The record-union., 1896-12-21
Resolutions Passed by the Clearing
House Association Committee.
Statement That the Bank Has Made
That the Bank Has Made
UnwarrantabIe and lnjudiCiOuS
Loans, Imperiling Its Capital
Business Failures Expected in Con-
sequence-Sunday Duel Near Knox
vile. in Which Both Are Killed
Whole Family Burned in New
York.

the clearinghouse. 1t is said the bank
will not open it's doors in the morning.
One or two State-street stores are
known to be heavy depositors in the
bank The officers of the National
Bank of Illinois are: George Schneider,
President; Walter L. Peck, Vice-Pres1-
dent; VIM. A. Hammond, SecOnd-Vlce-
President, and Carl Mohl, Cashier. The
bank is located at 10 Dearborn street.
The action suspending the bank was
taken at specially called meeting OF
the Clearinghouse Association Com
mittee. The meeting was called at the
residence of Elbridge Keith, who is Sec
retary of the committee, and was held
shortly after midnight. 1t was shown
that the bank had made unwarranted
and injudicious loans, and that in con-
sequence the capital stock and surplus
of the bank have been seriously lmper-
lied. 1t is believed that many failures
will result from the collapse of the Ma
tional Bank of Illinois.
The resolution adopted by the Clear
ing house Committee is as follows:
Whereas, The attention of this COM
mittee has lately been called to the ad-
ministration of the affairs of the Ma
tional Bank of Illinois, and it now ap-
pears through statements made to this
committee by one of the Vice-Presl-
dents of said bank, and from the re-
ports of the National Bank Commits
sioner that by reason of unwarranted
and injudicious loans the capital and
surplus of said bank is seriously imper-
lied, if not entirely lost; now, therefore,
Resolved, That under the powers
conferred upon this committee by the
bylaws of the Clearinghouse Associa-
ton of Chicago we do hereby suspend
said National Bank of Illinois from the
privileges of membership in said aSso-
citation, to take effect Immediately.
Resolved, That the Secretary of this
committee be and he is hereby in
structed to send a copy Of these reso-
lutions to each member of the associa-
ton and to report the same at gem
eral meeting of the association TO be
held on Monday, December 21st, at
$3.50 p. M
In taking this action the committee
deems it proper to say that the cash re-
serves Of the bank are within the re-
quired limits of the law and if, as re-
suit of this action, said bank should sus-
pend payment and liquidate it's liabil-
tiles, a large and speedy dividend
would be made available to creditors.
1t is the opinion of the committee
that adjusted claims against the bank
may be considered ample collateral Sc
curity for loans of 10 per cent. of their
face value.
The National Bank of Illinois is the
i
established in 1871. 1t has a capital
stock of 81 100000 and a surplus of
81 ,000,0 900 and 100000 undivided
profits. The amount of money depos-
tied in the bank is 12,O0O,OO0.
There is a large number of big busi-
ness firms who transact business at the
National Bank of Illinois, and it is be-
lieved that several failures will follow
in day or two The rumor has gained
credence that one of the State-street
department stores is seriously involved
and may not conclude it's Mondays
business.
President Schneider, who is also
Treasurer of the Chicago Associated
Press, declined to be seen and numer-
Gus rings on the bell in his Michigan
avenue home We're unanswered
Carl Moll, cashier of the bank, was
questioned.
''The National Bank of Illinois will be
Examiner" he said.
This action was decided on at meet
ing of the Board of Directors held last
evening after we had been notified of
the action of the Clearing house Com
mittee,'
do you expect the bank to resume
business in the near future?"
II must decline to make any further
statement"
What were the causes leading to the
SUSPENSION"
Again you must excuse me-" was the
reply. Il am not a director and L am
not at liberty to discuss the matter"
Orson Smith, Vice President of the
Merchants Loan ard Trust Company
and a member of the Clearing house
Committee, said that the National Bank
of Illinois would not open its doors to-
day. The officials of the bank were
cogniZant of the action of the commit
tee and gave notice that they would sus-
pend operations.
1T was not until very recently" said
Mr.. Smith, that the Clearing house
was aware of the financial straits in
which the National Bank of Illinois
was placed, SO that it would be safe to
say that our action was rather sudden.
During our last few meetings, how
ever the matter was discussed. 1t is a
serious blow to finance and one of the
hardest that this State has had to bear
in many years.
The review of the books of the bank
will TasS intn the hands of tho OF