, 1877-08-30
THE ASSETS.

1t was slated In Tue Ts1nuEE Of yesterday
that among the assets Of the State Savings In
stitution were bonds aud etock Of tho Calumet
d. Chicago Canal Il Dock Company to tho facc
value Of &6O0,ooo. This is indeed 1nost meIan-
chcly truth, the bank holding 3,458 shares Of
the stock, tho par yaluc Of which Il $100 per
share, It has also bonds Of tho Company to
the amount OF shout $3oo.0o0 The way in
wh!cil Il got thcse securities wa4 little conplt
Gated, and tho transactions extcndcd over con.
siderable time. The thing began when John e.
llaincs was III the bank It was loan Of $l00,-
600 to the Dock Company, which wns then {5cp-
tcmber, 1s71> In high feather, it, managers
thinking that they lad the biggest thing ln the
Northwest The security Was in the form of q
promisaory potc by the Company tor $780,
000, and II had pinned to 1t
common stock to THAT amount, With u
memorandum that It was to DO considered pre-
fcrre1 stock 30 far AZ to pay per cent interest.
This loan was considered big thing. There
uerc btas made to tho bank to take Il on It's
hands At premium, but they wcrc refused.
the lustitutfon deciding to hold on to II, al
though soma OF the Directors thought |. best to
Let It 60 since 1t was alwaYs wise to sell tht4g
when It commanded d premium. THIS loan WAS
for ayc years, and there WAS an option IN 1t that
honds could bc taxcn II the holder Of tho s.ota
saw ht. Spencer didn't favor the Idea Of turn.
Ing II into bonds, because he saw In thls stock
pinned to tho aots onc-sI1tccnth Of thu total
stock OF tic Canal T. uoglk Company. He, too,
thought II Was All Immense t!iu., aud believed
that It would be q graud Idea to get control OF
tho concern. 80 ho set to work.
BvyyNa up sTocK WHEREVER ILL couLp ElNp
IT.
It was boueht-the bank footing tho bllls-at
ali the way from 10 up to 30 or %, and probably
tho shares which It has have cost It In round
numbers 100000. II. H. Honoro had about
@lo0,0 900, whicl, he had showed up at different
p,accs and times for IS, 30, 10, and 30, and this
Eas swallowed up by Spencer, rho was pcrpet-
ually buying In wherever ho could get chanec.
So It casno TO pass, that o..s day tho books
showed that 4. D. Guild held aGl8 shares for
tho state, and Spencer 842. subsequently the
Guild sharcs Ncre assigned to Sheridan Waite,
then President OF the Dock Company, and tho
ccrtiheateswcr retransferrcl Ia blank by Waite.
Hence spcnccE could Ray With apparent truth, as
ht did say on some occasions, that the bank
didn't own dollar Of Tue stock.
In tho carly part oi 1875, Spencer, still 1gur-
ing to ret control Of the Company, formed aeo-
a!tion With Waite. who had about Axty shares
and number Of proxies, great many people
having contldtufe IN him, anl between them
thcy took control. Wsitc was elected President,
and Spencer substantially Ean things, telling the
aoulo Inquiries By ono Of i,s n,ctnbers, that,
"by God, this Is going to bo a oneE Enan thing"
Thn result Of this was that Col. 6uweu, who
| had previously been managing Atlatrs, wAs
frozen out, aud tho sam!nlst,ati1a Eassea i,to
| under whose control no lands hare been sold
| and no taxes paid for Two years, SO that the
| property Of tho concern has twice been sold out
Al"ng III august Of 1875 tho Canal 4, Dock
| Company z..-..-.'
WENT INTo rnn BOND BUSINESS,
It issued 81, .0U Of these Instruments, bear
Ing . per cunt Interest: Thee bonls, n Kres:
New York, ono Of tho Cirectors. for saio.
/ Along about that 'ttmo tho bapk had advanced
! to thc CompanY. ti75,00o and lind nothing to
| sh0w Tor # but bllls receivable Spencer took
bonds Of the face value Of $4D, 0oo rs eecuFIty.
! Three months ago he vent on to New York with
| John {. Uore. liz had then decided to use tho
privilege R!sen when the original $lD, ,01 Ioal.
was made, Ut converting II Into bonds. 30 he
| went 10 New York tO zee Cutting. who lad y
lot Of tbcse securities III hts hanIs, for tue ur-
pose Ut getting tho boras. Cutting At dFst de-
murrcd. aud said 1t MA. All outrageous uro.
eecl!nE, but subsequently, inko.nuctl ~ they
| we're simply hsndcd'to him for sale, hu turncu
over to Spencer bonas enough Ut 10 to cover tue
| $tUe,000. Cuttings objcetsen to the tsansac-
fton was 10 great howcses, that be rendered tts
resignation IL director. And thts how II Ia that
the State Savings Institution Is 'oadcd down with
rising tAJ,0 Of utte{ly yalue,css securities:
These bonds were secured by Ill tbs property OF
tue Dock Company. which VAS yulue.t-tha
acscagc-1J James Il. Rcca at 81, ,00U, ,UUl 5con-
| s,ie1sd at the tin,e Z moderate, conservative,
| bard l-pan estimate.
SOW A. TO THE vALU1 OF THE SECURITIES.
| The stoek ta hopelesslY worthless. Whatever
| value 1t may have lad was destroyed BY the
/ mad ambition Of epcucer to suu the concern,
I and tt WtlJ nEFef' amount to 1GYtunW QFultts