The Providence news. (Providence [R.I.]) 1891-1906, 1898-02-03

HE LOANED
RECKLESSLY.
Bank Cashier Forced to
Resign Office.
TOOK POOR COLLATERAL
Acted Without knowledge or Con-
sent Of Directors.
THE LOANS WERE CONCEALED

new York, Feb. 3.-W. J. Qulnlan. Jr,
has resigned his position. In letter to
the directors he says: within the
last month j have made loans, without
consulting the president, TO the aEnount
OF about $393,000 on collaterals which
know that you would not approve, and
have concealed these loans from you
by methods which were not right. L
have not been interested personally in
them, and have not received a dollar of
the proceeds of them. nor but 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 representations OF those TO whom
these loans were made. and while l
hope eventually no loss will arise from
them, / acknowledge 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 terminates faithful SER
vice (until the aboye) Of 80 1ears to the
institution which has recently been the
pride of my life"
The loans made by Mr.. Quinlan were
on western securities of various kinds
and were negotiated by Francis Cradle,
promoter of land. mining and irrigation
schemes. The first known of the affair
by President Williams was when Quin-
Ian called upon him at his home on Sun
day last and made full statement Of the
transactions. 1t is conceded that Quin-
L.
the loans, but IL is held that in a trans
action involving so large an amount of
money he should have consulted the
president.
Mr. Williams said yesterday: "We
think that absolutely the worst is known.
/. and we are strongly i'm the hopes that
Mr.. Quinlans 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. The Chemical National bank
Is one Of the most prosperous institutions
of its kind in the country, and should
oil the amount loaned by Mr.. Quinlan
prove a loss, the banks credit would not
be affected. It's shares Of the par value
OF 500. have sold for more than $4,000
each within short time
The amount loaned TO Cradle was 5000.
600. John S. Silver of this city. repre-
senting carbon company, obtained
100000. 1t is not known at present
what course the directors intend to adopt
In regard TO getting their money back
In the city directory CRADLES business
address is given as "27 Williams street;
house, Nebraska" At that address it
was ascertained that Mr.. Cradle was
once president of the Edmonston Stone
company, and that six months ago the
company moved to Philadelphia. Later
Cradle had deck room in the office of w.
"A. kurtz. also promoter, at 100 Broad
way. At that office it was stated that
Cradle was president of Land and
Canal company and that he is still
president of the Union Hill Milling COM
pany. in which Ex-Governor Pattison
and Benjamin Tracy are said to be in
terested. II was also stated i'm that
office that Cradle had been out of town
for weeks. Notwithstanding this state
ment, however. Cradle was seen about
the building during the afternoon. and
was said to have left hurriedly about
half an hour before the reporters arrived
there.
1T is said that the loans were made on
drafts given 10 the bank and that the
transactions had been going on for about
six months. The amounts increased
gradually until last month, when II was
doubled. Recently. ii is stated. Cradle
and Silver made a demand for further
loans which met with a refusal from
Cashier Quinlan