The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1898-02-09
A MlxED-UP AFFAIR.
Cashier of a Leading New York Bank
Loans Money and Resigns.

/ Loans Money ana Resigns.
| New York, Feb. 3.-Banking circles
were greatly surprised Wednesday
when the announcement was made that
| William j. Quinlan, Jr., cashier of the
Chemical national bank, had presented
his resignation 10 the board of directors,
his action being due to the fact that he
had made loans amounting 10 1898. 900
on collateral which he later realized was
not commensurate with the amount of
the loan. His action in making the
loans he had concealed from the d.
rectors. with the result that there is
little probability of realizing on the
collateral more than a small percentage
of the money advanced.
The Chemical national bank is one of
the strongest fnaEcial concerns in the
country, and, while the amount in
volved is a large one, there is no proba-
bility that the action Of Quinlan will
affect the credit of the bank IN the least
| Not an officer Of the bank had the
| least suspicion that Mr.. Quinlan had
made such mistake in Judgment as 10
| give the loans on the security offered
until last Sunday evening, when he
called on President George G. Williams
at the latter's residence 81 West Fifty
eighth street, and admitted to him that
! he had loaned the money TO John S.
Silver, a promoter and Spectator, who
| has an office at 40 Cortlan6d street, and
10 Francis G. Cradle, a promoter of
western land and irrigation schemes,
/
Cashier Quinlan, who has been con-
nected with the institution. for &c years,
says he was not interested in the loans
| personally, and did not receive one
dollar from the proceeds of them. His
error, he says, arose from overconfi-
dence in the representations Of those
| 10 whom the loans were made.
st. Louis, Feb. 4.-Francis Ora BILE, to
whom William J. Quinlan, Jr., ,ashier
| of the Chemical national bank of New
| York, loaned S393,OOO of the banks
| money, in consequence of which Mr..
| Quinlan saw fit to resign his position
as cashier, while in this city Wednesday
said:
cit seems unnecessary for me to say to
| anyone familiar with Mr.. Quinlan's ster-
| ling integrity that he has never profited
| one cent from any of my business transac-
| lions with him. One year ago my obliga-
| tons TO the bank were S1S0,0O0 and six
months ago I had paid up every dollar.
| The present Indebtedness has been incurred
| since that time. I never knew nor have
ever heard of the Mr.. Silver mentioned in
| the dispatches as being a debtor Of the
| bank, nor is he now nor never has been
connected with any of my interests in any
| way. Mr.. Williams, the president of the
| Chemical national bank, has been stock
holder for several years in one OF the town.
site companies 1 organized and has ex-
pressed his complete satisfaction with his
vestment.''
New York. Feb. 4.-John s. Silver,
one Of the men whose borrowing from
the Chemical national bank led TO the
resignation of Director and Cashier
Quinlan, said Thursday that he did not
| owe as much as he had been. said to
owe, but whatever the sum was he
would pay it.
The officers Of the Chemical national
bank were in communica ton BY tele-
graph with banks in various parts of
the country 10 trace the course of the
certified checks given by Cashier Quin-
Ian TO Messrs. Silver and Cradle, and
to ascertain whether financial institu-
tons elsewhere had advanced money
on drafts such as were accepted as Sc
curly al the Chemical national.
President Williams, of the Chemical
national bank. when shown the dis
patch from St. Louis containing an in
terview with Cradle, in which the latter
said that Mr.. Williams had been a stock
holder in one Of mis- companies for sew
eral years, said: 1T is wrong for this
man TO try TO mix me up in his schemes.
II is true that | have been connected
with one of his companies, but il was
trif1ing matter. not more than $4,000
or So ,000.' He also admitted the truth
Of the statement that on Thursday last
the Chemical natiopal bank had ac-
cepted demand note of S201, 500 from
Cradle, agreeing at the same time not
to press Cradle for the money.
William Fl. kurtz, who is said to have
been associated with Cradle in many
of his deals. said:
Mr.. CRADLES dealings with the Chemical
national bank have extended over con-
siderable period. AS I understand from
him, he was well known to all the banks
officials. To my knowledge he owed the
bank $4,000 at one time and liquidated the
debt until only $4,000 was left Thus he
has gone on contracting obligations and
discharging them. At the beginning of
last week the total amount of CRADLES in
debtedness TO the bank was SOD, 500. It
seems that Mr.. Quinlan had not reported
tho latest transactions TO President Will
liams. Becoming a little anxious Mr.
Quinlan made a statement of Mr.. Cradles
account before President Williams and the
directors At last Thursdays meeting. The
directors made no complaint on this head
knowing Mr.. Cradle. but sent a message
inviting him to wait upon them. Mr.
Cradle called there, and the result of the
conference was that Mr.. Cradle gave the
directors demand note for 500, 500 The
directors then agreed not to press him, but
to afford him margin of time in which TO
pay the note"
MI. hurtz said he knew nothing about
Silver and had never indorsed any of
&c II.