Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1890-05-08

Cashier snhKIusTs Speculattons
Cause a Sunpenston.

NogMsrows, NAV 5,--The montgomery
Insurance, Trust oni Safe Deposit Com
psny OF tails city suspended payment t-,s
morning, run began rs soon as the phase
opened. Shortly bsiore 8 O'Clock Vice.
president Chain OF the trust COMPANY q
pesied and read the following to the 80 or
more dapositors who wero Ia line at that
time: THE board OF directors. as az pres.
ent advised, deem It Tor the interest Of all
the depositOrs that the Montgomery luaur-
ancs, Ernst and Safe Deposit Company
should suspend payment and therefore an.
nounce that no more money will now bs
paid. From the examination OF the assets
which has been made we feel confd ant in
saying that all tha deposltors will bs paid
in full and that 1t Is not likely that the som.
pauy Will sustain amp loss. ALI trust flnis
are separately inyesteha and safely secured.
As soon as they heard this the deposi.ors
assembled went home, confident that they
would get their money. The suspension OF
the trust company 10 due to the unauthor-
ICED loans made by the treasurer, William
+. Slingiu I, who resigned on Saturday aud
assigned his property to the company Mr.
S!iaglun was also cashier OF the Montgom-
cry Bank, an institution closely allied 70
the trust company, and there has been
run on the bank to-day. which, however,
exhausted Itself about O'Clock.
After banking hours President John
A'AAANAuAAi VI NuO lNO HnD Is u
brother OF Cashier Slingiuff, furnished thu
following figures In relation 10 the DAVIS
transactions: Payments by the bank. SlU7,.
1913; deposits, $40. 1871; payments 10y The
trust company, $4,000. OF the amount
taken out Of the bank &SS 900 comprised
the regular monthly Withdrawals OF three
railroads.
President slingluff said this evening that
the trust company would resume as soon as
possible. The directors were going 10 con-
vert collateral into cash, aud II favorable
arrangements could be made they might
resume within a day or two, or inside Of a
week at the latest. They had goas over
tbs paper held by the bank and trust com
pany, and the loss would probably not be
more than 100000 and In no event not
more than 100000, aud the surpluA OF
S3OO,O0O amply secured every depostor.
some time ago II was discovered by the direc-
tors that Cashier and Treasurer Sllngluff
had borrowed 100000 on his responsI.
billy. He secured the loans with what he
considered ample security, but the com
pany demanded additional collateral, which
was furnished. The collateral Is 70 CON
stst OF stock OF the Philadelphia Finance
Company, Peoples Railway Company and
American Lie Insurance Company, three
Institutions In which the syndicate
controlling the suspended Bank OF
America OF Philadelphia, and tho
ln5Hulonb IN New Jersey which y carried
down are largely Interested. For so'ne
months past It has been known Ia financial
+ circles nero that Cashier Slingtufi was
/ largely Interested ia business enterprises
tnat were c!assad rs hazardous. When his
father, who was wealthy, died about eignt
/ Years ago, no inventory OF the estate was
I flied aud tbs 500 was supposed 20 have Ia
! heiited IN the neighborhood OF S!51,00l
sud therefore no surprise was occasloaed
FFUT Nts A..
tion. Since the announcement OF his resig.
nation It TIA, bsen learned that the cgshlsrs
snare OF the estate IL less than $50, 900, aad
I tne estate being still intact 10 mas not
drawn any Of this amount. He has opsr-
! atei altogether o. money borrowed from
/ the bauk, must company, several building
and loan associations aud from individuals.