The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-04-09
SECURITIES MISSING
AFFAIRS OF THE GLOBE SAVINGS
BANK IN BAD CONDITION.
Endowment Bonds of the Illinois Uni
versity WrOngfuily Used-Its
Cash Also Tied Up.

CHICAGO, April S--Developments to-day
have strengthened the belief that the af-
fairs of the Globe Savings Bank. which
closed its doors last Monday, are in much
worse shape than the directors willing
TO admit. In addition to $4,000 in cash
belonging to the University of Illinois.
which is tied up in the suspended institn-
ton endowment bonds to the value OF
s4O0, 600, also property of the University of
Illinois, are missing. This much Is ad-
mitted by President Mckay. of the board of
trustees Of the. university. These bonds
were intrusted to President Spalding OF the
Globe Savings Bank. A secret session of
the trustees was held to-day TO hear the
report of a subcommittee appointed yes
terday 10 communicate with Mr.. Spalding
TO secure some definite Information to
the cash funds intrusted to him as. treas
urer of the board and obtain assurance, If
possible. that the endowment bonds in
his keeping were safe. President Spalding
cannot be found and none outside of the
trustees appear to know where he is. Trus-
tee Armstrong said at the close of the
meeting that Mr.. Spalding claimed to be
sick, and sent him doctors certificate to
that effect. He had promised. however to
meet the directors next Tuesday and would
then try to settle.
This afternoon a list of bonds of coun-
ties and school districts i'm Illinois was SUBJ
mitted to Banker John Farson for pur-
chase. The list was in possession of a
firm whose name is withheld. According
to the law the university is allowed to
purchase county and school district bonds,
and MIR. Farson, knowing of the disappear
ance of the university's securities, expected
them to be there listed. He Immediately
submitted them to the university trustee
James Armstrong. who gave it as his opin-
ion that the bonds were undoubtedly those
missing from the securities of the univer-
sity. 1t was explained to Mr. Farson that
the bonds were given security various
notes; that the latter had not been paid.
| and that the bonds We're then offered for
| sale. AS Mr.. Spalding is the absolute Gus
| todan of the university's securities, it is
not known how the bonds could ever have
| passed from his hands without his knowI-
edge and consent.
| The board of trustees of the State Uni
| versty met to-day to consult the situation
in which the failure had left the institu-
| ton in. At the conclusion of the meeting
President +. M. Mckay. of the board of
| after the meeting had adjourned 'Spald-
| ings bond is for 100000 which. we are in
formed, is good He holds approximately
| $4,000 in cash belonging 10 various funds
| The trustees have no definite information
! as to the condition of these funds. Mr..
/ Spalding being sick and unable TO open his
| vaults at the presen' He Is TO meet the
| board next Tuesday make a full state
| ment Of the entire m
| ST. Paul Id. Cases.
| ST. PAUL, April S-After litigation un>
| precedented in this State, Judge Bum, of
| the District Court. has filed decisions in
| the bank cases. Following the suspension
| of the Bank of Minnesota, the Germania
and Allemania banks, many depostors ap-
| piled for order that their money and
| checks be returned to them. In the case of
| the Bank of Minnesota. Judge Bum ex-
amined the question of the insolvency of
| the bank previous To Dec. %, when it
| failed. He finds that the bank had per-
| sistently violated the state banking law
| that the officers had been receiving de-
/ posits with the full knowledge of the
| banks insolvency, and that the guilty
| knowledge gives to depositors II Dec. q
| the right to get their money IL they can
| trace il to the receivers. With respect to
| each of the class of funds. the court makes
| a distinct order i'm the case OF each bank.
| In general. the court holds that the title
to checks other banks remains with the
| depositors, but that the cash deposits cam
| not be traced, and therefore cannot be re-
| covered