New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-12
fly TELEGRAPH TO THE TRIBUNE

fBY TELEGRAPH TO THE TRIBUNE
Chicago. May 1l.-Anothcr National Dahn cio>eu us
doors today-thc Columbia Natioh'" anu "''""u9"
the officers say they all right an" 'h"' NJ '"o''
~ get aid and resume in day or TWO j. oie h"o"'
,berc are many things the suspension that CIV"
rise 10 snspcion that IL is a bad laur" MOI great
so NJ surprjse WAS occasioned IN financial circles
,hen II became known that the bank had suspended
,or II had been looked upon with Suspicion Tor some
time and rumors had been III ciiruialoh Ior TWO
savs that The Columbia would follow the 'hemcai.
~ ,his mo,nng when President Dwgsns posted Il
,o,ice that the constant run for several days had
..rdcrcd If necessary TO close for the present for
A., nro,c,on Of all concerned most Of tie hnancicr,
,orc,v nodded knowingly. The bank had capital
clock of II 100000. and deposits apWoXimanhS
81 100000.
The Columbia organized In February, l7"i'
with the United states National As the fonhua'loh'
The United states began in 1857 with $4,000 capital
a. tho private Institution of George Wigs. the bucket
shop mall Later Zmri Dwiggn>. all Indiana County
banker came into the bank ana the capital was
increased to 100000. 1t never had deposits equal
IN the capital stock. and l. said to have been Il
failure when the idea conceived of rcorganilhS
under n new name and with increased capital. The
servjces Of a Kansas City bank promoter were called
in and the Columbia National was the result
Dwiggns. while president of the United states haa
organized n chain of little country banks through
Indiana and Illinois. aud had thereby established
considerable
them took stock of The Columbia. l.. Evcrinsham'
successful member of the Board Of Trade, was III
duced TO take stock and the presidency of the bahh
and he instrumental in procuring the business
of number Of Board Of Trade men. About year
ago the bank applied for admission 10 the clearing
House. The committee looked into lis standing ana
rejected its application. The books looked all rlSht
and its showing was apparently all right. but the
committee thought there was a question about lis
standing and denied the application
President Zmr Dwggns ascItbes the failure of
the bank TO the suit which was brought against IL
by the sioux City Loan aud Trust Company. when
failed a few days ago. The Columbia was the CHI
,sgo bank with which the sioux City concern did
business and their deposit in The bank al the time
Of their collapse amounted to $4,000. draft was
drawn the Columbia fol- this amount. Nheli INC
draft presented by man from Iowa the bahH
refused payment, claiming that IT had loans ousian.-
ing against the Sioux City Company which equal.d
the amount of their deposit. Immediately on this
refusal of the bank honor the draft the company
entered suit against the bank Tue news OF the su'
spread and caused IA run the bank which they
were unable TO withstand. The Columbia not beng
member Of the Clearing House cleared through III"
Metropolitan. 1t is stated that it was really in shai-
low water when the Chemical failed. and borrowed
$50 900 the Metropolitan on good paper 10 tide
over Tuesday. Yesterday IT called for help again. but
President Keith could not make such an examination
into the affairs Of the Columbia rs would have been
necessary and refused the assistance asked The
Columbia officials then turned TO the Bank Clearing
House Committee and asked for S3.OOO,OOo. They
were told TO bring around good collaierals In th"
morning and the necessary relief would he forihco
Ing Twenty minutes before 10 this morning Prs-
dent Dwicgins appeared with bundle OF securities
a large portion OF which proved TO be STOCK III country
banks These could not be looked into In the Time
at command, and Dwiggins went away without his
So 900 600 The only thing left TO do was to call In
the bank examiner
The latest statement issued by the Dahh hiHes
this showing:
Resources-Loans and discounts. 81 ,6oi.932 % :;
United states and other bonds S3il237 81 furniture
and fixtures, S12.7,5 %. cash and sight exchange
SOL 1913 OF; total. $2,j91,ool 10.
Liabinies-Capita 100000; surplus. $4,000 ;
undivided profits. s41.03O 50; circulation, Ti1OOo
dep0sts Sl,457.0jO "a; total. - .j04 ssh 10.
Bank Examiner Sturges said this evening that he
could give no Information yet. The principal bu'i-
ness Of the Columbia with country banks and
they will be the chief sufferers ON account OF Is
lack of local standing local people were bigger Dor
rowers than d-positos. For that reason the iailui,
will have 4 more far-reachng bad effect than the
suspension Of the Chemical. The journal" says
that curious and possibly unpleasant compca ar"
likely TO grow Of the peculiar dealings of the
Columbia National with lie United states Loan and
Trust Company. adjunct Of the bank having Offices
IA the rookery directly the street.
.
mated D. A. Cook. Bank Examiner for Illinois outside
OF the city OF Chicago. take charge Of III" Columbia
National Bank Of Chicago. which failed this morning.
The failure OF the Columbia National Bank Of CHI
cago will not seriously affect any OF the New York
banks The standing OF the institution has been
such as 10 lead to extreme conservatism here. a
tri1lng loss may fall upon the National BANK OF
Deposit at Broadway and Dey-st but that is not
probable Hopkins J. Iianiord, cashier OF the Natioha'
Bank Of Deposit said yesterday: Up to within TWO
or three months the Columbia carried good bnlnca
with us-from $4,000 10 $4,000 For some weeks
,ts balance has been running down. and IL has dim-
fsbed wa curtailed our accommodations The Columbia
had an overdrat this morning OF 3olc) but inc maa
brought us about 81. 500 IA an offset. Inc remit
ances we expect In TO morow's mail" VIII prop"piN
,eavc ,be hank n credit balance OF $2,7O0. In any
event our loss could only he uihlhg we nave ho
connection with the Columbia other th"n 'ii'' anu
q, noo,la are not Interested in the National Bank OF
Deposit" ,..,..
The announcement Of the suspension Of the toiain-
ba National, Of Chicago was not unexpected III
banking circles here. Its methods nav" not r'cn''n
the approval OF New-YOrk banking men. some III
,er.stnc stories we're told here about the l"adlhS
men in the institution. The bank was St"r''u ny
zmri Dwipgins and j. NJ >tarbnck. Of Chicago WHO
form the so-called banking firm Of D"I'Ei"'' 9'ii
buck g. Co. The firm is not widely Known even III
the banking world OF its own dly. aItho"Gl .S eA
PLOTS promoter oil State Dahh, u, ,e 'rho vi
ocel loio"ei VIZ ,i',jr I,,ni'iu, bl-iuc>>. The
Columbia Bank the result 81 Il mercer WIZ ,n
United states National Bank OF Chicago. Il concern
originally started by Messrs DwiSilh, am nn zoo
/. was created In 1891 with cdpllhl ~ Fi'Vv".",
Hut m. Dwlggns bank syndicate has been acuVc ~
starting state banks iii many OF the s'I'i .,g +,
of Illinois, Indiana and Michigan. J, - N"'i
Rave put about fifty branch concern I'M" O,in' -
in the three states. Having ihorou!h coi''i, noord
themselyes MIR Dwiggins and Mr.. starburh. h'c.r'
Ing 10 the story told by wenfOrmed tn"h N'-UTot' ,
would organize banks In different country IT,"
freely lend money each yer upon NV n,nd
stocks OF their concerns When thihts DOOM"
this Interchange Of assets worked ddniiT"pN a." +,
when one of tne syndicates banks ddh si'. y.
business the losses were found 10 iaii upon So'' Wv
else than the Dwiggns pool. ,o to,,ud thc..
scattered branch concerns OF service III III, n'." h
ment Of the Columbia Bank OF Chicago. "",' g.,
nrc,idency that bank readily loaned money Oh a.,
stocks OF the different branch Institutions III VA -,
Mr. Dwggins or Mr.. starbnck inquired a. pr nn an