New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-12-22

STATEMENT FROM CONTROLLER
ECKELS.
MANAGEMENT OF THE FAILED BANK DECLARED
TO HAVE BEEN GROSSLY NEGLIGENT

TO HAVE BEEN GROSSLY NEGLIGENT
PRECAUTIONS AGAINST PANIC.
Washington. Dec. 2.-The Controller Of the Cur
| rency was Informed this morning by Bank Exani-
ner John c. McKeon. at Chicago that the Clearing
| House Committee at Chicago had authorized The
| statement that. Immediately claims against the
National Bank Illinois being approved by the re-
cever. they would advance 80 per cent on the face
in order to time. Controller Eckels appointed
Mr. Mckeon receiver with instructions to publish
notice of claims once and also to telegraph
banks having the National Bank of Illinois as re-
serve agent that If they prove claims once they
can get 70 per cent
The failure Of the National Bank OF Illinois was
not great surprise Controller Eckes as the
action of the Clearing House Committee was based
on a statement from the Controllers Office and sub
mitted to the committee with the acqu!cscence of
the bank
According the returns on the last National
bank call, which the conditions up to the close
of business on November 30 1886 the National Bank
of Illinois had capital of 100000. a surplus of
100000. liabilities OF 81 0o1 0OO ard assets incud-
ing bonds. etc. of $i5.O6e92.
Controller Eckels says he will do all that is pos
sibe 10 assist the bank. The Controller gave out
this statement:
Il am advised by Bank Examiner McKeon that
the National Bank of illinois has closed for BUSH
ness and is in his hands for the Controller of
proving claims against the bank and to obtain for
creditors at very early date the largest part of
the amount due TO them. have appointed Mr. Nc
heon temporary receiver. with Geographic insiruc-
lions TO publish notice OF proof Of claims al once
The Clearing House Committee Of Chicago has ad-
vised me, through the Examiner. that the Clearing
House will Immediately advance 10 per cent of the
face Of approved claims and thus give creditors of
the bank immediate relief and prevent unnecessary
disturbance OF business. have also directed the
all of
character TO exercise the utmost caution so as moi
to work any hardship upon The business interests
OF those dealing with the bank and depending upon
II. The advance made by the Clearing House II is
to be understood, is not in payment OF claims
in full. but simply loan of such an amount win
the certificates as collateral security.
tne failure OF the bank Is due to inudieous
and not checked by the directors thouen ,bai,
attention mad been Individually called TO the same
ana over tnelr individual signatures they had prom
ised 10 remedy the weak in the banks condi-
holdings of the Calumet Electric Railway sock the
iull amount Of when cannot now DE- stated for il is
to appear the books but concealed IN anninrr
account. This and other large and doubtful loans
mad Deen called by special letter 10 the attention Of
the officers and directors and specific Improvement
promised year since. In June last, on the sur
when Bank Examiner McKeon. on November 20 ex-
amned the bank he found that the books showed
tina; the loan to the Cdiumei Electric Company ana
other similar loans had been increased and The prom
ises of officers and directors had been CARED
dressed TO the president and directors which / sent
the Examiner on December IA - b. read IN them
meeting called for this purpose. This letter re-
viewed at length the condition Of the bank and the
failure Of the promises made to be fulfilled 1t en-
phaszed the position taken BY the office thai de-
cided and radical change had to be At made
and notified the directors to take immediate steps
TO put the bank In condition. The letter was pre-
scented to the directors with full and complete
analysis on the part Of the Examiner of the matters
ION Saturday received notice from me Examiner
that rumors of the banks condition had reached the
Clearing House Committee and thy desired TO have
his report read 10 them. ordered II done. but sug
81 hal ef0 10 no ofNc Of
cence. This obtained and the vice president Of
the bank present with the Clearing House Com
10 suspend from the Clearing House Before action
was taken. however, the Examiner telegraphed me,
interests involved. great care should be had. and.
be provided If it deemed safe TO do so to afford
voluntary liquidation The assets OF the bank were
examined and its management. as shown by the
Examiner, considered. and az conclusion. IL
decided that the bank should be suspended from the
Clearing House and funds rot furnished for voun-
were present n. these meetings. In view Of every
thing. convinced that The Clearing House Com
part Of the officers and directors has been 10 state
it mildly. grossly negligent. The Liabilities OF the
ment the loss ENABLED upon creditors need not be
sey b E oc Nen GS f
other banks business failures ana unnecessary
strngGncy ATrady al on, ar oanss ma
been notified by telegraph OF the 20 per cent Clearing
ffo'I aye amour; OF difficulty can be- prevented "
nose defending upon the banks Of Chicago and else
mnnt and do moi work themselves into a state Of
nanic other banks can be made TO iai only through
nd making unnecessary demands, on the other
hand the banks ought 10 be carein ana prinent ID
not unnecessarily calling the loans OF 'he'r business
customers
PHILADELPHIA NOT AFFECTED
philadelphia. Dec. 2.-The Independence National
Oh AZ