The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-05-10
CHICAGo'S CRIPPLED BANK.
yr rs NOT xNowy e WHETHER IT
WILL NE PUT ON IT'S LEGS AGAIN.

Movement 20 Protect the Depositors In
tho worries r.ir B-..oh-Over %, of
REV York state Funds I.ockc cd Up-The
President Says ~ was - Hun. and Not
had Losrs,'thst Caused the Dimcnity.
CHICAGO. sisy OFT mas conceded to-day by
almost evory ono. with the exception OF the
hank itself. that the failure OF .ho Chemical
National Bank was duo to bud management.
while making no positive Abatement to this
.rcct. Bank Examiner Sturges. speaking OF
the failure. said enough to show what In his
,udemont was tho cause OF the collapse. His
Wow was In line with the general opinion.
Mir. sturges WAS on hand early and ut once. on
behalf Of the Treasury. took charge OF the
banks affairs.
The first knotty point with which SturRes
had TO deal was whether It wan proper to mako
1. Lis.inction between tho depositors OF tho
worlds Fair branch and the depositors In the
hank Itself. Arrangements lad boon maio
With the Equitable Trust Company on the pre-
yious evening by which the Worlds Fair de-
positors were to be protected. In the absence
Of Instructions from Comptroller Eckles. how
ever. Ar. Sturges concluded that 1t was his duty
10 regard the branch as part OF the bank itself.
In order to have the matter settled decisively
Mr.. Sturgss wired tho Com ptro!ler for in
structtons.
The loans OF the bank arc regarded rs not
being OF such a character ms to satisfy the
clalms VI the dspositors This means that
the stockholders must suffer. There are y
stockho!ders in tho concern. many Of whom
live In Chicago. Most OF them are men who
can stand q little squeeze. The National
Banking laws hold them responsible for double
the amount OF their stock. When the deposit
tors who called On Mr.. SturRes wero assured
- Att, onl that ~ UNA trina lsvont doubt
they went avail happy.
President Curry was indignant Mt tho insin-
uation that the stumbling Of the bank arose
from mismanagement. The sim pls fact Is"
he said. that an unusual run was made on
the bank within q few days. and our supply Of
cash was not sufficient to meet It and. failing
to receive assistance from quarters where We
had reason to expect our appeal for help
would not he denied. the natural result fol
lowed. our loans, were not Wild ones.
They were solid and conservative. and
f M,.n i I can nn saS pos,tiyely that the per"eniass
q losses under this head Vii be- very small:
H. we so GGa' So nrg' n5 5si1 now s he closed ye snd Ws
would have tided over our difficulty"
Unusua! interest was taken in the failure on
Worlds Fair; The branch was established
with the authority Of = special act Of Con
TORS in the branch bank arose from n desire
not to give critics all opportunity for having q
ling AT the tair. -
The first customer who presented himself
to-day was John Boyd Thatcher. COMMISSIONS
from New York. lie presented 2 check for
was informed by the cashier that the bank
was closed. Nj: Thatcher knew this already.
and his presentation Of the check was u mere
matter OF form. which he thought it we'll to 60
through.
Mr. Sturges snid tonight that it would be r
week before he could have n statement ready.
The only definite thing no nscerta.ned WAS
the am cunt OF cash on hand. What the figure
was he refused to say. \. number Of mem hers
Of the National Copmission were caught In
tho failure. MIR. Gamnon OF Oklahoma brought
the subject before the Board this afternoon in
q resolution calling for the appointment Of this
special committee TO inquire into the advisn-
bility of permitting. the bank to resume bust
ness on the Exposition grounds.
The resolution was based on a clause OF tie
net Of Congress creating the Fair. giving the
National Board exclusive jurisdiction IN mat
tors relating to foreign exhibitors. MI. Gam
mon explained that n number o. foreign Com
missioners and others from abroad had funds
in the Worlds Fair Bank when. its doors
closed. and he considered 1t the duty Of tho
National Board to take steps TO protect these
depositors. The resolution was adopted.
The bank had been in operation at jackson
Park abou; three weeks. but had alrendy So
cured a fair line OF deposits. which would have
rapidly grown as the rcceints OF the different
conressionaires increased. The Chemical
National Bank made M arrnn a year
ago with the authorities of the Worlds Fair
for operatiEg the branch in the administration
building. 1t secured the use Of Il large and
commodious room on payment Of $4,000