New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-12-24
PRICE THREE CENTS.
PHILADELPHIA BANKS FAIL.
DOORS OF THE CHESTNUT STREET Ma
TIONAI. CLOSED.

INsTITUTIONs-TIIE FAILURES SAID TO
BE DUE TO HIS HEAVY LOSSES
IN HIS PAPER MILLS.
fBY TELEGRAPH TO THE TRIsuNEl
Philadelphia Dec. 23-The Chestnut Street
National Bank. Of which William II. Singerly.
proprietor OF The Philadelphia Record" Is
president. failed to open it's doors this morning.
Bank Examiner William W. Hardt having as
sumed charge an hour before the usual time for
beginning business The failure of this institu- -
ton carried down the Chestnut Street Trust and
Saving Fund Company which is closely affiliated
with the bank. occupying the same building and
being managed by practically the same board Of
directors.
The closing OF the banks doors caused a sem
satlon in the financial community. although Il
was not altogether unexpected by the best-in-
formed people In banking circles. Late in the
afternoon Mr. Hardt held conversation with
Controller Eckels at Washington the long
distance telephone. Mr. Hardt said that joint
meeting Of the directors OF the two failed con-
Germs with John c. Bullitt who is acting -
counsel for the Department; Deputy Controller
Coffin and himself had been held. and that they
were working on plan to bring about voun-
tary liquidation. with a reasonable hope Of sue
cess
The amount on deposit in the bank when the
doors closed is reported to have been In round
figures 81, 100000. Of which about 81. 200 900 was
to the credit Of individual firms and corpora
tions In the city. while the remaining S500.000
represented the accounts Of banks In other
cities The deposits in the Trust Company
amounted to about $1.3O0.OO0.
EFFORTS TO AVERT THE FAILURE
1t has been known in banking circles for furiy
month that the affairs Of the institution were
not In good shape. and 1t was generally known
that its reserve had fallen considerably below
the legal limit but II was not until early this
week that the Clearing House Association was
informed Of the serious state of affairs. The
banks In the association, leading trust COM
paries and other large financial interests were
thereupon urged to extend aid. with the result
that meeting was held yesterday. At this con-
ference plan was presented to the effect that
the various interests should join in subscribing
TO or underwriting proposed Issue Of S2,000,-
900 per cent preferred stock Of The Record"
Publishing Company. the proceeds Of which
could lc devoted to the liquidation Of his banks
Indebtedness and other obligations Of Mr.. SIM
gerly. thus avoiding the disaster Upon final
investigation. however. it was discovered that
the affairs of the institution were more deeply
involved than Lad been supposed. and the
dition disclosed was such that the amount Of
money raised 900. deemed insufficient
to relieve the embarrassment so the plan fell
through.
STATEMENT FROM MR.. s1NGERLY
President Sirgerly gave out brief statement
tonight in which ne said I'VE are working 10
secure the Indebtedness Of the two banks. so
that they go into voluntary liquidation and
thus avoid a receivcrshp."
Cant yybo
from Washington BY Controller Eckcls to-day.
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 irst step will be TO as
certain the value of the assets Of the bank.
They must first be satisfied that they have
value sufficient to warrant them in assuming
the Indebtedness" Mr.. Coffin has had great eX-
perience in resuscitatlng troubled banks, and he
will remain here several days. aiding the men
who have taken on themselves the task Of ex-
Treating Mr. Singerly from his financial diff
fcuties. These men are in consultation tonight.
and the belief is strong that they will provide
the funds necessary for voluntary liquidation
OF the two banks.
THE CAUSE OF THE TROUBLE.
The statements OF the eau e Of TIE failure cur.
rent here agree with that made by Co1troller
EckelS az Washington to-day, tnat IL vas prf-
marily due to the oss OF much money by Mr..
Singerly in his unproductive paper mill at
Elkton, Nd one OF the largest in the country.
One statement placed the sum thus involved
at nearly Sl,0000G0 Mr.. Singerly also has
much money invested in other enterprises In
this and other cities Rumors were current to
the effect that tha ownership OF The Record
would pass from Mr.. Singerly but this he de-
MED stating positively that he is in absolute
head The net earnings Of THE Record" last
year are said to have been S249OOO which 10
more than enough 20 pay dividends a
sufficient to pay all Mr.. Singerly's Indebtedness
TO the banks
Much sympathy is expressed all sides for
Mr. Slngerly. He has occupied such a promi-
nent place In the affairs Of the city and the
State for years past that the news Of his nnan-
cial difficulty naturally created sensation.
Mr.. Singerly said tonight that he had re-
ceived hundreds OF kilograms from all over
the country expressing the sympathy Of the
senders He has borne the strain we'll.
On Monday OF this week the Chestnut Ma
t.onal Bank made the following report to the
Philadelphia Clearing House:
Loans and discounts 81 e6l .oo0
Deposits L7s9.oD
Due from banks 355.0OO
Circulation 1900
BIG SHRINKAGE IN DEPOSITS
The deposits on October 8. when the bank
reported to the Controller Of the Currency
amounted to $2035S56 The shrinkage In this
ttar, tberafora has heep mora than S2O0 0On a.,