, 1876-04-30


WAsH1sG1oS, D. c., April ga. H. Buf:cy,
Receiver OF the Cook County National Bank,
Fl. s. Monroe, hia attorney, with Spencer, ot
The City Savings Institution. and Judge Beck
with, his attornev, spent the entire day with the
Comptroller OF the Currency in examining tne
papers Of the Cook County Bank, ane
spencer's papers With reference to the
liability, il zny, Of Spencer, to the Cool
County Bank. Every paper in the case
was carefully examined, and all the
circumstances connected with it explained, and
counsel on both sides heard with respect to all
tho circumstances. Comptroller Knox, after
careful delberztion. has arrived at the conclu-
zion that Spencer under the law ia not indebted
to tho representatives Of the Cook County Bank,
nnd Comptroller Knox has accordingly 1ecom-
meoded
THAT no SUIT BE BROUGHT.
This undoubtedly concludes the mstter, as
whatever action Burley might take must finally
be approved by the Comptroller. The decision
OF the Comptroller is to be reported to the meet
ing Of the creditors Of the Cook County Bank,
which is to be held Tuesday next. Receiver
Buriey leaves for Chicago tonight to attend
that meeting.
This decision Of the Comptroller is evidently
based upon the opinion that Spencer, at the time
be sold his interest III the Cook County National
Bank to Allen did not know that, The latter WAS
lnsolvent, although it Wac alleged that the
money with which Spencer IVES paid for bis in
terest was taken from the deposits in the bank
The arguments Of the attorney OF Spencer
before the Comptroller disclosed facts not hith-
erto known in connection with the Cook County
National Bank. Tho facts and the evidences
which ware presented to the Comptroller to-day
for the FIST time we're
A SURPRISE
both to him and to Burley, the Receiver It has
been frequently charged that Allen todk money
from the deposits in the bank to pay for the
OF the subject By the Comptroller shows
that this could not have been the fact Spencer
cold to Allen 2,G50 shares for the gross sum Of
e3l2.000. Spencer exhibited to the Comptroller
papers showing that this stock was bought by
him With different funds, and did nc. come out
Of the deposits Of the bank. The 1850 shares
we're suld for S312.000. OF tins sum, Spencer
and his attorney rere able to
TRACE EVERY DOLLAR
eg the original vouchers. Twenty-Five thousand
Dollars OF it Was in paper OF 6peEcers duo to
emo Of the Bo~enH, which Allen took up. Sey-
tnty-hye Thousand dollals was in note OF
6nencer's to the State Sa'1ugs Institution. which
Allen paid. Oue hundred Thousand dollars OF
It in cash WAS from the Dee Moues house
Khich was charged on the books of the Cook
County National to the account OF that bank.
Eighty thousand dollars more WAS accounted for
III another piece OF paper, which was submitted
- paul. &HA &uo 1Gud4o4DS *21EUuU HAo ELL
accounted for in vouchers. There we're vouch-
stn for the entire {312.000. The Comptroller
seemed satisfied from tho exhibition OF these
vouchers that tbs payment made by Alien to
6pencer wRs
OUT OF D1FFEREET FUNDs
Hom what has been Eeneralls supposed.
The second point OF consideration WAS the
guarantee made by Spencer oil the collection of
z.G5-l00 Of the paper then IN bank. The attor-
ncss of Spencer here produced full release,
but offered to make good the guaraptee AZ to
my OF the original paper specifically guar
snteed which might still bo in possess
zion Of the Receiver. Spencer claimed to
bc able to make good that guarantee as to the |
paper which it covered. 1t appears, however, |
t1at the Receiver has none Of the paper, having
Ill been disposed Of BY Allen
At d RU1SoC5 SACRIFICE
Among the paper guaranteed BY Spencer was |
S10J, 900 OF Sam Walkers, Endorsed by Potter /
Palmer. That paper vas paid, but Allen took |
rddi iona1 paper without Palmor's Endorsement, |
which 10 not covered by Spencer's guarantee.
Ths Comptroller, upon = full statement of the |
fact, gave Receiver Eurley specific written III
st1uct1ons that Cook County had no claim,
End that no suits would bc brought sgainst
Spencer.