The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-02-03
CASHIER OUT UNDER A CLOUD.
MADE LOANS OF $685. WHICH HE
KNEW WOULDN'T BE APPROVED.


Doubtful Value by Couple OF
PrOmoters-MRde a Small Start
and Soon Had the Cashier over His
Headline Suspicion of Dishonesty
Attached to Him.
New York, Feb. 2.-William 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 $S93,O0O of the banks
money without consulting the president
and knew the directors would not approve
of the action. He denies that he profited
by the loan.
The Chemical National Bank is one of
the most prosperous institutions of its kind
in the country. and should all the amount
loaned by Mr.. Quinlan prove loss the
banks credit would not be affected. Its
shares of the par value of 100 have sold
for more than $1,000 each within a short
time.
The directors are George G. Williams,
James A. Roosevelt Frederick w. Stew
ems and Robert Goelet. Cashier Quinlan
also was a director. The latter is SO years
of age.
During the twenty years he was cashier
he never took a vacation.
Francis Halpln, assistant cashier, is act
ing cashier of the bank pending the Sc
lection of successor to Mr.. Quinlan.
The amount loaned to Francis Cradle,
a promoter, was 100000. John S. Silver,
of this city, representing a carbon COM
pany, obtained $195,000.
Mr.. Quinlan's letter of resignation is as
follows:
New York. Jan. 81, 1S9S-To the Direc-
| tors of the Chemical National Bank; Cen
| tlernen: Within the last few months have
made loans without consulting the prest-
dent, to the amount Of about $S93,000 on coll
| lateral which ] knew that you would not
approve, and hence l have concealed these
! loans from you by methods which were
not right. 1 have not been interested per-
| sonally in them and have not received a
| dollar of the proceeds of them, nor in but
| one instance received a benefit from them,
! and then but for a moderate amount; nor
have 1 speculated to the extent of single
| share in Wall street. My error has arisen
| from over confidence in the representa-
| tions of those to whom these loans were
made, and while hope eventually no loss
| will arise from them l acknowledge the
/ Justice of the request for my resignation
which is hereby presented, both as di-
rector and as cashier of the Chemical Ma
tional Bank. This terminates a faithful
| service (until the above) of thirty-siX years
to the institution which has justly been
the pride of my life. Respectfully,
William j. Qunlan, Jr."
1 The loans made by Mr.. Quinlan were
| on Western securities of various kinds,
| and were negotiated by Cradle, promoter
of land, mining and irrigating schemes,
| The first known of the affair by President
| Williams was when Mr.. Qutnlan called
upon him at his home on Sunday last and
made full statement of the transaction.
| 1t is conceded that Mr.. Quinlan, as cash
! ier, had the power to make the loan, but
| it is believed that in a transaction in
volving so large an amount of money he
should have consulted the president, Mr..
| Williams.
The latter said to-day: I'VE think alb
solutely the worst is known and we are
| strongly in the hope that Mr.. Quinlan's S
| expectations are true, and that a large
! part of the money will be recovered. We
would rather face the matter and let the
| public know the whole truth"
In my opinion" said President Will
| lams Mr.. Quinlan has been made the
victim of clever schemers. l believe that
| he has been mentally irresponsible for
| months, though there was nothing appar-
| ent in his actions to betray this to us. Mr..
| Quinlan had known Mr.. Cradle for some
time and six weeks ago when the latter
|
! some scheme of his, Mr.. Qunlan gave it
| TO him. Then came another loan of $1,000
| which was also granted. Next Silver was
| brought into the deal"
What is Silvers business President
| Williams was asked.
Chiefly TO get money out of banks"
was the terse reply.
Then Mr.. Williams continued: "Mr
| Quinlan was induced TO make the first
| loan, believing the security to be all
| right. The amount was small, but when
| a start had been made the men wanted
more money.
Then to save the first 5000 Mr. Quin-
| Ian made them another loan of equal
| amount and to save the $4,000 gave them
| another $4,000. In this way in a little
more than six weeks the amount of the
! loans was run to almost half million
| dollars. 1t was not until 1t reached this
| figure that we knew anything about it,
Then, for the first time, Mr.. Quinlan
seemed to realize that something might be
wrong with his accounts. So last Sunday
he called at my home. realized that
something must be wrong, or he would
| never have loaned money TO Cradle or Sill
yer, or advanced even the most trivial
sums on the securities they have given
him, and it was then suspected his mem
tai condition. / examined the security
| and decided that4it was almost worthless
and made up my mind that the bank would
| lose every cent it had advanced.
Mr.. Quinlan combatted this idea He
| still insisted that the security was good
and would fully cover the amount he had
| loaned / was not able to persuade him
| otherwise, and at last told him he must
resign and do 1t at once by letter to the
| directors The letter was written Monday
| And briefly states the case.
'I want TO say this for Mr. Quinlan. Not
the slightest suspicion of dishonesty rests
upon him. do not believe that he profted
| by these loans to tlre~extent of one cent.
! Every dollar OF this banks money which
he gave out went to these two men, and he
would never have given anything, TO say
| nothing OF the large amounts they had OBJ
| tained unless they had made him believe
| their securities were good.
81 am firmly of the opinion that Mr.
| Quinlan is out Of his head and his trouble
| is due to overwork."
| President Williams estimated that Silver
| received $50 600, and Cradle, $243, 900.
The directors held meeting tonight 1t
Is not known at present what course the
directors intend to adopt in regard to get
| ting their money back.
Cradle was once president Of the Ed
| monton Stock Company. 1t Is stated that
| Cradle was president Of the Interstate
| Land and Canal Company and that ne is
still president of the Union Hin Milling