New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-10
WORLDS FAIR PEOPLE HIT.
4 CHICAGO NATIONAL BANK AND IT'S
BRANCH AT JACKSON PARK CLOSED.
MORE THAN 3. 800 900 TIED TP-BELIEF THAT
1HE DEPCSlTORS WILL BE PAID-ALLEGA
TIONS OF BAD MNNAGEMENT-DIS-
Chalmers rY EXPOSITION

TBY TELEGRAPH TO THE TRIBUNE.l

OFFICIALS. /
[pY TELEGRAPH TIE TRrBuSEl
Chicago May 0-Bank Examiner SturGis has
taken charge of the Chemical National Bank of
this city and has closed lis doors The Chemical
has Il capital of 81 100000 and deposits amount
ing to about 81 100000 The entire amount tied
up by the failure approNimntes $2,500,O0o. De-
positors will lose nothing, though the capital Will
probably bc nearly wiped out. The Worlds Far
branch of the Chemical National. established at
Jackson Park by the authority of Il special act OF
Congress- has also been obliged to suspend, thereby
locking up 81 900 deposited since May |. In
the absence of instructions from Controller Eckels.
Bank Examiner Sturgis held that the branch must
be- treated as part OF III" main bank. though ar
rangcncnt had been made to establish il on an IN
dependent basis, and to secure depositorS by
,ncrioI dcposit of SIOO.0 600 with the Equitable
Trust Company. The Controller asked by
telegraph for a ruling under which it was hoped
that the Worlds Fair branch might continue IN
business - as to enable dcpositors to draw their
money: hut il looks though they may have to
take chances with other d"po-itors.
Abont 100 accounts k"pt at the Chemical
none of them. however. are notably large. 50 that
no serious general embarrassment will result from
the failure though the tying up Of e? ,5o0 600 for
an indefinite reriod Is certain to Inconvenience
many persons.
We paid out $500 GOO yesterday ami S?1o,-
600 Saturday. said President Curry. in eNpla-
nation. and the drain was greater than the
bank could stand We simply ran ont Of cash,
and failing to secure assistance from other banks,
had to clos, our door> We accor lingly rotfcl
Iauk Examiner Stureis last evening, and he tool:
possession of our offices. The run yesterday was
entirely unexpected and seems 70 have been quit
accidental" When asked if he felt that IN"
Chemical has cause of grcvanc" against other
banks for the stand they took in Tn" matter Mr.
Curry answered that he would not lil" TO say
that. bnt he added Some Of the banks took
mighty good care 10 protect themselves.
The capital stock Of ia" bank Is -ail TO bc
held by 200 or 800 prisons in this community.
but largely scattered in small amounts. When
asked who the PRINCIPAL stockholders were Pr"Ni-
donr Curry ia reported 10 have sad Il DO not
know"
Rank Examiner Sturgis said tonight that II
would be- some days hcfor" statement would
{ h. ready Nv investigation 50 far. j." con
t,nued doe. not lead me to bclcv" that the
failure j. bad one and il i likely that IN"
d.po,tor~ will be secured The suspension WAS
caused hy loans which II WIS found nara 10
.ollrci | do got think there - the slightest
/ dishonesty IN the whole matter IL Is onr "'
,h ,,i.tor,une- of banking, and j. due to
error. in Judgment more than anything cl'r.
Amonc banking men III" suspension caused III
u. ,,,rtcmcnt The Chemical National was NOT
a member Of the Clearing House and Tor t"e l'''
| .ix months II has been regarded as rather Hh'hS
I N,tr OF the other hanks were mV"'No" !" wv
! failure several hnancicrs said ia" principal
| ,,oublc wa, the assumption 10y the bank "i all III"
| h,sinc.s of IN. old Chomical Trust and Savings
plnu
III ,b. business of the Chemical National hal
| L.on conducted IN manner satisfactory 10 III"
,,hcr hanks they would not hav" allowed IT 10
.usn.nd~ .nid Lyman j. sag" president of the
| rir., National Bank. and chairman of the clear
| ing House Committee. in An lnrrVl"" '"-"'N'
Their methods were not quit" snch as 10 inspr"
| con6donce | think the failure may b" properly
,.c-ih.d 70 lack of proper business management.
T,;r,.s were run in rather loose. iniudicoils way
Tb., did not seem 70 know the difference between
| cood md had paper Nr Curry, th" president, al
NOT s.cm to he quite mp Chicago iinanri"rinQ ana
| ,vas IN a LITTLE. above his depth In" starting OF
,he Worlds Fair branch was an unwi-" act
Ten Thousand dollars paid 10 IN" 'ENpoSitioh
au,horlti.-, for the concession, and S?ooo" more
must have been expended in fitting mp the ofNo~'
There yyns little profit 10 be- made in the enter
prise, anyway w -,
The real object of the World $
Mir branch seems 10 have been to gathef
in tho deposits of the receipts from gaze
nancy among the sidc-show managers in IN" Md
| way Paisancc. There was some it'll" Hurry 10
d,v in that region when the announcement OF the
| failure made.
side. by side with the statement Of Nr. Gage
shonld be- nut that Of President llignbotham. VINO
! in the same newspaper is reported to nav" sal"
Our position is lust this We have lndors''
,h.. hank only in 50 far as any person might in
dors. any national banking institution IN the
country. II was "A legally organized corporation
updcr the banking laws of III" United states.
.,,cr,bl. to all the rules and regulations of the
X,tiunoI Government. As far a. the Council OF
administration Is concerned. II j. my ,~rSohai
orinion that il j. not and cannot be h"ld rrsp9n-
siblc for any liabilities arising from the Dahk
embarrassment | am cndcavorng to get "a,
Council together that the matter can be dls-
President Palmer of the National Commission,
,idirnlcd the stony that il being circulated tn
thc oIccr that the Commission can IN any way De-
held responsible The Commission. he said. had
"o, onIv rot indor.od the bank, but knew nothing
about IT, IL was entirely out of the Commission :
jurisdiction. 49, -. -, .;
Az the meeting Of the Worlds Fair Commission
today thrrc was con.idcrabl' discussion OF t,'
buuk failure Commissioner Cannon. oi Okla
boma. offered the following resolutions. whlcI
caused much confusion. AZ II was hot nNp'c,''
tl,t rho matter would he brought M III III" meet
ing.
yIorco. II has come % notice that the bank To-
Gated In this Administration building has closed lt'
doors. and
VIII, rcas It, closing has caused much distress on th'
mart o, IL, deroiors especially among foreign eNh irS
rho are not f,pilar language and customs anc
| IN. mean, Of obtaining for immediate use "hich
lenders iLi. situation particularly distressing, ana
whereas this body fuil charge o all III
,ercour, with representatives. and exhibitors from for
,cn u,ti,ns and looks TO for their protection; now
therefore, -,
| Resolved That q committee Of SIX be appointed by th'
Chair TO investigate. far a. may be- The anal o sac
.,t ,nd tetort commission a. % the aivisaDltl
NJ tlnr sad bus IS upon the grouni
, | Of the Exposition
Several dissenting voices were heard TO the
, ! ,n.ct that tin. Commission had no right to in
vr-tiratc the affairs OF the bank, but an equal
| u..iiiN. thut the Cnmmlssnu La