniels, messengt-r * ! ;??• ^ M.J. Braden, runner r. '" Mr8.H.Tobias,h«iy attendant.. .:;:::::::::: ;i'!!!! John Gouldy, jr., outside walebmau ::: -i-'"" Ueo. North, ass, receiving teller J:^. * , „ H.L.Carncio8s, ass. pay teller ?•';;; Apl. 3. L. Bums, tvpe writer. ...... '»"•<'<» 30. H.O.Jone.s", general b<.okkeepe'r J""" John G. Divine, discount clerk I"".''^' Apl. 30. Chafl.K.Ege, bookkeeper, serviieVtV. date -'"^^ Wm.P.Merker,clcrk,se;vicestodate ^'^k'Z John J. Ahem, night watchman, services to date '. ?m /»! TtTo , Jf- 1'- I^ornan, night watchman, services to date ■.■.*.".■.■.■.;;■. ^- L", May 4. Miss Bums, typewriter, 8ervi<-cs to A pril :{(. .^' !c! A o?- i°'? il^"i^^' J''-' o«*«"^e watci.man, Hcrvices toM ay i ! ! . ". r * 2 Apr. 25. M.J. Braden, runner, in full of all claims to date... _.: "J May 15. Miss Hums, typewriter, in full of all claims U^ M;. v ii ' ; ; j^'- JJJ ... 2, 000. 00 ... 2,000.00 Apr. 8. C. J. Stoddard, expenses from WaVhh^itonimdiMimp^^^^^^^^^^ iJ^^lUJ '^cte.r?^''^ represents the amount paid by W.P. Drew, iiat bank examiner in May 21. Carriage hire, removing 8ilv;;"and other coin from bank bniidv ^' ''^^?' I"} oo vlr''^®^^"; *^<*™ ^**"'P^ '■•^"^■^* "*■ tl«e Currency * '\f. 22. Win. F. Murphy's S«)xes and pai)ers at bank buildin.'r ofS 4* F;«^V^7?i;"*^' t ^^•' */'^^\J«.«o"P. and brushes for use receiver's office i!:::::: ?'?S 4. Frank Darragh. service.«» in moving bank property t lux 5. :Farrell & Co. , tirepnn.f safe for use recei ver s otiice ...::;:: : 3 ^ Kobt. M \ardley, receiver, expf^nses to Wash'n, D. C .■.'";'. q?X 8. Annie (.ollins, services as room cleaner at bank to June 2d, '«»! (JO da ) k vx Sarali L.K,k hart, services as room cleaner at bank to J iine 2d, 01 ( lo da' ) « •« 6. Uias.Lynch,janitor atbanktoJune2d,'9) (lOda.) ' «« »m John CBiirr, engineer at bank to June 2d. '91 (10 da.)...'.'. ?Li HarrvI.aiT.ehvatorboy at bank to June 2d. '91 (10 da.) « !!l^ rn'"' V/ \V""''^ *"''■'"''•'■ •'">' a< '^a""^ <«> June 2d, !)! (1() da.) « ^^o Chas. Jihge, bookkeeper, one mouth at bank to June Isi. ISoY .":::.": loooo & Hairy C.Jones, bookkeeper, one month at bank to June 1st, 1891.... \^1^ INVESTIGATION OF N.\TIONAL BANKS. 379 SCHEPIILE R. — Quarter ending June SO, 1891, etc. — Coutiimed. June 8. Wm. S. Merker, clerk, one mouth at bank t-o June ] st, 1 891 $$45. 00 10. John G. Divine, discount clerk, at bank to June 1st, 1891 125.00 11. Wm.C. Ryan, sundry items 2:{. 14 12. Geo. Spencer Co., oflice desk for receiver 35. 00 P. & r. Devlin, boxes for packing papers for removal 4.60 6. John Gouldy, jr., outside watchman for May 5.00 Richard AVells, services as laborer at bank and receiver's office 15. 00 16. Saml. McMidiael, services in removing bank property 5. 00 22. F. Cornish, rubber stamps for use at receiver's otiice 4. 75 June 23. Wm.Maun Co , paper fastenings for use receivers olKce .J^5 Levick rubber bands "^-^^^ 30. John G. Divine, clerk, services for June 125. 00 Chas.R. Ege, clerk services for J une 100. 00 Robt. M. xardley, receiver, expenses to Waslrn, June 2«(li and I'Tth 9.75 Robt. M. Yardley, receiver, carriage hire Ma^ 29th, custodian's rcsideiue 1. 50 Wm.C. Ryan, sundry items paid 9.11 Miss Burns, stenographer and typewriter, services from May 15 to June 30 51. 73 John Yardley, accountant, services 2••■•••>•••«••■■•••*■•■•••> Due Osborne & Co., check r't'u'd, Chi- cago Due Osborne &, Co., cheek r't'n'd, Wil- mington Do!l!!!l!!!!!*!!"!*!""!""i"!! Due Osborne & Co., check r't'n'd, Chi cago Do Due Osborne & Co., check r't'n'd, Cam- den J.M. Walsh & Co., check r't'nd. Rich- Do Do J. M. Walsh &- Co., che«"k r't'n'd, Chicago Do K. L. McMenany, check r't'n'd, Camden. S. F. Wliitman & Son, check ret'n'd, Pittsburg Healy dcLeyefer, check ret'n'd, Media.. McLear & Kendal, check ret'n'd, W. W. Kiddle, check ret'n'd, Camden Xace Sl Smantley, check ret'n'd, Cam- den Do Nat'l B'k of Commerce. Boston, d'ft re- t'n'd 2,002.02 J. J. Py le, d'ft returned, Boston 403. 10 $15. 00 15.00 600. 88 886. 28 518. 58 163. 10 11. 50 28.50 43.58 62.27 66.29 15.90 57.65 19.58 25.40 18.32 7.80 34.44 27. 58 201. 12 47.35 52. 25 500.00 402.15 51.36 n.36 55.47 500.00 240. 00 22] . 40 11.35 10.44 240.00 4,000.00 32.06 20.00 169.50 L89 Crane, Paris & Co.. Wa.shg'l., d'ft ret'n'd, N. Y : $501.29 Wanamaker «fe Brown, d'f. ret'n'd, N. Y. 4, 959. 64 J. Campbell, ch'k ret'n'd. Real Estate Trust Central Trust, ch'k ret'n'd. Central Trust Do Robt. Steal, ch'k ret'n'd, Dres. & Co. ... J. R. Clausen Son, ch'k ret'n'd, De HaA'en & Towsend R. Young, ch'k ret'n'd, Guarantee Co. . . CityTreasurer, ch'k ret'n'd, 2 Xat'l B'k. G. W. Clothier, ch'k ret'n'd, German- town John Young, ch'k ret'n'd. Aad. M. Cles. Alpha S. De Lissa, note No. 291 W. S. Emerson, note No. 294 Jno. O. Bowman, note No. 302 1, 300. 00 F.A.Davis, note No. 304 2,000.00 Visento Portuondo, No. 310 1,418.03 F.A.Davis, note No. 327 300.00 Ferd.W.Nafer,noteNo.331 200.00 J.J.McGin,noteNo.332 200.00 W. S. Emerson, treas. Herder Cutlery Co., note No. 333 40. 67 Sallie M. Baker, note No. 83 1 1 . 32 E. C. Riclimond Co.,limited, note No. 275 2, 44.''>. 78 Pro. check, J. J. Douglas, W. H. Smith . . Check, E. M. Cooper Pro. check, D. Y. Nichols, Wm. Cal- houn Pro, check, J. Re^Tiolds, jr., J. Kemble . . Check, J. A. Keely & Co Check, W.J. Baker Check, Jacob Myers Memo., city treasurer, J. W. Catharine, jr 2,319.18 Do * V! m 5. 611 ■ '■ ' 1 50.00 l^fl 75.00 i |« 156.00 I v|| 179. 87 1 >|| 43.08 H 239. 12 * 11 * ii ^i M 319. 18 K^ 11 285.00 Z F u' w , I r '^, 380 INVESTIGATION OF NATIONAL BANKS. Schedule V.— Quarter ending June SOtli, 1S9I, e/r.— Contiuued. City treasurer, J. W. Catharine, jr $600. 00 Do 35. 11 I>o 2,200.00 Do 75.07 J. D. Laws & Son, Drexel & Co., offset on deposit made 3, 20 92. 50 F. A. Davis, note Xo. 183 1,000.00 J. F. Portuondo, not« No. 190 5. 000. 00 H. Van Beil & Co. note No. 2:{0 500. 00 F. A. Davis, treas., note No. 190 $1, J. F.Portuond(», int. andfee.s, note No.l90 Paine, Diehl Sc Co Arthur J. Smith W.E.Hnich "*" H.W.Oray .'.." Lancaster Balance 300.00 6.21 28.00 3L'4. 72 125. 00 6.37.10 421.81 40. 805. 64 SCHEDULK W.— Quarter ending June SO, 1891. Claims eatablishcd not on the bookn of the Keystone National Hank, of I'liilada., Pa. $(H). 00 1891. Jane 8. Louis Dreka 8. Henrv F. Kelly .......; *7i'"u 8. The \Vni. F. Murphy's Sons ."." ' i„7io 8. The Harrison Safety Boiler Co 7 50 258.24 Exhibit 18. Report of the condition of the Keystone Natimial Bank of Phila., Pa., in the hands of receiver, for ihe quarter ending September 30th, 1891. ASSETS. Total. Good. Doubtful. Worthless. Assets at date of suspension, viz : Bills receivable (schedule wit h first n'])ort) . Other assets (schedule with first report)... Excess of bonds over circulation ' $811,602.51 909. 848. 90 5,000.00 $294. 380. 45 276, 225. 57 5,000.00 $372, G.') 1.29 624,341.19 $144,030.' 7 9, 282. 14 Total as.sets at date of susjM'nsion Additional as.set.s coming into poH.>t roller from premium, Interest, etc. (S«hedule M) 1 Total 2, 286, 253. 88 ^*>l Ai\n QfJ \ 1 tLl\n OiO t/h OJ4, 4U/. 0/ 1, UU«, O-tO. l\3 153,912.91 INVESTIGATION OF NATIONAL BANKS. 381 Report of the conditum of the Keystone National Bank of Phila., Pa., etc. — Continued. ASSETS— Continued, ? coujEcmoire. Amount collected by receiver: From good assets $161,140.07 From doubtfvd assets 65, 366. 16 From worthless assets 1, 100. 00 From suspense ac 4, 517. 88 From assessment of 100 i)er cent on stockholders, $53,347.96 (Schedule N). See E. Difference between cash and col- lections 15. 44 Amount collected by Comp- troller 2,812.50 Total collections 234,952.15 DisposrrioN of nr8e)i»*»its. Amount. From bills receivable, as shown by Schedule C $18, 792. 75 4,210.60 58,300.78 400.00 Loans paid and other disbursements, as shown by Schedule $558. 01 From other assets, as shown by Sched- ule D Legal expenses paid, as shown by Schedule P 505.71 From other assets, as shown by Sched- ule E Iteceiver's salary paid to date All other expenses, as shown by Schedule R Remittiauces to Comptroller Total disbursements during the ouarter 900.00 1 rom premiun. interest, etc., as shown by Schedule F 2, 113. 61 82, 980. 33 From shareholders, as shown by Schedule N (included in Sched. E.) Total receipts during the quar- ter ... 81. 704. 23 5,993.54 87, 057. 66 Balance on hand at date of last report. Balance m hands of receiver 640. 11 Total accounted for. ........... Total to be accounted for ....... 87,697.77 87, 697. 77 r m \ 382 INVESTIGATION OF NATIONAL BANKS. Schedule A. — Quarter ending September 30, 1891. Additional assets coming into pos- session of the receiver since suspension of the Keystone National Bank of Philadel- phia, Fa. Description of assets. Amount at date of last report Check Jas. A. Keating, 3, 21. '90, Wilkesbarro. l^atioual State Bank, Camden Ft. Dearborn National Bank, Cliicago $47, 694. 95 139. 30 13.98 47,848.23 Donbtfol. $10, 810. 62 40.00 10, 850. 62 Schedule B. — Quarter ending September SOth, 1801. rremium, interest, rent, etc., received by the receiver of the Keystone National Bank, of Philadelphia, Pa., since suspensioti. Date. 1891. July 3 3 7 7 7 15 15 15 18 20 20 22 24 Aug. 13 13 Sept. 10 July 3 3 7 7 7 8 10 14 15 16 15 15 16 18 24 Aug. 12 13 13 20 Sept. 1 10 23 Aug. 12 12 12 12 12 12 12 13 14 14 14 14 25 13 13 Sep. 10 2 2 2 2 1 From what source collected. Amount at date of last report Protest fees on No. 07, K. S. Cowan, due 4, 29 32, H. Filling & Son.s. due 1,2 68, J. H. Reigel, duo ;{, liO 7ff, W. N. Stuart, due :$, UO 103, B. H. Davis, due 5, 5 Ill, C. Reamist, due 5, 14 72, Mich'l. Mea . W 9.43 14.00 83. 00 23. 46 338. 58 31.50 231.60 ■M 34, 157. 15 2^1. 60 Schedule H. — Quarter ending September SO, 1891. Loss on '^other assets" by the receiver of the Keystone National Bank of Philadelphia, Pa. Date. Description of assets. Good. Doubtful. Worthless, 1891. Amount at date of last renort. ......................... $582.42 $190. 31 $116. 03 Schedule J. — Quarter ending September 30, 1891. Bills receivable in the hands of the receiver of the Keystone National Bank of Philadelphia, Pa. No. 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 Maker. In attorney's hands for collection : E.E. Serry Geo. W.Wright Thos. Denham & Son do do do CluMU Zane Wm. M. Stuai-t Aman & Bro . . E. R. Bryau ... Geo. W, Smith Milton C. Greiuer Keystone Watch Club Co do do do Lewis Cassidy 3927 25 Maturity. 1889. July 18 Nov. 24 1887. Jany. 21 May 15 June 30 May 29 1888. Nov. 16 1890. Dec. 28 1891. Janv. 16 1890. Oct. 2 1891. Jany. 17 Feb". 2 1890. Mar. 29 A)d Good. Doubtful. Wortlih'ss. $287. 50 5, 000. 00 1. 15;>. (H) :v.Kt. (K) am. 00 660.00 2. 400. 00 July May 14 27 28 21 .$238. 20 368. 12 800. 0(» ltd. Oi) 404. GO 80.00 10(1.00 150. (H) 3, 500. 00 144.73 i I 386 INVESTIGATION OF NATIONAL BANKS Schedule J. — Quarter ending September 30, 1891, etc. — Continued. Ko. 136 138 139 140 141 144 146 147 148 149 150 151 152 153 154 155 156 157 269 113 208 6 6 8 9 10 11 12 13 22 23 26 27 29 28 36 41 55 62 64 66 67 70 71 77 84 86 87 93 94 96 98 99 102 104 105 109 112 115 lie 261 260 175 193 196 210 212 214 207 158 163 167 171 173 Maker. Jno. B. Macafee. Jas. W. Sayre. . . F. M. Frieburg . C. F. Turner . B. Frank Cooling. S.Robinson Wra. M. Griffiths C.G.Welch ^y. R. Fenner Geo. Rossiter Thomas Brown.. do Maturity. .do .do .do do .do ! .do Juno 1890. Apl. 18 June 11 Nov. d 1888. Deo. 12 1891. Feby. 27 " 14 1890. Deo. 14 Nov. 26 27 31 18 9 21 8 16 21 31 21 Oct. Mar. Apl. Afay James M. Battersby Auio8 O. Chase Gaud McTvain IVmaiid 1801. May 2 June 13 1890. Van Dyke & Co i Aj»l. 18 Jas. Kennedy , May 5 Jas. Mcuormick i 30 C. C. Lippiucott j 30 W. Scarboroujili I 31 H.F. Atkinson &. Co | June 4 H.B.Driver ! Aug. 10 G.Byron Morse 16 John J.Corberry Dec. 3 Jas. N. Elliott 5 Alfred Ilindle 24 Roliert ('aruH 25 do 28 James Morgan 28 1891. Jan'y 7 27 Feb'> 21 Mar. 11 14 19 20 21 23 :tl 10 IH 17 22 22 25 29 30 3 7 8 11 15 18 18 19 18 29 8 9 13 15 16 12 2U 23 23 27 28 J ameH Morgan . . . . Robert Cams Thos. W. Dukson. Thos. E. Warmuu . Robert Cams do Lewis W. Wiley... RobtM. Wiley ■• Wilson E. Allen... Hugh (rrahani Altred D. Cams ... Wm. B. CJreet Chas. S. Salin Charles White .... Sam'l M.Mink.... G. W. M. Jiigor... M.McNulty RobtM. Wiley.... A.M. Zane James B. Carey . . . Jacob Y. Dietriik , Dean C. G.sbocne .. W.W. Watson ... Geo. Howard et al J.S.-Whitty C. A. Meloney AV. S. •litek.so'n Henry U. Yard... <"lo do Mrs. E. Wanuuu . . do do W. Y.AVarner.... Robt.M.Wilev... Geo. W. H. Smith . M.B. Dwight James Birnie 0. C. Bosby shell .., Apr. May June May Good. Doubtful. Worthless. $500. 00 144.50 150.00 2.'>0. (M 150.00 47.87 400.00 102. 72 100.00 72.66 . 1,000.00 !. 90 !. 133.00 101. 62 175. 00 152. 21 183.45 $150. 00 312. 72 419.50 150.00 102. 20 452. 11 1. 000. 00 .506. 00 151. 50 2.'iO. 00 121.15 250. (iO 250. 00 2.'>0. 00 2.T0. 00 2.^0. 00 250. (iO 25; ». 00 4. :too. uo I 400. 00 183.75 645. 00 675. 00 680.00 694. 20 1, 000. 00 598.50 1,000.00 1, 0(M). 00 1,000.00 900. 0-.> 500.00 1 . OOil. 00 1, 000. 00 1,200.00 . 2(K).00 '. 150. IK) . 100.00 232. 00 I n.'i.oo 7.'». 00 1,000.00 500.00 1,000.00 2,000.00 1,200.00 $360.00 590. 00 1,863.00 »«.'.. 00 32, 4:tK. 72 5. :!(Mt. (M) fi; (XKt. 00 1,.'»70.(H» 1.2.'>0. 0<» 1,915.(H» . INVESTIGATION OF NATIONAL BANKS. Schedule J. — Quarter ending September SO, 1891, etc. — Continued. 387 No. 177 178 181 186 188 194 211 224 225 236 237 241 244 245 247 235 254 25 75 85 110 42 45 49 53 74 95 101 106 159 162 180 199 227 228 246 251 253 201 Maker. £. J. Lea W. L. Lance Anton Aman Greo. F. Lowry E.T. Townseud,M.D. Christian Mack Isaac Brown Heiu-y Redman J. L. Crammer W.M. Hirst A. G. Clemmer N. Moritz Wayne Stone Co Excelsior Hosiery Co Henry H. Yard Mary Myers Excelsior Hosiery Co John M. Driver . John F. Zebley John J. Pyle Wm. D. Troupe Cha.s. McGladc ......do do do Wm. J. Simmons do do do do T.W.Manship Wm. J. Simmons do Mary H.McGhide Constantine Carpenter . J. L. Cramer Wm. J. Jackson , D. M. Stackhouse Wm.M. Griffiths Maturity June 1891. May 29 29 29 6 6 8 15 23 25 7 8 10 13 14 17 6 21 1890. Dec. 24 1891. Mar. 27 Apr. May Jan. Feb. Good. July July Mar. Apl. May June July June 16 12 28 5 12 19 25 23 3 9 20 23 30 9 27 30 17 18 20 10 $144. 142. 125. 315. 75. 100. 35. 90. 10 15 00 00 00 00 90 00 Doubtful. Worthless. 1^.1 155. 100. 1,000. 00 00 00 $1, 000. 00 1, 025. 00 306. 1,490. 25 00 500.00 1,000.00 75.00 2, 500. 00 2, 500. 00 2, 500. 00 2, 500. 00 200.00 2,000.00 1, 000. 00 1, 000. 00 135.00 195.00 195. < 65.00 175.00 330. 00 540.00 864.00 500. 0!0 3. 109. ■ 1( 390 INVESTIGATION OF NATIONAL BANKS. Schedule K. — Quarter eii4ing September 30, 1891 — Continued. INVESTIGATION OP NATIONAL BANKS. Schedule K. — Quarter ending September SO, 1891, etc. — Continued. 391 Description of assets. Overdrafts: W.F.Shaw Jesse W. Starees, Jr., petty. F.H.Sanford, petty Jas. W. Sayers, petty J. H. Shaw, mgr., petty Santa Clara Wine Co., petty. D. B. Saxton, petty. J. Statman, agt., petty Geo. W. Shederick, petty . . . . , Geo. "W, Stewart, treas., petty . David Stewart, petty , John Simpson, petty , H. Oscar Smith, petty Stiles & Fox, petty J. R. Shirley, petty Wm. Snowaen, petty Mrs. C. K. Shoeinaker , H. C. Schomaeker , C.M.Southwell J. W. Sclmldt, petty Jacob Stultz, pt't ty N. W. Talbot, iM't 1 V Mrs. A. W. Trenholra I. J. &, C. Foddiugtun, petty. Anna K. ThoinpHon, petty.". . Jos6 Irraga, petty C. A. Thompson, petty E. W. Tliome J, M. Van«lever, i>etty Joh6 Vivo '. Yineland Good. 10.10 .08 5.24 C. D. Watts, petty John A. Wallace, petty M. B. Wannaraaker John Wannamaker, pers W.Walker R.H.Walker J. R. Wear & Co., petty Wm. Wehh, petty Charles West, petty J( >se]>h A. Wilson I. H. Whiting C. A. Wood, trustee Due by hanks : Bank of Batavia, Batavia, N. T First National Bank, Media, Pa Merchants & M'fg Nat. Bank, Pittsburg Farmers Nat. Bk., West Chester, Pa Cash items : 2,11, '91. Pro. ck. L. Dalmas, Chester 3, 13, '91. Ck. Jno. Haves, balance 9, 13, '90. Ck. Real Est. Trust, S. M. Broadbent, bal 2, 13, '90. Pro. ck. J. H. Longstreet 6, 27, '90. Ck, John W.Barren 9. 16, '90. Pro. ck. L. Groft 11. Mifflin Wheeler, 15 shares 750. 00 12. Mary Ani7 Davis, 32 shares, balance of 1,000.(K> 12. Creorge Brown, 20 shares 1 , 000. 00 12. R. M. Holbrook, 12 shares 600. 00 12. Susan Y. Hibbard, 36 shares, on account 900. «K) 12. Samuel Lucas, 20 shares 1,000.(K) 12. Jno. P. Logan, 25 shares, on account 625. 00 12. Jno. A. S. Brown, 15 shares 7.50. (M) 12. DeWitt Bodine. 20 shares r 1, 000. 00 n ^1 3&2 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 393 ; y Schedule l^.—Qv^rter ending September SO, 1891, e0.00 13. Robert Arthur, 10 shares 500.00 13. W. A.Bonder. 12 shares 600.00 13. B.Goble, 20 shares, on account 600.00 14. Marjr Ann Goforth, 1 share 50.00 14. Daniel Buck, 20 shares 1,000.00 14. Joseph S. Perot, 6 shares : .,,. ;«oo. 00 14. Wm.J.Barr, 5 shares 250.00 14. Thomas Massey, 20 shares 1,000.00 25. Geo. R. Meloney, 3 shares, on account 72.96 Sept. 2. C. C. Newton, 10 shares 500.00 11. Susan Y.Hibbard, 36 shares, balance 900.00 16. Mrs. Jennie Chambers (certificate M. J. Chambers) 10 shares 500. 00 22. MaryStang, edr. est. Peter Stan g, deceased, 50 shares 2,500.00 53. 347. 96 Schedule O.^Quarter ending September SO, 1891. Loans paid and other dinhursemevta by the receiver of the Keystone National Bank of Philadelphia, Pa. 1891. Amount, as per last report $1,085.15 July 1. Juan T. Portuondo, collections mnde since su.spciision ;{.')<». 50 3. Leon Tsaacs &. Co., collections made since suspensicm 174. 80 21. Real Estate Trust Co., protestetl item retturned prot4'8t fees 2. 14 Aug. 13. A. L. Humraal, overdraft paid in error returned 4. IW Sept. 1. Expense of assorting and redeeming notes prior to date of 8U8i)cu.sion 19. ()7 2, 243. 10 Schedule V.— Quarter ending Sep. SO, 1891. Legal expenses paid by the receiver of the Keystone National Bank of Philadelphia, Pa. 1891. Amount as per last report $111.25 July 16. Read & Pettit, coats advanced in 23 cases, actions of assumpsit 52. so 16. Wm. Wharton Smith, notary public, 21 attidavits 10. 50 16. "Wm. R. Leeds, U. S. marshaJ, service of 22 writs and statements, Nos. 36 to 57, in- clusive ft->. .50 22. Read & Pettit, cost and notarial fee advanced 7.90 29. Wm. Wharton Smith, notary public. 10 affidavits, Nos. 60 to 68, inclusive, and No. 32 5. 0) 29, Samuel Bell, clerk C, C, U, S., tees, No, 00 to 68, inclusive (assumpsit) 21,60 31. Samuel Bell, clerk C. C. U. S,, fees, Nos, 69 to KKt, inclusive (do) 76, 80 31. Wm,R.Leeds,U.S. marshal, fees, service writs and statements, Nos. 60 to 68. inclusive :il.r>0 31. Wm. R. Leeds. U. S. marshal, fees, wrvice writs and .statements, Nos. 69 to 100 incl . . 80. ' Aug. 18. Petty cash, j)er W. C. Ryan, notary's and marshal's fees, service writs and stateuu iits and 2 affidavits, $4.50 ; alias writ, service of, and statement, $5. 90 10. 40 18. Samuel Hell, clerk C.C. U. S.,6 ti. fas 14.40 18. Wm, A^'harton Smith, not.ary public, 25 affidavits 12. 5 ) 21 . Sam'l Bell, clerk C. C U. S., fees, Nos, 105 to 108 incl. (assumpsit) 9. 6 J 22. Wm, R, Leeds, IT. S, marshal, service writs and statements (Nos. 105-108 incl.) 14. 00 22. William Wharton Smith, notary public, fees 4 affidavits 2. 00 Sep. 8. Read & Pettit, i clerk's costs m re petitions to conipound deltts of Crump & Faulk- ner & Allen 6. 40 8. Joshua Pusey, esq., J examiner's fees in above petitions 40, oo 8. Read & Pettit, costs atljaner Wm. C, Ryan : Telegram from Com]»troller. $1,01 : i>ostaffediie]»aid. .02; BoUes banks and d'ejMisitors, $4.50; sui)pers for three, .^2.3.5, (fon e worked late at night, after hours, no charjje for extra work) ; postage staiii))s, $3 10. 88 22. Petty cash, per W, C. llyau : May Foster, washing towels to date, .$2.40 ; W. ( '. Ryan, expenses to Washington. $9.20; j>08tage, $26; telegram to re<'eiver, .25; messen- ger, .10; telegram to receiver, .27 38.22 31. Charles R. Ege, bookkeeper, salary for July loo, 00 31. John G, Divine, cashier, salary for July 125, 00 31. Lillie Bums, stenogrujiher, salary for July 32. 00 31. Wm. C. Ryan, assistant, salary for July 125.00 31. Petty cash, per Wm, C. Ryan : Postage, $2.00; copying book, $1.00 3.00 Aug. 4. Wm. S. Watson, printing assessment notices 15. 25 4. Wm. T. Murphy 8 Sons, blank book for receiver 52. 75 7. Protest fees paid , 2,96 1891. Aug. 7. 12. 12. 12. 12. 18. 29. 26. 31. 31. 31. 31. 31. Sept. 8. 8. 15. 15. 15. 29. 29. 30. 30. 30. 30. Schedule R. — Quarter ending Sept. SO, 1891, etc. — Continued. Burke r, washing towels, $3 10, 04 Jacob Myers, erecting railing, counters, shelves, etc., in room 21, 3rd floor P. 0. build- ing anil removing and reeretting same in room 29 332, .'J8 Wm. S. Watson, printing notices, circular to depositors to prove claims 4. 50 Petty cash, per Wm, C.Ryan : Chas, R. Ege, salary from 1st to 5th, $16,67,' ribbon stamp, 1.50; janitor's services, with one man, moving from room 21 to 29, $15; post- age, $1 34,17 John G. Divine, cashier, salary for Sept«ml)er 12.5,00 Lillie Bumes, stenographer, salary for Sei)teml)er 32. 00 Wm. C. Ryan, assistant, salary for September 125. 00 10,171,89 Schedule S. — Quarter ending Sept. SO, 1891. Claims in dispute against the Keystone National Bank, of Philadelphia, Pa. Amount as per last report $926,748,18 Schedule U. — Quarter ending Sept. 30, 1891. Liabilities canceled bji offset and other- wise by the receiver of the Keystone National Bank of Philadelphia, Pa. Amount at date of last report $40. 865. 61 Harry Filley& Son, note No. 32 431.81 J.H.Reisel,noteNo.l8 100.00 Wm. M.Stuart, note No. 76 140.00 B, H. Davis, note No. 103 : 70. oO A. Y. Kellogg, note No. 219 311.40 Marie Brwcasky, note No. 82 2tK). 00 Wm. R. Murphy, note No. 170 2.>0. 00 Jno. Craig &.So*n, note No. 172 200.00 McBrideBros.. note No. 249 2,051.21 Fees. AV\R.Murphy, note No. 170 2.05 Fees. Jno, Craig & Son, note No. 172 2, 05 J, F. Portuondo, collections 356. 50 Leon Isaacs & Co., collections 174. SO City treasurer, Drexel & Co 262. 50 City treasurer, J. Bardsley, treas 178. GG Do 10,000.00 C. E. Roney, treaa., J. Bardsley, treas 9. 4:5 Jno. F, Hillman, J, Bardsley, treas 14. 00 Cath. Madden, J. Bardsley, treas 83. 00 H.W.Gray, lYeas., J. Bardsley, treas 23.46 Wm. Godfrey, city treas 3;{8. 58 Jas-Lilley 31.50 56, 096. 59 Schedule W. — Quarter ending Sept. 30, 1891. Claims established not on the books of the Keystone National Bank of Philadelphia, Pa. Amount at date of last report $258.24 I 1 1 394 INVESTIGATION OP NATIONAL BANKS. Exhibit 19. Report of (he condition of the Keystone National Bank, Philadelplda, in the hands of receiver, for the quarter ending Dec. 31, 1S91. ASSETS. TotAl. Gooil. Doubtful. Worthless. Assets at date of suHpension, viz : Bills receivable (schedule with first report) . Other assets (schedule with first report) . . . Bxcess of bonds over circulation $811,662.51 909, 848. 90 5, 000. 00 $294, ;J80. 4;') 276, 22a. 57 5, 000. 00 $372,651.29 624,341.19 $144, m). 77 9, 282. 14 i Total assets at date of susjiension — Additional assets corning into possession of receiver since suspension (schedule A) . Premium, interest, rent, etc., received since Busneusion (schedule B) 1,726,511.41 616,465.87 2, 725. 26 575, 606. 02 48, 830. 31 2, 725. 26 996, 992. 48 567, 635. 56 153,912.91 Total assets at this date 2,345,702.54 627,161.59 1.;j64.«2X.04 153.5M2.91 DEPOSITION OF ASSETS. Amount collected by receiver to date: From bills receiA'able (s<'liedule C) 68, 116. 12 77, 829. 19 112, 384. 32 1, 336. 52 54, 508. 43 74, 022. 09 38, 701. 36 1,336.52 12, 507. 69 3. 207. 10 73, 622. 96 l.KM). 00 From other assets on hantl at date of sus- itenRiou /H<'lie«lule D) .. ... From other assets acquired since suspen- sion (schedule E) ..••••••.••• From premium, interest, rents, etc, (sched- ule F) Total amount collected by receiver . . Offsets allowed and settled on uills receiv- able (schedule G) 259, 666. 15 20,063.42 34, 388. 75 4, 300. 00 888.76 719, 182. 97 809, 393. 80 694, 190. 26 3, 628. 43 169, 228. 40 20, 063. 42 34, 157. 15 89, 337. 75 1,1(H>.00 On other assets (schedule G) 231.60 4, 300. 00 190.31 355. 843. 60 * Losses on promissory notes and other assets compounded or sold by order of court : On bills receivable (schedule H) On other assets (schedule H) 582.42 219, 808. 60 179, 515. 51 177.66 3, 628. 43 116.03 Assets on hand at date of this report: Bills receivable (schedule J) lis .'•:«(! 77 Other assets at date of suspension (schedule X) i 62i) 712. 18 1 fl ifu; 11 Other asset* acquired since since sus- pension (schedule L) 494. 012. 60 Amount collected by Comptroller from premium, interest, etc. (schedule M) Total 2, 345, 702. 54 627, 161.50 1 -'WU r.oft (U i l.Vl «19 Q1 ' COLLECTIONS. Amount collected by receiver: From good assets $169,228.40 From doubtful assets 89, 337. 75 From worthless assets 1 , 100. 00 Suspense account 4, 517. 88 From assessment of 100 per cent on sto9 Claims in dispute (schedule S) 926. 748. 18 Liabilities not proved, as shown by the books (schedule T) .... 1, 187. 867. 82 Liabilities canceled by oftset and otherwise (schedule U) 56. 510. 59 Total as per contra 2, C94. 215. 18 Claims proved as above 253, 088. TtQ Claims established, not on the books (schedule W) 2, 349. 35 Total claims proved 525. 437. 94 RoBEirr M. Yakdi.ky, Heceiver. Statement of receipts and disbursements hy the receiver of the Keyfttone Naihnial Bank of Philadelphia, Pa., dvnng the quarter ending Dec. SI, 1S91. Keceipts. Amount. Disbursements. Amount. From bills receivable, as shown by schexlule C. From other assets, as shown by sched- ule D. From other assets, as shown by sched- ule E. F)-oni premium, interest, etc., as shown by schedule F. From shareholders, as shown by sched- ule N, included in E. $1, 677. 95 8, 259. 18 21, 257. 08 865.71 Loans paid, and other disbursements, as shown by schedule (). Legal expenses i>aid, as shown by schedule P. TJwieivpr!* salarv uaid to date. ....... .$414. 00 1,260.61 900.00 2. 946. 42 26. 000. 0(1 All other expenses, as shown by schedule R. Remittances to Comptroller Total disbursements, during the quarter. Balance in hands of receiver Total accounted for 31,521.03 Total receipts during the quarter Balance on hand at date of last report 32,059.92 640.11 1.179.00 Total to be accounted for 32, 700. 03 32. 700. 03 Schedule A. — Quarter ending Dec. 31, 1891. Additional assets coming into possession of the receiver, since suspension, of the Keystone National Bank of Philadelphia, Pa. Date. 1891. Oct. 16 31 Dec. 30 Description of assets. Amount at date of last report... Good. .. $47,848.23 Received by mail from "(Conscience," .said to be amount overdrawn ; for two years, $100 and interest, $12 j 112 Chas. R. and Laura R. Colwell, balance of judgment 510. 08 W.F. Murphy's sons, dividend on stock paid in error, refunded ...| 3(50 Spring Garden Nat. Bank, Philada., clearing house due bill, 2, 16, '88.' do do do do dft. on Chase Nat. Bank, N. Y. 2,16, '88 William Trenholm, overdraft Doubtful. $510,850.02 25,000 25. 000 6, 784. 94 48, 830, 31 5*^7, 635. 56 i I .+ -fj. < ■ W " ;ss» i t 396 INVESTIGATION OF NATIONAL BANKS. SCHKPULK H.—Qvarta- ending Dec. SI, 1891, premium, interest, rent, etc., received by the receiver of the Keystone National Bank of Philadelphia, Pa,, since suspension. Date. 1891. Oct. 20 24 Nov. 20 Dec. - 1 1 1 5 5 9 10 10 12 12 12 12 12 12 12 12 12 12 12 12 5 5 9 10 12 12 12 12 12 12 12 12 12 12 12 12 Deo. 18 18 18 18 18 18 18 18 18 18 18 18 22 22 80 80 ■rV From what source collected. Amount at date of last report Interest on stock a88e8sni«>ut : B. CJohle Jno. P. Logan * ... Interest on nuniUer 272, D. L. Dre.v demand loan ..*..!........! Interest on I^ S. bondw : $50,(K)0 to Sept.l. '91, held by Treasurer to secure circulation $50, 000 to Dec. 1, '91. held hy Treasurer to secure circulation at 2 per tent. Interest on depo.sit.s in Keal Estate Trust Co Interest on sto<'k assessment : W.R. Warner & Co Mrs, Sallie Wai-ncr !.!.!!! I !!..'.".!].'." ! Jacob Myers • V.'.'.V/ ".'.'. .V.'.'.'.'.'.V. .'.'..'. . Interest on other as.sets. H. .\skin, account ov^erdraft !.....!!!!..!!!!..!! Interest on stock asscHsmeut ; Rebecca A. Walker Daniel Weaver Jno. B.Welsh .".'.*.".".'.*.".*'.'.'.".".'.''.'.'.'.*.".'..'".'..'.".' .\ Jno. Robinson C. MeClune -".'.'.'.'.'.'."!*.".''.".*.'.'.'."'.'."."*.'.'.".'.'.'.".'; A.M.Moore w\?'f^^n-*' "li. !!;"-!!!!". :::::::::::::::::::; W.M.dilhan B.C.Burns .'..'.".'.'.'.'..".*.'..'.''."."*."."".'.'..".'".!.*.'.!! A.D.Dawaa Amount. $1, 043. 62 4.66 7.70 27.50 568.68 247. 25 37.66 95.00 5.70 47. 50 2. 25 ...I Emma Downs W.F.Gockler '."'. Henry A. Horneckle Costs on stock assessment: W.R. Warner & Co Mrs. Sallie Warner ' Jacob Myers Rebecca A. Walker !J!.!'!* Daniel Weaver John B.Welsh '..'.'.'.'. John Robinson \', C. McCune !!,!!!!! A. M. Moore B.S.Maekie W.M.Gillian B.C.Beems .',',,',, A, D. Downs EmmaDowns w.F.Gockier ! ".!!!!!!!!!!;! H. A. Homickle Fees on No. 22, John J. Carberry, ilue Dec. 3^ '90."."."! Interest on stock as.sessment. fi. W. Gans Cost on stock asses.sment, E. W. (ians Interest on stock as.sessnu'nt. Josluia R.Jones Costs on stock assessment, Joshua R.Jones Interest on stock ass«ssment, Harriet A. Kudiman. Costs on stock assessment, Harriet A. Rudimau ... Interest on stoE D. — Quarter ending Dec. 31, 1891, collections from "other assets,'^ on hand at dute of suspension, hy the receiver of the Keystone National Bank of Philadelphia, Pa. Date. 1891. Nov. 9 Dec. 4 10 30 30 Description of assets. Good. Amount at date of last report ' $69,334.50 J.W.Catharine, overdrafts \ 23.25 H.J. & G.R. Crump, overdrafts, on ac. of ; Harry Askin, overdrafts, onac j M. B. Wanamaker, overdrafts | 4, 929. 98 Jolrn Wanamaker, personal, overdrafts ! Doubtful. $235.51 2,921.59 50.00 334. 36 Worthless. 74, 622. 09 3,207.10 I. Schedule E. — Quarter ending Dec. 31, 1891, collections of "other assets,'' acquired since suspension, by receiver of the Keystone National Bank of Philadelphia, Pa. Date. Description of assets. Good. Doubtful. Worthless. 18Q1 A innnTif at, daie of 1a>it. Tftnort ... .. ... .... $37, 779. 28 112.00 510. 08 360.00 $53, :H7. 96 Oet, 1 6 " Conscience " overdratt 2 years $100 and interest$12. . Chas. II. and Laura R. Colwell balance of judgment W. F. Murphy Sons, dividends on stock refunded Stock assessments as per Schedule N fi»r quarter end- inj? 12 31 '91 31 Dap. iV) 1 30 20. 275. 00 38, 761. 36 73, 622. 96 Schedule F. — Quarter ending Dec. 31, 1891. Premium, interest, rent, etc., collected by the receiver of the Keystone National Bank of Philadelphia, Pa. Amount at date of last report $470.81 1891. Interest on stock assessment: Oct. 20. B.Goble 4.G6 24. Jno.P.Logan 7.70 Nov. 20. Interest on No. 272, D. L. Drew, demand loan 27. .""O Dec. 1. Interest on deposits in Real Estate Trust Co 37.66 Interest on stock assessment: 5. W.R. Warner & Co 95.(0 5. Mrs.Sallie Warner .' 5.70 9. Jacob Myers 47. 50 10. Interest on other assets, H. Askin, on ac. overdraft 2. 25 Interest on stock assessment : 10. Rebecca A. Walker 1.95 12. Daniel Weaver 12.02 11. Jno. B.Welch 9.50 12. J no. Robinson 9. 50 IS. C.McCune 4.88 VL A. M.Moore 29.00 12. B.S.Mackie » %\ 398 1891. D«c. 12. 12. 12. 12. 12. 12. 5. 5. 9. 10. 12. 12. 12. 12. 12. 12. 12. 12. 12. 12. 12. 12. 12. 18. 18. 18. 18. 18. 18. 18. 22. 22. 30. * INVESTIGATION OF NATIONAL BANKS. Schedule F. — Quarter ending Dec. SI, ISBly etc. — Continued. W.M.GlUian $2.00 B.C.Burns 10.00 A. D. Downs 19.00 Enimn Downs 4.75 W.F. (loekW 4.79 H. A.Homickie 5.00 Cost on stock asseHsnicnt : W. R. Warner & Co 8.40 Mrs. Sallie Warnor 6.40 Jacob Myers 6.40 Rebecca A.Walker 6.40 Daniel Weaver 6. 40 Jno. B.Welsh 11.90 Jno. Robinson 6.40 C.McCuue 6.40 A.M.Moore 6.40 B.S. Mackie 6.40 W.M.Gillian 6.40 B.C. Burns 6.40 A. D. Downs 6.40 Emma Downs 6.40 W. F.Goekler 6.40 H. A. Ihmiicke 6. 40 Protest fees on No. 22, John J . Carberry, due Dec. 3, 18»8U)cnt, E. M. (Jans 6. 40 Interest on stock ii.ssesswent, Joshua R. Jones 1J>. 00 Costs on stock assessuK'nt. J«>Mliua K. Jones 6. 40 Interest on stock iiHsi-Hsmrnt. IlaiTiet A . Hudimau 6. 20 Costs on stock assi'ssTucnt, Harriet A. Rudiman 6. 40 Interest on 8t4>ck assessmeut. John Green well 20.00 Costs on stock iiHsessmeut, John Greenwell 6.40 Interest on stock asseHsuicnt, Joseph Greyson 25.00 Costs on .stm-k assi-ssracnt, Joseph GreysOn 6.40 Interest on stock assessment, Geo. W. Shirley V2.W Costs on stock assessment, Geo. W. Shirley 6. 40 Interest on stock assesameut, E. O. D. Webb 33. *_'."» Costs on stock assessment, E. O. D. Webb 6. 40 Interest on overdrafts — M. B. Wanamaker 234.18 Jno. Wanamaker, personal 15.88 1, 336. 52 Schedule G. — Quarter ending Dec. .?!, 1891, offsets allowed and netthd by the receiver of the Keyntone National Bank of Philadelphia. Fa. To whoni allowed, and character of indebtedness. Good. : Doubtful. On bills receivable, as per last report On other assets, as per last rejwrt . ^20, 0(53.42 .! 34,157.15 ; $231. U) W^orthless. Schedule H. — Quarter ending Dec. SI, 1891, loss on jmrmissory notes and other assets compounded or sold by order of court, reported by the receiver of the Keystone Xational Bank of Philadelphia, Pa. Kame of debtor, and character of indebtedness. J. M. Battersby numl)er 269, balance of demand loans, Yardley, Receiver, vs. Battersby ; verdict for defendant On other assets, as per last leport Good. $582. 42 Doubtful. I "Worthless. $4, 300. 00 190.31 $116. 03 Schedule J. — Quarter ending Dec 31, 1891, bills receivable in the hands of the receiver of the Keystone National Bank of Philadelphia, Pa. Maker. Collected incase as per Schedule C. Offsets allowed as per Schedule G. . Losses as per Scheaule H On hand at this date Total at date of suspension. Good. Doubtfnl. 54, 508. 48 ; $12, 507. 6ii 20,063.42 , 4,300.00 355, 843. 60 219,808.60 294,360.45 372,65L29 "Worthless. $1,100 I4i,530.77 144,630.77 INVESTIGATION OF NATIONAL BANKS. 399 Schedule K.—Qiiarter ending Dec. SI, 1891. Assets, other than bills receivable, in the hands of the receiver of the Keystone National Bank of Philadelphia, Pa. Description of assets. Balance on hand as per last report . Less collections to date, schedule D Good. Doubtftd. Worthless. $148, 803. 10 5, 287. 59 $623,683.77 I $9,166.11 179, 515. 51 2, 971. 59 620, 712. 18 1 9, 166. 11 Schedule h.^Quarter ending Dec. SI, 1891. Other assets, acquired since suspension, in the hands of the receiver of the Keystone National Bank of Philadelphia, Pa. Description of assets. Fred C. Geepil, additional overdraft Overdrafts, connection of former statement Check, J. A. Kealing, 3, 21, '90, Wilkesbarre Nat. Bank of Commerce, Boston H arrisburg 1st Nat. Bank Media 1 st Nat. Bank Washington, Crane, Parris & Co Stock assessment uncollected Spring Garden Nat. Bank, Philada., clearing-house due bill, 2, 16, 'gg Spring Garden Nat." Bank, Piiiia., N. Y. dft. Chase N. Bk, 2, 10, '88 ■\V illiam Trenholm, overdraft Good. $1.00 Doubtful. Worthless. $10,810.62 40.00 426,377.04 25, 000. 00 25, (100. 00 6, 784. 94 1 Schedule "M.— Quarter ending December 31, 1891. Premium, interest, etc., collected by Comptroller of the Currency for account of the Keystone National Bank of Philadel- phia, Pa. A mount as per last report •^•AW"; $2, 812. 50 Final instalment of interest to Sept. 1, '91, inclusive, on $50,000 U. S. bonds to secure circula- tion 068.68 Interest on $60,000 U. S. bonds to Dec'r. 1, '91, at 2 per cent ^^'^- ^ 3, 628. 43 Schedule Hf.— Quarter ending Dec. 31, 1891, amount of assessment paid by stockholders of the Keystone National Bank of Philadelphia, Pa. Oct. 20. BrookfieldGoble, 20 shares, balance **^^ 24. John P. Lo<5an, 25 shares y-;* 5. Wm. R. Warner & Co., 100 shares J.^JS 5. Mrs. Sallie Warner, 6 shares ^ 9. Clement McCune,5 shares r?|! 9. Jacob Myers, 50 shares - -^ 10. Rebecca A. Walker, 2 shares ^ 12. Daniel Weaver, 13 shares ^ 12. John B.Welsh, 10 shares ^ 12. John Robinson, 10 shares 9"* 12. A. M.Moore. 30 shares i'^^*' 12. B. S.Mackie. 1 share -^l 12. Wm. McGillian. 2 shares i^^! 12. Beiy. C. Burns. 10 shares , fj^ 12. A. D. Downs, 20 shares ^-^ 12. Emma Downo, 5 shares Xkn 12. W. F. Gockler, 5 shares .^D" 12. Henry A. Horuickle, 5 shares j^^ 18. E.M. Gans. 8 shares *^ 18. Joshua R. Jones, 15 shares ' ^ 18. Harriet A. Rudiman, 6 shares f^ 18. John Green well, 20 shares I'J'l'" Dec. 18. Joseph Grifr.son,25 shares ' £»« 18. George W. Shirley, 12 shares , ^" 22. E. O.D.Webb, 26 shares ^ ' -^ 20,275 i^i iV . r" ^■- \ \: ;!■'■' ■ ';■* '■ \''; ' t'- J"':- 'i. ''■'?• 400 INVESTIGATION OF NATIONAL BANKS. Schedule O. — Quarter ending Dec. 31, 1891, loans paid and other disbursemenis by the receiver of the Keystone National Bank of Philadelphia, Pa. 1891. Amount as per last report |2, 248. 16 Dec. 15. Jno. W. Boughton, judgment, Boughton vr Yardley, verdict for plaintiff 414. 00 2,657.16 Schedule P. — Quarter ending Dec. 31, 1S91, legal expenses paid by the receiver of the Keystone National Bank of Philadelphia, Pa. 1891. Amount as per last report $616. 96 Nov. 24. Bedle, Muirnead, Mcdee & Bedle, jr., professional services Yardly v». Yard, and Spring Lake, etc., Co 500. 00 30. Wm. Wnartou Smith, 86 affidavits, stock assessment suits 43. 00 30, Sani'l Bell, clerk C. C. U. S., costs suits »#. stockholders 21«. 00 Deo. 4. "Wm. R. Leeds, U. S. marshal, costs suits vs. stockholders 327. 90 4. Brailey, Guilbert &. Haas, stenographers, preparing bill vt. Yard os- tage, $1.00; washing towels, $2.40 ; messenger, 17 cts 6.07 13,118.31 Schedule S.— Quarter ending December 31, 1891. Claims in dispute against the Key^done National Bank of Philadelphia, Pa. Amount at date of last report $926,748. 18 Schedule \].— Quarter ending December 31, 1891. LiabilitieH canceled by offset and otherunse by the receiver of the Keystone National Bank of Philadelphia, Pa. 1891. Amount at date of last report ^^ ()96. .')0 Dec. 15. Jno. W. Boughton, judgment '.'.'.'.'.'.'.'.'.'.'.'.'.. '414. 0() 56, 510. 59 Schedule Y.— Quarter ending Dec. 31, 1891. Contingent liabilities discharged by the receiver of the Keystone National Bank of Philadelphia, Pa. Amount at date of last report ^.^ $1,114.8 INVESTIGATION OF NATIONAL BANKS. 401 Schedule W. — Quarter ending Dec, 31, 1891. Claims establislied not on the books of the Keystone National Bank of Philadelphia, Pa. Amount at date of last report $258.24 Number 852. Jno. R. Read, att'y, account rendered for professional services 2, 017. 00 875. Patience Michuer, Cert, of Dep., Number 2121 $70. 00 Int., 3 per cent from 4, 5, 89 to 3, 20, 91 4.11 74. 11 2,349.35 Exhibit 20. Be^art of the condition of the Keystone National Bank of Philadelphia, Pa., in the hands of receiver, for the quarter ending Mar. 31, 1892. ASSETS. ■II. I #1 Assets at date of suspension, viz : Bills receivable (schedule with first report) . Other assets (schedule with first report) . - . Excess of bonds over circulation Total assets at date of suspension . . Additional assets coming into possession of receiver since suspension (Schedule A.) Premium, interest, rent, etc., received since suspen sion ( Schedule B) Total assets at this date DISPOSITION OF ASSETS. Amount collected by receiver to date : From bills receivable (Schedule C) From other assets on hand at date of sus- pension (Schedule D) From other assets acquired since suspen- sion (Schedule E) From premium, interest, rents, etc., (Sched- ule F) Total amount collected by receiver . . Offsets allowed and settled on bills receiv- able (Schedule G) On other assets (Schedule G) Losses on promissory notes and other assets compounded or sold by order of court: On bills receivable (Schedule H) On other assets (Schedule H) , Assets on hand at date of this report : Bills receivable (Schedule J) Other assets at date of suspension (Sched- ule K) Other as.sets acquired since suspension (Schedule L) Amount collected by Comptroller from pre- mium, interest, etc. (Schedule M) Total Total. $811, 602. 51 909,848.90 5, 000. 00 l,726,5n.41 616, 687. 27 3, 490. 86 2, 346, 689. 54 70, 606. 12 78, 204. 55 132,705.72 1, 852. 12 283, 368. 51 20, 063. 42 68,478.52 9, 010. 00 888.76 711, 982. 97 774, 928. 67 474, 090. 26 3,878.43 2, 346, 689. 54 Good. $294, 380. 45 276. 225. 57 5, 000. 00 575, 606. 02 49, 051. 71 3, 490. 86 628. 148. 59 54,758.43 74,622.09 38, 982. 76 1, 852. 12 170, 215. 40 20, 063. 42 34, 158. 40 150.00 582. 42 219, 408. 60 179, 514. 26 177.66 3, 878. 43 Doubtful. $372, 651. 29 624, 341. 19 996, 992. 48 567, 635. 56 1, 564. 628. 04 Worthless. $144, 630. 77 9, 282. 14 153, 912. 91 153, 912. 91 14, 747. 69 3,582.46 93, 722. 96 1, 100. 00 112,053.11 34,326.12' 8, 860. 00 190.31 349, 043. 60 586, 248. 30 473,912.60 1, 100. 00 628,148.59 1,564,628.04 116. 03 143, 530. 77 9, 166. 11 153,912.91 COLLECTIONS. Amount collected by receiver: From good assets $170,21Jfc.40 From doubtful assets From worthless assets Suspense account From assessment of 100 per cent on stockholders, $93,723.96 (see Schedule E). Difference between cash and col- lections Amount collected by Comp- troller Total collections 112, 053. 11 1, 100. 00 4,517.88 15.54 3,878.43 291,780.36 DISPOSITION OP COLLECTIONS. Amount of cash returned to deposi- tors V $1,114.82 Loans paid and other disburse- ments (Schedule O) Claims paid by Comptroller's Legal expenses paid (Schedule P) Receiver s salary paid to date All other expenses (Schedult; li) . . Balance in hands of ('oiui)troller . Balance in hands of rec«'iver as per statement of receii)ts and disbursements 3, 167. 02 6, 309. 79 2,510.32 3. 220. 01) !.'». :!45.20 259,501.35 611,86 Di-sbursements and balances. 291,780.36 3792 26 j?fe ! I ■ I . 1;. u 402 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 403 M 'i i i: i.' Report of the condition of the Keystone National Bank of Philadelphia, Pa., etc, — Cout'd. LIABILITIES. At date of suspension : Collections since 3, 20, '91 $12, 544. 75 Individual deposits (schedule with first report) 1, 300, 513. 07 Deposits made 3, 20, '91 29, 559. 48 Correction in acts, since 3, 20, 91 . 19, 026. 21 Certificates of deposit (HcheUi.E B — .Quarter ending Mar. 31, 1892, premium, interest, rent, etc, received hy receiver of the Keystone National Bank of Philadelphia, Pa., since suspension. the Date. 1892. Jan'y 9 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 Feb'v 4 10 18 Feb. 27 27 Mar. 2 5 5 5 10 26 31 From what source collected. Amount. Amount at date of last rtiport Interest on other as.sets, H. A skin ace. overdrafts Interest on .stoek a8.sessinentK, Kachel A. Brown . Costs on stock a.s8es.sment», Rachel. A. Brown Interest on .stock as.se.Hsinents, Wui. droves, est .. Costs <»n st«K'k a.Hses8uu>nt8, NVni. (}r(»ve.s, est Interest on stock assessments, Wm. (rrove8,jr $2, Costs on stock as.se.ssnieuts, Wni. Gn»ves, ir ! Interest on stock assessments, Geo. K. I>ahi8 1 Costs «m stock assessments, Geo. E. Dahis ■ Interest on stock assessments, J. M iUer „ [ Costs on stock assessments, J . Miller .' i Fees on Number 246. J . L. Craniner, due .1 uly 17, "91 i Interest on Numlwr 246,,!. L. Cramner, due .luly 17, '91 i Interest on stock a88es.sments, Edward 11. Hopkins, ex'r (vosts on stock assessments, Edwai"d H . Hopkins, «'x'r Interest on stock assessments, Wm. M. Mullen , Costs 0 175. 00 5. 25 3, 490. 86 Schedule C. — Quarter ending Mar. 31, 1892. Collections hy the receiver of the Keystone National Bank of Philadelphia, Pa., from Mils receivable. Dat«. No. 1892. Jan'y 11 246 11 261 28 266 Feb'y 3 205 10 24 10 30 10 44 10 47 10 59 15 266 Har. 22 130 Maker of note. Amount at date of last report "WTien due. 1891. July 17 May 19 Demand. Jan'y 12 Dec. 7, 90 J. L. Crammer C. A. Meloney M. Landaner H.W.Kelscy Jas. L. Allan Jas. L.Allan iDec.30,90 Jas. L.Allan Jan. 30, 91 D.J.Thompson Feb. 10, 91 Jas. L.Allan Mar. 7,91 266 ! M. Landaner Demand. Feb. 2, 91 Good. $54, 508. 43 Doubtful. 250.00 I. $12, 507. 69 500.00 100.00 1.50. 00 "Worthless. $1,100 .1 Milton C. Greiner 400.00 280. 00 210. 00 30.00 70.00 I 350.00 I 1.50. 00 54, 758. 43 14, 747. 69 1,100 Schedule D. — Quarter ending Mar. SI, 1892. Collections from ''other assets'^ on hand at date of suspension, hy the receiver of the Keystone National Bank of Philadelphia, Pa. Date. 1802. Jan. 9 Feb. 4 10 Mar. 5 10 31 Description of assets. Amount at date of last report Harry Askin, on account overdraft E. C. Merriman, Harry Askin, E. C. Merriman, Harry Askin, E.C. Merriman, II it «4 II Total Good. $74, 622. 09 Doubtful. $3, 207. 10 50.00 75. 12 50.00 75. 12 5t».00 75.12 74, 622. 09 3, 582. 46 Schedule E. — Quarter ending Mar. SI, 1892. Collections of ''other assets,''^ acqui since suspension, hy the receiver of the Keystone National Bank of Philadelphia, Pa red Description of assets. Good. Doubtful. Amount at date of last report $38, 761. 36 $73. 622. 96 20 1(N) 00 Stock assessments as per S<^hedule N, for q narter ending Mar. 31, '91 Central Savings Fund H. S. D. & Co., check paid offset refunded 221.40 38, 982. 76 93, 722. 96 Statement of receipts and disbursements by the receiver of the Keystone National Bank, of Philadelphia, Pa., during the quarter ending March 31, 1892. Beceipts. From bills receivable, as shown by Schedule C From other assets, as shown by Sched- ule D From other assets, as shown by Sched- ule E From premium, interest, etc., as shown by Schedule F .From shareholders, as shown by Schedule N, included in Sched. E. Amount. $2, 490. 00 375.36 20, 321. 40 515.60 .1. . 1 Total receipts duruig the quar- ! ter Balance on hand at date of last report. Total to be accounted for 23, 702. 36 1, 179. 00 Disbursements. Loans paid, and other disbursement!?, as shown bv Schedule O Legal expenses paid, as shown by Schedule P Receiver's salary paid to date All #ther expen.se8, as shown by Schedule R .".. Remittances to Comptroller Amount. Total disbursements during the j quarter \ balance in hands of receiver 24, 881. 36 $509.86 632.75 900.00 2, 226. SO 20, 000. 00 24, 269. 50 611.86 Total accounted for. 24, 881. 36 ■■■, V L H\ ^-F n .■''■■ *,. 404 INVESTIGATION OF NATIONAL BANKS. « Schedule F.— Quarter ending March SI, 1892. Pretkium, interest, rent, etc., collected by the receiver of the Keystone National Bank, of Philadelphia, Pa. 1892. Amount at date of last report gi y-jg co Jan'y 9. Interest on other assets, H. A skin, ac. overdraft '.-'.*.'.'.*.'.*.'.''.'.*.'.".'. ' '2 45 9. Interest " stock assessment, Kachel A. Brown 915 *>«; 9. Costs •' " " " •' " fi2J; 9. Interest " •' " Wm. Groves' est '.'"**'!*.'.'! ncu) 9. Costs " " *• " " •' Atk 9. Interest " " " Wm. Groves, jr. '.'.!". "."/.'.*■."..'.*.*.'■.■.'.'.■ ■.■'.;'. 21 r! 9. Costs " •• «« •« »• i'l.ti.i 9. Interest " " " Geo. KDavis ..■.*.*.***'.'.'.'.'."'.■.'.'!.*;.■.*; uKi 9. Costs " •• " " " •' fl-^. 9. Interest " " •' J.Miller '..'.'. o'S 9. Costs •« •• *« 14 .• Q 9. Fees " No. 246, J. S.Cranmer, dneJuiy'n.'isM .'!.'!. '!."!. '!.'!.'!.' 9,^ 9. Interest " " " '♦ " " " ;;; .^ V)? 9. •' " stock assessment Edward F. Hopkins, exr !*!!*!! roI 9. Costs •• " " " " " " Jfn 9. Interest " " " Wm-McMuUen V.V.V.V.'. I'Xl. 9. Costs " " •' " " " . * Q Feb'y 4. Interest " other assets, B.C. Merriman,ac. overdraft*."Iiri"*I JS2 10. " •• " " H.Askin a XX 18. •• " No. 267, C. Hau, demand loan to March 22, '92 '.*.*.'. ill 45 oo 37. " " stock assessment, AViu. Whitesides, dead 1V90 27. Costs •• " " " " •♦ g 7^ March 6. Interest on stock assessment, Wm. H. Brooks rt"^ 6. Costs " ♦• " " •• ■.■"'.■.■.". laSS 5. Interest " other assets, E. C. Merriman ac. ovenlraft qa« 10. " •• " " H.Askin " •' .... oJX 26. •• •' stock assessment, W. H. Vennell '.'.'.'.'.[ 17^'^ 3L •• " Other assets. E.C. Merriman, ac. overdraft r.!!".!.'i'.!."!! 5:25 1,852.12 Schedule G.— Quarter ending Mar. SI, 1892. Offsets allowed and settled by the receiver of the Keystone National Bank, of Philadelphia, Pa. To whom allowed and character of indebtness. On bills receivable, as per last report On other assets, as per last report John Bardsley, overdraft, by John Bardllpy, special Bank of Batavia, N. Y., by First National Bank of Batavia. Good. $20, 063, 42 34, 157. 15 i.'25 Doubtful. 0 100 250 350 550 50 2,00(1 2,500 5,000 50 ''n ' m m i i ao,iM 406 INVESTIGATION OF NATIONAL BANKS. Schedule 0.— Quarter ending March Sly 189i. Loams paid and oihei' disbursements hy the receiver of the Keystane National Bank of Philadelphia^ Pa. 1892. Amount as per last report ^'f^'a« Jan'y 8. Joseph U. Ooxe, collection made since susi^nsion 509.8b 3, 167. 02 Schedule F.^Quarter ending March Sty 1892. Legal expenses paid hy the receiver of the Keystone National Bank of Philadelphia, Pa. 1802. Amount as per last report u.*-v, ^\Vi:"V« "i" ^^'^'^'^-^'^ Jan'y 8. Allen, Lane & Scott, printing paper books, Boughton vi. Yardley, and Mntual Bank- ing Co. r#. Yardley *;-?^ 11. James B. Nixon, fee retained, Yardley t>». Maloney ^'kn Feb'y23. Olark J. Wood, witness fees, McNutt vs. Bank oo- n^ 29. Bead &. Pettit, disbursements, costs of suits as per bill t,'IS March 9. Frederick Parker, esq., disbursements, costs of suits • 50. 00 25, Wm. V. Williamson, clerk, court of appeals, printing record in Nos. 13 and 14, March term, Yardley r«. Cloitine o«'2n n. JohnB. Read, esq., disbursements, costs of suits 9o.70 2,510.32 Schedule R.— Quarter ending March SI, 1892. All other expenses paid hy the receiver of the Keystone National Bank of Philadelphia, Pa. 1892. Amount as per last report ^^"^'Ha^ Jany . 4. Albert R. Barrett, services and expenses for NovernVr, 1891 159. 00 8. Albert R. Barrett, services and expenses for December, 1891 I'l. 95 11. Interest to E. O. D. Webb ch argecl bor in excess and returned to her , en" ^ 80. Wm. C. Ryan, asst. to receiver, salary for January JSO. 00 30. John ( : . Divine, ca.shier and bookkeeper, salary for January 125. 00 30. Lillie Burns, stenographer and typewriter, salary for January 32. 00 30. Petty cash, pir Wm. C. Ryan: Sam'l Bell, clerk C. C. U. S., affid., $6.50; janitor, $5 1 postage and reg, 32 eta.; box for books, $2.50; Bell, aft'd., $2; receipt l)ook, 75cts 1'-"* Feby . 12. Albert R. Barrett, services and expenses for January ^ ^^" ^ 19. Geo.H. Wood, services and expenses for January !^"'i 19. Arthur P. Stewart, services and expenses for January ?} " 29. Wm. C. Ryan, asst. receiver, salary for February 150. 00 29. John G. Div ine, cashier and lKK)kkeeper, salary for February 125. 00 29. Lillie Bums, stenographer and tvpewrit^'r, salary for February 32. 00 29. Pettycash, per Wm.C. Ryan; Mary Foster, wa.shiug towels, $3; ^ doz. penholders, 40ct8 ; notary fee, $2 5.40 March 4. Albert R. Barrett, services and expenses for February 1 4b. 03 4. Geo. H.Wood " ' SJJ? 4. Arthur P. Stewart, " " " " J.^.lo 8. Arthur P. Stewart, " " " toMarch n.50 25. O. G. Hempstead & Son, expenses and services exporting and selling 26 casks wine, collateral held by Keystone N. Bk ^^' 66 31. W. C. Ryan, asst. receiver, salary for March IpO. 00 31. John G. Divine, cashier and boofekeep«'r, salary for March 12.^. 00 31. Lillie Bums, stenographer and typowrit^^r, salary to March 21 22. 00 81. Petty cash, per Wm. C. Ryan: E'. W. Keler, affidavit to statements, $3; soap, 30 cts. ; Mary Foster, washing towels ; teleg. from Comptroller, Gl cts 6. 91 Schedule S.— Quarter ending Mar. 31, 1892. Claims in dispute against the Keystone National Bank of Philadelphia, Pa. Amount at date of last report $926, 748. 18 Magill, assignee, etc.. of John Bardsley, v. Keystone National Bank; suit for $100,000 w<»rth of HaUiniore traction bonds, alleged to be the property of John Bardsley ; given by the bank to the clearing house as collateral for daily balance 100, 000. 00 1,026,748.18 Schedule V.— Quarter ending Mar. SI, 1892. Liabilities canceled by offset and otherwise by the receiver of the Keystone National Bank of Philadelphia, Pa. 1892. Amount at date of last report $56,510.5 Less amount recharged to individual deposits: Central S.F.&S.D. Co. to H.HiUlebrand $240.00 Do. S.F.&S.D.CO 22L40 46L40 56, 049. 19 Jany. 19. Transient collections to Washington N.Bk.,N.Y 1,198.50 8. Jos. H.Coxe, collections paid 509.86 Feb. 12. Jno. Bardsley, special by Juo. Bardsley, overd'f 't 34, 088. 52 Jany. 29. Ist NatBankof Batavia,by Baiikof Batavia -- L25 9L 847. 32 INVESTIGATION OF NATIONAL BANKS. 407 Schedule Y.— Quarter ending March 31, 1892. Contingent liabilities dtncharged by the receiver of the Keystone National Bank of Philadelphia, Pa. Amount at date of last report ' $1,114.82 Schedule W.— Quarter ending Mar. 30, 1892. Claims established, not on the books of the Keystone National Bank of Philadelphia, Pa. Amount at date of last report - *"' ^\>j 952. Samuel Lucas y checks drawn upon, and which, if the Keystone National Bank had not suc- ceeded in obtaining certiticates for, would have remained a liability against the bank, I have requested them to lay the matter before you. I have said to them, unoffi- cially, that if it were possible for it to be clearly shown to you that the depositors of the Keystone National Bank were benefited directly by the exchange of these certifi- cates for their New York draft, that you would probably, after satisfying yourself that the legal points were fully covered, allow the receiver to reimburse thein out of the funds now in possession for account of the bank, and receive from the Fourth Street National Bank the draft which the Keystone National Bank drew on the 19th of March. Mr. J. S. Singer will present this letter to you with his credentials, showing his authority to represent the Fourth Street National Bank, and I commend him to your kind attention. Yours, very respectfully, W. P. Drkw, Nat. Bank Examiner. m 4k I HI 410 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 411 * lietter dated Philadelphia, Juiiel4, 1891, addressed to Mr. Laeey by Mr. H. V. Jones, at one time acting assistant bank examiner to Mr. Drew : Ex!:bibit 23. Phila., June 14, '91» Hon. E. S. Lacey, Comptroller of Currency : D. Sir : I desire to make the following explanation with reference to my testimony «»iven before the councilmauic investigating committee on 12tli inst. : ^ I will state that I did not consult Mr. Drew, as I should have done, as to what my statement should consist of and was taken to task by him for making any reference to your visit on Feb. 13. It was not my intention to imply that you had set a value upon any of the assets of the bank, but that you were shown the sheet of the bank on which the Sea Girt property was carried as $700,000,^and that the apparent defi- cit was $400,000. I regret very much that the matter has been taken up by the papers as it has, and •im ready to do anything in my power to rectify it. Yours, respectfully, ' ^ H. C. Jones. Letter of E. S. Lacey to H. C. Jones, dated June 17, 1891, addressed care of Mr. Drew : Exhibit 24. Treasury Department, Office Comptroller of the ('iirrency, Wanh'mtjton, 1). 6'., June 17, 1S91. Mr. H. C. Jones, Care of Mr, W. P. Drew, S989 Chestnut Street, Philadelphia, Pa. : Sir: I am in receipt of your favor of the 14th instant, and note its contents. In reply I beg leave to say that your whole and only duty when appearing befrior to its closing was I shown any statement of the affairs of the Keystone National Bank which exhibited an apparent deficit of $400,000. Very respectfully, E. S. Lacey, Comptroller. Letter from Mr. Yardley received June 20, 1891, by Mr. Lacey, dated Philadelpliia, June 26, 18DI: Exhibit 25. Hon. E. S. Lacey, Comptroller of the Currency, Washington, D. C: Sir: The following deposits were made in the Keystone National Hank on the morning of March 20th, 1891, before tlui closing of its doors : • J. D. Laws $292.50 Benj.Seiser 50. (X) Geo. C. Leupold 35. (K) Mrs. S. B. Freeman 100.63 City treasurer 28,762.54 29, 240. 67 The deposits of J. D. Laws consisted of two checks, $200, and $92.50, respectively. The second check was returned, payment being refused, and has since been charged baek and returned to Mr. Laws. The other check, however, was collected and the proceeds have been remitted in the cash sent to the Treasurer of the United States. Claims have been made for these deposits and payment in full is asked. Hem. Charles F. Warwick, city solicitor, has presented the claim of the city for the amount deposited on this date and asks that repayment be made as early as x^i's^t^-ti- cable. I respectfully suggest that payment be made to Mr. Warwick, as he has charge of the claim and represents the city in the mattert Yours, respectfiilly, Robert M. Yardley, Beceirer. Letter from Mr. Lacey to Mr. Yardley, receiver of the Keystone Na- tional Bank, dated Phila., July 3, 1891. Exhibit 26. Treasury Department, Office of Comptroller of the Currency, Washington, B.C., July 3, 1891. Hon. Robert M. Yardley, Receiver Keystone National Bank, Philadelphia, Pa. : Sir: In further reference to the subject-matter of letter of even date and your communication of the 26tli ultimo, you are advised that if Mr. J. D. Laws is neither indebted nor liable in any way to your trust, the proceeds of his check, deposited on the morning of March 20th, for $92.50 should be returned to him out of trust funds in your hands, and that if Messrs. Seiser, Leupold, and Freeman are neither indebted nor liable in any way their respective deposits may be promptly returned. The Comptroller understands that the deposits made on the morning of March 20th were not mingled wdth the funds of the bank,but were safely kept separate for the reason that the bank was not authorized to do business. Very respectfully, E. S. Lacey, Comptroller. Letter from George S. Horan, addressed to E. S. Lacey, dated Phila- delphia, July 15, 1891: Exhibit 27. Philadelphia, July 5th, 1891. Hon. E. S. Lacey, Comptroller of the Currency : Sir : By the advice of Mr. John Wanamaker I write yon. The circumstances in connection with my deposit in the Keystone Bank are such that I certainly am enti- tled to receive from it the full amount due. It is not a large sum ; but the loss of it at this time is causing me infinite damage. Less than a week before the closing of the bank I opened the account, Marsh him- self receiving my deposit and entering it in my pass book. Scarcely had 1 commenced to check it out when the bank closed its doors. Without entering into matters which are well known to everyone now, I may say that the Government should not allow a deposit made at the time I made mine to be lost to the depositor, or even kept out of his possession, when it was known to you that the bank was not in a fit condition to receive deposits, mucli less open accounts. A careful consideration of this matter, and a reply at your earliest convenience, would much oblige, Yours, respectfully^ Geo. S. Horan. 4 ;l U 'A . 412 INVESTIGATION OP NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 413 Letter from E. S. Lacey to G. S. Horan, dated July 7, 1891: Exhibit 28. Treasury Department (K 2291), Office of Comptroller of the Currency, Washington, D, C, July 7, 189U Mr. Geo. S. Horan, „,.,,, ^- „ gOS8 MoClellan «*., Phtladelphia, Pa.: Sir: Your letter of the 5th instant is received, suggesting that you are entitled to receive from the Keystone National Bank, now in the hands of a receiver, the full amount of a deposit to your credit at date of suspension. ^ ^ , , i ^ i ^ reply, vou are respectfully informed that United States Statutes a »8olutely pro- hiWt a preference to one creditor over another, and that the Comptroller l^as no au- thority to discriminate as between creditors of a national bank, even though deposits were made on the day preceding suspension. j, - a ^ +1.^ «««^fo As the Comptroller is advised; your claim would not be sustained by the courts. Very respectfully, ^ g ^acey, Comptroller. Mr. Lacey. Under date Philadelphia, August 13, 1891, John Blair Mame time subsequent to July 11th, 1891, Mr. Haines received a notice troin the Hon Robert M. Yardley, receiver of the aforesaid Keystone Nat'l Bank, advising him of the fact that the Comptroller of the Currency had authorized and ordered an assess- ment of 100 per cent on the stock of the said bank. The amount of the assessment therefore that Mr. Haines is called upon to pay is $49,550. The notice gave the fur- ther information that unless the said assessment was paid on or betore Aug. lltu '91, that suit would be brought to compel the payment, and also that interest would be computed from that date. ,.,,x ^^ . ^*^ In this connection Mr. Haines and myself thought it advisable to call upon you at vour office in \Va8hingt«)n and relate to you the following statement ot lact, alter which relation we asked you to exercise the discretion which the law allows you, and direct the receiver to abstain for a time, the length of which to be hereafter airreed upon, from bringing suit against Mr. Haines to enforce \ho. collection of the said assessment. In order that you may have the matter, with its a^ceomi|anying statement of facts, properly before you in the consideration thereof, I herewith pre- sent the same to you in writing for the purpose that the paper may be hied in the papers in the trust, and thus prevent any question being raised in the tutiire as to the propriety of the action which we hope you may take m the matter. We do this willingly and freely, knowing as we do that the communication will be held, as it from its peculiar nature deserves, confidential. . i i „ The period of time required, however, before this first payment can be made we would say would be about eighteen months, or February lvl?i*3. During this time anv dividend that might be declared by the receiver, in which Mr. Haines would have an interest as a depositor, could be credited to the stock assessm*int account ot This^may seem a long extension of time to ask. Under the circumstances, herein fullv explained, we deem it, however, a reasonable one. By such extension the de- positors will profit, without it they will lose anythiuff that might come from him ; we therefore think that as their trustee you would be but properly exercising the dis- cretion which the law reposes in you. Certainly no disadvantage can result to any cestui qui trust. Let me add that there are no other suits against Mr. Haines, neither are there apt to be any, as he is conscious of no outstanding obligations other than those mentioned. He will assuredly incur no new ones, even for the purpose of paying off those mentioned, as by the plan outlined he proposes paying those out of the legiti- mate profits of his business. In conclusion, permit me to say that should you at any time desire to consult either Mr. Haines or myself, if you will telegraph eithes one or the other of us we will come at once to Washington. We have endeavored to make this statement as clear and distinct as possible, and trust that you may see your way clear, and admit the advis- ability of granting the extension prayed for. I am, my dear sir, very truly yours, Jno. Blair Macafee, Attorney for Granville B. Haines. On September 6, 1 replied to this letter of John Blair Macafee, but it was signed by Mr. Nixon. Exhibit 30. Treasury Department (K 2291), Office of Comi^iroller of the Currexct, Washington, D. C, September 5, 1891, Mr. John Blair Macafee, Attorney at Law, Philadelphia, Pa. : Sir : Your letters of August 13 and 31, in behalf of Mr. Granville B. Haines, a shareholder of the Keystone National Bank, have received resijectful consideration. It is possible that other cases may arise suggesting compromise, but at present it is impracticable to advise the receiver and his counsel to entertain propositions which might amount to exceptions. Very respectfully, R. M. Nixon, Deputy and Acting Comptroller. Q. Mr. Haines was connected with the Keystone National BankT — A. Mr. Haines was the largest shareholder, and was connected with the bank for many years, and for a short time after the death of Mr. Lucas was president. At the time the bank closed he was a director and a large shareholder. Q. He was not one of the executive officers at that time! — A. No, sir. This is one letter, which Mr. Gate selected to be copied in relation to the matter. Afterwards it was taken up, and the receiver, by his attorney, finally concluded to not bring action against Haines if he would make a present payment; and my information is that he paid $5,000 in cash and that suit was not brought, with the understanding that he would make further payment in full in installments. Mr. Stod- dard reminds me that those payments are mentioned in the papers which have been read. The next communication submitted is a telegram dated Beaver, Pa., November 29, addressed to the Hon. E. S. Lacey, from M. S. Quay: Exhibit 31. [Telegram.] Beaver, B. Co., Pa., Nov. S, 1891. Hon. E. S. Lacey, Comptroller of Currency, Washington, D. C. : I am informed that Francis B. Reeves, an expert, appointed by Gov. Pattison to ex- amine the affairs of Keystone Nat'l Bank, was the person who abstracted and caused or permitted to be copied for partisan and libelous purposes the certificate of deposit heretofore mentioned. Will you have the kindness to interrogate him to-day on the subject! M. S. Quay, 41 ^ '. 414 INVESTIGATION OP NAllONAL BANKS. INVI SriGATION OF NATIONAL BANKS. 1'' k h Ml' f i a^notkuoyv^ ^'^ ***** referl-A. Of my own personal knowledge I Q. Somethiugis said in it about what was "heretofore mentioned.'' Was there any consultation between Mr. Quay and yourself ?— A I had a conversation with Senator Quay in relation to it, but I have forgotten whether it was before or after. Possibly it was before '"'So^"*" Q. State what the subject matter was that that letter refers to — f^jLi^^ mer correctly, and copies of it were published in the newspapers. It was m reference to the abstraction if this voucher from the custody of the receiver and its being photographeil and pub lished that my conversation was held with Senator Quay. ^ By Mr. Beosius: 8' ^H".^* * ®"'* ""^® *'"* of that publication*— A. Yes, sir »,. =;o£i • ^? publisher was convicted !-A. I understand thkt to be 80 stated in the newspapers. By Mr. Dickeeson: ofthp^o^I^w""*'*^ ' ?"* ^? PnbUshing the articles, but on account ot the comments made in reference to it f— A. I would not sav as to that, because it is not fresh in my recollection. ^ w'i^p^^^^Sf.lf'nf *?'*'■* '? anything in it we can get that later. thSeSat*of d?p™"^- '^ '''''' ^-^'^''S *« «^«- '^'^ «!«** of The Chairman. Nothing. By Mr. Dickerson: i.o^' FH^^^ know whether he actually deposited the money there when he got the certificate ?-A. I have no personal knowledge, hk to th^t M. Do you know whether any of these parties were interested in it?— time. probably read what was said in the newspai)er8 at the Q. You do not know whether it was a loan or a deposit?— A. Of mv own knowledge I know nothing about it. ^ ,.n?;.^i?fw fi,''''^^^'''^ ^ri"^ ^ y^^ ^y ^^- Q"ay «^«"fc it^-A. i do not recall that there was. It was wholly a question of how it came to get out ot the possession of the receiver, who was resp(>nsible C it^ being abstracted from the records of the trust. I do not know. By Mr. Walker: Q. The information was a copy of the paper abstracted ?— A. It was understood that the certificate itself had'^been taken from the pos^^ sion of the receiver and had been photographed a J^;/«^ returned ?-A. I think so, but I am not positively certain. 1 ^1^ ^^ "^^^ ^""^"^ ^^^ ^^«^*« «^ *^^ ti'ust- Mr. Dickerson. Did you ever see any correspondence between Mr Drew or the receiver, or anybody else and Quay in reference to it^-i; ■i^ o, sir* 415 N By Mr. Cox: Q. Did you ever hear Drew's explanation of how it got out of the hands of the receiver? — A. Mr. Drew was not in possession of the bank at the time. I do not recall having any conversation with the receiver in relation to it, but as I understood it, it is still a matter of grave doubt as to how it did disappear from the files of the trust. I have no information of how it got out, nor am I informed as to who is responsi- ble for it. On November 2, 1891 , 1 sent the following to Senator Quay in response to the one that has been read : Exhibit 32. Treasury Department, Office of the CoMrTROLLER of the Currency, Washivgton, Nov. 2, 1891. Hon. M. S. Quay, Beaver, Pa. : Dispach received and referred to Secretary, who is iuterrogatiiig party and will reply when answer received. E. S. Lacey, Comptroller. Q. What party was he interrogating as referred to in the letter. What party is he talking about?— A. His telegram asked that Mr. Keeves be interrogated, and I suppose it referred to Mr. Keeves. By the Chairman : Q. Which Secretary is referred to !— A. The Secretary of the Treasury. By Mr. Dickerson: Q. Who is Mr. Reeves? — A. He is chairman of the committee of fifty. Q. From the city of Philadelphia?— A. Of the city of Philadelphia, under whose direction a certain investigation of the condition of this bank was made. This committee raised a ftind by itself, by voluntary contributions, and employed four exi)erts, who were detailed to examine the affairs of the Keystone National Bank, and the attairs of the Spring Garden National Bank. Q. They were admitted to the records of the Keystone Bank by your consent? — A. By my consent. There was associated with them, as I have heretofore testified, four employes of the Treasury Department, two in the Keystone Bank, and two in the Spring Garden Bank, and tli^y jointly made an investigation. Q. In connection with the investigation made by the council of Phila- delphia? — A. The council made the first investigation, the governor made the next, and then an investigation was made by two experts appointed by the mayor of Philadelphia, and paid for out of the public funds. And third and last came this investigation by the citizens com- mittee of fifty, and experts detailed from the Treasury Department. This is still progressing and has been since about the first of October last. [Insert in evidence communication contained in package marked No. 21 of this date.J Messrs. Reed & Pettit, lawyers of Philadelphia, were employed by the Keystone Bank to make an investigation of the Sea Girt Land Im- provement and the Spring Lake Beach Improvement Companies as to the value of the stock in those two ct)mj)anies to be turned over to the Keystone Bank in payment of installments of the deficit found on ac- i { 416 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 417 count of the money taken by the Lucas estate, or Lucas during his life- time. I have before me the communication fi'om Reed & Pettit, under date of March 18, 1891, addressed to the Keystone Bank. — Witness^ judgment. Exhibit 33. Philadelphia, March 18, 1891. The Keystone National Bank, Chestnut and Juniper sts., Phila.: Gentlemen: Wo have investigated the condition, nature, and extent of the prop- erty belonging to the Sea Girt Land Improvement Company and the Spring Lake Beach Improvement Company and the interest of the bank in those companies, and have to report as follows : By an agreement or bill of sale from Mrs. M. Elizabeth Lucas to the bank, there was transferred to it all her interest in the above-mentioned two companies, which she had theretofore conveyed by agreement to Mr. Henry H. Yard, and all her inter- est in the said agreement. This interest in the said companies consisted in a holding of stock therein, represented, as we understand, in the one case to be 90 per cent thereof and in the other 95 per cent thereof. The agreement with Mr. Yard referred to in the transfer to the bank was an agree- ment by which Mr. Yard, mnler date of August 20, 1889, agreed to pay $400,000 for the entire tract now owned by the Sea Girt Land Improvement Company and the property owntMl by the Spring Lake Beach Improvement Comi)any, the same to be free from all incumbrance, provided that, if any indebtedness should exist and its amount could be ascertained with certainty, then the indebtedness should be settled by the party purchasing by deducting the indebtedness from the purch.ise money of $400,000, and provided that if it was not deemed advisable to convey the properties absolutely, but it was preferred to sell only such interest or interests as Mrs. Lucas owned or controlled in the capital stock of the said company, that he would buy all the stock upon a valuation of $100,000, less the indebtedness, if any, for the Spring Lake Beach Improvement Comi>any and $300,000, less indebtedness, if any, for the Sea Girt Land Improvement Company upon certain agreed payments, $50,000 to be in cash and the deferred payments to be represented by approved notes witli the stock as collateral. This, as stated by an indorsement on the paper signed by Mrs. Lucas, was accepted by her on August 27th, and a payment of $5,000 then received. And, it having been determined to sell th<^ stock and not the land, the stock was delivered to Mr. Yard; the balance of $45,000, making the first payment, it is stated, was paid, and Mr. Yard gave his notes for $250,000 of the balance of the purchase money, with the stock attached or intended to be attached as collateral, leaving $100,000 to be ar- ranged when the amount of the indebtedness of the two companies was ascertained. These notes were transtV'iTed to the Keystone National Bank and be<*am»' its property, and are now in the actual possession, as we are informed, of Mr. Bardsley, with the stock as collateral thereto. The transaction was never further completed, the amount of the indebtedness was not ascertained, and no further settlement was made with Mr. Yard, an«l the amount, if anything, coming from him under that arrangement out of the balance of $100,000 unpaid was left unadjusted. Without more it would seem therefore that Mrs. Lucas had nothing to sell. The transfer by her, however, recites that this sale to Mr. Yard was really made to him, not for his personal benefit, but for the purpose of enabling the property to be converted into money to be paid to the Keystone National Bank, and to this Mr. Yard, who was present, assented. A paper was prepared for his signature releasing and conveying to the bank his title and interest in the stock, but he has not as yet executed it, and naturally enough, as his notes for $250,000 have not only not been returned to him, but are in the hancfs of a third party. Beyond all question^ however, the title of the bank to the stock should be per- fected as soon as possible. It now depends on verbal proof of Mr. Yard's assent. For, though the bank has the stock yet it got possession as collateral to Mr. Yard's notes, the certificates have not been transferred on the books to the bank, and an assertion on Mr. Yard's part of a right to redeem by the payment of the notes could be only defeated by verbal proof of his assent to the presmt transfer. If at all practicable Mr. Yard should sign the release, his notes should be returueerty lying south of Sea Girt avenue, except a small portion east of Second avenue, Avhicii, however, is of little or no present value, owing to the proximity of the encampment and the existence of a ritle range leading out to the ocean. These proceedings have so far proceeded that the land has been taken and the damages assessed at $70,000, which we are informed will be paid some time this spring, and as soon as the mortgage held by the Fidelity Trust Company, trustee, is satisfied will all come to this company. These two tracts being deducted, the only real estate remaining in the company is the strip along the beach above alluded to and the part lying west of the railroad. Part of this as marked is also woodland, and the same observations made in regard m 1' ■'. ■i r t i 1 'I I i Li' ! % II 420 INVESTIGATION OF NATIONAL BANKS. to the former companv's property apply to this ^ith greater force, for the reason that srai r^'lv any of the property east of the railroad has been sold, and it will be many v^'arV l^fore this will be available, especially in competition with the land east of the railroad in the hands of another owner. There isleft, however, about 80 acres of land, or 320 lots, wortli at the same valuation, $40,000. Th ""ami ?8 free from incumbrance except a mortgage for $100,000 given by the comnany and secured upon the land embraced within the red-mk line. This was given to secure the i»ayment of 100 bonds of $1,000 each, in ten years trom Mav 1 1875; 78 of these bonds have been canceled, leaving 22 to be accounted tor. These the Lucas estate had agreed to procure and surrender for cancellation without cost to the company, and at this writing all but three have been secured and are held by ihe counsel for that estate, and will soon bo, if there are not already, so ^'^The mortijage i'or $215,000 belonging to the company contains the same clause as to tlie releaseof lots as the one given in the case of the Spring Lake Company, except that the Huni per lot is fixed at $200. The mortgages coyer 1,150 lots, and at that rate would produce $230,000, but is subject to the same criticism as the former one, that the eoinpanv might be left with the least desirable and practically unsalable lots as security for aiiv unpaid balance, though on the other hand, inasmuch as the mortgage coiuVs due on December 19, of the present year, this is not, perhaps, very "^The' only other liability, as we are informed, is one note held by the bank of The* title t«> the land has not been thoroughly investigated, as it was conceived the (»biect of the present investigation any, at 65.41 300, 1(>6. 49 Total value 359, 983. 64 Or at the greater valuation as to Spring Lake Company of $24.88 per , " vo UM.rtgages standing in the name ot Mr. Lucas lor $27 500 and $16,(K)0, as reduced ti. a total of agout $30,000, should be a.bled to the above valuation. The deliverv to the bank of the 851 shares aaditional, to which it is en- titled of the Spring Lake sfoek will increase the valne (»t its holding in that com- pany,' when the overissue of400 shares is retired, to $87,229.28 ami adding to the Value of the Sea Girt Co. $300,166.49, make the value .)t the holdings m both com- ^*Th?ttnMroing' ^^ has been ol)tained from interviews and consultations with Mr Yard and an examination of the books in his possession; from a personal examination during two days of the reecu-ds at Freehold and of all the conveyances to both eomi>anies and all e'onveyances from them and from a visit to, and inspection of the land itself and a veriHcation of the plan hereto annexed by comparison with the deeds, and has been carefully examined and is believed to be correct. INVESTIGATION OF NATIONAL BANKS. 421 I We would recommend that the bank procure from Mr. Yard a release of his title to the stock and surrender his notes ; that it institute a search for the 851 shares that should be delivered to it, and take steps to procure if possible their delivery ; that it cause steps to be taken to have the title to the two mortgages standing in Mr. Lucas' name declared to be in the company, and to have the mortgages reformed, an ifc Pettit. I also produce another communication addressed to me by Mr. Yard- ley, a receiver of the Keystone Bank, dated Philadelpliia, April 29, 1892. Witness reads same. Exhibit 34. Keystoxe National Bank, 1326 AND 1.328 Chesini T Street, Fhiladelphia, April 29, 1892. Hon. E. S. Lacey, Cnmptroller of the Currency, Washington, D. C: Sir: I have the honor to acknowledge the receipt of your letter of the 27th inst., mailed on the 28th. From the best sources of information whit h I can command I conclude that a valuation of the stock of the Sea Girt Land Improvement Company at $60 per share and that of the Spring Lake Beaeh Improvement Company at $22.50 per share is a conservative estimate. There came into my hands from National Bank Examiner Drew as assets of the Keystone National Bank 2,209 shares of Sea Girt and 1,055 shares of the Spfing Lake stock. H. H. Yard questions the validity of 400 shares of the latter and insists that it should have been surrendered, as other stock was issued, he alleges, in its stead. At the same time there were in the hands of John Bardsley 2,000 shares of the Spring Lake and 2,380 shares of the Sea Girt stoek, the property of the bank, w^iich he alle^'es had been given him as collateral security for contemporaneous and subse- quent loans from him to the institution. They subsequently passed to his assignee, who refused to surrender them upon denuMid. Proceedings in equity were instituted on June 11, 1891, by me to secure the recovory of the stock on the ground that its transfer to Bardsley was a fraud u])on the other creditors of the bank. They are still pending. . The value of the stock actually in my hands upon the above estimates would be — 2,209 shares Sea Girt, $60 $147,277.00 655 '' Spring Lake, $22.50 14,737.50 400 " '' " (in question), $22.50 9,000.00 Total 171,014.50 The value of the stoek which is the subject of controversy with the Bardsley assigned estate may be stated as follows: 2,380 shares Sea Girt, $60 162,808.00 2,000 *' Spring L:ike, $22.50 45,000.00 207, 800. 00 Total value of all the above stock 378, 814. 50 It is of course impossible to approximate even the amount which the trust will ul- timately realize from these assests in view of the jjending litigaticm. The nearest I am able to approach it is the statement above submitted. Very respectfully, • Robert M. Yardley, Beceiver, By the Chairman : Q. I call your attention to Exhibit 21 of this date, bein^ a trial bal- ance of the stock ledger. Will you please state what the exact signifi- %\ 422 INVEf?TIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 423 Nl cauce of it is? Is that a list of names of persons supposed to be share- holders f — A, This is a statement of the stock account as it appears on the stock ledger at the time the receiver took possession, and it shows the names of each shareholder and the number of shares to which he was entitled. Q. The total number of shares foots up now how mauyf — ^A. Ten thousand two hundred and seventy. Q. And that is how much in excess of the legitimate issue of stock to the bank? — A. There should have been only 10,000 shares, and this shows an overissue of 270 shares by the stock ledger. TESTIMONY OF C. J. STODDARD. 0. eT. Stoddard, sworn and examined. By the Chairman : Q. Did you receive a letter from the Comptroller under date ot April 22, 1892, addressed to you, being Exhibit 14 of this date, and calling for coi)ies of certain papers f — A. Yes, sir. Q. And did you make those copies'? — A. Yes, sir. Q. And have they been i)roduced here! — A. Yes, sir; to the best of my knowledge and belief everything has been produced here. Q. Y^ou made copies of everything you could Hudt — A. Y"es, sir; everything, with the exception of the corresjmndeuce to and from the receiver. Q. You assisted Mr. Cate, of this committee, in the examination of this correspondence? — A. 1 did. Q. And you prepared under his direction copies of the correspond- ence which have been read by the Comptroller this morning ? — A.. Yes, sir ; such as he selected. Q. And all he selected ? — A. Yes, sir. Q. It has been stated here by some of the other witnesses that they delivered to you copies of the papers called for by the letter addressed to the Comptroller? — A. Yes, sir. Q. Have those copies been produced here? — A. They have. Q. You have attended this examination and you have gathered to- gether this correspondence and documents, and it has all been pro- duced? — A. Yes, sir. Q. You are the Mr. Stoddard who went to Philadelphia under in- structions from the Comptroller in March, 1891, and assisted Mr. Drew in regard to taking care of the bank and its business? — A. Yes, sir. Q. About how long were you there? — A. Abcmt eight days. Q. Can you tell us the dates between which you were there? — A. I left Washington for Philadelphia on the evening of IVIarch 20, and I arrived in l*hiladelphia at 9 o'clock next morning. I think the 20th was on Friday. I arrived Saturday morning and I was with Mr. Drew continuously, with the exception of being over here seeing the Comp- troller on two Sundays. Q. The bank had been closed at that time? — A. Yes, sir; it was closed on the morning of March 20. Q. State what you did to assist Mr. Drew? — A. The Comptroller of the Currency on the forenoon of the day of the closing of the bank advised me of its closing and showed me a telegram from Mr. Drew to the etVect that a receiver should be immediately ap])ointed and that he needed assistance. Later in the day he instructed me to go over, and he gave me a letter which was simply to the effect (I think it has been read in evidence) that I was to assist Mr. Drew in reference to his administration and examination for a limited time. When I arrived at the bank I expected to find a crowd of people, but there were but very tew. I found Mr. Drew waiting for me. We had some conversation with reference to the claims of creditors. During the time I was there, questions relating to the assets of the bank and claims were referred by Mr. Drew to me, and I think without exception I made answers to them, considering myself in the same position that I would be if I were at my desk in the office. Q. What are your duties while you are at the desk?— A. I am responsible for the correspondence with receivers. I originate the cor- respondence with the receivers with respect to the administration of their trusts under the immediate supervision of the Comptroller. I also gave information as to how the trust was to be managed, and in many other ways as to the supervision of many of the matters which were continually arising with respect to bookkeeping, etc. Q. How long have you been in the Comptroller's office?— A. Since January, 1875. Q. You say you originate the correspondence. Do you mean that letters from receivers came to your desk?— A. They came to the Comp- troller, and being marked by him they then come to me. Q. You draft answers to them?— A. I do. If there is anything more than the ordinary course of business in them I consult the Comp- troller. Q. The ordinary work you do yourself? — A. Yes, sir. Q. You answer letters yourself ?— A. Yes, sir. Q. And in these matters you prepare letters and submit them to the Comptroller?— A. I consult with him first, generally, before writing. Q. Y^ou got to the Keystone Bank on the morning of the 21st of March? — ^A. Yes, sir. Q. What was it that you then proceeded to do? What investigation did you make of the books? That is what I want to get at.— A. I first advised Mr. Drew as to the preparation of his schedules. Q. What did you tell him about that?— A. I insisted upon their im- mediate preparation. He had several gentlemen who had been assist- ing, him and who had been placed in the bank some time previous, and had at that time brought the books up so that they were in a fair con- dition to be transcribed— that is, so far as the general accounts are concerned, but, so far as the individual ledgers were concerned, they had not been balanced, and I went and examined those books. Q. Examined what books?— A. The individual ledgers. Q. You say that was the first thing you did?— A. Yes, sir. Q. What did you discover in the individual ledgers?— A. So far as the individual ledgers are concerned they had not been paged and many accounts had not been balanced. Mr. Drew had already started in some of the employes balancing those books. I also suggested that he call in inunediately the pass books, in oinier that they might be re- conciled and retained until a receiver took possession, who only had authority to settle them. I also told him to immediately notify the persons who were charged with overdrafts, in order to ascertain what their condition was, and whether it was true that there had been over- drafts, and if so, to demand immediate payment from those who were so charged. Mr. Jones was continously presenting questions to me with resjiect to the general accounts. Q. What do you mean by the ^' general accounts?" I know, but I I Mi. w 4 * ■ - I r i 1 424 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 425 -J (I want the explantation to go into the record. — ^A. The balances or amounts of the individual accounts. Take, for instance, the individual ledgers first. Of course the general account would show the total amount due the depositor. Take the discount book, whose footings will show how much money the bank has loaned j and in general the ledger accounts the ledger of the bank ought to correspond with the reports to the Comptroller. Q. What kind of books do they have? Take the history of the indi- vidual deposit account; how is that kept? — A. I think there were six separate ledgers. Q. There was a book of original entry of some sort? — A. The entries came from the receiving teller. Q. Was there a book kept by him? — A. Yes, sir. Q. Did you examine that book? — A. No, sir; not thoroughly. Q. The receiver's and the teller's book went to the clerk in charge of the individual ledgers? — A. Yes, sir; that he might see and examine them. Those books are called " ticklers,'' and usually the entries are made in pencil. Deposits are represented by deposit slips, and those would go to the individual bookkeej)er. Q. I am asking about the particular usage in that bank. — A. That I could not explain, for I did not go there for that purpose. Q. From what sources were entries made upon the individual ledg- ers? — A. I would not like to say what the general practice was. I pre- sume it was the usual practice in banks. Q. You did not investigate far enough to know how the ledger entries were posted? — A. Not by personal examination. Q. Do you understand it? — A. I think so. A clerk there made a thorough examination of the transfers and transcribed the different transactions. Q. Did you examine the individual ledgers, so as to enable you to say whether they were perfect or whether pages had been abstracted ? — A. No, sir. Q. Did you learn that any portion of the leaves had been cut out? — A. 1 was so told. Q. You did not look to verify that statement?— A. No. Q. Did you understand from anybody what pages were missing? — A. No. sir. At that time Mr. Drew had learned that Lawrence had done it. My information came fiom Jones, and the individual ledger having been torn it was impossible to discover it. Q. I3id you examine the individual ledger to see whether that had been affected?— A. Yes, sir; I turned over a number of the pages. Q. Did you discover whether there had been any entries made in there in lead pencil? — A. No, sir. Q. Did you discover that any balances had been forced on the pages of that ledger?— A. No, sir. Q. In addition to the individual ledgers, what books were there? — A. The discount book, in charge of Mr. Devine. Q. He was the discount clerk?— A. Yes, sir; he was retained by Mr. Drew. Numerous questions were put to me by him as to his duty, and how he would deal with the bills receivable, and the entries in parti- cular cases, but, in general, the questions propounded to me were such as concerned the bank after its suspension. Q. What were the questions that were presented to you?— A. For in stance, the accounts of corresponding banks where the Keystone Bank had sent, prior to the suspension, certain items, and also certain items sent after suspension. They were inquiries as to what the legal status was. In case the Keystone Bank owed another bank, whether they should retain all; and questions similar to that. Then there were people coming in to pay their notes, and, having balances, wished to take them out and have a settlement made. They wanted to know what their authority was in such matters, and with respect to bills receivable falling due at the clearing house and the clearing house failing to pro- test them, and what should be done about it, etc. Persons who were depositors having balances to their credit and being liable upon notes which had fallen due after the suspension — they wanted to pay the notes, but wanted the deposits to ai)ply on them and wanted to know whether that could be done. Q. Did you examine the general ledger of the bank? — A. Not par- ticularly. Q. The general ledger was, I suppose, the account between the cashier and the bank? — A. I could not say. I was busy answering questions all the time and consulting the people who came in who were interested in the bank, being creditors or debtors. I did not consider that I was there to make examination of the books. I was, however, interested in the stock ledger, because it contained an overissue of stock. I spent two days on that. Q. State what you discovered about that. — A. I think on Tuesday or Wednesday after I arrived Mr. Drew informed me (and Mr. Marsh also intimated) that it was expected that a large block of stock could be recovered from some one, and that it should be in the bank, but the exact number of shares were not known, and no examination had been made of the records of the bank in that respect. It was represented that Mr. Samuel B. Huey, as attorney for the Lucas estate, was the ])erson who could deliver these shares, but that he objected to doing so, claiming that a part of the stock was not legitimately in the i^ossession of the party holding it. During the first part of that week Mr. Marsh was in and out of the bank a great many times, and, as I understood, was continually api)roaching Mr. Wanamaker with respect to these identical shares of stock, but that it was claimed that they were not in his i)ossession. Q. In whose possession? — A. Mr. Wanamaker's possession. Finally Mr. Huey came to the bank, and in a conversation with Mr. Drew in my presence said he had a nut to crack in respect to that stock, which was, as I remember it, substantially that the records of the bank did not disclose any more than 10,000 shares issued to i)er8ons who were entitled to them legitimately, and that the stock he held was part of it and belonged to the 10,000 shares, and thatheproi)osed to retain them unless it could be shown that they were not legitimate. 1 then told Mr. Drew I would like to make an examination and called upon him to fur- nish the stock book. For a long time it could not be found, and Mr. Marsh was asked rei)eatedly to furnish it. I myself searched all over the bank, and I suppose handled every book in it. Finally Mr. Marsh delivered it to me. Q. Do you know where he got it? — A. No, sir; I do not. Q. It was not in the bank, so far as you knew? — A. No, sir. Q. You had access to the files and the books? — A. Yes, sir; I had searched everywhere for it. It was supposed to have come from behind or from under a desk. However, I got the stock ledger. Q. Was the stock ledger found in that way, or was it the book with the scrip? — A. It was the stock ledger. The canceled scrip were pasted in the book in the proper places. Those were all there. The stock ledger was missing. I made a transcript of that stock ledger and a if f 426 INVESTIGATION OF NATIONAL BANKS INVESTIGATION OF NATIONAL BANKS. 427 ihi I R^ ■•: I % 4Mr transcript of the stub book for the purpose of comparison, and I think the record I made is in the receiver's hands. I found that, either from the stock book or the stub book, there were upwards, if I remember correctly, of 12,300 shares. There was only a difference of about 70 shares between the two books. Mr. Drew immediately telephoned Mr. Huey to come up, and he did come the next day or the day after, and upon beinji" shown this transcript and my stating to him the thorough examination I had made, showing him the figures, etc., he pulled the certificates out of his pocket and delivered them to me personally, he calling them off and I writing them up, and he drew a receipt to sign. There was one other thing that Mr. Huey was doubtful about, and that was turning over those shares because there were three places blank on the stubs. Q. You say there were three places blank? — A. Yes; there were vari- ous irregularities. I believe there had been no entries in the stock ledger for upward of a year. Q. In regard to those three i)laces, did you find the certificates that corresponded to the blanks? — A. No, sir; during my examination, Mr. Hayes, who was about the place, brought to me one or two certificates that he found about his desk, and Mr. Jones brought me 50 shares that he found. Q. Were they blank certificates? — A. No, sir; they were made out to parties. Q. Do you remember to whom? — A. No, sir; I felt that there might be a great many fictitious names in the certificates. I had great difti- culty with them. It would have been easier if they had been regular cancellations, but the record was incomplete. Q. The stubs did not show it? — A. Some did, and some did not. Q. There was of course on those stubs the line, " issued for," which was printed, and then a blank space? — A. Yes, in many instances there was nothing filled in in that blank space on the stub. I could narrate a great deal that occurred, but I do not know that you would care to hear it. Q. We want to hear it all. — A. During this time there were constant interviews. Q. Have you gotten through with the stock business? — A. Mr. Marsh had represented all this time that there was some source from which 4,000 shares were to come. My impression was he looked to Yard for a number of those shares; but during my stay they did not turn up. There was nothing in it. On several occ^asions Mr. Marsh undertook to figure up the assets, when x)eople would come in who were sup])osed to be interested in the purchase of the assets, looking toward a resumj)- tion of the business. Mr. Marsh would prepare a statement. I think he made it as high as $1,800,000 assets at one time, always including the Huey stock and 4,000 shares besides as reducing the liability. Mr. Marsh was exceedingly anxious all the time after my arrival to know whether 1 had any information as to his probable arrest; and he ap- proached me i)rivately from day to day several times, and would come to me when he could catch me apart to ask me the question. He stated that he did not propose to run away; that he had committed grievous faults, and that he was ready to take his punishment. He was con- tinually asserting that. Mr. Drew was advising him in the matter, and stating that if he was guilty it would be shown. But it seemed to me that when Mr. Marsh was asked any direct question as to who was at fault aside from him- self, that he had nothing to say. He was complaining about some- body who had deserted him in his hour of trouble without mentioning any names. At the time the dispatch mentioned in the evidence was received with respect to Marsh's arrest, Mr. Drew was at a great loss to know what it meant, and was inclined not to tell me anything about it. The district attorney brought it in, and afterward Mr. Drew showed it to Q. To what dispatch do you refer?— A. The dispatch from the De- partment of Justice (the Attorney-General) directing that Marsh b e not arrested until further orders, or something of that sort. I explained it in this way, that criminal prosecutions belonged to the Department of Justice, and the Comptroller's duty ended in furnishing evidence of everything in his possession and becoming a willing witness as well as the examiner. Undoubtedly there was a very good reason for it; and I could see myself that if there was any prospect of resuscitating the bank Mr. Marsh could explain things that others could not, and it would be well to have him there. Q. You were there at the time the stock was finally surrendered?— A. Yes, sir; I received it myself. Q. There is in the correspondence confusion, saying that the stock was '' handed in," being checked back and forth, and a statement in a subsequent letter that the stock " has been surrendered." There seems to have been a day or two interval. — A. That is true. Q. Can you explain that?- -A. The day before I commenced an exam- ination of the stock record, Huey came to the bank with the stock in his possession, but refused to deliver it until it could be showTi that there was stock outstanding which would cover the amount he had. I was engaged on it two days, and it was only the afternoon of the sec- ond day that I completed it. Q. Was that stock ever given into the possession of anybody by Huey for the purpose of having it compared with the stock ledger, or the stock book, prior to the time when he made the absolute surrender of itf — A. Not to my knowledge. Q. You did not have to check it back and trace the history of the various transactions!— A. No, sir; I was utterly at sea as to the general procedure. Q. Do you remember how many such certificates there were?— A. I could only guess. I think there was not more than twenty-five or thirty. Q. Do you remember whether any were issued to Lucas directly? — A. 1 am inclined to think not. Q. Do you remember the names of any persons to whom any one of those scrips were?— A, I do not recall any; but my list is in possession of the i'e(;eiver to-day. Q. And it was by that list that the stock was received and receipted for?— A. Yes, sir; I drew it from the certificates themselves. Q. Was any entry made upon the books of the bank with reference to this stock at the time it was surrendered?— A. No, sir; Mr. Drew proposed to cancel it, but I advised against it. Q. Do you know whether or not it has been destroyed f— A. I do not know, but I am sure it has not been; it was placed in the vault. Q. Do you remember wliether the number of shares surrendered by Mr. Huey accounted for the overissue ?— A. It did not, according to my transcript. Q. Do you remember w^hat was the difference between the overissue m 428 INVESTIGATION OF NATIONAL BANKS. ■ fc '.i: • I',;- lit:' 8hown by your transcript and the stock surrendered by Hueyt — A. I do not think it was shown by my figures as to the number of shares. Q. I call your attention to the fac?t that in Exhibit 2, of this date, there is a trial balance of the stock ledger of the Keystone National Bank, under date of September 30, 1891, and that it shows the over- issue of 270 shares. — A. Yes, sir. Q. Can you explain what that means? — A. I can not, any more than to say this, that the posting from the stub books had not been matle for sometime, more than a year, and I think it is more tlian likely that the stub books were relied uix»n i» this respect. The posting was brought up to date, but I do not know. Q. Do you remember whether it was the stock ledger or the stub book that showed the larger overissue f You have said there was a difference. — A. It was the stub book. Q. You may state anything ftirther that you discovered about that bank or irregularities in it while you were ther^. — A. Before I left it began to develo}) from day to day that persons charged with overdrafts did not owe the bank anything, and the overdraft account was largely reduced. Mr. .lones also called ray attention to the irregularities with respect to the duebill account and the expense account, into which a great many items were dumped. It can not be otherwise accounted lor, but I made no memorandum in any of those matters as they oc- curred. Q. You have heard of an item of some $400,000 or $500,000 due the clearing-house from this bank in January, 1891, and not included in the statement of the examiner made under date of January 24, 1891 f — A. Yes, sir. Q. While you were there, did anything develop with regard to the clearing-house certificates and the debt of the Keystone National Bank with reference to that item? — A. Yes, sir. I knew at the time what the debt due to the clearing house amounted to, and also the amount of the assets pledged by the bank to secure the loan ; and I also was in- formed as to the pledge of $1(M),000 of stock of the Traction Kailroad Company, I think located in Baltimore, as additional security — not for the loan, but for the daily balances against the Keystone National Bank. While 1 was there, a messenger came from the Clearing House Association demanding the return of a receipt which had been given to the Keystone National Bank by the association for this stock or bonds, whichever it was, and it was ascertained by Mr. Drew that the inten- tion of the Clearing House Association was to sell that security. The examiner said he knew no reason why it should not be delivered. Sev- eral i)er8ons sitting there said that the receipts should not be delivered, and turned to me to ask the question. I said, "No, because, jis 1 un- derstand it, that security was for the purpose of covering any more than it was referred to during an interview with Bardsley. At the bank Bardsley first sent over some one connected with his office to get a return of moneys deposited by him in the afternocm of March 10, and the examiner refused to deliver the money. He then came over him- self and insisted upon its return. He was not i)ereiuptory in his demand, but claimed that tlie money belonged to him, and demanded its return. During' that conversation 1 think some items of duebills were referred to, but not to anv account of his represented by the due- bill account. The only relation it conhl possibly liave had would be to the duebill account carrie. Who was this person whom he thought had wrecked the bank .— A That was not discussed. Q. You never heard the name of any person in connection with thati —A. No, sir. Mr. McFadden never mentioned anyone, but he wa^^ very piofane in si)eaking of the rascals. ^ t», ^r , « * q. Did he make these remarks in the presence of Mr. Marsh?— A. Yes sir (/. Aiid was a re|>ly made to him by Marsh in any way?— A. No, sir. That would be one of tlie times when he wouhl be still. Q. Was anything said which would enable you to surmise as to who V m Hi J ' i; '■\ 430 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 431 r I' '11,". I ,;; li i m 3 '.rh l,;r H 'ill had wrecked the bank! — ^A. Well, Mr. Marsh laid a great deal of blame upon Mr. Lucas. Q. Was there anything said to you, or in your presence, by which you were enabled to identify the person against whom these gentlemen were making complaints? ^Ir. IJiiosii s. That can be answered yes or no. If it is answered yes, you can ask him further. A. No. The Chairman. Then you were enabled to form no oi)inion as to the person whom these gentlemen connected with the bank and its wreck- ing from conversations which you heard f A. 1 would like to recall the i>recise words which I heard Mr. Marsh use with respect to his knowk'dge of his inheritance. It was to the eliect tliat he did not know of any misuse of the; stock beyond a cer- tain number of shares, and that afterwards he found tlmt there was more that had been so used. That was the imly individual wlioso name was mentioned in my presence as being directly responsible for the condition of the bank. By 31r. Spekry : Q. You say that there was nothing that would indicate this Bardsley deposit! — A. There was no examination of that kind in progress while r<' ; and Mr. Bardsley, in his conversations, never claimed except that portion of the money Avhicli he deposited before ge I was then any tiling ex the bank closed. Q. He deposited it immediately before the closing of the bank, and therefore claimed it on the ground that the bank had failed wlien he put the money in? — A. On the ground that it did not fairly enter into the transaction of the bank while open. Q. This deposit of $900,000 was not known to you? — A. That was never mentioned. Q. Was there anything in the bank to indicate that that money had ever been in the bank? — A. No one spoke of it; and, so far as I knew of the accounts, it was never known. Nothing of the sort was ever mentioned to me by Jones or Drew. Jones was working there. Q. You were working at the bank, and had the custody of the bank funds? — A. I was assisting Mr. Drew as to (piestions that arose respect ing Drew's duty. I think Drew never had before then been in charge of an insolvent national bank. Q. Were you assistant to the examiner? — A. I was regulating mat- ters relating to the receivership. Q. What did the examiner do when he ascertained this? — A. The ques- tion did not come up. The only thing 1 knew was what was told as to Bardsley's account. He had more than $400,000 on deposit in that bank, which was in excess of what he was permitted to have under the law in a single bank. Q. Does anything appear as to what became of that money? — A. Tt was said that he made that excessive deposit to assist the bank, and the question was discussed somewhat as to the manner in which Bardsley was enabled to make nis reports. It was shown that he had more than the statutory deposit in the bank. Q. How much was it; you say $450,000?— A. My recollection is it was supposed to be $100,000 more than the $400,000 allowed under the statute. The Chairman. Four hundred thousand dollars was the statutory limit. ByMr. Sperry: Q. At whose solicitation did he put the money in?— A. That was not disclosed. I heard no talk as to how that came about any more than by an arrangement he deposited these moneys on the day before the bank closed, in order to help settlements with the clearing-house, thereby exceeding his limit. , , i Q. Did you know whether the $200,000 note of Mr. Wanamaker had been paid?— A. Mr. Drew informed me as to the $200,000 Wanamaker note, and said that when he discovered it he had visited Mr. Wana- maker personally, informed him as to the law, and requested hmi to reduce it, and that shortly after it was reduced $50,000. I have no knowledge as to when it was paid. Q. Is there anything in the books to indicate as to when it was paid?— A. I do not know. I did not examine the matter. Q. Do you know whether it was in fact examined by anybody to ascer- tain that fact?— A. I understood from Mr. Drew that it was eventually paid in full. « * ^r Q. Mr. Drew was the examiner in charge?— A. Yes, sir. Q. Did he know when it had been paid?— A. If he did I donotrecol- Q. Were those notes in the bank when you were there?— A. I did not examine the bills receivable, and I had no knowledge of Wanar maker's paper being among the assets. « , ^^ . t ^-^ 4- Q. Did you see the note among the assets?— A. No, sir. 1 did not examine the assets, except the cash. * * xr • Q. Did it come to your knowledge that they were there f— A. JNo, sir. I am quite sure there was no such obligation of Mr. Wanamaker when the bank suspended. . , . .. ^ Q You did not in tact, then, assist Mr. Drew m making up the assets of the bank?— A. No, sir; except to explain to him how it should be done and that it should be done immediately. Q. Did you do anything except to advise him as to what his duties were? — A. Principally that. , ^ . , , Q. You did not take any hand in the bookkeeping except the draw- ing of the stock list?— A. No, sir. ^ , * Q. And you did not take any hand in marshaUng the assets?— A. N^o sir Q. You did not look into anything in regard to the correspondence of thebaiik, or anything of that kind?— A. No, sir. , , ^ ,, ^ , Q. How came you to single out and have special control ot the stock account?— A. It was in order that they might be surrendered and the demand of Huey be complied with. « * xr Q. You had immediate personal charge of that?— A. Yes, sir. Q. Mr. Drew did not have anything to do with that?— A. He was anxious as to the result. . . „ j Q What was Drew doing there?— A. He was continually engaged in conversation with creditors of the bank, and principally with refer- ence to the plans of resumption. . , ^ Q Did Mr. Drew attempt to marshal the assets m order to ascertain what the condition of the bank was?— A. Mr. Jones had received in- structions to commence preparation of the schedules at the time i lett., but no considerable progress had been made. Q. Mr. Drew himself did not undertake that?— A. Not personally. Q. What was Jones doing; assisting Drew ?— A. He was m the posi- tion of general bookkeeper and had been there for two months. f 432 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 433 lit'- Q. Was Mr. Drew attempting to ascertain what the actual condition of the bank was Avhile you were there? — A. Certainly. Q. Was it completed before he left! — A. No, sir; not in detail. There were figures made by him from time to time to exhibit to those pers'■ W. p. Drew. •i' k 1, rH II ''-I M ''■ B :V 1 1 1 J 1 ■»! 434 INVESTIGATION OF NATIONAL BANKS. Philadelphia, May 5, 1887. Dear Sir : As the time is near when I may expect that your son will leave me to enter upon his new position in the Western National Bank of New York, I have thoujjht it my duty, as it is my very great pleasure, to testify to the marked ability and efficiency which he has shown in the discharge of the duties assigned to him as my assistant'in examining the national hanks under my charge. I need not state that I should be most happy to continue the relation now subsisting were I convinced that such a course would not interfere with your preferences, or with his best interests. While recognizing the satisfaction which his services have given me, I have, never- theless, refrained from encouraging him to remain with me, and have advised him to go to New York, provided a place should be tendered to him congenial to his desires, and in responsibility adequate to his abilities and experience. I have further said to him that I should be glad to have him return to me, if after a trial in New York he should find it advisable so to do. I am contident that his continued 8ervi(;es in his present capacity would be most acceptable to the banks here. Confidence in his abilities and discretion has w(m for him the unqualified regard and good will of all with whom he has come in contact. Fully appreciating the delicacy which you feel on this subject, I beg to suggest that the past efficiency of his services in the present relation, and the obvious adapta- bility for the work, ought, in justice to him, to outweigh any objections of that nature. I write this after no little deliberation, in the confident hope that you will believe me actuated by motives free from selfishness, either personal or official. Whatever his choice may be he will be followed by the best wishes of many reli- able friends he has made here, and by none more heartily than by mine. Verv respectfully, yours, W. P. Drew. Hon. W. L. Trenholm. Philadelphia, May 10th, 1887. Dear Sir : Your letter of the 9th inst. is received. I am greatly pleased at the prospet of retaining the services of your son, as I am persuaded such an agreement will be of much advantage to the receiver, as well as better for him, both as to duties and prospects, than any merely clerical position in a bank. I fear that i)erhaps there may be more misapprehension as to the probability of the Clearing House, offioially as such, taking any action toward securing his retention, as such a course, so far as I know, would be contrary to precedent on their part. An earnest exjiression of the advisability of his retention, after his satisfaewis, president Bank of North America. J. Pat- terson, president WcsUrn National Bank, and president of Clearing House Asso. of Philadcliiliia. S. M. Bell, presidiut The Far.iK r-; c\u\ M; ■h. Xat ional Bank. .1. Naylor, ]>r« sid(?nt Hittlitli Natfonal Bank. J. V. Watson, ineyi- dent Consolidation ISational Bank. I .Jt^ne Hth, 1887. Sir: Your letter of the Ist instant is received, submitting the name of my son, Mr. William Trei*holm, for my approval, as your assistant in examining the national banks of your district. I have given careful consideration to all that you have said in connection with this mattei, and also observe that a number of the bank presidents of Philadelphia have appended to your letter a recommendation of Mr. Trenholm, on the ground of their belief that he is fully qualified to perform faithfully and satisfactorily all the duties of the position. In reply, you are respectfully informed that in compliance with your wishes, and under sanction of the recommendation referred to, the employment of Mr. Trenholm meets with my approval. While I do not feel that I am either obliged or entitled to allow this gentleman's relationship to myself to stand in the way either of his employment or of your being acceptably and efficiently assistetl in your official duties, yet it must never be forgotten, even for a moment, that both you and he are placed in a delicate position toward this office, and that there will rest upon you both a constant obligation to so discharge your respective duties as to preclude all ground for cavil or criticism. Very respectfully, W. L. Trenholm, Comptroller. W. P. Drew, Esq., National Bank Examiner, Philadelphia, Pa. Q. Is there any further statement you wish to make in regard to the matter? — A. No, sir. Q. Has the receiver presented a <-laim apiinst you for this over- draft? — A. In last November I got a letter fiom Mr. Yardley, making a peremptory demand for $6,900. That was the first knowledge I had of any debt that Uowed to the Keystone Bank, and I immediately turned that letter over to Mr. Crawford, my hiwyer. He went and saw the re- ceiver. He told Mr. Yardley that if the bank had a claim against me for any money which had not been dei>osited, and against which checks had been drawn and paid, that 1 would settle it, but that I disclaimed owing the bank anything, and that I couhl prove it to the satiftiction of Mr. Yardley and the Comptroller's oflice. That went on until the pub- lication in a New York paper of my alleged overdraft, when my lawyer decided it would be necessary to let Mr. Yardley bring suit in the courts, and then I could be heard. He thought that would be a better vindi- (iation than I could get by a settlement outside. He advised me to dis- claim any debt to the bank whatever. Q. Is there anything further that you desire to say? — A. I would like to say one thing more, and that is that I have assisted in but three examinaticms of the Keystone National Bank. The first was in March, 1887; the second, I think, was in either October or November, 1887; and the third was in February, 1888. The following times that the Key- Stone National Bank was examined I was with Mr. Ferguson, a new ( 1' r ' ittmtm 436 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 437 m examiner in Baltimore. From there I came to Washington for some four or five days' holiday. In the following fall, when the bank was examined again, I was absent on leave in Washington; and m the spring of 1887 I was taken ill while helping in an examination of the National Park Bank in New York, which had been given to Mr. Drew. For six weeks I was in bed; and after that I went South for my health, by the direction of my physician. During that time the Keystone Bank was exanuned. In November I had resigned, to take effect No- vember 15, 1889. I was then in the South making arrangements to go into other business. I left on the 12th, and my resignation was accepted on the 11th. By Mr. Brosius : Q. You were a depositor in the bank at that time!— A. Yes, sir; I had an account there in Max, 1888. I had opened an account there and had then made my first deposit. • 4. x, » Q. Mr. Drew is the bank examiner and you were his assistant r— A. Yes sir q! Were you a resident hi PliiUulelphia at that time? — A. Yes, sir. At this point the committee adjourned. WASHINGTON, D. C, June 4, 1892. The committee having under ccmsiileration the investigation of the Keysttnie Nati I f- *i ; .1 ifittillPi 440 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 441 ii ary 0, 1877, a year and a half after it became a national bank, their (•a])ital was inipaired in the actual amount of $3,434.56, and that year tliey were actually carrying on their books the old real estate wliich tliey had been ol)liged under directions from the Comptroller to put in the shape of notes, the directors giving notes with the understanding, as is shown on the minutes of the bank, that these notes were not to be l)resented for payment and were not to be protested, but were simply to be put in there to (juiet the Comptroller of the Currency. By Mr. Walker : Q. I would like to know what means the examiner of the bank had to discover the fraudulent character of the bank at that timet The Chairman. To put it in proper form in the record, just state to us how you got the information which enabled you to state these facts in regard to this matter. A. It is written on the minute book of the bank. Q. So that the minute book of the bank showed that these notes were not actually the property of the bank, but were simply there with the understanding that they were not to be used or protested?— A. Yes, sir; 1 think 1 have a copy of the minutes. 1 tried to take that down very closely. By Mr. Walker : Q. Was it possible for the examiner to know the character of those entries? — A. Well, I got it from the minutes, and 1 made a note of it. Q. Is that a copy of the minutes which you have?— A. Yes, sir; I read the minutes of the meeting of the board, and 1 made my notes from the minutes. Q. You did not copy them in full, I suppose?— A. No, sir; this meeting, it seems, was called for June, 1870, but it took in the busi- ness from the beginning of the bank as a national bank. They held a meeting on the 7th of June, 1875. Q. Was that a directors' meeting ?— A. No, sir. It was a stockholders meeting, held just previous to the formation of a national bank. The minutes say that Mr. Lucas received 210 votes for director and failed of election. During the recess the bank was organized into a national bank. Then the next entry is the 5th of June, 1870, but there is no record of any meeting of stockholders to approve the transfer. The president reported having obtained the consent of over two-thirds of the stockholders to the organization of a national bank, and on July 3, 1875, received the certificate from the Comi)troller. On August 2, 1875, the bank began business, and on August 13, 1875, it surrendered its State charter. This is written in under date of June, 1870. At the beginning they had mortgages and real estate other than the banking house of $02,129.10. The Comptroller ordered them to turn that into cash, and that was not done, but $11,100 Avas sold at a loss of 10 per cent. The balance, which was $47,329, except $3,700, the direct- ors were carrying as bills receivable until the property could be sold. This was done in order to comply with the Comptroller's demands. Granville B. Haines was elected a director. Lucas was also elected a director by 92 votes. Lucas was not nominated by the committee. By the Chairman : Q. The minutes say that this real estate was held in that condition, and the only real estate they held was the banking house?— A. I think it was 80 reported, and it was that which the Comxitroller was com- plaining about. For this reason he forced them to sell. They found that that was the only way to do it. O On the 10th of March, 1870, the report of the condition of the ba^k showed that all of the real estate except the banking house had been disposed of?— A. That was probably done just previous to this ™ Q "so far as the minute books showed, that was the only way in which they had disposed of their real estate?— A. Tliat was all. Mr. DiCKERSON. All this could have been ascertained by reading the minutes in the book? ^ i 4. .. +^ A Yes, sir; there was no trouble about that. I wanted to try to find'the note here in which it is stated that these notes were not to be presented for payment and were not to be protested. By Mr. Walker : Q. Is a note of that clearly made on the record?— A. Yes, sir; it is made on the minutes of the board. The directors gave these notes to the bank in place of the real estate, with the distinct understanding that the notes were not to be paid or protested. ^ ^^ . ^, Q. Were those notes indorsed by anybody?— A. No, sir; they were the individual notes of the directors. ,,,, . ^ i ^ i Q. Made payable on time or on demand?— A. That I do not know. I did not see the notes. What I saw was what was written in the minute books and records in regard U) the notes. By the Chairman : O Did vou find any record of these notes anywhere else except on the minutes of the board?— A. I did not make a complete examination of the books for a record of these notes. , « ^ ^^ Q You did not find find them anywhere else?— A. No, sir. Mr. DiCKERSON. Do you know whether Mr. Drew's attention was ever called to those minutes? A. 1 do not. By the Chairman: Q When is the first national bank examiner's report dated— the one made bv Mr. Drew, or the report nearest to this day, ;Iune (,l»Jo— do you recollect?— A. They ought to have had a report just about the time tliat the bank came into existence as a national bank. Q In relation to this entrv of June 7, 1S70, when was the next exam- ination made?— A. I do not know. 1 have the dates of the examiner's reiM>rt, but not as far back as that. I found a note of that very clearly, but 1 can not put ray hand upon it now. Q. I wish we could get the date.— A. We can get the date ot it. Q. Mr. Drew was the examiner in 1870, when this bank went into the national banking system?— A. Yes, sir. Mr. DiCKERSON. Who made the examination ot the condition at tue time it went in?— A. Mr. Drew. By the Chairman: Q. Leaving that matter of the note— we caJi take it up later— was this real estate as you discovered it at the time, ever atter sold?— A. Yes, sir; the notations on the minutes at the time declared the purpose of selling small lots of real estate. , j u i. xv^ Q. Are you able to state from any examination you made, what the result of the operation, if any, was to the bank— whether the amount ■ r. ' ft i**« •» !! It* i: If m ! r iji! 442 INVESTIGATION OF NATIONAL BANKS. of the real estate was put into this statement? — A. The sale of that real estate was at a loss to the bank, so far as my examina/tion showed. Q. As to how much that loss was you do not know ? — A. No sir. Q. Did you ever see any evidence in the books to show that the directors' notes given for the real estate were entered as bills pay- able? — A. No sir. Q. Can you give us the date of the next stockhoUlers' meeting at which a report of the committee for examining the affairs of the bank was presented! — A. It was the 4th of February, 1879. A committee of three gentlemen named Wood, Myers, and Stuart were appointed in January, 1879, and they reported the condition of the bank. Q. Where do you get that from? — A. From the minutes of the bank. Q. Please state what the result was. — A. The items are all here. It is an itemized report, and shows the total assets at $331,095. The total liabilities were itemized at $264,510. This is leaving out the capital stock, making $66,579 to represent the capital stock. Q. The capital stock was $200,000?— A. Yes, sir. Then they stated that the bank building cost $90,000 and that $30,000 had been expended upon it, making it worth $120,000. There was an incumbrance on it of $60,000 in the form of a first mortgage. Tlie committee put an es- timate on the banking house of $93,000, whicli Avould leave $33,000, and leave for the stock about $100,000, or 50 per cent of its par value. Q. There was $60,000 to represent the stock, and the balance was put on the banking house to make it up? — A. Sixty-six thousand dol- lars was left over to represent the capital stock. Q. You began the examination at a later i)oint and brought it down ? — A. 1 only took the statements of the cashier, Mr. Wiswell, on the minutes as to those losses. The report of the committee is entered on the records of the bank in 1879. Q. At what point did you begin the examination of the bank regu- larly, so as to bring it down, and hunt up these various items? — A. December 31, 1882. Q. From that time out did you carry up the affairs of the bank? — A. I made a pretty careful examination from there on. Q. As far as possible, I suppose, the statement which you made cor- responded in date with the examiner's reports, or the rei)orts of condi- tion, as we call them? — A. Not always, because I desired to take state- ments at periods other than those at which they were called for in the reports of the bank examiners, because I found there was such a dis- position to falsify in those periods. I wanted to see if there was a period where they had no object in falsifying the books, so that I could put my finger on the points. Q. You made these examinations from the books of original entry yourself? — A. Yes, sir; without reference to anything else. Q. Supi)ose you take up seriatim the statements showing the condi- tions of the bank from time to time. — A. Well, I will take December 31, 1882. In the first place, before 1 take this up, I will say that I had quite a long conversation with a man who, by the way, was the man who did most of the manipulating on the books, and he stated to me very candidly that the worst of the work began in 1886; that he could have been arrested just as well in 1886 as in 1891 for falsifications of the accounts. I found that statement to be so. The report made in 1882 shows there were lalsifications, mostly in the individual ledger, of about $600. Q. What was the condition of the bank at that time? — A. The ex- aminer's report at that time 1 had not taken up. INVESTIGATION OF NATIONAL BANKS. 443 «'.^ Q. I did not mean the examiner's report, but what was the condition of the bank as to a.ssets and liabilities. Was it solvent?— A. I think it was solvent. The appearances were that it was solvent at that time, in 1882. Q. What were the assets and liabilities?— A. I have not the figures. My first discovery of its being really in a bad condition was in 1886. 1 took off a statement for September, 1886. Q. Go on with this report first, please. What is the next state- jnent?— A. The next is the report of July 6, 1883, which showed the individual ledgers had $1,155,80 less to the credit of depositors than was shown by the summaries. On July 23, 1884, there was $73,000 difference. That was the beginning of the trouble. Q. Where was that difference !— A. That difference was in John Lucas's account. There were falsifications in the account of Lucas, and he was credited on the books with more money than he really had. Q. So that the credits of individuals on the ledger at that time was $73,000 and upwards more than they were actually entitled to! — A. Yes sir q! And those credits were in favor of Lucas?— A. Yes, sir. I took the face of the ledger, and when I came to see Avhere it was I saw it was a falsification. The general ledger only called for $681,000, and the individual ledger $754,000, which made a difference of $73,000 in round figures. In 1885 it was $52,000. On October 1 there Avas $52,000 difterence in the individual ledger and $85,000 difference in the notes discounted that year. That is the report to the Comptroller of October 1, 1885. Q. You say there was $52,000 differeuQC in the individual ledger? — A. The individual ledger showed to the credit of individual depositors $52,000 more than was actually received. Q. Who had that?— A. Lucas. The notes discounted, as shown by the discount books, were $85,000 less than was reported on the gen- eral ledger as being on hand. The bills discounted called for $847,000 on the general ledger, but the discount book disclosed only $761,000. Q. The result was that they increased the assets $50,000 and odd, and reduced the liabilities?— A. Yes, sir; that was their plan. Mr. Walker. One complemented the other? A. One showed an increase of assets of $7,000 and the other a de- crease of liabilities of $52,000, which would make a difference of $59,000. That was October 1, 1885. By Mr. Dickerson : Q. Could not that have been easily ascertainable by an expert ac- countant?— A. No, sir. Of course, a person at that time would have to take the paper on hand and make a list of the paper to see whether it was what the general ledger called for. Q. It required a specific examination ?— A. Yes, sir. To take it down to this period is a long job. Q. Is it not the ordinary duty of an examiner in" ascertaining the con- dition of a bank?— A. It is the duty of an examiner to take every piece of paper, single-name paper, double-name paper, and all paper on which the names of the directors appear and make a list of them. Q. And base his judgment as to its character and value?— A. Yes, sir. By Mr. AYalker : Q. When a bank examiner goes to a bank is it not his duty to pay no attention whatever to any name of any nature, but simply call for ! I «««MiMMM*iiawrlaaBa3wiiMW ^ Hi ill Slur' ..'.liSL! 444 INVESTIGATION OF NATIONAL BANKS.' the assets of the bank and examine them, call for the liabilities and examine them, and see how the concern stands; and then, secondly, to see if the acconnts correspond to what he has ascertained? — A. Yes; that is what I understand. Q. If an examiner had done that at any time (or at the organization of the bank into a national bank) could he have failed to discover thatf Would he not have discovered the actual condition of the bank! — A. If a careful examiner had done that I do not see how he could have gotten around it. Q. You understand that as a business man I take my assets and liabilities, and I go to work to see if my bookkeeper has kept them prop- erly and whether his accounts agree with mine. — A. The bank examiner must have an assistant to take off the items. Of course they could be blinded and fooled right straight along. Q. How long, in your judgment, did some of these items appear, so far as notes are concerned, in that bank? — A. I think it is difficult for me to say, because there was a great deal of this paper renewed and carried on. Q. The notes being the samel — A. Yes, sir; from year to year. There is a note in the receiver's hands which has been carried since 1887. There is a note of Lucas given February 28, 1887, and that has been in the bank ever since. By the Chairman : Q. What was the i)eriod you were answering about? — A. October 1, 1885. Q. What was the condition of the bank at that time? — A. There was a detiidency of $5(),0(H). Q. Was the bank solvent then? — A. I think the bank was solvent, but very much in debt. Q. But the stock was impaired $137,0(M) out of a total of $200,000?— A. The capital sto(;k, I think, in 1885 was $400,000, and later it was made $500,000. Q. The increase was made in 1885? — A. Yes, sir. Q. Sin(*e we are upon that point, will you state, please, whether, from the investigation made by you at the time when tliis increase was sairevick, but bad received it prior to that time? — A. It had received a portion of it. Q. They had issued stock before that? — A. Yes, sn*. By Mr. Cox: Q. If that conditi(m of facts in the bank was shown before the stock was issued, why was not it in the bank as assets? — A. It should have been. The stock ledger and the stock book should have shown every issue of stock at that time. Q. But the receipt of this additional sum necessarily increased the assets of the bank, and although this amck is to show that all these matters had a beginning. They all began in small items and all gradually increased. The history of the bank shows that they had a gradual growth. ^ ^, • n Q. In additicm to this 40 shares, what is the history of the issue ot the 160 shares?— A. That seemed to be made on that 200 regular issue, except that when they approaclied a period in which they made a new issue of stock they overissued again. Q. They issued after that about $400,000, and they overissued again, 1 f '■ 4 «.;ir mmtmm 446 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 447 n and that was before they called for the $100,0001 — A. Yes, sir. And the secoud time the overissue was considerably more than the first one. Q. Bo you remember how much! — A. No, sirj but I think it was over 100 shares. By Mr. Dickerson : Q. I will ask whether you ascertained this from the records of tlie bank, or whether you were required to get the information outside ? — A. I was asked to get information from whatever direction I could. Q. Could you have ascertained these facts from any testimony out- side! — A. No, sir, I think not. Q. The examiners could have ascertained these facts from the books ? — A. I think they could have. The stock ledger that the bank had been keeping itself sliowed the overissue. By Mr. Wike: Q. Could you state how much! — A. No, sir, not now; but 1 will do so hereafter. I took it off and laid it aside. Q. You can not say just what tlie amount was that you discovered was first overissued! — A. I can not. because of the irregularity in dat- ing their transactions when they put them on this ledger. I tried to get at the dates when they did it, but all 1 found was 325 shares over- issued, which was not correct, for there was a great deal more than that. By the Chairman : Q. Go on to the next statement. — A. The next item I have here was October 7, 1880, which was at the time of a report to the Comptroller. Q. Eeport of the condition of the bank! — A. Yes, sir. The individ- ual ledger showed due depositors $1,391,000, and the general ledger showed the individual deposits due depositors to be $1,120,000, a differ- ence of $271,000. This is the first place where a large difference was shown. Q. You say you made this examination at the dat« of the report of the condition, or the examiner^s report! — A. Yes, sir; at the date of the report of the condition. Q. Were the figures you have given contained in the report of con- dition ! — A. The report to the Comptroller showed $1,153,000, which was $33,0(K) more than the general ledger showed, so that the report of condition was $240,000 less than the individual ledger showed as being due to individual depositors. Q. State what the condition of the* bank then was. — A. The notes discounted were reported at $1,208,000 and thi} difference was $404,(100. Q. So that the report of condition was $()SO,0(K) falsified there! — A. About $0(»0,000, I think, bc^cause the overdrafts by the ledgers showed that they only reported a very small amount, $1,500 or $1,000, while there were $57,000 in overdrafts. The bank was solvent at that time. Q. Upon the face of the books! — A. Yes, sir. Q. Take the next date. Any explanation you have to make you had better make in connection with your remarks as you proceed. — A. 1 will do so. On May 25, 1887, 1 took offthe balance simplyforthis reason, that 1 did not want it at a period when a report from the Comi)troller was called for, but this was a period in which they w ere changing the method of run- ning the individual ledgers. They clianged it from two books to three, taking part of the accounts from the two books and forming them into three books. At that time they put into the bank a new bookkeeper on one of these ledgers, a man who has since been under indictment, and it was necessary for me to see where his work had begun. I there- fore made quite a critical examination at that period. I found by the individual ledgers at that time there was a difference Q. There was a difference between the individual ledgers and the Q-eneral ledger!— A. Yes, sir. There was a difference between the in- dividual ledgers and the general ledger of $447,000. I give these fig- ures in round thousands, and am not going into the hundreds and dollars and cents. The individual ledgers actually showed more due to depositors by $447,000 than was shown by the individual deposit account of the general ledger. Q. With that correction made, what would the general ledger have shown the condition of the bank to be as to its solvency! Was it sol- vent or otherwise!— A. That difference I did not at that time know in consequence of the fact that I took off a statement October 5, of the same year, in which I went into that. I found a good many pages were torn out this year. In one ledger there were accounts to the amount of $12,158.30 torn out. Mr. Brosius. Were the pages numbered! A. Yes, sir; the pages were all numbered in the ledger. The Chairman. Go to the next date. A The next was October 5, 1887, at which date there was a report to the Comptroller. On that date I found $247,000 difference in the individ- ual deposits ; that is, that the actual amount as shown on the individual ledger as being due to depositors was $247,000 more than their sum- maries called for. Here is another difference in this year. Their state- ment to the Comptroller at that time was $164,000 more in the individ- ual deposit account than was called for on the general ledger. The in- dividual deposit account on the general ledger only called for $1,089,000, while the individual ledger called for $1,572,000, a difference of $483,000, while they reported to the Comptroller at that time $1,254,000, a dif- ference of $318,000 between what the individual ledger showed and what the report to the Comptroller showed. By Mr. Cox: Q. I want to get at this if I can. When this contradiction in these books first appeared, and your attention was first directed to it, one shoAviog one thing and one another, what was the date at which that appeared!— A. The first date at which that appeared was in 1885. Q. Did you not state in your examination of this matter, and when you discovered it, the examiner was present!— A. The bank examiner? Mr. Cox. Yes. . The Witness. No, sir; the bank examiner has never been with me at all. By the Chairman : Q. In regard to this statement of October, 1887, what other difference did you find!— A. That was the only matter I was able to work out at that period. j ,. . , ..• • a Q. Did you make up a statement of the assets and liabUities !— A. Not at that time. October 4, 1888, I did. Q. Is that the date of the report of condition made to the Comp- troll or? A. Y'es sir. Q. State what the differences were at that time.— A. The individual ledtrer called for $1,443,000. The report to the Comptroller was for $1,217,000, while the general ledger only showed $1,182,000. Q. It will facilitate our progress if you will give us the different • 1 :4 n 448 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 449 «j ■ ■ W! Wl 'W amounts upon the individual and general ledgers as you proceed, the amounts vshown by individual deposits ? — A, The account on the gen- eral ledger was $1,182,000. Q. Give us the ditterence? — A. The difference between the general ledger and the individual ledger was $261,000. Q. Less on the general ledger than on the individual ledgers 1 — A. Yes, sir. Q. How niuch less was the amount reported to the Comptroller than was on the individual ledger? — A. Two hundred and twenty-six thou- sand dollars. Q. Was there any other difference that vou figured outf — A. There wa.s $172,000 in overdrafts. They reported $40(».25. Mr. Walker. There is a material question there. Why could not the bank examiner have discovered that if he had attended to his duty fairly well; not if he had had suspicions, but if he had used reaij^onable accuracy and integrity! The Chairman. Before we go into that let us finish this one item. The different overdrafts, as shown by the report of condition and as shown by the books, was in favor of the bank, so as to give it more assers. « A. It was better for the condition of the bank. If they had re])orted to the Comptroller $172,000 overdrafts they would have been (tailed in question. Q. On which side is that shown? — A. On the side of the assets. Q. So that it really diminished the assets by that amount! — A. Yes, sir. Q. And they had already diminished their liabilities? — A. Yes, sir. Q. By showing less than the actual amount due! — A. Yes, sir. Q. Would there have been any difficulty in an examiner ascertaining this discrepancy? — A. I do not think there would. Q. Either as to overdrafts or as to the amount due depositors! — A. If any competent man had gone over the accounts I think he would have found that. I do not see why he (;ouUl not have done so. Mr. Cox. You say a "careful" man. Cimld not any man who could count figures have discovered this discrepancy? A. I should think so. We take these as the face of the ledger with- out altering anything. By the Chairman : Q. Did you get at the condition at that time? — A. The difference in the notes discounted were $:5()2,000. The report was $1,318,000. The general ledger showed $1,313,000, while the notes discounted, as I wprked them up, showed $050,(KH). Q. So that they were overstated there how much! — A. Three hun- dred and sixty-eight thousand dollars. Q. In what condition did this leave the bank! — A. Over $000,000 deticienc^y. Q. That is not putting in the stock as a liabibty? — A. No, sir. Q. That sliowed that the stock was wiped out, and the concern was $100,000 worse off than nothing ? — A. Yes, air. There Avere seventy- two pages torn out of the individual ledgers at this period. That is the first time when any considerable number of pages disappeared. Q. And you have stated in some cases pages liad been torn out and put back! — A. That was not done until 1800. Q. These were never jmt back?— A. These were gone. Fifty pages were gone from the ledger, 11 to O. Among the cases of discrepancy I found in the ledger, H to O, where the general accounts of the Lucas family and Marsh were kept, that they were the books which were the worst mutilated. Q. Take the next. — A. The next is September 30, 1880, when there w as a report to the Comptroller. Q. State what was the actual situation theii. — A. They reimrted to the Comptroller — at least the difference between tlic* individual deposit iwcounton the general ledger and what was due indi\idual depositors, as shown by the individual ledger, was .f 801 ,000 at that time. Mr. BROSIU8. A moment ago the chairman asked the witness to [jass the aggregates. I think we ought to have the aggregates in the record. By the Chairman: Q. Oive us the total amk off the mouth after. Q. You did not ascertain the actual condition of the bank at that time? — A. No, simply because I did two weeks afterwards. Q. What is the next one? — A. The next point was October 10, 1889. This I made because it was a point at which the bank examiners liad tiiken the balance sheets made out by the bookkeepers themselves in their own handwriting for this period. They gave the bank examiner this data, from which he made up his reports. Each bookkeeper made up his balance sheets, and the examiner took those as his guide. So 1 made a critical examination at that period. Q. Give us the results while we look at the sheets. By Mr. Cox : Q. When those individual sheets were furnished to the examiner, and he made up his report, did he report entirely on the, sheets fur- nished by those bookkeepers? — A. This is the record of indi%'idual de- posits. Q. There was no examination in that at all? — A. Xo, sir. By the Chairman : Q. State the result as we take up these sheets. — A. At this period [examining sheet] the individual ledger called for $1,669,000. Q. That is, that was the amount due depositors according to the individual ledger. What did the general ledger show? — A. The gen- eral ledger at that date showed $1,137,0(K). Q. And the difference is how much? — A. The difference is live hun- dred and thirty odd thousand dollars. <^>. What is the difference there? — A. The Ijank examiner's report was $1,137,000, and the books were $1,137,000, the same as the general ledger. Q. That was the report of the balances on the general ledger? — A. Yes, sir. Q. Co to the item of overdrafts. — A. The overdrafts, as shown at that time by the examiner's report, was $22,000, while the overdrafts actually were $46,114. Q. That was what the individual ledger showed? — A. Yes, sir j the actual overdrafts. Q. That was a difference of $24,000?— xV. Yes, sir. T then went into an examination of these accounts, account by account, on the individual 3792 29 I :' 450 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 451 ledffer at that time, having the sheets, aud I found these aecoiints had been manipuhited previous to the takiuji- of the balances, so that tlie face of the balances imniediatoly previous to the time tje balance was taken was manipulated on the ledgers to the extent of '^•^l^;!'***^- ^^. , Q. That is, the amount due depositors had been reduced $J1 < ,U(M» .— A. Yes, sir; making a total of $886,00(». ,, X 1 • i Q. There was a manipulation of $317,000. How was t uit done f—A. In various ways. In some instances, by making false charges. Ihey would post a cheek in an account for .tlO,0(»0, although no check was given. In another instance, they wiptnl out tbe thousands in the balance column. These halauces were put in lea^l pencd in the balance column, and they Avould rub out the thousands. As you can see, they would rub out for a week a space on the ledger as long as my finger, and later those amounts were again inserted. a x- * • Q. Was there any ditticulty in seeing those erasures^— A. ><»t in most instances. It was done in a shiviidy, careless sort ol way. VVe could see where the balance to a mairs account was dropped to the amount of Ji^-J^O. uu +k..o^ Mr. Brosii s. How could they add up those columns with those thousands gonet , ,, A This was in what was known as the balance column. It was never footed up. Those balances are carried. Every time they would reduce the balance column they would insert a check, and every time a de- posit was added the amount would be increased. The CHAIRMAN. Can you give us the earliest ne. Q Ycm found that the l)00ks showed amounts due individual deposit- or^'which did not appear on the sheets furnisheil you by Mr. Drew as having been the source of his information in making up those re- ]>orts?— A. Yes, sir. By Mr. Walker: Q. Is it customary for bank examiners to look over the individual ledger accounts in making an examination of banks?— A. Well, I Miink it is customary for them to take th<' h-dger first. By Mr. Cox: Q. If a bank examiner goes and makes out his report from sheets furnished by the ottieers oi* a bank, and bases his reijort upon those sheets, that is no examination of a bank at alH- A. Of course, the ex- aminer would judge of them. Q. But that is no examination at all— if I furnish you a sheet and you eopy it?— A. No, certainly. By Mr. Hrosius: (^. You have tohl how you deterinined that some of these leaves Avere torn out after the examiner made his exainiiiation, and that you thought some of them were torn out prior to that examination. Can you state what led you to thatconclusion .'— A. 1 found accounts missing. Q. That would indicate that it had been done subsequently to the examination * — A. Y^es, sir. O Have you any means of knowing when they were taken out, whether it was before or after?— A. I know when some of those were taken out. It was done .just i)rior to the visit of the examiner on April 9, 1889. By the Chairman: i). That you know by setting the last date upon the page?— A. Yes^ sir; and when the account wasjeopened. (,>. Taking October, 1889, which is the one we werer April, but I know that in ledger A to G some of the leaves for the April period were out. Q. You said vcai knew that. How did yon know it if this was the ril8 that had been torn out, and then I went back to the ledger and found accounts reopened rij;inal packa.u'C. In tlie bundh^ were these slieets. When we came to examine them we fbnml tiiese three bahmce sheets, each oni' of wliich is in tlu^ handwritin^n of a separate bookkeeper. Tlnit j^Jive us sonn'thin.ii' to wt)rk (ui. Q. State wh'at the sheet lias ears? — A. TJie total credit bal- ance is $415,120.4t>. The overdrafts are *l,07o.34, nniking the net credit $414,047.12. Q. It showed that nnu'h due to dejmsitors? — A. It contains a sum- mary which is suppose;5.(M;. showing a difference of $1,014.06. Q. Give the amount actually due depositors on that ledger at that date. — A. The A to G ledger gives the actual amount due depositors at $600,917.21, with -1^8,31 >0.s; J overdrafts, making $r»02,.")2(».a8, or $179,- 479.26 less on that ledger. It is only one third of the books. They manipulated the sunnnary to nmke the summary agree with this. Q. There was a book in which they kept the summary. Is that a correct statement of what the sunnnary shows? — A. ^o, sirj I have an exact copy of the summary of that datt;. By Mr. Buosii s: Q. W^liose work was that ? — A. The bookkeeper's work. Q. Who is he? — A. Mr. Maguire. Q. Where is he?— A. In IMiiladelphia. By the ('HAiiniAN: Q. He was indicted, but wasdisehargedon the grouiul that the prepa- ration of this sheet was not a jmrt of his otlicial (luty ? — A. That is cor rect. The summary is a small bo<>k. Just about this siz<' |indicating|. It is a little book, and opi'iis in this way | indicating!. That started with the total ])alance due individual depositors on that day. They then ent^^redon the other side, at nigiit, the total annnmt of checks paid individual depositois for that ledger. They entered the. <-redits on the right-hand page, and th«' total moneys received on that h'dger during the day and tbe ditferene** shows in gi'oss the total amount due tlepos- it^ors for that ledger. This is an exact <'opy, with the a Iterations,, inter- lineations, and evervthing else which ap[)ear on that page. This also shows that the first teller's checks were $189.;>32.47. The first teller paid $19,332.47, making $170,0t)0 that he abided to the checks, thus raising them from $19,332.47 to $189,332.47. whic^i reduced the iiidi- vidual deposits $170,(^)0. To show that they knew that, on the 24tli of October they arbitrarily stut) iu lead pencil on the credit side, simply making an interlineatiou with lead pencil. Those altera- tions, as I have made them, show exactly how the figures were altered: they show the alterations of the figures exai'tlj^ as they aj)X>ear on that page. ixvKSTK^A'riox or national banks. 453 By the Chairman : Q. Those were the bo()ks to which Drew had access? — A. Yes, sir; he had access to thos<^ Q. Will you look over that sheet which you haA'e producon the facc^ of tliese, and, if so, what they are? — A. Yes, sir. By Mr. 1)T< kerson: Q. Where have these papers been since you liave discovered them? — A. Under lock and ke> in my ]M)ssession. In answer to the chairnum, I will say that on this sheet tliere is only (me item of $3,000. There is an item of $124.80, which you will find in the thirteenth line from the bottom of the sixth column. By the ( ' H Ai r :m A n : Q. Here it is, $124.80.— A. Yon Avill tind that a "3^' has been nib- bed out, and it is changed from $3,1 24. SO. Q. What account is that? — A. That is the account of H. W\ Green & Co. You can see where the '*3" has been rubbed out. Q. It is rubbed out and not included in tlie total '! — A. Yes, sir. Q. So that there Avas $3,001) omitted arbitrarily on that sheet by lubbing it out? — A. \^es, sir. Q. Will you stJite Avhether there were other accounts at that time on the individual ledger A to G, wliich are not in tluit statement at all; and if so, state what ac<'onnts and what the amounts were? — A. 1 have seven accounts, amounting to $113,03.5.3.'», which do not appear on that sheet. Q. Take the next sheet. — A. The next is ledger !No. 2, the accounts of H to O, and this is the worst one of the whole lot. Q. State the total. — A. It shows a total due depositors of $507,- 668..">0. Q. What was the actual amount shown by the ledger at that date a9 due depositors ? — A. The actual annmnt shown bv the ledger was net $623,905.51, a differ«M»ce of $1 1 (>,237.(H. Q. Wliat is the differc^nce between the balance sheet there and the summary book? — A. They show the summary to be $508,414.95. Q. Is there any manipulation there? — A. On the summary for H to O they first manipulated the balance on the 9th, which they alter from $5(»7,000 to $562,000. They then entered their checks of the 10th as $103,000. lieally tln^ checks were $1 78,000. They therefore decrease the checks $75,(K)0, and they decrease the balance $5,000. That vir- tually makes an ci^arease in i)alance on that summary of $70,0(^0. But the figures arc altered, as I have already stated. *By Mr. Dickekson: Q. Did you ascertain this from the de])osit checks? — A. 1 had to go to the day's work for that. Q. You got it from the individual checks? — A. No, sir; those checks have been returned to the dei)ositors. 1 had to take the list of the checks themselves, ^lost of those checks have been retuined. By t he Ch Ai k m a^ : Q. This balance on the ledger, II to O, was pre]uired by the book- kee])er? — A. Yes, sir. Q. Do you know who he was? — A. His name was Frank Lawrence, a brother of Charles Lawrence, the assistant cashier. 1 J \ ' ; ;■ t t 454 IXVESTIGATION OF NATIONAL BANK8. Q. Have you examined that sheet so as to deteriniue what alter atioiis, it* any, have been made on it? — A. Yes, sir. Q. Give them to us, please. — A. There are a good many alt<*rations on that sheet. Q. Take the alterations on the tare. — A. In the first eohimii, the UUh from the top, you will find the amount of >'r»:U.2(>. That shouhl he $4,534.2(), which it was originally. That is the account of G. B. Haines & Co, Q. What is the iiextf — A. The next is in the second column, the twenty-third item from the bottom, which is j!«701.07. That should be $7,701.07. That is the account of . That correctly shoukl be $l,iU7:M). The 'Vl '^ is rubl)ed oti*. That is tlie ac count oi* William E. Krewstm. The next is in the fourth column, the fortieth from the toi). The item is |50;^.81. That slnmld be, and was originally, ^^1 1,503.81. That is the ai'count of Charles McFadden. The next is in the tilth column, the twenty-sixth item from the top, $727.r)0. Correctly, it is $4,727.50. Tliat is the account of A. L. Megil- ton. The figure 4 has been rubbed out, as you can see. The next is in the sixth column, the thirty-first from the top. The item is $418, and was formerly $(»,418. That is the account of I). 1*. Nichols. The next is in the sixth . That should be $0,090. By the Chairman : Q. What is the total?— A. $0.5,000. By Mr. JiROSius: Q. Did you discover these erasures and alterations of this sheet by an inspection of the sheet itself? — A. 1 did. Q. And you verified those discoveries T — A. Yes, sir; by going to the ledger, examining the sheet car<^fully ani)ly the glass? — A. I applied the glass. Q. You then found more omissions? — A. Yes, sir. B V Mr. Walker : Q. How many did you fail to discover with the glass that you sub- sequently found by comijaring them with the ledger^ — A. I discovertMl all. 1 exaniined all the sheets with a glass. Some 1 could see with the naked eye. Q. You found none except what you found with the glass? — A. ^'o, sir; not of that character. By the Chairman : Q. Will you ])lease state what accounts, if any, were omitted from this sheet that were in the ledger? — A. Tlu^re were sixteen accounts leftcmt, amounting to $47,051.75. They are as follows: Saiiiiiel D. Hottner $750. (K> < Jeo. W. Hopkins HO^J. 5S Virginia Jju'kaou, 3 per cent S^O. were in the letl-er?— A. Ihose accounts were in the ledger. ... +i ...^ a U Are there any accounts t(»rn out that do not appear tlitie.— a. There were torn out of that ledger HU pages, containing accounts amounting to $40,000, which 1 hav<* not at all. They were not on the ledger. By Mr. Dickeeson : Q. Could not the loss of that many leaves in a book have been de- tex?ted by an ordinary examination ?— A. I should think so. By the Chairman : Q. Take the next ledger.— A. Thv \w\t hnlger is P to Z. Q. Whose book is that?-A. That is the l>ook ot (diaries R. Lge. By Mr. Brosilts: Q. Where is he?— A. He is in Philadelphia. The Chairman. He w^as also discharged by the.indge. By Mr. Cox: Q. On the ground that they were not doing ofticial business?— A. It was decided that it was not then- duty. By the Chairman: (I Please state the amount of this statement and the ^li^crepandes.— A. This statement shows amount due depositors m ^^y^^"": ^^J,^^^^^^^ and overdrafts $7,040.12, making net due dep()Sitors '"^^I'V^^^^/^^- /^Jf summary at that time calls for -f 178,4 7l>.00, a ditterence ot only $31.10 Q Will you state wliether or not the summary shows evidence ot manipulation!— A. The summary shows evidence i)f manipulation to the amount of $5,000. The individual deposits have been raised trom $54 702 18 to $50,7G2.1,000. Q. Is the original in ink!- A. This is a precise copy. \N hen you see this naiie vou see an exact facsimile of the original. Q. Could not a man of ordinary skill take those ledgers and discover those things?— A. 1 do not see why he could not. * t ^i • i q. He could not fail of discovering those discivijancies.— A. 1 think not. By Mr. Brosii ^«: * (}. Did you have any means of discovering errors in these accounts that were not accessible to the bank examiner?— A. Xo, sir. •II 450 INVESTIGATION OF NATIONAL HANKS. By the ( 'haiuman : Q. Take that sheet, i)lease, and your iiieinoraiulum and tell ns what changes or alterations have been made on them.— A. By the books 1 tbuud due de])ositors at that date, gross, .t47r»,7;*,L'.41, oveidiafts $22,9r)r>.()4, a ditteieuee on th<>se ledgers of .lf'274,272.68. The sheet is elean. There Is no alteration on that sheet, and from mv examinatiou and from the absolute (orreetness and absolute want of* the slightest eeause, in addition, there are neither carry- ing figures nor the slightest alterations. Q. You think this sheet was copied from that?— A. Yes, sir: and there is $274,000 different'e between that and the ledger. Q. And the other sheet was destroyed? — A. Yes, sir. Q. Can you tell us what amounts have been left out?— A. The ac- counts left out amount to $S(;,00r».(;.S. They are as follows: L. 1). Kichardsou ^o Q(jq ()() J. astaiihop.' 1 "!!!!!!!!!!!!"!;; !!;!!!";; i^ocxux) C. W. Sttrlinjr, aj;.uit a->3. 01 Peiiuy-suvmgs tniul 76, (MM). 00 Lv/./.w V an I -eei- •joq -ui K v\a]sh. 1,000.(K) g- ,Y«l^''^^<^ 5,000.00 H. II. 1 ard, manager 24 1. 11 A. B. Sayer " 11 A. M. Sanford ^ ........ .V. .V.V. V l!(K) w. Strickland !!].!]!*!!!*!!.'*!!."!! g!oo M. E. Ward \^^ Petty baiames '--*-!! -!;i!!!!x;i;;;';!;;;i;;;i;;;; i,063!83 Q. What are petty balances?— A. They are small balances of parties who have ceased to do business. Q. What are tlie other changes?— A. The other principal changes are where the balances were correct on the ledger, but were lalsitied in the entry on the sheet by 000 The Pennsylvania Express ( 'onijiany ..!!..'*.!!.. 2 (K)0 Presbyterian Publisliing Company '. !'!....!!. •>' OOO Thomas M. Pierce .' ."..[][..]..[].. "^^ 000 J. W. Pepper ' " " * ' "' .^^/j c. F. Pettrick !!.'!."..'."'.;.* o \m J. J. F. Popp 9' ^^yQ J. J. Pyle ...........]...."..[ 5 000 J. G. Ramsdell !>' Q^r^ F. Reed, general agent r' (uyn Wm.Reed f. '''25 Reserved fund, G. T. O. T 10 000 J-^^^^^y V.V...V.][V."V. ..[[..[[" aim INVESTIGATION oK NA'nONAb liANKS. 457 Relief fund, O. of Amity $2,000 Ridley Building Association 2,000 Ridley Park Cold Spring Water Company 2, 000 J. Robinson 4» 000 ( i . S t ro n g - . 000 (j. Scattergood ^> 000 .1 . A. Shaw •">» 000 R. Steel .%000 W. B.Smitb 2,000 .J. K. Shoemacker 2, 000 E. Snider ^.000 I I* Twiddel I '^t 000 Shoemacker Piano Companv ^' ^^00 R. R. Thomas & Co '. -^,000 Kansas Loan & Trust Co 11, 000 Keystone Watch Club Co ^,000 .) . F. Turner ^^j 000 C. S. Turnbull 1, 000 Trimbl v, Hunt & Co 3, 000 Union Real Estate Co 1.000 H. VanBeil4& Co «, 000 H.Beare ^^000 S. Van Horn 1, 000 .T. Wanaraaker, exchange account 1» 000 Wanamaker & Brown 2, 000 W. W. Wallace - - - ^00 W. R. Warner ifc Co 3,000 F. W. Welton & Co 2, 000 L. R. Wanaraaker I? 000 W al 1 & Oc k 8 1 , Of M > C. H. Wallace 1,000 M. H. Weiner 1,000 Wendell & Smith 1,000 S. B. Wentz 1»000 A. L. Weatherell •'5,000 ^Vhitesides &. McLanahan 0, 000 O. Wilson 14,000 .J.C.Wilson 2,000 D.S.Wright ^.000 J. A. Wllbour i>,000 J. R. White "i.OOO J. T. W^oods '^OOO Richard Zeckwer - -. 1, 000 Making 57 accounts, with a total of 1^6. 100 By Mr. Dickerson : Q. Were these the names that actuaTly appeared upon the individual ledger? — A. Yes, sir. By the Chairman: Q. And the accounts actually appear upon this statement, but the thousands are left out?— A. Yes; 1 had better make a qualification. From the appearances on the face of this ledger it is possible that some of these balances may have been rubbed out on the face of the ledger where it is dirty, showing the appearance of tignres being put back in another handwriting than that of the bookkeeper. 1 took it just as it is on the face of the ledger. Q. Is that true of all these 58 accounts?— A. It is only true of some. A good many are not rubbed out at all. Some are ])erfectly clean. Q/ Does this rubbing out or erasure occur very often in correct bank- ing?— A. No, sir; but those ledgers for 1889 Avere the dirtiest, the most altered set of bank ledgers I ever saw. Q. Now, please get back to the statement. Is there any other alter- ation or manipulation of the figures shown upon that statement other i» • *i i 4- i :t ii I ^ 458 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 451) tlian you have testified to? You have jiiven the omitted accounts and tlic accounts in which the amounts have been altered. Are theie any others* — A. Those are the princi]>al methcxls em|>kn'ed on tins led«;er. They deducted the checks thai eanu' trom tin* cleaiiiij; lioust'. wliicli amounted to !1<22,0(K), redncinj- the balances previous to takinf»- oti the t>alances on here. They did not do that with all of the three, but only on two. This balance was made out for the close of October 9. They wcmld take the checks that came in on the morning of Oetobci- 10 as though thev had been i»aid the day before. Q. That altered the true balance by alxnit 55<2l».(M>0 on that led^^er?— A. Ves, sir. Q. The examiner's report of tin- amount (hn* depositors on that date, October 9, 1S89, is substantially tin* sann- as the footingsof these state „H»]Hsf — A. Yes, sir; and these other statements foot uj) substantially the same as the individiud deposit account in the general ledger. The general ledger ami the bank examiner's report are the same. Q. Is there anything else to be said as to the condition of the bank ? — A. Yes, sir; they maniimlated their general ledger. This is the period 1 spoke of where I found the two sheets. They had begun at the be ginning of the week ami ended in the middle of the week, and they immediately startetl a new sheet. Their new sheet began on the Sth of the month. The original sheet had been running up to the l(»th, but I f(mnd their old one. They left the new sheet for the examiner to work on, and he thought it was tin* original. (^ What are the . They left the footings as they were originally. The verification of the footings showed >«100,0(M> ditference. The balance sheet was out of balance .1<1()(),00(». They changed the balances of bills discounted, and did not change the deposit account until the following day, so that they were really out of balance $1(K),0()<). While it ai)pears on the face to be exact, it is out SIOO.OOO. Q. When ycm add up the column it is *10(),0t)0 out of the way?— A. Yes sir q! The bank examiner must have*tak<'n the footings as they were ?— A. He must have done so. By Mr. Walker: Q, There seems to be conclusive evidence that the bank examiner did not run those footings u[) at all?— A. That f 100,000 was replaced on the 12th. On the t)th they arbitrarily reduced the individual deposits $100,000. They also charged individual checks on the sheets as }??249,450.(;3, whVn really only $179,4.V.>.(>;5 were paid, thereby reducing the individual deposit account on the sheet, making a total reduction in the individual deposit account of *170,tKM). This they rei)laced by ar- bitrarily (^editing the sheet with .^170,000 on the 12th of O(;tober. They put it in the summary on the 24th. Q. Has this testimony of yours been published anywhere?— A. I have given it before a court exactly as I have given it here. I do not know that it has been published. Q. What is the technical name of the i)roceedings?— A. It was used against K. L. Maguire and A. Frank Lawrence and ('has. li. Ege, under the ed that out. But they put it back on the 12th of the month. ( )ne was done on the 12th and the other cm the 14th. By Mr. DlOKERSON: Q. These things did not occur on the ledger ?— A. They did not keep any ledger. By the Chairman : Q. They slipped one sheet out and put the other in plai'c of it?— A. Yes, sir. Those were made on the sheet, i was speaking of the gen eraHe(b»er sheet. These were made by (/harles Lawrence. (> In whose handwriting?— A. In the handwriting of Cl^arles Law- rence, the assistant cashier. Most of the changes on the ledg(4S are m his handwriting. , , . ... ^ . , ^ Q State what the situation of the banking association was at that date. Whatwas the condition of it?— A. It showed at that date that there was over a million dollars deficiency. By Mr. Walker: Q. How long before or after the examination ?— A. It was on the date of the examination. « By the Chairman: Q. 1 want to know whether it officially ai»pears in the re(!ord that these lists (;ame from the hands of Mr. Drew and were indorstnl by liim. 1 think the indorsements ought to go into the record to show that he has made calculations on them. . , , Mr. Dk^kekson. The witness said a while ago they were indorsed aud that they were received by Mr. Drew. The Witness. They are indorsed in the handwriting ol Mr. Drew. Here is the package in which they came to us. By the Chairman : Q. Please pass to the next one.— A. The next one is July.''.. t year?— A. Eighteen hundred and ninety. That was al so Q. What J ctii i — -T^. ^^'a the date of a bank examination. Q. (live the differences.— A. I found at that time thai t.ie gross amount due individual depositors was $1,742,000. i.v ' d' ♦•II 5ti 4C0 TNVKSriGATION OF XA'IIONAL HANKS. INVESTIGATION OF NAITONAL BANKS. 4 Q. From which ledger ?~A. The gross amount from the iiulividuiil ledgers is $1,742,000. There are $61,000 overdrafts, making the net amount due individual depositors, as sliown by the individual ledjier, t^ be $1,081,(K)0. ' ' Q. What did the general ledger show ?— A. The general ledger showed $1,081,000, making a difference of $599,708.;57. ^ Q. What did the examiner state at that time?— A. Jj« 1,081, 520.07, the same as the general ledger. Q. V\'hat other differences are there ?— There are false charges made on this ledger to the amount of $2(;i,0()0. Previous to the taking off of the balances the balances were reduced. Q. Where did you get that item?— A. By going to the ledger' and making my list. Q. Did you have Mr. Brew's list?— A. I have got his book. My as- sistant copied the work from it, we not desiring to use his book. Q. Who was Mr. Drew\s assistant?— A. His assistant was a man named Jones. Q. What is the difference between the actual balance and the bal- ance of Jones?— A. I make it $r)09,708.;i7, altlnmgh Mr. Jones's memo- randum made a difference (»f $185,403.02. J had been informed by Mr. Drew that there was a difference of $185,000, and he explains that the ledger was manipuhited in the nighttijue, and when he came ba^k the next day to recheck the work he found it all right. Q. Was there a Sunday intervening?— A. Yes, T so understand: it may have been the 4th of July that intervened. Q. You have the statement of the a<-count which was taken off by Jones, as Drew's assistant, and which Drew has furnished you ?— A. Yes, sir. Q. What does that show?— A. It shoNvs the original difference was $185,403.02. Mr. Payson. Does Mr. Barrett state that at the time Mr. Drew or Mr. Drew's assistant learned that there had been manii>ulation of the books ? The Witness. They have learned that since. Thev told me since of Lawrence/s laughing and telling them that he came down to the bank with Mr. Marsh in the night and that these alterations were made, so that when they came the next day they found that thev thought they evidently had made a mistake and that the ledger was right. By Mr. Dickeuson: Q. It was the same ledger that they had access to?— A. Y'es, sir. Q. Were these changed back again ?— A. I do not know how that was. Q. Were the erasurers made l)y scratchers ?— A. There are erasures or scratches of all kinds. When Mr. J.awrcuce went back and fixed them I couldn't tell. To give all the rubbed and scratched items and alterations would take more time than 1 would be able to give to it. Q. From your examination you tind there was a difference of nearly $600,000?— A. Y^es, sii*; exactly, at that date, taking the face of the books as they stood. Q. Did you check back this matter of Drew's?— A. 1 made an exact copy and I checked back by the copy. Q. Did you find the difference beWeen these statements taken by Jones and the balances as they appeared upon the ledger? I want to find out if you can give any explanation as to the differences between those statements of the accounts on the individual ledger and the one 461 The items you got? — A. Certainly; here is a memorandum of that, are deducted here on the A to G ledger. Q. There is a difference between yertain to the same bookkeeper. We were at tliat time working np the case for the district attorney. Q. ITltimately, as a result of this liguring of Jones and his exandna- tion of the acccmnts, the examiner made a report, as you know, which stated the items due deposit;ors was the same as it is stated on the gen- eral ledger? — A. Yes, sir. (). Y in several items and returning them afterwards. John Bardsley kept 462 INVESTIGATION OF NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 463 i ^ liii'ge l)alances, and wlieii they would till out balances they would ^o to work and rub out 10 and make it, for instance, $41(),0()() instead of $420,(>(X>, and so on. Q. Are you usinj:^ illustratioBs, or are you j;ivin<>- aetual transac- tions? — A. I am giving actual transactions. There were four items reduced at this period, and J!^4(),0(M» was returned to John Bardsley's account (m the 8th after the examination closed. Q. What other accounts are there? — A. Then for the H to () ledger there Avere leaves tf)rn out. The accounts show \NiuM'e they were pasted in. The accounts thus torn out amounted to }!<1-<»,0(K), and one account, >i«71J7t).lH. Q. Were those charges of cliecks? — A. Those were false charp's of checks ? Mr. DiCKEUSON. They charged ajiainst the indivi. Did those false charj^es continue? — A. No; they were, restored on the Sth of Januarv. i). Of conrse, I take it, there was a column showin<;' wliere tliese matt4*rs were poste*! from? — A. There nev<'r was anything; t{> show that. Q. They never liad anything; to show wheic the items came from? — A. No, sir; except in cases of loans and ..)3. i«'^^^ as a false balance at that time on the face of the ledger i.rr:t.K),m^ being a savings-fund account in which the balance of $o0,0<)5.8i xxas wi ed out or deduced by rubbing out the figure 5 That was returnej Iv addinff the 5. That covers most of the matters of July 3, with the eSion c)f the destruction of the pages. There are 28 pages entirely gone, besides a great number which were torn out and pasted back " There are 28 pages gone entirely. Q How inany pages torn out were replaced, as near as you can teiif — A. I have not that data. xU this point the committee t0 due dei)Ositors. , . . * i-^- f ^-i"'.)oM.>1.38 Xmv the report to the Comptroller <-alled for individual deposits of il '-2,00r».r)4, with overdrafts of * 1,031.24, making a net due dept»s- iWrs of .f 1,220,404.30. Now, there was a ditlerenee between the indi- vidual ledg<'r and the indivichial account on the general ledger ot J^.538,000; ^rnd there was a diiference between the mm ividual ledgers and the report to the ( Vmiptrolb'i' of nearly S.mO.ooo. Q. The amount due depositors on the individual ledgers l»eing that mm.h greater than repented ?- A. Five hundred and ^y^^;^^]^;]^^ thdlars. Now, with their notes discounted, they reported to t he < omp- trolie, notes cm hand .^,157,000. 1 can only t^n.. ^'^-^^ding to the books, $84r>,0(K) on hand, a diiference there of an *>\;;^-^*^ ^'"^f;/^,, naner of $312,0(M). That would make altogether a timereiice m the Es of ti^e bank; between those two, of nearly $0OS )00 in the condi- tioii oftlu' bank. O. That is, the A. The ovcrstatcineiit ol asst-ts. Q. And th.. undorstaten.ent of lial.ilities t..gvther. ""'ki"S a adof the February 28th report. T find I got my paper into the wrong package. It is of the date of January 24 instead of the osing of the bank building, and they put a valuation on the bank building of $225,000. They credited that valuation. They had not received the, miMiey for it, but they credited that valuation on their geneial ledger sheet arbitrarily, as if it were a deposit, $225,000, and charged it to bills discounted. Q. I see.— A. That is, virtually put back into the individual deposit account, as it ^ere, $225,000 which they had erroueouslv taken out some time before, and tried to straighten up the matter with the bills discminted. Now, the sale or transfer of tli<' property was made, 1 think, the 9th of January, when they niade the arrangement with the estatii of Mr. John C. Lucas Tlien the settlenn'nt was made with the bank in which the estate turned over — the estate of John C. Lucas turned over to the bank that building at a valuation of $225,000, INVESTIGATION OF NATIONAL BANKS. 465 and the Sea Girt Land Improvement and Spring Lake Beach Im]»rove- ment Companies' stock,— the total, the Bank building and that together considered at a valuation of $561,000, and considered as Mr. Lucas's indebtedness to the bank. They later sold that bank building, and received $175,000 for it from Mr. AVeightman. Well, that is a loss on the valuation they put upon it here in the books. By Mr. Biokebson : Q. Fifty thousaJid dollars? — A. Yes* the Sea (Jirt anank, $50,000; tklse credit. Traders' National l>ank $28,000. The Witness. Loss sustahuMl on sale of bank building, $50,000; on o, sir; this does not inchide the capital stock at all. It sim|)ly takes the habdities and assets that you 2r>,000 duebills due elohn Bardsley. The Chairman. [Examining printed volume of testimony. | I do not tind any statement of liabilities scheduled here by \aidley as yet. Where is the $1KMMMK) ? The Witness. 1 copied this tVom the list 1 found there— the written list of the bank— where it was put in, '' Duebills in dispute. John Ilanls ley, $925,000.'' I made my copy trom a written list which was in the receiver's hands. . i .^ ^i Q. I want to get that. That is not the way it is rei^orted to the Comptroller. This lexhibiting volnnie| is a copy ot his report to the, Comptroller.— A. This is the way I copied jexhibitiug copyj; $2,720,070.43 is the total footing 1 have in my book. Mr. Payson. What is the amount of the J<>hn Uardsley The Witness. $92r),0(M> even m(»ney. By the Chairman : Q Now, without the Bardsley matter the bank still would have been iusolvent, would it not i its capital would have been entirely absorbed, according to this?— A. That wcmhl have shown $1,801,000 liabilities against $1,771,000 assets, showing ab^mt >«30,(M)0 deticit: antes IVom the receiver as he gave it to me. ^ (^>. Without the Bardsley business at all, the bank would have b<'en $.{0,000 short of paying its liabilities to outsiders, to say nothing <»f its stock?— A. Y<'S, sir. , . ^r Q. The stock would have been wiped out : — A. Yes, sir. Q. And it would havi' been $;iO,000 in debt?— A. in these assets are $153,t)12.01 of worthless assets, which the receiver reported to the De partment as worthless, which still remain upon his schedule as worth Q. What character were those?— A. Ohl overdrafts, old notes, in- debtedness to the bank which was uncollectible entirely. Q. How^ hmg had the bank l)eeii holding them?— A. Some ot them a good many years. .. i_ • i Q. Things whi<'h ought to, in the regular course of business, have beeii <-harged oil and not carried in the avssets of the bank ?— A. Yes, sir Then there were doubtful assets of $006,002.48, also in paper and overdrafts, which the receiver has not collected. These figures (the $990,092 doubtful assets) 1 took from liis statement here of recent date as what is uncollectible at a recent date, taking out what little he may have collected. , , .„ nix- m ^ Q. Now, Mr. Barrett, there were $025,000 duebills called tor. Those duebills were of the cliaracter you have described, payable through the clearing-house one day after their date.— A. The date following issue Q. Have you any list of those duebills with the dates and amounts on them?— A. I have; yes, sir. . , .. ^ ^ * O Won't vou read it so that the stenographer can take it down ?— A. The first one issued is dated February 8, 1890, for $25,000. The bank re- ceived for it a check of John Bardsley, No. 31, on the Seventh National Bank of Philadelphia, and that check was paid by the Seventh Na- tional Bank through the clearing-house. On March 1, 1890, they issued Mr Bardsley two duebills, one for $250,000 and one for $75,000, mak- ing altogether $32o,(K)0. Mr. Bardsley gave them a school warrant ot the State treasurv for $300,000. The reason why they gave him the due- bill for $325,000 was this, so Mr. Bardsley explained it, that Mr. Marsh came to him and begged him for money; said they were very short m their settlements with the bduks and that they must have some money, and made him an ofter voluntarily that if he would deposit with them that year $500,000, guarantee to do that, that he would give him a bonus of ^ " '' " " " ^-"' '" -^^ "^'-^ '^''"'^* se lU juni;c«iiii-i»_'i»«-'J. -••■'-'.7 ^-'•^-^— — -^ 1/ e-- ''rv'^t 1 'M each, which are indorsed on the back of the $250,000 duebill. Q. $225,000?— A. $250,000. The $250,000 and the $75,000 together make $325,000, for which he gave them only ^^^^^^N**^^^^- .^^^^^^^^^^'^l^-;! these payments were made to him they issued a new duebdl tor f L,.» K» each time. The duebills which they issued to him were torn trom the back of the book— the back of the duebill book. A stub was left; no memorandum attached to it at all. If it had not been tor the fact that 1 obtained transcripts of Mr. Bardsley's private mejno- randum we never would have been able to trace them througa the Key- stone Bank at all. There was no memorandum or any charge made 'i)f that $2j500 on any* books of the bank. Tlie>; gave him $2,oOO ^, ■ 468 INVESTIGATION OF NATIONAL BANKS. a ujontli for ei^ht roiisecutive moutlis. They also paid him .!!il,000a moiitli for t]w use of his accoiiiit. Tliey also paid hiin interest on eertain loans, shoit time loans. These were |>aid sometimeji in eash, bnt ahnost always in due- bills; and there was not the Hrst eharge on the books of that bank of a single paper. They would simply tear a ,00() into the bills discounted. On May (>, 1800, they issued a ??50,(MK) duebill and received from Mr. Bardsley a check, No. lir>, on the Manufacturers' National Bank ot Philadelphia. That one was ])aid through the clearing-hcmse in the usual way. That duebill is credited to bills disccmnted also, instead of to the duebill account. On July 24, ISOO, they issued to him a $50,000 duebill, and received i'roui Mr. Bardsley a check, No. 42, on the Seventh National Bank. Thar clu'ck was paid through the clearing-house. On July 28, 18<)0, tlu-y issued to him a duebill for ><50,000 and received his check, No. 4;J, on the Said through the clearing house. Now, on Hei)tember 5, 1890, they issued to him tour duebills, one of {!f70,000, and three of $50,000, making $22(),0(H). They originally issued to him, 1 think it was the day luevious or the day after that, a duebill for two hundred and twimty tlnmsand four hundred and seventy six dollars and some cents. There was found in Mi*, liardsley's private\)f!ice, after he was arrested, uiuler his pad, three or foui- blank duebills, and it raised, naturally, considerable question what he was doing with the blank duebills. Mr. Bardsley explained it in this way: He said that Mr. Marsh came to his otiice on the 5th of September and brought over eight Wank dueliills with him and begged Mr. Bards- ley to cut up the large duebill into eight small duebills. Mr. Bardsley refused, but finally they agreed, or Bardsley agreed, to take four due- bills at least for this large one, and that Marsh must have accidentally left the blank duebills there. That was his explanation; because, he said, he, Marsh, had eight duebills with him; that he filled up INVESTIOA TIOX OF NATIONAL BANICS. 460 four in his office, which are representc^d here, and which Mr. Bardsley now^ holds. FTe took ]>ack with him the .,000. They had this draft on the Farmers and Mechanics' Bank, and they needed money right away. They were short. They went to the Third National Bank and obtained from the Third National a clearing-house certificate for $10(),(M)0 and the Third National Bank duebill for $120,000. With that clearing-house gold ceitificate it helped them t^ meet their indebtedness at the clearing house. On October they is- sued to Mr. Bardslev a duebill for .*50,(MM), and received his check, No. 203, on the Keystone National Bank. That makes the whole $945,000. By the Chairman: Q. Did Mr. Bardsley obtain $50,000 of the Keystone National Bank at that time? — A. He did at that time. Q. So they merely transferred it from his general account to the due- billt — A. That is all; yes, sir. Q. Now, with regard to these duebills; there was no record entered upon the books of the bank anywhere to show anything about the re- ceipt of this money and the giving of these duebills, was there! — A. In most of the instances these duebills were duebills torn from the back of the book. Q. Yes. — A. In many of the instances they were credited on the gen- eral cash, under the head of " duebills," appearing in the due- bill account; in some instances in the duebill l)ook, while these were torn out from the back of the book (duebill), yet in the regular running stub the amount would be entered, $25,(K)0, iVu- instance, without any note as to what $25,000 it was or w hat it was for at the end of the day's \> ork. But in some instances they were not credited to the duebill ac- count at all. As I say, in the larger number of instances they were credited to the duebill account. Now, their duebill account conse- quently showed, or should have shown, an immense liability on accimnt of duebills. To get rid of that liability they charged off; arbitrarily, at ditferent times different amounts. In two instances they charged off' *200,000 each time to duebill account, arbitrarily crediting the am or $160,000 at times, but at this time they ]iai)i)ene(l to ])e Q. Dovourecolleethow thatwas?— A. That $104,0(K)? Q. Yes.— A. That 5^101,000 was carried in cash througliout the whole year from his death. He died in 18S8. The eheck he issued in 1SS8 before he died was carried in cash all the way through until the settle- ment. Q. Do you mean to say that in order t(» reach the cash balance shown by the examiner's reports anil the reports of c(mdition that >j< 104,000 was steadily counted as though it was money?— A. ft was steadil> counted right there. The teller's own cashbook shows it right there. Q. Suppose the examiners had started to count the cash?— A. 1 have no doubt when the bank examiner showed his iVice in the inside door they slipped a boy out the back door and got currency to ])ut in place of it. It ai)pears on the day i)revious and the day following. It van- ishes that day. Q. It appears on a book the day jnevionsf- A. On what is <'alled the teller's cash settlement. Q. That was a book that Mr. Drew had access to; therefore, any ex- amination of that, reaching back a day or two, either way, from any of his prior examinations, would have developed that $104,000f — A. Not only that i Q. Would it have developed?— A. ltw(mld, yes,8ir. And also in this. The first thing that led me to notice that was this: The first item 1 came across was an item of |18:{,000 which I noticed appeared on this teller's cash settlement under a printed heading, '^clearing house gold certificates;" and under that heading it appeared, without change in amount, for nearly a year; I don't know- but a year and a half. Now, I knew that a bank as short as that bank was in 18S0 — as short as it was then known to be could not carry $18:5,000 in gold clearing-house certificates. Furthermore, 1 knew that it was an im- possibility for gold clearing-house certificates to be of that amount, for they were only issued in denominations of 15,000; no other denom- inaticnr; and you r-ould not make *183,000 out of denominations of $5,000 to save your lite. 1 sent for tbe teller, the tbrmei- teller of the bank, and I showed him this amount. I said to him, ^' Can you explain thatf What is it?" "Well," he says, *'that represents some checks of rfohn 0. Lucas. Those checks were turned over to me when Ifirst took the teller's desk fromMarsh, away ba<-k years ago." Says I, " Did Mr. Marsh turn those over to you f He said,*" Yes ; 1 protested, too. I did not want to carry those as cash. Thev had them in the cash and turned them over to me at that time." Then 1 said, ^' What were those checks?" and he says, " One of them wa^ abcmt 8104,000 and another one about $18,000;" I don't remember the full amount. Says I, "What became of them?" "Well," he says, "J carried them along." Says 1, '^ \Vhat became of them eventually?" He says, ^'Mr. \'an Ueil came to me when he was vice-president and got them from me and 1 understood he collected $55,(K)0 on them." Well, I think he was a little mixed himself, because in tracing the matter for myself 1 found, according to Marsh's own teller's work, when he was teller, there api>eared to be no such figures om Marsh's book when he was teller at all; that this $183,000 had been a gradual growth for several years back; had begun with small items, matters of four or five tlumsand dollars, and gradually increased to $7,000, $10,(KK), INVESTIGATION OF NATIONAL BANKS. 471 '4 $15,000, $20,000, $30,000, $40,000, and so on, and going u]) in that way. 1 traced it through the teller's booi^. You can st>e the growth of it. It •'^ot up to this $183,000— up as high as $105,000 at one time— although it ran at $18:3,000 without change for a long period. Then there was an item of forty-six thousand and some odd hundred dollars and some cents which was put down as national-bank notes. Now, you can not make a national bank note of 20 cents to save your life. I hat was down as forty-six thousand some odd hundred dollars and twenty- six cents. I asked the teller what that was. He could not ex])lain it. Q. Fut down where ?— A. On this teller's cash-settlement book to settle his daily cash, as though this was national-bank notes; and he could not exjdain that; did not attempt U) explain it to me at all, and that was unchanged. National bank notes are the notes that a bank uses most activelv of any notes in the bank. It they hold back any they hold back others and use their naticmal-bank notes in paying checks. This was unchanued for a year and a half. That la(!t, together with the fiict that 26 c(Mjts was at tln^ end of it, ol course would show it was not national-bank notes. Q. Did you ever find out what that was?— A. Never; couldn't tell, and never'have been able to tell since. 1 am perfectly satisfied it was carried as an item of checks. . , ^^ Q. Mr. Barrett, turning from that a moment, the bank received the money, as I understand yon, for thos6 dnebills?— A. Yes, sir. () Now, can you tell us, from your examinations of the accounts, what use was made of that inoney*?— A. That money was used by the bank to trv anrrespondiiig payment of obligations of the bank?— A. Several heavv iniyments that very next day. The duebill account, a heavv pavnnMit of something like nearly >!5:J0O,OO0, two hundred, I think it w'as, and sevly made to "banks." No individual's name is on any of them at all, s<; that none of them are indorsed. By Mr. Dickerson. Q. Passed by delivery? The AViTNESS. That is all. They are simply made, "Pay to banks so.much;" that is the way they are made out. By the Chairman : Q. But tke duebill account of the next day showed such payment?— A. Heavy payment, yes, sir. By Mr. Dickerson : Q. Did not Lucas get a good deal of it? Did he not take it out to i .:«! 472 INVERTTGATION OF XATIONAL BANKS. INVKSTKJATTON OK NATIONAL UANKS. 473 h\ invt-si it in real estate speculations? — A. A large araonnt of this biisiiMAss took place aft^r Ln<*a8\s death. By the Chaikman : (}. With regard to the other items, are there any vases in which you can see similar transactions to that upon the books of the ba^ik, showing tlmt about the time they received these large deposits from John Bardsley tljcy paid liabilities to somebody, to other dei)osit- ors?— A. Yes; there are heavy charges, as I say, $.jO(),000 (yes and nearly $7(K),0()0) fictitious charges made on their'books to the' dnebill acconnt to reduce its liability. Q. Yes.— A. Where they really had no money; and yet a large pro- portion of this money Avas used to pay loans among the banks there and to send to New York in Xew York exchange, and sent on to their account in Xew Y^ork to keep u}) their account. Q. Is there any other?— A. Then, of nmrse, with the fall came the run. Q. Those were used to meet the demands of the depositors at the time of the run in November, 1891 f— A. Yes, sir. Q. Or 181)0?— A. 18!)0, October and November. Q. Have you been able to determine where first the Keystone National Bank had among its assets the stock of this Spring Lake and Sea Girt comi>anies?— A. 1 have not been able to determine any fui- ther than what I have seen here ujjon these reports, because there is nothing on the books of the bank, either of the minutes of the directors or stockholders. There is nothing to show any dealing in any of the Spring Lake or Sea Girt business whatever. Q. Not until, then, the Lucas settlement ?— A. Until the Lucas set- tlement. Q. Now, there is another item that turns u]) in there— Baltimore Traction Company stock, i.^an you tell us the history of that, how that came into the bank! A. That, if 1 understood, came into the bank through— no, I am not familiar with that. Q. That has been one of the questions, as to whether the bank owned that, has it not? — A. It has been a question. Those bonds were hy pothecated by the bank and are in the hands of the clearinghouse at present J and there is a fight on hand now as between the estate of John Bardsley and the bank and the clearing house as to the possession and proper ownership of those bonds. Q. Had not you been called upon to investigate thai?— A. No, sir; I have not, because the receiver has made a piettv complete investiga- tion. He has that in his hands. That was a matter tiiat he had al- ready decided upon in his own mind, so Miat I had not gone into the investigation of that. Q. There is nothing more you know of in regard to these duebills that you desire to say ?— A. Nothing at all. Q. Will you tell us, Mr. Barrett, what became (as far as you can as- certain it) of the money of this bank f Who got it, and where and how was it obtained f— A. I have a list here that 1 have made up very care- fully Avhich 1 can show ycm. [Examining pa])er.J This list shows that $895,000 had been taken out of that bank in overdrafts, in the first place, by individuals who were allowed to overdraAv; and those over- drafts are unsettled in many instances; the accounts are partially or entirely obliterated from the books by being tf)rn out, so that we ha^•e to go to the books of the original entry, thedailytransacti(ms of checks and deposits and discounts and collections, to build these accounts up from the first transactions, making them up as though this man came in and we had taken every day's work, and, as it were, opened a ledger for him to see what his condition was. Q. Start with that list. Give it to us and let us know what it is?— A. We find H. H. Yard, overdraft $278,000.60. Q. Was there anvthing of that on the books at all?— A. Nothing. Q. The account had been torn (mt, had it not?— A. The account had been torn out since 1887. By Mr. Dickerson : C^. How did you find it?— A. His account on the ledger shows (all through 1880 and 1887) and at the close of the year 1887 he closes up with an overdraft of $499. The next year, opening the ledger for 1888, the beginning of 1888, it does not appear on the record in any shape or form, nor was there anything to show that this $499 overdraft had ever been settled. That closes December 31, 1887. Q. That is lust $499, isn't it?— A. And a half, yes; and they opened a new ledger the first day of the year. In carefully examining the led- ger, where it should have been in alphabetical order, I found ten pages t()rn out. There were the other accounts of the Y^s previous to it in the same order that they were in in the other ledger and the Y's after it in the same order ; but that space there excited my curiosity, and I set my young men at work to start in at this point with this overdraft of $499 aiid take every day and work right up to the close of the bank, and this is the result, $278,000 overdraft. Q. What is the next ( me, please!— A. Certificates of deposit issued to H. H. Y^ird, for which the bank received no money, $85,900. These certificates of dei)osit show the issue in the certificate of deposit account on the ledger, as charged to certificate of deposit account when paid; but there is no corresponding credit to that account for these when issued. They stand there open on the face of the certificate of deposit account th<^ bank in this way. He recei\ed a dnebill from the bank for $25,000. It was in 1890. He brcmght in a dei)Osit ticket. lT])i»ii this de])Osit ticket were several items of checks, most of them checks on New eTersey and New York banks. Among these is noted on this ticket a check on the Keystone, $10,000. Now, Mr. Yard, personally, at that time, had no account m the Kevstone National P>ank at all. He had an account in the Keystone National Bank as manager. This deposit ticket is credited to his iic- count as manager, the whole $25,000. It is immediately charged back on what they called in that bank the '^ star entry system;" that is, without there being any check given, and a duebill was issued to him in place of the deposit, in plact^ of being credited to this account, the duebill for the full $25,000. The $10,000-check of his, however, was not charged in that account nor in any account, but it was hid by being charged in duebill account, and we found the check among the general ledger charge tickets. It is marked across tlu^ face by Marsh, '* Charged to bills disc(mnted. G. AY. M." Yard took a $25,000 Li 414 INVESTIGATION OF NATIONAL BiNKS. INVESTIGATION OF NATIONAL HANKS. 475 diiebill and wvui to one of tlu' trust fonipanies, 1 think it was th^ ritizt^us' Trust (^ompany, and (lepositcd that there. Thev deposited it with their <;ash dei)osits at the Cliestnnt Street National Bank- and from the (Miestnut Street National IJank it came back from tht' clearino house to the Keystone, and the Keystone paid out the whole $25,(M)0. So this cheek was carried in amonji the memoranda and never was char^iHl to Mr. Yard or anybody else. Then I found $35,84{K;32 of various other certificates of deposit, in false issue, no crcMlits when issued, nothing to show that the cash had ever come into the bank: but thev are paid and charged to <*ertihcate of deposit accounts. (}. Do you remember who those individuals were f— A. I have the list in my office. Q. You haven't them here?— A. No, sir. Q. Are they large in amount?— A. No, they are not verv large Some of them are small; one of them as high as'$!»,(UK). Q. 1 wish you would send us that list.— A. Yes, I will. (} B Haines. This account I had to build up, *l>4,38r>.29. (1. B. Haines ^Vc Co., old account, $3(vS3ri.I8 (?); William Trenholm, $(», 784.1)4; (i. VV Marsh, |9r>,7(»3.(>2; Lucas ^: (V., $r>r>,08<;.r,0; Samuel Lucas, .'!,000 Notes of Samuel Lucas, Lucas Bros., and Edward L-win, who was a salesman for Lucas Bros., amounting to |I40,17(», were given up volun- tarily by Mr. Marsh to Samuel Lmnis withcmt anv credit— just simplv handed to him, and he took them out of the bank.' He testified to that himself at the hearing against Marsh. In 1887 and 1888 they went into wool speculation and lost $16,000 in that. Q. AVho went inf Whom do you meanf— A. The bank went into wool speculation. They went into it in this way: There was a man tiiere by th(» name of Frank A, Primrose. They would discount Prim- rose's paper, but Primrose was simply an outside agent for the bauk. It appeared on the books as Primrose, lie was getting ilisconnts. It vds putting money in Primrt)sc\s hamls. H(^ speculated in wool for the bank, and they dropped .'i!«l(;,0(K). Thev never charged that on the I I'otit and loss account. Q. On margin f— A. On hank speculation. Q. On margins, or did they actuallv buy the woolf— A. I guess thev actually bought the wool, fnmi the size of the discounts, for the dis- (iounts were for ten and fifteen thousand blocks. Q. As it stands on the hook it is a bad debt against Primrose?— A. It appears as though it was Primrose's paper, and Primrose is not worth m^^' Piimrose is a mere figurehead?— A. That is the wav it looks. Then there are a number of small accounts, or notes, ranging from $2,200. 1 can give you the names if you wish, sir. For instance, a note of W. H. AVatson, .1<2,200; note of John Kenaud, jr., $4,000; another of W. H. Watson, $1,300; another of W. H. Watson, $2,500; another one of the same gentleman, $500; another one from John Renaud for $4,921.67; a demand not(» o\' John C. Lucus, due February 1*5, 1887, for $1,800, which has a iiistory; note of Samuel B. f ;lolni C. Lucas, and they gave the bank a note to c()v<'r those of $57,635.(J7. They afterwards paid cash, $7,635.67 and gave their note for $50,000. That $50,000 note is still unpaid and in the clearing house now. (). Is the Lucas estate supposed to be good for anything ? — A. Well, that is a matter of litigation. The receiver is trying to find out now whether it is or not. Q. 1 )id you give ? — A. They paid dividends during the years 1889 auou can very easily see that the bank was out of currency, out of the money. For instance, doubtful notes and accounts in receiver's hands, not C(msidered in the above, $437,189.17; and notes and ac- counts considered good, but still uncollecteaptH-, and in some instances accounts, but the cash ha be, how nearly accurate f— A. I founda <;ood many alterations for a long period about October 10 and July li in those accounts. That was the way in which I proved up that $48,(K)0 in the Tradesmen's Bank, and as'bi' tween the Union National Bank of Lewisburg. Tlie Tuion Xational Bank sent me their account, showing that the Keystone National Bank was indebted to them to the extent of some forty-odd thousand doHars, when they had manipulated the account— dropped the a<;count out! There was nothing there; they completely wi])ed it out. Mr. Payson (to the chairman). How was that done, Mr. Chairman? The Chairman. Charging the baidc as though it had made a remit tance to the country bank. The Witness. 1 will show you; they used two sheets; the bank examiner came in there October 10, which was the middle T)f the week; they used general ledger sheets, which are unbound. In making up the new sheet the beginning of the week they droi)ped out the ^3^48,000 of the Lewisburg Bank and started in with'.^r>00 and some odd and soon dropped that out; made the alteration of the .t4S,000 of the bank named above. By Mr. Diokerson. Q. They had that much more money with the Tradesmen's Bank ? A. Keduced both banks. They continu<'d that during the time the bank examiner was there, and doctored that afterwards. I hai)i)ened to have both sheets. Q. Were there any transactions between Examiner Drew and the Keystone National Bank which were disclosed by the books at any point?— A. 1 found one transaction on January 31,^ 188!^. It shows oil the discount book that Mr. Drew got a discount from that bank of $1,800. The discount book shows it— No. 21875, dated January 31, for six months, due August 3, 1889, .1<1,S00. The. Yes, wait a minute; in February 1887? — A. Yes, sir. (i. And at the same date he borrowed $1,800 on his own note of the Keystone National Bank ? — A. Yes. (}. Which remains unpaid to this date?— A. What remains in the liands of the receiver 1 think is still unpaid. W>11, hold on; I ought to ipialify that. That ruite was one of the list of notes that was in this lot that the estate of John C. liucas assumed when they gave the bank t his $r)7,635 of notes, but the note was never taken up. The note itself was in the hands of the receiver, and 1 looked at it only two or three days ago. Q. It is simi>ly ])aid in the ])ro<;ess of the settlement to which you have testitled, upon acccmnt of which there is yet $50,000 unpaid? — A. Yes, that is right. * Q. Have vou any statement of the overissue of stock? — A. 1 tind that at the close of the bank the stock account showed outstanding 12,726 shares, an overissue of 2,720 shares. Q. Was that before or after the stock held by Mr. Wanamaker for operations with Mr. Lucas had been surrendered? — A. I think this in- cludes that. I have the index here by which I can show you the transactions of Mr. Wanamaker with all that stock [referring to book]. Here [indicating] are Mr. Wanamaker's transactions: John Wanamaker, for instance, No. 380, it will be found here [indi- cating]. I think you can begin on this. This is simply at the close of the bank. That was all wound up. But here is the history of the AVanamaker stock [examining books and papers]. There [indicating] is the first of that issue. No. 380, July 11, 1883— John Wanamaker, COO shares. Now, No. 445, we will find again 200 shares. By subsequent certifi- cate. No. 450, this was canceled there. Then, No. 450, this was the old issue, and then this became No. 907. No. 907 appears in the name of Cyrene (?) P. Dunham ; another party, same certificate, but the name is transferred to Cyrene P. Dunham. Then, comes Nos. 445, 46, 47, 49, oO— a whole string of them here. You see 45, 200 shares; 40, 10(» shares; 47, 200 shares. Q. What are those amounts ?—Tliose are canceled and 10; and you will find that Nos. 450, 51, 52, 53 and 54 become afterwards 008, 025 shares. Q. Now, 45 becomes 50, 51, 52, Ty^ and 4; that is 1,(MH) shares?— A. Yes Q. 50, 51, 52, 53, and 54. Then that is 1,000 shares, and (>08 is only for 625 shares ?^ — A. (i25 shares. Q. Where is the rest of it?— A. The balance are canceled; taken up. (,). They do not account for this Lucas matter; that is what 1 wanted t4) find?— A. There is a history to that Lucas matter. It can be traced up by this index. There is the stock. A great deal of that Lucas stock was taken from a new certificate book that we found in the vault— a certificate of stock book from which 14 certificates had been abstracted. And thereupon the committee, at 4;35 p. in., adjourned, subject to the call of the chairman. li 478 INVESTIGATION OF NATIONAL HANKS. Washington, I). ('., Fr'uluy, June JO, 1,S9;J, Tilt' committee uwt at 10 u. in., Hon. lltMiry liacon in tlic cliMir. rreseiit: Messrs. Kendall, Dickeison, Speiiy, AY ike, Walker, Hen- derson of Illinois, and ('ate. TESTIMONY OF A. R. BARRETT— Resumed. By the <'ii airman: Q. Vou were asked at ll»e last lieariiii; wliellier there was any reeord of the notes jiiven for the real estate held by the Keystone National Bank when it ranu' into the latioiial hank system, and whether any- thin ;>• of that kind appeared ninni its hooks. *lJave yon made a further seareh to see whether any sncdi reeord can be found t — A. Ves, sir. I went throu«;h the dis4'onnted notes and made a careful examination of the books of the bank to see if 1 could hn, /S7(J, relalive to the Hnhatitutlon of notes of the diiectois of aaiiX honk for i-eal exfutt . Tlif coimuitttT of KichiiMUHl pioinTty wonld irspiM-t fully rejMirt "Tluit iliMiiiinj; thr sale of tilt" in-opi rty at tin- pnscnt iiupnssibh* withcmt ;;n*at loss, n'r<»iim!«'iic protested, nor the drawers and indorsers of said notes (held hy the hank ropcrty, at the value of. $20,000, on the books of th<' bank he made to Mr. Thomas Allman in trust and held by the bank; which was unanimously adopted. • «•#•** .1. B, WisWKLL, ('af(hia\ INVESTIGATION OF NATIONAL BANKS. 471) By Mr. VV'ike : Q. I)o(\s that show that the notes Avere not to be presented for pay- ment? — A. Yes, sir. By the CilAimiAN: Q. Will you phrase state what this paper is |handin- pai)er to wit- „ess|?— A. This is a sehedule of the eertiticates of deposit whieh were paid by the Keystone National liank between the dates of Aprd li.S, ISS.% and the close of the bank. Q. Anil to whieh yim have referred in your former testimony .—A. Ves, sir. . , i i i 4- <^. So that the etieet of the entries on the books ot the bank relatmii- to these eertitieates is to show that these were issued and jjaid withcmt any value received for them?— A. That is the way it appears on the books. Q. That amounts to .ii^ll-M.74n.;;L^'— A. Y^es, sir. The paper was marked to be inserted in the record as Exhibit 13 of this date. Exhibit 2, Schedule of cerfijicates of deposit paid and charged to certijicalc of deposit account for uhich no rrcdits can he found. Date of issue. Name. Nuni- iM-r. Datr of payiiu'iit. ' Xame uii1 :K) I H. Thonia.s (end. II. II. Yard) 21 ! AV. S. .lack.son (end. II. II. Yard) 1889 I Mcli. 5 I W. S. daitkwMi (eml. 11. 11. Yard) 188(J. ! Dw. 15 Miss K. M. Clianil»erlain i I'nknown 1889. Au*;. JO K)ank AVilmnnd1 2!02 2:us 2;n9 2:}52 Nov. 19. 89 ....do ...do do Dcr. 5. "89 ...do Sarah Ann I'arlow Chftd. on srratiiur torert. of d.-p . !mt on l!'d'j:»r to S Central Savinji Fund. i C. n . Fithr H. n. Yard do.... do du *Stul> dated April 2;); ciitituatedaU'd May a. 2.551 2558 25»;2 25i;:j 2017 .lanv 31. "90 I'Vliv. 18, '90 .\])\'. 11. '90 .lunc 2.'iK» Apl. :m». '90 Mav l.'iM) Mav 1.90 Julv !W Amount. .t('»00. 00 432. 95 300. 00 275. 00 404. 95 125.00 500. 00 500. 00 .500. 00 .500. IK» .500. 00 475. 00 500. (HI 504. 9:; 125. 00 5. 000. (K) 5, 000. 00 5, 000. 00 5. 000. 00 2. 000. 00 200. (K» 109. 00 225. 00 2. 447. .50 5. 000. 00 5. 000. 00 5. (K»;t.(K) 5. 0(.(i. ( ),00(t. 0(» 1.000.00 2.ltO(». «»0 1 . 201). 00 200. (Ht 99. 88 2. (KM>.(»0 2.377.43 (i. (HK). 00 8.000.00 7.000.00 9, 000. 0(1 1 j^ I »„ ; I ,L 480 INVESTIGATION OF NATIONAL BANKS. Svhednhof ciriijieatts of depoxHy «/<;.— Continued. Date of issue. 1890. July .{ July li July 3 Sept. 22 S<-pt. 22 Nov. 18 1891. Jauy. 13 Nuuio. H- H-Vatd I no (;iiar«;»'«l «o (N'utnil Saviuy; Fund on i«(lj;»r .....!...! H. Askin Cliaiycil on l«>il«;rrlo CrnJral .Savin;; Fund II. Askin do Num- ber. 7>aft> of l»ayiueut. ■i- 2lilS 2tf2« 2U:{5 l^M Pooloy HroH W. S. .larksou (v\u\. H, H. Yanl).. "VV. S. Ja«k.son (y tt'lkr » cash ovns <»rl. of dcp. account.. 2670 2fi7I 2717 2742 2743 Julv July Jub- S«jtt. .Srpl. S«'pt. S.,,1. .S«';»1 . S«pt. Nov. Janv. I)e<' Janv. 8, m 1."), "90 2s, JKI 23, 'm 10. '!MI 17, IMI 17. •«) I 2.'., "JM) ! 24. m i IS, -(xt I 3, SM 1 :n/9u ! 22, 91 Aniouut. *7(M>. (H) 4. 000. 00 5, (KK). (M) 2. (NNI. (H) 1. ."HK). 00 :i. 000. 00 1 . GiHJ. t)S 1,.'>00. OO 1,(KX).00 2, OOO. 00 2, .KK). )N» •i, .'>00. 00 1,000.00 12:}, 449. 32 1, 700. 00 121,749.32 Ihe extiviiu' carelessness .sh»\vn in tiie k.-eping of this account has necssitated !JVL^T''"""",'"*^' cloK.'ly all the al)(»ve itcms^vitli the result of ehan«Mnj> the sum by $400 Ironi Avhat was previously report<'aratively careful record had been kept up to July 27, 1880 (during tlie administration of .Mr, INVESTIGATION OF NATIONAL BANKS. 481' Wiswell); but after Mr. Mar.sh came in (which was in 1880, I tliink) very few entries of transfers were made on the stubs of the books; and while a feeble attempt had been made to keep the transfer book, only seven or eight entries had been made, so that it was virtually useless. After that period, or the period of the summer of 1880, up to about January 1, 1890, there was an almost absolute neglect in entering the transfers, and thereby making the tracing of transfers of this stock almost an impossibility. We simply did the best we could. We could not trace all of them. We put them down, but we could not make them up — on those lists which (contained most of the Lucas stock. :Mr. Walker. Is there anything upon the books to show or exidain this neglect, or the probable reason for it?— A. I should judge from what I saw that they were overissuing for the purpose of raising money, for the purpose often of putting up certificates as collaterals; I judge upon what I learned outside, as well as in, that they were utterly reck- less in issuing certificates. I learned from a responsible party (a party who had dealt largely in stocks and bonds, and who gave me the op- portunity of looking over his books for the purpose of learning from them what sales and transfers he had made of this stock), that it was a frequent occurrence when sales of the stock of this bank had been made by him to send a clerk up to have the proper transfer made, and that Marsh would take the certificates, look at them, rumple them up, and stick them into his pocket. He would then fill out another cer- tificate and hand it to the clerk. The old one he cmmpled up and put it into his pocket. That seemed to correspond with the way we found the business. By Mr. Dickerson : Q. You did not find any of the canceled stock at all!— A. We found a great many certificates that had been pasted back in the certificate book, but no entries on the book. There was nothing by which to trace it; no entries or assignment at all on many of them. Q. Was nothing at all on the book?— A. In some instances there was. Some parties brought them up and had the entries niade. In a great many instances there was no assignment, and nothing to show to whom the stock had been sold, who htwl bought it, or who had made the transfer. Q. You could not take the books and maintain an action against the stockholders!— A. That was the difficulty with the receiver. AVe found one certificate of stock book. It was the certificate beginning with Ko. 900. It began regularly, and was running through the numbers up to 1000. but that was not used up. But we also found a new book be- ginning with '<' 1001." Forty eight certificates had been completely cutout. Fourteen were entirely gone. The certificates lay in the book, and some of them lay loose. We have since come across a small list in Mr. Marsh's desk, which I think gives a little history as to what had bei'ome of some of those fourteen certificates. What we found was simply a slip of paper, about as long as my hand and about as wide, on which he put down certain numbers, which correspond with the numbers of those missing fourteen certificates. It contains the number and name and a figure which would probably represent a certain number of shares, but there were no entries on it which Avould explain it. The name of H. H. Yard a])pears with no number of shares to two of the certificates on this list, but I could not state what that represented. By Mr. Walker : Q. I would like to ask the witness the custom of banks as to the issue 3792 31 il t I" ,» 482 INVESTIGATION OF NATIONAL BANKS uiitl preservation of certificates returned. T want to know what tlie custom of well-regulated banks is as to making a record on the stubs of certificates issued. — A. The custom in all well-regulated banks is to make a complete entry on the stubs, not only of the name, number, and amount of the shares of original issue, but also of the name of the l^arty, the number issued or transferred, and when the transier is made. That is done particularly where no transfer book is kept, as is the case with sonu' banks, but a well-regulated bank will keep a carefully kept transfer book, or note carefully all transfers. By the ( -hairman : Q. Before you go any further with that stock matter, I will ask you if you know that certain certificates were returned by the represeuta tives of the Lu(;as estate and canceled ? — A. Yes, there were about 2,516 shares so returned. Q. Are any portion of those represented by certificates issued to John C. Lucas, or are they shares issued to other people and signed in blank ! — A. I do not exactly catch your meaning. Q. Vou know there were a number of shares issued to John ( \ Lucas. Did those canceled shares include the shares issued to Lucas? Were those issued to Lucas or any part of them returned? — A. I will see. Here is a list of the stock as we found it. There seems to be standing in the name of John O. iiucas 925 shares. Q. Are those a part of the 2,3()0 that were surrendered? — A. We have 2,726 overissue, and that 2,516 shares is a [)ortion of this. Q. It is only for the purj)ose of making your testimony clear. I woidd like to have a history of Mr. Lucas's o])erations in the stock of that company, with the dates of the transfer, an:j 817 754 756 ! '"937 'I 943 I 940 950 404 6.57 352 956 962 202 585 724 830 963 467 689 769 786 80U 8.53 431 965 153 960 964 243 061 256 471 5S3 614 666 879 10 21 10 20 .50 30 20 5 10 25 25 25 1 5 1 10 10 i ( 2 5 10 40 20 10 \ 5 5 5 5 10 10 8 20 2 50 50 25 S5 I 1 ^ 5 10 > 12 5 'A 6 6 8 10 10 10 5 5 7 10 6 10 13 11 20 20 10 2 2 5 5 5 10 200 899 200 828 1 976 20 622 10 814 10 878 12 819 10 5.54 20 643 .) 907 200 908 UX) 10 21 10 20 i 50 i 30 20 5 10 31 75 1 6 10 12 10 40 20 15 20 40 125 25 22 20 20 15 28 10 13 51 12 2 15 10 400 1 20 32 10 20 5 300 10 21 10 20 50 30 20 5 10 31 75 1 6 10 12 10 40 20 15 20 40 125 25 22 20 20 15 28 10 13 51 12 2 15 10 400 1 20 32 10 20 5 800 i«o certificate found for 10 shares. !» 484 INVESTIGATION OF NATIONAL BANKS. Stock oHisfaiidinq at the clomig of the Keystone National Bank, «. '89 9. 22, '75 5, «;, '86 5, 6, '86 5, 6, '86 1, 1. '87 10, 2, '88 1, 8, '91 4, 26, '90 2. IH, '%:\ 5, 6, '8li 1, '88 6, m 1, '87 1. '87 ExcelHior Div. No. 20,">, S. of T .do. Spencor Krvin (;eor;tf«' T. Ki.lcls. (Jeoiiiie T. (Jahell. Jr Mary Ann ( iotortli Mth. Sarah T. (traliani. do E. M.tJans do 5, 11 n, .Toliii (Irecnwcll \Valtfr(Janrtt J oMt>i»li I i re;nson do 5, 16. '89 2. W, '91 5, 6, '86 1. l;!, "90 1, 13, '90 1, KJ, "90 1, :iO. '88 11. 10, '90 2; 26, 79 fi, 6, '86 11, 1, '87 9, 22, '75 11, 1, '87 7. 9, '86 11, 1, '87 5, 6, '86 2, 8. '76 1, 28, "79 2, 11, '79 12, 15, '80 :i, 14. '81 11, 12, '83 12, 17, '83 3, 14, '84 4, 9, '84 4, 9, '84 4, 9, '84 4, 9, '84 4, 9, '84 4. 9, '84 11, 10, 84 11, 15, "89 No date... Do > Do Do 2, 25, '79 5, 6. '86 11, 1, '87 , 5, 6, '80 ! 11, 1, '87 I 5, 6, 'S6 ; 1, 22. '89 ; 9, - , 87 ' 9, -4 '87 1. 4* '77 5, 6. '86 11. 1, '87 5, 21, '90 5, 6, '86 11, 1, '87 No date.. 12, 12, '89 7, 5, '87 7, 5, '87 William (Iiavi's Williaiii (Irav»'», jr Brookfi(Id(;able do A India (Jibl)» (from certf.). do do do \Vm. K. (Jockler Anna M. HaincH ( 'lias. ( '. llaint-s do do From r»H-tf.613 J«>s«|)]|(.ue ('. Hannnn llachel A. Haiucs 11. M. II«dbrook do Jaincs W. Howard do Mrs. 8ii8aii Y. Ilihbard do Edward Hopkins Granvillo 13. Haines ^ ..do. ..do. ..do. -do. ..do. .do. do. .do. .do. .d«. -do. do. do. do. do. do. do. do. Jolin (). Holbrook • A- do D. .1. H«M>j>o.s do Hrnry A. Homirkel... (;has. S. Hiiicliinan Edw. Irwin do Henry Jolinson do Jo.sliua K. Jones J. T. Jackson do Beii.j. F. Jarret Henry Jones Howard Si)en<'er Jones. do * No certificate found for 1 share. No. of Num- Total 1 certitt- ber of each at - TotaL cate. shares. connt. 10 669 10 3 \ >=- 13 847 100 100 100 15 90 90 90 478 4 4 4 479 1 1 1 480 690 10 5 \ '-^ 15 787 940 3 5 \ « 8 891 20 20 1 20 :;69 50 50 1 50 482 20 \\ 25 i 773 5 1 25 483 ' 30 .10 ■ .10 673 20 20 1 20 735 8:{7 8 12 1 20 1 ' 20 470 4 ' 534 4 662 1 f ^^ *10 ()86 1 974 5 5 5 484 50 50 i 50 871 1 100 1 872 873 100 100 [ 301 301 *1 762 40 40 40 906 14 14 ! 14 226 5 > 1 488 5 S 12 1 ^^ 679 2 s 16 644 20 [ 5 i \ ^ 25 567 675 30 , 6 1 \ 36 36 493 5| 5 5 81 40 1 188 19 197 45 :u)i 100 :{2o 10 383 10 384 17 385 5 394 20 395 :i96 100 100 V2sn 1291 397 100 398 100 390 100 404 25 864 100 865 100 866 1(H) 867 100 868 100 217 5 ) 487 5 [ 15 15 680 5 S 490 674 20 5 \ ^ 25 491 5 5 5 821 200 200 200 628 629 241 200 1 .« 441 104 50 ) 4ft5 50 i 125 125 681 25 s w 894 15 15 15 494 737 40 10 [ 50 50 944 10 10 10 861 10 10 10 617 618 200 225 ' 425 425 ( INVESTIGATION OF NATIONAL BANKS. 485 Stock outstanding at the cloHimj of the Keystme National Bank, e/c— Coutiuued. Date of issue. 3, 30, '89 4, 26. '90 5, 26, '88 11, 1, '87 2, 8, '88 12, 21, '71 11, 1, '87 12. 19. '90 i 12. 19, '9«» 12, 19, '90 I 12. 19, '90 5, 6, '86 11, 1. '87 5, 6, '86 11, 1, '87 5, 6, '86 11, 1, '87 5, 4, '86 3, 31, '86 11, 1, '87 4, 23, 89 I, 15. '91 j. 1, 29, '91 *. I, 8, '91 I, 24, '91 6, 22, "88 7, 6. '87 8, 15, '87 |. I, 1.5, '85 7, 9, '81 12, 24, '85 12, 24, '85 11, 26, '81 12, 24, '85 ;. .5, 11, '82 II, 10, '84 12, 24, '85 7, 20, '82 12, 13, '82 12, 24, '85 12, 24, '85 12, 24, '85 1. 19, '82 5, 11. '82 II, 21, '82 II, 21, '82 5, 7, '85 5, 7, '85 No date — 7, 1, '89 8, 6, '91 9, 21, '75 2, 10, '89 10, 6, 'W» 12, 1, '90 5, 0, "86 II, 1, '87 2, 24. '79 5, 6. '86 No date. .. .5, 6, '86 11, 20. '90 5, 6, '86 11 1, 'K7 5, 6. '80 11, 1, '87 5, 6, '86 - 1, 6, '88 12, 28, '81 10, 15, '75 12, 24, '85 7, 11. '8:3 11, 1, '87 1, 24. '88 5, 6, '80 11, 1, '87 Barton (J. Le.ster John li. Love. . . Justus A Clias. McFadden do Adelaide McFadden David MelJurney ... E. E. McHurney Clement McCune Daniel Me Arthur do McP.ride liros ,Jos. R. McFailden W'ni. MeCau.slaiid do J as. E. M«('lees, trustee do Wm. M, 6. '86 11, 1, '87 5, 6, '86 7, 9, '86 11. 5, '89 5, 6, '86 11, 1, '88 11, 1, "87 1, -, "90 2, n. '90 r>, 6, "86 11, 1. '89 2, 26, 79 5, 6, "86 11, 1, '87 1, 8. '91 12, 17, '7;{ 11, 1, '87 5, 20. "87 No date . . . No (late... 1, 26, 91 12, :{, '90 3, 26, 90 3, 26, 90 12, 23, '8.5 11, 1, 87 7, 9, '86 2, 12, '91 2, 12. '91 2, 28. JM 5, 6. '86 5, 6 H». 22 r>. 6 11, 1 IS'o (liitf. . NojlitUv. 2. 12. 91 5, 6. '86 11. 1. '8':^ 12, 1.".. '88 5, 16. 89 1. 2r>. IK) 11, 24. 90 8, 15, '87 11, 1, '88 9, 18, 86 11, 1. '87 !(►. ir,. 79 r*, 6, '86 11, 1, '87 9. 4, '89 12. 11. '8!> 11, 22. 'm 10, 7. '75 11, 1, '87 11, 18, '80 11, 1, '87 1, 10, '86 11, 1. '87 9. 29, '88 StiM-kluklder. C.H. Miller No. 2 J. Miller Thomas Masaey (Jeor^o II. Meloiiey A. M. Moore .' , Jacob M«'yer.<4 John Mot)r«! ' A. J. Morri.Hon ('. C. Newton * Chas. I). Norton 1). P. S. Xuhola.s do S. F. Nirdiin^er do . Sanfonl Onieusetter do ' do i Davier<{t do ?. do tJeo. W. Shirley do ". . IlenrietluH. Smith do do do »l . K. Sower do W . A .• Scarboroniih do K.state of Kichard St«»kes. do do Seidenbach &• Knbiir;; Kdw«l. V. Smith do Peter Stanji do... ( Jeorjie Stang do .... A uielia Sharp do . A. L. Sbinglu. 515 9:tg .513 403 519 942 842 521 227 409 624 556 616 233 523 700 625 568 649 .->79 7*10 739 875 880 528 725 222 527 702 941 249 701 GU4 979 1, 003 949 929 88 1 887 421 72« 5(MS 971 972 977 536 537 857 5:19 7D5 821* «23* 973 542 704 813 1(35 877 »1U 626 749 578 716 28 6 10^ 12 . 10 i'l 32 5 } 1 i 50 ;i 6 50 1) 50 > 25 i) 5 10 3 175 11 10 100 10 I 125 5 13 175 11 10 100 6 7 10 25 I 50 ! *'* I 10 15 I 10 U 2 5 5U 50 5 10 15 12 20 ■n 6 20 t 10 ^ ? 2 S 10 i 2 J 10 20 2(» ) 12 'U 10 } 40 5 50 \ 50 > 6 1 J 100 } < 20 12 43 8 12 50 12 15 50 100 7 100 100 2 20 3 30 50 2 10 10 25 120 50 12 50 6 32 6 125 5 13 175 U 19 100 6 7 10 50 .50 5 10 15 12 20 12 43 8 12 50 12 15 50 100 7 100 I INVESTIGATION OF NATIONAL BANKS. 487 Stsck oahtandiuy at the vloHinf, of the Keystone National Bank, cfc.-Contmned. Date of issue. Stockholder. 11, 1, '87 4, 17, '89 5, 6, '86 11, 1, '87 7, 15, '90 10, 28, 00 10, 28, '90 12, 1, '90 12, 1, '90 12, 1, '90 12, 1, '90 2, 14, '90 I C, 27, '90 1, 25, '90 ; 9, 11, '90 ( 9, 24. '90 9, 24, '90 ! 3, 7, '91 3, 15. '86 1 11, 4, '87 5, 21, '89 ; 7, n, '85 : 5, 6, '86 11, 4, '87 12, 3, 1, 6, ';» 4. 3, '90 4, 15, '90 10. 13, '75 11, 1, '87 2 12, '91 •>< 2, '74 11. 5, '87 a, y, '91 », 14, 86 4, 14, '87 No date... 10, 26, '87 9, 22, '88 9, 22, '88 9, '88 5. 1, '88 0, 29, '88 9, 29, '88 9. 2&, '88 9. 29, '88 5, 16, '89 6, 11, '89 6, 11, '80 «, 11, '89 10. 22, '89 10, 22 '89 10. •w '«9 11. 12, '89 1, 12, '89 12, 10. '89 4, 17, '89 Wui. S. Tow do Chas. C. Tow do do Amelia L. Tobia.son Abigail A. Tobiason K. G. Twael, jr do do Howard U. Thomas do A. R. Thomas do do do Ralph V'ogel Dan'l Weaver do Rebecca Walker Wm. R. Warner . Webb (old), .do. No. of certifi- cate. Num- ; Total ' l>er of each ac- Total. shares, count. John B. Welsh. Hettv Ware H.H". Yard .do. do... do... do... do. do. do. do. .do. do do do ...... CIO. ..-•■--••-»•»• do ilo _..«•. (lO ..•••»••••-■■•• ...... 410 ■>>>•> .•■>•>••• do do do Mrs.A.T. Binahur.st. 727 831 I 546 707 898 904 905 923 i 924 1 925 928 1 882 '' 896 I 876 i 900 I 901 1 902 I 980 ' 455 j 638 t 840 I 419 ! .549 640 927 982 889 890 47 708 975 305 650 978 577 601 728 730 783 784 785 792 796 797 798 799 830 844 845 846 8.58 a59 863 869 870 930 832 755 I 26 5 i 350 10 400 Total shares 15 5 25 10 10 1 1,253 50 755 26 5 350 10 400 25 1 25 13 i 13 1 2 1 00 2 100 «l 6 8! 8 Ill 11 15 5 25 10 10 1,253 50 12,720 ft: I \i\ n fi *Surreudereil. ¥1 488 INVESTIGATIOX OF NATIONAL BANKS. ^chnlah' of certificaica of alod in Ihv Knintonv XaiionaJ Jiavh, rJiilatUlphia I'a is Hued lo John lluHunialur, with utdorHemtnt on namt, as Hhoan by the boohs aiul ,h„ cvica vt riilhaivts. Bate of 1883. July 11 1H86. Mar. Mar. Mar. Mar. Mar. Feb. Feb. Ft- 1.. Feb. Feb. 3 3 3 3 3 lU 10 10 10 10 !Namo. John Waiianiaker May 31 John Wananiafcer. do do do ilo do do do do do Nuiii ber. i ^nini- l>er of Hhares. I Jno. AVanaiueker. 380 445 446 447 448 449 450 451 452 453 454 G08 Indorsed in bLmk. 1882. 600 ' Aug. 25 John Wananniker. 200 No indorsement. 200 200 200 ' 200 20«» 20(» 2(K) 20(1 1887. 625 May 31 Do. Do. Do. Do. Jolin Wiuiamaker. Do. Do. Do. Do. Jobn Wananinker. Analysis of stock surrendered to the bank ejraminer by the attorney of the e^talt- of John, C. Lucas. No. Name. Shares, 617 ' Howard Spencer Jones .' 618, do ! 628 Edward Irwin «29 do i 847 j Spencer Ervin I 851 IJarton G. Lester ! Kemarks. 876 879 899 900 901 902 923 924 925 928 340 A. R. Tbonns I Richard T. Ca-'bury.. - - . ■ • . CIO >--..•••••«••., A. R. Thomas do do E. G. Trasel, jr ...... UO do'. do John C. Lucas , Less regular issue. Apjjarent overissue. 200? 225i 241,' 200^ 100 ; 200 \ 100 i 200 i 200 100 100 100 50 100) looS looV 200 Out of certiflcate No. 608 for 625 -hares in name of Jolin Wauauiaker, apparent overisnue. Stub uiarked in corner "J. W." This stock has not been traced fronj any prior certifi«'ate, apparent overivtme. Out of certificate No. 632 lor 200 shares in liis name, apparent overiiSKue. Out of Armstrong stock bought by Lucas, certilicate No. 343, regtdar issue. From certificate No. 410, J. C. Lucas, apparent overissue. From certiHt!ate No. 342, J. C. Lucas. re,ftdar ixgife. Balance of certilicate No. 608, J, Wanaiiiaker, apparent oner- ihsue. From certificate No. 364, J. C. Lucas, apparent overigsue. From certificate No. 341, J. C. Lucas, reyular «*•*«<'. Do. From certificate No. 341, Anna M. Haines, appetrentoic'nitue. From ^certificates Nos. 632 and 633, to Spen<-er Ervin, this stock lias not been traced, tiiotich an aypar^nt overuuue. Out of Armstrong stock, regular itme. 2,516 800 1,716 Copy 0/ the hstjound m Mr. Marsh's desk supposed to represent issues of certificates of stock oj the heystone National Bank of I'hiladctphia, Pa., the stubs (if the rnliluui" 0/ stock book being blank and the certif eaten missiny. No. 1001 to H. H. Y 1002 toH. H. Y .' 1003 N. K. Keger n 1004 M. I. Glass -'- - -^^^'.v.^^^^'.^v.".'.v.v.v.v.".v.^v u 1005 A. L. Kalilmiis jn lOOtJ K. Kodgers ."'.'.."."**.'.!!!!!; -, 1007 Commouwealth 'J'itle and trust Couipan v i o lOOS O. K. Crump * ^ ii\' 1001) F. L. McArdle , 1010 Almira (iibbs ,7, 1011 C. N. Sholleiiherjrer.... ./^ 1012 Don't kuoNv 1013 c. N. «iieiienbeiger v^'^v^'/.v^v^'////.v^\v^v/^v^v//^\[v^ lo INVESTIGATION OF NATIONAL BA'NKS. 489 i\ The certificates Nos. 1004, 1006, 1007, 1009, 1011, ^nd 1013 acco.npan led the 1 ist hey ftre assiirued in blank, and appear to have been used, probably as security loi loans AU excfpt No 1013 aie dated 1888 and signed by John C. Lucas, president; the one exception is dated in 1889 and signed by G. B. Haines, president. Schedule of notes discounted for John fVanamaker by t^^^^Keystone Nation^ adelphia, Pa., and on hand during the examination, from July 3 to July 16, ISM. Date of discount. 1890. Mar. 22 Mar. 22 Mar. Mar. Mar. Apr. Nante. June July 24 24 24 12 14 15 17 18 19 18 19 20 21 23 5 Jno. Wananiaker , do do do Date of note. 1890. Mar. Mar. Mar. Mar. Mar. Time. Months. 4 4 4 4 4 Amount. Jno. Wanamaker. do do do do — -•• do June 17 June 18 June 19 June 20 June 21 Demand 4 4 4 4 4 $10,000 10.000 10.000 10. 000 10,000 10,000 10,000 10,000 10,000 10, 000 10, 000 10, (K)0 10, 000 10,000 10.000 10,000 40,000 Due date. 1890. July 7 July 8 July 9 July 10 JnlV 11 0.-t. 1.') Oct. 17 Oct. 1« Oct. 20 Oct. 21 Oct. 22 Oct. 20 Oct. 21 Oct. 22 Oct. 23 Oct. 24 Number. When paid . 200, 000 0G8G 6087 6609 6700 6701) 17136 17137 t7138 17139 t7140 t7141 7617 7631 7054 769« 7708 1890. *Apr. 22 Apr. Julv Julv J ulv tJuly Oct. tJuly Au;r. Oct. Oct. 1 Oct. Oct. ' Oct. I Oct. Oct. 6 10 11 31 17 31 8 21 22 20 21 22 23 24 ;T£esnot"'fdo''!;o? appear on the discount book, but only on the credit ledger and daily tickler. The numbers are duplicates of others. X Rediscounted July 31. I learn that the $40,000 demand loan is a renewal of a loan of like amount of March 10 18% at which tin e Mr. Wanamaker got a $50,000 due-bill, >.o. 131ob, and g^ye hi;, note for ^0 000 and his check for $10,000. I learn that his bookkeeper clam-s this MO OOO noL wa^^^^ November 10, 1890. It is evident that that amount came in that darinit^t cin not be told by the books from whence it came ; the books simply show that it came in on account of notes. i?A/r„».^i, .» ^^a 9i '^^^^ Mr Wanamaker's account appears credited with the notes of March 22 and 24 a id with'those oTjune 18 to 23 inclusive, and appears charged wi h the amounts ot hese notes on their due dates. The $60,000 in notes discounted in April I do not hnd credHed to his account, but upon their due dates the amounts due appear to be charged to his account. By the Chairman : O Will vou furuish the committee a list of the certificates surren- dered by the represeiitatives of the estate of John Lucas to the hank in 1891/aivinff the names of the persons to whom they were issued, the number of shares of each, the number of the certificates representing such shares, and the date of each ^certificate ?- A 1 nvi 1 (The paper was read in evidence and marked Exhibit JSo. i ol tUis date.) •id 490 INVESTIOATION OF NATIONAL BANKS. Exhibit 4. Schcdnh of certificate of 8tock of Key Hone National Bank, Philadelphia, Pa., turned Jter to the hank examiner March 2ii, 1891, hy the estate of John C. Lucas, auppoaed to hare been %n tht possemon of Mr. John Wanamaker, and relinquished by him to the estate. Date of 1882. Jan. 19 1887. July 5 July 5 July 6 July 6 1^89. June 29 July 1 189U. Jan. 25 Name. John C. Lncaa. Howard Spencer Jones. - ■ .do Edward Irwin Feb. July Sept. Sept. Sept. Dee. Doc. Dec. Dec. 1 18 11 24 24 1 1 1 2 t ...do Spencer Ervin Uarton (J. Lester . A. R. Thomas .... 'So. ofoer tifl- cate. S .a Ri A. £. chd.T. Cadbnry do .".. K. Tlioma8 do resentod John Wanamaker. I have bcei. nifoimed that he was a confidential man in Mr. Wanamaker's servi(»i'. Q. Do yon know Mr. Jone^?— A. I do not. Q. Did that stock remain in the nameof Jones?— A. Yes, sir; it is on my list. There were at least 425 shares. Q. Was there any stock standing in the name of anybody else's bene- ficial interest which belonged to Mr. Wanamaker!— A. Not that 1 have been able to thoroughly trace. Q. Or any other that is alleged to be?— A. 1 can not say because I have not traced. INVESTIG.\TION OF NATIONAL BANKS. 491 O From any sources of information ?-A. Not that 1 have tound. Q wm you state the date of the surrender of the last certificate be d bv Mr Wanamaker in his own name?-A. I found a certificate ^i^^d -Jo JoinTw^^^^^^ May 31, 1887, No. ^08 /o^ 6^^^^^^ ^,^- 1 found transferred tc> Howard Spencer Jones of J^^^ TJ.. r.ir. *>(M) sliares- No. <)17, I'OO shares; and No. olH, ^J.> snares. % Wh^be 're of certificate No. G16, tamsferred to Howan Spen- ,ei Jones?-A. That was transferred to liichard F. Oadbury, Jiilj 18, '*^ Ai.d stood ill tlie name of Mr. Oadbury at the time of the failure •'*'q" SJT.t \": mnamaker's list and tell us when he re^eiv^ then, and wh.-n he i.arted with them and where they went to.-A The «,st certifieate tliat appears in his name was issued July H, l?«'i. ^o. 'io teHW shires. Tl.ere is a ,,uestio« as to what became of ,t It is canceled. The c.-rtiflcate itself is pasted in the book as having been '""rYou did not trace it any further?-A. No, sir; we could iind nothing as to where any other number took its Place. Q. Take the next.— A. The next one was issued Marcli o, and is jno. '""ti What be^m; of that?-A. That was transferred February 10 to himself and became No. 450. That No. 450 became No. 90. on No- vl^ld^r 1V890 when it was transferre.1 to Serving B. Dunham, and is ( ■ " Q T notfcf «m have a .luestion mark Ut some of the Asures ?-A ^ ■ Thai is because' we coul.l not' trace to a prior - ^/^^^^^Xi' m n^ There was nothing to indicate, and we simply P"!* * l^f *'7 ™*f„,;.,o„ Q. No. 440 is the next.- A. No.446 was^ issued March. 5, l.SS.,,fo. -00 shares That became on November 10 of the same year No. 451. Tl.ei e irr»eVuliar ty of some of those original issues, as that one is (hied March :d vet one issued after that is dated Pebmary 10. That occms on the books almost .•ontinually. We can not go by dates on '"%! W^at^^^orNo. 451 t-A. No. 451 has a question mark atev it. The books do not show. Hy Mr. DiCKEUSON: , . . ^ a- Q That was in his naine?-A. Yes, sir. The ceitihcate is pastedm the book It is canceled, but as to what became of it L can not tell. By the Chairman: O The next is No. 447.-A. No. 447 was issued March 3, 1880, and be- came !no 4.Vj under date oi* l^\4.ruary 10, for 200 shares. That is in tlie same situation as the previous one. , . . ^ i, ;^ i). What is the next!-A. The next is No. 448, «"f.;^"*'^.^ 18S0, for L>00 shares, and became 453 on February 10, tor J(K) shaies. That is in the same situation. By Mr. Dickerson: Q. Wliatis the purpose of transferring his own "ametohis own naine in another number!-A. That is what we can not find out. Iheie is nothing there to show. ByMr. Oate: Q. He does not draw out any money !— A. No, sir. hi «! I ^-~ -J f^^-nr^i|-^ 402 INVESTIGATION 01 NATIONAL BANKS. INVESTIGATION OF NATIONAL BANKS. 493 #1 B;^ By Mr. Dickerson: Q. Are you able to form iiDy opinion as to what his purpose was in chan«»in^' these numbers f — A. No, sir. By the Chairman : Q. What is the next?— A. The next is 449, issued March ,3, for 200 shares. That became, under date of February 10, No. 454 for 200 shares. That also has a query as to what became of it. Q. Do these canceled certificates bear the signature of iiuybody as to his power to cancel them f— A. 8ome bear the signature of John Wanamaker and som(* do not. Q. Will you kindly examine the certificate book and inform the com- nuttee whic^h of them bear the signature of Mr. Wanamaker or his power of attorney on the back of the stock and which do notf— A I will. Q. Will you state, i)lease, wliether you are able to find anywhere any account of what became of the stock represented by the certificates numbered 451 to 454 inclusive ?— A. 1 have not been able to trace them. Q. Is there any other scrip standing in Mr. Wananuiker\s name at any time?— A. No. 008 was issued to him Mav ;U, 1887, for 625 shares. W e have a query mark i»laced oi)posite that* because we were unable to learn whether that was originally purchased or whether it was trans- ferred from some previous stock. That became numbers 016, 617, 4md 618, as I have already testified. Q. Is there any stock standing in the name of Mr. Marsh?— A. I think there is. U. W. Marsh, 50 shares, we found standing on the old stock hnlger in his name. We. have not been able to identify any stub for that, nor any transfers, and consequently we can put no number on it. We found that he had been drawing dividends for it. Q. Is that the only stock that stood in his name ?— A. That is the only thing we found. Q. Was there any stock standing in the name of any member of John Lucas's family?— A. Yes; J. Hunter Lucas. Q. Who was he?— A. He was the son of John C. He had four shares at the close of the bank, two certificates of two shares each, one issued oU the 9th of July, 1881, and the other issued on the 24th of December, 1885. Q. Can you tell for what they were issued?— A. They appear to have been transferred from some of Jno. C. Lucas'. It does not appear as though they were transferred from any one else. I think as far as our examinations went tlmt those came from Mr. Lucas. No. 426 was transferred from No. 417, which was a certificate of John C. Lucas. Q. Three hundred and twenty-seven is the other one?— A. No. 327 came from No. 276, which was a certificate of John C. Lucas. Q. W^as there any other member of the Lucas familv who had slmres?-^A. Yes, sir; 3Irs. M. E. Lucas. Q. Who was she?— A. His wife, as 1 understood. She holds at pres- ent certificate No. 422, issued December 24, 1885, for twenty shares. Q. Where did that come from?— A. That also came from John C. Lucas, certificate No. 417. W^alter Kay Lucas, his son, also holds four shares, certificates Nos. 328 and 427. By Mr. Dickerson : Q. Are the shares SI 00 f— A. They are $50. No. 427 was transferred from 41 <, which was John C. Lucas's, and No. 328 was transferred from No. 276, which was also a certificate of John C. Lucas. Then there is Miss Florence Lucas, who was his daughter. She holds five shaies, n certificates Nos. 359 406, and 423. No. 350 for one sluire came, so tr as we could judge, from that stock originally held in the name ot Theophilus W. Smaltz. As to No. 406 we have been unable to learn "^ Q:'v(^r^tl^ consideration for it?--A. We have been unable tx, traee that. , » a m i ^ Q. What was the number of shares?— A. Two shares. Bv the Chairman: Q. Wiiat is the next ?— A. No. 433 came from No. 417, which belonged *^a wiTis^^^^^^^ one?-A. Miss Ethel Lucas. That was No. ^^Q No.424isoutstanding!-A. Yes. That is for two shares Miss, Eth^lLucas, which eame from No. 417. Mildred Luca^s, two shares, fame from No. 417, and Granville H. Lucas, two shares, also came from %.^Is that all the Lucas holdings !-A. Yes, sir; that is all for his family. By Mr. Dickerson : Q. Are those sons and daughters of age?«A. That I do not know. I have never seen them. By the Chairman: Q Those are all dated December 24, 1885 I—A. Yes, sir. Q. Was Granville B. Haines a stockholder ?— A. Yes, sir. By Mr. Dickerson : Q Was he a relative of Lucas ?-A. No, sir; he was a very mtunate friend, and was connected thrcmghout with nearly the whole of the bank's transactions. He held 1,291 shares at the time ot the closing of the bank. By the Chairman : Q. Look and see how much his transfers amount to, and state whether thev are outstanding?— A. His transfers amount to 1,220 shares; he has 1,291 shares outstanding. • , a Q (iive the date of the first stock which Mr. Haynes acquired.— A. Februarv 8, 1876, certificate No. 81, for 40 shares. . Q. That is outstanding?-A. That came from certificate No. 112 of VStt thet^^^ one.-A. The last one is 868, for 100 shares; no , and 100 shares 397; 100 shares 39S, and 100 sliares 399, of the same date. That makes more than enough, because combined with this was also numbers 340, 361, 349, 3(J4, 374, 370, 392, ami 381. Q. Those weie certificat-es which had been issued ? — A. Yes, sir. No. 392 came from Henry F. Lamaers. He was either a bookke<^per or salesman of Haines's. Q. And the other certificates which were can<;eled, and for which these were issued were held by Haines himself? — A. Yes, sir. Q. Turn to certificate No. 320.— A. No. 320 reads ^^ Issued June 20, 1881, for OOS shares to G. B. Haines.'' Q. What bc^came of that? — A. That was transferred to Joseph G. Ditman, May 13, 1884, 10 shares, and the same date to John C. Luctis, No. 401, (m8 shares. Q. Look at certificate No. 634, please. — A. No. 634, September 23, 1887, for 00 shares. ' Q. What became of that? — A. I have not been able to dis<*over. Q. Is it in the book?— A. The certificate is in the book canceled. Q. Please look at No. 384.— A. No. 384, December 7, 188^^, for 17 shares. It is outstanding. Q. Does Mr. Henry H. Yard appear as a stockholder of this bank?— A. He does, to the amount of 1,283 shares. Q. Will you please state when his first purchase of stock was nmde? According to this, it is certificate No. 594. — A. The first purchase that we find is March 29, 1887, No. 694, for 225 shares. Q. What becauie of it ?— A. To No. 604, the Provident Life and Trust Company, May 20, 1887, for 225 shares. Q. Does that end the history of that stock? — A. Twenty-five shares of it, March 0, 1891, for Ralph Vogel, becomes No. 980; March 6, John B. Love, 25 shares outstanding, and the balanoe, 175 shares,, we are unable to account for. Q. You are unable to statt^ what consideration the bank received for certificate No. 594? — A. We are. Q. Look at certificate No. 600.— A. No. 600 issued to H. H. Yard,- April 14, 1887, for 125 shares. Q. What consideration was received for that?— A. We can find noth- ing, only a notation of this date "error;" "returned same day, April 14, 1887. See No. 601.'^ No. 601 reads " H. H. Yard, issued April 14, tor 150 shares." Q. What is the consideration for No. 586?— A. No. 586 appears as a certificate of John C. Lucas for 300 shares. We are unable to find any consideration paid the bank fin- it. Q. Is No. (JOl outstanding? — A. Yes, sir. Q. Then you have examined the books to see whether the bank re- ceived anything for that stock?— A. We examined the cash book. On it we could find no credit to the stock account. By Mr. Dickerson: Q. Then your answer is that there was no consideration ever paid to the bank? — A. Yes, sirj not that we can find. 'vl By the Chairman : Q. Certificate No. 648?-A. H. H. Yard, issued October 21, 188., for ^o'Xv consideration paid for it?-A. That appears to come from Vnl^i^^Tt is the stock o^ W. H. Kemble. That was issued Septem- ber' 2Ti87^/L^came1rl No. 79, which was E.D Van Horn, Janu- ar^ 6 'l87(i, ^nd that came from No. 300 of the old State bank V) No 782?— A. No. 782 was issued to H. H. Yard tor seunreen sh4s August 27, 1888, and it appears to come from No. nO, which w r. issued^^^^ Alcorn February 20, 1888, and was transterred to Nos. a3 78^ a^ and distributed with other sliares among ^os. 783 784, and 785, which are (mtstandingm favor of Yard. Q Please take No. 806.-A. No. 800 reads, "September 20, 188b, H. 'V'^i^ -n«ion did you discover i^r the issuance of that ^t"^ l^r^^^t^ S was transferred December 3, 1890, to Charles W. Keihl as 100 shares. Bv Mr. DiCKEKSON : . O I want to ask how much stock, denominated "overissue,' Mr. Wananrato tJ altogether^-A The tot'^ overissue ^ he dose o fh.. hank was 2 72(> shares. Two thousand hve bundled .mu sixin ii st ,res ve^i^tnnu^^^^^^ bank examiner by theestat»of J. C. Lucas. O • this we ftnd 1,710 shares apparent overissue as per ^b^"^e O Do vou know whether he held them all?— A. 1 do not Know. O Do vou know of any correspoudence between hini and Mr. Drew in reference to that?-A No, sir; only by hearsay. I •''in.ply heard ihat there was some correspondence, but what it was I do not know O T)ovouknowanythii!?n.ore about the transa«tiou between Mr. W^iamaker a«d L bank about that hypothecated stock -A. I do not Sw anything more about it. I have notes lu relation to it, and I "oXIoTkUfauything about his hypotbecating stock that wa. ca^Ml an overissue?-!. No, sir; except what I have read m the papers Thaw^rt been able to trace it. I learned, as others did, that the stock was hvShecated for the purpose of raising money to assist Mr. Lucas hit Kaetion or deal iu keading Railroad, ^r. ^.ucas msteul of pu^ ^-z=Lrh^ss^^'fraMt^^^^ -rnof £ dld^rhold'^iri!"! rnit^lno'^- I think 1 may caU^ "JoWanaLke rs^^^^ and that was an account that repre- ^nted these ^.e^ulations'in which John Wanamaker and Lucas were *"o''ThaVwffthe'Weculation in the purchase of Reading stock f-A I do Tot know exaaiy. I simply understood there was an ^coun* re nresented there, and that account I found was, April 11, l^f 8 oyer^ drawn S493 57.' I have heard that Mr. \anamaker claimwl tha^^ was not informed of that overdraft, and when he T^f^,^"*^^^^ that this ac^ c^unt was overdrawn he got a loan trom the bank. I found a heavy 'T 'C'rSsecm'elhrirn^-dn WTai kind of paper?-A. Some of?t was hi?o.^Vand"ome was the paper of Wanamaker & Brown, a ' 496 INVESTIGATION OF NATIONAL BANKS. finn with which he is connected. The notes -^ven ranged from $4,500 up to $10,000. Q, Do you know whether any of this overissued stock was hypothe- cated as collateral in anyway for that money? — A. I do not know. There is nothing to tell us positively. There are blank stubs with the certificates gone in the certificate book, just prior to May, 1888, numbered 774, 775, 776, 777, but as to No. 777, there is a pencil notation on the stub. There is no date, but simply "J. O. Lucas, 125," in i)encil. The certificate has never turned up. Q. How long was that before he secured the loan to make the over- draft good! — A. This overdraft is shown under date of April 11, 1888, and the blank stubs showed date Just prior to May 18, 1888. Q. A little over a month after? — A. Just about a month. Of course, I can not state just the time. Q. This overdraft he made good, I understand, about April 11? — A. Yes, sir; it was made good shortly after that. I do not remember the date. Q. Is there any other overdraft after that of Wanamaker or Lucas ? — A. No, sir; nothing appeared on that account after that date. Q. Can you trace from the bank books how Lucas secured Wana- maker for the amount of money he raised ? — A. There is nothing to show that. There is nothing to show any transaction between Lucas and Wanamaker. Their checks are withdrawn. By Mr. Henderson, of Illinois: Q. Was it not supposcMl that this stock was an overissue, and was transferred to Mr. Wanamaker? — A. Yes, sir. It had been given him by Lucas arbitrarily to secure him for his accommodation. Q. You don't know whether or not Mr. Wanamaker knew it was an overissue? — A. No, sir; I do not. Q. I understood you to say awhile ago that there was nothing to show consideration to the bank for that stock? — A. No, sir; the certificates are out. As to what the certificates Avere for, or to whom they are due, I do not know. By the Chairman: Q. Have you specimens of the form of duebill, as it is called? — A. Yes, sir; I have brought with me a few of the duebills which were given to John Bardsley in payment of interest on his account. Those are duebills torn from the back of the book of which no notation was made on the stubs, nor on tlie work of the bank. They were handed to him. He went to the Third National Bank and got the cash. Q. Will you please furnish to the committee a form of this blank, or make a coi)y of these same blanks which you produced ? — A. I will. If there is anything else any member desires I will be glad to furnish it. I INVESTIGATION OF NATIONAL BANKS. Exhibit 5. 497 n *.;^« «/ //MP hhU» ninrn to John Bardsleu for interest and bonus and paid him by th^ ^T:^:i,i'KauLfZn^,of^hilMP^L:t,^ ean,e bein, calked iy tU Third KaHonal Bank of Philadelphia. ^ Clearing House Due Bill. Keystone National Bank, Philadelphia^ April 1, 1890. Due by Keystone National Bank. To banks, four thousand eight hundred and thirty-seven Uo dollars. This due bill is only good when signed by one and countersigned by another authorized person, and is payable only in the exchanges through the clearing house the day after isssue. G. W. Marsh, Pt. $4,837M (Indorsed in red ink:) First teller. Received payment Apr. 2-21, through the clearing house. Number 14024. -> M « •^ V OS .. < a s o *fiH Clearing House Due Bill. Keystone National Bank, Philadelphia, May 5, 1S90. Due by Keystone National Bank. To banks, five thousand two hundred and forty-five i^ dollars. This due bill is only good when signed by one and countersigned by another authorized person, and is payable only in the exchanges through the clearing house the day after issue, $5,245i«,n., W. H. Thomas, Teller, (Indorsed in red ink;) First teller. Received payment May 6-21, through the clearing house. Number 13552. 00 ■A ^% b£) . P I" o Clearing House Due Bill. Keystone National Bank, Pkiladelphia, June 4, 1890. Due by Keystone National Bank, To banks, six thousand hundred and sixty-two ^,"0 dollars. This due bill is onlv good when signed by one and countersigned by another authorized person, anil is payable only m the exchanges through the clearing house the day after issue. $6,062t\"o. G. W. Marsh, Pt. (Indorsed in red ink:) First teller. Received payment June 5-21, through the clearing house. 3792 32 \ 11 498 INVESTIGATION OF NATIONAL BANKS. Copies of due bills given io John Bardslet/ for inten'St and honuSy etc. — Continued. Nninber 14012. 1^ ^ a o Clearing House Duk Bill. Keystone National Bank, Philadelphia, July 18, 1890. Due bv Kovstone National Bank. To banks, five thousand nine hunliance with your own request! — A. Yes, sir. Q. You may proceed and nuike any statement yon desire to make. — A. Ever since this trouble occurred, which worked so much to my in- jury, I have endeavored to secure an intelligent and candid examina tion or investigation by the Department. In that J have been actively supported by the clearing-house association of Philadelphia, and up to this time, as that has not been accorded to me, I would like, if you have time — for this is the first opportunity for a year and a half that I have had to say a word for myself before a competent tribunal — I would like to make a statement, narrating in brief the salient features of the difficulty, and the history of my connection with the bank and the bank itself; and after I shall have finished, I shall be very glad to bfe cross questioned or examined in any way upon any points developed by my statement or that suggest themselves to any member of the commit- tee during this examination. This may take some little time, but, under the circumstances, I think Avhen it is concluded you will say that the information that will be given by me will be of importance to this com- mittee, and will not in any way impede the legitimate and true ends of this investigation. Q. Are you prepared at this time to make such a statement? — A. I am. The Chairman. I suppose, gentlemen, that is the purpose for which Mr. Drew is here. I see no objection to it, unless there be objection from some member of the committee. (No member of the committee objecting, Mr. Drew proceeded as follows:) Mr. Drew. The Keystone Bank was converted into a national bank, in 1873, from a State bank that had borne an unsavory reputation. It was chartered prior to this examination by the examiner. After its being chartered the examiner made an examination or investigation oi (500^ INVESTIGATION OF NATIONAL BANKS. 501 the bank, and found that one fourth of its capital was impaired by reason of $50,000 of real estate mortgages held from the old organiza- tion The examiner recommended to the Comptroller that notice be given to the bank to convert the $50,000 mortgaged assets into cash within the next six months. By Mr. Dickerson : Q. Wait a moment, Mr. Drew. When you say the examiner, do you mean yourself?— A. 1 do; I mean myself. , ^. ^ The'CHAiKMAN. Let me make a suggestion: Where you speak that way, say I, as examiner. .^ , ^, r ^ /• ^ 4.1 The Witness. The Comptroller so notified the bank, and for three successive periods of six mouths each the bank was suffered to con- tinue this irregular asset. 1 then recommended the Comptroller to close the ba k unless within the next six months that asset should be converted into cash. He so notified the bank. Just before the expira- bank. Its first president under the national system, now dead, Wil liam Armstrong, was a city contractor; and the bank was not only reported by the examiner, but was recognized by the clearing-house association, as being in a very unsatisfactory condition, although believed to be practicallv sound, and admission to the clearing-house association for these reasons was refused for some years. The general tenor of my reports of the Keystone National Bank exhibit clearly a dissatisfaction with its condition on my part, as well as on the part of the clearing house committee; and the reports on file in the office of the Comptroller of the Currency, almost without exception, bear out this statement. In 1880, five years before the collapse of the bank, John C. Lucas commenced large real estate operations at Spring Lake and Sea Girt, N. J., and soon after the construction of a banking building 011 the old site of the bank. He had sold the bank building prior to that tim? and had repurchased it personally for $205,000. It was an old building, practically worthless, and the value of the prop- erty consisted in the lot directly opposite the mint and on the corner of the street, 30 feet fronting on (3hestnut street by 240 feet, running to Sansom street. Knowing these fjicts, particular care was taken to ascertain whether any accommodations were given to Mr. Lucas for the purpose of these enterprises, and directly and indirectly something like $100,000 was found to be in the bank for Mr. Lucas. These facts were all reported to the Comptroller of the Currency. By Mr. Walker : Q Who was the Comptroller at this time?— A. Mr. Knox. During this period Mr. Knox visited the bank himself at my request, looked over the accounts of the bank, and endeavored by advice and sugges- tion to prevent the bank from embarking to any dangerous extent in any of these operations. By Mr. Brosius : Q Is Mr. Knox, who was Comptroller at that time, now living!— A. No sir So, from year to year the bank was reported as in an unsatis- factory condition, and was not only so regarded by the clearmg-house committee, but bv every bank in the association, some of which banks svstematically retused the bank\s duebills. July 3, 1800, at a regular examination made by me, a loan of $2(M),000, surreptitiously made by 502 IN^ E<^ rirjATioN of national banks. 15' '^ the then president, O. W. Marsh, and not carried on tlie books of the bank nor communicated to tlie directors of the bank, was discovered by me and very severely <;ommented ui)on in my report to the Comptroller as well as to the manager and directors of the bank, and an effort was made by me to so< ure an immediate return of that money, inasmuch as the bank was absolutely flat cm its back and needed every one of its legitimate resources to continue its life with the clearing house. By Mr. Walker: Q. Is that a matter of record!— A. It is a matter of record. That was repented to the Comi)troller of the Currency, and there my responsi- bility ceased. Q. Who was then Comptroller? — A. Mr. Lacey. By Mr. Townsend: Q. When was it re]>orted ?— A. On the 10th of July. By Mr. Walker; Q. Howlon«> afterwards wasitthatthebank suspended i — A. Thebank suspended in March foUowing (1891). What action the Comi»troller took is on record. A very particular examination was made at that time in regard to the liabilities of the bank as shown upon the individual ledgers, a work involving protraks of thebank, some 1,G00 in number, were carefully and minutely added, both le for it and probably he (tould answer that question bett^^ thri cafnot'say ^^^^^^^ I dicf. 1 was in the bank very often. Now have St it^^^ a difference of $180,000 was found t^^^t .xppea^^^^^^^^ the fir^t oroof of the ledgers. It was subsequently reAluced by the dis- ove^v oTms and mistakes to $11,0(M); that ^H^^OO ^^.^fterence was directed to be placed in a suspense account by ine, and dividends to be Pld until it was discovered or the amount should be charged to pr( fit d losl'as i;;:cove^^^^^^^ I am particular about th^^^^^^^ niiiMP 1 fear I have been niisrepresented m tins niattei. .laiinai.v .">, 1S91 at 2 oVlock in the atternoon, 1 went with my assistant to the Kevstone National Bank fort tion The cash of the bank was thoroughly counted. I say "wi'f 8'''y Znte.1 I neai. every dollar of it was counted ; no pm^kages were t en as possessing moVy, aud that has been my «"rf«™ P^j^^^'^^,,,^* wiis found to a<>ree with the general ledger cash. I then leK t e pauE, Xr nothig from the general ledger what the assets and liabilities o) tie la ,k Zght to be on close of business that night, mtending to verify tlM-ni in detail the next morning. In the evening ot that day Mr. C arles McFadden, a director, owning 700 f aie« of stock a wealtl^ railroad contractor, came to me at the Coutmental Hotel and t«ld me that President Marsh had been to his house after I had lett the DaiiK that afteriiwn and had said that there was a suppressed mdebtedness ,f thelate Presllent Lucas of some 1600,000, stating to Mr.McFadde tl,;} the examiner was at the bank and he woald not conceal it any onL^ MmmedLtelv, to the best of my memory, that evening noti- fied the Comptroller of the Currency. The next morning ByMr. Beosius: Q By what means did you notify him!-A. By a letter. The next mmning 1 went to the bank and pursued the usual exaiu.uat on The rSs were present, and shortly aftei-the precise day 1 can not "Ive-l intbrmed the clearinghouse 1 ' i ?' JiV - m. A' ; 1 By Mr. Walker : Q. Were you denied access to the papers you had sent there? — A. I was to my reports. I wanted to be somewhat armed against the at- tacks made on me by the committee of the city council of Philadelphia. By the Chairman : Q. Your reports? — A. My reports and By Mr. Cox : Q. What reason was assigned that they were not furnished? — A. They were confidential. I made the request when I was bank exam- iner. The answer was that they were confidential. Of course they were confidential. Q. When was the clearing-house committee made aware of the in- debtedness of the Lucas estate f— A. Early in January, 1891. At my interview with them they concluded that the Lucas estate was proba- bly good for $000,000, and that therefore the bank should not close and an effort would be made to rehabilitate it. The Lucas estate con- sisted then of this large bank building By Mr. Henderson : Q. Mr. Drew, who suggested that effort to rehabilitate the bank?— A. 1 went to the clearing-house committee and made my statement, and said, "Gentlemen, 1^11 close that bank in twenty minutes if you say By Mr. Walker : Q. It was a clearing-house committee, then, that proposed to rehabil itate the bank? — A. We all agreed it was a good thing to attempt. I was about to say why. As appearances then indicated the Lucas estate seemed to be wortli $600,000. The equity in the bank building was $225,000. The building has since been sold for $400,000. There was one tract of land at Sea Girt, 350 acres— the old Commoli<- W^^ run upon f-^^%^%^J^''r^^^ ap- from the shadow of the ^^^^J"^^ P^'"' * ^.^^ „iven t^ the public m prehended that any ^^^P^^^^^^,^ .^^^^ upon other ^!!rdir^rs:^^e^^ Taf^^^lC^on ^^^J^tS^^^ Lucas's debt There were produced by Mr. ^^ish a^ evm^"^^ $600,000, certain memorandum ^^^!^^/^ J^™^\^^^^ turned and an effort was immediately ^f^f .^^J^^^^^^^^^ keeping the mat- over to the bank for that debt, ^^^^^'^^/f^f Lucas cheeks as true ?er qniet was ff-X^to^^^^^^^^^^^^ t^'stat™^^^^^ evidences of debt in law, t^JSewi^ w^i." i' property over, senting the Lucas estate, who ^"^. '''^ "« .^Ja flght the bank with that if the matter ^as made public tie>woum^^^ keeping the %"he examination of the bauk was :^--nly^^„^^^^^^^^ to avoid publicity, and n?'^' jfc^'if «;^^> or va UUty, and had to be under the gravest s'^^P^f'"" "^,*^,5f Kl!'tlCe^ I'is assist- independently examined fd proved b> t'^^ «^^"^j,.^ statement of the ants! Thus some tAvo weeks had pi^^^wm examiner, was actual condition of tbe l)auk, which wo Id satis^^^^^^ made. On the 25th <'t January, IbOl, it beiug bunuay, ^^ j^^ ohtained al>oj^"ld'<^«*[d I made ^^^^^^ f./thlletter of transmit- ;:rSnaSs Cs^^f of ^a SS "Of the condition of the bank. n.i8sion,at n.y request visited the bank on teon^^^^^ ^^^^.^ statement ot the »ank, mcludu g t e ^^^™ f^^^^^uary I forwarded away a memorandum of it. '^S'"' ' ''";"' \„u8e loan ; again, on the 26th him a full report, containing *''« ^l;;*y"f:!^°'^,^tv^^^^^^^ loan, of Febrnary another «««?P^,^^f, ;^P°\'-i^^^t*r^'^^ foct Tat hi praetically 1 thiuk I have a right t^/Jf '""'/*. .^:^*,",,o.nission ..f an item in a .lischarged me on July f *"[ ^''^^nse Tn^ •< t neither intended nor different times in the interim. Q. Y^j/mea?tre matter which you were charged with -f »gt_ A. t.M»k it off a statement wl.u-h I '";^' ^jfj^l'^.S dW it cm- Strict ^::lf^^t^^^'^^^^ - - ^- - ollection. mv best recollection. I ave not s/^^" ^"*^ intpnded t^. showf— A. The iJI^^ /) 50fi INVESTIGATION OF NATIONAL BANKS. i4. f>.?' *'«"l<\ifc result m anythino- tbat is wortli mg^estiug unless there was some hint as tx) the total assets and total liabilities f_A Well, It didn't amount to much, except it showed that the clearing house were aware of the condition of affairs, and we were trying- to Jt !i^s ab?)ut''all oflf ""''"^ ^^^ *^^ "'''''^^^ ^^"""^ ^^^ ^^''"^' ^'^^*^ ^^'^^ I did not know that the clearing-house loan was not on the sheet or hve months. Some banks do not carry that item on their genera ledger sheets, but keep books of it. It was a purely accidental oniKssion 1 was not aware of it for five months. I 'supposed it w^t^oTthZ'. btill, it did not affect the case at allj he would not likely have closed the bank on a preliminary statement of the bank examiner, against the express wishes of the clearing-house associaton. ' ^ By the Chairman : Q. Dicl you suppose all those securities, which you say would have Sf^'^A * i^^ ^learing^liouse loan, were included in the preliminarv re- poit?--A. No, sir; or I would have been minus on mv statement ' (^. Your account would not have balanced, then, {f you had put on By Mr. Walkee : Q. Did this rough statement that you say did not deserve the state- ment of a i-.'^Port show practically what the final report showed, or ap- proximate it t-A Oh, no, because it did not show the dearing.liouie loan nor the liability of the Lucas estate, which was then under ne«^ tiation. We had not gotten it. ^ By Mr. Beosius : Q. Mr Drew, niay I ask you to make one matter a little clearer Yon say that the fiiilure to put that item in that preliminary statement was a mere omission. Was it an intentional or an unintentional mn s ™<{"7: • ^^ '•"^ unintentional. I did not know it till attention was ffii on'iitWngT?" ' *^*"''^*'d«- What possibleobject could 1 have By Mr. Diokerson : Q. Comptroller Lacey told you he did not receive one of the let- ters? — A. No, sir. nmn^T'^l *^^* letter ever returned to you? Is it in the Dead Letter (ithce?— A. No, not that one. ^.%^'^^J^ ^}'f'^^i^yo^;^ite th^t letterf-A. The first letter from the Continental Hotel, and the others in the bank of^i.P^hilT T'V^J'T ^^^?/^^ J ^'^ y^^ ^'''^^ a°y ^^ ^^^ officials ot the bank?— A. I did myself, and marked them *^ private ^Und did iw,r T^-"" /" '^'^ official envelope; did not want the clerks to get them This cleiiring-house loan was made originally in December one month before, $730,000, and communicated immediately and fuHy to ^t'^oSS f' i'' f '^" ?''^""^- " ^^ '^'^ "^ °^onth ago you had $^30,000 in the clearing house, now you have not anv in the clearing house-how does that happen,'' he would see something wrong. Manf int' ^-^^f ^ ^?.^ ?^"*' ^^ ^'^ "^^"^«^' ^M^- ^^e/a li«t of banks that reciuired particular care on the part of the Department, and the Keystone Bank headed the list. ' By Mr. Henderson : Q. There is no doubt of that, Mr. Drew; but why was it that vou usked so many times for delay in taking action in regard to the K^y! INVESTIGATION OF NATIONAL BANKS. 507 r.' Tft r?i rrehabilftate the bank. substious for new sto.k, in amount wci^ rece-ved by me ^n agreeme it s^g le • .'^^,^„,,g^ ,^.,, ,,,^ ^r ved V me, and Vv^tnieT V some capitalists w-;«ade, in .ho tion and cogni/.ance of all those interested m tlie bank, as will .i> ti.e that lie expeciea tnat security a lien upon the Lucas assets, nittee as well as to the examiner. So far was this seriously eniei BaSr-Tri^tion bonds'worth nearly par That 7" f jake J9 W- V ^e^d'b'vS oiS Zr^h:Sr"l25WS to"be tfd i^eSow. So^*£&rdebMn order to make the tWng perfec^y good must be worth $9(K),000; ^25,000 for the building left $675,000 for the nro^rtvlt Sea Girt anA Spring Lake. Whether that could be worked KnaHv bv fuSus managlment, of course, was a question; but thL t wouW havTbeen infinitely better for the bank stockholders^ and depSrs consenting thereto to make the attempt than to go mt« a receiver's hands events have fully settled. DAMAGED PAGE(S) m 508 . IXVKSTKJATION OF yATIONAL BANKS. m A meeting was held, i>re.sided over by Ool. H W Gi-iv At wi.ir.i. r^i.. «I.OO, 000. AUei; the bank closed-aftcr it went into a receiver's liaiids without controversy, and on which a dividend of 10 per cent has hepn paid It goes without saying that if anybody connerted w?th the bank presentniff itself only after the bank had come into the 1 ai.ds of a re By Mr. Walker: ft9-ii ; J*/!i" ';r'"rf y""'' deposit debt by false entries aireliininary statement is the first one of all that number on account of which any fault has been found with me. I have some notions whereby I think the system could be greatly improved. I do not aim at impossi- bilities, but 1 think, in the first place, the examinations are not frequent enough and they are not thorough enough. The liabilities of the bank are not, as a rule, tested in country banks. By Mr. Walker: Q. Is it a practical thing once in twelve months, at such date as the examiner may himself determine, not at fixed intervals, to take every liability of a bank requiring the address to be given upon a printed blank and ask whether it is genuine or not 5 is that i)ractical? — A. It would not be practical; it. has been tried. I have sent recommenda- tions to the Comptroller from time to time, one of my first recommen- dations being that all foreign balances of banks be corresponded about independently of the books of the bank. It rose from the trouble with the Mechanics' National Bank of Newark, where the examiner had been deceived by nearly $500,000 as to its balance in the Mechanics' National Bank of New York. The examiner wrote from the Park Hotel to the president of the Mechanics' Bank of New York to give the balance that he held, if any, in favor of the Mechanics' Natonal Bank of Newark. The cashier knew that that was going to be done. He steps over to New York and sees the president, "I have got an examiner over there in my bank to-day." Yes, he says; "I can't think of his name at present. I know him well. I just had a letter from him. He was asking me about your account. I have just answered it." " Oh, have you," he says. "Yes." Well, I am going right there; I will take it." "Very well." He takes it and passes out; goes to his dinner in New York, writes a letter stating the balance due his bank to be $500,000 signed by the president, puts it in the mail in New York. Mr. Examiner re- ceives it and says it is all right. Q. But that would not happen one time in one hundred t — A. That was the starting point of this new regulation lecoinmended by me to the Comptroller, that banks carrying large accounts in other banks when examined be corresponded with directly. Q. Is that the rule now? — A. Y^es, sir; that is the rnle now. Wliat- ever efficiency the system of bank examination in the large cities pos- sesses is owing mainly to the banks and the clearing-house organiza- tions of those cities. Boston has a peculiar system. The Boston ex- aminer, as I understand, is obliged to write to every depositor. If the bank has 5,000 depositors every depositor receives a letter, for which the bank pays the postage, and it is quite an item sometimes; but they are so organized, or were, that they passed this resolution unanimously, and any bank, I am informed, that failed to do it would sacrifice it« place in the clearing house. I recommended that in Philadelphia, and we tried it for a short time under Mr. Cannon, but it made such a "hurrah boys" with the depositors, who came mnning in drawing their accounts right and left out of the bank — ^they thought it was a new thing, something extraordinary — and I could not get them to put their accounts back. Now, the double examination, the semiannual exam- ination of the national banks of the city of Philadelphia, as well as in other cities, were inaugurated by the request of the banks themselves, the clearing house, through their clearing-house committee. If I was going to advise, I would say examine every bank in the United States twice a year, A bank examiner coming to a bank only DAMAGED PAGE(S) 510 I' ' • INVESTIGATION OF NATIONAL BANKS. I ^ ouce a year strikes but one dividend period. He may see some tbines m an honorably managed bank that ouglit to be charged off before the next Oividend. He will make a recommendation to that effect He may write to the Comptroller. Another thing, some bank examiners liave too many banks. There are bank examinerswho have 150 banks- that 18 a bank once in two days the year around; and I would have smaller districts and more examiners, and I would have an order that 1 ?!i^^^*^"^"'^*'^ "' contiguous districts agree to go together. But a skillful rogue can alter his assets. You can not prevent forgery and you can not prevent lying and you cannot prevent being mistaken as to a man's reputation. By Mr. Brosius: Q. It is hard to circumvent criminals, is not it?— A. Well, nobody had any idea Mr. Lucas would do this thing. How many more since he has died have been leaning in the same Uneon his name, I do not know; It IS impossible to tell. Another point about this examination I would bke to have noted. Shortly after the death of Mr. Lucas, in 1888, Mr. Marsh, then the cashier of the bank, communicated to some of the di- rectors the fact that Mr. Lucas had a suppressed indebtedness of some- thing over a half a million of money. This fact was not communicated to the board ; it was not entered upon the books of the bank. It was not included in the report of the bank to the Comptroller. It was not re- ported to the bank examiner. It was nowhere in sight, on deck or be- low, m that bank; after the bank got into difficulty, but before it was absolutely in the hands of a receiver, this fact was communicated to me and repoi ted t<> the Comptroller. If that fact at that time had been known Mr. Charles McFadden, of the board, as he said when he heard it, would Iiaye advanced all the money necessary to make good the de- hcit, would have had the bank instantly placed in safe hands, and there would have beei- no connection of Treasurer Bardslev with that bank, because his term of office began snbsequently to that transaction. That intention that they kept this taet away from the kVo7led^^^^ ciates, but it was a very grave mistake. Q. I would like to inquire just there, how many of the officers of that bank must have knowuof this indebtedness!— A. Well, Mr Marsh was then the cashier and the i>resident was dead. Mr. Haynes suc- cetHled him as president the first year. 1 do not like to say who knew It, but I believe two or three of the leading diretors knew it. Q. And the cashier must have known it?— A. He told them he had been caiTying it for Mr. Lucas, and he told these directors and it is greatly to be regretted, because John Bardsley came in, then a good deal happened ; who is responsible nobody knows. This $935,000 which has beeji admitted by the courts and on which a dividend was to be paid, which was not made against the bank until after the anest of Mr. Bardsley and the flight of Mr. Marsh, in my Judgment, ought to have been more carefully and thoroughly analyzed before it was a^lmitted. The theory that for the duebills given by the bank to Mr. Bardslev the money thus derived was used for the payment of the depositors of the bank m a^ legitimate way is untenable; for the fourteen months during whicn these duebills in greater or less amount were outstand- ing against the bank, but not in sight, the deposit debt of that bank was not so materially reduced. It is a theory well deserving examination INVESTIGATION OF NATIONAL BANKS. 511 whether this vast amount of money instead of going to the legitimate depositors was not mainly loaned to outside parties who to-day are lustly indebted to the bank therefor. 1 think an investigation of my connection with the Keystone and Spring Garden National banks ouglit to have been accorded me early in the trouble. It was promised me by the Comptroller's letter io me, and by his pubUc letter through the Sec- retary to the mavor of Philadelphia. It was earnestly requested by the Cleanng- House Association of Philadelphia, the chairman of the com- mittee which volunteered to act as a member of the examining commit- tee I had designed that a bank examiner acquainted with city busi- ness possibly one not known to me, and an expert from the Treasury Department, a thorough accountant, not a bookkeeper merely, and that a representative of the Clearing- House Association, who stood by me m all t&is trouble, should constitute that committee. Instead ot that an employe of the secret service department has been the only investiga- tor of the bank, and I am still without what I conceive to be a tair op- portunity to vindicate, if possible, my connection with the bank. I have more letters here. (Witness produces papers.) By the Chairman: Q I do not think we can take the letters. Anything relating to the baiiis: we can take, but anything given you since your removal we have nothing to do with. The Witness. I see; but I would like to show you one. (The chairman of the committee stated that he directed to be sent t<» Mr Drew from time to time copies of testimony taken before the com- mittee on this investigation to his address in Philadelphia— the Con- tinental Hotel : and that he (the chairman) was informed that such testimony had been forwarded to said address. This statement was made in response to the statement of witness that he bas not iweivet^ printed copies of the testimony. The chairman of the committee lur ther tendered to Mr. Drew at this time copies of the testimony and ad- iourned, with the consent of the committee, a farther meeti ng of the committee for Mr. Drew, if he so desired, until to morrow morning at half past 10, or, if that were inconvenient, until such latter time as would suit the convenience of the \\itness.) ^ , ,,. ^ .^ The Witness. I will see the committee to-morrow at halt past 10. (At this point the committee adjourned till half past 10 o'clock to- morrow.) Washington, D. C, January 7, 1893. The Committee on Banking ancl/Ourrency m