The Topeka state journal., 1898-02-03
President Williams of the Chem
ical National Bank,
Doesn't Believe the Institution
Will Get Back a Dollar
OF QUINLAN'S LOANS
Made to Spectators Without
Proper Authority.
Thinks the Cashier Was and Is
Out of His Mind.

New York. Feb 3-Mr. Qufnlan's res
ignatfon as cashier of the Chemical Ma
tional bank announced yesterday, is as
follows:
New York. Jan. 81, 1898.
To the Directors of the Chemical Ma
tiOnal Bank.
Gentlemen:-Within the last few
months 1 have made loans without con-
sulting the president to the amount OF
about three hundred and ninety-three
thousand (S393. 000) dollars, on cOllater-
ais which I knew that you would not
approve and hence have concealed
these loans from you by methods which
were not right. I have not been inter
ested personally in them and have not
received one dollar of the proceeds OF
them, nor in but one instance received
any benefit from them and then but for
a moderate amount; nor have L ever
speculated to the extent of a single
share in Wall street. My error has
arisen from over confidence in the rep
resentatiOns of those to whom these
loans were made and While L hope
eventually no loss will arise from them,
I acknowledge the justice of the re
quest for my resignation which is here
by presented, both as a director and as
cashier of the Chemical National bank.
This terminates a faithful service (unt1I
the abOVe) of Sc years to the institu-
ton, which has justly been the pride of
my life. Respectfully,
VIM J. QUIELAN JR.
TIE l7apS made by Mr.. Qu1nlan were
on western securities Of various kinds
and were negotiated by Francis Cradle,
a promoter of land. mining and irriga-
tiOn schemes.
The first known of the affair by Pres
ideut Williams was when Guinl1n call
ed upon him at his home on sunday
last and made a full statement. 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 Mr.. Will
liamS said today. we think that ah-
sOlutely the worst is known and are
strongly in the hopes that Mr.. Quinlan's
expectations are true and that 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
Tams, Mr.. Quinlan has been made the
victim of clever schemers. I believe
that he has been mentally irresponsible
for months, though there was nothing
apparent in his actions to betray this to
US.
Mr.. Quinlan had known Mr.. Cradle
for some time and six weeks ago, when
the latter asked for a loan of $4,000 to
help along some scheme of his, Mr..
Quinlan gave it to him. Then came an
other loan of $1,000, which was also
granted Next Silver was brought into
the deal, then, to save the loan, first
made, Mr. Quinlan made them another
loan of an equal amount, and to save
that, he gave them another.
In this way, in a little more than six
weeks the amount of the loans was run
up to almost a half million dollars. It
was not until it reached this figure that
we knew anything about it. Then for
the urSL time Mr.. CQuInIan seemed to
realize that something might be wrong
with his accounts. So last Sunday he
called on me at my home.
4 was simply dumbfOunded I had
never before had the slightest suspicion
but what Mr.. Quinlan was all right
mentally Then I realized that some
thing must be wrong or he would never
have loaned money TO Ora h1n nd
Yer or have advanced even the most
trivial sums or the security they had
given him. I examined it and decided
II was almost worthless and made up
my mind that the bank would lose eve
ry cent it had advanced.
Mr- Quinlan combatted this idea; he
still insisted that the securities were
good and would fully recover the
amount he had loaned. I was not able
to persuade him otherwise and at last
told him he must resign and do this at
once in letter to the directors He
was fearfully broken up by my decision
but did as I told him The letter yvas
written Monday and briefly states the
case.
Then when it had been given to the
directors Mr. Quinlan left the bank for
MS home in Brooklyn I suppose he is
there now.
I want to say this for Mr.. Ouin1an
Not the slightest suspicion of dishOnes-
ty rests upon him. I do not believe that
2le profited by these loans to the extent
. &
money which he gave out went to these
two men, and he would never have Civ
en- them anything, to say nothing of the
large amounts they obtained until thew
had made him believe their securities
We're good
Il am firmly of the opinion that Mr.
Quinlan is out of his head, and that his
trouble is due to OVerWork He has beaD
with US sc years, and has made his wav
up from Office boy. During all that time
ne has been lndefatgable in his la
Dor
"Of the men who got the money from
Quinlan, Silver is the only one known to
me-
President Williams estimated that
silver received $150000 and Cradle S243.-
OOO
The directors held a meeting last
nlSht and number of clerks were put
at work on the books. 1t is not known
at present what course the directors in
money back
Cradle was once president of the Ed
1nOnIOn stone company, and six month
ago the company moved to PHILADELPHIA
1t is stated that Cradle was president
OF the interstate Land and Canal Co
and that he is still president of the
Union Hill Mining company in which
ex-GOv. PattisOn and Benjamin Tracy
are said to be interested.
John S. Silver is connected with the
New York Carbon company. the head
quarters of which are at Newark N
J. ~
Mr.. Quinlan lost nearly all his own
private fortune some years ago in Dro
tecting the name of a relative who had
been speculating on the stock EXCHANGE
during the panic, so that he has nothing
with which to make good any losses
arising from his bad judgment in the
present case.
The Chemical National bank is one OF