The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-04-14
c. w. SpaIding, President of the Insti-
tuition, Alleged to Have Wrecked 1t
by Use of ''Dummies.''
MISSING BONDS LOCATED
UNIVERSITY OF ILLINOIS SECURITIES
HYPOTHECATED OR SOLD.
Used by Spalding, Who Was Treasurer
-AltgeId's Property Transferred.

CHICAGO. April 13-Each days develop
ments in the affairs of the defunct Globe
Savings Bank brings to light more rotten
ness. Charles w. Spalding who was presi-
dent of the concern, was also treasurer OF
the board of trustees of the University of
Illinois, and, stated in previous dis
patches he is accused of making away
with $3.50, 600 of the university's cash and Sc
curities. Besides this, he is charged with
gross Irregularities in the conduct of his
bank. Investigation indicates that in addi-
tion TO favored borrowers to take care of
the loose change that came into .e bank
there was also Il system of running in
dummies to sign notes and draw out cash
for the personal uses of the head official.
The receiver and his experts have not COM
pleted their inquiry yet and there is no tell
ing what may develop.
The disappearance of the siO0 900 of en-
dowment funds of the university has caused
a general scanning of securities held by the
different banking institutions in this city,
and ii has been discovered that the First
National Bank has in it's vaults nearly $780,
900 of the bonds, which formed the endow-
ment fund of the university. and of which
Treasurer Spalding was the custodian.
Some of these bonds were sold outright to
loans made TO Spaldng. Another national
bank is said to have some of the bonds.
Some trace of the Sl3o. 600 in cash lbeonging
to the University of Illinois has also beel
found On Saturday. April 3. the last busi-
ness day before the failure of the Globe
Savings Bank, Herbert Skinner, Spaldings
private secretary, drew $4,000 from the
Globe Savings Bank and deposited it i'm the
Northwestern Bank to Spaldings private
account.
Treasurer Spalding, who expected to
| come before the meeting of the board of
trustees of the university to-day and ex-
| plain the disappearance Of the university
funds intrusted to'his keeping, failed to put
| in appearance. AT the meeting, which
| was held behind closed doors, L. g. Keith
| was elected treasurer in Mr.. Spalding's
| place. 1t was evident that the trustees are
| agreed on one point, and that is that Mr..
| Spalding has hypothecated the endowment
| funds, and that the board must now con-
| fine its attention to the work of collecting
sufficient securities to cover the missing
bonds and the cash fund of $130.000 in Mr..
| Spaldng's possession when the Globe Saw
ings Bank failed. A list 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 admission by Mr.. Spalding that the
100000 endowment bonds are not in "a state
where he can obtain possession of them.
SPALDING IS ALTGELD'S FRIEND.
Notwithstanding the denial of ex-Gov-
ernor John p. Altgeld that he had nothing
to do with the selection of Mr.. Spalding
treasurer of the university in 1893, or that
l;e ;p6 tn he
appointment, interesting report was sub
mitted to the trustees this corning, which.
it is said, showed that the Ex-Governor was
directly responsible for the selection of the
bankers bondsmen. James L. Armstrong
is the trustee who is guarding the report. 1t
was made last December but it wGs
considered OF such Importance that IT did
not find its way to the records. Trustee
Bullard suggested last December that the
bond of Spalding should be strengthened,
and advised that a meeting be called at
once. The meeting was held, and trustee
Armstrong presented his report, which
showed that Altgeld was closely connected
with several of the bondsmen, and that he
was responsible for the appointment Of
Spalding The trustees do not receive any
salaries. and it is claimed they cannot be
held liable for any shortage.
John L. Altgeld owes the Globe SavingS
transferred property on Thirtieth street and
Groveland avenue, valued at s24,VOG 10
HI.
of the bank he transferred the property on
LaSalle avenue. nineteen feet south of
Cedar street, valued at $4,000, TO w. T..
Schlake. Last Saturday the ex-Governor
transferred the premises at Nos. 300 and 36s
LaSalle avenue, valued at $1,000. TO NJ. ID.
Matteson.
the Grand Calumet Heights Gun Club Mr..
Spalding secured one of his bondsmen, VINO
is surety for him as treasurer of the uni
versity for 100000. This did not come TO
light until yesterday morning, when a quit
claim deed was recorded in favor OF Charles
j. Ford and signed by the president OF the
valued at about $30S, 200, Mr.. Spalding hav-
ing one-third interest in ii, which he thus
turns over to Bondsman Ford for 81 and
other good and valuable considerations"
Ford is Ex-Governor Altgelds brother-in-
law.
Charges of all kinds were made yester-
day The depositors' committee threatens
to have the directors and stockholders Oh
the defunct bank arrested. More warrants
were sworn out for the arrest of President
Spalding. Vice President A. ID. Avrill and
Cashier c. f.. Churchill OH the charge of
embezzling $50 which was deposited in the
bank two days before the institutions doors
were closed.
AMENDED BILL OF CHARGES.
Additional charges were made to-day in
an amended bill filed by Charles E. Church
ill. cashier of the defunct bank. The bill is
part of the receivership proceedings, and
| brings into the case number of persons
not heretofore involved. President Spald-
ing's connection with the bank is dealt with
| extensively in the amended bill. 1t is
averred Spalding induced III. G. Haley TO
make three promissory notes aggregating
! upwards of $4,000. payable to the order of
| Spaldng or the bank, on the assurance of
| Spalding that he had a deposit Of $40. 900 in
| merchantable bonds as security. Spalding
| ii is charged, used the money for his own
benefit and set apart $40 900 in bonds. Prop
erty belonging to the bank has been applied
| by Spalding, 1t is declared, in the purchase
/ of real estate, and il is charged that he
| caused a portion OF this real estate to be
| conveyed TO others besides himself in order to
| conceal his interests. IL is also averred that
| Spalding has used the money OF the bank
/ TO pay life insurance premiums, having poll
| cies to the extent OF $4,000.
Another section of the amended bill says
| that Spalding, Edward Hayes, Charles l.
| Ford and John w. Lanehart deceased the
| latter either for himself or Ex-Governor
| OF eighty acres in Cook county and Spald-
| ing, il is alleged paid for his share OF the
property out of the funds OF the Globe Saw
| ings Bank and IL is also charged that Ford
| I.anehart or Altgeld knew this. OF the sum
| of $103,0 900 which the state auditor ordered
| charged To the profit and loss account of
| the Globe Savings Bank, IL is represented 4
| ST. 600 was an Indebtedness of John r Alt
geld. and that 5000 was an Indebtedness
nominally due from John w. Lanehart. Ii