The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-02-02
CHESTNUT STREET BANK.
Accountant from Washington Takes Hold
Charges Made In baltimore.

Suhrges Hhhue IN Ahitinore.
PHILADELPHIA, Feb. 1.-Jacob NJ. March, an
expert from the Office Of tho Comptroller Of the
Currency, was sent here to-day to assist Re.
ccivcr Earle in untangling the affairs of the
Chestnut Street National Bank. Bank Exam.
liner Hardt is still in charge Of tho institution. No
progress has been mado with the proposed plan
Of liquidation. which was intended to save the
expenses of q receivership. and which, iI has been
intimated. may yet be adopted. Some action Is
expected to be taken on II tomorrow. The plan
might havo been put into effect before the APP
pointment OF a receiver by Comptroller Dawes.
had it not been for the hesitation Of State Treas
urer Haywood. Outside of the States claim
assents were had to the plan from all the cred
itors except q few, representing about $10O. 900
in amount.
Tho State Treasurer, 1t is understood, was
willing to assign the States claim, but his
bondsmanw would not agree to 1t, and nothing
has been done about it thus far. While the
bank officials were urging the State Treasurer
to como in under the plan. the 800. 600 of non
essents would have been cared for. and It was
said that a cash dividend of 80 per cent. would
have been paid to tho depositors in sixty days.
and the balance In four or SIX months.
BALTIMORE, Feb. THE Sun of today prints
a despatch from. Washington regarding the
Chestnut street National Bank which says:
There is no longer any attempt to deny that
the, institution was run in direct and culpable
violation OF the national banking law, when
this was first charged Mr.. Eckels. then Comp
troller of the Currency, to II representative
of the sun positively pronounced tho as
sertion to be without foundation, and the
statement to that effect was made on his
authority: What Mr.. Eckols could have been
The law says no national bank shall loan to any
person more than 10 per cent. OF Its capital. and
yet this bank loaned to it's President more than
its entire capital. 1t is II bad case, and it is said
II has stirred up an intense bitterness of feeling
among the aepositoTs and In financial circles in
Philadelphia generally.
For two years before 1t suspended the bank
was known by the Comptroller of the Currency
to be in an unsOund condition and that gross ir-
Irregularities attended lite conduct. The llGts
mcmbers OF the Philadelphia Clearing House
Association, which practically carried the bank
for months before it closed its doors. 1t is now
learned that in the meetings of the Clearing
House there was a good deal OF grumbling over
this fact. As one of the bank Presidents said hero
a day or two ago: We were afraid to let It 20
down because we thought 1t might cause u
panic
According to common report there are some
ugly features which have yet to come out aud
II possible. than IL seems now. 1t is very much
doubted now that the Record newspaper re-
ceipts will be sufficient to realize anything like
the amount of the banks liabilities. But the
hope in falling. back upon tho personal liza
bility clause OF the National Banking act.
But there will not be 30 much sympathy
for the directors. These men sat by supinely.
while the President systematically and deliber-
ntcly Quilted tho concern whose interests they
were supposed TO protect. The directors are
liable. each and severally. for losses incurred by
Disregard OF the law. and tho amount will foot
up heavily for each Of them. Some of the direc-
tors are rich men. and able to pay for their mis-