New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-04-14
THE MISSING ENDOWMENT BONDS.
PART OF THEM FOUND IN CHICAGO BANKS
VAULT-SPALDING'S OFFEP To THE


Chicago. April 13.-The disappearance Of 10000
Of endowment bonds OF the University Of Illinois
has caused general scanning Of securities held
b. the different banking institutions In this city
and 1t has been discovered that the First National
Bank has IN its vaults nearly $4,000 Of the bonds
forming the endowment fund OF the University Of
which President c. W. Spadng, of the insolvent
Globe Savings Bank treasurer Of the University
was the custodian Some OF these bonds
sold outright to the bank others held col
lateral for loans made TO Spalding Another Ma
tional bank is said 10 hold some of the bonds.
Some trace OF tho cash belonging TO the Uni
versity has also been found. On Saturday. April
g. tho last business day before the failure Of the
Globe Savings Bank. Herbert Skinner. Spodng's
private secretary. drew $4,000 from the Globe Bank
and deposited it in the Northwestern Bank to
Spaldings private account.
Treasurer Spaldi1g. who was expected 10 come
before the meeting Of the Board OF Trustees and
explain the disappearance of the University funds.
failed 10 DO so. r. G. Keith was elected treasurer
in Spading's place. A list recered from Spalding.
giving the kind and denomination of securities
with which he offers TO cover his liability for the
endowmen: bonds. was submitted. This, The trus-
tees agreed. was an admission by spading that
the 10000 endowment bonds are not where he can
obtain possession of them.
Additional charges are made In regard 70 Inc al
legged mismanagement of the aifairs OF the GloDe
c chss F. a churchi cashier of the defunc bank
The bill is part OF the recevershlp pfoceeahgs ana
brings into the case HUMBER VI Hot Heic-
tofore involved. -.
President spaldngs connection with the bank Is
dealt with extensively In the amended bill. 1t Is
averred that spalding induced Il! c. Haley to make
three promissory notes. aggregating upward OF $1,000
the assurance OF Spaldng that he would deposit SiO-
900 in merchantabe bonds security. Spalding, II
Is charged. used the money for his own benefit and
act apart $4,000 In bonds. Property belonging 10 the
bank has been applied by Spaldng. II is declared. In
the purchase OF real estate and II is charged that he
caused norton Of this real estate 10 be conveyed
10 others besides himself In order 10 conceal his In
terests 1t is also averred that Spalding used the
money Of the bank to pay life premiums having
polices to the extent Of $4,000.
Another section OF the amended bill says that
Spaldng Edward Hayes. Charles j. Ford and John
W Lanehart. deceased the latter either for him
self or Ex-Governor John =. Altgedl. purchased
tract OF land of eighty acres in Cook County, and
Spaldng Il is alleged. paid for his share o! the prop
erty out Of funds Of the Globe Savings Bank and II
this or the sum OF 10000 which the State Auditor
ordered charged to the proht-andos account OF the
Globe savings Bank II Is represented that $1,000
an Indebtedness OF Atgeld and that 5000 was an
Indebtedness nomnally due from John w. l.anehart
II IL charged however. that the last amount was IN
tact a loan 70 Altged. 1t IL also claimed In the bill
tho Altgeld has been transferring his property with
The intention OF keeping from the creditors OF the
bank. ,,, W., r-,,o,, ,,or,, al
cashier Churchill. of the bank appeared to-day In
Tho court OF Justice Hall ana gave bonds for their
annoarance on April ~ 10 answer the charge OF en-
bezzIemcnt preferred by Adolph Edelman. one OF
the deposltors Of the bank