Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-23
Chestnut Street National of Phila-
delphia Closes Its Doors.
NO STATEMENT OF TEE LIABILITIES
Suspension Due to Shrinkage Of
Securities of Pulp Mills.
W H AT VI r. ECKELS SAY S


The reason therefor stated in notice
posted on the door, which read follows:
The Chestnut Street National Bank IS
closed for business, and is in the hands Of
the national bank examiner.
(Signed) "WM NJ. HARDT, Examiner"
crowd of depositors gathered
ahout the door, but there was no especial
excitement. and a general rule after
each had learned the nature of the notice
the door he moved away. and his place
in the crowd would be taken by others
anxious to CLEAN something regarding the
situation. The bank has at all times held
q good reputation, but it has been known
for some time that its business and neces-
sarily its profits have fallen off consider
ably.
Came as n Surprise.
The banks suspension, however, was a
great surprise. especially SO in view of the
high standing of its officers. William NJ.
Singerly is its president and Isaac Cooper
vice president. The bank was started in
1887 capital of sJoJ,eo,, with Robert
F. Pattison president When the latter
took his seat as governor of Pennsylvania
in 1891, MIR. Singerly succeeded him as
president of the bank No statement of
the banks liabilities could be obtained this
morning.
The Chestnut Street Trust and Saving
Find Company. the officers of which are
Identical with these of the bank. the offices
being located ir the same building, was
also closed for business today. but to what
extent the trust company is involved in the
banks affairs has not yet been announced
Was "a City Depository.
The bank was a city depository and there
were city funds in the bank to the amount
of s2s2. Sol. The state of Pennsylvania also
had on deposit with the bank on December
i 5.OG0 according to the official state
ment of State Treasurer Haywood, issued
on that date.
The bank was also a depository of the
national government, but the government
is fully protected against loss by holding
S1VJGsD United States bonds as security.
1t is said that the bank holds the funds
CO the city police and firemens pension
fund. the school teachers pension and an
Euity fund and deposits of the Fairmount
Park commission. VI hich latter includes be-
quests for the park improvement. DurinS
the past few weeks President Sngerly has
made great efforts to enable the bank to
meet its liabilities Yesterday the matter
laid before the clearing house COM
mittee of the Philadelphia banks and at
meeting Of the committee proposition
TO issue S2Coo000 6 per cent preferred
as collateral for loans was considered. The
investigation developed that this offer was
not sufficient to justify the banks in ad-
vancing the needed funds
No Other Bank Involved.
The members of the clearing house say
that no other banks involved in the
failure Concerning this phase of the case
Mr.. Singerly said today that arrange
n.ents had been made to make an extra
stock issue OF 100000 by the Record Pub
fishing Company, and that it was thought
that would be satisfactory, but somehow or
other the plan fell through
Further than this, Mr.. Singerly declined
to discuss the banks troubles. He said the
statement which would likely be issued by
the bank would explain the situation.
New York Correspondents.
NEW YORK, December 23-The cor
respondents in this city of the Chestnut
Street National Bank of Philadelphia are
the National Bank of the Republic and the
Staboard National Bank c. H. Stout,
cashier of the National Bank of the Re-
public, said that that bank was not worry
ing about the failure. but he declined to
say whether the failed bank owed his
cCrcern anything not. and said he did
not know the cause of the failure.
Stuart c.. Nelson, vice president of the
Seaboard National Bank, said that the
Chestnut Street National Bank had bal
ance to its credit in the Seaboard National
Bank, and did not owe the latter bank a
dollar.
State Had S225,OOO Deposit.
HARRISBURG. Pa, December BIT
vas announced TO-DAY by the state treas
urer that the state has S225, 900 on deposit
in the Chestnut Street National Bank Ct
Philadelphia
Mr. EckcIs' Statement.
Mr. Eckels, the controller of the cur
rency, said today in regard TO the fail
ure of tie Chestnut Street National Bank
OF Philadelphia that the suspension was
primarily due to the shrinkage in the
value of the bonds and notes of the sing
erly pulp and paper mills, located at Elk
ton. Nd. The capital of the bank is
sJGo.Oro, and at the present time its de-
posits aggregate about Sl,T00VoO and its
surplus about s1.OJ Mr.. Ecke.s has
been in Philadelphia several times recently
trying TO make arrangements by which
the pulp and paper mills securities could
be taken out OF the assets of the bank
and preferred stock OF the Philadelphia
Record Company substituted. By this and
certain other changes Mr.. Eckels hoped
to put the bank in first-class condition.
Up to 5 o'clock last night i. thought
that the plan would be adopted. but at
that time hitch occurred, which rendered
suspension necessary.
Paper Shrank In Price.
When the pulp and paper mills securities
were ken by the bank they were rega rded
by every 6ne as first-class. but since that
time paper has fallen In price from 10 cents
a pound to less than cents. and the Sc
curities have deprecated in proportion. Mr..
Eckels said there not the least sus-
picion OF any wrongdoing on the part OF
any one connected with the bank. and he
stiH had strong hopes of arranging for
the voluntary liquidation of the banks af.
fairs without the expense incident to the
appointment OF receiver. Mr. Eckels ex-
pressed the belief that the bank ultima tely
would pay every dollar II owes. The PbIia.
deiphia Record, which Is owned by Presi-
dent Singerly, Mr.. Eckels said, is a ve-y
valuable property, paying about 8 per cen,
ar rnually on about 81 100000
Washington Bank. Unaffected.
As far as could be learned By tnouir,
here ncne Of the national banks and trus,
companies of this city are affected in an,
way by the failure of the Chestnut Stree,
Bank.