Evening star., 1897-05-03
SPALDlNG ON THE RACK
President of the Defunct Globe Savings
Bank Of Chicago Testifes.
He Tells the Senate Investigating
the State University Bonds.

President Charles w. Spalding of the de-
funct Globe Savings Bank of Chicago was
on the rack before the senate investigating
committee in Chicago all day Saturday.
On the stand he acknowledged that he
had hypothecated the endowment bones
of the State University, and that he had
done it with the advice of his lawyer, John
w. Lanehart. now dead, and after con-
sulting with President Buckingham of the
Northwestern National Bank. But what
was still more startling was the evidence
of Mr.. Harlan that the hypothecating of
the endowment bonds was with the knowi
edge and by arrangement with a trustee,
James f. Armstrong.
Spalding was asked about the singula-ly
profitable investments that he had made
for Miss Sarah Louise Ervine, and he made
such explanations as he could. He smiled
as he gave this part of his testimony. Sem
ator Berry, the chairman of the committee,
did most Of the questioning.
Miss Ed, ines Investments.
@. You gave Miss Ervine the property
which she conveyed to the assignee? A.
did. That is, 1 didn't give her any prop
erty. 1 invested her money for this prop
erty, and they worked it out of me.
Q. Where did she get that money? A In
the first place, by sher own exertion. She
CAN'T " iit dS d SttEOSTdpHti, anu NOrheu
five years.
Q. What did you pay her? A. About SO
or s15 week. She lived at home.
Q. Out of that how much did she save?
A. She saved few hundred dollars, and /
took it and laid it out and Invested 4: for
her. She was living at home, and about
two years after she came TO she hal
accumulated few hundred dollars, which
l invested.
Spaldiny left the stand a wearied man.
who had told much, but who had harmed
his cause-if that were possible--by the
things he. did not reveal For from the first
he took the position not only that he had
done no wrong, but that his bank was
SOUND from the day of its starting until
short time ago.
History of the Bank.
Spalding testified that the bank vas III
corporated in 1890, with a capital stock Of
100000, fully paid in cash. Nearly one
half of the stock was owned in- the east,
mainly in New Hampshire. The bank did
a very prosperous business during the first
two years, and it WAS al the summit of its
prosperity May s, 1893. From May 8 the
deposits were reduced, and the hard times
eliminated June D, 1888, IN a run on the
bank. From that time deposits continued
to go out until the following February s,
when the turn was reached. and We com
menced increasing. The gam continued
until July or September of this last year.
and we had nearly regainei the amount
which we had dropped in the panic of
1893"
Then Bank Examiner Jones came I'D
from Springfield, and was surprised TO find
the bank surplus was only 81, 900. Spalding
said the 80 per cent assessment would have
saved the bank, but the eastern bond
holders would not have it he went out to
his country club to think 1t over.
Further during the examination Spalding
admitted that May 8, 1893, when The as
sets were s935.ooo. the bank was liable for
all this except surplus of $4,000, and hat
II the bank had closed on that day il would
have been just $4,000 ahead. However. of
these assets there were $4,000 in Idaho
Canal Company's bonds. which were not
salable, and a large amount of the Red
Oak. Investment Company's paper for
which there was also demand The
matter of the cash and bonds of the State
University. amounting to 100000, was not
touched upon.