The New York herald., 1877-08-31
CHICAGO SAVINGS BANKS.
Spencere Manipulations for
Self and Friends.
THE CAPITAL STOCK GONE.
A Creditors Committee APP
pointed.
[DY TELEGRAPH TO THE HERALD !

CHICAGO, August 80, 1871
| crowd OF anxious depositors again appeared at
the doors OF the STATE Savings Bank at early hour
this morning, completely blocking up the stree, in
front OF tho building. Fully seven hun
dred were there, all more or less ex-
cited when, a, about half past ten O'Clock,
Mr. NJ A. Decker, prominent attorney,
addressed the assembagc, ne advised the crowd that
the best mode OF procedure TO hold a meeting In
the afternoon to decide upon their future
course. He counselled moderation and discre
tion in all their proceedings, aud finally
suggested that the meeting be held on the
corner OF Madison Market Streets at Two o'clock.
This suggestion was met with approval and the crowd
gradually dispersed.
''LoSo JonS's" OPINION
Tho Hon. Noses j. Wentworth, known as 'LoDg
John, " one OF the oldest and weathiest business men
OF Chicago, gave HI, opinion OF the matter TO the
HERALD correspondent this morning, and his may
be taken for that OF tho leading men here
Said he, "This trouble recent origin Il began
back to where John e. Haines Lett. and the bank was
bought by lot OF men who enjoyed the confidence Of
the public ana have betrayed It. sThey betrayed their
trust by selling out in turn, at time to such
man Spencer. They got out, and now
stand back and say .'Wc knew 1t all
the tmc." Tho whole thing their shoulders.
These people went into the because they
whom they condied in have turned over their money
to swindler They never should have allowed their
names to DO used for such purpose.
FIDELITY BANK.
large crowd gathered also Ia front the Fidelity
Bank carly and began heavy upon tho institu-
tion. Half u dozen policemen Ia d aud tried
not DO moved. They were desperate, and
line formed Tar out into
the street extending along the block Lasas street
| II took policemen than there were on hand TO
move on those excited. angry men, ana above a the
inuriated and determined women who did hesitate
to argue the matter pretty vigorously Al that time
fuly thousand persons were IN the line waiting
| their turn.
Mr. Hanes tho pres dent was inter iewe ed at noon
and appeared conndcnt OF going through all right
| he knew the bank was more thaa solvent upon any
reasonable basis OF inquiry. and was prepared ior
| good pull He lad had large humber Of
offers OF help from the city's solid men.
and could, doubtless, command million or more
half AN hour. So iar they had necessi sity to
ask aid. Whether they should reach such 4 point or
not remained 10 DO seen. Al any event, they were
| open and should stay open.
| BANKS
For some reason inc run upon the Merchants Farm
ers and Mechanics Bank has ceased almost entirely
while the dram upon It's less fortunate ueghDors has
been redoubied. None Of the other Institutions are
! menaced vt present
REVELATION OF IsIoulry
The transactions OF The officers ana directors of the
States Savings Bank. showing how the affairs OF the
concern were recently manipulated for the benefit OF
the Spencer family, have come to light 1t seeing
that the business had been badly man
| aged that the capital stock was exhausted
| and worth no more than much white paper II was
held principally by Spencer and his brothers-in law,
cousins nephews and other Relatives more or Iess re-
mOcly connected They knew the crash was coming
and the only thing that remained for them 70 re-
store the worthless share, for which they had
never pad, TO the bank, that by could the
creditors receive or bring any clam against thcm
based upon their notes.
AN INFAMOUS TRANSACTION.
To-day the minutes OF the last meetings OF the
directors wero found and they furnish record oil the
There were present ID. ID. Spreech representing 275
shares; D. 5. smith, 90; G. q. Buikey l0o W. H.
Turner, Turner so R.y GOODWIN S%S' A. S. Guild, 100
trustee, 7; r., A. Ray, co. F. 4. Newton, 8; Q.
d. shedd, TO- Ia the lrst place resolution
COMMITTEES giving authority by which debts
10 the Institution might be pad by The
same committee. in June 2s by which
$500 shares returned TO the bankrupt concern
the winch had been given Tor them cd
to the makers, Guild, Buckley and Newton was also
| approved.
| SPENCER TAKEN CARE or.
Having safely put three ot the gang out of troubles
way IN the collapse that was to follow, they took up
Spcncer's case. His noto OF September 8, 1875, had
peon 'uhen ~ or oap's STOCK Ior slio, olS 2a
II seems that he mad PAID tho amount Ol the
face OF the stock bv the the shares to the
bank according to the preamble OF the resolution pre-
sented by member Of the Board, and It was accord
ipgly resolved 10 accept his note for the balance
$S9,24o 73. This was done at u time when those men
knew Spencer could not pay such oblig CATION but
the paper was placed among tho assels
MORE MANIPULArioy.
By another resolution sixty shares held by + A.
Ray were tax en- back and his note returned.
lO0 aud Newton's five shares were also iafcn
back, which finally closed out their interest in
the rotten concern. Tbe next sw,ndlc was
TO take back Guilds 100 shares aud deliver
up 10 him his note and $500 mortgage which he had
given Tor them. w. H. Turner was indebted to the
instituton like a the rest oil the precious gang but
they would never want the money, 80 ho was gwen
three, TOUR and five years In which TO pay his
$4,000 due. When they knew that the bank
would pass out OF existence within week On August
% the directors met again and approved the action
the last two meetings OF the stockholders mentioned
above. They were then nearly ready for tue collapse
Mr. u. Goodwin only rem. ined to be released AS
far possible. They met again the 23d ana took
back twenty shares IRON him. retaining his notes
therefor. He was given years time his indebted.
10 the institution, aud tho bunk inaors ed
80 600 interest due IN the bank on the paper The
next day the Board met ain the rum ed
concern over 10 Abncr Taylor.
ANOTHER FINED
Late this afternoon another note ol Spcncer's TO the
bank for SAB III 4O found Where the money IA
that II represents no ono knows but Spencer. 1t DOW
appears that the lttc ready money upon which
Spencer lett Chicago was obtained by 81 800 loan
which ne gave mortgage for al the real estate he
IL said that the way he into on
o u large number ot the shares o. the bank was by
taking back Tor the bank tho deprecated shares and
then buying them of the bank Tor himself
and giving his note IN payment In many
cases II is doubted whether hc even wen, So
far MS to gye his note but quietly appropriated shares
bought with the banks money There Will unIoubt.
edly b" startling developments YET but II Is not
natural that much comparatively OF ng char.
actcr TO Spencer como long his man Tay.
or Is inside and managing tue in his interest
a CREDITORS COMMITTEE.
The creditors OF the bank held an open meeting nj
| two O'Clock. aud appointed n. j. Wentworth, /. T.
Letter, Michael keclcy, ]. A. Moran ind Bernard Cal
anau committee TO represent them IN the sol le.
mcnt Of tho affairs oi the concern Colonel Taylor
did meet with tho creditors to make "a statement
as announced yesterday, the ground that the IN
vesiigation had not proceeded far enough to make
| possible.