Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-12-24
NATLBANK SUSPENDS
THE CuEsTNUT-srREET, or PHILA.
pELruIA. GOES TO THE WALL.
FAILURE CAUSES A SENSATION
II Carries with It Closing of Allied
Trust Company's Busincss-Editor
SIngerIy President of Beth Con-
Germs.
Germs.

by the Nili0AiAfiutHA OA AiAt EhENiiAstfi
Of the Chestnut-strcet National Bank re-
earapd as one Of the strongest financial
institutions in the city. The suspension
carried with IT the closing OF the Chest
nut-Street Trust and Savings Fund Com
many. doing business under the State
banking laws William NJ. Sngerly. pub
fisher of the Philadelphia Record is presi-
dent OF both companies. and the same
men. with one exception. act as officers
and directors.
The first information the public re-
,siyra that the banks were in trouble
was in the form of a notice posted this
morning on the door OF the building oc-
clpisd Jointly by the two concerns,
signed by NatiOnal-Bank-E Examiner Will
liam NJ. Hardt. to the effect that the
Chestnut-StrCet National Bank had closed
its doors, pending an examination of its
affairs. No statement Of assets and liza
Nuities is available, but IL Is stated that
the deposits of the Chestnut-Street Bank
amounted TO $l,7OOOOO, and those Of the
Trust Company to Sl,SOO,OOO.
President Singerly gave out a brief
statement tonight. in which be said:
1--WE are working to secure thd indebted
ness Of the two banks, so that they can
20 into voluntary liquidation and thus
avoid a receivership."
VOLUNTARY LIQUIDATION.
In this connection Deputy Comptroller
of-the-Treasury George NJ. Coffin, who
was sent here from Washington by Comp
troller Eckels, to-day said: "The matter Of
putting the Chestnut-Street National
Bank into voluntary liquidation has been
taken up by Philadelphia men of good
financial ability. Their first step will be
20 ascertain the value of the assets OF the
bank They must first be satisfied that
they have value sufficient TO warrant
them in assuming the Indebtedness"
Mr Coffin has had great experience in
resuscitating troubled banks, and he viii
remain here several days aiding the men
who have taken upon themselves the
task Of eXtricatng Mr.. Singeriy from his
financial difficulties. These gentlemen are
in consultation tonight. and the belief
Is strong that they will provide the funds
necessary for a voluntary liquidation OF
the two banks.
1t had been known for some time in
banking circles that Mr. Singerly's banks
were in trouble, and National-Ba
aminer Hardt. II is said, was aware OF
the condition Of affairs. Last night a
number Of the leading bank officials OF
the city had a conference. lasting until
nearly o'clock this morning, considering
the matter Of raising the money to relieve
Mr.. Singerly's banks of their distress.
Ii is understood that a proposition to
float 100000 Of preferred stock OF the
Philadelphia Record had been practically
agreed 70 when the discovery was made
that because Of the involved condition Of
the Trust Companys finances this sum
would not be within several hundred
thousand dollars OF the amount required.
The negotiations were therefore declared
off. and the banks were forced TO the
wall. Now It is hoped that the commit
tee which began tonight where the Tor
mer committee left off will succeed IN
satisfactorily adjusting the finances, and
thus permit the banks TO pay depositors
dollar for dollar.
The net earnings Of the Record last
year are said 10 have been $2i9,OO)-more
than sufficient to pay dividends on
sum sufficient 10 pay all of Mr.. Singerlys $
indebtedness TO the banks.
LOSSES BY MR.. SINCERITY.
The statements of the cause of the fail
ure current here agree with that made
by Comptroller Eckes at Washington
to-day. that il was primarily due TO the
loss Of much money by MIR. Sngerly in
his unproductive paper-mill at Elkton,
Md. one Of the largest in the country.
one statement placed the sum thus in
vOlved at nearly 81 100000. Mr.. Singery
also has much money invested in other
enterprises I'm this and other cities. Ru-
rnors were current 10 the effect that the
80 IA Tp4anr1 would from
Mr.. Singerly, but this he denied, stating
Dositively that he is in absolute control
of the paper. and will continue at its
head.
on Monday Of this week the Chestnut
street National Bank made the following
report 10 the Philadelphia Clearing
Loans and discounts. s2261 900; legal re-
serve. 1896, coo; deposits. I.7S90c0; due
from banks, 1855 600: due to banks, S6S6, coo;
circulation. $4,000.
The reserve has been below the legal
requirements for several weeks. The de-
posits on October 5th, when the bank
reported 10 the Comptroller Of the Cur
rency. amounted TO s. 2035.S56. The shrink
age in this item, therefore. has been
more than $4,000 I'm little over two
months. IL is said there have been steady
runs on both banks for several days past.
or The deposits I'm the bank. the city IS
represented by S2S9.5j4; the State by S22j,-
O06 and the National Government by a
large sum, but all Of these creditors are
believed 10 be protected.
When the Trust Company made it's last
report TO the State authorities on NO
vember l6th, the deposits amounted to
81 i92 2j3.
meeting OF the directors of the
Trust Company will be held at 10 O'Clock
tomorrow morning. 20 decide upon a
course Of procedure IL Is believed the
state Bank examiner will then take for
nal possession Of the Institution.
State-Bank-C Commissic .er Gilkeson was
in the office 81 the company "A short
has had the books OF the institution un-
der inspection for some time past
SYMPATHY FOR SINGERLY.
Much sympathy is expressed on all
sides for Mr.. Singerly. He has occupied
such a prominent place in the affairs OF
the city and the State for years past
that the news OF his financial difficulty
naturally created a sensation
Mr.. Sngerly stated tonight that he
had received hundreds Of kilograms from
all over the country, expressing the SYM
pathy Of the senders He has borne the
strain well. although he naturally shows
IN his face and manner the deep concern
his troubles are causing him
Crowds were gathered In front OF the
big granite banking building all day. but
all was quiet A line Of policemen kept
the people moving. great number OF
a,,on accounts urerq carried nv tho trust