Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-12-24
A BIG FAILURE.
Chestnut Street National Bank,
PhiIade| phia, Goes Under.
Trust Co. Follows Suit--Wm. N.
SingerIy at Head Of Both.
No Other Banks Involved Depositors Will
Receive Dollar for Dollar.

|
was created in this city, today, by the
announcement of the suspension of tn:
Chestnut Street National Bank, re-
garded as one of the strongest financial
institutions in the city. The suspen-
sion carried with it the closing of the
Chestnut Street Trust and Saving Co.
doing business under the state banking
laws. William NJ. Singerly, publisher
Of the Philadelphia Record, is presi
dent of both companies, and the same
men, with one exception act as officers
and directors. No statement of assets
and liabilities is available, but it is
stated that the deposits OF the Chest
nut Street Bank amounted to $1,70O, 600
and of the Trust Co., $1,30O,0OO.
| President Singerly gave out a brief
statement tonight, in which he said:
I'VE are working to secure the in
debtedness of the two banks; that they
can go into voluntary liquidation and
thus avoid a receivership.'
| In this connection Deputy Comptrol-
Ter of the Treasury George M. Coffin,
who was sent here from Washington
by Comptroller Eckels, today, said:
The matter of putting the Chestnut
Street National Bank into voluntary
| liquid .tion has been taken up by Phil
| adelphia 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 as
Stunning the Indebtedness
These gentlemen are in consultation
| tonight, and the belief is strong that
| they will provide the funds necessary
for a voluntary liquidation of the two
| banks
1t was known for some time in bank
| ing circles that Mr.. Singerly's bank
was in trouble, and the National bank
| examiner, it is said, was aware of the
condition of affairs. Last night,
number. of the leading bank officials
of the city had conference consider
ing the matter of raising sufficient
money to relieve Mr.. Singerly's banks
of their distress. 1t is understood that
a proposition to float 50, 900 900 preferred
stock of the Philadelphia Record had
been practically agreed to when the
discovery was made that because ct
the involved condition of the Trust
Co.'S finances this sum would not he
within several hundred thousand dol
lars of the amount required. Negotia-
tions were therefore declared off. and
the banks were forced to the wall.
Now it is hoped that the committee
which began. tonight, where the for
mer committee left off, will succeed
in satisfactorily 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. OOo
more than sufficient to pay dividends
on a sum sufficient to pay all of Mr.
Singerly's Indebtedness to the banks.
The statements of the cause of the
failure current here agree with that
made by Comptroller Eckels at Wash
ington, today, that it was primarily
due to the loss of much money by Mr..
Singerly in his ,unproductive mill OF
Elkton, Md, one of the largest in the
country. One statement placed thu
sum thus involved at nearly 81 ,0O0. 900.
Mr. Singerly also has much money in
vested in other enterprises in this and
other cities. Rumors are current to
the effect that the ownership of the
Record would pass from Mr. Singerly
but this he denied. stating positively
that he is in absolute control of the
paper and will continue at it's head.
OF the deposits in the bank. the city
is represented by $3.50. 554, the state By
S225,0 and the national government
by large sum, but all of these cred
itors are believed to be protected |
When the Trust Co. made it's last re-
tn ha Ct 10 x
the depositors amounted to 81, 492, 253.
A meeting of the directors of the |
Trust Co. will be held, tomorrow, to de-
eide upon course of procedure. Much
sympathy is expressed on all sides for
Mr.. Singerly. He has occupied such c
prominent place in the affairs of the
city and the state for years past that
the news of his financial difficulty nat
urally created sensation. Mr.. Sing
erly stated. tonight, that he had re-
ceived hundreds of kilograms from all
)ver the country expressing the sympa-
thy of the senders.
Crowds We're gathered in front of the
big granite banking building all day.
but all was quiet. line of policemen
Kept the people moving. A great num-
Der of small accounts were carried by
the Trust Co, and apprehension was (,
that some distress might fol-
ow the failure. II the hopes Of quick
settlement are realized. however. all
lepositors will be paid in full within
short time.
The Chestnut National Bank was es-
ablished in June, 1887. but was not
until July 5. of the same
rear. Hon. Robert r. Pattison was its
irst president. assuming the Office
when he retired from the governorship
When he again became Governor, in
891, Mr.. Singerly succeeded him.
Comptroller Eckels said, this after
loon, that no other banks were in
'olved. and that in his judgment none
would be affected by the failures.
The condition Of the Chestnut Street
trust and Saving Fund Co., at the
lose of the business on Nov. 16, 1897.
vas reported to the state authorities
o be: Resources, $1,S5S ,659.38; liabili-