Chicago Daily Tribune Newspaper, August 29, 1877, Page 1

VOLUME XXXII, EXPOSITION BUILDING, Ghicage ~ [nter-State Exposition, Aug. 29 to Oct. 13, 1877. CRLEAT LOTS, COOL QUIET. In theso hot, sweltering days and restloas nlfhul rumnmb;' LA ‘[’9&1\1‘!01’2' A benu. y‘llald healthful home for your little onos for FREE CAR FARE. If you huy Two Lots, and will bnild im. mediately, I witl furnish yon a pass good for TWO YEARS on every and all trains MY LOTS AT Ths Gmat Amfln'can Exhimfim] ur bchfecn Chicago ani La Grange. Science, Industry, aud At Visitors may rely upon ‘ilie assarance that, for i teresting, meritorious ob- jeets and attractive novel- tien, this Xxhibition has never been equaled on this Continent except by the Centennial. All persons, and especially all young persons who de- sire to be up with the prog- ress of the world, should see it without fail. Admission-=Adulis, 205 cts.; children under 12 yecars, 16 cts. Open cvery day (except Sundays) from 8 a. m. to 10 p. m. Saturdaysto 11 p.m. Excursions on all railroad SAVE MONEY! AND AT THE S8AME TIME Obtain the Best and Most Durable Goods. We have LARGELY REDUCED our nrices on ALL GOODS. Then FROM_TIHESE PRICES wo deduct 20 PER CENT on all Mixed Buslncas Suit- fngs, Mized Cassimeres, snd Mizcd Overcoatings, Aamuier welights, and on ALL OTHER GOODS, In Summer and Winter welghts, 10 TEI SENT DISCOUNT, from July1 to Angust 31,1877, fueso discounta are for pronipt_cash, within five daya from DELIVERY OF GOODS. Our 8TYLES tor AUTUMN and WINTER are fn resdinesa, We believs we are selling our govds LOWER for thefarticls furnlehed than any house of EQUAL STANDING on this Continont, Everything Garantecd—Standard the Highest ‘Wabash-av, cor, Monroe, Chicago. ESTADLISHED 1854, PROPOSALS, CUNVICT LAGOR TO TET. Sealed provosats will bo recatved at the offic of the gecretary of e Hosrd of Public 4 ands and Hatidtoxs of Nebraaks, untll noon of Thursday, bent, 230, A, D). for tie esaiag of tne Pealtentliry, Péaiteatiary ds, snd convlct 1aDar, f0F & term of not mor: Mx'years, from Oct, 1, 1977, ~ The succemini nid- dez abiall'p3y il Penitentiary expen: atieaf oilicera, guards, Keegpers, turnkess, and Oth Jeip, the heaitriat the bulidinz3, board Of 53,000 s security for the iing of au acceptahla bond In the sum of §100,000, coltecs: able under tho laws of Nebraaks In oase thie contract awanded hlin or them. i 0y of ¢ il ro n appilea- ton fu (tia Seeretury. - ANl 6545 4Botle_be Andored an thavaver, **Nlde for Convice Labar," and addressed to {his Sevreiary of ihe Hoard of Tublfc Lanas snd Bufld- (Blgued) . M. DAV Fnllicd Tzu%‘ngcx. GEO. I ROBERTS, J. C. MCDRIDE Igy::efl( Tublfc Lands and Huildings 3iate of Ne- “TO RENT, FOR RENT. DESMABLE QFFICES I THE TRIBUNE BUILDING TO RENT. Apply to WM. 0. DOW, Room 8 Tribuue Building, " OCEAN STEAMSLIIPS, Goneral Traseatiantic Company, Datween New d Havrs via Plymouth, from It foot of Morton-st. ., 3¢ 2p, m, Wed e {.'l ‘?5’:’ fuchbiing wiler: 5 : 057 Socand Lhvmes gds; wine, beddioy, and utenstls. NDON, or soy reliwsy station rding to accomumods. l:fvE cuu'n 3331 Sieorags, N ¢ $20. fncludin YMUUTH, Lo Calin. $93 to ccond Chbns Loh: e TR M 0%, 63 prosdwey . D . D Vo T ¥, ¥, WHITE, 67 Clark‘st.. Azmmr Chicago, Great’ Western Steamship Line. From New York to Dristol (England) direct. SOMPRSET, Western.. ARAGON s ymena ™ nedis Busze. 10; Intcrmedlaia 843: Stccrage. 830 n & Certldcates, §34. . Apply tp. i “North German Loyd, ™ every Sarc.. fay trom Tireman Fler, fo0t of g T, 4,0f paassge—Trom Now Yorklio Sodiamnpio abidol 'y S50 Brumen, fi3t chuln Ok fheigas o Jadaage's) s dus's ".: i GETRIY 3 Bowling resn. New GUATES AND MANTELS, e L2 Flala, kfgi&fl:fl.dndildll SLATE MANTELS. ¥ OBASCO & RUMNE s 2?1 WEATET. LA GRANGE! only one Block from tho Depot, and 7 fi:l‘es (r’om Chioago. Thnlh aro Doautiful Property, and 1 an soliing them for al $100, $18 down and $5 monthly, Tuls makos it gost you, aiter your first paymont, only 17 cents n day. You can aave that on cigar money, or your good wifo will find a way to ocgnomizo juat a littie more, so you can by- and-by have A BEAUTIFUL TIOME OF YOUR OWN. FEXCURSIONS loave my offics to seo tho Tots overy plonsant day at 7 and 10:30 in tho mornfug nnd at 3 and 4 o'clook n the stternoon, for wll who meaa business. LA GRANWGHE,| 1a on the Chicago, Durlington & Quincy Raile road: is ono of Chicago’s most atiractive and onterprising suburba, being boautifully situatod smong hills ond groves: has now about 1,000 inhabitants, and growing rapid- 1y churches, schoola, atores, eto., eta, 1O0-CEINT TRAINS Alrondy on, and S-cont trains will probably run shortly, COMMUTATION ON THIS ROAD VERY LOW, And TRAINS ALMOST BVERY HOUR. Bpecial svening trains doring amusement season. Bunday traina for thoso washing to "'E’c’:‘g:%'“?xx'n" ttl:: ol""thonn TLota befors sco buying. It is the CHBAPEST PROPER. 'm!m the markot, and T Will Assist Parties o Build I ALSO HAVE EACH. 40 Lots at ITyde Park - $600 100 Lots at Evanston - - 500 100 Lots at South Chieago 250 200 Lots at Desplaines - 200 40 Lots at Park Ridge - 300 400 Lots at Lake Side - - 100 300 Lots at Glencoe - - - 100 600 Lots at La Grange - 100 800 Lots at Thornton - - 100 1,600 Lots at Homewood - 100 2,400 LotsatSan Diego, Cal., 100 £ Romomber that you get an Abstraot P s e '8 com lasions, n. L4 Ty own properiy, and SHOW 1T FEEE, IRA BROWN, 142 TaSalle-st.. Room 4. - NEW PUBLICATIONS, PIANO MUSIC, Five Fine Collections!!! Parlor Musie 2z, hraissge. oaric e and Val. 11, hias 222 pages, filied with the hest and most popular 'iano pleces, overy ono of medium dificulty, bas 221 es (sheet i Pearls of Mlolody sieiobeeiacs e by Wilson, Tonel, La tfache, Allard, Olo Bull, Epind- ler, etc., otc. i a large number, and all of tho eat, firstisaned Innum. La Cromo Do La Creme, 853 *jed dnnam- sented in two volumes of about 246 page ee music size) cach. -3lusic 1s for advanced players, and carefully chosen. (224 pages, sheet music memi“ 0[ Gelfls #120) [s a general collection of easy, popular pleces, that every one can play, Welcome Home G fefew “asghrasals ee) ery Home whero It fs used, having well-chosen, brfzm wmuslc, and nothing harder than the medium degree of dificulty. Price of Each Hook: $2,50 Bds.; 83 Cloth; | . $4 Gult. LYON & HEALY, Chicago. Oliver Ditson & Co., Boston. MY MOTHER- IN-LAW. Importauf fo Raiiroad_ Offers, Stk Stip- Jers, or Pateut Right Specolators. Maitland’s Combined Stook, Freight and Stook-Protecting Car. The car can be operated from the outaide to pro- tect stock from the blowing anow and stormw. The rightfor sale, or will negotiate with sny one line forthe exclusive overation of the car for six montbs on such line. Call or address J. R, NAITLA. Commarcial Hotel. EXPOSITION. 7 l!s‘r et A Gentleman Who Can Col option trade tn the city and countey, can make A aTirubls Crnukelion with s sotabiabed uid ror ylhll Lommlssion House. Address, with particulars, 87, Tribune omice, L T MOTEL, Ope block frum A, T. £tewart & Co.'s Dry Goods House, and McVicker's Theatre, 2.00 PER DAY. $ New House—Elogantly Furnished, oo EINANCIAL = COUNTY ORDERS ! CITY VOUCHERS Y FOR BSALE. HOPS. . Pifteen Bales Now York Hoy Hor e e e ON, MMDERG & vo. ™ 64 Lake-st. K ailp Tribune, CHICAGO, WEDNESDAY, AUGUST 929, 1877. SHASHED. The State Savings Institution Makes an Assignment to Abner Taylor. Failure of the Negotia- tions to Secure It Some Money. Causes Which Broke the Bank ---Bad Assets and Injudi. cious Management, The Liabilities and the As- sels--Money Paid Out Since June. A Statement of a Definitc Nature to Be Made in a Day or So. Somsthing Regarding David D, _ Spencer’s History—His In- i dictment in Wis- ; ; consin, -What Hessrs. Jobn €. Haings and Syd. ney Myers Ifave fo Say on the Subject. and ' They Are Both Confident, Will Open Their Doors a3 Usual. 3 The Early History of the Institu- tion-—~Spencer’s Unwise Investments. TIIE SUSPENSION, ASSETS AKD LIADILITIRS, ‘Therc was filed yesterday in the office of the Récorder a document assizning all the property of tho Btato Savings Institutionto Col. Abner Taylor In trust for its creditors, the depositors, This thing camo ont uncxpectedly to nearly ally certainly tothe depositors fn the bank., Al. though drawn up Saturday, Col. Taylor knuw nothing of it until it was handed to him ycstur- day by Judgo Beckwith, Tho causes which Jed immediately to making the assignment may bo briefly stated: The faflure of some 8t. Louls savings banks in the middle of July startedn run upon ths Btato Savings Institution, which bhad always been looked upoen by the knowing ones as very weak. After it had continued for a day or two the ofii- cers of tho bank began the enforcement of the rales requiring the thirty or sixty daya’ notice, paylug out, however, small sums. when the neeessitics of the claimants appoared to warrant it, but somotimes, it is sald, paying out largo sums to- speclal partics. ‘Ihis drain upon the institution has been poing on’ over slfce. Last week tho situation beeame grave. The thne was drawing noar at which Mr, Spencer wonld bo called on to pay up tothe depositors, who had given their notices two mooths previous, The way in which the bank liad becn drained of {ts resonrces by thin steady, quict rus, is best shown by " TUE FOLLOWING COMPARISON. Here Is the statement of tho condition of the bank made on the 30th of June: ai eatats.. United $tates bonde... South Park bonda.. County nnd school Cash and_cxchange,,. Banking-housa and (including safe-depoit vaults), Safeas, fusnlture, and fixturcs... ... e ——— 1,507,013 ‘firum:om 510,000 $4,415,027 83,774, 878 ddasaith LIAMLITIES, Dae de [ IRTTRRTI C:)ll(llplflh.bck. Bnrdpllll Tund, Undivided prof 135,000 16,461 I i $4,415,327 And hero fs the statement of its conditlon 1 saturday wghts o Tavings deposits, Cerii8catesof dopostt Lilla payabl Total... 3 fortgage loan 1,330, 184 Coliaterat loan RN ealestate., I { L Total Deflaiteeea s, 3 By a comparfton of thes tigures 1t will be acen that during July and August the lsbilitles have been reduced 81,437,000, and that tho re- sourves have shrunk $1,600,000. It is alleged that since the run began, in the middle of July, about $000,000 have been pald out, Allthe araflable assets of the bank on band July1l, fts bonds—United States, park, and county— and {ts cash, have been swept away, and it was lefs with notbing but ita mortgage loaos, 1ts coliotersls, and its bulldlng, Duriog the close of last week there were MULTIVARIQUA OONYERENCES OF NANKERY with Mr, Spencer fu order to ses what conld be done for bim. {10 stated that (f he could raise ———"| $600,000 be would beablatotide over the emer- Bency, and that he had collaterals and mortgage securitles which were worth that amount. These conferences wore cantinued unabatod until Nat- urdsy night, but accomplished nothing, be- cause Mr, Bpencer at ©no time open- ed his books or showed his collaterals for the lospection of the Chicago bankers who would bave been glad to help bum out had' they seen tho way clear to dofng so with safety ‘| to themselves. Baturday afternoon 1t came to the kuowledge of Tus TRIBUNE that these negotlations had been going om, and it was be-. licved that they were fruitloss. The reporter accordiugly saw Mr, Spencer, and asked him about the stmustion. Mr. Spencer stated that Mr. Jobn C, Haines bad negotsted a loan of $30,000 with the Murchavts' Loau & Trust Company, and shat tbat money would be in his bank Monday miurnlug for the pavmens of such deporitors as might turn up, and that he himself was golng to New York the pexy afternoon, camrying with bim securities on which be intended to ralse about $300,000. These amounts, and the additional sums be ex- pected to got from other Chicsgo banks, would carry him thfoush swimmingly. He intended, be sald, to stand by the institution to the last, and BRING 1T SUCCESSFULLY THROUGH TES CEISIS. Ho did not intend to fail &t 1o its emergency. —— i So Tne Trinoxr sstd nolhing concern- inT Mr. Spencer’s fifMcoltles, and let him 2o on lls way to New York. It appears, however, that at the very time hie aald this he had made this assigmnent to Col. Taylor, it havins ; been drawn up Gatur. day, in realiness, probe ly, to be used in case his nemottations fn New York wers un- successful; or, more I kely, e bad no idea that they would be sucer ssful, and weryy to New York simply for the p nrpose of et ngoutof tha way, escaping intery” ows, and avol,ding the aight of the miscrs and the wretch edness that his financial mismanaz tment bat, wrought. As re- gards the VALUZ: OF THE AssETS . of this fustitutior,, it I8 tc o scon to speak with confidence. Tl y presum‘ption I, howeser. that the bulk of the m either posaess but little valus orcanuotbe sealized upon for an fndefnite time. Amon g the collateral loans figure, 1t Is belleved, #(% 0,000 U the stock or bonds of the Chicago & * Calumet. Canal & Dock Company, whichare worthless. Tnese arca part of tha legacs, p resumal,ly, of the Bowems. Itis also beliovers that the ‘hank was loaded down with oliliga zions or notes of the parties who built the Chle g0 & Pacific Raltroad~ticurze 8. Bowen, Thomas Deubins, ete. Sinco these mortgage leans were not shiown to any estent dur the fnspection of the bankers, it is difficult tozay whnt they are worth, One gentleman had $)30,000 handed over fur his fnspectfon which were very good, but these were probably culicd fram the lot, sad aro not a fair sample of the $1,830,000 invested In mortgages, COL. TAYLOR WILL BERAIN, kowever, this morniog with a largo force of, <lorks, rush through the booxs, .aud make a fKuess—probably a pretty good one—at the value of the eccuritics, and will then be In s conditton 10 tell the creditors sumething as to what they have to houo for, It will bo cheering news to those who made deposits cither Saturday, Monday, or Tuesday, Lo know that thelr moncys were not mixed with the common fund, but werc turncd over to Judge Grant for the depositors, It wasthen so clearly underatood that the bank, was golng up that this course was adopted. In o day or so these depositors can gt thelr money. THIA PAILURD is the realization of suspicions that hava been current for scveral years,—at least cver sinco David D, Bpencer got contrul of the bank. While tho general public have heard scarcely anything of this, thero has been a continual whispering of suspliclons fn banking circles, nad there is gcarcely & buaker In thecity who has not st some time during the past threo or four years—whenover the Btate Savings Institution was mentioned--wagged his head apd rolled bis eyes ina knowing iapner, to indlcate that ha kuew—oc suspected—a great deal thore than ho chose to tell. Bpencer's Tuputation at “hls farmer place of residencs had fol- lowed him here, and at the timo he got con- trol of the Cool County Natiopal Bank tocre were persous who at first wero bold enaugh to say that he ought to bé anywhere clze. But as ho eecurod o more and more im- portant position {n baokiog affairs, aud scemed £o be prosperous, theso rumors for a timo dled away, uutil e was again brought prominently {nto notico by his dealings with B, I, Allen, and bis trausfer of tho Cook County National Bauk to that individual of character so liko bis own. Blnco that notorfous trunsaction the susplclons of Bpencer Lave gradually Increased, and tho Btate Bavings Institutionhas steadity loat charace ter, as will bo scen by the decrcase of its de- posits: In December, 1873, they were, $4,020,- 867; 1n Decembeor, 1874, thoy were $3,803,100; June, 1675, they wero £3,885,083, and in April, 1817, $3,806,000, though tho Iatter amountis prosumed to have been somewhat exagrerated for the purpose of keeping up appearanons, ONE OF TIB PIRST- RNTANGLEMENTS of the bank was its complications with J, C.' Dobbins, oncof ita stockholders, in the largo advances made to him oun the bonds of tha Clicago & Pacific Rallroad. The bank advanced a large part. of tho money to bulld that portion of the road finished up to the time of Dobhins® fallure, and in the settlement with him the bank ‘was obliged to take Dobblns stock fn the bank at %0, But the former largo surplus which had made the stock atone Ume sell for this hich figure had been divided up, and" there wasa dead loss of over $100,000 on that part of the scttlement alone. Sponcer had now got control of the bank, and many other stockholdors, sec- ing how thinge werc goinz, gradually forced bim to buy them out atfar above what tho stock: was really worth, Tho bank los, therefore, for the last ycar or two, been carrying a large majority of its owa stock, nioat of it belng held by 8pencer and ono or two others. Tho net re- sult of theae forced purchases of stock at high tigures has been, that, instead of having s sur- plus as reported, a largo part of the capital was sunk. y - AXOTHER LOSS of thie bank has been in-ita building and lot. The ground on which the bank bullding stands’ east $00,000, and the buildingand safety deposiv vaults about $160,000 more. This was an inju- dicious investment; the building was Trected in times when 1t .cost twico as much’ as it would mow, . and” the . bullding of - the safety deposit vaults was a {oolish, unnecessary expendituro of money. Tho reveaue from safcty-deposit vaults does not pay sny bank in this city for tho expense; that brauch of the banking busincss is overdone, ‘The loss on the bullding of tho State Saviugs Institution would probably bo at least $125,000 1f the property hadl to be sold. But oven the losses abovo mentioned need not have swamped the bank if its deposits had been honestly and judiclousty Invested. Bpencr, It Is believed, bas managed to load it up with & large amounteof auburban Jand and other se- curities which are’ either unavailable or of but Httle value. One tract of land is about twenty acres at the junction of Seventy-firat strect and Stoney Island avenue, which, though Hkely to be veluable when the demand for real catato ro- vives, is not avalisble now, Besides this, the bank s belloved to hold Calumet & Chicago Canal & Dock Cowpany stock and bonds to the amouut of $000,000, 1t is bard to estimate the amount of MISERY AND WRETCHRDNESS which this fallure will cause. Of the two mill- fou and odd dollars locked up in this bank, a large proportion would have been used by workingmen, clerks, ete., to carry them through the winter, As ft.{s, they arcleft destitute, Lelpless, with onlya falut hope of & possible dividend In the dlm futare. ‘The news-room of Tns TRIBUNE {s represont- ed to the amount of about $3,000. Iu the case of some of these depoaitors the earntogs of & ltetime have been swept away.. Insomoin- stances the money was about to be used to start fo business. One twan Lad miads arrange- meots for the purchase of a newspaper out In the country, and was just prepariog to pay for t when this troubls came on. Among the many who dropped into Tus TrIBUNE ofice last crening 1o ask as to the truth of the report that tho State Saviuge bad suspended, was & hacknan, who said that be bad on deposit there $9,040, which was all Le was worth. After having been assured of the truth of the rumor, he expressed his opinion of tho officers of thy fustitution In terms uot used 1in pollite langusge. The Buperintendent of Polics has ordered s detall of*twenty men to be seut to the bank this mornioe. Unquestionably there will be an immense rush of depositors thezs, aud as the doors of the bailding will be closed to evefy- body and gone will be abla to get ta, there will bes crush sod sa obstruction on the sidewalk. 1t 1s to keep the roadwsy clear and prevent any possible, though very unlikely, attempt at ‘Calumet rloting that this large equad has been ordered upon duty, WIIY IT FAILED, THE BREAKING OF TILE ST, LOUIS BANKS a month or fire weeks ago created s scare among the depositors of the State, and a littie tineasiness among those of other savings banks, aud the Btate had a run. It patd ontipre. sponse $300,000 or $400,000 of its calh meatis in the hope of abating the excitement. But tho alarm increased {o violence, and there was a crawd constantly at the doors. Then the bank had to fall back on the rule, and demand sixty days' notice. Moner, however, was still paid out,—a nortion of the accounts of all who asked for funds, or showed that they really needed money, And there had been a constant drain on the baok since the 1st of dJuly. The return flow was very small. This check to confidence arrested deposits— dried up the sources of Income. Then July 1, the balf-gearly interest on the entirs balance had to be pald, which amounted to about 3 per cent on perhaps £4,000,000. Ino short, from tho date given up to last Satunlay, it was reported by Mr. Bpencer to hankers in the city who asked for a statement of the condition of the Institu- tion that he had paid out In cash over bLis counter over $800,000 more than had been taken in, and that this outficw had taken tho great bulk of his cash means. In order to raisc this £800.000 as fast 88 It was called for by the dee vositors, -he sold the greater portlon of his United States bonds, and also disposca of sev- eral other classes of socuritics that could be readily turned, without sacrifice, into cash. He also sold & number of the notes of his best cus- tomers. IT WAS ROMORED IN BANRING CIRCLES Baturday night that the State only had $203,000 or less on hand; that the liabilitics then out- standing were In the neighborhood of £3,000,000, they baving been reduccd sinco July 1 nearly $1,000,000. ; 4 The bank hsd lost by depreciation In real estate, and in various sccurities in which the management had invested money, more than cnough to sink the entire capital stock of $500,000, 80 that the stockholders’ intercst has been extinguished by the hard times of the last four years, commeacing with the panic of 18, ‘This, of coursc, has been the malp cause of the troubles of the institution, as it has been of iany individuals, The State had loaned ita money very largely on real catate, chiefly dur- ing the bullding period after the Fire; and it had to carry over a great deal of badly-crip- pled paper in consequence of that event. This paper representod money that had been loaned on houscs and lotsy and the bulldinzs belng de- stroged, and little or no msurance being receiv- ed, the lots were not worth the smount of the original jnvestinent. The bauk held mortgares on both, and also assignments of the {nsurance, but the latter yielded from & to 15 per cent,—20 at the outalde, generally the former,—which was very poor repayment. Then the panic put down the value of the ground. Bo that for the last two years A GREAT MANY OF TIIE MORTGAGES heid by the bauk have not been worth anything like tho sums they were supposed to secure, In hundreds of other cases, where the mortgates covered Improvements, after the panie, the land and tencments were nol worth the morteage, and could not be sold for within 20 or 80 per cent of the smount due. Aund agreat many men, flnding theniselves crivpled, had ceased to pay the intercst and the ‘taxes, and the bank bad to takg the property; not gencrally by fore- closure, but by mutual arraugement to save vosts; and it has an enormous quantity of this kisd of property on its hands, and has had to take caro of the taxes and sssess- meots, . Attempts have been made to scll It for the best rates obtaluable, bui, ss everybody knows, the sale of real estate,.improved or un- linproved, has been rathor siow for the last year or two; and sales, when made, bave been at a sacritice, THHE FOLICY OF TIIE STATR bad been to losu & preat deal of Its money to toechanics and the salaried class, who were Lry- Ing to save cuovgh to own & home. What pro- portion of its funds was invested in this way fs not generally known, but ot least one-third of Its means are locked up fu mortgages on city property meinly owned by what mizht bo called the laboring and miBdle classes, —men who recelve wages or salaries, and who n good times nro considered the most desirable borrowers, aluce they do not borrow very largo sums, and are pretty prompt {u paying the futercet and installments. But during the Jast four years they have becomo slow nod slower, and many bave falled entircly to keep thelr agrcements, and in hundreds of cases the bank had boen obliged to redew the mortgages. In some cases Lhe arreamges of Interest and arrdarages of taxes have been add- ed, and now mortgages made, covering the wholo sum due.. Tho managemeont had, done the best it could to carry atong thelr customers until they could pay up. THUB BANK MADE A MISTARN inkeeping up ita high rate of {nterest on de- rosits. It has not been sble to pay G per cent when the rato biad fallen to 7 and 8 per cent on commercial paper aud firstclass sccuritles, be- cause & bank cannot have all its funds on Inter- est. Itisobliged to kecps large amouutof money on hand that is drawing no Interest at all; and thea there arc the cxpenses attendant on the émployment of a large forcoof clerks and accountunts, cte., and, in addition to ali, a bank has to pay considerable in the wayof taxes, And there are often more or less losses. But tho6 per cent interest runs forever; it never ceases. - Henco ths State had made no money for a year or so, having lived on the hope of a change for the better. TUEN THERE HAD BEEN A LACK OF CONFIDENCR iuPresident Spencer. He bad left tha Couk County Natloyal, which went to pleces under very disastrous circumstances, and rotated into the State,’ A great mpny men tnthe clty—tho prudent, reflecting class—have feared that the bank bad not been put Into tho best hands, aud & largo number of fts licaviest eustomers .gradually withdrew their woney, Its busivess had not strengthened; it had not rotained its Lold on tho public confidenco sluce the change in the manszement. Not much has been sald about the affairs of the bauk, still thoy were tulked about In & conildentisl way among moneyed men sud baokers and business-men, who scrutivizs the condition of all . flscal Institutions very carcfully. 8o thero has been this weakening, undermiulng process going on steadily for a long time, Many of the larger do- positors were merchants’ clerks and acvountauts and swmall traders, Thoy were naturally tho dirsl to suspect weakness and the firss to close their uccounts, Tence the Lank biad been suflor- {ug a pretty scrlous stratu for a good whilo bo- fore the 1st of July, when 1t recelved the shock consequent upon the failuro of some of the large banks fa 8t. Louls. - ‘Those who were lnvestigating the condition of the Btate,as far as the Preaident permitted themto look Into Its affairs, were of opiulon Lt i2 iLs resources were well Landled, and allthe paper that it has sold as fast as possible, with- out belng sacsificed by forved sales,—sold de- liberately mnd judiclously and wisely,—and the procecds pald over pro rata to the depositors a8 fust a8 5 or 0 per cent dividends cuuld bo wade up, the bank, notwithstanling tho awount which it had lavested in tho Caoal & Dock Company and otber securities thst are understood to be bad, would pay 75 or 80 per cent. The stock- bolders, as stated, would be wiped out, but the dopositors would get that at least. These gen- tlemeu also thought that, with Gret-class man- agement, the assets wight yield B per cent, byt .1 bave } '] J PRICE FIVE CENTS. N T Is sald that st 5 cima (s Institution was started b Y1 no mones excent what was noce £ for his own personal oxpensos; that! &' (not even snnusbtu nuy the baoks .ml}' ary tor the bank} aod that these articles) O secured on credit from s friend of his , o #as keeping a stationery store in or ne® &> rris. Along i 1870, navinz worked up }Zg 5 he came up to Chicago. and, In 1871, G & «d the Cook County Hank, which be %' atfons in August of that year, InMayof 1e sold out that institution te B. F, Alien, #vu bought into the State Savings, whichwas thensupposia to be In a fair condition. Last year he married a nicce of Dr. Smith, who Lecame nasoctated with bim in the bank as Vice. President, and since that time he has been Jiv- Ing at his fine residence on the corner of Prairic and Egan avenues, . NOT 70 BE FOUND. The New York representative of Tam Trise TXE recelved telegraphic dircctions yesterday afternoon to hunt up Mr. Spencer and interview hitn as to the causcaof the failureand his at- tempted ‘negotiations with New York banks. His report Is that, after & search of all the ho- tels and other places of public resort, he bas not been able to find him, There is no trace of bim In the city. that, by bad management, the depositors might not zet over 65 or 70, These figures were bared on the cxamination Preetdent Spencer permitted to be made, the gentlemen being thore to whom he had apnlied for assfestance. they being anzlous to know the real candition of the bank. UP TO SATURDAY. HOWEYER, THE BOTION FACTS WERE NOT KNOWX, An expert bookkeeper had not been allowed to make an Investization or to examine fta paper. No achedule had heen made of its assets. No exhibit of a real and satisfactory character had been made known, this upinion as to 73 or §0 per cent, more or less, being based upon Mr. fpencer's own assurances to bankers. Ile satd he had 81,000,000 of what he considerrd to be tood paper, and which ought to eell for its tace; that nesriy all the morteages bore 8 and 10 per cent {nterest, and that the Interest and Inetallments were protty promptly paid. And then therc was nnother $1,000,000 of slow paper,~the class described aboye, where the property had efther been forfeited fo the bank or the Interest was not being wakl, Then there was another $1.000,000 of albkinds of miscellancous paper that would realize more orless—n pood'deal of It less. This, too, stter wintog out the capital stock. The obligations of the bank, according to Mr. Bpencer, were Iu the neighbood of £3,000,000. WIUAT HE WANTED THE CHICAGO DANKS TO DO was Lo Joan him 500,000 on such secusities ashe could alford to let them have, saying that, with the credit hie would receive from such loan, ha ONCE INDICTED. Fipectal Dispateh 1o Tre Tritwme, ELKNORY, Wie., Aug. 28.~The news of tho fallure of the Btate Sasvings Bank was not re- expected o geb between 800,000 ond | celved with much surprise, since it was knowne 200,000 more in New York. And. ko | that Mr. D. D), Bpevcer was head ¢f that {nsti- thought with thesc £000,000 or £500,000 in money he could restore tho credit of the State in publlc confidence, stop the rin, bring back its deposits, and pass the dead centre. Dut the bankers who had looked Into the matter were afrald that Mr, 8pencer could not do this —that confidence in thie bank bad been so im- paired and undermincd by what had leaked out, and what was stated fn reports ond rumors sing about, that esen If ho ot the $600,000 or #800,000 1t would go just as the other £200,000 or $000,000 had gone since July 1, and that he would not have, when it was cxhausted, any first-clags paper {0 sufficiens quantity upon which to negotlate new loans, It seemed to bo the opinion of some that, with the ssalstance he was trying to obtaln, the State would - succumb about the 1st of January any wayand they thought it would be better tn let the bank pass into the hands of a Recelver, that this course should be adupted now rather than fn thedead of winter, since theinjury anddis- appointment Lo depositors would begreaterthen than now, aud that It wonid be more difiicalt to realtze on the assets in the middle of winter— the dead -scason—than in the fall when the crops were moving, business wes good, moncy plenty,and also in view of the rospect of a @rowth of contidence {n tha value of real catate. THE DIVIDEXD that the bank can pay to the depositors depends entlrely upon how much cau be reallzed out of the mass of real estate which it holds as securi- 1y for loans or has acquired by arrangement. Whetnier the bauk bas Leen managed with strict honesty and tidelity or only imprudently —uot strongly and wiscly—can only be found out when the Assignce makes an Investigation snd statement for the benefit of the creditors, a8 Mr, Spencer kept its affalrs so closely within his personal knowledge that few it any outside of the closest funer circle of the bank know really anytblog about the details of its business. JUDGE BECKWITII, A ATATEMENT 18 TO COME. Last night areporterof Tnr Trinvxe, un- derstauding that Judge Beckwith had prepared’ & statcment of the nsscts aud Mabllcs of the _bank, with some ideas of the real value of the sccurities, for, publication In the press, started for his home nt about 11:30 o'clock. The Judge resides at 73 Rush strect. At the hour men- tioned everybody iIn the vicinity bad retired, and Judge Beckwith's family was, no exception. The bel! was pulled vigorously, and thery soon apoearcd a dimfoutive candlo in a candlestick, behind which was entrenched o very civil and accominodating female servant, ‘*Is Judge Beckwith at home!” queried ‘the reporter. *Ue s, sir; but he's retired In," Bt I must soc him. ~ Please hand him this card.” . The girl took the card and the eandlestick up-stairs, having first Invited the reporter in and lighted tho gas. The followlng conversa- tion took place above the Innding: Bervant—Judge, there's a man down-stairs a8 wants to sec you. Judgo Beckwith—Who is he? ‘The glrl repeated the'namo on the card, *1 belleve Lio's 8 TR1BUNE reporther.” That settled it. The Judge walked out fm- medlately, and down the landing- he came, clad fohisrobe do nult. e sat himeelf on the lowerstep, aud the reporter leancd himsell against the hat-rack. “1 am sorry to disturb you at this unseasona- “ble hour,” said the roporter, * but £ nuderstood that you had prepared o condensed stutcinent for tho press.' T have prepared no statement, but [ told Dr. Bmlth that I would prepare one, and slall probably do so to-morrow (to-day). looked over the books with Cal. Taylor. Tha liabilitles are about 83,000,000, and the mssels represent abont thejsame amount on thelr face; out as to their real value we have not yet made an estimnte,' “Then you conslder the failure a bud onel" “1am afrald ol it, for the effect it will Luve, Nearly all the money {u New England Is In suv- ings banks, aud L am afrald the effect will go »s 1ar East as that. You sce this s one of the old- ost savings institutions, and one of tha largest o the country, When Col. Tavlor came n I had him telegraph East to all the bank's corre- tation. The uld reslilents of this plase remem~ ber Mr. 8pencer very well. - He came here trom * the East about 1853, snd went into husiness. , After asiort timo he became connected wittsd the Elkhorn. Bank, sad was fta Cashier up to ' 1857, when it falled. There was sereat outcry and I8 was chareed that Spencer,. knowing It was golng under, had embezzled thoe funds of the concern, At the May term of the- Walrorth County Court, In 1854, an indictment. was found by the Grand Jurs charging him with. having, while Cashier of the bank, tsken, on the 33 of Uctober, 1857, £4,400 In bank notes« and gold and silver belonging to the bank, andt with having taken, on the 10th of September, 87,000, also helonging to the bank. Spenere subsequently went East and succeeded in rala- Ing, through bis father, moncy enough to pay. off all his debts, whicl, it is roported, rutned® the old gentleman. Finally along in 1873, the indfctment was nol proseed, owing of coure to the fact that he had settled with his creditors. THE SITUATION. 01X C. mAINES, A reporter called on Jobn C. [Inines, the Preeident of the Fldelity, last eventog, to ges his views regarding the effect of the suspension. Hemaid: ‘T believe the frritation since tha midale of July among the depositors In savings-banks, and thelr desire to draw thelr moncy, was occas sloned largely by the distrust. that existed in the minds of the community as to the solvency of the Btate, and particularly as to the integrity of its President, Mr. Bpencer. Had’ it not bacn for theso doubts and suspiclons that surronnded him and his character, wo would have hed no trouble hero whatever. There would have been no run, and the excitee ment would have died out., Now, that the bubble Is broken, and the true {nwardncss of the thing has become known, the suspension ought nut to affect serfously the other savings Dbanks." > “ The other banks are not {ntereated a dollar, I understandt " . “ThatIstrne. No savings bank in the clty bad any connection with the State, dircct ot remote.” *“Then its losses will not affect them In tho leasti? “No. Thelr capital s not Impalred atalt, and thera s no cauge for ularm as o their sale vener. The Fidellty will open its doors tor buainess fn thic mornfog, ana the others will da the asme.” = Another gentleman with whom the reportes conversed stated that Mr. Halnes had known of the weakness of -the State, and fearine the ree sults of o failure bad beon guietly making prop-: . arations for a rup, if thero wastoboone. Ho has made nobad fnvestinents, and s sald to " have $300,000 fu Lis vaults ready to be deak out should it be called for. SYDNET MYRLS, A reporter also called on Sydncy Myers, of the Merchants’, Farmers' and Mechanics’ Savw. Ings Bank. The gentleman was found atten- tively lstening to tho reading of a late novel, and by no means did ho scem to be perturhey, Tho scribe, upon making his business known, diverted tho gentleman's attention {namoment, and secured su (ntervicw which nuuy throw soine light upon his expectations. IHe bhad heanl, ba eald, & strect rumor, that the State Savinge Bawk was {n trouble, but he did not believe it. * But," added the reporter, * the {nstitutioe liaa ninde on assignment, sud will not apen to- morrow.' I don’t bellevs It,"" was his response, * for I cannot concelve of any cause for it But, as a matter of fact, it has closed.” “Tlow can that bot The Prestdent ix nway,”* The rcporter was oot authorized to cxplaln, but ventured tho query as Lo what effect the closing of the State Savings would have un his bank. Il responso wad, **Nune whatever, My deposits for several duvs, notwithstanding the street ruuiors, have been greater thau the dralts.” *Uut, supposing that the State Savings ha closed, and, as {neldental (hereto, & run should Lo made on your lnstitution, what theni” s *Well, I have been In business fifteen years, have a perpetual charter, and am doiug u sale bustaers.” . ¢ Could you pay all demanda!* spondents, iucluding the Chemical Bank “ I would not answer that dircct, but I am of New York, ‘informing them of the | safein any cmergency, Iwas ralsed a sallor, essigument, 0 that the money thero | and in storms atl wo bave todo is to trim our would not be attached. Tha bank, I find, has about $10,000 fn London, placed there iu order to pay forcign drafts, which .is & business sav- luge banks genemlly seck, siuce the drafts stay out a groat whil don't belleve the bank has mado any mono. past two years, ag there was no demand’ losns.” Judge Beckwith explalned that tho Aseignso would st once be- eln to make out & statement and an estimato of the real value of the assets. Ile actually dreaded the result of the suspension, and the offect ft would have ou bLusinvss geucrally throughous tho country. SPENGCER. § A LITTLE BloGRAPAY. Mr. Bpencer, the ex-President of the bank, Is now 48 years old. s was bora ‘fa Herkimer Cauuty, New York, left home at 17, worked as a surveyor on the Eric Caual, aud afterwards on tho New York Centrul,avd finally, in 1885, camo West and settled at Elkhorn, Wis., where ho organized ths Elkhorn Baok. In 1857 bo was obliged to suspend business,~a suspension which was followed by sowe lewal complications which ere glven o u dispatch published below, . This led to a determination on Lis part (o leave Wisconsln for good, sud Lo went Eust for a while, cane back West, and setflod near Sycamoro, in, this Btate, whiero' be weut ato ths cominisslon business on & small scale, sending butter and cgge and other perlaliable articles on tothe Chicago wmarket. Ho made a littlo moncy in this, and about 1861 weut down to Morrls, and there, under the State law} orgaulzed the Grundy County Bank, which three years later ho reorganlied as & Natlonsl Baok under the Unlted States Banking act. l¢ sall accordingly.” “ Aud this Is ustorm 1" 1 do not anticipate any trouble.” w4 “But, ‘supposc & run should Le made an youl : “Well, I'sbould view the ‘situation and act accordingly.”” ) # Would you take advantage of the slxty-day proviso with sepositors Pt ’ “1 shuuld pay the claims of the peally ncedy, or enongh to satlsfy thewm,” ** Well, what shall 1 suy gonernlly, as repre- sentlog your conduct In the event of & run being madu ou your hauk* ... 8 . “Yoncunsuy that I have bed sufclent ex- perience to kuow my business; and that uo one uoed anticipate auy troubly, Iregard the out- look very much ss the old sallor does the com- ing of & squall, 'L stwll whn iy, dails to sujy the wind, and in avy evens ¥ do ‘mot anticipate disaster, My loans Liavo boen * carefully madc, and on short thue, and all will ba right.” SPENCER'S DNPOFULAKITY, It scoms that the baukers of the city had no sympatby for Mr, Soeucer persoually, e had always held his bead presty high,—kept aloof from the other bauks,—and tuey had no dealings: with him. Wheu be spplicd to thewn for ald, they were disposed to belp him ouly ou oue ground, gnd that wes to avold a Tun on their own {nstifuliovs, ae ‘vue was prob- able it Lo wers vonipullod to lay down. It is sald tbat even Dr, Swlib, the Vice-Pregident of the bank, did not know as much about Speacer a4 other people claimed to knouw, sud that the Doctor was sctinzin good faith ail the while tho negotiations for asulsfance wers going on. He, however, it is understood, beard thinge sbout ihe FPresident which couvinced blm \hat B was uwicless W0 mkmpt @