The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-12-24

A Concern That Was Squeezed
by a Calumet E'ectric
Bond Deal.
The Public Scare Practically Over
and Confidence Seems to Have
Been Restored.

CHICAGO, ILL.,, Dec. Exchanges and
counter charges in connection with the
management of the National Bank of
Illinois were made to-day and engrossed
the attention of the financial community
to the exclusion of the days events sur
rounding the big National bank collapse.
The arrest OF Bankers Dreyer and Ber-
ger, the discharge of the receiver of the
Roseland Bank and the continuation of
the savings depositors' run on the Illinois
Trust and Savings Bank and the Hibernian
Banking Association were the principal
developments. The public scare is prac-
tically over and a complete restoration of
confidence seems to have been effected
By arrangement of the Police Depart
ment counsel for the defendants and JUS
tice of the Peace W. T. Hall, the accused
private bankers, Edward S. Dryer and
Robert Berger, entered Justice Halls
courtroom at ? O'Clock this afternoon.
Detective Fay, who held the warrants
which F. E. Kennedy, saloon-keeper
and depositor at Dreyer & Co.'s Bank. had
sworn to, announced that the men were
under arrest. The char in each case is
that the bankers received deposit of $153
y,
knowing at the time that they were insol-
vent. The defendants were accom- panied
by Adolf Kraus, their lawyer, and Charles
H. Wacker of the Wacker Birk Brewink
Company. The latter signed the bond of
the bankers in the sum of $500 each for
their appearance in Justice Halls court
January 2.
Kennedy says he is acting for himself
only, but his action is regarded as pre-
mature and Ill advised by those who be-
lieve the Dreyer & Co. failure could not
be foreseen. In this connection Levy
Mayer, counsel for the National Bank of
Illinois and Dreyer & Berger, said to re-
porter of the United Associated Presses
this afternoon:
"Dreyer & Co. cleared through the Ma
tional Bank of Illinois. At the close of
business Saturday afternoon there was
not the slightest doubt entertained by the
firm or even the shadow of a suggestion
that they would not go on as usual Mon
day morning. Without a clearance bank
they could not possibly open up. The
end of the National Bank of Illinois was
as sudden as it was amazing. AS one of
its counsel l had not the slightest intima-
ZION that there was any suspicion against
the bank until late Saturday night.
Dfeyer & Co. did not know until Saturday
that their clearing bank was in danger
They then took steps which resulted in
the receivership. The receiver has all
their property. The great agitation at
present existing has made some men pre-
cipitate and hastv in their criticism of
their action and advice. When the excit-
ment has subsidized and the examiner has
made a through investigation into the
estate, and then only, will people be in
position to calmly pass judgment.
fThe causes for the National Bank OF Illi-
nois' failure and its condition will no
doubt in due time be placed before the
public. These Calumet Electric bonds,
which all of a sudden have dwindled into
so insignificant an asset, have for some
years been coveted by some outsiders, and
the interest on the bonds has always been
promptly met"
The shortest bank receivership on re-
cord, forty-eight hours, was that of John
H. Nichols, who was appointed receiver
Monday afternoon for Frederick Wier-
soma, proprietor of the Roseland Savings
Bank of Roseiand, which cleared
The receiver appeared before Judge Han
ecy this afternoon and reported that there
were assets of $4,000 in cash and real es-
tate and liabilities of $51,6 Sufficient
money had been raised to carry on the
business and the Judge discharged the re-
ceiver. The bank will open its doors TO-
morrow NOR ming.
The runs on the Illinois Trust and Saw
ings and Hibernia banks continued to-
day in lesser degree, and when the usual
closing hour arrived there was not enough
of line at either bank to Dignity the
scare run. No vestige of excitement
is expected after Christmas day. The Of
ficers of the Illinois Trust were so con-
ndent that the run on their bank was at
an end that they decided to remove all
restrictions and began paying in full to all
depositors in line.
At the Hibernia Bank the notice was
adhered to.
A staff of accountants in charge of an
expert was put to work during the day at
the Dreyer & Co. and Wasmansdorff &
Heinemann banks, and next week a re-
port is expected which will give an in
telligent idea of the condition OF both
houses.
Vice President Hammond, who is
charged with pulling the wool over the
eyes of the directors OF the defunct Ma
tional Bank, would not talk for publica-
ton when seen to-day at his Evanston
home, but a friend, speaking for him.
said:
Nv. A. Hammond Is to be made the
scapegoat for the failure Of the bank. He
is a broken man to-day, but is not any
more to blame for the amount of money
loaned on Calumet Electric security than
are the mem bers of the finance committee
of the bank and its directors. 1t was nee
essary for the purpose of man connected
with the South Chicago City Railway and
an officer of one of the biggest banks in
Chicago 10 depreciate the Calumet road
stock, and to this end these two men ac-
compiished the wreck of the National
Bank OF Illinois. Members of the finance
committee and directors of the failed bank
knew the full amount of the Calumet
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