The Portland daily press., 1897-12-24
DEPOSlTORS TO BIZ PAID.
Chestnut Street Bank Affairs Coming
Ont All Right.
ARRANGEMENTS BEING MADE TO
PREVENT RECEIYERSHIP.

Mr.. singerly's Finances Deeply Involved
Failure of His Big Pulp Mil Cansed
| Troable-Immense Profits of Phlladel-
| phia Record.
Philadelphia, December ga sensa-
tion was created in this city today by the
announcement Of the suspension of the
Chestnut Street National bank regarded
as one OF tho strongest financial institu-
t1ons in the city. The suspension carried
with it the closing Of the Chestnut Street
trust and Saving Fund company, doing
business under the State Banking laws2
william M. Singerley, publisher OF the
Philadelphia Record, is president of both
companies, and the same men, with one
exception. act as officers and directors.
No statement of assets and liabilities is
available, hut it is stated that the de-
posits of the Chestnut Street bank
amounted to sl,700,O00 and of the Trust
company 81 300. .000. President Singerley
gave out a brief statement tonight in
| which he saidi.
We are working to secure the in
Edebtedness of the two banks; that they
can go into voluntary liquidation and
thus avoid re ceivership.
In this connection Deputy Comptroller
of the Treasury George NJ. Coffin, who
was sent here from Washington by
Comptroller Eokles today, said:
The matter of putting the Chestnut
Street National bank into voluntary
liquidation has been taken up by Phila-
delphia men of great financial ability.
Their first step will be to ascertain the
value of the assets of the bank. They
must first be satisfied that they have value
sufficient to warrant them in assuming
| the Indebtedness.
| These gentlemen are in consultation to-
night and the belief is strong that they
will provide the funds necessary for a
voluntary liquidation of the banks.
1t was known for some time in banking
circles that Mr.. Singerley's banks were
in trouble. and the National bank ex-
aminer it is said, was aware Of the con-
dltion OF affairs.
Last night number of the leading
bank officials of the city had conference
considering the matter of raising suffi :
cient money to relieve Mr.. Singerley' s
L
that IA proposition to float 50, 600, 900 pre-
ferred stock of the Philadelphia Record
had been practically agreed to when the
| discovery WAS made that because of the
! involved condition of the trust company s
! finances thi sum would not be within
several hundred thousand dollars of the
amount required. Negotiations were
therefore declared off and the banks were
| forced to the wall. Now it is hoped that
the committee which began tonight where
the former committee left off will sue
| ceed in satisfactorily adjusting the
finances and thus permit the banks to pay
depositors dollar for dollar. The net earn
ings of the Record last year are said to
| have been S249, 000, more than sufficient
to pay dividends on sum sufficient 10
pay all of Alr. S1ngerley's Indebtedness
| to the banks.
The statements of the cause of the
failure current here agree with that made
by Comptroller Eckles at Washington to-
day, that it was primarily due to the loss
of much money by Mr.. Singerley in his
unproductive paper mill at Elkton, Md.
one of the lnrgeat in the country. One
statement placed the sum thus involved
at nearly a million of dollars. Mr.
Singerley also has much money invested
in other enterprises in this and other
cities. Rumors were current to the effect
that the ownership of the Record would
pfs5S 4IUiii 41I kJAlSSIIGy UdU uA-Io Lib QG
MED, ,sstating positively that he is in abso.
Lutte control of the paper and will con.
tinue at its head.
OF the depositors in the bank, the city
is represented by $3.50, 554; the state by
s. 5000 and the National government by
a large sum, but all of these creditors arc
believed to be protected. When the Trust
company made its last report to the state
authorities on November Is, the deposits
IamOunteC to 81 492 263
| A meeting of the directors Of the Trust
company will be held tomorrow to decide
q course of procedure.
Much sympathy is expressed on all sides
for MIR. Singerley. He has occupied such
a prominent place in the affairs of tbs
city and the state for years past that the
news of his financial diffiulties naturally
created sensation. Mr. Singerley said
tonight that he had received hundreds oi
kilograms from all over the country ex-
pressieg the sympathy OF the senders.
Crowds were gathered in front of the
big granite banking building all day, but
all WAS quiet. A line Of policemen kept
the people moving. A great mum Der OF
small accounts were carried by tho Trust
company and apprehension was expressed
: that sG9aa distress might follow the fail
uTe. 1t She hopes of a quick settlen ent
are realized, however, all depositors will
be paid in lall --ithin a short time.
The Ch,-5tpuG Street National bank
was established in June, 1887, but it was
not incorporated until July 9th, of the
same year. Hon. Robert Z. Pattison was
its first president assuming the office
when be retired from the gcvernorship
When he again became governor in 1891
! Mr.. Singeriey succeeded him.
PHlLADEL PHlA BANK FAILS,