The record-union., 1898-02-03
new YORK FINANCIAL SENSATION
A BANK CASHIER RESIGNS HIS
POSITION.
That He Loaned a
Large Sum Without Consult
ing the President.

| NEW YORK, Feb. .. = William ].
| Quinlan, Jr., cashier of the Chemical
National Bank, has resigned his posi-
ton He acknowledged in a letter to
the directors that he had loaned $685.
600 Of the banks money without con-
Sulting the President, and knowing the
directors would not approve of the
action. He denies that he profited
by the loans.
The Chemical National Bank is one
of the most prosperous Institutions of
its kind in the country. and should
the amount loaned by Mr. Quinlan
prove a loss the banks credit would
not be affected. It's shares of a par
value of 500 have sold for more than
81, 900 each within a short time The
directors are George c. Williams,
| James A. Roosevelt. Frederick w. Ste
vens and Dolst Golet.
Cashier Quinlan was also a director.
The latter is % years of age During
the twenty years he was cashier he
never took a vacation.
Francis Halpin, assistant cashier, is
acting cashier of the bank pending the
selection of a successor to Mr.. Quinlan.
| The amount loaned was not greater
than 5000, 600 James S. Silver of this
city, representing a carbon company,
obtained $4,000.
The first known of the affair by Pres
ident Williams was when Quinlan
called upon him at his home on Sunday
last and made a full statement. 1t 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.
Williams said to-day:
we think that absolutely the worst
is known and are strongly in hopes that
Mr.. Quinlan's explanations are 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"
| Mr.. Williams added: I'VE have
charged off nearly the whole of the
loans to our profit and loss, although
we are satisfied that we shall recover a
larg art of the money eventually.
I'm my opinion" said President
Williams Mr. Quinlan has been the
victim of clever schemers. believe
| that he has been mentally irresponsible
| for many months. though there was
nothing apparent in his actions to be-
| tray this to us. Mr. Quinlan had known
| Mr.. Cradle for some time, and six
weeks ago. when the latter asked for
| loan of 5000 to help along some
scheme of his. Mr.. Quinlan gave it to
him. Then came another loan of 80
900 which was also granted. Next
Silver was brought into the deal. Then,
| to save the loan first made, Mr. Quin-
/ Ian made another loan of an equal
amount. and to save that, he gave them
another.
| I'm this way, in little more than
six weeks. the amount OF the loans
was run UP to almost half a million
/ dollars. 1t was not until 1t had reached
this figure that we knew anything
about it, Then for the first time Mr..
Ouinlan seemed to realize that some
| thing might be wrong with his &C.
counts. So. last Sunday he called on
me at my home and made a statement
of the facts.
Il want to say this for Mr.. Quinlan.
Not the slightest suspicion of dishon-
esty rests upon him. l do not believe
that he profited by these loans to the
extent of one cent"
Mr. Quinlan lost nearly all of his own
private fortune some years ago in pro-
! tecting the nan.e of a relative who had
been Specializing on the Stock Ex-
change during the panic, so that he has
nothing with which to make good any
losses arising from his bad judgment
/ in the present case.