The record-union., 1897-04-14
GLOBE SAVINGS BANK FAILURE.
Part of the Illinois University Bonds
Found.

CHICAGO, April 13.-The disappear
ance of the S400,O 200 in endowment
bonds of the University of Illinois has
caused a general scanning of securities
held by the different banking institu-
tions in this city, and it has been dis
covered that the First National Bank
has in its vaults nearly $500, 900 worth
of bonds Some of these bonds were
sold outright to the bank, others We're
held as collateral for loans made to
Spalding. Another national bank is
said to hold some bonds. On Saturday,
April Sd, the last business day before
the failure of the Globe Savings Bank,
Herbert Skinner, Spaldings Private
Secretary, drew $4,000 from the Globe
Savings Bank and deposited it in the
Northwestern Bank to Spalding's pri-
vate account.
CHICAGO, April 13 Treasurer
Spalding of the Board of Trustees of
the University of Illinois, who was ex-
pected to come before the meeting of
the board to-day and explain the dis
appearance of the University trust
funds intrusted to his keeping, failed to
put in an appearance, which was held
behind closed doors, E. G. Keith was
elected to fill Spalding's place as Treas
urer. A list was received from Spald-
ing giving the kind and denomination
of the securities he offers to cover his
liability for the endowment bonds.
Additional charges are made in re-
gard to the alleged mismanagement of
the affairs of the Globe Savings Bank
in an amended bill filed by Charles E.
Shurchill, cashier of the defunct bank
The bill is part of the receivership pro-
ceedingS and brings into the case a
number of persons not heretofore in
volved
President Spalding's connection with
the bank is dealt with extensively in
the amended bill 1t is averred that
Spalding induced H. C. Haley to make
three promissory notes aggregating up
wards of $4,000 payable to the order
of Spalding or the bank, upon the as
surance of Spalding that he would de-
posit $4,000 in merchantable bonds as
security. Spalding, it is charged, used
the money for his own benefit and set
apart $4,000 in bonds
Another section of the amended bill
says that Spalding, Edward Hayes.
Charles J. Ford and John W. Lane
Hart, deceased, the latter either for
himself or Ex-Governor John p. Alt
geld, purchased a tract of land of
eighty acres in Cook County and Spald-
ing, it is alleged, paid for his share of
the property out of the funds of the
Globe Savings Bank, and it is also
charged that Ford, Lane, Hart or Alt
geld knew this. OF the sum of SOB.
600 which the State Auditor ordered
charged to the profit and loss account
of the Globe Savings Bank, it is re-
ported that SIT 900 was an indebted
ness of John p. Altgeld and that s.. 900
was Indebtedness nominally Que from
John w. Lane to Hart. 1t is charged
however, that the last matter was in
fact loan to Ex-Governor Altgeld. 1t
is also claimed in the bill that ex-Gov-
ernor Altgeld has been transferring his
property with the intention of keeping
it from the creditors of the bank.
President Spalding, Vice President
Averill and Cashier Churchill of the
bank put in an appearance to-day in
the court of Justice Hall, and gave
bonds for their appearance April 10Th
to answer to the charge of embezzIe-
ment preferred by Adolph Edelman,
one of the depOSitorS of the bank