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THJB ABGV& IOSTAY. JtT
iET ANSWER.
The Comptroller and the Key
stone Bank Failure.
BIS KEPIT TO JONES' TESTIMONY.
Explaining the VUlt to the Bank in Feb
nuiryJConditlon of the Concern
Ra re seated to the Comptroller by Of
ficial Letter from Irew John Wana
maker' Connection with the Matter a
Very Slight One Ielay in Cloning the
Bank nod ' Why Action or That Kind
Wu Finally Taken.
"Washixgtos Citt, Jnne 15. When
Comptroller Lacey was shown the testi
mony f Assistant Bank Examiner Jones,
of Philadelphia, in which charges of ne
glect of duty 'in relation to the Keystone
bank were practically made, he carefully
read the nune and then said that he was a
member' of the afsay commission which
met in Philadelphia on the 12th of Febru
ary. He took advantage of this visit to
meet the directors of the Keystone bank
and to impress upon them the necessity of
keeping their reserves stronger and put
ting the bank in a more satisfactory con
dition.. He made no examination, but
such matters in rekition to the accounts as
were brought to his attention were all
embodied in IJuk Examiner Drew's
statement of the Vth of February, which
disclosed an impairment of capital, but
not insolvvncy. The Lucas defalcation ot
$6U0,(tk) was of course known to him be
cause it had been stated in Dank Exam
iner Drew's report of Jan. 24, but the
same report stated that the Lucas estate
had conveyed to the bank the banking
house and seashore property, which was
estimated to be worth more than the
amount of the defalcation.
Statement Sent to Mayor Mo art.
As k further contribution to the litera
ture fit this bank failure the statement pre
pared by Comptroller Lacey and sent to
Mayor Stuart, of Philadelphia, is given
below. Its purpose is to vindicate the
comptroller in regard to his action, in con
nection with the failure, it having been
charged that he was so careless in his of
ficial action as to amount almost, if not
quite, to criminality. The statement in
cludes a letterd Bank Examiner Drew,
of Jan. 24, notifying him of the $600,000 de
falcation of Lucas, the late president of
the bank. In this letter Drew explains
how by adroit manipulation of the ac
counts of the hank Lucas, with the assis
tance of Marsh, the former cashier of the
bank, abstracted large sums of money
from the bank to use in speculations in
real CKtute. Marsh, he reported, was ig
norantly led into the transactions, and
promicod Lucas, when tne latter was on
Lis death bed, to continue the deception
under representations that the money ab
stracted, would soon le returned to the
bank from the result of Lucas" enterprises.
- Watted the Matter Kept Ouiet.
Drew aluo reported that there was no
evidence. that JIarsh had profited by these
irregularities. He closed by hoping that
no publicity be given to the a3air until
the bank should tie rehabilitated or efforts
to that end were found futile. Accom
panying this letter was a preliminary
statement of the bank's condition which
left the capital stock of half a million in
tact and a net surplus of &V,$19. Later,
on January 27th, Drew, in an interview
with the comptroller at Washington City,
stated that in his judgment and in the
opinion of the clearing house committee,
the property conveyed to the bank by the
Lucas estate was equal in value to the in
debtednet which had been concealed, and
that i& any event the creditors of the bank
were entirely safe: also, that to sever
Marsh's connection with the bank would
excite suspicion, and that Marsh was
thoroughly repentant and was. actuated by
an ernest desire to do all in his power to
assist the bank in recovering any snms
which had been improperly taken from it.
Why Action Wan I-)nyrl.
Lacey says he did not close the bank
then fof the reason that be had no lawful
authority -to do so upon the facts sub
mitted, aed for the further reason that he
was advissd by Bank Examiner Drew
that the capital of the bank was unim
paired; that the creditors were therefore
fully protected and that prompt efforts
would be made to replenish the cash by
deposits of ?.'JU0,(: to 1 ma.!e by the lead
ing directors and ' stockholders, which
should place it in funds until its own as
sets became available. Further and later
reports from Bank Examiner Drew con
vinced the comptroller that the toard of
directors were slow in putting matters in
a satisfactory onditiou, so on March 7 he
levied an assessment of fciVyjoo nion the
shareholders on the promise "frVm a com
mittee of directors of the bank that the
assessment would be paid within a week.
On Miit-ch' 14 Mr. Drew complained of
little active snpport from the directors in
the effort to rehabilitate the bank.
APPOINTMENT OF A RECEIVER.
Beaon for tbe Delay in That Matter
Wanamaker Indicated.
This reached the comptroller on the
lGth and three days later he closed the
bunk. The bank then remaiu-d in charge
of the examiner Itffy-one days. In an
swer to criticism for dolay in appointing a
receiver, Mr. Lacey says it was not made
immediately because it was the duty of the
comptroller to facilitate a resumption of
business by the bank. It was important,
considering all the business and munici
pal ramifications which the failure in
volved, that plenty of time lie given for
devefopments in order to avoid the ap
pointment of some improper and inter
ested person. -No person, he says, can
show that any creditor, debtor, or stock
holder has been damaged to the extent of
tl by reason of the delay.
As to the Postmaster General.
The comptroller states that Postmaster
General Wanamaker never directly or in
directly suggested or solicited any delay in
the closing of the bank, nor In the appoint
ment of a receiver, except a appears by
the telegram hereinafter quoted. Mn
fact, I have met him but once daring the
present year, and that meeting was on the
list day of March at the suggestion and in
the presence of Hon. A. B. .Nettleton, then
acting secretary cf the treasury. This in
terview wa the ' day after the Keystone
bank was closed, and the failure was fully
discussed. He substantially confirmed the
information I Lad received from Mr.
Marsh, and said that he held as a pledge
certificates representing about 2,500 shares
of stock in the Keystone bank, and that he
had declined to surrender them unless the
Luetare'ould1pa)him tie amount
hi due? ,V '
"Won Id Have Nothing To Tk with It.
"I urged him to use his influ ence in aid
of the efforts being made to reopen the
bank. He . promised to look . into the
matter the same night on bin return to
Philadelphia, and I telegraphed Mr. Drew
to call upon him with a statement of the
assets and liabilities of the bai k, and to
facilitate in every way possible Ids taking
an active interest in the schemes for reor
ganization. I failed, however, in my at
tempt to enlist hm in the enterprise, and
so ended all communication betw een us on
any subject connected with th bank af
fairs, excepting the receipt of tlse follow
ing telegrams, dated April 2, 189) ;
Ak for Twenty-Four Hon ra.
" 'Mr. Marsh,' of the Keystone bank,
came down last night to say ths t it wat
reported you intend to appoint a receive
of the Keystone bank unless something
more definite was done to-day. I believe
nothing would suffer from giving them
twenty-four hours kager, at th end ol
which they may put on paper s me thing
more definite to be presented to ye n. From
what he says they are getting along pretty
well in securing subscriptions to the new
stock. I would recommend appointment
of a receiver be deferred, say one day,
until he has an opportunity to st te some
thing more definite.
Jorw Wavamaheb.'
Reflection on Examiner Drew.
"In concluding the statement," Mr.
Lacey aays, M dKn it my dut y to saj
that, in my opinion, the several reports
made by the bank examiner did not re
flect the true cuKTkn of the bank undo
consideration. Tlaa degree of blame, il
any, which paoperly attaches to 11 . Dwpw
is yet to be sceKtakxL His entitled by
reason of his long and hitherto acceptable
service to an impartial investigation and
a fair hearinv He has recently been sc
fully emphiyeS; by rou of the failure ot
the Keystone and Spring Garden .National
banks, that ft has yet been impracticable
to give the mauer the considers: ion its
importance demands. In the meantime,
however, be has been directed to suspend
examination until Che facts are submitted
and a conclusion reached."
LACEYS GREAT RESPONSIBILITY.
A Look at the Duties of the Corar. trollei
of the Currency.
Washington Citt, June is. The fail
ure of the Keystone bank has directed
especial attention to the greal refponsi
bility that is vested in the oomytrc Her of
the currency. From his office in the treas
ury departmentthecomptrollerhasto keep
eyes on 3,655 banks with capital stock
ranging from 50,000 to $5,000,000 ar d ag
gregating more than a billion d illars.
Each of these banks must report its con
dition to the department five times . year
and the comptroller may call upon tlm at
any moment without warning for a state
ment of their condition on a certain day.
All these reports have to le carefully ex
amined and compared with former reports
and other statements published ty tht
bunk.
Kach Irrector Notified.
If anything Irregular or in the feast sus
picious is discovered, the directors of the
lank are notified and requested to a rrect
or explain, as the cat- may retjnire. It is
the austom to ratify each of the directors
in a separate letter, that then; may je nc
concealment on the part of any of them.
Besides this, there is the control of the
corps of examiners, the supervision cf the
solvent banks in many other particulars,
and tbe settlement of the accounts
of the insolvent, the redemption
of old notes, and the chartering of new
and closing of old hanks retiring Irom
business, to all of which th.-oniptriller
must give his attention.
Difierent IMvsetnne and Their Dut its.
To assi.it him in this he has a force ot
about thirty examiners and ninety twe
otheremployes,Through this offire the I ank
gets its character to exist. The division
of issue sees to its currency; the redemp
tion division sea that- the old notes are
properly chewed up into material for I ulp
ornaments which tourists fancy; the
division of reports keeps its weather eye
on the banks during their varied existence,
and finally, if they are not well managed,
it becomes the duty of the insolvent
division to close them up and try to
satisfy the creditors. The insolvent di
vision has had its handsfull lately between
examinations, liquidations and explana
tions. Not Popular, bat Very I'sefal.
It is not a popular branch of this fin in
clal system. It was not provided fir in
the general plan approved by concre-js,
but with the approval of the powers, bcrn
of necessity, it came into existence a ad
plays a very important part in the system
of bank supervision. Tl bank exam n
ers' reports go there and the fate of a t t
tering bauk i there decided as far as the
government's decision goes.
THEY WELCOMED SIR WILLIAM.
His Keteption at Hi Old Home Very
arm and Frientrry.
LOSDOX, June 15. iir William Gordon
Cumming and his American bride ar
rived at his home in Scotland Friday.
His reception was very warm and hearty,
and tokens of sympathy and esteem were
showered upon him from all sides. Tl e
villagers took the horses from the ca--riae
and dracrged the bride and groori
triumphantly to their home. The towa
presented a gay appearance, the streets
being arched with liowers and bedecked
with bunting. Despite this hearty wel
come by his immediate neiirlileirs, there is
no reason to believe that sir William l:a
anything to Iiojh; for from general societv
to mifii-'Hte the results of such disgrace a
has fallen upon him.
Justified in Killing a Striker.
Media, Pa., June 15. Frank Quinn.
who in March last shot and killed Will
iam J. Brown, was acquitted Saturday.
Quinn had taken the place of a striker at
the Standard Steel works in south
Chester and while himself and mveral
others who had taken strikers, places were
on their way home from work they were
attacked by the strikers, lumn In de
fending himself kflled Brown.
Tobacco Product of Illinois.
Washington City, June 15. The cen
sus office has given out the tolxicco statis
tics of IlJnois. The total number of
planters in the state during the census
year was 2.44U, the totU devoted to tobac
co, 4,155 acres; the total product 3,042.HJ6
pounds; and the value of tbe crop to the
producer, estimattxl on bu.sis of actual
sales, flTtl.WJ.
Wm a Chk-ken Thief by Who4ew ale.
Elizabeth, N. J., .Tune 15. Louis
Wahl, 05 years of aiee, was sentenced Sat
urday to ten years in state prison for
stealing over 1,100 ehickeas since Febru
ary last from farmers in neighboring
counties.
HURLED TO DEATH.
1
Frightful Disaster to a Train in
Switzerland.
PLUNGE THROUGH A WEAK BRIDGE.
Cars Crowded with Passengers Fall into a
River Simty Lives Lost and Many Peo
ple Wounded Tenement Horror In
New Tork Three Tenants Roasted to
Death in Their Beda Great Destruction
of Property by Flood in the Indian
Territory.
Berlin, June 15. A fea rful accident is
reported from Switierland. A railroad
bridge across the Moenichen, a small af
fluent of the Rhine, at Stein, in the can
ton of Basel, not far from Germany, gave
way yesterday under the weight of an ex
cursion train, crowded with throngs of
people who were on their way io a musical
fete. Two engines and the first car. with
all its passengers, first plunged into the
river, while the other cars remained sus
pended over the stream. All the trainmen
were killed, and every passenger in the
submerged car was drowned. Thirteen
cars were srved. The number of killed
w;3 at least sixty, and of those injured
not less than 100. The fearful calamity
has caused a terrible shock in Switzerland
and south Germany. Rescuers hastened
to the scoiJe, and the injured were taken
care of.
DEVASTATED BY WATER.
Disastrous Inundation in Indian Terri
tory Lmiurme Loss of Property.
Arkansas Citt, Kan., June 15. A
gentleman who has Just arrived here from
Greer county in tbe extreme south part of
the Indian Territory reports that the Red
River and its north fork have been out of
their banks for over a week, completely
hemming the people in and cutting off all
communication with the outside world.
The rainfall theae has been simply terrible
and the people are suffering everywhere.
Over half of the wheat crop has been en
tirety ruined and' corn and oats are nearlv
all killed. A ekiud-burt-t inundated the
little town i razer, ruinvag every mer
chant's stock of goods and compelling the
people to flee for their lives. Two persons
were drowned in the town and three in the
country. Along Turkey Creek and Salt
Fork, a dozen or more houses were washed
away. The damage done in the county is
estimated at $500.1 .
THREE PERSONS BURNED TO DEATH.
Fatal Tenement Fire in New York
Caught in Their Sleep.
New Yoke, Jnne 15. Three persons,
members of one family, were burned to
death earry yesterday morning in a tene
ment house fire on upper Third avenue.
Those who lost their live were Philip
Brady, aged 55; Catherine Brady, his wife,
azed -10, and their 13 year-old son, Philip
Brady. The tenants were askvp on the
fifth floor and from the positions in which
their bodies were found it is evident that
they were ict awakened until the fire hail
them surrounded. Their bodies were
bnrned almost beyond recognition. Many
others of the tenants had narrow escapes.
Half a Million Dollar Fire.
Philadelphia. June is. The main
tuilding of the abattoir, on the west side
of the Schuylkili river, opposite Arch
street, was completely destroyed by fire
early yesterday. Charles Hocie, a curios
ity seeker, was hit on the head by a flying
timber, and received injuries from which
,he will probably die, his injuries being a
concussion of the brain. It is understood
that the total loss, including machines,
building, sheds, refrigerating apparatus,
and dressed Iwef wouid amount to nearly
SoW.oTO, fully insured.
A Curious Fatal .Vx-ident.
Bangok, Me., June 15. Luther Holt,
aged t, of East Exeter, while walking in
the woods lay down to ret in the shade of
the roots of a large overturned tree.
Workmen not knowing of his presence,
chopped the Trunk from the roots, which,
when released, flew back, into the place,
imprisoning Holt !eneath them. He was
dead before he could lie released.
Kipped in Half by a Saw.
HlHSOK, Wis., June 15. Ole Nelson, an
employe at the Nelson & Co. large saw
mill at Lakeland. Minn., was instantly
killed Saturday by falling on one of tbe
large saws. The saw passed up hi body
in such a manner as to cut him into two
equal parts.
Killed by the Fast Freight.
MAHANoy City, Pa.. June li-Two
Poles named Andrew Kratowskis and
John Makin were killed by the fast
freight on the Rfadinir railroad, near
Mahanoy Plain, Saturday night.
Probably a Happy KeJease.
Vienna, June 15. A barge carrying 500
convicts on the Volga river, in Russia,
the convicts being destined to Siberia,
sank near Novgorod and many were
drowned.
Life Sentence for Uooe Zodolske.
Lancasteh, Wis., June 15, At 2:15 p.
m. yesterday the jury in the Zodolske
murder trial reached a verdict, finding
Rose Zodol.ske guilty The convicted
woman was taken to Waupan to-day,
there to serve out her life sentence. Hie
poisoned Mrs. Dr. Mitchell, and later Miss
Ella Malley, in order that she miirht pet
uu opportunity to marry Dr. Mitchell, the
is a very pretty girl, and sympathy is with
her so laras the evple are concerned.
Nine-Hour Day fur Printers.
Bston, June 15. The Typographical
Union has adopted a resolution favoring
a nine-hour day after Oct. 1. It was
voted that all moneys contributed to the
Childs-Drexel fuad be placed in the hands
of a board of trustees. The decisions of
ex-President Plank during the year were
approved. Tbe convention adjourned to
meet in Philadelphia Ja June, lSi'J.
. Strike at Chicago.
Chicaoo, June 15. Over 1,500 men en
gaged in the architectunal iron trade and
its branches, including the metal workers
and patternmakers, went on strike for
eight-hours' work per day at the rate of 30
and 20 cents per hour this morning. This
decision was arrived at at a meeting held
Saturday night.
Natural Otm in Btlnncwova. HQ
Wakken, Minn., June 15. In sinking
an artesian well two miles west of this
city, natural gas wan struck at an depth
of twenty feet. It 'comes out with such
force that it throws stones thirty feet high.
The gas was accidentally ignited and a
flame shot into the air forty feet.
HUMPHREYS'
Da. Hi-armterr tSFBLWcw are nlen tin cally and
carefully prepared prwcrluuons ; lued tor many
year In private practice 'Ilbracoeaa.and forever
thirty years used by tile people. Erery tingle 8M
ciflc I a apecial care tor tbe dliaate named.
Tbeee Specifics cure without dragging, purg-tea-
or reducing tbe a.vnem,and are La tact ana
deed the vereign reaiedieeef IheNVerld.
un or rnnctr a. sos. crus. nicn.
irevera, iongrann. mnammatann. ..
Wirnh Worm Fever. Worm CoUc..
3 CrytBB Colic, orTeethiag of Intanta
Marraea, or vnuaren or aauin...
Dyaentery, Griping, Billow CoUe.,
term. Morbaa, vomiting ,
radar b ea. Sick Headache, Vertigo
8 Cfi.l
T I'oasrba. Cold, feronchltlft...
S Nearalgia, Toothache, Faeeaehe .
w iieaaachea, bica ueadacne, vera
19 Ilvaaenaia. BUlona ittomarh
11 ruppreaaed or Palafal Perieda.
'2 Whites, too Prof tue Periods
13 Croap, Concrb, Plfllcult Breathing. ...
14 Salt Hbram. Erysipelas. Erui'Uoni.
15 Kheamatifeai, Kbenmatic Pains...,
18 Fever and Agae, Chills, Kalaiia....
19 Pile. Wind or Bleeding
19 Catarrh, Influenza. Cold in tbe Bead
$0 Whooping Ceagh. Violent Couvha.
44 General hebilH v.thysical Weakness
27 Kidnev Itiea
iiS Nervoaslebilitv 1.00
SO triaary Weakneaa, Wetting Bed. .50
i Diseases f theHeart.falpHatlon l.OO
PoM by rrugvtis. or sent postpaid on receipt
cf price. Da. Humphreys' jLutvai. (144 paves)
richly bmnid in cloth and gold, mailed tree.
HUMPHREYS' MEDIOIWE CO,
Cor. William and John Streets, tirw York.
SPECI Fl CS.
$100 And Upwards
CAN BC ISTRfrTE-D II
A POSITIVE AND SAFE
I 5 per Cent
Dividend Paying Stock.
Full prticnlar and
Prospects f can be hsd
on application or sdl reefing
S- L. SIMPSON. Banker.
64 Broadway, N. Y.
AGENTS OF EVERY KIND
Insurance. Fraternal Order, book or otherwise.
Members pel $m) in one year. They py bat $1
a eek. Anybody cn make at the lowest fist
each week easily. Everybody wants a certificate.
becaoe for each member ibt V bring in they ret
their 1100 a month earlier, "fhis is a good ihlte
and don't mistake it. Address
J. L. UNVERZAGT. SeereUry,
l.Wirt LnuifioBsl , Baltimore, Md.
BUYABUFFALO
Wyoming- lot. It's the coming cltv of Wyom
lair. lias waterworks electric lights, flouring
mills. Located in the garden of Wyoming
hroduced the prize potato crop of the United
State in lr). cr maps and further infor.
matioD apply to
MAXN & THOM. Buffalo, Wyo.
-NEW MUSIC HOUSE-
No. 1804 Second Avenue.
Houscl, Woodyatt & Co,
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This firm have the exclusive sale for this county of tb
following celebrated
Pianos eird Orrrais.
WEBER, DECKER BROS., WHEELOCK.
ESTEY, AND CAMP & C0.'3 PIANOS,
And the ESTEY, WESTERN COTTAGE and FAR
RAND & VOTEY ORGANS.
ty A fall line alfo of small Mneical merchandise.
CHAS, DANNACHER,
Proprietor of tbe Brady Street
All kind of Cnt Flowers constantly on hand.
r?'n S 0D"e Flower Store-
One block north of Central Park, the largest in la. 304 Brady Street, Davenport, lovi
This space is reservedifor a plat of
SCHNELL'S ADDiTJON TO THE CITY OF
ROCK ISLAND,
which is opened for the sale of lots. It is loca
ted south of Ninth avenue between Twen
tieth and Twenty-fourth streets.
The Plat will be ready in a few days.
Summer Goods
ARRIVING NOW.
We are, opening- tne moat complete line of Hardware fpeeialtiea ever
Island beside our rrrnlar rook of staple and bnMera Hard
and Mechanics' tools.
taBeck
Pocket, Table Kitchen Cutlery,
Nails, Stem. Goods, Tikwaee, Stoves, Etc.
4
TBClAXTUS-aiouu Cooke and Banrea, PlorIda" uid WUber Hoe Wats TTralit
ItarMa Steaaa Boners, Pasteur Otrrm Proof FKtere, Economy Fnraaoee, Tla
- ""v" """ i-iHimnns, jopperKnuuilns and Eteaa Tzttlcf .
BAKER & HOUSMAN,
1823 Second avenue,"Rock Island.
