The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-12-29
ATLAS BANK FAILURE.
PRESIDENT GRANNIS WORRIED
OVER ITS AFFAIRS.
But For the Failure of the National
Bank of Illinois There Would
Have Been No Need of the At
las Going Down.

Chicago, Dec. 2S.-W. c. D. Grannis,
president of the Atlas National bank.
which decided to go out of business
yesterday, was nearly Frustrated last
evening by the worry over the affairs
of his institution.
81 believe everything is going to
come out right he said, "but matters
are considerably involved now
Later in the evening, when the action
of the clearing house committee had
been made known, Mr.. Grannis could
not be seen.
E. B. Myers, a director of the bank,
and one of the original stockholders,
said last evening that the immediate
cause of the trouble was the with
drawal of over 100000 in cast by
County Treasurer Kochersperberger
following the suspension of the Ma
tional Bank of Illinois.
There were also other large with
drawals,' said Mr.. Myers, incident
upon the failure of the National Bank
of Illinois, and reports current regard
ing the supposed involved condition OF
the bank. But for the failure of the
Bank of Illinois, the Atlas would have
had no trouble, for it's business was in
a good condition, as is evidenced by the
action of the clearing house committee.
Treasurer Kochersperberge had on
deposit at the bank at the beginning of
last week $67S,0OO. The failure of the
Bank of Illinois, I suppose, made him
he withdraw $43S,000. The bank still
owes him $4,000, but has secured him
abundantly.
WAS UNFORTUNATE.
1.-The bank was also unfortunate in
it's business with the Van Nortwicks.
They owed the bank about $240, 600 and
the whole matter would have been adj
juSted without trouble but for the fall
ure of the National Bank of Illinois.
The Indebtedness was the result of the
bonding of their big paper mill at APP
pleton, about October 1, for 100000.
Boston parties had promised to take
the whole issue after election, and the
matter was practically contaminated
when the Bank of Illinois failed This
alarmed the Boston people and the deal
fell through. The result was the Atlas
bank had to shoulder the whole bur-
den. 1t is abundantly secured, how
ever, as the property of the Van Mort
wicks is worth $1,000,00O.
Morton & Co., who went into the
hands of a receiver on Saturday, also
owed the bank about $4,000, but this is
we'll secured.
81 think the affairs of the bank will
be wound UP. l am in favor of doing
this. l also think the stockholders
will sustain no loss.
CharI IS J. Connell. second vice-presi-
dent of the Atlas National bank, and
also vice president of the FitZsimmons
& Connell company, contractors and
lumber dealers, was seen last night at
his home.
He expressed surprise when ques-
toned in regard to the banks financial
difficulties. and said: Il believe the
institution to be perfectly sound and
solvent.
Mr. ConnelI was asked to relate the
relations of the bank and the Fitzsin-
mons & Cornell company, and how
much the latter owed the former. He
replied: Sometimes the bank owes us
and sometimes we owe the bank, as
money is deposited or drawn out. We
owe the bank, just now, a nominal
sum"
The amount due the bank from the
contracting firm Mr.. Council declined
to say, nor would he, when pressed for
even a rough estimate, commit him
self
'.The sum-" he concluded, "can be
paid within "a hours without embar
RAISING the firm in the least"
c. B. Farwen said last night: Il have
today, assisting in adjusting the af-
fairs of the bank Everything is sat
isfactorily arranged and all depositors
will be paid in full and at once. I owe
the bank a trivial sum, which will be
paid tomorrow"
The resources of the Atlas National
bank are estimated at 81, $50 600, with
obligations approximating the same
amount. Owing to inability to realize
the actual value of the assets on a de-
Ginning market it will be necessary for
the banks which are members of the
Clearing House association to advance
between $500, 900 and 5000 900 pro rated
according to their capital stock in or
der TO pay all approved claims in full
at once. This is expected TO be done
within a week. The amount of money
needed 10 complete the liquidation is
about 100000 more than was at first
expected by the clearing house COM
mittee.
IT HAD A STRUGGLE
It is known to the inner financial cir
cles that the Atlas BANK iie.s no, Dven
doing a profitable business for a year,
ard within six weeks the stock was of
fered freely from So down TO so. Late
ly it has been a struggle for the bank
to keep open, and the assistance to
honorably discharge its obligations in
full was gladly accepted.
The directors of the Dime Savings
bank did not take any decisive action
at a meeting held today. The bank
will be kept open for the transaction of
the usual business. An insignificant few
made deposits today, while several
hundred depositors called to get their
money and were presented with a 80
days notice of withdrawal to fill out
instead The result of this one-sided
savings bank business, in the opinion
of the bankers, is that the Dime bank
will soon pay up its $3S0,000 of savings
deposits and quit. This step is ex-
pected as soon as the Atlas affairs are
wound up. Director r. c. Clowry of
the Dime Savings bank and Atlas Ma
tional said there was no cause for any
concern about the Dime banks deposit |
ors getting all that was due them be- !
fore the 90 days allowed by law ex-
pired, as the bank was thoroughly |
solvent. This bank has a special con-
stitution and bylaws. which make |
each director and stakeholder PERSONAL !
ly liable for the full amount of its
liabilities.
Queen Lii In Boston.
Boston. Dec. 2S.-Queen Liliuokalani, |