The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-04-09
Amount May Be Larger When
All is Known.
Stole $8OO,OOO of School
Money and Bonds.
TRUSTEES WERE IN 1T.
Guardians of the University
Funds Consented
To Allow the Bank to Use
States Money.

Chicago, April 9.-Warr&nts for the
arrest of Chas. w. SpaIdipg, president
A. D. AveriI, vice president, and c. E.
Churchill, cashier of the defunct Globe
Savings bank, have been sworn out by
Frank E. Stone, of the firm of Stone &
Francis, depositors in the institution.
Mr.. Stone went before Justice w. T.
Hall and a complaint charging the Off
GERS of the bank with embezzlement,
was drawn up. The three warrants
were at once issued and will be served
some time today.
The officers may have some difficulty
in finding Spalding. Since the failure
of the bank he has been "prostrated -
Friends say he is under medical care
in the city. At the Plaza hotel, where
he lives, it was said last night, he had
not been there for "a hours.
c: E. Churchill has surrendered him
self and furnished bonds for his ap-
pearance- President G. w. TSpaIding
and Vice President A. D. AveriII, have
not yet put in an appearance.
Developments today have brought out
the fact that far greater amount of
University of Illinois funds is involved
in the suspension of the bank than had
been supposed.
Two years ago the state legislature
appropriated S423, 900 of which accord
ing to the state laws enough was to be
drawn out monthly to meet the current
expenses OF the university. 1t appears
however that in consideration of 21A
per cent interest en- the funds, the uni
Versity trustees allowed Treasurer
Spalding to withdraw the whole sum
from the treasury. This is admitted by
members of the board. Thus not only
are 100000 worth of school bonds
missing, but 1923, 600 in cash is tied up,
a total of 1929, 600. To add to the COM
plieatioR, it is said that should Presi-
dent Spalding be una BILE to account for
the funds his bondsmen will refuse to
be held responsible, their defense being
that a private deal of that kind be-
tween the university board, the state
treasury officials and Treasurer Spald-
/ ing is sufficient cause to release them
from their obligations.
There is gross carelesSness charged to
the university officials during the latter
part of Mr.. Spalding'S term as treaSur-
er of the institution. 1t is said his ac-
counts have not been audited for over
two years. His term expired the first
part of March, but owing to a disagree
ment among the trustees, as to his sue
cessor, no election for new treasurer
has been held.
STOCKHOLDERS NOT SURPRISED
Nashua, N. H, April 9.-The news
that warrants have been issued for the
arrest of President Charles w. SpaId-
ing, Cashier c. E. Churchill and Vice
President A. D. AVerill of the defunct
Globe Savings bank of Chicago the
stock which is largely owned in this
state was no great surprise to the
Nashua stockholders. While no open
charges have been made, there have
been many complaints of mismanage-
ment on the part of the bank officials
and when about two weeks ago a re-
quest that the stockholders contribute
an assessment of so per cent was made
a committee of two was appointed to
look into the banks affairs
Among the holders of stock in New
Hampshire are the Nashua Savings
bank, Wilton Savings bank, Milford
Savings bank, New Hampshire Bank
ing company, two banks at Keene and
several private individuals. The banks
however are not as heavily involved as
are the individual INVESTORS.