The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1897-12-30
CHESTNUT STREET NATIONAL BANK
IN THE HANDS OF BANK
EXAMINER.
SUSPENSION A GREAT SURPRISE
Failure Due to Shrinknge In value
of Paper Mill Securities Held by
aank-Not Much Excitement
Among DepOsitOrs.

Chestnut Street Nationa! bank, regarded
ms one of the strongest financial instltu-
tons in this city. The suspensioh car.
ried with it the closing OF the CheStnut
Street Trust and Saving company, DONG
business under the state banking laws.
William A. Singerly, publisher of the
Philadelphia Record, is president OF both
companies, and the same men with one
execution act as officers and directors:
The first information the public received
that the banks were in trouble was III
the fern of a notice posted this morning
on the door of the building occupied by
the two concerns signed by National
Bank Examiner William Hardt to the
effect that the Chestnut street bank had
closed its doors pending an investigation
of its affairs. No statement oil assets
and liabilities is available. but it is said
the deposits of the Chestnut street bank
amounted to $1,700,0OO and Of the Trust
company, $1,300,0O0.
President Singerly gave out a brief
statement tonight, in which he said:,
"We are working to secure the indebt-
edness of the two banks so they can go
into voluntary liquidation and thus avoid
Il recevership."
In this connection Deputy Comptroller
of the Treasury George NJ. Coffin, who
was sent here from Washington by
Comptroller Eckels, today said
"The matter of putting the Chestnut
Street National bank into voluntary
liquidation has been taken up by Phla-
delphia men of great financial ability.
Their first step will he to ascertain the
value of the assets of the bank. They
must first be satisfied they have values
sufficient to warrant tkem in assuming
the Indebtedness"
Mr. Coffin will remain here several days
aiding the men who have taken upon
themselves the task of extricating Mr..
Singery from his financial difficulties.
These gentlemen are in consultation to-
night and the belief is strong that they
will provide the funds necessary for Il
voluntary liquidation Of the two banks.
II has been konwn for some time in
y S:a...",ng circles that Mr.. Singerly's banks
were in trouble and the national nank
examiner Il Is sud, was aware of the
condition of affairs. Last night num-
Der of the lending bank officials of the
city had conference lasting Until
o'clock this morning considering the mat
ter of raising sufficient money to relieve
Mr.. Sngerly's banks of their distress.
1t is understood II proposition to float
$2,000,0O0 preferred stock of the Phia-
delphia Record had been practically
agreed to when the discovery was made
that because of the involved condition
of the Trust company finances this sum
would not be within several hundred
thousand dollars of the amount required.
Negotiations We're therefore declared off
and the banks were forced to the wall.
Now it is hoped the committee, which
began tonight where the former commit
tee left off, will succeed satisfactorily in
adjusting the finances and thus permit
the banks to pay depOsitOrs dollar for
dollar.
The net earnings of the Record last
year were S249,000 more than sufficient
to pay dividends on sum sufficient to
pay all of Mr.. Singerly's indebtedness to
the banks
The statements of the cause of the
failure current here agree with that
made by Comptroller Eckels at Washing
ton today. that it was primarily due to
the loss of much money by Mr.. Singerly
III his unproductive paper mill at Elkton,
Md, one of the largest in the country.
Mr.. Singerly also has much money in
vested in other enterprises in this and
other cities. Rumors were current to the
effect that the ownership of the Record
would pass from Mr.. Singerly, but this is
denied, stating positively that he is in
absolute control of the paper and will
continue at its head
Ii is said there have been quiet. but
steady run on both banks for several
days past. Of the deposits in the banks
the city is represented by S2Sy,554, the
state by $4,000, and the national gov
erhlnent by large sum, but all of these
creditors are believed to be protected.
.mucn sympathy is expressed on all
sides for Mr.. Singerly. He has occupied
such a prominent place in the affairs of
me city and the state for years past that
the news of his financial difficulties
naturally created n sensation.
crowds were gathered in front of tho
big granite banking building all day. but
All was quiet. A great number of small
amounts were carried by the Trust com
pahy and apprehension was expressed
.nat some distress might follow the fail
are realized however. ali depositors viii
DC paid in full within a short time
"
G, fhiadelphia, Dec. 23-The Chestnut
street National bank did not omen IFS
doors for business this morning Tho
reason therefor was stated in n notice
posted on the door, which read as fol.
lows: 'N 10 ioi-
, The Chestnut Street National bank is
oiostu Tor BUSINESS and is in the hands
OF the national bank examiner ''''
tSigned) WILLIAM VI. HARDT.
, Examiner"
"A crowd of depositors soon gathered
about the doors, but there was no
especial excitement. and as n general
rule after each had learned the nature
OF the notice on the door he moved
away and his place in the crowd would
M taken by others anxious to CLEAN
sohethlng regarding the situation. The
. nalk mas at all times held good repu-
.a;sion, put 1t has been known for some
L mat Its business and profits have
peeh railing off considerably. The
panks suspension, however, was a great
surprise, especially so in view of the
nigh standing of its officers. William
eingerly Is its president and S. A. Cooper
VICE president. The bank was started in
1881 on capital of 100000 with Rob
ert Il. Pattison as president. When the
iatter took his seat rs governor of
pennsylvania in 1891, Mr.. Singeriy sue
eeeaed MN as president of the bank.
Inc Chestnut Street Trust and Saving
company, the officers of which are iden,
tlcal with the bank, was also closed for
business today, but to what extent the
trust company is involved in the banks
affairs has yet been announced.
Inc last report of the condition of the
chestnut Street National bank. made
October 8, 1897, was:
neSources-Loans and discounts. So
i9O,5OS.65: over drafts, secured and un-
secured, S3.552.34; United States bonds
TO secure circulation. $4,000: United
states bonds to secure United States
deposits. S1O0, 1000: premiums on United
States bonds, $10,50O; due from ma
tional banks, S26, 631. 40: due from state
hanks and hankaro 60 OK 40, L. -.