The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1898-02-04
CASHIER QUINLAN
Or the Chemical National Bank Of New
York Resigns-He had Loaned 1898, 900
Without knowledge of the President

or the Chemical National Bank of N.v
York Resigns-He had Loaned $685., DOT
Without Knowiedgs of the President
New York, February 2-Wauarn ].
Quinian, Jr., Cashier Of the Chemical
| tion. He acknowledged in a letter to
the directors that he had loaned $685.
900 OF the banks money without con-
suIting the president, and. knowing the
directors would not approve OF the ac-
ton. Mr.. Quinlan's letter of resigna-
ton is as follows:
New York, January -, 183S
ITO the directors OF the Chemical Nat
ional Bank:
"Gentlemen:-W atllin the last few
months 1 have made loans, without
consulting the president, to the amount
of about $393,0O0 on collaterals (which
know that you would not approve, and
Whence / have concealed these loans
from you by methods which We're not
right.
"Ihave not been Interested personally
in them and have not received one dol
lar of the proceeds of them, nor in but
one instance received any benefit from
them, and then but for a moderate
amount; nor have 1 ever speculated to
the extent of single share in Wall
street. My errors has arisen from
over confidence in the repres en- tationS
of those to whom these loans were
made, and while / hope eventually no
loss Will arise from them, 1 acknowl-
edge the Justice of the request for my
resignation which is hereby presented
both as director and as cashier of the
Chemical National bank. This termi-
mates a faithful service (until the
above,) of thirty six years to the in
stitution, which has justly been the
pride of my life.
Respectfully,
WILLIAM ]. QUINUAN, Jr.''
The loans made by Mr.. Quinlan were
on western securities of various kinds
and were negotiated by Francis
Cradle, d promoter of land, mining and
irregation schemes. The first known
of the affair by President Williams was
when Quinlan called upon him ait his
home on Sunday last and made full
statement of the transaction. It is
conceded that Quinlan, as cashier, had
the power to make the loan, but it is
held that in a transaction Involving so
large an amount Of money he should
have consulted the president.
The Chemical National bank is one
of the most prosperous institutions of
it's kind i'll 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 cf $10O, have sold for more than
81, 600 each within "a short time. The
directors are George C. Williams,
James A Roosevelt, Frederick w. Stew
ems and Robert Goelet. Cashier Quin-
Ian also was a director. The latter is
SO years of age. During the twenty
years he was cashier, he never took a
vacation. Francis nalpin, assistant
cashier is acting cashier of the bank
pending the selections of "a successor ito
Mr.. Quinlan.
MIR. Quinlan lost nearly all his own
private fortune seven years ago in pro-
tecting the name of a relative who had
been speculating in the stock exchange
during the panic, SO that he has moth
ing with which to make good any losses
arising from his bad Judgment in the
present case.
Mr.. Williams, president of the bank,
said today: I'VE think that absolutely
the worst lis known and we are strong
ly in the hopes that Mr.. Quinlan'S ex-
pectations 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.
of the loans to our profit and loss ac-
count, although we are satisfied THAT
we shall recover a large part Of the
money Eventually. In my opinion Mr.
Quinlah has been made the victim of
clever schemes. i believe that he has
been mentally irresponsible for months
though there was nothing apparent in
his action to betray this to us.
MIR. Quinlan had known Mr.. Cradle
for sometime, and six weeks ago, when
the latter asked for a loan OF S., 900 to
help along some scheme of his, Mr..
Quinlan gave it to him. Then came
another loan of $1,000 which was also
granted. Next Silver was brought in
20 .he Zeal"
.sW7haJt lis silvers business" Presi-
dent Williams was asked
'Chiefly to get money out of banks"
was the terse reply. Then Mr.. VIII
liams continued. "Quinlan ought to
have known of him, but some how he
did not. AT any rate he was induced
to make the first loan, believing the Sc
curity to be all right. The amount
was small, but when a start had been
made the men wanted more money.
They must have it, they said, or else
everything wourd be lost. Then, to
save first $4,000, Mr.. Quinlan made
thcm another loan of an equal amount
and to save $4,000 gave them another
$4,000 in this way, in a lit
tie more than six weeks, the
amount of loans were run up to al
most half q million dollars. 1t was not
until it reached this figure that we
knew anything about it. Then for the
first time Mr.. Quinran seemed to real
ize that something might be wrong
with his accounts"