Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-12-22


cation OF the banks condition 10y the
Clearing-H House Association followed
ihe failure was great surprise TO the
pubic. There was no suspicion on the
part Of the large depositors that the
banks capital and assets had been seri-
ously impaired. The heaviest creditor Is
the municipal corporation. City-Treasurer
Adam Wolf has 10000 OF city funds on
deposit there. The bank was one % i've
which are repositories for city funds. and
each OF the banks took turns by the
month IN cashng city checks Ii was the
iaied banks turn 10 pay out IN January
CITY WILL NOT SUFFER.
Mr.. Wolf said he had no serious con
eein about the safety Of the money. and
mas received ample assurance from the
other city banks. which hold city money,
that the corporation will not be enlbar-
raised. Ciiy-Comptroler Wetheren. who
Is also vlce-president Of the Globe Ma
tional Bank. expressed the utmost conf
dence in the citys ability TO meet all ohH-
cations promptly. He declared that the
city was never in better condition. fnan-
ciaily. and that the failure would not
embarrass the payment OF interest money
the first OF the year
The West-Park Board Of which Carl
Mol. cashier Of the failed national bank.
Is commissioner has been caught TO the
extent of 10000 and large amount is
on deposit with +. : Dreyer. who is
treasurer OF the board County-Trea-
surer d. Hochsberger has 500 900 Of coun-
~ funds tied up in the national bank.
and Fred NJ. Blount. the newly-appointed
treasurer OF the Drainage Board. had
over $4,000 Of district funds at the bank.
whose officers were on his bond. The
bank officials were also on the bonds OF
the city and county and West-Park Board
treasurers. The fact that the bank officers
were bondsmen these public officials
was strong reason for the disposition
Of the other banks to force a closing Of
the bank AT once.
Wasmansdorff and Heinemann stood
high in the community as private bank
ers. The firm was established on the
West Side more than twenty-five years
ago Germans did business chiefly with
both the private banks. The Wasmans-
dorm estate will require conservative and
cautious handling to pay dollar for dol
lar. OF their liabilities about s2oo0oo is
for savings deposits. Dreyer & Co. had
no savings deposits
The misfortune which has overtaken
both the banking firms j. the cause of
general regret and sympathy
Mr.. Dreyer came 10 Chicago more than
thirty years ago from Germany.
THE CALUMET ROAD.
Farson. Leach q Co. are the chief
owners Of the Calumet Electric road.
which IS new. extensive enterprise.
embracing several towns southeast from
Sxty-third street The loan Of $4,000
obtained from the national bank was
used to build and equip the road, which
is now in fun operation.
The heaviest run on city banks during
the day was directed against the Garden
City Banking and Trust Company. They
withstOOd the attack of 2J0 anxious de-
positors and tonight gave out the
statement they were thoroughly prepared
10 pay everybody who wanted money
tomorrow though they believed the
worst was over. The bank has 100000
on deposit. but the savings department
is not large County Treasurer Hochs-
berger is a director. and there is large
amount OF county money there.
The financial uneasiness on the part
OF bankers and depositors has been ag-
gravatei lately by the numerous failures
Of building and loan associations, anc
the exposure Of their financial rotten
ness.
EXPLANATION FROM ECKELS.
WASHINGTON. December H--Comp-
troler Eckels to-day. in statement re-
gardlng the failure Of the National Bank
OF Illinois (of Chicago. said:
''The failure OF the bank is due 10
iniudicious. reckless. and imprudent
methods followed by the officers. and
not checked by the directors. though
their attention had been individually
called TO the same, and over their in
dividual signatures they had promised
10 remedy the weak points in the bank 5
condition The largest source OF failure
is the banks holdings OF Calumet Eiec-
trio Street-Railway stock. the full
amount Of which cannot now be stated
for il is discovered that part Of such
holdings was not made TO appear on the
books but was concealed in another ac-
count. This and other large and doubt
ful loans has been called by special let
ter TO the attention OF the officers and
directors. and specific Improvement
promised year since.
in June last, on the surface, there had
been made an Improvement. but Wheh
Bank k-Examiner McKeon, on November
10Th. examined the bank. ne found that
the books showed that the loan TO the
Calumet Electric Company and other
similar loans had been increased ana the
promises o. the officers and directors nad
not been carried out. Upon this report l
nrepared a letter addressed TO the presi-
Examiner on December 18th. 10 be read
10 them at a meeting called for this pur-
nose. This letter reviewed at length the
condition Of the bank, and the failure OF
the promises made 10 be fulfilled. IL en-
phasized the position taken by the oince
that a decided and radical change had
TO be made and notified the director
10 take immediate steps 10 put the bank
in condition. The letter was presenter
10 the directors. with a full and com
plete analysis on the part OF the EN-
aminer Of the matters in the bank de-
manding attention
"On SATURDAY / received notice from the
Examiner that rumors Of the banks con
dition had reached the Clearing House
Committee and they desired TO have his
report read 10 them. ordered II TO
be done. but suggested that before do
ing so he see the officers OF the National
Bank OF Illinois. and obtain their ac-
oulescence. This was obtained, and the
vjce-president OF the bank was present
with the Clearing House Committee. the
condition revealed led 70 the resolution
10 SUSPEND from the Clearing House. Be
fore action was taken however. the tx
aminer telegraphed me. AMI In reply
suggested that In view OF the large in
terests involved. great care should be
had. and even at the risk OF taking some
chances. funds might be provided. If II
was deemed safe 10 do 80, 10 afford vol
untary liquidation The assets or the
bank were examined and its manage
menf. as shown by the Examiner. con
sidered and as a conclusion, II was de-
ciaea that the bank should be suspended
from the Clearing House. and funds
should not be furnished for voluntary
liquidation Three OF the banks directors
were present AT these meetings
COMMITTEE ACTION WISE.
in view OF everything, ] am convinced
that the Clear ng House Committee act
"a ,rdiciously The management on the