The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1897-04-16
THE sPALDING EMREzzIEMEMr.
Some of the 100000 University Endow.
ment Bond- Found they had Been Sold
or Hypothetical.

Chicago, April 12.-The disappearance
Of $4,000 Of endovIre-t bonds Of the Cni-
yersity Of Ilionis h. caused n general
scanning Of secuTities held by the differ
INT banking instItH ions in this city ma
1t has been discovered that the First
National bank has in lis vaults uS1iiy
S9s ,0Dn of the bonus which formed TIE 81
dov-ment fund Of tEc university. q @hlrn
President G. W. Sp@I-iTE. OF che i1s-sFent
Globe Savings bank. as Treasurer 81 tae
university. was The custodian Some o.
these bonds were sod oItE.-@t % the
bank, others are he'd a5 co'.1te.ai Tor
loans made to Spal3i.S. Anc -e- Eat.snai
bank is said to hold some a ne bonds.
Some trace of the cash belonging To the
University OF Iu.oris has beer found. on
Saturday. April %v3. the ItSr business day
before the failure OF the Globe Savings
bank Herbert skinner. ~Spaldiag's private
secretary, drew &.5.e| from. the Globe say
ings bank and deposited Il in the North
western bank % S2a.dins's private ac-
count.
Treasurer Sraldinr. who was expected
to come before the meeting Of the board
today and explain the disappearance OF
the university t"nas, failed 10 put IN an
appearance - the meeting. which was
held behind csoEcd doors. L. c. Keith
was elected treasurer in Mr.. Spalding 5
place.
1t was c-ident that the trustees are
agreed ~ one point. and that is that
Mr.. SpGiGing has hypothetical the en-
downen funds and that the board must
nov" confne its attention to the work OF
corraling securities sufficient to cover the
missing bonds and the cash fund of $l3o,-
0J9 in Mr.. Spalding's possession when the
Globe Savings bank failed. a list which
was received from Mr.. Spalding. giving
the kind and denomination of securities
with which he offers to cover his liability
for the endowment bonds, was submitted.
This the trustees agreed was an admis-
sion by Mr.. Spalding that the 800, 900 en-
dowmen bonds are not where he can OBJ
tain possession of them.
Additional charges are made in regard
to the alleged mismanagement of the at
fairs of the Globe Savings bank in an
amended bill filed today by Charles +.
Churchill, cashier of the defunct bank.
The bill is part of the receivership pro-
ceedings, and brings into the case a num-
Der of persons not heretofore involved.
President ~Spalding's connection with the
bank is dealt with extensively in the
; amended bill. 1t is averred Spalding in
| duccd H. c.. Haley to make three promis-
sorry notes, a~ggregating upwards of SIS, 300,
payable to the order Of Spaldings or the
bank, upon the assurance of Spalding
that he would deposit SAG, 900 in merchana-
BILE bonds as security. Spalding, it is
charged, used the money for his own ben
eft and set apart $40, 900 in bonds.
Property belonging to the bank has been
applied by Spalding, it Is declared, in the
purchase of real estate, and it is charged
that he caused a portion Of this real es-
tate to be conveyed to others, besides
himself, in order to conceal his interests.
the money Of the bank to pay life inSur-
ance premiums, having a policy to the
extent or Sl0U,Uu. another section OF the
amended bill says that SDalding, Edward
Hayes, Charles J.. Ford and John w.
Lanehart, deceased, the last either for
himself or Ex-Governor John p. Altgeld,
purchased a tract of land OF eighty acres
in Cook county, and Spalding, it is al
legged, paid for his share of the property
out of funds of the Globe Savings bank
and it is also charged that Ford, Lane
hart and Altgeld knew this. OF the sum
of $1O3. 900 of which the state auditor or
dered charged to the profit and less ac-
count of the Globe Savings bank, it is
represented ST. 600 was an Indebtedness OF
John =. Altgeld and that 5000 was an in
debtedness nominally due from John w
Lanehart. 1t is charged, however, that
the last amount was, in fact, a loan to
Ex-Governor Altgeld. It is also claimed
in the bill that Ex-Governor Altgcld has
been transferring his property will the
intention of keeping it away from the
creditors of the bank.
President Spalding, Vice President
Averill and Cashier Churchill, of the
bank, put in an appearance today in the
court Of Justice Hall and gave bonds for
their appearance April 18th to answer to
the charge Of embeZZlement preferred
by Adolph Edelnan, one of the depositors
! Of the bank.