The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-24
A PHILADELPHIA INSTITUTION
FORCED BY STRESS OF CIRCUM-
STANCES TO SUSPEND.
VOLUNTARY LIQUIDATION.
OBLIGATIONS OF THE CONCERN
MAY BE GUARANTEED BY A
SYNDICATE.
CAUSE OF FAILURE EXPLAINED.
Improbable Investment In q Paper
Plant by the Head of the
Banking House.

PHILADELPHIA, Pa, Dec. pa
sensation was created in this city today
by the announcement Of the suspension
of the Chestnut Street National bank,
regarded as one Of the strongest finan-
cial institutions in the city. The sus-
pension carried with 1t the closing of
the Chestnut Street Trust and Saving
Fund company doing business under
the state banking laws William M.
Singerly, publisher of the Philadelphia
Record, is president of both companies,
and the same men, with one exception,
act as officers and directors.
The first information the public re-
ceived that the banks were in trouble
was in the form Of notice posted this
morning on the door Of the building oc-
cupied Jointly by the two concerns.
signed by National Bank Examiner
William M. Hart. to the effect that the
Chestnut Street National bank had
closed its doors pending an investiga-
ton of it's affairs. No statement of as
sets and liabilities is available, but it
is stated that the deposits Of the
Chestnut Street bank amounted to ST.,
$780, 900.
President Singerly gave out brief
statement tonight in which he said:
I'VE are working to secure the indebt-
edness of the two banks so that they
can go into voluntary liquidation and
thus avoid receivership."
In this connection, Deputy Comp
troller Of the Treasury George NJ. Cot
fin, who was sent here from Washing
ton by Comptroller Eckles today, said:
THE matter Of putting the Chestnut
Street National bank into voluntary
liquidation has been taken up by Phil
adelphia men Of great financial abil-
ity. Their first step will be to ascer-
tain the value of the assets Of the
bank. They must first be salts fed that
they have value sufficient to war
rant them in assuming the indebted
ness"
Mr. Coffin will remain here several
days aiding the men who have taken
upon themselves the task Of extricating
Mr. Singerly from his financial diff
culties. These gentlemen are in con-
sultation tonight and the belief is
strong that they will provide the funds
necessary for voluntary liquidation
of the two banks.
VOLUNTARY LIQUIDATION.
1t was known for some time in bank
ing circles that Mr.. Singerly's banks
were in trouble, and the national bank
hammer, it is said, was aware of the
i condition of affairs. Last night a num-
Der of the leading bank officials Of the
10 mo 11Tafi1
nearly o'clock this morning, 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 100000 prefer
red stock of the Philadelphia Record
had been practically agreed to when the
discovery was made that, because or
the involved condition Of the trust COM
pany's finances, this sum would not be
within several hundred thousand dol
lars of the amount required. Negotia-
lions were therefore declared off and
the banks were forced to the wall Now
it Is hoped that the committee, which
began tonight where the former COM
mittee left off, will succeed in satisfac
torily adjusting the finances, and thus
permit the banks to pay depositors dol
lar for dollar. The net earnings OF the
Record last year are said to have been
$249, 900, 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 paper mill
at Elkton Md, one of the largest in the
country. One statement placed the sum
thus involved at nearly million dol
lars Mr.. Singerly also has much
money invested in other enterprises in
this and other cities. Rumors were CT
rent 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 con-
troll of the paper and will continue at
it's head.
On Monday, of this week, the Chest
nut Street National bank made the
following report to the Philadelphia
clearing house:
Loans and discounts observation-disclosures 81, 261GO
Legal reserve 59b,VoO
Deposits ....... .......'... $500. 1'ao9' O0O
Due from banks Observation-Disclosures. $4,000
Due to banks .................... SIS sS 00o
The reserve has been below the legal
requirements for several weeks. The
DEPOSITS on Oct s. when the bank re-
ported to the comptroller of the treas
ury, amounted to $2,035,256. The
shrinkage in this item, therefore, has
been more than 100000 in a little over
two months.
STEADY RUNS.
1t is said there have been quiet but
steady runs on both banks for several
days past OF the deposits in the bank
the city is represented by $3.50, 554; the
state by $225,000 and the national gov
eminent by large sum, but all Of
these creditors are believed to be pro-
tected. When the trust company made
it's last report to the state authorities,
on Nov. 16, the deposits amounted to
81, 4a2, 1858.
A meeting Of the directors of the
trust company will be held at 10 O'Clock
tomorrow morning to decide upon
course Of procedure. 1t is believed the
state bank examiner will then take
formal possession Of the institution.
State Bank Commissioner Gikeson
was in the Office of the company a
short while today and it is stated that
he has had the books of the institution
under inspection for some time past.
Much sympathy is expressed on all
sides for Mr.. Singerly. He has occu-
pied such prominent place in the af-
fairs Of the city and the state for years