CHICAGO BANKER
A Weekly Paper Devoted to the Banking and Financial Interests of the Middle West
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partaient or require a deposit of $100,000 as is provided for life insurance companies.
The question of limiting the company to insurance of bank deposits bearing 3 per cent interest, the same rate allowed under the state law, will not come up at this time. This is purely a question of administration and not one that involves the company’s right to do business in the state. If the insurance superintendent admits the
company and later holds that it cannot insure deposits bearing more than 3 per cent interest, there will be no need of a special session of the legislature.
Governor Stubbs threatened to call a session to limit the surety company’s business until the attorney-general found that the insurance superintendent had the authority to do it.
V
Columbia Heights (P. O. Washington), D. C. —Percival Brown, Watson J. Newton, A. W. Fall and William H. Saunders are interested in the new Park Savings Bank organizing here with a capital of $50,000.
Jesse B. Wilson resigned as president of the Lincoln National of Washington, D. C.
Entered as Second-Class Matter January 15, 1903, at the Post Office at Chicago, Illinois, under Act of March 3, 1879
what it cost for repairs prior to the time the receiver took charge of the property.
Bankers Ask for a Charter
Topeka, July 27.—The Kansas Bank Deposit Surety Company, the organization of bankers to guarantee deposits in banks, filed its papers with the state insurance commissioner to-day. The legal questions involved have all been sent to the attorney-general for settlement and the examination of the company’s affairs is being made by the insurance department to-day.
The chief question involved in the admission of the company to do business in Kansas is the amount of its deposit with the insurance department. The company has an authorized capital of J4 million dollars and more than $300,000 has been paid in. The question is whether the insurance department will require the company to deposit the full amount of its capital with the de-
JULY 31, 1909
Charges of improper accounting of the affairs of the Globe Savings Bank are made against the receiver, the Chicago Title and Trust Company, by Charles W. Spalding, former president of the defunct institution, in a formal document filed with the circuit court. The allegations are made that dividends have been improperly apportioned and that other irregularities have been frequent in the administration of the receivership.
Spalding sets out that about Dec. 3, 1908, he presented a petition to the receiver in which he charged that, according to its own reports, the receiver had paid out as dividends $16,000 more than could have been paid in pursuance of any order of court, and that while it had later charged itself with approximately $8,000 of this amount, “vet, according to its own accounting, there still appears to be $8,000 in its hands unaccounted for, but which the receiver has falsely taken credit for as moneys disbursed in the payment of dividends.”
In the sixth report, he complains, the receiver admits this charge to the extent of $4,882.81, and adds said amount to the balance which it had previously reported in its hands.
Spalding points out that he told the receiver the reports failed to comply with the requirements of the law and that the balances carried forward to subsequent reports were untrue, the result of a false accounting and such as cannot be explained as consistent with good faith. These matters, he sets up, have become material in determining whether the balance in the receiver’s hands is truly stated in the sixth report or whether the balance is one obtained by a false accounting.
“The defendant further shows the court,” Spalding’s bill reads, “that though the receiver’s claims in its report to have paid out in dividends $232,998.39, yet there is no proof of record of claims allowed by the court, or the amount thereof, or who the claimants are, excepting for claims amounting to not exceeding $5,000; that there is an order of this court of Aug. 6, 1897, a reference to a list of claims filed by said receiver on July 23, 1897; and in said order the court directs that said claims shall be considered allowed, except such as may be objected to within forty-five days; but the said list disappeared from the files at the time or within a day or two of the date of filing of the receiver’s first report, and cannot now be found by this defendant.”
He sets out that from April 5, 1897, to Aug. 7, 1908, the average balance kept in the hands of the receiver was $35,000, while $10,000 would have been amply sufficient for the purposes of the receivership honestly and properly administered. He asks that the receiver be compelled to pay interest at 5 per cent of at least $25,000 during his period, which will amount to over $14,654.
The report, he says, shows that $16,064 was expended for repairs on buildings, which are not specified. He says that the rents collected amounted to $59,852.48, and which, he says, shows a most unusual ratio between the amount of rents and the cost of repairs and is greatly in excess of
Finest Banking Room on the Coast
New home of the OLD NATIONAL of Spokane in their magnificent building shown on another page
Serious Charges Against Chicago Title & Trust Co.