The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-12-24

Philadelphia, Dec. pa sensation was
created in this city today by the an
nouncement of the suspension of the
Chestnut Street National bank. regarded
as one Of the strongest financial institu-
lions in the city. The suspension car
ried with it the closing of the Chestnut
Street Trust and Savings Fund company,
doing business under the state banking
laws. William NJ. Singerly, publisher of
the Philadelphia Record is president of
both companies, and the same men. with
one exception, act as officers and di-
rectors.
The first information the public received
that the banks we're in trouble was in the
form of a notice posted this morning on
the door of the building occupied jointly
by the two concerns, signed by National
Bank Examiner William NJ. Hart, to the
effect that the Chestnut Street National
bank had closed it's doors pending an
investigation of it's affairs. No statement
OF assets and liabilities is available but it
is stated that the deposits of the Chestnut
Street bank amounted to S1.700,000 and OF
the trust company to A.SOO.O0O.
President Singerly gave out brief
statement tonight in which he said: we
are working to secure the Indebtedness
OF the Two banks so that they can go into
voluntary liquidation, and thus avoid a
receivership.'
ASSISTED BY F'INANCIERS.
In this connection Deputy Comptroller
of the Treasury George NJ. Coffin who was
sent here from Washington by Comp
troller Eckles, today said: THE matter
of putting the Chestnut street. National
bank into voluntary liquidation has been
taken up by Philadelphia men of great
financial ability. Their first step will be
to ascertain the value of the assets OF the
bank. They must first be satisfied that
they have a value sufficient to warrant
them in assuming the Indebtedness.
MIR. Coffin will remain here several days,
aiding the men who have taken upon
IN aT0SPlVPS the task of PXrTic3tinR Mr..
Singerly from his financial difficulties.
These gentlemen are in consultation to-
night. and the belief is strong that they
will provide the funds necessary for
voluntary liquidation of the two banks.
KNOWN FOR SOME TINE.
1t was known for some time in banking
circles that Mr.. Singerly's banks were in
trouble, and the national examiner, 1t IS
said was aware of the condition of the
affairs. Last night a number of the lead
ing bank officials of the city held con-
ference lasting until nearly clock this
morning, considering the matters of rails
ing sufficient money to relieve Mr.. Singer
lyS banks of their distress 1t is under
stood that a proposition to float S2,OOOOOO
preferred stock of the Philadelphia
Record had been practically agreed to
when the discovery was made that be-
cause of the involved condition of the
trust cOmpany'S finances this sum would
not be within several thousand dollars
of the amount required. Negotiations
were therefore declared off and the banks
were forced to the wall Now it is hoped
that the committee which began where
the former committee left off will sue
coed in successfully adjusting the finances
and thus permit the banks TO pay de-
pOsitors dollar for dollar
The net earnings of the Record last year
are said to have been S249 900, more than
sufficient to pay dividends on a sum Sufh-
cient to pay all Of Mr.. S1ngerlyS 1ndeDt-
ednesS to the banks
CAUSE OF FAILURE.
ure current here agree with those made
by Comptroller EckelS at Washington to-
day, that it was primarily due TO the loss
of much money by Mr.. Singeriy IN his
unDrOductive paper mill at Elkton, Md,
one of the largest in the country. One
statement placed the sum thus involved
at nearly a million dollars.
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
he denied, his friends stating positively
that he is in absolute control of the pa
per- and will continue at its head.
On Monday of this week the Chestnut
Street National bank made the following
report to the clearing house:
Loans and discounts. S2.261,000; legal re-
serve. 1896. 900; deposits 81. 7S9 900; Que from
banks 1855. GOO: due to banks, S6S6.O00; cir
culatiOn, $4,000.
The reserve has been below the legal
requirements for several weeks The de-
u D.
to the comptroller of the treasury,
amounted to g. 239 $50.
The shrinkage in this item, therefore.
has been more than 100000 in little over
two months
STEADY RUNS.
1t is said that there have been quiet but
steady runs on both banks for several
days past OF the deposits in the bank,
the city is represented by $289.554: the
state by S225.000 and the national govern
ment by a large sum, but all of these
creditors are believed to be protected.
Much sympathy is expressed on all sides
for Mr.. Singerly. He has occupied such
a prominent place in the affairs of the
news of his financial difficulties naturally
created a sensation.
SYMPATHY FOR SINCERELY.
Mr.. Singerly stated tonight that he re-
ceived hundreds of kilograms from all
over the country expressing the sympathy
of his friends. He has stood the strain
his face and manner the deep concern his
troubles are causing him.
Crowds were gathered in front of the
big granite bank building all day but all
was quiet. A line of pOlicement kept the
people moving A great number of small
accounts were carried by the trust COM
pany and apprehension was expressed
that some distress might follow the fall
ure. If the hopes of a quick settlement
are realized. however. all depositors will
be paid in full within short time.
Counterfeiter Surprised.
Chicago, Dec. 23.-Captain Porter of
the United States secret service and