The times. [volume] (Richmond, Va.) 1890-1903, 1897-04-14
THE CHICAGO SENSATION
FURTHER INgESTTGAfION BEING
MADE OFGLOBE SAYINGS BANK.
Illinois University Bonds Sold and Hy-
pothecated by spalding-Governor
AItgeld Is Implicated.

CHICAGO. ILL. April l5-The disap-
pearauce OF $4,000 OF endowment bonus
OF the University of illinois. mas caused
"A general scanning OF securities heiu Ds
the different banking institutions IN TINS
city and ii has been discovered that ihe
First National Bank has in ITS vaults
nearly s-Op.OVO of the bonds when FORM
cd the endOH ment fund OF the University
OF which Pre- sidcnt &. ". Spalding, OF the
insOlvent Globe savings Bank, as treasur-
er of the University, was the CUSTODIAN.
Some OF these bonds We're sold Outrlsht
to the bank others are held as collattidl
for loans made 10 Spaldlns. Another
national bank is said TO hold some OF the
bonds. Some trace of the cash belonging
TO the University OF Illinois has also Dttn
found. On Saturday, April 81, the lasl
business day before the Iallure Oh tle
Globe Savings Bank. Herbert SKINNER,
Spalding' private secretary drew slo'vp'
from the Globe Savings Bank, ana aepos-
tied In the Northwestern Bank 10 Spdiu-
ings private account.
Treasurer Spalding, who was expected ~
come before the meeting of the board To-
day and explain the disappearance OF the
University funds failed TO put IN an dp-
pearance. Al the meeting which VS.
heid behind closed doors, l.. q. klein was
elected treasurer in Mr.. Spalding piac-.
IL was evident that the trustees are
agreed on one point and that Is that MI
Spdlding has hypOthecated the ehuVM
meut funds and that the board must now
confne its attention TO the Work oA COZ
railing securities sufficient 10 cover tho
missing bonds and the cash fund OF Wy
~ iu SIR. Spaldins's possession "heh '''
Globe Savings Bank failed. ,,
4 list which was received from NJ
Spalding giving the kind and denOmlid-
ton OF securities which he offers 10 Cover
liability for the endowment bonus w.
submitted. This. the trustees agree, NdS
an admission by Mr.. Spalding ina. 'ne
$40 OVU ondOW Ment bonds are not "Hei0 '
can obtain possession OF them
Additional charges are made IN resaiu
10 the alleged mismanagement or aHaiIs
OF the Globe Savings Bank IN an amend
ed bill filed to-day by Charles Il. Church-
I'm. cashier of the defunct bank. Inc
bill is part Of the receiyership proceedings
and brings into the case humOei ol
persons not heretofore involved.
President Spalding's connection with
tho bank is dealt with extensively IN the
amended bill. IL Is averred that Spaldlh;
induced h. c. Haley TO make three prom
issory notes aggresauug upwards oI slo'-
20 payable 70 the order of Spaldins or
the bank upon the assurance or Spaid-
ing that ne would deposit $4,000 In men
charitable bonds as security. spaldlns'
IL IS charged. used the money LOT MS
own benefit and set apart AO.Oo IN poHus'
The property belonging 10 the bank mas
been applied by Spalding II IS declared
in the purchase of real estate and II Is
charged that he caused a portion Of this
real estate % be conveyed 90 others, be-
sides himself. in order 10 conceal his IN
terests. 1t is also ayerred that Spald-
ing has used the money OF the bank 10
pay life insurance premiums, having
uolicies To the extent Of $1,000
Another section Of the amended bill says
that Spaldmg. Edward Hayes Charles j.
Ford and John W. Lanehart. deceased
the latter either for himself or eS-Gover-
nor John r. Altgeld. purchased tract
of land OF eighty acres in Cook county.
and Spalding, IL is alleged paid for his
share OF the property out OF the funds Of
Tie Globe Savings Bank. and II is also
charged that Ford Lauehard or Altgeld
knew this. The sum of 100000 which
the state Auditor ordered charged TO the
profit and loss account of the Globe saw
iugs Bank. IL IS represented $1,000 was an
Indebtedness OF John T. Altgeld and that
5000, was an Indebtedness nOmlnally due
from joan W. Lanehart. IL Is charged,
however that the last amount was in
fact o. loan 10 Ex-Governor Altgeld 10 is
also set forth that Gov Altgeld has been
transferring mis- property with the inten-
ton OF keeping it from the creditors Of
the bank.
President Spalding. President Ave-
riu and Cashier Churchill Of the bank.
put Zoo an appearance to-day In the Court
of Justice Hall. and gave bonds for their
appearance April 18th 10 answer 10 the
charge OF embezzlement, made by one Of
The depOsitOrs OF the bank