The Roanoke times. (Roanoke, Va.) 1897-1977, 1898-02-02
THE LAW VIOLATED.
Startling Developments in Regard
to Mr.. SingerIy's Bank.

Washington. Feb. 1.-Considerable
comment continues to be made on the
affairs of the defunct Chestnut Street
Bank, OF Philadelphia, and it is possible
there may be some Congressional investi-
CATION Of its management. There is no
longer any attempt to deny that the in
stltution WAS run in direct and culpable
violation of the national banking law.
when this was first charged Mr.. Eckels,
comptroller of the currency, positively pro-
nounced the assertion to be without fouu-
dation, and the statement to that effect
was made on his auth GRITTY.
what Mr.. Eckels could have been then
thinking about it is difficult to imagine.
Inc law says no national bank shall
loan to any person more than 10 per cent
or It's capital, and yet this bank loared to
us president more than its entire capital
Ii Ia n bad case, and it is said it has
surred up an intense bitterness OF feeling
among the depositors and in financial cir.
Giles in Philadelphia generally.
For two years before it suspended the
Dank was known by the comptroller of
The currency to be in IN nnsouud condi-
llon ana that gross irregularities attended
us conduct. The facts were also more or
less known 20 all the other members of
the Philadelphia Clearing House Associa-
ton, which practically carried the bank
Tor months before it closed its doors. 1t
Is now learned that In the meetings of
the clearing house there was IA good deal
OF grumblinR over this fact, as one of the
hank presidents said here day or two
ago: 1--WE were afraid to let it go down
because we thought it might cause a
panic This was the idea, too OF Mr..
Eckels ~ laudable motive in the ab.
stract, perhaps, but what becomes Of the
violated law and the rights and interests
of depositors.
One OF the Philadelphia" congressman
has good right to feel sore over the mat
ter. He has no money to give away. but.
thinking the bank was stable, on the af-
ternoon before it stopped he handed in
his entire months pay He is not very
conservative in his criticisms of those
whose duty it was under the law to pre-
vent the acts which led to the bank 8
downfall.
According TO common report there are
some ugly features which have vet to
come out and which will Lake the whole
affair much worse, il possible, than it
seems now. There is striking unauimity
In the opinion that from this time forth
those who violate the law equally With
those who connive at its violation should
be held to the strictest responsibility. In
no other way can the rights of depusitors
be protected. 1t is very much doubted
now that the Record newspaper receipts
Will be sufficient TO realize anything like
the amount OF the banks liabilities But
the wronged dep,sitors will have Il sub
stnntial hope in falling back upon the
personal liability clause of tho national
bank ing act. This will work hardship.
perhaps, upon many of the unfortunate
stockholders, who had no voice in the
management of the bank aud who, nat
urally, to great extent. were entirely
Ignorant OF what was going on.
But there will not be so much sympa.
thy for the directors These men sat by
supinely. while the president systemati.
cally and deliberately gntted the concern,
whose interests they were supposed to
protect. The directors are liable, each
ano severally, for losses incurred by dis.
regard of the law, and the amount will
foot up heavily for each of them. Some
of the directors are rich men and able to
pay for their misconduct.
The case of the Chestnut Street Bank
the insuiliciency of the carefully devised
safeguards intended for the protection of
depositors, and certainly one more pain
full lesson for that disgracefully large
proportion of bank directors who persist
in regarding their duties and RESPONSE
hilities IA merely nominal. When they
are made TO pay handsomely for their
neglect, as should he the experience of
the Chestnut Street Bank directors, they
will probably take the lesson more to
heart.