The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-12-23
But Small Depositors Cause a
Run on Some of Chicago's
Institutions.
Unexpected Failure of the Bank OF
Minnesota, but Creditors Will Be
Paid in Full

Trust and Savings Bank and the failure of
the Angus & Gindele Contracting Com
pauy. which is credited with getting a
loan of $3.50, 900 from the failed National
Bank of Illinois, comprised the develop
ments of to-day in connection with the
financial furry.
TIE associated banks have taken
prompt, thorough and conservative action
to avoid serious scare on the part of the
public, which has millions of dollars in
savings accounts deposited with city
banks. The Illinois Trust leads all the
local banks in its savings deposits, having
nearly $12,000,OO0. The Hibernian Bank
has less than So, 10000 of such accounts.
The solid showing made by the banks
which did not lean on the collapsed Ma
tionaI bank had reassuring effect on the
public to-day when the morning papers
were perused, and the general feeling in
the banking community was that the
worst was over so far as those institutions
were concerned.
At conference of the savings banks of
the city, which was held when the runs
began at the Hibernian and Illinois Trust
banks, it was unanimously agreed to
adopt an unusual means toward checking
what might become an epidemic of appre-
hension. Instead of attempting to sllay
the scare by paying all demands in full on
the spot, which has proven to be an I'M
wise policy in the past, the banks decided
to stand upon their statutory rights and
demand notice of sixty days in case of all
Withdrawals exceeding 500.
John Angus, president of the Angus &
Gindele Contracting Company, appeared
in the Superior Court this afternoon with
a bill petiuoning for the appointment OF
receiver. He made George A. Gindele,
secretary and tire asurer of the company,
defendant for the purpose OF obtaining
receivership, and substantially the same
allegations were made as in the Dreyer-
Wasmansdorff case yesterday. The fnan-
cial condition of the company was said to
be such that receiver was needed at once
to conserve the assets and protect all in
terests The answer filed by Gindele ad-
mitted the substance of the petition and
Judge Horton did not hesitate to appoint
William Hill receiver.
. According to the statement maze by the
attorneys for the company the assets are
estimated to be worth 100000, and liza
bilities are placed at $3.50, 600. These
figures are believed to be largely guess
work, however, and exaggerated in case
of the assets. 1t is said the firm owes the
National Bank of illinois alone $3.50, 900
for money borrowed, and the security is
said to be of a class which will be slow to
realize on. The present partnership was
formed in 1888. The company had large
contract on the drainage canal, and was
the principal owner of the Security build
ing at Madison street and Fifth avenue,
which was built by the firm. Mr.. Angus
is president of the Security Deposit Com
pany, which owns the building, and Mr..
Gindele is the treasurer. The capital
stock of the building company is $500, 900.
There is mortgage for $4,000 on it, and
it is bonded for $3.50, O00, secured by second
mortgage. This building is believed to be
the best asset Of the contracting company.
It has been in financial trouble for long
time. Part of the Lake-street Elevated
Railroad was built by the firm.
The only reason which can be thought
OF by the officers of the Illinois Trust
and Savings Bank for the run on that
bank, apart from the general one
of contagious timidity, is that ignor-
the failure of the National Bank of
Illinois, got it COMPOUNDED with the
only other bank of the city which has
the word Illinois in its title. In fact,
many money-seeking depositors who hur-
ried from their homes admitted, when
they reached the waiting line, that they
had heard the bank had failed, while
money was being paid out and received
under their eyes. Meddlesome busy
bodies and fool friends, who had wrought
on the fears of depositors and had even
accom- panied them to the bank, were or
dered by police officers and bank detec-
tives to await their friends outside. The
line of men and women who wanted their
money mum bered 200 during most of the
FIVE hours the bank was open, and the
curious crowd of spectators added to the
excitement. Where deposits exceeded
500 that amount only was paid and the
sixty davs' notice enforced as to the re-
mainder
While President John ]. Mitchell said
the bank had money enough to pay all
depositors in full he declared the sixty
day rule decision would not be misinter-
preted by those who knew the reputation
that the run would spend itself early to-
morrow, and the fac; that there was
small line at the close of banking hours
bore out his statement.
The last statement of the bank to the
Auditor of Public Accounts showed re-
sources of $50, 9OO.S56, capital surplus
100000, time deposits $14, 7S4, BAL, de-
mand deposits $ll, 1854
The run on the Hibernian Bank began
little later. there being no waiting
line until II o'clock. Small depositors
who could not afford to take chances COM
posed the bulk of the crowd, which ex-
tended from the payfng-teller's window
out on the second floor of the Ashland
block. Ropes and policemen were needed
to preserve the line intact and out OF the
way OF other customers OF the bank. The
sixty-day rule was enforced from the start.
There were 15O people in line until near
the closing hour. The bank has withstood
every panic, and on this account is consid-
cred strong and attracted heavy savings
account. President Clark said the bank