The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1896-12-24
WESTERN BANK FAILURES
TWO CHICAGO BANKERS ARRESTED
FOE CRIMINAL METHODS.

why the Calumet Bonds Were Taken by
the Defunct Illinois National-Probable
Action Relative to Paying Depositors-
The Scare Seems to Have Subsided.
Chicago, Dec. 29.-E. S. Dreyer and
his partner, Robert Berger, of the
banking firm of f. S. Dreyer & Co,
which failed on Monday, We're arrested
this afternoon, charged with receiving
a deposit, knowing their bank to be in
solvent, and taken to the central police
leased by Justice Hall in $500 bonds,
pending the hearing of their case,
which will take place on January 1.
The shortest bank receivership on
record-forty- eight hours-Was that of
John H, Nichols, who was appointed
receiver Monday afternoon for Freder-
ick Wiersma, proprietor of the Rose
land Savings bank of Roseland, which
cleared through the National Bank of
Illinois. The receiver appeared before
Judge Hancy this afternoon and re-
ported that there We're assets of $4,000
in cash and real estate, and liabilities
of $51, 400. Sufficient money had been
raised to carry on the business, and the
judge discharged the receiver. The
bank will open its doors tomorrow
morning.
Vice President Hammond, who Is
charged with pulling the wool over the
eyes of the directors of the defunct
national bank, would not talk, but a
friend said:
Mr. Hammond is no more to blame
for the amount of money loaned on
Calumet Electric security than are the
members of the finance committee of
the bank and it's directors. 1t was
necessary for the purposes of man
connected with the South Chicago City
Railway, and of an officer of one of the
biggest banks in Chicago, to depreciate
the Calumet road stock, and to this end
these two men accomplished 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 loan,
and hoped to make individual fortunes
on the success of the venture. They
were given stock of the road, and the
purpose of the deal was to sell the
property and, besides paying the bank
loan. make a neat sum for the direc-
tors. There has been a sharp contest
between the General Electric and South
Chicago City Railway companies to get
control of the Calumet bonds. The lat
ter road will be worth $5,000,000 in five
years, and the outsiders who ruined
the bank know it, but they wanted to
| buy the bonds cheap"
Levy Mayer counsel for the Nation
| al Bank of Illinois and Dreyer IL Ber-
ger, said this afternoon:
| "Dreyer e. Co cleared through the
! National Bank of Illinois. At the close
! of business Saturday afternoon there
was not the slightest doubt entertain
ed by the firm, or even the shadow OF
a suggestion that they would not go on
as usual Monday morning. The end OF
| the National Bank of Illinois was as
| sudden as it was amazing. Dreyer &
| Co. did not know until Sunday that
their clearing bank was in danger
They then took steps which resulted in
the receivership. The causes for the
| National Bank of Illinois failure and
it's condition will no doubt in due time
be placed before the public These
| Calumet Electric bonds which have OF
a sudden dwindled into insignificant an
asset have for some years been coveted
by some outsiders, and the interest or
| these bonds has always been promptly
! met"