The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-04-14
SPALDING MADE A BIG STEAL.
GRAB GANIE PLAYED WITH FUNDS
OF THE globe BANK.


Part of the Missing Bonds of the
University of Chicago Found Hy-
pOthecated by SpaIding in Another
BnnlS-Fifteen Thousand Dollars Cf
the UniveFsfty's Cash Drawn Out
by SpnIding's Private Secretary
and Deposited Elsewhere to Spald-
ing's Credit.
Chicago. ILL.,, April 13.-The disappear
ance of 100000 of endowment bonds of the
University of Illinois has caused a gem
eral scanning of securities held by the
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. Spaldlng of the insolvent Globe Saw
ings Bank, as treasurer of the university
was the custodian. Some of the bonds
were sold outright to the bank, Others are
he'd as collateral for loans made to Pres
ident Spalding. Another national bank
is said to hold some of the bonds.
Some trace of the cash belonging to the
University of illinois has also been found
On Saturday, April 3, the last business day
before the failure of the Globe Savings
Bank, Herbert Skinner, President Spald-
ing's private secretary, drew $4,000 from
the Globe Savings Bank and deposited it
in the Northwestern Bank to President
Spalding's private account
Treasurer Spaldlng, 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 between closed doors. e. G. Keith
was elected treasurer in Mr.. Spaldlng's
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,
OO0 in Mr.. Spaldings possession when the
Globe Savings Bank failed.
A list, which was received from Mr.
Spaldng. giving the kind and denomina-
ton Of securities which he offers to cover
his liability for the endowment bonds, was
submitted This, the trustees agreed, was
an admission by MIR, Spaldng that the
$400 900 endowment bonds are not where
he can obtain possession Of them.
Additional charges are made in regard
to the alleged msmanagement of the af-
fairs of the bank in an amended bill filed
to-day by Charles e. Churchill, cashier
of the defunct bank. The bill Is part of
the receivership proceedings, and brings
into the case a number of persons not
heretofore involved.
President Spalding's connection with the
bank Is dealt with extensively la the
amended bin. 1t is averred that Mr..
Spaldng induced II. c. Haley to make
three promssory notes, aggregating up
wards of $4,000 payable to the order of
President Spalding or the bank, upon the
assurance of President Spaldlng that he
would deposit $40 900 in merchantable bonds
as security. President Spalding 1t Is
charged, used the money for his own ben
eft and set apart $4,000 in bonds. Prop
erty belonging to the bank has been ap-
piled by President Spalding, II Is declared,
In the purchase of real estate. and Il IL
charged that he caused a portion Of this
real estate to be conveyed TO others beside
himself, i'm order to conceal his interests
1t is also averred that Mr.. Spalding has
used the money Of the bank to pay his
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
latter either for himself or ex-Gov. John
p Altgeld, purchased q tract of land of
Spalding, it Is alleged, paid his share Of
the property out OF funds OF the Globe
Savings Bank, and IL is also charged that
Ford, Lanehart, or Altgeld knew this. OF
the sum Of 100000 which the state auditor
ordered charged to the profit and loss ac-
count Of the Globe Savings Bank II Is rep
resented that $1,000 was an indebtedness
of John p. Altgeid, and that 5000 was an
indebtedness nominaily due from John
w. Lanehart. 1t is charged. however
that the last amount was in fact loan to
ex-Gov. Altgeld. 1t Is also claimed in the
bill that ex-Gov. Altgeld has been trans
ferring his property with the intention Of
keeping 1t from the creditors Of the bank
President Spaldng, Vice President Av-
rill 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 10 to answer the charge
of embezzlement preferred by Adolph Edel-
~ A. a