Birmingham state herald. (Birmingham, Ala.) 1895-1897, 1896-12-24
CH|CACO'S SCARE IS OVER
One Man Alone viii Suffer Fl
nancially
A PREMEDITATED SCHEME
On The Part of Directors of the National BanI
of Illinois
TO ROB OTHERS HAS CROPPED OUT
Calumet Electric Stock Was Inflated and
the Bubble Rurst-Assignments and
Failures in the Windy City and
Others Recorded for the Day.

chicago, Dec. 23.-Charges and counter
charges In connection with the manage
ment of the National Bank of Illinois
We're made today, and engrossed the at
tention of the financial community to the
exclusion of the days events surround
Ing the big national bank collapse.
The arrest of Bankers Dreyer and Bor-
ger, the discharge of the receiver of the
Roseland bank and the continuation of
the savings depositors' run ON the Illi-
nois Trust and Savings bank and the
Hibernian Banking association were the
principal developments. The public scare
is practically over, and complete res
toraHion of confidence seems to have
been effected.
BY arrangement of the police depart
| ment, counsel for the defendants and
justice of the peace, the accused private
bankers, Edward S. Dreyer and Robert
Berger, entered Justice Halls private
court room this Afternoon. Detective
Fay, who held the warrants which f.
E. Kennedy, a saloon keeper and depos-
itor at Dreyer 81 Co.'s bank, had sworn
to, announced THAI the men were un-
der arrest. The charge in each case Is
that the bankers received a deposit of
$15S at the close of business last Satur-
day, knowing at the time that they were
insolvent. The defendants were accom-
panied by Adolph Kraus, their laweyr,
and Charles H. Wacker, of the Wacker
& Birk Brewing company. The latter
signed the bond of the bankers in the
sum of $500 each for their appearance in
Justice Halls court January 2. Kennedy
says he is acting for himself only, but his
action is regarded as premature and ill
advised by those who believe the Dreyer
& Co. failure could not be foreseen.
The shortest bank receivership on rec
ord, forty-eight hours, was that of John
II. Nichols, who was appointed receiver
Monday afternoon for Frederick Wier-
semal, proprietor of the Roseland Saw
ings bank, of RoseIand, which cleared
throuZ h the National Bank of Illinois.
The receiver appeared before Judge
Hancs his afternoon and reported that
there sere assets of $4,000 in cash and
real 5.ate, and liabilities of $51, 800 Suf-
on the business, and the Judge dis
charged the receiver. The bank will
open its doors tomorrow morning.
/ The run on the Illinois Trust and Saw
ings and Hibernia Banks continued to-
day in lesser degree, and when the usual
enough of a line at each bank to dignity
the scare as a run. The officers of the
Illinois Trust company were so confident
that the run on their bank had come to
an end that after paying out under the
sixty day notice rule for depositors Of
over $500 for an hour or SO, decided to
remove all restrictions and began pay
ment in full to all depositors in line.
AT the Hibernian Bank the notice was
adhered to.
A staff of accountants, in charge of an
expert, was put to work during The day
at the Dreyer & Co., and Wasmansdorff
and Heinemann banks and next week a
report is expected which will give an
intelligent idea of the condition of both
houses.
ce-President Hammond who is
charged with pulling the wool over the
eyes of the directors of the defunct ma
tional bank, would not talk for publi-
cation when seen today, but friend
speaking for him said: "W. A. Ham,
mond is to be made the scapegoat of the
failure of the bank. He Is broken man
today, but he is not any more to blame
for the amount of money loaned on Calu-
met Electric security than are the men,
bers of the finance committee of the
bank and its directors. 1t was neces-
sary for the purposes of man connect
ed with the South Chicago City Railway
and an officer of one of the biggest
banks In Chicago, to depreciate the Calu-
met road stock, and to this end these two
men accomplished the wreck of the Ma
tional Bank of Illinois. Members of the
fibance committee and directors of the
failed bank knew the full amount of
the Calumet loan and hoped to make
individual fortunes on the success of the
venture. They were given stock of the
road and the purpose of the deal was to
sell the property, and besides paying
the bank loan, make a neat sum for the
directors There has been a sharp con-
test between the General Electric and
South Chicago City Railroad companies
to get control of the Calumet bonds.
The latter road will be worth $1,000, 900 in
five years and the outsiders who ruined
the bank know it, but they wanted to
buy the bonds cheap"