Evening journal., 1897-04-10
INSTITUTI0k HARD AlT.
The Illinois University Loses
Nearly $I,ooo,ooo
RESULT OF GLOBE BANK FAILURE.

RESULT OF GLOBE BANK FAILURE. |
Bonds and Cash Intrusted to the Wrecked
Financial Concern Are Misein War
rants out For the I,anl, officials ono
OF Them Likely to Get Away.
Chicago. April 1O.-Wamants for the
arrest of Charles W. Spalding. presi-
dent; A. u. Ayerill, vice president, and
c. Churchill, cashier of the defunct
alobe Savings bank have been sworn
out by Frank =. Stone of ,he firm of
store Francis, depositors in the in
stituc ion. Mr.. Stone went before JUS
tce W. T. Hall and a compla nt, charg-
ing the Adfiiters of the gank with en-
bezzleme Ut la receiving money after the
bank was- fltsovent was drawn UP.
Churchill urrendered himself and fur
nished bona for his appearance. Pres
ident spaldhsg and Vice President Av-
erE have NOS yet appeared. The Off
GERS may have some difficulty in find
ing Spalding- since the failure of the
bank he has befs1 'prostrated." Friends
say he is un6er Eledical care in the city.
At the Plaza ho tel. where he lives. it
was said that he had not been there for
"A hours or more.
Late development have brought out
the fact that a far greater amount OK
University Of Illinois funds is involved
in the suspension Of the bank than has
been supposed. TWO years ago the
state legislature apr ropriated $4,000,
of which, according TO the state laws,
enough was TO be drlv1n out monthly
to meet the current expenses Of the
university 1t appears. however, that
in consideration of 215 per cent inter-
est on the funds the university trus-
tees allowed TreasuI er Spalding to
withdraw the whole sum from the
treasury. This is admitted by members
of the board Thus not only is 100000
worth of school bonds missing. but
S423,OOO in cash is tied up, a total of
SS23000 To add to the complications,
it is said that should Pre- sident Spald-
ing be unable to account for the funds
his bondsmen will refuse to be held re-
sponsible. their defense being that a
private deal of that kind between the
university board, the state treasury Of
fcials and Treasurer spalding is suffi-
cient cause to release them from their
obligations.
Gross Carelessness Is Char sed.
There is gross carelessness charged to
NE university officials during the lat
Ger part Of Mr.. Spaldiass term as
4 treasurer Of the institut0n- 1t is said
his accounts have not been audited for
over two years. Nothing definite as to
Mr.. Spalding's accounts with the uni
versity can be ascertained till next
Tuesday In the meantime the case
assumes the aspect of a chase between
the University of Illinois and the Chi
cago Title and Trust company, assignee
of the suspended bank. to see who can
get first claim on the property of Mr..
Spalding
Acting on the suggestion of the trus-
tees of the University of Illinois, Direc-
tor Leman Of the Globe Savings bank
has begun a suit for injunction in the
circuit court to restrain President
Spalding from taking anything out OF
the vaults Of the Globe Savings bank
or the vaults of the Globe Safe De-
posit company, which were used by the
bank. This action is said to have beer
taken because II is not known where
the bonds belonging 70 the university
endowment fund are being kept. It is
said that in the vaults of the Safety
Deposit company Spalding was sup
posed to keep the bonds belonging tC
the endowment fund.
The board of trustees of the State
university met yesterday TO consult
over the situation in which the failure
had left the institution. At the con
clusion of the meeting President +. M
Mackey of the board of trustees gave
out the following statement:
"Spalding's bond is for 100000, which
we are Informed, is good. He holds ap
proximately S130,O0O in cash belonging
to various funds. The trustees have n,
definite information as to the condition
of these funds. Mr.. Spalding being sicl
and unable TO open his vaults at pres
ent. He is to meet the board next Tues
day and make a full statement of tn
entire matter"