Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-04-14
UNIVERSITY FUNDS.
HOW THOSE OF THE ILLINOIS IN
sTITUTION WE'RE MIsAPPLIED.
SPALDING And TnE GLOBE BANK.
Alleged Completely of Ex-Governor
AItgeId md Others In the Wrong
Doing of the Discredited Ex-Presi-
dent.

CHICAGO, ILL, April 13.-The disap-
pearance OF $4,000 Of endowment bonds
OF the University Of Illinois has caused a
general scanning of securities held by the
different banking institutions In this city
and it has been discovered that the First
National Bank has in its vaults nearly
100000 of the bonds which formed the
endowment fund of the University, of
which President c. w. Spading, of the
insolvent Globe Savings Bank, as trea-
surer of the University was the custo-
dian. Some OF these bonds were sold
outright to the bank others are held as
collateral for loans made TO SFalding
Another national bank is said TO hold
some Of the bonds. Some trace Of the
cash belonging to the University OF Hi
nois has also been found. on Saturday
April Sd. the last business day. before the
failure of the Globe Savings Bank, Her
bert Skinner, Spalding's private secre-
tary. drew $4,000 from the Globe Savings
Bank and deposited 1t in the Northwest
ern Bank to the credit Of Spalding's pri-
yate account.
Treasurer Spalding, who was expected
to come before the meeting of the board
to-day and explain the disappearance Of
the University funds, failed to put in an
appearance At the meeting, which was
held behind closed doors, f. G.. Keith was
elected treasurer in Mr.. Spaldings place
1t was evident that the trustees are
agreed on one point. and that is that Mr.
Spalding has hypothecated the endow-
ment funds. and that the board must now
confine it's attention TO the work of cor
railing securities sufficient TO cover the
missing bonds and the cash fund of $780,
900 in Mr.. Spaldings possession when the
Globe Savings Bank failed A list, when
was received from Mr.. Spalding, giving
the kind and denomination of securities
which he offers, to cover his liability for
the endowment bonds. was submitted
This. the trustees agree. is an admission
by Mr. Spalding that the 100000 worth or
endowment bonds are not where ne can
obtain possession Of them.
GLOBE BANK MISMANAGEMENT.
Additional charges are made in regard
TO the alleged mismanagement or the al
fairs of the Globe Savings Bank, in an
amended bill filed to-day by Charles r..
Churchill, cashier of the defunct bank.
The bill is part of the receivership pro-
ceedings. end brings into the case num-
ber of persons not heretofore involved.
President Spaldng's connection with
the bank Is dealt with extensively IN
the amended bill. 1t is averred that
Spalding induced II. c. Haley TO make
three prornissory notes aggregating up
wards of $1,000. payable TO the order OF
Spalding. or the bank. upon the as
surance of Spalding that he would de-
post $4,000 in merchantable bonds as
security Spalding, ii is charged, used
the money for his own benefit, and set
apart $4,000 in bonds.
Property belonging TO the bank has
been applied by Spalding, ii is declared,
in the purchase of real estate, ana IL IS
charged that he caused portion or THIS
real estate to be conveyed to others be-
sides himself. In order 10 conceal his in
terest 1t is also averred that Spalding
has used the money of the bank to pay
life-insurance premiums. having policies
to the extent of $4,000.
Another section OF the amended bill
says that Spalding. Edward Hayes,
Charles j. Ford, and John w. Lanehart,
deceased, the last-named either for him
self or Ex-Governor John p. Altgeld. pur-
chased a tract of land of eighty acres in
Cook county and Spalding. ii is alleged
paid Tor MS snare OF property oul VI
the funds OF the Globe Savings Bank,
and it is also charged that Ford. Lane
hart. or Altgeld knew this. OF the sum
of $4,000, which the State Auditor or
dered charged TO the profit and loss ac-
count Of the Globe Savings Bank, 1t
is represented that Sl7000 was an in
debtedness of John p. Altgeld. and that
s. 900 was an Indebtedness nominally due
from John w. Lanehart. 1t Is charged.
however. that the last amount was, in
fact a loan to Ex-Governor Altgeld. IL
is also set forth that Governor Altgeld
has been transferring his property, with
the intention of keeping ii from the
creditors of the bank.
President Spalding Vice-President Ave
rilI. and Cashier Churchill. Of the bank.
put in an appearance to-day, in the
Court of Justice Hall. and gave bonds
for their appearance April 18th to an
swer to the charge Of embezzlement.
made by one of the depositors of the
bank.