The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-12-24
BANK SUSPENDS BUSINESS.
OWES DEPOSITORs S1,2OO,OOO AND
OTHER BANKS $5OO,OOO.

Securities on Which Money Could
Not BE ReaIized-WiIIiam VI. Sim
gerly of the Philadelphia Record
the President of the Two Institu-
tiOns.
Philadelphia. Dec. 2S.-The Chestnut
Street National Bank did not open its
doors for business this morning. The rea-
son therefor was stated in a notice posted
on the door, which read as follows: ''The
Chestnut Street National Bank is closed
for business, and is in the hands of the
national bank examiner. (Signed) William
M. Hardt, examiner"
crowd of depositors soon gathered
about Che door, but there was no special
excitement and as a general rule after
each had learned the nature of the notice
on the door he moved away and his place
would be taken by another anxious to
CLEAN something regarding the situation
The bank has at all times held good
reputation but it has been known for
some time that its business, and necessar-
lily its profits, have fallen off considerably
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
its vice president The bank was started
in 1887, on a capital of $5C0,O90, with Rob-
ert e. Pattison as president. When the
latter took his seat as governor of Penn
syivania in 1891, Mr.. Singerly succeeded
him as president of the bank.
The Chestnut Street Trust and Saving
Fund Company the officers of which are
identical with those of the Chestnut
Street National Bank, the offices being 10
Gated in the same building. was also
closed for business to-day but to what
extent the trust company is involved in
the banks affairs has not yet been an
nounced.
The bank was a city depository and
there were city funds in the bank to the
amount of $3.50 S45. The state of Pennsyl-
vania also had a deposit with the bank
on Dec. l of $225,G00 according to the Of
fcial statement of State Treasurer Hay
wood, issued on that date The bank was
also depository of the national govern
ment, but the government is fully protect
ed against loss by holuIng 100000 United
States bonds as security. 1t is said that
the bank holds the funds of the city po-
lice and the firemens pension fund. the
school teachers pension and annuity fund.
and the deposit of the Fairmount park
commission which latter includes be-
quests for the park improvement
The members of the clearing house say
that no other banks are involved in the
Failure. Concerning this phase of the case
Mr. Singerly said that arrangement had
been made to make an extra stock issue
of 100000 by the Record Publishing Com
pany, and that It was thought this would
be Satisfactory, but somehow or other the
plan fell through.
1t was stated that if Mr.. Singerly's in
debtedness 10 the bank could be iquidated.
all danger of failure would be averted. and
il was suggested that these various finan-
ciai interests should join in subscribing to
or underwriting proposed issue of s.. .OO0-
600 per cent. preferred stock of the Re
cord Publishing Company, the proceeds Of
which could be devoted to the liquidation
of that Indebtedness and other Obligations
of Mr.. Singerly. A statement was sub
mitted al the same time, showing that the
profits of the Record last wear amounted
to $22O,00, or sufficient to pay the interest
on the proposed issue of preferred stock
twice over The response was almost
unanimous, and as but few of the institu-
tons or individuals invited to cooperate
refused TO do 50, no difficulty was expert
enced in raising the $2000,OO0 required A
member of leading banking house was
invited and consented to represent the sub
scribers in the negotiations, and at the
close of business yesterday, it was con-
hdently believed that all obstacles p the
banks continuance in business had been
Upon final investigation. however. II
was discovered that the affairs of the in
stitution were more deeply involved than
had been supposed, and the condition dis
closed was such that the amount Of money
raised was deemed insufficient to relieve
the embarrassment. The leading financial
interests referred to were, therefore re-
G0nna1lGA n yuft
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 fnan-
cial interests being represented by a com
mlttee OF their number, and it was not
uhtlI nearly midnight that it was decided
that the catastrophe could not be averted
The banks affairs have been under the
scrutiny of the controller of the currency
Tor some time, and he has paid several
visits to this city in connection there
with In banking circles the embarrass-
nent of the Chestnut street bank has re-
Gently been an open secret. The bank has
Tor some time been debtor at the clear
ng house in making the daily exchanges
and on one or two occasions some dtf-
eulty has been experienced i'm meeting its
balances. This morning, however the
Chestnut Street Bank was a creditor at
the clearing house to the amount of $l2,-
na
The liabilities of the bank and the trust
together viii aggregate about
9, 900, 900. represented by s., 100000 OF demos
It's in the bank and 81 10000 in the trust
company OF the $l,7O0Oo0 in the bank
about 81 10000 is to the credit of indivi6-
lal firms and corporations in this civ
while the remaining $4,000 represents the
accounts of banks in other cities.
President Singerly gave out brief
statement tonight in which he said: eve
are working to secure the Indebtedness of
The two banks so they can go into voun-
.ary liquidation and thus avoid a receiv-
ership."
In this connection, Deputy Con-
troller Of the Treasury George NJ
Coffin, who was sent here from
by Controller Eckels TO-
lay, said THE matter of putting
the Chestnut Street National Bank into
liquidation has been taken IN
by Philadelphia men of great financial
ability. Their first step viii be to ascertain
the value Of the assets of the bank They
must first be satisfied they have value suf-
icent to warrant them in assuming the
Mr.. Coffin will remain here several days
liding the men who have taken upon them
selves the task Of extricating Mr.. Singerly
from his financial difficulties. These gen
~ 81