Birmingham state herald. (Birmingham, Ala.) 1895-1897, 1896-12-25
.ORCED TO CLOSE DOORS
Securities Shady and Liable to Fall Short of
their Quoted Valuation.
THE CALUMET ELECTRIC ROAD BONDS
Will Play Decidedly Prominent Part in
Settling the National Bank of Illinois
Affairs-Defunct Bank Presi-
dent Wants Damages.

Chicago, Dec. ga continuous run
Of two days made upon the Calumet
State bank, at Blue Island, ILL.,, forced
Shortly afternoon an assignment was
made by the bank in the county court.
The assignee being Melville G. Eames,
the vice-president~ The deed of assign
ment gives the assets as $S7,669, and the
liabilities as $6S,0oO.
The officers attribute the failure to the
run, but say that little money, compar-
atively speaking, was drawn out. The
deposits amount to about 100000, and
the assets consist largely of securities
of debatable value.
1t is said the securities must be handled
carefully in order to realize anything
like their value. The bank is owned by
a stock company has capital of $685.
900 and is eighty years old. Until last
May, w. A. Ray was president and w.
G. Brass the main stockholder. The
present officials allege that the old man
agement nearly wrecked the institution
by their bad management and reckless
loanfng of money on bad securities
Since then it has been a struggle for
existence, and the bank was in no con-
dition to stand run. The present Off
GERS are: G. c. Bogart, president; M. G.
Eames. yice-president, and W. ]. Bray
ton, cashier. The assignee claims that
If given time the bank will pay de-
positors in full. The scene around the
bank building today was turbulent one
and detail of police was found neces-
sary to attend the crowd of clamoring
depositors. The majority of the depos-
itors are poor peole.
Only few more deposftors were at the
Hiberniap and Illinois Trust and Saw
ings banks to withdraw their savings
and complete confidence may be said
to have been restored on the part of the
public, SO far as it can be gauged by
outward signs. fnu gsEf
Directors Adams, Jenkins, Corwith,
Kerfoot and Page, of the defunct Ma
tional Bank of Illinois, made an informal
call on Temporary Receiver McKeown at
the bank today and also conferred with
each other in an informal manner, as all
the directors were not present They
urged Mr.. McKeown to make a very
careful accounting of the Calumet Elec-
trio road bonds held by the bank. These
directors went to the bank in their ca
pacity of creditors. They are anxious to
see the best interests of the bank sub
served and wished to know exactly what
the bonds were worth as assets. The
directors talked among themselves as to
the best plan to facilitate the sale of the
Calumet road and thereby realize enough
to pay in full the depositors Of the de-
funct National Bank of Illinois.
They said that was their only aim
now, and that there was no doubt that
all but the stockholders would get dollar
for dollar. The stockholders do not ex-
pect so much. On account of the large
part which the Calumet securities play
in the banks assets Director George e.
Adams said Comptroller Eckels should
be careful to appoint as permanent re-
ceiver man who would inspire conf
dence and be above suspicion of being in
terested in depreeating the value of the
Calumet securities There Is a sharp
contest for the receivership, one of the
candidates being ex-Mayor John p. Hop
kins, who took a. conspicuous part in the
gold democratic campaign. He is a per-
sonal friend of Comptroller Eckels, but
a strong protest has been aroused against
him because he is believed to have more
than banking experience.
Edward H. Valentine, a capitalist, who
was director of the collapsed bank, said
today that he resigned from the directory
about a year ago because he would not
approve the additional loan Of 100000 on
Calumet bonds, which was carried on
the bank books as foreign exchange"
nizant of all the bank dealings in Cal
umet.
Director Jenkins, when asked If there
would be any prosecution in connection
with the wreck, said. mo, not at pres
ent." ue
Otto Wasmansdorff, of the defunct pri-
vate banking firm, and son-in-law of
President Schneider, of the National
Bank of Illinois has mortgaged his
household goods for $500 and the mort
gage was recorded.
w. A. Paulsen, who was president of
the defunct Central Trust and Savings
bank, began suit today in the superior
court against President w. C. N. Grannis,
Director Charles B. Farwell ex-United
States senator and the Atlas National
hank claiming S250.0O0 dana pes PauIsen
said his bank was forced to close because
the Atlas refused to- clear for him, well
knowing he was solvent at the time,
which was said to have been done in re-
venge for Paulsen's refusal to use the
banks funds to pay a personal note of
$50, 900 in favor OF the Atlas bank. Paul
sen says he lost the sale his bank stock
for 100000 because of this action, as the
deal was going through when the bank
was forced to close. The stock is now
worthless. The Atlas bank is said to
have conceded that the $50, 900 note cannot
be collected from the Central bank and