The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1898-02-03
Loaned L0Tge Sums OF Money Win
0u| Consulting Ihe President.
HIS RESIGNATION AN EASY WAY OUT
Though the chemical Hank should
Lose the WhoIc Amount 1t would
Not BE CrippIed-Qui Wns
Cashier Twenty Years and Never
Took IL Vacation.
New York, Feb. .. 1898.

New York, Feb. ., 1898.
William j. Quinlan, Jr cashier Of the
Chemical National Bank, has resigned
his position. lie acknowledged in a let
ter 10 the directors of the bank that he
had loaned $393,OOO Of the banks money
without consulting the president and
knowing the directors would not ap-
prove OF the action.
Mr. Quinlan's letter Of resignation is
as follows:
d. New York, Jan. 81. 1895
To the Directors OF the Chemical Ma
tionil Bank:
Gentlemen: Within the last few
months I have made loans. without con-
suiting the president TO the amount Of
about three hundred and ninety three
thousand tS393, ,000) dollars. on collateral >
which knew you would not approve.
and hence / have concealed these loans
from you by methods which are not
light.
have not been Interested personally
IN them, and have not received one dol
lar of the proceeds of them nor in but
one instance received any benefit from
them. and then but for n moderate
amount; nor have / ever spcculnted TO
street My error has arisen from over
confidence in the representations of
those TO whom these loans were made,
and while hope eventually no loss will
| arise from them, l acknowledge the tus-
tice OF the request for my resign ton
which Is hereey2presented, both as u di-
rector and as cashier OF the Chemical
National Bank. This terminates a
faithful service (until the above) of
thirty-s years to the institution, which
has justly been the pride of my life.
Respectfully,
WILLIAM j. QUINLAN, JR.
The loans made by Mr.. Quinlan were
on Western securities OF various kinds.
and were negotiated by F.ancis Cradle,
promoter OF land, mining and irriga.
ton schemes. The first known of the
affair by President Williams was when
Quinlan called on him at his home on
Sunday last and made n full statement
OF the affair. 1t is conceded that Quin-
Ian, as cashier. had the power 10 make
the loan, but ii is held that in trans
action involving 50 large an amount of
money he should have consulted the
president.
The Chemical National Bank is one
of the most prosperous institutions OF
i,S kind in the country. and should all
the amount loaned by Mr.. QunIan
prove loss. the banks credit would
not be affected. Its shares of the par
value OF Sl00 have sold for more than
$1,000 each within a short time The di-
Tec;orS are George G.. Williams. James
y. Roosevelt, Frederick w. Stevens and
Robert GOelet Cashier Ouinlan also
was a director.
Francis Halpin, ASSISTANT cashier, is
acting cashier of the bank pending the
selection of 4 successor TO Mr. Quinlan.
Mr. Quinan lest nearly all his own
private fortune some years ago in pro-
;ecting the name of a relative who had
been specializing on the stock exchange
during the panic. so thai he has nothing
with which 10 make good any losses
arising from his bad Judgment in the
present case.
NJ W. Williams, president OF the
bank, said to-day: I'VE think that alb
aoluteiy the wors. is known, and VIC
are strongly in hopes that Mr.. Quinlan's
expectations arc true. and that a large
part OF the money will be recovered
We would rather face the matter and
let the public know the whole truth.
I'VE have charged off nearly the
whole of the loans To our profit and loss
account. although we are satisfied th.t
we shall recover a large part of the
money eventually"
I'm my opinion said President Will
liams. MIR Quinlan has been made the
victim OF clever schemes ] believe
that he has been mentally irrcSponsi-
bile for months, though there wus noih-
ing 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 or $1,000 to
help along some scheme Of his, Quin-
Ian gave 1t to him. Then came another
loan of $4,000 which was also granted
Next Silver was brought into the deal"
What is Siivcr's business?" Presi-
dent Williams was asked
Chiefly to get money out of banks"
was the terse reply.
Then Mr. Williams continued:
"Quinian ought TO have known of
him. but somehow he did not. Al any
rate he was induced 10 make the first
loan, believing the security to be all
right. The amount was small. but
when a start had been made the men
wanted more money.
They must have ii. they said. or else
everything would be lost. Then. TO
save the first $1,000, Mr.. Quinlan made
them another loan of an equal amount.
and to save the $4,000 gave them an
other $4,000.
IN this way, in Il little moro than
six weeks. the amount of loans was
run up TO almost half million dollars.
II was not until II reached this figure
that we knew anything about 1t. Then
FOR the frs; time Mr.. Quinlan seemed
to realize that something might be