The age-herald., 1898-02-03
QU|NLAN DOES NOT DENY II
Tells the Directors He Made Se-
 cret Loans AND RESIGNS AS CASHIER Employed by the Chemical National Bank New York and Loaned Nearly S400,-
 900 on Western Securities.

New York, Feb. 2.-William J. Quinlan, ir.. cashier of the Chemical National bank. has resigned fis position. He acknowl- edged in letter to the directors that he had loaned $393,000 of the banks money without consulting the president and knew the directors would not approve of the ac- ton. 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 MT. Quinlan prove a loss the banks credit would not be affected Its shares, par value of s10O. have sold for more than $4O0 each within a short time The directors are George G. Williams, James A. Roosevelt. Frederick W. Stevens and Robert Goelet- Cashier Quinlan was also a dirctor. The latter ds 53 years of age. During the twenty years he was cashier he never took a vacation. Francis Halpdn assistant cashier Is acting cashier of the bank pending the selection of a successor to MT. Quinlan.
 The amount loaned to Grable was $9OO,- 900. John S. Silver, of this city, obtained $195,000
 MT. Qutcans letter of resignation Is as follows:
 "Withdn the last few months I have made loans without consulting the presi- dent bo the amount of about s5e3, ,OOOo on collateral which I knew that you would not approve and hence I have concealed these loans from you by methods which were not right
 "I have not been interested personally in them. and have not received dollar of the proceeds of them, nor in but one instance received any benefit from them, and then but for moderate amount; nor have I speculated to the extent of sim gle share in Wall street. My error has arisen from the over-confidence in the rep resentations of those to whom these loans were made, and while hope eventually no loss will arise from them, acknowl- edge the justice of the request for my resignation, which is hereby presented, both as a director and as cashier of the Chemical National bank. This termi- mates faithful service (until the above) of thirty-six years to the institution which has justly been the pride of my life."
 The loans made by Quinlan were on western securities of various kinds, and were negotiated by Francis Gable a pro- moter of land, mining and irrigation schemes. The first known of the affair by President Williams was when Quinlan called upon him at 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 believed that in a transac- tion involving so large an amount of money he should have consulted the presi- dent, MT. Williams.
 John s. Silver is connected with the New York Carbon company. the headquarters of which are at Newark, N. J. Silver's name has been before the public many times in recent years He was, alleged to be responsible for the failure ofithe iAmeri- can Loan and Trust company. Silver also gained certain amount of riotoriety in connection with the failure of the Wash nigton National bank on March g, l1891
 The retirement of Henry Buckhout from the vice-presidency of the Third National bank several years ago was directly due to his relations with Silver.
 MT. Quinlan has nothing with which to make good any of the borrowed money, having lost his own private fortune some years ago in protecting the name of a