The herald., 1897-12-24
Make q Great Sensation at
Philadelphia
CHESTNUT STREET NATi0LAL
DRAWS DOWN A TRUST COM
PANY WITH IT
Able Financiers Are at Work and
Hope to Pay Depositors
Dollar for Dolla-
Associated Press Special Wire

Associated Press Spa cial Wire
PHILADELPHIA, Dec. GA sensa-
ton was created in this city today by the
announcement of the suspension of the
Chestnut Street National bank, regard
ed as one of the strongest financial insti-
tutons in the city. The suspension cars
ried with it the closing of the Chestnut
Trust and Savings Fund company, doing
business under the state banking laws.
William Singerly, publisher Of the Phil
adelphia Record, is president Of both
companies, and the same men, with one
exception. act as officers and directors.
The first information the public received
that the banks were in trouble was in
the form of a notice posted this morning
on the door of the building occupied
Jointly by the two concerns, signed by
National Bank Examiner William NJ.
Hart, to the effect that the Chestnut
Street National bank had closed its
doors pending an investigation of its af-
fairs. No statement of assets and liabil-
tiles is available but it is stated that the
deposits of the Chestnut Street bank
amounted to 81, 700 900, and Of the Trust
company to $1,300,O00.
Mr.. Sngerly gave out brief state
ment tonight, in which he said: 1--WE
are working to secure the Indebtedness
of the two banks, so that they can go
into voluntary liquidation, and thus
avoid receivership."
In this connection Deputy Comptroller
of the Treasury George M. Coffin, who
was sent here from Washington by
Comptroller Eclxels, today said: 1.-THE
matter of putting the Chestnut Street
National bank into voluntary liquida-
ton has been taken up by Philadelphia
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 in
debtedness."
Mr. Coffin will remain here several
days, aiding the men who have taken
upon themselves the task of extricatinS
Mr.. Singerly from his financial difficult
ties. These gentlemen are in consulta-
ton tonight, and the belief is strong that
they will provide the funds necessary for
voluntary liquidation Of the two banks.
L
circles that Mr.. Singerly's banks were in
| trouble, and the national bank examin-
| er, it is said, was aware of the condition
| of affairs. Last night number OF the
leading bank officials Of the city held a
conference lasting until nearly o'clock
| this morning, considering the matter of
raising sufficient money to relieve MIR.
Singerly's banks from their distress. 1t
hot nrnnnSitiOn
float s., 900. 900 preferred stock of the
| Philadelphia Record had been prac-
| ticalIy agreed to when the discovery
was made that because of the involved
| condition of the Trust company's
| finances this 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 OLE
will succeed in successfully adjusting
the finances, and thus permit the banks
to pay depositors dollar for dollar. The
net earnings of the Record last year are
said to have been S249 coo, more than suf-
fcient to pay dividends on sum SUI
1cient to pay all of Mr. Slngerly 5 m
| debteQneSS 10 tHe pttiihS'
The statements of the cause of the fall
ure current here agree with that maze
bv COMPTROLLER Eckels at Washington
today, that it was primarily due 10 tnes
loss of much money by Mr.. Singerly in
his unproductive paper mill at ElRton'
Md. one of the largest in the country.
one statement placed the sum thus IN
yolved at nearly S1,0O0,000
| ,lrr J., MI :
vested in other enterprises in this and
other cities. Rumors were current to
the effect that the ownership of the
Record would pass from Singerly, but
this he denied, stating positively that he
is in absolute control of the paper and
will continue at it's head.
On Monday of this week the Chestnut
street National bank made the following
report to the Philadelphia clearing
house:
Legal reserve, $685. 900.
Loans and discounts, $2,261 ,00o.
Deposits, S1,7S9,O00.
| Due from banks, $S55,O0O.
| Due to banks, $6S6,000.
Circulation, $4,000.
The reserve has been below the legal
requirements for several weeks. The
deposits on October 5th, when the bank
reported to the comptroller of the treas
ury, amounted to $2,035,S56.
The shrinkage in this item, therefore.
has been more than SS00,OO0 in little
over two months 1t is said that there
lhave been quiet but steady runs on both
banks for several days past
OF the deposits in the bank, the city is
represented by $2S9,554, the state by
1925. 900, and the national government by
a large sum. but all of these creditors are
believed to be protected. When the trust
company made its last report to the
state authorities on November 18th the
deposits amounted to 81, ,492,253.
A meeting of the directors of the trust
company will be held at 10 o'clock tofnqr-
row to decide upon a course Of procedure.