Santa Fe daily New Mexican., 1896-12-21
BANK DISASTER In CHICAGO
National Bank of Illinois, with Nomi-
nal Assets of Millions, Closed
Its Doors.
A GREAT SURPRISE In BUSINESS CIRCLES
Two Other Banking Houses Carried
Down by the Big Failure-Comp-
troller Eckels Makes An Ex-
planatory Statement

Chicago, Dec. 21.-The National Bank
of Illinois, one of the Oldest and best
known banking institutions in the city,
with assets between $l2,OOO,00O and $l5,-
100000, closed to-day.
The following notice was posted on its
doors before banking hours: "This bank
is in the hands of the national bank ex-
aminer. By order of the comptroller of
the currency"
meeting of the directors last night, after
the bank had been suspended from the
clearing house association, of Chicago.
OF the sixteen banks that cleared
through the National Bank of Illinois,
two closed, E. s. Dryer e. Co. and War
mansdorff & Heineman. These are mort
gage loan banks and savings societies in
g small way and their failure is not ex
pected to effect any business houses.
The assets of E. S. Dryer & Co. are ST.
100000; liabilities, $l,20O,OO0,
Warmausdorf g. Heineman's assets are
s650,000; liabilities, 100000.
The Security Title & Trust company
was appointed receiver of both firms.
Six banks have made arrangements to
clear through other banks and the re-
mainder are making similar arrangements.
The failure was great surprise in
financial and business circles. The causes
of the suspension, as given in the resolu
tions adopted by the clearing house com-
mittee, are: "Unwarrantable and in
judicious loans, through which the capital
and surplus of said bank is seriously i'm
periled, if not absolutely lost"
ooMpTRoLLER EoKLEs EXPLAINS.
Washington.-Com Eckles to-day gave
out the following statement concerning the
failure of the national bank of IlliL ois:
81 am advised by Bank Examiner Nc
Keon that the National bank of Illinois
has closed for business and 10 now in his
hands for the comptroller of the currency.
In order to prevent any trouble in prov
ing claims against the bank and to OBJ
tain for creditors at an early date the
largest part of the amounts due to them,
l have appointed Mr.. McKeon tenn porary
receiver with telegraphic instructions to
publish notice of proof Of claims at once
''The clearing house committee of Chi
cago has advised me. through the exam
liner, that the clearing house will imme-
diately advance rs per cent of the face of
approved claims and thus give the credi-
tors of the bank immediate relief and
prevent unnecessary disturbance of busi
ness.
"The failure of the bank is due to the
injurious, reckless and mprudent methods
followed by officers and not checked by
the directors, though their attention had
been individually called to the same and
over their individual signatures they had
promised to remedy the weak points in
the banks condition. The largest source
of the failure is the banks holdings of
Calumet Electric street railway stock, the
full amount of which can not now be
stated, for it is discovered that part of
such holdings were not made to appear
on the books, but we're concealed in
another account. This and other large
and doubtful loans had been called by
special letter to the attention of the Of
fcers and directors and specific improve
ment promised year since."
"In June last, on the surface, there had
been an improvement made, but when
Bank Examiner McKeon, on November
80, examined the bank he found that the
books showed that the loans to the Calu-
met Electric company and the other
similar loans had been increased and that
the promises of the officers and directors
had not been carried out.
"The condition revealed led to the
resolution suspending from the clearing
house the bank.
"In view of everything, am convinced
that the clearing house committee acted
judioiously. The management on the
part of the officers and directors has, to
state it mildly, been grossly negligent.
The liabilities of the bank are large, but,
by careful and judicious management,
the loss entailed on the creditors need
not be large, if any. Every measure will
be taken by the clearing house and the
com ptroller's Office to prevent other bank
or business failures and an unnecessary
money stringency."