The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1897-12-28
PHILADELPHIA AST0UNDED
Ry ANNOUNCEMENT OF FAILURE
OF TWO OF ITS BANKS

The Chestnut Street National and Chest
nut Street Savings Banks Close Their
Doors-Both Presided Over by MI. Sin.
eerly, Publisher Of The Philadelphia
Record-NO Oiher Banks InvOlved-Ef
forts to Allow the Banks to 60 Into Vol
untary Liquidation
Philadelphia, December ga SEN
sation was created in this city today by
the announcement of the suspension OF
the Chestnut Street National bank, re-
garded as one of h strongest fnan-
cia1 Institutions in the city. The sus-
pension carried with it the closing OF
the Chestnut Street Trust and Saving
Fund Company, doing business under
the state banking laws. william s..
Singerly, publisher of The Philadelphia
Record, is president of both companies
and the same men, with n exception,
act as officers and directors.
The first information the public re-
ceived that the banks were in trouble
was in the form of a notice posted this
morning on the door Of the building
occupied jointly by the two concerns,
signed by Natianal Bank Examiner
William Hardt, to the effect hat the
Chestnut Street National bank had
closed it's uoors pending an investiga-
ton OF its affairs. No statement OF
assets and liabilities is available but
1t is stated that the deposits OF the
Chestnut Street bank amounted to
81, zoo, 900 and Of the trust company
81, 300, 900.
President Singerly gave out q brief
statement tonight in which he sold:
w are working to secure the iEde
edness of the two banks so that they
can go into voluntary liquidation and
thus avoid a r~eceivership."
in this connection Deputy Comptroller
Of the Treasury George NcCof1in, who
was sent here from Washington by
Comptroller Eckels, today said: The
matter Of putting the Chestnut Street
National bank into ~vC1unary liQuidA-
ion has been taken VI by Philadelphia
men OF great financial ability. Their
first step will be to ascertain the &lN
of the assets OF the bank. They must
first be satisfied hat they have value
sufficient to warrant them in assuIn-
ing the indie tedness."
Mr.. Coffin has had great experience
I'm resuscitating troubled banks and
he will remain here yer La aid
ing the men who have taken upon
themselves he task of extricAtiHg Mr..
Singerly from his financial difficulties.
These gentlemen are in consultation
tonight and the belief is strong that
they will provide the funds necessary
for voluntary liquidation Of the two
banks.
1t was known for some time in bank
inp circles tn q + Mr. " n~oT1v's hanka
were in trouble and the national bank
examiner, it is said, was aware OF the
condition OF affairs. Last night q num-
der of the leading bank Omcials OF the
city had a conference lasting until
nearly 8 O'Clock this morning, consider
ing the matter OF raising sxffcient
money to relieve Mr. Singerly's banks
of their distress. 1t is understood that
a proposition to float 81, 900, 900 prefer
red stock OF The Philadelphia Record
had been practically agreed to when
the discovery was made that because
of the involved condition OF the trust
company's finances this sum would
not be within several hundred thou
sand dollars Of the amount required.
Negotiations were, therefore, declared
off and the banks were forced to the
wall. Now it is hoped that the com
mittee which began tonight where the
former committee left off. will succeed
fin satisfactorily adjusting the finance
and thus permit the n to pay dol
lar for dollar.
The net earnings of The Record last
year are said to have been S249, 900.
more than sufficient to pay dividends
on a sum sufficient to pay all OF MIR.
Singerly's Indebtedness to the banks.
The statement of the causes OF the
failure current here agree with that
made by Comptroller Eckels at Wash
fngton 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
sun thus involved at nearly 81, 900, 900.
Mr.. Singerly also has much money in
vested in other enterprises in this and
other cities. Rumors were current 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 control OF the pa
per and will continue at its head.
On Monday of his week, the Chest
nut Street National bank made the fol-
lowing report to the Philadelphia clear
ing house: Loans and discounts
S2,261, 600, legal reserve 1896. 600, deposits
81 S9, 600, due from banks 1855, 900, due
~ III SUCJ,OUu, Sl Sfo,UuV.
The reserve has been below the legal
requirements for several weeks. The
deposits on October 9Th, when the bank
reported to the comptroller OF the
treasury, amounted to s., 035. $50. The
s~hrinkage in this item, therefore, has
been more tina $500, 900 in a little over
two months.
1t is said there have been quiet, but
steady, runs on both banks for sew
eral days past. OF the deposits in the
bank the city is represented by $3.50,
554; the state by $225, 900 and the ma
tional government by a large sum, but
all of these creditors are believed to
be protected.
When the trust company made its
last report to the state authorities on
November 16h, the deposits amounted
to 81, 1872. 253. A meeting OF the directors
of the trust will be held at 1C
o'clock tomorrow to decide upon a
course of procedure. 1t is believed the
state ban examiner will then take
formal possession of the institution.