Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-12-22
| FINANCIAL CRASH.
.,,c,cO STARTLED ny A SERIES
or FAILURES.
s,TL BANK OF ILLINOIS SUSPENDS.
Dre,cr ~ Co. Wasmnnsdorf,
and Hcinemnn and the R"se'"nd
Ines nank Carried Down--ituns
, other hanks Promptly Met.


..,,,k this morning large crowd gath
.r,s aroand the doors OF the National
r.-k OF Illinois. and creditors discussed
49,. ,rohsb.hty Of realizing from Their de-
,s on the large door leading to the
.rnnc-room the following notice was
posted.
.rn.s bank is in the hands Of the Ma
,,r.l-Bank Examiners.
aBy order
.~a- COMPTROLLER OF THE CUR
EENCY."
Posted over the doors and walls and IN
,t. Corridors were notices from various
s..,-.tcrs of the bank stating that checks
,,sr ON the bank Saturday would be
rsi ny the sisners.
.r.rtIv after 10 o'clock the announce
,..t was made Of the failure Of f. 5.
rr.yer s. Co. an old-estaoiished banking
irs-uton. al the southwest corner OF
vs-n.rrton and Dearborn streets.
.rrsmausdorn * Heinemann, bankers.
e 1871 RandO ph street. were carried
.vr ty the financial crash to-day. ana
losI thcir doors.
..see Freeman appointed the Security
T.te and Trust Company receiver for +.
ureyer & Co. and WasmansdOrff x
r..r,rnaur The receiver for Dreyer x
a. was appointed on a bill filed by +. ;.
rrtyer in the superior Court this morn
inc .sked for a dissolution OF the part
r.--r.p and distribution Of the assets.
Robert Berger was made defendant. The
Cont was told that the assets were 81
..Hn and the liabilities N,2j0.lr. The
fu saws that the partners have agreed
Oh dose up the business but have been
unable 90 agree as 10 the manner IN
which lt IS 10 be done. The bin also
s... that the assets consist OF real es-
tte real-estate mortgages. stocks notes.
and accounts and certificates OF deposit.
rr.-. has been great depression in the
,...a of real estate recently, the bill says.
and unless the assets are handled in
.--s.ryative and careful manner great
loss viii result. Therefore a receiver Is
asked for 20 close out the business. by
a ,orservative handling Of the estate. the
complainant says the assets can be made
10 realize $4,000 more than the liabilities.
No INFORMATION.
None Of the officers Of K. S. Dreyer &
c. were al the bank to-day and credit
DIS o. the Institution could get no inform
alton us 20 the IA lure. The firm OF Z.
S. ureyer * co. j. one Of the Oldest bank
ne Institutions in Chicago. and had al
ways been considered one Of the frmest.
THE receiver for the firm of Wasmans-
for1 * Heluemann was appointed at the
request OF Otto Wasmansdorff senior
member o. the firm. He appeared IN the
Superior Court and named his partner.
W m Heuemann. as defendant The
assets are given at $50 on. with habili-
les . Nl5 90. The complaint saws that
receiver can adm mister the assets so
as 90 produce a surplus OF about 10000.
The failure is also announced of the
-osa'ar8 Savings Bank. situated at No
lf Michigan avenue Frederick Weilrz-
OLA .- ar THE head or tie bank. The bank
.'l business with the National Bank Of
Illinois.
RUNS.
rlr on the Garden City Banking and
Trl,, Company bank. IN the Chamber Of
Commerce building. was caused by the
.o-t becoming generally known among
che dep0s.tors that the inst tuition cleared
through the failed National Bank of
Illinois The line OF fearful depositors
was not long. and withdrawals We're
promptly paid until the regular hour for
closing The banks o'clock The doors
we've then closed. and only those deposit
-rs who We're inside were pa a. To- Gu
-ous crowd outside was large Cough
.. require the services OF several lD4ltr-
men On keep them moving.
40 the Illinois Trust and Savings and
th, American Trust and Savings banks
there were small lines Of men and wo-
men. who were anxious 10 get their
money iu hand. and the bank officers
Ware glad 10 pay it out. as Withdrawals
i1 tae savings departments meant gain
o. interest money. which would be due
January lst. Both these banks are re-
.erlei as financially impregnab.e
The fact that +. :. Dreyer & Co and
Wasmansiorf & Heinemann. the bank
irr firms now n the hands OF receivers.
we've connected IN a family way with the
lfe-rs Of tre National Bank OF I'incls
BAD considerable 10 do with the failure.
and hurry OF the firms % 20 into iiqui-
daton.
REAssURING ACTION.
Reassuring action was taken at a large
r-.ttended meeting Of the Clear ng-
House Association. which was held after
lnking hours this afternoon. The fol-
lowing resolution. offered by ex-Comp-
ller-of-the-Currency Z. 5. Lacey. pres
i'ent of the Bankers National Bank was
unanimously adopted.
Resolved. That the Clearing House
Committee. after calling TO their aid such
o'ner persons as they made desire. be
requested 20 formulate a plan. which will
enable the creditors Of the National Bank
o Illinois 10 avail themselves OF the
oHer OF the Associated Banks 10 make
advances by way Of loans 10 said credit
ors 10 the extent OF IS per cent. upon
Ir0rerly proved claims
The chairman Of the Clearing House
Committee stated that the readiness Of
tfe bankers 10 90 this was 50 evident
mat 10 was not probable that any formal
rrsa nization would be formed 70 accom-
% sh the object set forth in the resolu-
r1n. although the committee appointed
Nl give prompt attention TO the duty
imposed on them.
William r. Dummer. president Of the
a-sociaton. and yice-president OF the
northwest National Bank. read the fol-
loving message. which he had received
from olier-of-the-Currency Eckels,
Gated Wash ngtOn:
u nave appointed Bank Examiner Nc
heon temporary receiver OF the National
hank of Illinois. and I instructed him
fo publish notice 10 creditors TO prove
claims He informs me that the Clear
ts-House Committee VII advance 75
pep cent. as evidence Of claims Notice
will be- published al once. and. II claims
are proved at once. shall within thirty
days be able 20 pay a very considerable
dividend"
nfRAfHsatf Ntlf dtAipu bi AIt titdIlflS-
house IN offering 10 advance on such GER
uhcates"
ASTOUNDING DISCOVERY.
The decision OF the Clearing House Com.
mlttee 20 refuse clearing privileges to the
National Bank OF Illinois and also 70
refuse funds by which the bank could
have gone into voluntary liquidation, was
due 10 the astounding discovery that the
bank had loaned s. 10000 10 the Calumet
Electric Street Railroad Company on its
bonds as sole security. This loan exceeded