Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-04-16
SPALDING ASSIGNS.
MAKES TRANSFER OF BONDS TO
UNIVERSITY TRUSTEES.
IGHT BY BANK STOCKHOLDERS.
They Will Endenvor To Keep the Sc
curitics Out of University Hands
bank Failure.

CHICAGO, ILL, April 15.-Charles w
Spalding. ex-presldent OF the Globe
Savings Bank and ex-treasurer Of the
University Of Illinois. has made vol
untary assignment to the university
trustees OF realty and bond securities
approxmoting in value $4,000. The
bonds are in the hands of Secretary
Lemans. Of the Globe Savings Bank.
and desperate fight will be waged by
the depositors OF the bank to prevent
their going TO the university.
Criminal proceedings are not to be
brought against the former treasurer by
the trustees unless they cannot be in
IDENTIFIED for the money and bonds used
by Spalding. Suits are to be begun
against the First National Bank. he
Northwestern National Bank, and the
Metropolitan National Bank to recover
s2i2 900 of bonds hypothetical or sold to
these institutions by Spalding. person.
ally, or through brokers
Mr.. Spalding this afternoon issued a
statement giving the causes leading up
to the failure of the bank. and saying
that he had no doubt all depositors
would be paid in full. and 30 per cent. OF
the capital stock paid to the stock
holders. 'if the securities are conservh-
lively managed in the hands Of the re-
celver."
He also claims that he handled the
university endowment bonds in good
faith. and states that there will be no
ultimate loss to the institution or to
his bondsmen, If his investments are not
sacrificed by forcing them upon the pre-
sent market, and he is permitted to ad-
wise how they shall be liquidated.
BANK EXAMINER IMPLICATED.
Charles L. Churchill, the cashier of
the defunct Globe Savings Bank, has
made statement in regard TO the fail
ure, which. if true, duplicates George r.
Hayden. the State Bank examiner, un-
der Governor Altgeld. Mr.. Churchill says:
"Mr Hayden. the State bauk-ex-
aminer, made an examination of the
Globe Savings Bank two days before the
expiration Of his term of Office. but I
have since found that he lid not Gle
his report with the State Auditor. When
the State Auditor ordered an examina-
ton, a few weeks later, | went TO him
and asked why he did so. His reply
was that there was 10 report Of an
examination on file later than last July
l told him of the examination made by
Hayden in January, and he made a de-
mand on Hayden for his report. Hayden
finally filed his report, in which he re-
commended that the bank should be
closed. The report was filed two months
after the examination on which it was
based was made.
Shortly after this examination by
Hayden. man, whom l know to be a
close friend OF his. attempted TO purchase
the bank, or. at least talked about it,
This man was introduced TO us by Hay
den. The negotiations for control of the
bank failed. and soon after the report
was filed. but not until after the new
examination had been ordered"
LEGISLATIVE INVESTIGATION.
SPRINGFIELD. ILL. April 1.-THE
State Senate to-day adopted a resolution
providing for the appointment of a spe-
cial committee to investigate the report
ed misrepresentation Of the funds Of the
University Of Illinois by ex-Treasurer
Spalding.