The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1897-04-17
FACE A DILEMMA.
Trustees Of University of Illinois
Are Sorely Harassed.
Missing Funds OF the Institution May
Cause the school 40 Ciose-Bad
Condition of Globe hank At
fafrs-AItgeId Under Fire.

Chicago, April 1.-the University of
Illinois may be forced TO close its doors
before the completion of the school
year. IL is without sufficient funds 70
meet its current expenses. Practically
ell OF its cash and securities are at
fected by the failure Of the Globe saw
hgs bank. The trustees have no au-
thority TO borrow money, and war
rants may not be legally issued upon
the treasurer unless ne has funds In his
possession with which to pay them.
Treasurer Spalding, of the board of
trustees Of the University of Illinois,
who was expected to come before u
meeting OF the board Tuesday and ex-
plain the disappearance of university
funds intrusted to his keeping, failed
10 put in an appearance. At the meet
Ing, which was held behind closed
doors, Il. G. Keith was elected treasurer
I'm Spaldng's place.
1t was evident that the trustees are
agreed on one point, and that is that
6palding has hypothecated endowment
funds and that the board must now
confine its attention 10 the work OF
corraling securities sufficient to cover
the missing bonds and a cash fund OF
100000 which was in Spalding's pos
session when the Globe savings bank.
of which Spalding was president,
failed. The list which was received
from Spalding, giving the kind and de-
nomination of the securities which he
offers to cover his liability for the en-
dowment bonds. was submitted. This,
the trustees agreed, was an admission by
6palding that 100000 of endowment
bonds are not in the state, where he can
obtain possession of them.
Additional charges are made in regard
10 the alleged Encouragement of the
affairs of the Globe savings bank in an
amended bill fled Tuesday by Charles
f. Churchill, cashier OF the defunct
bank. The bill is part OF the receiver
ship proceedings, and brings into the
case number OF persons not hereto
fore involved. President Charles w.
Spalding's connection with the bank is
dealt with extensively i'm the amended
bill. Ii is averred that Spalding in
duced III. c. Haley TO make three prom
issory notes, aggregating upwards of
$4,000, payable TO the order of Spald-
Ing or the bank, upon the assurance by
Spalding that he would deposit SAC, 900
In merchnntablc bonds as security.
Spalding, it is charged, used the money
for his own benefit, and set apart $4O,-
900 In bonds.
Property belonging 10 the bank has
been applied by Spaldng, it is declared,
In the purchase of real estate, and IL is
charged that he cnused a portion of
this real estate 10 be conveyed 10 others
besides himself, in order 20 conceal his
INTERESTS. 1t is also ayerred that SpaId-
ing had used the money of the bank to
pay life insurance premiums, having
policies 10 the extent Of Sl50,000
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 for ex-Gov John T.. Altgeld, pur-
chased a tract of land of so acres in
Cook county, and Spalding, il is alleged,
paid for his share of this property out
of funds OF the Globe savings bank,
and il is also charged that Ford Lane
hart or Altgeld knew this.
auditor ordered charged to the profit
and loss account OF the Globe savings
bank, IL Is represented that $1,000 was
Indebtedness of John T.. Altgeld. and
that $4,000 was indebtedness nominally
due from John w. Lanehart IL is
charged, however. that the last amount
was. in fact, a loan to eX-Gov. Aligeld.
1t is also claimed in the bill that ex-
Gov. Altgeld has been transferring his
property with the intention OF keeping
IL from the creditors of the bank Pres
ident Spalding. Vice President Avrill
and Cashier Churchill, OF the bank, put
In an appearance Tuesday in the court
of Justice Hall and gave bonds for their
appearance April 10 TO answer charge
OF embezzlement preferred by Adolph
Edeimnn, one OF the depositors in the
bank.
The Illinois home for female juvenile
offenders at Geneva is another nstitu-
ton connected with the failure of the
Globe savings bank through G. w.
Spalding. Spalding has been treasurer
of the home since May 12. 1896. and the
current funds Of the institution have
since then been on deposit with him.
AZ the time OF the banks failure he
had in his hands about $1,000, the
amount which remained from the state
appropriation OF $4,000. The managers
of the home are now wondering whcth-
er they will ever get Il back and how
they are 10 pay running expenses.
Senator Dunlap will offer n resolution
In the state senate to-day calling for
an investigation into the connection be-
tween the Globe savings bank and the
university funds.
Japan IL wntchfuI.
Yokohama, April l4.--The japanese
cruiser Namiva will sail from this mort