AMERICAN SWINDLES.

Temuka Leader, Issue 2231, 23 July 1891, Page 1

AMERICAN SWINDLES.

Recent cablegrams announce the conviction for embezzlement of the late city treasurer of Philadelphia. American papers give some particulars of the “ gigantic steal ” with which he was connected. President Gideon W. Marsh, of the Broken Keystone National Bank, fled to parts unknown, on top of which came Bardsley’s resignation as city treasurer. Behind these announcements is a most astonishing story of financial jugglery, which has so far resulted in the closing of two national banks and a loss to the city of 680,000d0l and to the State of 930,000d0l of taxes. John Bardsley, elected city treasurer 16 months ago, besides collecting the city’s moneys, also acted as agent for the State for the collection of State taxes. As soon as he entered the office he began using the city’s moneys for his own gain. He placed44l,ooo dol in the Keystone and 144,000d0l in the Spring Garden National Bank, both notoriously weak banks. He also placed 400,000d0l in the Third National Bank. The president of the last-named institution has testified that he paid SOOOdol a year, equivalent to 2 per cent., for the privilege of having this deposit; and this money has been traced to Bardsley. The Keystone was the first to topple, and then followed the Spring Garden. The first-named was wrecked through the stealings of its president, John C. Lucas, which amounted to 900,000d01. Though Lucas died two and a-half years ago, the looting of the bank was never discovered by the directors until January last; because President Gideon W. Marsh, who was cashier under Lucas and succeeded the latter, doctored the books, and fooled both the directors and the United States authorities. Bardsley had in addition to the city’s money 930,000d0l of the State funds on deposit in the Keystone Bank none of which appeared on the books, When the Keystone Bank closed it was given out that its liabilities were 1,200,000d01, but it now appears that they are 2,100,000 dol. It was testified before Commissioner Bell that when Bank-examiner Drew came around twice a year to examine the accounts President Marsh would borrow from the Spring Garden Bank all of their spare cash. As much as 30,000d0l would be borrowed at one time, and this was palmed off on the examiner as the Keystone’s money. It is thought President Marsh has fled to Brazil.