The San Francisco call., 1896-12-22

including bonds, SIS, ,046, 992. The attempt
OF the Bank of Illinois to realize on the
Calumet Electric securities aroused the
suspicious of other banks and the lnvestl-
CATION of the banks condition by the
Clearinghouse committee followed. The
failure was great surprise TO the public
There Was no suspicion on the part OF the
large aepositors that the banks capital
and assets had been seriously impaired.
The heaviest creditors are the munlcipal
corporations. City Treasurer Adam Wolf
having $3.50, 900 of city funds on deposit
there.
The bank was one of five which are de-
positories for city funds, and each OF the
banks take turns bv the month IN CASH
ing city checks. 1t was the failed banks
turn to pay out in January. Mr.. Wolf
said he had no serious concern about the
safety of the city money and has received
ample assurances from the other banks
which hold city money that the corpora
ton will not be embarrassed. City Comp
troller Wetherill, who is also vlce-presl-
dent of the Globe National Bank, expressed
the utmost confidence in the city's ability
to meet all obligations promptly. He
declared the city was never in better con-
dition financially and the failure would
not embarrass it in payment OF interest
money the first OF the year.
The West Park board, of which Carl
Moll, cashier of the failed National Bank,
is a commissioner, has been caught to the
extent of $500, 900, and large amount is
on deposit with L. 5. Dreyer, who is treas
urer OF the BOARD.
TT II 1T
has 100000 of county funds tied up in
the National Bank, and Fred NJ. Biount,
the newly appointed treasurer of the
drainage board, has over $4,000 of dis
trict funds at the bank, whose officers
were on his bonds. The bank officers were
also on the bonds of the city and county
and West Park board treasurers. The
facts that these officials were on the bonds
of public officials were strong grounds for
other banks to force settlement.
At 10 O'Clock E. S. Dreyer appeared in
the Superior Court, accompanied by his
lawyer Levy Mayer, and filed petition
for the appointment of receiver. He
made his partner, Robert Berger, de-
fendant. The court was told the assets
were 81, 100000 and the liabilities 81 $780,
600; that under the partnership agreement
the business could be closed at any time;
but there was disagreement as to the man.
ner in which the concern should be wound
up. Great depreciation in the value of
the real estate holdings of the fitm is set
forth in the bill, and the receiver is asked
for to prevent heavy loss. Mr.. Dreyer
alleged that his interest exceeds that of
Mr.. Berger two to one, and that by a care
ful handling of the estate it can be made
to realize $150,000 more than the liabili-
ties. All the allegations were admitted
by Mr.. Berger, except that regarding the
comparative interest of the partners.
On this showing, Judge Freeman ap-
pointed the Security Title and Trust Com
pany receiver for the bank, and its doors
were closed as soon as possible thereafter.
There was no excitement in the crowd
which surrounded the bank building at
Dearborn aud Washington streets, and
there was general confidence among the
German depositors that they would get all
the money due them in a short time.
Dreyer d Co. have been in the banking
business for score of years, and there is
no more prominent German-American
citizen in Chicago than Mr.. Dreyer.
During all that time the bank has cleared
through the National Bank of Illinois.
The first int1mation that Dreyer & Co. re-
ceived that the National bank might not
resume was yesterday, and immediate
steps were taken to project their interests.
No preferences, direct or indirect, were
given to any one. After the appointment
of the receiver, many generous offers
came from New York and other cities.
Otto Wasmansdorff, senior partner of
the other banking firm. filed the bill for
the appointment of a receiver soon after
the Dreyer proceedings. Judge Freeman
at once granted the petition and named
the Security Title and Trust Company as
receiver, issuing an injunction in both
cases restraining any one interested from
interfering with the assets or receiver.
Wasmansdorff & Heineman stood high
in The community as private bankers.
The firm was established on the West
Side more than twenty-five years ago.
Germans did business chiefly with both
the private banks. The Wasmansdorff
estate will require conservative and eau
tlous handling to pay dollar for dollar.
OF their liabilities about 100000 is for
savings deposits. Dreyer e. Co. had no
savings deposits. The misfortune which
has overtaken both the banking firms is
the cause OF general regret and sympathy.
Mr.. Dreyer came to Chicago more than
thirty years ago from Germany.
The Roseland Savings Bank, which is
situated in the small suburb of Roseland,
near Pullman, peopled largely by Hol-
Ianders, did not open its doors for busi-
ness this morning. Fred Wiersma, who
owns the bank, posted notice that the
bank would not open to-day. The an
nouncement drew crowd, but there was
no scene of excitement. The depositors.
who are mostly poor people, were assured
they would get their money as soon as
money was received from the National
Bank of Illinois. The bank was estab-
lisl.ed about two years ago.
Farson, Leach & Co. are the chief own
ers of the Calumet electric road, which is
a new and extensive enterprise, en-
bracing several towns southeast from
Sixty third street. The loan of 81, 600
obtained from the National Bank was
used to build and equip the road, which is
now in full operation,