Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-02-03
A BANK SENSATION.
CASHIER or NEW YORK CHEMICAL
NATIONAL RESIGNS.
DOUBTFUL LOANS REACHING $sss,00o
These Made withoat Consulting
president and with Understanding
That Directors wouId Not Approve.
Institutson's Credit Unaffected.

NEW YORK. February 2.-william ).
Quinlan, Jr., cashier OF the Chemical Ma
tional Bank. has resigned his position.
He explained In letter to the directors
that he had loaned $500 Of the banks
money without consulting the president,
and understood that the directors would
not approve Of the action. Quinlan's letter
Of resignation is as follows:
New York, January 81, 1855.
"To the Directors OF the Chemical Ma
tional Bank:
"GentIemen, within the last Few
months / have made loans WITHOUT con-
sulting the president to the amount or
about $780,, 600. or codIarerals which knew
that you would not approve. and hence
have concealed these loans from you by
methods which were not right.
al have not been interested personally
in them. and have not received one dollar
OF the profit from them, and but in ono
instance have received any benefit from
them. and then but for a moderate
amount: nor have ! ever speculafed TO
the extent of a single share m wait
street.
"My error has arisen from overconf-
dence in the representations of those TO
whom these loans were made. and while
hope that eventually no loss will arise
from them, acknowledge the justice or
the request for my resignation, which ~
hereby presented. both as a director ana
| as cashier of the Chemical National Bank.
This terminates faithful service
mntil the above) OF thirty-six yrars I"
the institution, which has justly been the
pride of my life.
Respectfully.
WILLIAM J. QUINLAN, JR."
THE QUINLAN LOANS.
The loans made by Mr.. Quinlan were on
western securities OF various kinds, ana
were negotiated by Francis Cradle, =
| promoter of land, mining, and irrigauoe
| schemes.
| The first known of the affair by Presi~
| dent Williams was when Quinian caiied
upon him at his home on Sunday last.
| and made a full statement of the trans
action.
II is conceded that Quinlan. as cashier.
| had the power to make the loan, but II Is
| held that In a transaction involving so
large an amount OF money he snould
have consulted the president.
The Chemical National Bank Is one or
| the most prosperous institutions or its
| kind in the country, and should all the
| amount loaned by Mr.. Qunlan prove n
| loss. the banks credit would not be ar
| fected. It's shares, OF the par value or
| 800. have sold for more than ipp0 each
within a short time. The directors are
| George G.. Williams, James A. Roosevelt.
Frederick w. Stevens. and Robert Goeiet.
! Cashier Qulnlan was also director
! He is SO years old. During the twenty
wears he was cashier he never took a
vacation. Francis Halpin. assistant CASH
Ter. is acting cashier Of the bank, pend.
| ing the selection Of successor 10 MI
| Quinlan.
| Mr.. QuInlan lost nearly all his own pri7
( vate fortune some years ago In projects
ing the name Of a relative who had reeh
! speculating on the Stock Exchange du-
ring the panic, 80 that he has nothing
with which to make good any losses
arising from his bad judgment In the
! present case.
THE WORST is KNOWN.
Mr.. Williams. the president Of the bank,
| said to-day: 1--WE think that absolutely
| the worst is known, and we are strongly
| I'm homes that Mr.. Quinlan's expectations
are true. and that large part OF the
money VIII be recovered. We would
| rather face the matter and let the puDhc
| know the whole truth.
"We have charged of nearly the Whole
OF the loans to our profit and loss ac-
count, although we are satisfied that we
shall recover large part OF the money
| eventually"
'In my opinion" said President Will
lIams. "Mr. Quinlan has been made she
| victim of clever schemers l believe that
| frra
months. though there was nothing appa-
| rent i'm his actions 10 beCray this 10 as.
'Mr Quinlan had known Mr.. Cradle Tor
| some time. and six weeks ago, when tnc
| latter asked for a loan OF 5000 TO help
along some scheme Of his. Mr.. Quinlan
gave IL 10 him. Then came another loan
~ 81 coo. which was also granted Next
silver was brought into the deaL'
.What is silvers businessT' President
| williams was asked
"Chiehy 70 get money out OF banks
was the terse reply.
Then Mr. williams continued: 'Quinian
ought 10 have known OF him, but some
how no didn't. At any rate. he was in-
duced TO make the first loan. DeheVihs
the security 20 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 every
thing would be lost, and Mr.. Quinlan
made then another loan OF equal amount
and 10 save the $4,000 gave them anotner
$4,000 In this way. In little more than
six weeks, the amount OF loans was run
up to almost half a million dollars. IL
was not until II reached this figure that
we knew anything about Il. Tnen' Tor
the first time Mr.. QuInian seemed TO rea-
lize that something might be wrong with
his accounts"