Fidelity Savings Bank (Chicago, IL)

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THE FIDELITY, THE RUN UPOS IT TESTEUDAY. The panic among the depositors of the Fidelity Savings Bank continued yesterday, and the run was' continuous throughout the day. At an early hour the crowd began to gather In the viciulty of the bank, on Randolph street, and by 10 o'clock. when the doors of the bank were thrown open, there was a line reaching around the corner of LaSalle street. On the street, In front of the bank, quite a crowd had gathered, and some curiosity-seekers were looking Intently through the barred windows. The venerable Mr. McAuley, the paying-teller, opened his window promptly on time, and the paying commenced. The routine was the same as on the previous day. The needy got all they desired, and all obtained what they were entitled to under the rules of the institution and contracts with the depositors. While the run seemed heavy. the deposits were not a few. There are plenty who have faith In the integrity of the officers of the bank, and they propose to stand by them. Thus far, since Monday, but two notices of proposals to close accounts have been received, and the two together amount to only $200. In justice to the bank officers it

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THE RUN

AT THE FIDELITY. There was a considerable let-up in the run upon the Fidelity Savings Bank yesterday. The crowd that gathered in the morning was not nearly so large by one-half as on the previous day, and there was less of apparent anxiety. By afternoon the crowd had so far diminished as to enable all to get lu line Juside the bank, and there were but few on the street at any time. A fair estimate would not place over seventy-five persons in line at any one time. The fact is, the depositors are commencing to find out that the Fidelity is safe. Mr. John C. Halues, the President, has lived in Chicago about forty-three years. His children were born and have grown up here, and lie has everything at stake. At the Directors' meeting, Thursday night, Mr. Haines pledged all his private property for the benefit of the depositors, If it was necessary. The excitement of the past few days has worn upon Mr. Haines, but be has kept remarkably cool under the ordeal. lle spoke rather feelingly to THE TRINUND reporter yesterday, and sald that he had lived In Chicago between fortv and furty-three years. lle had reared his children here, and no one could ever point a finger to any dishonest act of his. His property and means were pledged ito the depositors, and he would stand by them. The bank was perfectly safe and secure. It had not been tampered with, and he would never steal one dollar. Mr. Haines felt confident of the result. One thing above all others is in the bank's favor: It has paid no fancy salaries, and no one is paid except for actual services rendered. The assets, so far, are more than ample. The cash on hand is sufficient to withstand considerable of a run. The diminution in the run upon the bank shows that the depositors are commencing to feel that their money is safe. There can be no doubt as to the safety of the Fldelity, but no bank, with Its deposits invested mainly in mortgage accurities, could turn its assets into cash with advantage at very short notice. Many of those who came yesterday to draw out a portion of their money were given more than they called for. All went away satisfied and pleased after leaving McAuley, who had a good word for every depositor, The crowd was remarkably devoid of lucidents, and it was quiet and orderly, without the least ripple of x itement. It is probable that, now that the depositors have discovered that the bank is perfectly solvent. the run upon it will cease entirely to-day. The deposits yesterday were considerable, and two new accounts were opened, which shows the faith felt in the institution. AROUND THE MERCHANTS', FARMERS' & MECHANICS Savings Bank the utmost quiet provailed yesterday. The demand for money was less than it had been for several days, and scarcely equal to occasions when there was no excitement among savings depositor. The rule of the past few days was observed with all applicants, and they appeared to be satisfied. The effect upon the bank so far has not been really felt. About $0,000 has been paid out, while as much line been received on deposit. The amount which the bank has been notified would be called for at the expiration of sixty days does not exceed $5,000. Mr. Mvers does uot anticipate anything in the future outside of routine business, and is satisfied that the scare is over.

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LARNED'S SUGGESTION

To the Editor of The Tribune. CHICAGO, Sept. 1.-Is it not fitting that the Fidelity Savings Bank should propose to its depositors that a committee of business men should be appointed to examine its condition and make 2 report in respect to it? If it be, as claimed, safe and reliable, and with ample resources to meet all its liabilities, such an investigation and report would establish that as a fact to the satisfaction of the public; the run would cease, and the bank have a firmer position than before in the public confidence. But, in view of the abstraction by bank officers heretofore regarded as men of integrity of very large sums of money from the assets of the State Savings Bank, should not the depositors of the Fidelity demand forthwith that the "mouey be counted," that the securities be investigated, and that the real condition of the bank be ascertained definitely and bevond all doubt? The assurances of bank officers about the safety of the bank are of no value whatever. Their very position makes it impossible for them to make any other statements. 1t seems to me that all savings banks should have their affairs investigated very frequently by impartial persons appointed by law for the purpose, and without this there can never be any certainty as to their condition. But as the law makes no provision for this, and the state of things disclosed in the recent investigations of the assets of the State Savings is such as to occasion doubt and distrust iu the public mind, and the Fidelity is not paying out to its depositors their balances but doling out small sums, and inviting them to leave the rest with the bank, upon its assurance that the bank is perfectly safe, that it is the duty of that bank to invite investigation into its affairs; and to have the people whose money it seeks to retain satisfied of its solvency, and that nothing less than this ought to content its depositors. Such a course is reasonable and just. and there is no valid objection to it if the condition of that bank is such as to bear the investigation. The ígnorance not only of the depositors in all State Savings, but even of the greater portion of the officers of the bank, as to the true state of its affairs, have enabled a gross fraud to be perpetrated upon its depositors. Is not any savings bank which is not paying on demand and requiring its depositors to grant time of payment, bound in all fairness to invito a full and searching investigation of its affairs? E. C. LARNED.

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THE RUN

IT IS PLAYED OUT. When the Fidelity opened its doors yesterday morning, the crowd waiting for admittance was not very large. The fact is, the run has speut itself, and the panic among the depositors is over. At no time were there over forty persons in the line of those desiring to draw out their money yesterday. All that came got all they wanted or expected, and none went away dissatisfied. The depositors have become satisfied :hat the bank IS safe and in good hands. The Fidelity Directors are determined to stand Lv it, and no depositor can possibly Jose a cent under the present management. The assets, of course, could not be turned into cash at a moment's notice. The bank was kept open from 6 10 S o' lock in the evening, and all who desired could draw out their money. The deposits unu-ually large. even for ordinary times, and many new accounts were opened, including one with over $1,000, another with $557.73. and another for $500. There were also quite a numher of immor accounts. Everything passed on swimmingly, and by to-morrow morning it will hardly be apparent that a run ever occurred on the Fidelitv. At a meeting of the Board of Directors of the Fidelity Savings Bank yesterdav, it was determined to reduce the rate of interest from 6 to per cent after October. At 6 per cent the Lank has not been making any money on deposits lately, and it is proposed hereafter to keep a portion of the assets in securities that shall be immediately convertible into cash. Several National Bank Presidents happened in yesterday and offere.1 aid if necessary, but were told it was not needed. At the Merchants', Farmers' & Mechanics' Bank there was little or no excitement, and all passed off as on ordinary days. But few came to withdraw their money, and the depositors were not a few. In the morning a delegation of depositors of the State Savings Institution wasted upon Mr. Myers and asked him to talk at the Tabernacle meeting, and he accepted the invitation.

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ANOTHER CHICAGO BANK

The Fidelity Savings Bank Closes its doors. National Associated Press to the Star. CHICAGO, Sept. 24.-The Fidelity Savings Bank closed its doors to-day. Proceedings for a receiver were instituted in the Superior Court.

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Another Savings Bank Failed

CHICAGO, Sept. 24.-The Fidelity Savings Bank has closed its doors; proceedings for the appointment of a receiver have been instituted in the Supreme Court.

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Illinois

THE TROUBLES OF A CHICAGO SAVINGS BANK. CHICAGO, September 24.-The Fidelity Savings Bank closed its doors to-day. Notice was posted on the doors stating that an injunction having been served a receiver will be applied for the bank, and it will be closed to await the action of court. BANK OFFICERS INDICTED FOR EMBEZZLEMENT. CHICAGO, September 24.-Tbe grand jury have indicted Spencer, Guild, and Buckley, officers of the State Savings Bank, for the embezzlement of $700,000. None of them are in the city, nor are their whereabouts known.

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THE FIDELITY SAVINGS BANK

would have cried, who are now trying to find out of how much they have been robbed. But it is just such blind confidence in a manage- ment that breeds scoundrels. The best of men, because they are strongly trusted, are strongly tempted, and stand in the greater need of that moral defence which constant watchfulness and publicity only can give. How serious this blow will prove to business interests, it is difficult to say. Apparently, Mr. Morton had borrowed over $1,000,000, using fraudulent certificates as security. No doubt other large sums had been borrowed upon the genuine stock, which was held worth over $1,000,000 on the very morning of the exposure, and which nobody could sell at any price that night. These large loans, for which the security has suddenly vanished, may cause some trouble. But the worst effect will be the grave distrust which must be pro- duced where Mr. Morton was held so high. Destruction of confidence, at a time when confidence is peculiarly needed, involves more than the loss of one or two millions. The event will bear good fruit, however, if it teaches men in positions of trust to beware of gambling in stocks. Like many others, it seems, Mr. Morton had faith in the coal roads, and lost largely in Philadelphia and Reading, and his earliest fraud was prompted by over- whelming losses on that stock. We shall have a better chance of financial recovery when it comes to be a rule rigidly observed by men intrusted with the care of the money of others, and rigidly enforced by stockholders, that no man in that position ought ever to indulge in speculation. This is not the first, nor by many will it be the last, of frauds arising from the same cause.

The fall of the Fidelity Savings Bank has not been wholly unexpected. Though it has made a long struggle, the persistency of the run upon it, which began after the failure of the State Savings Bank, clearly indicated a general impairment of confidence. The capital was only $200,000, but it had a surplus of $98,000 more in October last, and was espe- cially well known because of the activity of its President. Its fall is not likely to cause serious disturbance at Chicago, as it will hardly occasion surprise, but every such event tends immediately to increase the drain upon New- York banks, and; more broadly, to intensify the distrust and apprehension which make a revival of business so difficult.

The one thing unquestionably solid in our condition, is the enormous productivenesss of our industry. The great crops will not take to themselves wings, and vanish in a night. The yield of petroleum and of the precious metals does not cease, nor the foreign demand for our wheat and corn, cotton, provisions, and manufactured products. Faith that the country will finally recover, in spite of all its losses, is not ill-founded, for it is a faith in the great resources of the land, and in the en- terprise, invention and industry of the people. The recovery will be the more sure and steady when it comes, and will be the less liable to interruption from startling failures or shocking disclosures, for the removal of crippled firms, the closing of banks which have lost public confidence, and the exposure of men who have abused great trusts. Above all, it will be a more steady and sure recovery if the people first learn that the best of men need constant support and publicity in the management of fiduciary trusts, and that the corporation which closes its books to the public is presumably unsound.

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Fidelity SAVIDGS Bank-Receiver Appointed

CHICAGO, September 25.-Dr. V. A. Turpin, Was oppointed receiver for the Fidelity Savings Bank on a six hundred thousand dollar bond.

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CLOSED

THE FIDELITY SAVINGS BANK, CHICAGO, CLOSES ITS DOORS. A Chicago dispatch of the 24th says: "Another Chicago savings bank has closed its doors, and the prospects now are that it will suspend business entirely. About half-past 2 o'clock the following notice was hung near the main entrance to the Fidelity Savings bank, of which John C. Haines is president. It told a plain, yet somewhat abbreviated story :

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ILLINOIS

A ppointment. CHICAGO, September 25. In the Superior Court, Dr. V.A. Turpin was to-day appointed receiver of the Fidelity Savings Bank, with a bond of six hundred thousand dollars. The appointment meets the warmest approval.

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CHICAGO'S BANK FAILURE

THE FIDELITY SAVINGS BANK IN THE HANDS OF 4 RECEIVER. President Haines Putting All his Private Property In the Assets and Going Down with the Bank-The Fallure Unavoidable. CHICAGO, Sept. 25.-Long before 9 o'clock yesterday morning a great crowd filled the sidewalk in front of the Fidelity Savings Bank. There was manifested a stronger determination than ever among the depositors to have their rights, despite the operation of the swindling ten per cent. rule. The crowd increased constantly until about half past 9 o'clock, when one of the clerks hurried out of the safe-deposit department of the building. and, foreing his way through the crowd to the main door of the bank, tacked up the following notice, written upon a sheet of letter paper with the bank heading: Notice having been served that an injunction and receiver will be applied for before Judge Moore of the Supe. rior Court this morning, this bank will be closed to await the action of the court. No signature was appended to the notification. The crowd seemed to divine its meaning by inspiration, and immediately there was the greatest excitement. Many of the women burst into tears, and the men vented their anger in bitter curses. Not an officer of the bank could be found upon the premises. The only means of access was by the safe-deposit building. and the door of this was doubly guarded, the watchman having orders to admit no one, Assistant Superintendent of Police Dixon, a Lieutenant, and several offi ers were on the scene to prevent disorder. At 10 o'clock Mr. Wirt Dexter appeared in the Superior Court and moved the appointment of a receiver. The Judge took the matter under advisement until to-day, when he appointed Dr. V. A. Turpin with a bond of $600,000. The appointment meets with the warmest approval. especially of the depositors. Mr. R. P. Derrickson was said to be acquainted with the condition of the bank, and the following statement made to the SUN correspondent shows the state of things in brief. Said he: "About ten days ago several friends of mine, who are depositors at the bank. came to me and made inquiries about what they should do. I visited the bank for them. The officers assured me that the bank was solvent: but in the conversation Mr. J. C. Haines said they would like to borrow $250,000 on securities to tide over the present trouble. I promised to effect the loan went to several bankers, and from them got the promise of the loan. Having so informed Mr. Haines, he said he had concluded not to borrow. as the rush was over, and he could get along without. Last Saturday these same depositors applied to me again, saving that the rules of the bank had been changed to allow them only 10 per cent. of their deposits after the expiration of notice. I again went to the bank with Mr. Haines. I told Mr. Haines that such a course was not done in good faith. and was a confession of the bank's inability to pay up. Mr. Haines assured me that the bank was sound, and invited me to examine the bank and ascertain for myself. I agreed to do so, with the understanding that if I came to the conclusion that the bank was insolvent I could speak of it. I was engaged in the examination on Friday night. and left the bank fully convinced that it could not pull through. adid not speak of this to Mr. Haines until the next day (Saturday), and then told him he ought to close the doors. It was rather hard to make Mr. Haines or the others take this view of the condition of affairs. but finally they all coincided with me." Mr. Derrickson continued: Mr. Haines has put in all his private property among the assets of the bank nothing has been kept back. He goes down with the bank. The cause of the failure IS the shrinkage in securities." What are the liabilities and assets of the bank ?" At the time the run began on the savings bank the deposits at the Fidelity amounted to $2,000,000. Since then about $700,000 been drawn out, leaving a balance of $1,300,000. The number of depositors is 7,8002 But where are the assets "I scareely know, but from sixty to ninety per cent. will be realized. The gentleman declared itas his opinion that

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Illinois

BANK RECEIVER APPOINTED. CHICAGO, September 25.—Dr. V. A. Turpin has been appointed receiver of the Fidelity Savings Bank, with a $600,000 bond.

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TUESDAY MORNING, OCT. 2. ington printer, are associate d with ex-Congressman Lynch in the publication of his new paper. Gen. Grant received an address at Stratfordon-Avon enclosed in a box made from the wood of Shakespeare's famous mulberry tree. Mark Twain's "ocean tramp," the schoon Jonas Smith, about which SO much has been said, was recently picked up at sea and towed into a Southern port. Capt. Vogle, of the Dictator, who rescued the miserable craft, has already savel over 100 lives. Information has been received from Senator Morton that he expects to be in Washington Dy the first of December, and resume his seat in the Senate. His colleague, Senator McDonald, has generously offered to pair with him on all questions as soon as he arrives in Washington, so that will not be compelled to attend the sessions of the Senate unless he desires to do so. One of the new and curious objects of the Japanese capital is a gigantic image of a wo_ man, made of wood and plaster, and dedicated to Hachiman, the god of war. In height it measures fifty-four feet, the head alone, which is reached by a winding staircase in the interior of the figure, being capable of holding about twenty persons with comfort, A sword is held in the right hand and a huge ball in the left. Internally the hovelty consists of an extraordinary anatomical model. A fine view of the surrounding district is obtained by looking through one of the eyes, and the price of admission is only two cents. A new way of scaling down liabilities was urged upon Mr. Haines, of the exploded Fidelity Savings Bank of Chicago. Depositors were clamorous, the funds wouldn't hold out. A proposition was made[to him by a man to quietly take $100,000 of the bank's funds and use it to the purchase of bank books for the benefit of the institution. This would do good in two ways: The bank would be relieved to the extent of the discount on each book, and the value of the books would be gradually appreciated, S0 that perhaps the run might stop; that is, they would start in by offering, say, sixty cents on the dollar. Then there would be a little quiet competition, and the price would go up to seventy, eighty, ninety, and SO on until the depositors would refuse to sell, thinking that the institution was perfectly sound, and that they were simply being shaved by speculators.

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CHICAGO is a great place for Banks to collapse. The Fidelity Savings Bank is among the last lot to suspend, with liabilities of $4,000,000, and assets of $1,000,000 : number of depositors 17,000. Chicago seems to be able to bear up under any amount of destructive fires, and also under an indefinite number of insolvent Banks. Great place is Chicago.

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THE FIDELITY SAVINGS BANK

CHICAGO, 111., Oct. 29, 1877. Receiver Turpin filed his statement of the Fidenty Savings Bank this morning. It shows the liabilities to be $1,315,054 and assets $945,537.

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THE BANKS

ALL quier. A reporter visited all the suspended banks, National as well as savings, yesterday, but was hardly compensated In Information for the wear and tear of his constitution and shoo-leather. At the Third National, Mr. Watson was seen. He knew of nothing. No Receiver had yet been appointed. It seems, however, that telegrama have been received from Washington, stating that Huntington A. Jackson will be the successful one. Ills papers have not been made out, but they are expected here by Thursday. Regarding the Receiver of the Central, rumor bath It that Mr. Burley is the man. But he has no advices to that effect, nor could the roport be verified. As is known, he is now in charge of the bank. He has enough cash on hand to pay a dividend of 20 per cent at once. The creditors of both the Central and Third will, in time, certainly get 100 cents on the dollar. Absolutely nothing was obtainable at the savIngs banks,-that is, as to collections, dividends, etc. A female depositor dropped into the State about 1 o'clock and asked for "tho clerks." This a pretty bank." said the woman. " It is a smashed bank," rejoined the reporter. " Yes, remarked she, and I would like to get hold of some of them, wouldn't 1 smash 'em." "Them" was indefinite, 80 the reporter, not wishing to be mistaken for a bank employe, pointed out Judge Otis and Mr. Chamberlain, and withdrew. Both the gentlemen named were whole last night. There is a noticeable falling-off in the crowd at the Fidelity, though the drawing of the 10 per cent was pretty steady all day. Only a third of the depositors have thus far received what is due to them. Many, perhaps, do not yet know that the institution is in liquidation. Dr. Ward, of the Beehive, Was notified in the afternoon that the Committee appointed by the depositors will come to see him again this morning. These centlemen say they are after the fellows who hold their beads high, though they are deeply in debt, and they purpose exposing them to the community. One of the Committee, whom a reporter saw yesterday, said he didn't think any harm would be done by publishing the names of the bank's debtorsthat the money was due, and would have to be paid. W. S. Hinckley, Receiver of the Chicago SavIngra Institution & Trust Company, filed a petition yesterday setting out that among the assets of the bank are some office furniture, collectable debts, and Incumbered real estate. The debts ought to be collected and the other property sold, in his opinion, and Judge Moore gave him leave to do as he wished in the matter. John C. Winterbotham, one of the stockholders of the Fidelity Savings Bank, who has been sued by the Receiver of the bank to recover ou his statutory liability, filed his separate answer yesterday. No deals in glittering generalities, denying vaguely that he la under any moral or legal obligation to pay any of the debts of the corporation, and claiming that he was not one of the original stockholders, but purchased bis stock at the Instance of some parties connected with the management of the bank

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State, etc., etc. THE United States Senate, on the 10th, decided, by a vote of 85 to 28, that Charles H. Bell was entitled to a seat in that body by virtue of appointment of the Governor of New Hampshire. Mr. Bell was consequently sworn in to fill the vacancy from that State. THE Massachusetts House of Reprecentatives, on the 10th, rejected a bill to secure women the right to vote on municipal affairs in cities and towns. A bill to give women the right to vote for members of School Committees was passed. JOHN TAYLOR has been re-elected President of the Twelve Apostles and Trustee of the Mormon Church. No successor to Brigham Young, as President of the Church, has been elected. THE Fidelity Bank building, the Fidelity Safe Deposit Vaults and Hooley's Theater, property belonging to the defunct Fidelity Savings Bank of Chicago, were sold at auction, on the 10th, for the sum of $192,400. JOHN P. PHAIR, the Vermont murderer, who had been three times reprieved, was hanged, on the 10th, at the State Peniten tiary in Windsor. THE New Orleans authorities have determined to quarantine for twenty days all vessels arriving from ports in the West Indies, the Gulf of Mexico south of Texas, and South America, after the 1st of May, with the object of preventing the introduction of yellow fever. AT the rolling-mill in Cleveland, Ohio, on the 10th, a bar of iron being run through the rollers encircled a boy in its fantastic folds, and literally burned his body in two. SEVEN Indians attacked Serg't

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many here, as it refers to Kate Hanley, formerly well known here, and who was sent to the insane asylum from Omaha. Subsequently it was learned by Commissioner Corliss that she had about $2,000 on deposit in the Fidelity Savings Bank of Chicago. Mr. Corliss thereupon went to work and had Mr. Alex. McGavock appointed administrator in hopes of securing the per cent due the depositor from the bank, which had failed. The money was wanted to pay the expenses of patient at the insane hospital which would otherwise have to be paid by the county. The Chicago paper says:

"The receiver of the Fidelity savings bank, V. A. Turpin, filed a petition before Judge Gardner, asking the court whether or not he should pay $996.98 to Alexander McGavock. The circumstances leading up to this petition are: June 10, 1879, Mrs. E. L. Hanley, once of Chicago, deposited $2,256.46 in the Fidelity bank, and soon after entered a Nebraska insane asylum as a patient. Her bank book was destroyed, and she is hopelessly insane. On the application of her brother, Charles Hanley, a resident of Omaha, McGavock was appointed conservator on her deposits. The court ordered that the dividends be paid."