The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-09-03
CIIICAG0'S BANKING FRAUDS
TIE DOTNGS or ID. ID. sPENCER, GUILD,
HUXLEY & COMPANY
From six Hundred and Finy Thousand Dol
inrs to Two Millions OF the Depo-itors'
Money Missing-Thc bank Officers Flights


Pinned 20 ono Of the leaves Of the minute
book Of the bank were two resolutions. of which
tho following is one:
Ro,r~i That dividend m ioo per cent 10 he paid
the surplus funds this institution, i. hereby declared
payable to all persons holding stock on the ij da, ~
March. 1873 shall appear by the stock hooks Of SAID
institution at that time SAID dividend shall be due and
payable on the 9Th day OF March. 1873
Col. Taylor. the assignee after interviewing
his clerks on the subject said that there was no
means of nsccrtaining the various dividends
declared without going through the books from
beginning TO end.
There was no systcm at ALI They did
their business in n hat Frequently tickets
were carried along for months ns cash before
being charged up To- the proper account"
bc tm"rn i II ds,re9"nn Of about 1000
the books aud tho assets We have found in
What arc tho actual nsscts7"
About t2OOOOO0. and half OF that amount
Warrants arc to bc sworn out against spcn-
cor. Guild. and Buckley. Meantime. Sp .nccr il
DO you think he will ever como back>"
- hayc been SO c9nlldipg that think he VIII
whom things quiet down."
Doctor. do YOU know nnvihinr about that
note Of Spenccr's for $41p.171.iO -
Nothing whntcvcr. knew nothing OF its
existence until read of its discovery in the pa
=" Dc you know that he took any securities to
ii asked Saturday afternoon e the securities
were in the bank. and he said Yes.' II w;ls tho
understanding that he should take none-Only
a memorandum"
Spencrr's system Of finance was uniouc and
worthy Of study. inasmurh as hc managed To 10
those things without any captnl which are ore
dnarily done with capital. He would buy
stock in corporation, give his noto for IT,
and then scll the stock for cash thus becom.
ing u capitalist. 1t Is an casy system, and tho
wonder ~ that IT has not been found out long
ago 10y other Chicago imam 'crs Here il an IL
HStrati3n OF Mr. spGnrers financial Senius:
bought stock of Mr. Kiddcr. and paid for 1t in
cash. He borrowed the money 10 buy this
stock Of the Cook County National Bank with
with when ne was connected NJ the time Thus
Mr.. Spencer became connected with that lofty
concern. owning stock pnid for with the Lawful!
the Cook County Bank became due. he took the
money from the deposits Of the state Savings
lnstituiiioh TO- pay !, Viii. ms n'aeeu oPehSor
\, s,crday tho attention 81 some OF the
| legal gentlemen who are looking after the
interests of clients was directed TO the
manner in which Sp.ncrr's colossal in
| Germ came To be- contracted. So far they
| have not succeeded to any great extent
| in tracing the matter. II scons that there are
| no minutes in the proceed ng~ Of the BOard Of
| Dir tors showing that this note was ever dis
| counted 10y the bank II all. II seems IL though
| spencer took hemoney ana made no record oil
| IL whatever.
Tie receiver has not found any money. Nor
| has he found any bonds that can be- turned into
money The people that are ov"rlauling these
| assets" rs they are chilled, find lots Of mort
| cages upon real estate bought for Il rise. some
mortgages upon lands that will prove good
enough If one Of these days business picks up
| ana The drcritfu dirt isn't sold for accumulated
and unpaid taxes. Then there are hush heels "
| other interesting and pretty things In the way
of personal notes and securities This last item
viii figure up IL the handsome sum I'm gures)
Of iG2G.OOO odd Of very -haky. and. indeed.
wretohcd stuff scarcely worth anything
Tho real estate loans mostly good and Sc
| cured by mortgage may b" called 5000 900:
| the r.Hy and hnd personal l9nn- aud COLI
| lHiorals referred to one may lot down for over
| sGOu.OJO: while TIE bonds of all SORTS come
! u f'r nonrlv ;7un.nO0. 81 which sisj.O00
| in Calumet stock may be- called worth 20 or
| 80 o'it- 90 $50 ola tle dollar. and the agreeable
| remainder 81 over e3up.um; possibly worth
nothing or rrNt to nothing There is mis-
| ceancouS' find for sfj.uuD ol 80. AMI The bunk
| building lwhi b. uulikn Spencer. wis found in
| the same place on La Salt street which 1t al
ways iregurnt"d is pat in for sl2jnno. The
T. suit ~ all llrllNt 'Nu- -u lar .- that $500 npD
| or. taking the probable shrinking s,mothing
| III sGjnnuwill he.att ruil. iunud in some sort
| of available cash or rug.Hf.N with NA4cn To- pay
| over $1,000 1000 II l.dhii.In-.