The Indianapolis journal., 1897-04-10
Latest Developments i'm the Sensation
al Failure OF the Globe saw
ings Bank of Chicago.
"GET-RICH-0UICK" CONCERNS
OPERATIONS OF THE Il. =. DEAN
COMPANY At NEW YORK.
Sf.OO0,oOO Alleged to Have Been TAX
en- Out Of Iowa Towns by Bucket
Shops i'm n Few Months.

CHICAGO. April &C. T.. Churchill. cash
fer of the suspended Globe Savings Bank.
for whose arrest warrant on a charge of
embezzlement was sworn out yesterday,
surrendered himself to-day and furnished
bonds for his appearance. President c. w.
SpaIding and Vice President A. d. Aver
i'll for whom warrants were also out, have
not yet put in an appearance.
Developments to-day have brought out
the fact that a far greater amount OF Uni
versity of Illinois funds is involved in the
suspension of the bank than has been sup
posed. Two years ago the State Legislature
appropriated s423.oOO of which. according
TO the state laws, enough was TO be drawn
out monthly 10 meet the current expenses
Of the university. 1t appears however
that, In consideration of 21ia per cent. in
terest on the funds. the university trustees
allowed Treasurer Spalding 10 withdraw
the whole from the treasury. This is
admitted by members of the board. Thus
not only are s4OO 900 worth of schools bonds
missing, but 5000 in cash is tied up. a
total of sS23.O To add to the complica-
tions 1t is said that should President Spald-
ing be unable to account for the funds his
bondsmen will refuse to be held responsible,
their defense being that a private deal of
u
the state treasury officials and Treasurer
SpaIding is sufficient cause TO release them
from their obligations. There is gross care
Iessness charged to the university officials
during the latter part of Mr.. SpaIding's
term as treasurer of that institution 1t
is said his accounts have not been audited
for over two years. His term expired the
first oart of March. but. owing to disa-
greement among the trustees ass TO his sue
cessor. 40 election for new treasurer has
been had Nothing definite as to air. Spaid-
ing's accounts with the university can be
ascertained until next Tuesday In the
meantime the case assumes the aspect of
a chase between the University of illinois
and the Chicago Title and Trust Company
assignee of the suspended bank. to vino
can get first claim Of the property of MIR.
Spaluing.
THE news that warrants have been issued
for the arrest Of President Charles W.
Sealding: Cashier c. T. Churchill and Vice
Globe Savings Bank of Chicago. the stock
or which IS largely owned in this State. is
no great surprise the Nashua stockhold-
ers. While no open charges of criminal
conduct have been made, there have been
many complaints of mismanagement on the
part OF the bank officials, and when, about
two weeks ago, request that the stock
holders contribute an assessment of 30 per
aDpointed to look into the bank,s affsirs
Among the holders OF stock In New Hamp-
shire the Nashua Savings Bank VIII
ton Savings Bank, Milford Savings Bank
New Hampshire Banking Company. two
banks at Keene and several private individ-
uals- The banks however are not heav-
lily involved as are the individual investors
Late In the day Vice President Averill
surrendered himself and was Immediately
released on bonds. President Spalding is
not IN the city, but in letter written to a
friend to-day. he says he will return Mon
day: In the meantime officers are looking
Tor him. Mr.. Spalding was appointed treas
urer of the university board four years ago
at the solicitation of Ex-Governor Altgeld.
Two years ago Treasurer Spalding's term
expired, but he was reappOinted and ii was
but a short time after his reappointment
that the Legislature appropriated S143. 600 to
be devoted 10 defraying the expenses of the
universifv