Los Angeles herald., 1890-12-19
IN FINANCIAL STRAITS.
A BIG PRIVATE BANK IN CHICAGO
CLOSES DOORS.
The Proprietor and Cashier Arrested for
Receiving Deposits After the Bank
Was Insolvent-W. c. T. q. Funds
Involved.

CHICAGO, Dec. 1S.-S. A. Kean, doing
a banking business under the name OF
s. A. Kean x Co., assigned this morn
ing, as arranged for last night. Mr..
Fennell, attorney for the bankers, says
the failure is the result of steady drain
on the finances of the institution for the
past two weeks. Reports detrimental
to the bank were circulated. resulting in
the withdrawal of over 5000, 900 within
that time. While there were plenty
of securities in the bank, they were not
marketable under the present monetary
conditions, without sacrificing them.
The attorney says the assets are ample
to pay the liabilities in full. 1t is ex-
pected that statemento of the assets and
liabilities will be made tomorrow.
1t is learned that the deposits amount
to $3.50, 900. Most of the depositors are
well-to-do people who will not suffer
severely through their losses. Very few
poor people did business with the bank.
This afternoon warrants were taken out
for the arrest of Mr.. Kean and his
cashier, George B. Warne, for receiving
money when the bank was known to be
insolvent. Arrangements are being
made to reorganize the concern as a
national bank.
An investigation OF the affairs of the
institution was begun before Judge
Scales this afternoon. According to the
replies made by Assignee Jacobs, the
assets, exclusive OF Kean's personal
estate, would aggregate approximately
81 1853, 900, and the liabilities 81 400, 900.
The assets consist of land, scrip and
various municipal and other bonds, cash
on hand ($57 ,000), etc. OF the liabili-
ties half million is due depositors, and
$500, 900 due banks on bonds deposited
for loans.
Assignee Jacobs is a close friend of
Kean. He said last Saturday Kean
came to him and told him the deposits
were going very fast, and he would like
affairs of the bank and tell him what to
do. Over a quarter of a million had
been drawn out within ten days. Kean
said some one had circulated reports
that the bank was unsound, and rush
to withdraw deposits followed A
meeting of bankers was held Yesterday
afternoon and they decided to loan
Kean $4,000, if he could get $50 900
more. They wanted guarantee for the
| $70,0 900 however. Kean and Jacobs Sc
cured promise Of aid from Fowler, the
| packer, and William Deering, the har-
vester manufacturer, but could get no
one else. Then they were informed that
an attachment had been filed against
the bank by one of the creditors, and
decided to assign.
The warrants for the arrest OF Kean
and his cashier were served this after
noon. Both were soon released on bail.
Considerable interest has been aroused
by the report that the building commit
tee of the National Womens' Christian
Temperance Union had been a depositor
at the bank. The w. G. T. u. is erect
ing magnificent temple in Chicago,
work on which has been under way but
a short time.
MILL AGENTS ASSIGN.
PROVIDENCE, R. l., Dec. 1S.-Owen
Bros, agents of the Atlantic mills, have
assigned. The liabilities are large. The
mills will continue running under the
management of Stephen O. Metcalf.
The assignee refuses to give any figures,
but the failure is a serious one. The
cause is the stringency in the money
market.
BosToN, Dec. lS.-The managers OF
the Atlantic mills state that the mills
are not affected by the failure of Owen
Bros, and the latter's liabilities arc
81 ,000,0 900.
| WHOLESALE HOUSE FAILS.
NASHVILLE, Tenn, Dec. 18.-McGe-
hers & Co., of Rome, Ca, wholesale
grocers and cotton factors, have assigned.
Liabilities, $3.50, 0,O00 assets, about the
same.
AN INSURANCE COMPANY INVOLVED.
| KANSAS Cry, Dec. 18.-Suit was
brought today by Clements & Conrad
asking that the Phoenix Insurance com.
pany be placed in the hands of a re-
ceiver. The company was organized q
year ago with large capital, but the
State Insurance commission refused it a
license. The petitioners asserted that
favored directors and stockholders were
given back their money, and that others
! had been unable to get an accounting.