The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-12-25
BLUE ISLAND BANK BREAKS.
IT'S LOANS SECURED BY COLLATER-
AIS OF DOUBLE VALUE.


The Assets stated nt S7G,06o and the
Liabilities mt S6S S,OOO--The InstItu-
tiOn in Bad Way For Some Time
Past-COnftdencc Nearly Restored
Among Small DepOsitors in the
Chicago Saving Departments.
Chicago, ILL.,, Dec PA continued run
of two days made upon the Calumet state
Bank at Blue Island H., forced its Off
GERS to close their doors to-day.
Shortly after noon assignment was
made by the bank in the county court, the
assignee being Melville c. Eames, the vice
president. The deed of the assignment
gives the assets as $4,000 and the habili-
ties as $6S,OOO
The officers attribute the failure to the
run, but say that little money, compara-
lively speaking, was drawn out. The de-
posits amount to about $4,000. and the as
sets consist largely of securities of debat-
able value.
1t is said the securities must be handled
carefully in order to realize anything like
their value. The bank is owned by a
| stock company has capital stock of
S25, ,0O0 and is eight years old Until last
May w. A Ray was president and W.
G. Press, the main stockholder. The
present officials allege that the old man
agement nearly wrecked the institution
by bad management, and reckless loaning
of money on bad securities. Since then,
it has been struggle for existence, and
the bank was in no condition to stand
run.
The present officers are: G. c. Bogart,
! president; NJ c. Eames. vice president,
and w. B Brayton, cashier. The as
sgnee claims that if given time the bank
will pay depositors in full. The scene
around the bank building to-day was a
turbulent one, and detail Of police was
| found necessary to attend the crowd OF
| clamoring depositors. The majority of the
! depositors are said to be poor people.
Only few more depositors than usual
! were at the Hibernian and Illinois Trust
and Savings Banks to withdraw their
| savings, and complete confidence may be
| sald to have been restored on the part of
the public, so far as 1t can be gauged by
| outward signs.
| Directors Adams, Jenkins, Corwith Ker--
/ foot and Page of the defunct National
| Bank of Illinois made an informal call on
| Temporary Receiver NIcIAeown at the bank
| to-day, and also conferred with each 9TH
] er in an informal manner. as all the di-
! rectors were not present. They urged Mr..
| Mckeown to make very careful account
| ing of the Calumet electric road bonds
| held by the bank. These directors went
| to the bank in their capacity of creditors.
| They are anxious to see the best interests
of the bank subserved, and wished TO
| know exactly what the bonds were worth
as assets. The directors talked among
| themselves as to the best plan to facilitate
the sale of the Calumet road and thereby
| realize enough to pay in full the deposit
ors of the defunct National Bank of Ili-
nois. They said that was their only aim
| now, ana that there was no doubt that all
| but the stockholders would get dollar for
! dollar. The stockholders do not expect
rs much On account of the large part
| which the Calumet securities play in
| the banks assets. Director George r..
| Adams said Controller Eckels should be
| careful to appoint as permanent receiver
| a man who would inspire confidence and
,fNa lr,fas araf0 tod In
| depreciating the value of the Calumet Sc
| curities. There is a sharp contest for the
! receivership, one Of the candidates being
| eX-Mayor John p. Hopkins. who took a
| conspicuous part in the gold democratic
campaign. He is personal friend of Con-
! troller Eckels, but strong protest has
| been aroused against him because he is
| believed to have more political than bank
| ing experience.
Edward H. Valentine, a, capitalist, who
was a director of the collapsed bank. said
! to-day that he resigned from the direc-
| tory about a year ago because he would
! not approve the additional loan of 100000
| on Calumet bonds, which was carried on
! the bank books as foreign exchange" ."
| He declared that every director was cog
| infant of all the bank dealings in Calu-
| met
Director jenkins, when asked if there
! would be any prosecutions in connection
| with the wreck, said: mo; not at ires-
| ent"
Otto wasmansdorff of the defunct pri-
| vate banking firm, and son-in-law of
President Schneider of the National Bank
| of Illinois, has mortgaged his household
| goods for $780, and the mortgage was Te-
corded this morning.
! w. A. Paulsen who was president of
| the defunct Central Trust and Savings
Bank, began suit to-day in the superior
court against President w. G. d. Gran
mis-, Director Charles b; Farwell, .ex-
| United States senator. and the Atlas Ma
tional Bank, claiming S25O,0O0 damages.
Mr.. Paulsen alleges that his bank was
forced 10 close because the Atlas refused
! IN him. We'll knowing was
solvent at the time, which was said to
have been done in revenge for Mr.. Paul
sens refusal to use the banks funds to
| pay a personal note of $4,000 in favor Of
| the Atlas Bank. Mr. Paulsen says Re
| lost the sale of his bank stock for $4,000
because of this action, as the deal was
| going through when the bank was forced
to close. The stock is now worthless. The
Atlas Bank is said to have conceded that
| the $4,000 note cannot be collected from
! the Central Bank, and the damage SUIT
Beniamin B. Jones, ex-paying teller of
the National Bank of illinois, which fall
| ed Monday, was arrested tonight on an
| old charge and the police authorities be-
! lieve that they can compel him to dlyulSe
| certain alleged irregularities in connec-
| Jones and Joseph Wilson, the receiving
| teller OF the bank, were accused Of alb
sconding with $4,000 Until late.y Jones
was arrested. but through influential
| friends. II is said, was not prosecuted on
the charge. Meanwhile, II Is alleged, Jones
lived In Topeka, st. Paul and the Dakotas.
| A short while ago Jones came back to Chi
cago, and tha 10 said to have been no Sc
cret from the officials OF the bank, who
| charged him with embezzement He has
lately been living in Thirty-ninth street,
| and there United States Marsha.s Clark
and White arrested him. When seen in
his cell tonight Jones denied that he
knew OF any irregularities Of the bank
officials.
!