The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-12-23
SlNGERLYS CRASH
Chestnut Street National
Bank, Philadelphia,
Closes Its Doors.
TRUST COMPANY FOLLOWS SUIT
The "Record" a Paying Property
But the Editors Pulp and
Paper Mills Heavy
Burden.
TRUST COMPANY FOLLOWS SUIT

Ht11LAoLlLf TIA, 1|SS. Sos 1oV''
doors of the Chestnut Street National
Bank were closed this morning by direc-
ton of National Bank Examiner Hardt.
Its affairs are now in the hands OF the
Bank Examiner William NJ. Singerly is
president of the bank.
The Chestnut Street Trust Company,
which operated in conjunction with the
bank, also suspended. Mr.. Singerly is also
president of the Trust Company
A notice was posted ON the door which
read as follows:-
"The Chestnut Street National Bank
is closed for business, and IS IN Ihe
hands of the National Bank Ex-
civilian NJ. HARDT,
Examiner"
A crowd OF depositors soon gathered
about the door, but there was no especial
excitement, and as a general rule after
each had learned the nature of the notice
on the door he moved away and his place
in the crowd would be taken by others
anxious to gleam something regarding the
situation. The bank has at all times
held good reputation, but it has been
known for some time that its business
and necessarily its profits have fallen OH
The banks suspension, however, was a
great surprise, especially so in view OF the
high standing of its officers.
William NJ. Singerly is its president and
Isaac Cooper vice-president. The banK lnd
was started in 1887 on capital of 500, ,0O0,
with Robert E. Pattison as president.
When the latter took his seat as Cover
nor of Pennsylvania, in 1881, Mr.. S1ngeriy
succeeded him as president of the bank.
No statement of the banks liabilities
could be obtained this morning.
The Chestnut Street Trust and Saving
Fund COMPANY, the officers of which are
~, hon md 7 a
Offices being located in the same building,
was also closed for business today, put
to what extent the trust company is IN
yolyed in the bank aHalrS mas Hol YET
been announced
The last report of the condition OF the
Chestnut Street National Bank, made on
October s. 1897, was:-
Resources-Loans and discounts, 81, 790,-
50S.65; overdrafts.- secured and unsecured,
$3,552. "a; United States bonds to secure
circulation $4,000; United States bonds to
secure United States deposits, Sl0O, 600;
premiums on United States bonds $1,000;
due from national banks, SGT, ,63l. 70; Que
from State banks and bankers, IS, sd. 4e
due from approved reserve agents, $780,
49,. rs; checks and other cash items, $2a,-
3S7.74; exchanges for clearing house AI4.-
5s5.47; notes of other national banks,
s31S4; fractional paper currency, nickels
and cents, s.. 1854; lawful money reserve
in bank, s140040-5o: redemption ln fund 1, with
United States Treasurer, S2,Zo0. Iotal
liabilities stock paid in, $500
600; surplus fund s150,00o; undivided
profits less expenses and taxes paid,
$24, ,924.S6; national bank notes outstanding,
$43. 500; due to other national banks, So0o,-
l1Q. Al; due to State banks and bankers,
S134 70; individual deposits subject to
check. $2, OBS, S56 demand certificates OF
deposit, s., $40; cashiers checks outstand-
ing, s126,57251; United States 49, deposits,
$s4. .71510; bills payable, $25O,O00. Total,
The bank was a city depository and
there were city funds in the bank to the
hn tatn of l.
vania also had on deposit with the bank
on December l $225, Geo. according to the
official statement of State Treasurer Hay
wood. issued on that date.
The bank was alsoi a depository of the
National Government, but the Govern
ment is fully protected against loss by
holding 100000 United States bonds as Sc
curity.
1t is said that bank holds the funds of
the city police and iremen's pension fund,
the school teachers pension and annuity
fund and deposits of the Fairm0unt Park
Commission which latter includes be-
quests for the park Improvement. Dur
ing the past few weeks President Singerly
has made great efforts to enable the bank
to meet its liabilities. Yesterday the
matter was laid before the Clearing House
Committee of the Philadelphia banks and
at a meeting of the committee a PROPOSE
ton to issue $2,000,000 six per cent. pre-
ferred stock of the Record Publishing
Company as collateral for loans was con-
sidered The investigation developed that
this offer was not sufficient to justify the
banks in advancing the needed funds.
The members of the Clearing House say
that no other banks are involved in the
failure.
Concerning this phase of the case Mr..
Singerly said today that arrangements
had been made to make an extra stock
issue of s., ,0G0 900 by the Record Publishing
Company and that it was thought that
would be satisfactory, but somehow or
other the plan fell through"
Further than this Mr.. Singerly declined
to discuss the banks troubles. He said
fIyf1xr lan
sued by the Bank Examiner would ex-
plain the situation.
The State Loser.
HARRISBURG, Pa. Dec. %, 1S97.-It
was announced today by the State Treas
urer that the State has $2250oo on deposit
in the Chestnut Street National Bank of
Philadelphia
Cause OF Abe Collapse.
WASHINGTON, Dec. %, 1S97.-Mr. Eek
els, the Comptroller of the Currency, said
today in regard to the failure of the
Chestnut Street National Bank of Phila-
delphia that the suspension was primarily
due to the shrinkage in the value of the
bonds and notes of the Singerly Pulp and
Paper Mills. located at Elkton, Nd The
capital of the bank is $500000, and at the
present time its deposits aggregate about
81 100000 and its surplus about $500
Mr. Eckels has been in Philadelphia sew
eral times recently trying to make ar
rangements by which the pulp and paper
mills securities could be taken out of the
assets of the bank, and preferred stock
of the Philadelphia Record Company SUBJ
stttuted.
BY this and certain other changes Mr..
Eckels hoped to put the bank in first
class condition Up to five o'clock last
night It was thought that the plan would
be adopted but at that time a hitch oc-
Cured which rendered suspension neces-
sary When the pulp and paper mills
securities was taken by the bank they
were regarded by everyone as first-class,
but since that time paper has fallen enor-
rnously in price and the securities have
deprecated in proportion. Mr.. Eckels
said there was not the least suspicion of
any wrong-doing on the part of anyone
connected with the bank and he still had
strong hopes of arranging for the volu1i-
fary liquidation of the banks affairs with
out the expense incident to the appoint
nlent of a receiver.
Mr.. EcSels expressed the belief that
the bank ultimately would pay every dol-
lar it owes The Philadelphia Record, .
which is owned by Mr.. Singery, Mr..
Fckels said is a very valuable property,
paving about five per cent annually on
about S5,0o0000.
New York Banit All Right.
NEW YORK, Dec. %, 1Se7.-According
to a report furnished to the New York
Financier'' by John c. Boyd, manager OF
the Philadelphia Clearing House, the fol-
lowing was the condition of the Chestnut
Street National Bank for the week pre-