The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-02-03
BANK, S393,OOO SHORT
THE CASHIER MADE LOANS FOR
THIS AMOUNT SECRETLY.
IMPOSED ON BY IRRIGATION SHARKS
Six Weeks Cover Time of Negotiations-.Mr.
QuinIan's Letter Confesses All--President
WiIans's Lenient and Frank Com
ment. 30 Years Service.
ment- -32 Years Service.

New York, Feb. 2.-Wm. J. Quinlan,
Jr., cashier of the Chemical National
Bank, has resigned his position. He ac-
knowledged in "a letter to the directors
that he had loaned $393,OO0 of the
hanks money without consulting the
president and knowing the directors
would NOT approve of the action.
Mr.. Qufnlan's letter of resignation is
as follows:
''New York. Feb. 1, 1898.
'To the Directors of the Chemical Ma
tiOnal Bank:
''Gemtlemen: Within the hast few
months / haye made loans, without con-
sulting the president, to the amomnt
of about three hundred and ninety three
thousand $685. ,000) dollars, which |
knew you would not approve, and hence
| have concealed these loans from yOn
by methods which were not right
Il have not been interested personally
in them and have not received one dol
lar of the proceeds of them, nor in but
sme instance received any benefit from
them. and then but for a moderate
amount; nor have j ever speculated to
the extent of single share in Wall
street. My error has arisen from
over-confdence in the representations Of
those to whom these loans were made,
and while | laope eventually no loss
viii arise from them. / acknowledge the
justice of the request for my resignation,
which is hereby presented, both as 4
director and as cashier Of the Ghemical
National Bank Tins terminates n
faithful service (untA the ab0ve) of thir-
ty-six years TO the institution. which has
justly been the pride of my life.
Respectfully,
''WM. ]. QUINLAN, JR."
The loans made by Mr.. Quinlan were
ON Western securities of various. kinds,
al.d We're negotiated by Francis Cradle.
a promoter of land, mining and irrigation
schemes. The first known of the affah
by President Williams was when Quin
han called upon nam at his home ON
Sunday last and made a full statement
of THE TRANSACTION lit is conceded that
Quinlan, as caShier, had the power to
make tlhe boan, but it is held that on
u transaction involving so large an
amount of money he should have con
suited the president.
The chemical National Bank is one of
the mcst prosperous institutions of 1T,
kind in the country, and should all the
amount loaned by Mr.. Quinlan prove n
loss, the banks credit would not be
affected. It's shares of the par yalHe of
800 have sold for more than $4,000
each within a short time. The directors
are George G. Williams, James A. RoOse.
yelt, Frederick w. Stevens and Robert
Goelet. Cashier Quilan also was a di-
rector The latter is 53 YEARS of age.
During the twcnyt years he was cashier
he never took a vacation.
Francis Halpin, assistant cashier, is
acting cashier of the bank pending the
selection Of successor to Mr.. Quinlan.
''In my opinion" said President Will
liams, "Mr. Quinlan has been made the
victim of clever sohcmers. / believe
that he has been mentally irresponsible
for months, tllOugh There was nothing
apparent i'm his actions to betay this
to ls.
MIR. Quinlan had known Mr.. Cradle
for some time. and six weeks ago, when
the latter asked for loan of So, 900 to
help along some scheme of his, Mr..
Quinlan gave it to him. Then came am
either loan of $1,000 which was also
granted Next Silver was brought into
the deal"
What lis SiIver's bllsiness?" President
Williams was asked.
"CIhiefly to get money out of banks, .
was the terse reply.
Then Mr.. Williams continued:
"Quinlan ought to have known him
but somehow he did not. At any rate
he was induced to make the first loan
believing tine security to be all right
The amount was small, but when 4
start had been made the men wanted
more money.
''Ilhey must have it, they said or else
everything would be lost. Then to save
the first $1,000, Mr.. Quinlan made them
another loan of equal amount and to
save the $4,000 gave them another $10,-
900.
In this way, in a little more than
SIX weeks, the amount of loans was run
up to almost half a million dollars. II
was not until it reached this figure that
We knew anything about it. Then fOI
the first time Quinlan seemed to realize
that something might be wrong with
his accounts"
ND xVODVII CPTTI(tAIIV IIT