The herald., 1897-04-14
Partly Explain the Big Bank
Failure
HALF A MILLION MORE OR LESS
SOLD OUTRIGHT OR PLEDGED AS
COLLATERAL
An Amended Bill Filed Yesterday
Bringing Many New Names
Into the Case
ssociated Press Special Wire.

Associated Press Special Wire.
CHICAGO. April 1S.--The disappear
ance OF $40O coo endowment bonds Of the
University Of Illinois has caused gen.
eral scanning of securities held by the
different banking institutions In this
city, and it has been discovered that the
First National bank has in its vaults
nearly 100000 of the bonds. Some of
these bonds were sold outright to the
bank; others are held as collateral for
loans made to Spalding. Another nation
al bank is said to hold some bonds. On
Saturday, April 8, the last business day
before the failure of the Globe Savings
bank, Herbert Skinner, Spalding's pri-
vate secretary, drew $4,000 from the
Globe Savings bank and deposited it in
the Northwestern bank to Spalding' 8
private account.
Treasurer Spalding, who was expected
to- come before the meeting of the board
today and explain the disappearance of
the university bonds intrusted to his
keeping, failed TO put In an appearance.
At meeting. which was held behind
closed DOORS e. @. Keith was elected to
fill Spaldings place as treasurer. A list
was received from Spalding giving the
kind and denomination of securities he
offers TO cover his liability Tor the en-
dowment bonds.
Additional charges are made in re-
gard to the alleged mismanagement OF
the affairs of the Globe Savings bank in
an amended bill filed today by Chas. E.
Churchill, cashier of the defunct bank.
The bill Is part of the receivership pro-
ceedings and brings into the case num-
Der of persons not heretofore involved.
President Spalding's connection with
the bank is dealt with extensively in the
amended bill 1t is averred that Spald-
ing induced H. C. Haley to make three
promissory notes aggregating upwards
of SIS, 5,000 payable to the order of Spald-
ing or the bank, upon the assurance of
Spalding that he would deposit $40 900 in
merchantable bonds as security. Spald-
ing, it Is charged, used the money fer
his own benefit ard set apar. $40, 900 in
bonds.
Another section of the amended bill
says that Spalding, Edward Hayes,
Chas. J. Ford and John w. Lanenart,
deceased, the latter, either for himself
or Ex-Governor John p. Altgeld, pur-
chased a tract of land of eighty acres in
Cook county and Spalding, it is alleged,
paid for his share of the property out of
funds of the Globe Savings bank, and
1t is also charged that Ford, Lanehart
or Altgeld knew this. OF the sum of
s10S000, which the state auditor ordered
charged to the profit and loss account of
the Globe Savings bank. it is reported
that $4,000 was an indebtedness nomi-
nally due from Johr w. Lanehart. 1t
is charged however, that the last mat
ter was in fact loan to ex-Gov Altgeld
1t is also claimed in the bill that Gov.
Altgeld has been transferring his prop
erty with the intention of keeping T..
rom the creditors of the bank.
President Spalding. President
Averill and Cashier Churchill of the
bank put in an appearance today in the
court of Justice Hall and gave bonds for
their appearance April 10, to answer to
the charge of embezzlement preferred by
Adolph Edelman, one of the depositors
of the bank.