The Topeka state journal., 1897-12-23

banks, and at a meeting of the COM
mittee a proposition to issue $1,000. O00
6-per cent preferred stock of the Rec
ord Publishing company as collateral
for loans, was considered. The inVeSti-
cation developed that this offer was
not sufficient to justify the banks in
advancing the needed funds. The MEM
bers of the clearing house say that no
other banks are involved in the failure.
Concerning this phase OS the case. Mr..
Singerly said today that arrange
ments had been made to make an extra
stock issue of 81, 0OO, 900 by the Record
Publishing company and that it is
thought that would be satisfactory, but
somehow or other the plan fell
through"
Mr. Singerly declined to discuss the
banks troubles. He said the state
ment which would likely be issued by
the bank examiner would explain the
situation
Concerning the efforts made in finan-
cial circles in the past few days to save
the Chestnut Street bank from failure,
prominent hnancier said this after
noon that the large financial interests
of the city had combined to advance
the amount of money reported as nee
essary but q final investigation devel-
oped condition which prevented these
interests from arranging to extend the
needed relief.
1t was further learned in this con-
nectiOn that the clearing house aSSOci-
alton. which is composed of all but one
or two of the national banks within the
city limits. was appriSed of serious
state OF affairs in the condition OF the
Chestnut Street bank and a request
was made that the banks trust com
pauieS and other large financial con-
Germs should unite in extending aid It
is stated that If Mr. SinSer1y 5 indebted
ness to the bank could be hquidated all
danger of failure would be averted, and
it was suggested that these various
financial interests should join in sub
scribing to or underwriting a proposed
issue Of $1,000, OC0 6 per cent preferred
stock of the Record Publishing COM
pany the proceeds Of which could be
devoted to the liquidation OF that in
debtedness and other obligations OF Mr.
Singerly. a statement was submitted
at the same time showing that the pro
fits of the Record last year amounted
to 100000 or sufficient to pay the in
terest on the proposed issue of pre-
ferred stock twice over.
The response was almost unanimous,
and as but few of the institutions or in
dividuals invited to cooperate refused
to do so no difficulty was experienced
in raising the $2,000,000 required.
A member of a leading banking house
was invited and consented to represent
the subscribers in the negotiations and
at the close OF business yesterday 1t
was confidently believed that all OBJ
stacles to the banks continuance in
business had been removed.
Upon final investigation, however it
was discovered that the affairs of the
institution We're more deeply involved
than had been supposed and the cOndi-
tion disclosed was such that the amount
of money raised was deemed INSULT
cient to relieve the embarrassment-Th The
large financial interests referred to
were therefore, reluctantly compelled
to withdraw their prOffer of aid and
the result was the closing of the doors
this morning. The meeting at which
this decision was reached was held last
evening, the financial interests being
represented by a committee of their
number. and it was not until nearly
midnight it was decided that the cat
astrOphe could not be averted. The
banks affairs have been under the
scrutiny of the comptroller of the cur
rency for some time and he has paid
several visits to this city in connection
Herewith. In banking circles the
embarrassment of the Chestnut Street
bank has recently been an open secret.
The bank has for some time been a
debtor at the clearing house in making
the daily exchanges, and on one or two
occasions some difficulty has been eX-
perienced in meeting its balances This
morning however, the Chestnut Street
bank was a creditor at the clearing
house to the amount of $4,000.