The evening times., 1897-12-28
ECKEls WAS LONG POSTED
Two Years Ago He Knew Singer
ly's Bank Was Shaky.
COMPTROLLER TOO PASSIVE
Inquiry Into the Banks Acts shows
Questionable Financiering, Loans
Made in Disregard of Statutes.
and Political Deals Which May
Lose $500 900 of Peoples Money

Lose $500. 900 of Peoples Money
New York, Dec. 2S.-The Journal today
publishes the following disclosures; Out OF
the suspension of the Chestnut Street Ma
tional Bank and the Chestnut Street trust
and Savings Fund Company there is grow
Ing story Of questionable financiering,
Of loans made In disregard to the national
banking laws, aud a complication OF po-
litical and personal interests which made
it possible for nearly 100000 Of the
peoples money-city. State, and national
funds-to be tied up, II not irretriecably
lost. In the failures.
There is another story-as story OF strange
passivity-of the Comptroller OF the Cur
rency in permitting the Chestnut Street
National Bank to continue doing business
for two years after he knew that its
affairs were in perilous condition; rer-
rnitted IT also 70 -e-.ain q repository Ior
funds Of the United states Government.
Mr.. Eckeis has stated that he was ad-
vised Of the shaky condition Of the bank
many months ago, but did not cioseit up in
stanter, because IL he had done so at the
time, other Philadelphia banks would
evidently have succumEed. He has further
stated that he was confident Of President
singehy's ability and resources to pull
the tottering institution together again.
As result Of Comptroller Eek els le-
niency and Mr. Singerly's reckless bank
ing methods, the two institutions have
succumbed, with Liabilities Of nearly $4,-
OOO, 900 and assets which conservative H.
nanciers do not estimate at more than one
fourth of that amount. The accounts Gf
$4,000 depusitors are jeopardized, and the
wreck 1t is feared, will be as complete as
that Of the Keystone National Bank, come
years ago.
In speaking OF the failure Comptroller
Eckels said:
II have known of the condition OF the
Chestnut Street National Bank for two
years. Atthat time its affairs were in had
shape, and were brought to my attention.
One year ago could have closed the bank.
but it would not have done. 1t was in
election times.
II have u take chances on banks. Any
during the past foV years would ippre-
ciate this. Many Eanks have been IN the
vergeoffaiiure. saved them. 1 believed
in this case that Mr.. Singerly Could pull
through. Two years ago there vas no
money In the Country to in-est. 1 thought
that with the return of prosperity he would
be able to place his stocks at an advantage.
took the chance, and the condition OF The
hov to n Rant hiatt hu txrf,
years ago.
Last Tuesday 1 went to Philadelphia.
Mt. singeriy offered to place. So .00O. 900
stock in the Record On the market. a '-om-
mittee of financiers started out to secure
subscriptions. An hour before the amount
was subscribed run started on the bank.
The amount was finally subscribed, but too
late. 1 believe Mr.. singerly will pull cut
and the bank will pay dollar for dollar.
arm not ashamed Of anything hare done.
The char ce took proves that was right.
1.-The Government was In a position TO
lose nothing by the failure Of this bank, As
all of Its deposits were entirely Cover ID Ly
bonds. Al arrangement is now being made
by which o receiver will be appoin ted for
the bank, asit Will go into yolunt aryiiq ,ida-
tion."
All nitdut1phld PitiSs Slubtiis- VIM o.
sixty five is obliged to look upon the
wreck of his life work, and most OF Phila-
delphia implicitly believes in him, despite
the facts and rumors with which the
air is filled.
The worst OF these stories has it that
the bank accepted deposits up to the very
hour of closing its doors. tits alleged, too.
that political deals" between President,
y.x.x- -fP Ia. ,.N.,
immense deposits of the peoples money in
the wrecked institutions. after their un-
safe condition had become q matter Of
public knowledge. Nearly $6OO.0oO Of
public funds, including the teachers an
nuity and pension fund. are tied up, II not
irretrievabiy lost in the failure.
Itnow appears that Mr.. Singerly had bor-
rowed immense SUMS from the bank and
the trust company, and thar he is practi
cally iIsolvent. The schedule OF his estf-
mated indebtedness roots up grand total
OF So $50 900, of which amount he is said
to owe the hank and the trust company
over 81 500 900.
Comptroller Eckels was here Immediately
after the suspension of the bank, ostensibly
to consult as TO the best method OF straighl-
ening out its affairs. He turned to WISH
ington Friday with his deputy, and Bank
Examiner Han DIT is left with large force
or clerks to Jig out in detail the story of
reckless financial methods.
The direct cause Of the failure Of both tie
bank end the trust company, it is said by
well-informed financiers, lies in the fact
that William VI singerly, president Of both
concerns, had borrowed for use in outside
ventures Of his own sums of money greatly
Z n .
which any national bank is allowed by
law to loan to any individual, The ba 1k's
capitalization is $5OO,00O. Mr.. Sing ,rly
is said to be its debtor in sums exceeding
81, 200, 900.
Mr.. Singerly's securities for these loans
cannot be Immediately realized upon. In
some instances, 1t is said, by reason of
shrinkage Of values. the securities wouldnot
cover the face Of the loa ms.
How much the deficit will be cannot be
even guessed at until the accountant
of the assignee OF the trust company
and the hank examiner have finished .heir
task Of uEtangling the complicated nnok-
keeping mysteries which cover the rela-
tiuns OF the bank, the trust company and
the forty and one other schemes in which
Mr.. Singerly's restless ambition prompted
him to engage. 1t was in these outside
schemes that the Records great profits and
the banks deposits were lost. 50 1t is
alleged.
Investigation OF Treasurer Oeller's action
in having So much OF the city's money in
the wrecked hank will surely follow the
bank examiners announcement Of any
considerable eventual loss to the munich
pality.
People are particularly indignant over the
loss OF the entire teachers pension fund,
and over the multiplying stories of tie-
ppsits accepted a few hours before the