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TWO SUSPENSIONS. Philadelphia. Pa., Dec. 23.-The doors of the Chestnut Street National bank were closed this morning by direction of the bank examiner. The Chestnut Street Trust company, which was operated in conjunction with the bank has also suspended. W. N. Singerly was president of the Trust company and the bank.
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CRASH SINGERLY'S Street National Chestnut Bank, Philadelphia, Closes Its Doors. TRUST COMPANY FOLLOWS SUIT The "Record" a Paying Property But the Editor's Pulp and Paper Mills a Heavy Burden. 1897.-The PHILADELPHIA, Chestnut Dec. Street 23, National direcdoors of the this morning by were closed Examiner Hardt Bank tion of National Bank in the hands of the is Bank Its affairs Examiner are now William M. Singerly conjunction president The Chestnut of the bank. Street Trust Company with the which operated suspended. in Mr Singerly is also bank, also of the Trust Company president A notice was posted on the door which read as follows: Bank National The Chestnut Street and in Ex aminer hands of for the business, National Bank WILLIAM M. HARDT Examiner gathered A crowd of depositors was soon no especial the door, but there rule after about and as a general notice excitement had learned the nature and of the his place on each the door he moved away taken by others the crowd would be regarding the in anxious to gleam something bank has at all times been situation The reputation, but has held good time that its business off known for some its profits have fallen was however, suspension, in of the view officers and president is its bank of capital $500,000 his Mr not has yet affairs of the of condition the on made Bank, $2,790,and discounts, ional fund $500, in, paid and notes demand checks United Total $250,000. bills payable, and city depository the was funds in the bank Pennsy to of $289,854. city The State with the bank amount had on deposit cording December also $225,000, State Treasurer Hayon date depository of the National bank but the loss by holding $100, fully United States bonds as of that bank holds the funds fund, and the of latter Du Singerl the in are banks other of the case this Mr. phase ning today that Singerly the Record that and or be than Further the plan this Mi Singerly declined bank's would likely be ex the Bank Examiner would plain the gituation The State Loser HARRISBURG today Pa. by Dec. the State 23. 1897.- Treas in was announced that the State has $225,000 on Bank deposit Philadelphia. urer the Chestnut Street National of Cause of the Collapse Eck HINGTON. Dec. 23. 1897.-Mr. said the els, W the Comptroller of the failure Currency of the today in Street regard National to Bank of Phila Chestnut was primaril; to due the notes delphia the that shrinkage the suspension in Singer the value of the Elkton and $500,000, trying out taken stock and the bank sub Record Company Mr other hitch paper they the incident appoint the belief prope on said, five very per cent annually $5,000,000 New York Bank All 1897 Right According NEW YORK, Dec. 23, to the New York report furnished Boyd, manager of ancier' by John C. the follphia Clearing of House, the the Philade Chestnut the condition Street lowing was Bank for the week
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Prominent Philadelphia Bank Falls. Philadelphia, Pa. Dec. 23.-The doors of the Chestnut Street National bank were closed this morning by directions of National Bank ExamIner Hardt. The Chestnut Street Trust company, operated in conjunetion with the bank. also suspended. William M. Singerly. president of both institutions, s.id the basi k started 10 years ago with half s million capital and Robert E. Pattison BA president. When the latter became governor he was succeeded in the presidency by Singerly. Washington, Dec. 23.- Comptroller Eckels says the suspension of the Chestnut Street National bank. of Philadelphia, was primarily due to the shrinkage in the value of bonds and notes of the Singerly Palp and Paper mills at Elkton, Mo. The capital of the Sank was half a million. The deposits aggregate about $1,700,000; surplus $150,000. Eckels said there was not the least suspicion of any wrong doing on the part of any one connected with the bank, and he still had strong hopes of arranging for 3 voluntacy liquidation of the back's affairs without the expense incident to the appointment of 3 receiver. He thinks the bank will pay every dellar it owes. Harrisburg. Ps., Dec. 23 - It is announced by the state treasurer that the state has $225.600om deposit in the Chestnut Street National bank, of Philadelphia, which has closed its doors.
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THE LATEST NEWS. Philadelphia Bank Crash. The Chestnut Street National Bank Closed Its Doors Yesterday--Had CapItal of $500,000. The doors of the Chestnut Street National bank were closed at Philadelphia yesterday by direction of National Bank Examiner Hardt. Its affairs are now in the hands of the bank examiner. The Chestnut Street Trust company, which operated in conjunction with the bank, also suspended. The bank's suspension was a great surprise in view of the high standing of its officers. The bank was started in 1887 on a capital of $500,000, with Robert E. Pattison as president. When the latter took his seat as governor of Pennsylvania in 1891 Mr. Singerly succeeded him as president of the bank. It has been known for some time in banking circles that Mr. Singerly's banks were in trouble. Wednesday night a number of the leading bank officials of Phila. delphia had a conference considering the matter of raising sufficient money to relieve Mr. Singerly's banks of their distress. It is understood that a proposition to float $2,000,000 preferred stock of the Philadelphia Record, a newspaper owned by Mr. Singerly, had been practically agreed to when the discovery was made that because of the involved condition of the trust company's finances this sum would not be within several hundred thousand dollars of the amount required.
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BIG BANK GOES UNDER. Chestnut Street National of Philadelphia in Examiner's Hands. Philadelphia, Dec. 24.-The doors of the Chestnut Street National bank have been closed by direction of National Bank Examiner Hardt. Its affairs are now in the hands of the bank examiner. William M. Singerly is president of the bank. The Chestnut Street Trust company, which operated in conjunction with the bank, also suspended. Mr. Singerly is also president of the trust company. The liabilities of the bank and the Trust company together will aggregate about $3,000,000, represented by $1,700,000 of deposits in the bank and $1,300,000 in the Trust company. Of the $1,700,000 in the bank about $1,200,000 was to the credit of individual firms and corporations in this city, while the remaining $500,000 represented the accounts of banks in other cities.
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BANK DOORS CLOSED. The Chestnut Street National at Philadelphia Suspends. HELD TOO MANY BAD BONDS. The State, the City and the United States Had Money in the Institution-Comptroller Eckels Believes It Will Pay Out. Philadelphia, Dec. 23.-The doors of the Chestnut Street National bank were closed this morning by direction of National Bank Examiner Hardt. Its affairs are now in the hands of the bank examiner. William M. Singerly is president of the bank and is also president of the Chestnut Street Trust company, which is operated in conjunction with the bank, and which also suspended. A crowd of depositors soon gathered about the doors, but there was no special excitement. The bank has at all times held a good reputation, but it has been known for some time that its business, and necessarily its profits, had fallen of considerably. The bank's suspension, however, was a great surprise, especially in view of the high standing of its officers. The bank started in 1887 on a capital of $500,000 with Robert E. Pattison as president. When the latter took his seat as governor of Pennsylvania in 1891 Singerly succeeded him as dent. No statement of the bank's liabilities could be obtained. To what extent the trust company is involved in the bank's affairs has not yet been announced. The bank was the city depository, and there were city funds in the bank to the amount of $289,354. The state of Pennsylvania also had on deposit with the bank $225,000. The bank also was depository for the national government, but the government is fully protected against the loss by holding $100,000 United States bonds as security. It is said that the bank holds funds of the city, police and firemens' pension funds, school teachers' pension and annuity fund, and deposits of Fairmount park commission, which latter includes bequeaths for park improvement.
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banking laws. William M. Singlerly, publisher of the Philadelphia Record, is president of both companies, and the same men, with one exception, act as officers and directors. The first information the public received that the banks were in trouble was in the form of a notice to that effect posted on the door of the buliding occupied jointly by the two concerns. A statement of assetts and liabilities is not given, butitis stated that the deposits of the Chestnut Street bank amounted to $1,700,000 and of the trust company to $1,300,000. Wants to Go Into Liquidation. President Singlerly gave out a brief statement last night, in which he said: "We are working to secure the indebtedness of the two banks so that they can go into voluntary liquidation and thus avoid a receivership." Deputy Comptroller of the Treasury George M. Coffin, who was sent here from WashIngton by Comptroller Eckels, said: "The matter of putting the Chestnut Street National bank into voluntary liquidation has been taken up by Philadelphia men of great financial ability. Their first step will be to ascertain the value of he assets of the bank. They must first be satisfied that they have a value sufficient to warrant them in assuming the indebtedness." One Plan That Was Abandoned. Coffin will remain here several days aiding the men who have taken upon themselves the task of extricating Singerly from his financial difficulties. It was known for some time in banking circles that Singerly's banks were in trouble, and the national bank examiner, it is said, was aware of the condition of affairs. Wednesday night a number of the leading bank officials of the city held a conference lasting until nearly3 o'clock yesterday morning. considering the matter of raising sufficient money to relieve Singerly's banks of their distress. It is understood that a proposition to float $2,000,000 preferred stock of the Philadelphia Record had been practically agreed to when the discovery was made that because of the involved condition of the trust company's finances this sum would not be within several hundred thousand dollars of the amount required. Reported Cause of the Trouble. The statements of the cause of the failure current here are that it was primarily due to the loss of much money by Singerly in his unproductive paper mill at Elkton, Md., one of the largest In the country. One statement placed the sum thus involved at nearly $1,000,000. Singerly also has much money invested in other enterprises in this and other cities. There are strong hopes that every creditor of the bank will be paid in full. The net earnings of The Record last year are said to have been $249,000, more than sufficient to pay dividends on a sum sufficient to pay all Singerly's indebtedness to the banks.
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PHILADELPHIA BANK CLOSED. Trust Company Falls Too-Combined Liabilities $3,000,000. Philadelphia, Dec. 24.-The doors of the Chestnut Street National bank were closed yesterday by direction of National Bank Examiner Hardt. Its affairs are now in the hands of the bank examiner. William M. Singerly is president of the bank. The Chestnut Street Trust company, which operated in conjunction with the bank, also suspended. Mr. Singerly is also president of the trust company. The bank was started in 1887 on a capital of $500,000 with Robert E. Pattison as president. When the latter took his seat as governor of Pennsylvania, in 1891, Mr. Singerly succeeded him. as president of the bank. The bank was a city depository and there were city funds in the bank to the amount of $289,854. The state of Pennsylvania also had on deposit with the bank on Dec. 1, $225,000, according to the official statement of State Treasurer Haywood, issued on that date. The bank was also a depository of the national government, but the government is fully protected by holding $100,000 of United States bonds as security. The liabilities of the bank and the trust company together will aggregate about $3,000,000, represented by $1,700,000 of deposits in the bank and $1,300,000 in the trust company. Of the $1,700,000 in the bank about $1,-
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PLANS OF SETTLEMENT. Mr. Singerly to Remain in Charge of the "Record," Which Pays Handsomely. Philadelphia, Dec. 27.-The conferees selected to formulate a plan of settlement of the affairs of the Chestnut Street National bank and the Chestnut Street Trust company, of which William Singerly, proprietor of the Record, was president, to-night presented their plan for the consideration of the depositors and creditors. The first measure suggested is the issuance of Record stock to secure the creditors. The plan is prefaced by a statement that "it must be clear to all concerned that in no case can the creditors of the bank, of the trust company, of the pulp and paper company and of Mr. Singerly himself, realize more than the total value of the assets and rights of these corporations in addition to those of Mr. Singerly individually. No matter how protracted, or expensive, possible assignments and receiverships may be made, the creditors cannot receive more than the total of all the assets less the cost and expenses which will be incidental to their administration under what would be the most expensive form of such administration. The fact, however. not at first sight SO obvious, though it more and more impresses itself upon us, is that owing to the peculiar nature of the properties to be handled a lack of good judgment in their management will result in the receipt by the creditors of less than the present and probably of much less than the ultimate value thereof. "It is believed that if Mr. Singerly will continue to give his entire attention to the development of his great paper the peculiar qualifications which enabled him to build up a property earning, it is stated, in the fiscal year 1896, $310,000 net, and earning also, it is said, in the last seven years an average annual net earning of $243,000, will enable him to do what not merely will be impossible under changed conditions: namely, to maintain the present great value of the property, but also to increase it. This plan will, of course, be greatly aided by Mr. Singerly's insistence that everything possessed or controlled by him shall be promptly, without legal contest, transferred to the managers to be applied to the above purpose." The plan provides that the capital stock of the Record Publishing company or of a company to which its assets should all be assigned, should be fixed and issued to an amount necessary to give all creditors in class A par for their claims in a stock preferred as to dividends and principal, which shall bear 6 per cent. interest cumulative: and all creditors in class B, par for their claims in a second preferred 6 per cent. cumulative stock also preferred after the first preferred stock, as to dividends and principal; and all creditors in class C par in the common stock of said company. The managers of the plan are to make the distribution of the stock within 30 days after sufficient assets have been received to make the plan operative. In exchange for the stock the claims are to be turned over to the managers and stock is to be subject to the redemption by Mr. Singerly within six years, upon payment of its par value, with 6 per cent. interest, less dividends meanwhile declared. "Mr. Singerly shall remain the editor of the Record, and shall continue its policy, but its business management shall be continued by a board of which the managers may be members to be elected, a voting trust which shal consist of the managers and of Sydney F. Taylor, president of the Fourth Street National bank. The plan is submitted for the approval of the creditors." The document was agreed on after an all day's conference between the assignees and J. Howard Gendell, Mr. Singerly's attorney, and Director
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Chestnut Street Bank of Philadelphia Closes its Doors. The financial circles of Philadelphia were greatly excited on Thursday morning of last week when the news became current that the Chestnut Street National Bank of that city, had closed its doors. Great excitement prevailed and when it became known generally throngs of depositors and others flocked to the building all anxious to know the cause of the suspension. The failure occurring as it did on the day before Christmas, was a hard blow at the business in the city. A little later in the day it was learned that the Chestnut Street Trust Company had also failed. William M. Singerly, editor of the Record, and late Democratic nominee for Governor is the president of both institutions. A plan looking to the interest of creditors has been hit upon. They are to take half in cash and half in Record printing company stock.
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THE SINGERLY FAILURE. Assents to the Recrgarization Flan Bald to Be Comton In Rapidly. PRILADELPHIA, Dec. 80.-Thère is evidence that the plan proposed for liquidating the affairs of the Chestnut Street National Bank and Chestnut Street Trust Company by a method of securing the claims of creditors until they are paid will be carried through successfully and the claims paid dollar for dollar. The depositors in the suspended bank have begun to signify their acceptance of the proposition of the assignees of the trust company, which is nothing more than an offer to secure their claims. As a necessary step toward voluntary liquidation, Bank Examiner Hardt today gave orders that all depositors shall, without delay, bring to the bank building. 721 Chestnut street, their deposit books, for the purpose of having them written and balanced. This is necessary in order thatall claims against the bank can be properly proved. N. W. Ayer, President of the Merchants' National Bank, made an offer to-day to cash the claims at once of all depositors having accounts of $10 or less at the Chestnut Street Bank, upon presentation at the office of N. W. Ayer & Sons. It was said by one of the officials of the bank this afternoon that nearly 700 creditors have given their assent to the proposed plan. Also that the amount represented is about $800,000. Assignee Earle s.id: "The creditors are assenting to the plan more rapidly than we anticipated. This fact must be borne in mind, that we have not as yet placed any time limit on the reception of assents. As soon as we get enough assents we can begin to realize on the assets of the company and be able to pay a dividend.' Deputy Comptroller of the Currency George M. Coffin left this afternoon for Washington, to meet his new Chief, Charles G. Dawes of Evanston, III., who will succeed Mr. Eckels as Comptroller of the Currency on Saturday. Before his departure he said: As far RB can be learned now the assets in round numbers, outside of Mr. Singerly's indebtedness to the bank, are about $2,800,000. The liabilities are about the same, but it must be remembered that there might be a considerable amount of these assets which might not be convertible into cash. A shrinkage may result, and if a receiver should beamed that conseq uent depreciation would fall upon the shoulders of the depositors. By this plan it is hoped that this result may be averted." Bank Examiner Hardt is still going over the books of the bank with his assistants, and Assignees Earle and Cook have a force of men at work on the books of the trust company. The clerks are examining carefully all the assets of both institutions. but no statement of the condition of either will be made for some time.
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TWO LARGE FAILURES A PHILADELPHIA BANK AND TRUST COMPANY. The Liabilities of Both will Aggregate $3,000,000-Prominent Religious Worker of Brooklyn in Jail, Charged with Forgery. Big Concerns Go Under. The doors of the Chestnut Street Na. tienal Bank of Philadelphia were closed Thursday morning by direction of National Bank Examiner Har.it. The Chestnut Street Trust Company, which was operated in connection with the bank, also suspended. As soon as the notice was issued and posted a crowd gathered about the door, but there was no appearance of excitement. The bank at all times had a good reputation. but it has been known for some time that its business had fallen off considerably. It is not known to what extent the trust company's affairs are involved in those of the bank. The bank was the depository of the national government. It is said the bank holds the police and firemen's pension fund, school teachers' pension and annuity fund and deposits of the Fairmount Park Commission, including bequests for park improvements. The liabilities of the bank and trust company aggregate $8,000,000, represented by $1,700,000 deposits in the bank and $1,300,000 in the trust company. Of the amount in the bank $1,200,000 is to the credit of individual firms and corporations in this city, and the remaining $500000 to accounts of the bank in other cities.
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supported the Palmer and Buckner ticket, making a. number of speeches in its behalf in Pennsylvania, Delaware and Maryland, and organizing a local association in aid of the movement. He also took an active part in forming the Pennsylvania Bankers' association. Financial misfortune overtook Mr. Singerly during the last few months of his life, when, on Dec. 23 last, the Chestnut Street National Bank and Trust company were compelled to close their doors. Messrs. Earle and Cook were made assignees of the trust company and managers of a plan looking to the liquidation of the affairs of both institutions. Mr. Singerly promptly turned over to them every personal asset he possessed, including his interest in the Record. Since then a receiver has been appointed for the bank, and the affairs of it and the trust company are in process of settlement.
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GILKESON'S LAST REPORT. His Department Was Powerless to Prevent Philadelphia Bank Lootings. Harrisburg, Jan. 7.-The annual report of the department of banking for the fiscal year ended Nov. 30 last was made public yesterday. The report was transmitted to Governor Hastings by Colonel B. F. Gilkeson before he resigned as commissioner of banking. Colonel Gilkeson goes into a long explanation of the causes which led to the failure of the People's bank and Chestnut Street Trust company, of Philadelphia. What he says of these is almost similar to a statement issued by the department at the time of their failure. He claims too much of the capital of the trust company was loaned to its president, the late William M. Singerly, and that the department was powerless to take action to prevent this. As to the failure of the People's bank. Colonel Gilkeson says it was brought about by direct examination of the banking department, and that prior examinations showed its solvency. Immediately upon the receipt of the last report of the condition of the bank he wrote to its president, calling his attention to the matters disclosed, and demanding an immediate examination. The day the letter was received by the president the cashier committed suicide, the bank closed and a temporary receiver was appointed. Colonel Gilkeson makes a number of suggestions to improve the system of conducting the banks, building and loan associations and other corporations doing business in the state under the supervision of the department.
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STATE FUNDS AS DEPOSITS IN WRECKED STATE BANKS North Penn Case Recalls the Celebrated People's Bank Affair In Which Quay Figured Twenty Years Ago HAT the wrecked North Penn Bank carT ried heavy state deposits may be cause for censure. but assuredly it should be no cause for surprise. Much the same thing has happened before. One of the most notable cases in Philaadelphia was that of the People's Bank (also a state and not a national institution). which led to the arrest and trial of Matthew Stanley Quay and others on a conspiracy charge. It was during this trial that there was offered in evidence a telegram containing a phrase which became a classic. It read as follows: "San Lucie. Fla.-John S. Hopkins-If you buy and carry a thousand Met. for me T will shake the plum tree. M. S. Quay.' The story of the bank's failure properly begins with the closing of the doors of the Chestnut Street National Bank. of which William M. Singerly was president. on December 23. 1897. The Chestnut Street Trust Company failed with the bank. On February 27. 1898. Mr. Singerly died suddenly. While the Singerly properties were engaging attention an order of court was issued to show cause why a receiver should not be appointed for the Guarantors' Finance Company. The following day the People's Bank suspended.