New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-13
PRICE THREE CENTS.
MANY MORE BANKS CLOSE.
DRAGGED DOWN By THE COLUMBIA
NATIONAL.
LITTLE PROSPECT OF THE CHICAGO BANK RE-
sCMING BUsINEss-How DwIGGINs
AND sTARBUCK OPERATED.
TELEGRAPH TRTBCNE1

clearer In the city according To prominent BANK
ers. There were. however, enough failures OF
country banks. all connections In some way OF the
Columbia National OF this city, TO cfusc some wonder
as TO how farreachng In its effects that failure may
be. According to the dispatches dozen or more
banks have be"n forced to the wall as the direct
result OF the failure OF the Columbia
Tho prospect Of the Columbia National Bank be-
Ing able 10 resume Is remote. The inanciering VI
ZnIri Dwiegns and his combination Is so mex
tricabiy mixed with the aiinirs of the bank that
II will take much wor. to effect disentangtement.
Dwiggins and J. VI. starbuck branched out upon
! an extensive and ambitious scheme for the establish.
ment OF chain OF country banks partial list OF
the Institutions with which they connected shows
six In Indiana, six In Illinois. two I'm Michigan. four
In Ohio and two three in Wisconsin, In the course
Of time the Columbia National became loaded with
a mass OF country bank stock for which It had
special use and upon which 1t earning
much money as II should. Then the United states
Loan and Trust Company was Incorporated under
the laws Of Indiana. with zmr Dwiggins as preA-
dent It's prospectus represented that upon the basis
Of country bank stocks yiel ing 8, 10 and l2 per
cent dividends, and q per cent debenture bonds
would BE- issued, the security In every case being
worth at least 81 per than the face value
OF the bond.
The United states Loan and Trust Company guar.
antecd the payment OF principal and interest Th1
matter vigorously exploited. and inquiry az tho
Illinois Trust and savings Bank to-day revealed tho
! fact that $2oO.OOO OF the United states Loan and
Trust COmpany's debentires had been registered
there In this connection 1t should be understood
that the Illinois Trust and savings Bank has nothing
whatever TO do with the company. except 10 take
! and hold In escrow the collatems offered security
for the debenture bonds and TO register such bonds
Just what form the arrangement took as between
| me Columbia and the trust company has not beca
made plain. 1t Is certain that the Columbia seciir1
ties found their into the possession OF the So
called trust company, and 1t Is 10 be presumed that
the proceeds found their way back into the Colum-
bias cash box. but the method OF procedure
! Is yet to he ascertained. Tie trust concern will
In all probability turn up one OF the largest
debtors OF the bank The United states Loan and
Trust Company mas no rating at the commercial
agencies. Other facts are also coming TO light
going show that the Columbia Bank was inter.
es,ed either directly indirectly IN many outside
business enterprises. one Of the largest Of these,
which was In the nature OF Worlds Fair specula-
tion. was the famous Mecca Hotel at Thiryfrst and
This structure. three stories in
height and occupying . solid block was built on
money furnished TO great extent BY Dwignns,
starbuok d Co.. financial directors OF the defunct
Columbia. Dwiggins and Starbuck were both di-
recters Of the Mecca corporation until short time
ago. when they allsg, that they withdrew Dwis-
gins was asked about this and other matters this
ait moon, but would very little
When Bank Examiner stmges asked II the
Government would Institute proceedings against tAe
officers OF the bank he said Il don't know.
can't tell what the Government will do"
"Have you not discovered Irregularities ~
| 81 won't answer that
Have You anything to say1'
al will say this much The affairs Of the Co
! lumbia In such bad shape that ID. A. Cook,
the State Bank Examiner, who IS in charge there,
must have assistance. | am going to get for
him as soon ! cam
During to-day many rumors prevailed. and there
were scattered Indications all along the bankers'
streets OF a feeble but waning excitement. Willie
there was nothing at all like a run on any OF the
banks, savings depositors appeared to be uneasy.
Many worklngmcn left Oft employment to-day and
were early at the banks TO draw out their saw
ings But the bankers anticipated this. and there
was no show of uneasincss and no diminution OF
confidence the part Of the great body " de-
positors Every Clearing House bank Is said 10 be
abundantly supplied with funds, and no further
trouble is anticipated. The smaller banks are not
taken note of by the big bankers in their outlook
Of the situation. and they say that even should
there be one or two failures among those
foeilcr institutions it wouldn't materially alter the
! situation.
The deposifors In the Exposition branch Of the
Chemical National Bank, who live outside OF Chicago.
received notice to-day that the amounts due them
would be- paid before the close OF the Exposition TO-
night.
INDIANAPOLIS MAY - tSpecian-At Morristown tbis
morning the Commercial Lank closed its doors. Il
is thought that bank will be able to meet lis
obligations and when the present furry is past busi-
ness will probably be resumed.
Dispatches from Fowler state that there were
hard runs on the banks Of Boswell. Oxford nnd
Arcadia today the indications being that they wero
badly embarrassed Later it reported that the
Boswell bank was closed
Al noon the Commercial Bank at Broosston closed
It's doors and depositors made application to have
receiver appointed.
The Bank of Greenwood made assignment today
for tho benefit of the creditors. drain the bank
began early In the morning. ard there being but Que
result possible doors were closed mat all aeposl'oS
might stand the same footing
4 disrach from Attca today says: "The Gen.
tral Bank. of West LebanoD is running to-day, but
will probably have close, at least temporarily on
ooconnt OF the failure Of the Columbia National Bank
OF Chicago
In three OF the banks which failed to-day ex-Gov-
ernor Chase was member OF the Board OF Directors
and was large stockholder. The Governors private
fortune will be impaired II II Is not entirely swallowed
nm in the failures. The crash OF banking concerns
I'm Indiana has created feeling Of eas;ess the
nike n, which has not existed since 1873
state Auditor Henderson Informed
,p,s morning that the Commercial State
Bank OF Russavile could not meet its demands
owing 10 the suspension OF the Columbia National
Rank OF Chicago. The bank was organized January
I lsoa J. r. Tindley Is president and r. W. Miles
ca .hicr II |, thought that the directors panic
stricken by the failure OF the Columbia and that
,hev should have continued business. state Auditor
henderson has sent state Bank Examiner Teeer to
assume charge of the bank The directors records
show that the bank has capital OF $4,000 and
deposi,s 70 the amount OF S35, ,0OO Its assets are
about $4,000. The Commercial Bank ia one OF about
twenty banks in Indiana that thought TO be
connected with the Columbia National. The Port.
land Bank, that suspended yesterday. was the
largest of the group This was the first state bank
TO close In Indiana In twenty years The State banks
were recently examined and their reports indicated
that they were IN a substantial condition.
A dispatch from kokomo says the Farmers Bank.
ot Greentown under the same management the
Rusiayie Pank also suspended to-day. The banks
liabilities PLACED at 100000.
Portland Ind. May 12.-About o'clock this morn
ing courier from Dunklrk arrived here and