The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-12-25

Chicago, Dec. 24.-The local financial
situation resumed its normal condition
today except for the assignment of the
Calumet State bank, small institu-
ton at Blue Island, outside the city
which is not expected to have more
! than a local effect Heavy Withdrawals
| drained the working resources of the
bank, an indirect result of the financial
crush in this city. Only few more
depositors than usual were at the
Hibernian and Illinois Trust and Saw
| ipgs banks to withdraw their savings,
and complete confidence may be said
| to have been restored on the part OF
the public so far as it can be gauged
| by outward signs.
Directors Adams, Jenkins, Corwith,
Kerfiot and Page of the defunct Ma
tional Bank of Illinois made an informal
call on Temporary Receicer McKeon
at the bank today, and also conferred
with each other in an informal man
ner, as all the directors were not pres
ent. They urged Mr.. Mckeon to make
very careful accounting of the Calu-
met railroad 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. Directors. talked among them
selves as to the best plan to facilitate
the sale of the Calumet railroad and
thereby realize enough to pay in full
the depositors of the defunct institu-
ton. They said that was their only
aim now, and that there was no doubt
that all but the stockholders would get
dollar for dollar due. The stockholm
ers do not expect so much. On account
of the large pant which the Calumet
securities play in the banks assets,
Director George E. Adams and Comp
troller Eckels should be careful to ap-
point as permanent receiver a man
who would inspire confidence and be
above suspicion of being interested in
depreciating the value of the Calumet
securities. There is sharp contest
for the receivership, one of the candi-
dates being ex-Mayor John P. Hop
kins.
Edward H. Valentine, capitalist,
who was a director of the collapsed
bank, said today that he resigned from
the directory 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 cognizant OF
all the banks dealings in Calumet.
Director Jenkins, when asked If there
would be any prosecutions in connec-
ton with the wreck, said: mo, not at
present
Otto Wasmansdorff of the defunct
private banking firm, and son-in-law
of President Schneider of the National
Bank of Illinois, has mortgaged his
household goods for $500, and the mort
gage was recorded this morning.
w. A. Paulson, who was president
of the defunct Central Trust & Savings
bank, began suit today in the superior
court against President w. c. D. Gran
mis-, Director Charles B. Farwell, ex-
United States senator, and the Atlas
National bank, claiming $250,000 >am-
ages Paulson alleges that his bank
was forced to close because the Atlas
refused to clear for him, well knowing
he was solvent at the time, which was
said to have been done in revenge for
Paulson's refusal to use the banks
funds to pay a personal note of $4,000
in favor of the Atlas bank. Paulson
says he lost the sale of his bank stock
for 800 600 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 followed.
Chicago, Dec. 24.-William D. Ker-
foot, George Adams, William R. Page
and Charles R. Corwith. directors of
the collapsed National Bank of Illi- |
lois, left last night for Washington, |
and will have a conference with Con-
-roller Eckels. If Mr.. Eckels opens up |
he subject of permanent receivership, |
he visiting directors will express their |
opposition to eX-Mayor Hopkins.