The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-12-24
BOOM GAME BROKE THE BANK.
NEW LIGHT ON THE ILLINOIS
NATIONALS COLLAPSE,


Directors Accused of being I'm "A
scheme to Bull the Value of Cain
met Securities md Enrich Them
seIves-Outside Interests ON the
Bear Side Accused of bringing on
the COIIapse-The Runs on other
Banks Petering ont.
Chicago, Ill, Dec. 2S.-Charges and coun-
ter-charges in connection with the man
agement of the National Bank OF Illinois
were made to-day and engrossed the at
tention of the financial community to the
exclusion of the days events surrounding
the big National bank collapse.
Vice President Hammond, who is charg-
ed with pulling the wool over the eyes of
the directors Of the defunct National
Bank would not talk for publication when
seen to-day at his Evanston home, but a
friend, speaking for him, said: "W. A.
Hammond is to be made the scapegoat of
the failure of the bank. He is a broken
man to-day, but he is not any more to
blame for the amount of money loaned on
Calumet Electric security than are the
members of the finance committee of the
bank and its directors. 1t was necessary
for the purposes of man connected with
the South Chicago City railway, and an
officer of one of the biggest banks in Chi
cago, to deprecate the Calumet road stock,
and to this end these two men accomplish
ed the wreck of the National Bank of Him
ois. Members of the finance committee and
directors of the failed bank knew the full
aHlouht 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
60 60 sell the property, and besides paying
70
directors. There has been a sharp contest
between the General Electric and the
south chicago City railways to get control
or the Calumet bonds. The latter road will
be worth $5.000,000 in five years and the out
slderS who ruined the bank know It. but
they wanted to buy the bonds cheap"
The arrest of Bankers Dreyer and Ber-
ger, the discharge of the receiver of the
Iloseland Bank and the continuation of
the savings depositors run on the Illinois
,li Trust ~ and Savings Bank and the Hiber-
man Banking Association were the princi-
pal DEVELOPMENTS. The public scare is
practically over, and a complete restora-
tlon OF confidence seems to have been ef-
BY arrangement of the police depart
ment, counsel for the defendants and JUS
tlce ot the Peace W; t. Hall, the accused
Robert Berger, entered Justice Halls pri-
Vate court room this afternoon Detec-
tive Fay, who held the warrants which
+. b. Kennedy, a saloon keeper and de-
positor at Dreyer & Co. s bank had sworn
to, announced that the men were under
arrest. The charge in each case is that
close of business last Saturday knowing
at the time that they We're insolvent. The
DEFENDANTS were accompanied by Adolph
kraus their lawyer, and Charles il
Wacker of the Wacker & Birk Brewing z
Company. The latter signed the bond of
the bankers in the sum of $500 each for
their appearance in Justice Halls court
Jan. 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
r. Nichols, who was appointed receiver
Monday afternoon for Frederick Wier-
sena, proprietor of the Roseland Savings
Bank of Roseland, which cleared through
the National Bank of Illinois The receiv-
er appeared before Judge Hancy this
afternoon, and reported there were assets
of $4,000 in cash and real estate and
liabilities of $4,000. Sufficient money had
been raised to carry on the business, and
the judge discharged the receiver. The
bank will open its doors tomorrow morn.
ing.
The rams on the Illinois Trust and Saw
lngs, and Hibernian banks, continued to-
day in lesser degree, and when the usual
closing hour arrived there was not enough
of line at each bank to dignity the scare
as run. No vestige of the excitement is
expected after Christmas day. The Off
GERS of the Illinois Trust were so conf
uent tnat the run on their bank had come
to an ignoble end, that after paying out
under the 6O-day notice rule for depositors
of over $1CO for an hour so, they decided
to remove all restrictions, and began pay
ment in full to all depositors in line
Al the Hibernian Bank the crowd of
people, mostly women, was somewhat less
than yesterday. and their deposits did not
average 500 each. Considering the nank
has 23,OJ savings depositors, a falling off
of 1900 or 5000 timid ones is to be ex-
pected. The officers Of the bank look fot
a continuation of the run tomorrow, and
then the end. The Christmas day rest is
expected to have general cooling effect.
Business went on as usual at the other
hanks. which haNn savings dnnarfrna