Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1893-12-15
SEE HERE, DOCTOR.
70 This Some "Conserva+;ve..
Conduct Of Business?
ALlTTIEoH1CAso FINANCIAL DEAL

- sort That Has Caused = Nc,,,, 80
""ssrvssivo' BaHker., Etc. . WAL.
''"t "s Trouble and May Ii.v, H., s.,,,,..
thing to Do with the l.a,. a.. ,,---.
"epre.s'"" IN Bas,nsss Av,.n,.-
. Bank Exauaincr.
N"0A'o' Dec. l5.-Whcn Chaupcev N
oe'ew was telling the Young man wnc
represented the London Financial Time.
MI about the financial troubles in Au.,.
~ which lie said to TIM. ;nou;-;..
nnsiisiman-the young man aforesaid
'"" 'oNowed an era Of conservative CON.
'uet OF business that had not had IL. eoual
ZOE conservatism-within living memory.
was ne thinking Of such little deals as the
'ne narrated in the following, or did he
nave m'Shty poor opinion OF the con.
se''"usm OF American business, anyhow. .
IL there we're two or three clements in III.
.'ree 'nat produced the trouble. one of
them certainly was the lack Of confidence
o' tue people in the couu,ry's financial in.
sti:utions.
Teeuiiar and Devious wav..
A"o "hen such transactions as the fol.
lowing can take place why shouldn't they,
ror an Illustration Of the Peculiar and
uevious ways Of iinnnciers the case ~ 9
a. Ioi'nan VS.. the South side. State bank
81 al. which !s on hearing before Master
IN Chancery Jereniian Leaning. Is one Of
absorbing interest and valuc. Ii show,
how. under the laws Of the state OF Hi.
nois. n bank was organixci in the CITY of
Shicago With IN ostcnsible Si0C. coo capi-
TAI. bat IN reality without n cent: how
Its officers on an outside ipye.,mrp, M
s.s.ooo IN promissory notes acquired con.
tro! Of property worth possibly sI00 Ooo.
but ensambe.cd for SCS, 900, on which ,h az
iionfed securities 20 the face value of ~ .
tVo.oco. and Low the bank, after a brief
existence Of five months. went into a re.
ceiver's hands with nothing rs an asset
excep; the above ia1afed securities. which
had been substituted for collateral OF
value.
ferd Ward Wa. sn Infant.
Ferdinand Ward had great deal to
learn when his career was checked. The
start OF the South Side State bank wa,
May ], 1..S. The moving spirits in il
We're w. y. Paulson, president Of the Gen.
tral Trust and Savings bank of this CITY:
August Jcrnber-. T. isar Adams, and W.
Il. Griffin. Paulson. It appears. was the
owner Of n bank charter issued in the
early COS 20 the Western Trust and Saw.
ings bank of Peoria. He agreed to turn
this charter over to Jernberg and the 9th
ers. hnve the name changed, and attend
TO all the prcliminaries necessary to allow
them to start n bank in Chicago under it.
For this Paulson WIS to receive $1,000
Quarters were secured for the Kew bank
mt Thirty-iirst and State streets
A Little EsscaiIy Juyglery.
May . Faulsol, Jernberg. Adams and
Griffin met there with State Bans Exam
liner George Il. Hayden. the latter gentle.
mans business being to examine the capt.
tai OF the bank and see that II was in cash
or sound securities, such rs the law de-
mands. President Paulson. Of the Gem
trail Trdst and savings bank, according to
his own testimony, before going to this
meeting me; Jernberg, Adams and Griffin
Mt his own bank on Washington street.
Paulson pat a package containing $4,000
in cash in his pocket, Ind the party. enter
in: "a carriage, WAS driven to the South
SIDE banking house. Arriving there Paul.
son gave the $4,000 in cash to Jernberg,
receiving in return package said TO con-
tain commercial paper Of an equal value.
Adams and Griffin lad eacn $50 co. in
cash with theEi. and these sums were all
Jumped together and handed to the bank
examiner