Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1896-12-24
THE BANK or ILLINOIS.
Director Page Makes n Statement Con.
cerning the business hie.hods.

Director Page Makes n Statement Con.
cerning the business Methods.
CHICAGO, Dec. 23.-Captain schnei.
der, the president OF the National
Bank OF Illinois, is 20 years Of age
and in rather feeble health. When
called upon today by u representative
OF the Associated Press, he said he
should have no statement whatever to
make, ana he seemed quite broken by
the calamity which hau beiallen him.
He denied himself TO most callers, al.
though he has bsen most OF the morn
ing talking over the telephone with
the bank people. There Is no prospect
OF the banks resumipg, and 1t 10 by
no means certain that IL will pay its
depositors In full, ns at first stated.
"Never did see on the book kent
Ior the purpose OF informing the direc.
tors of the bank as to who were april
Giants for loans, the name Of the Calu-
nat Electric railway"
The above statement was brought
about in q conversation with Director
Page OF the defunct bank to-day, as to
how such large IORns were maue by
the bank and ostensibiy given with the
sanction OF the directors. Mr.. Page
went ON to explain how the business
OF the bank, 30 far as the directors
were concerned, was conducted. He
said:
1.-THE directors appointed from among
themselves what you might term, for
convenience sake, an auditing COM
mittee. The plan was to let one direc-
tor drop out each month, SONS other
taking his place. Each day the corn.
mittee would meet at the bank, Its
business being to pass upon the appll.
cations for loans. A record of these
applications was kept In a book de.
signed for the purpose. Whom the
committee was ready for business, Mr..
Schneider would come into the room
bringing with him this book, and with
1t another book in which WIS recorded
the daily balances of the would-be bor-
rover, and also record OF how much
he hau previously borrowed.
"Did the committee never ask to see
actual collateral offered, or did II sim.
ply take the word Of Mr.. Schneider OF
MIR. Hammond that the security was
actually In the bank and was actually
what 1t purported to be In the memo
rsndum Do0k?"
"We had been in business with Mr..
Schneider and Mr.. Hammoud, man y
of us, for thirty years. To have mad Q
such a demand OF them would have
been u personal insult"
"Were not the suspicious OF the
committee aroused by the large sums
loaned TO the Calumet Electric?"
Then came the statement referred to
above: "Never did sse the name OF
the Calumet Electric Railway com.
pauy appsAr on this book as ar appii.
cant for Ioan."
"What have you to cay about the
published statements regarding Mr..
HammOnd's connection with the I'm
explained transactiont?"
'.They are all true, every one OF
them"
STATEMENT FROM ECKELs.
WASHINGTON, Dec. 23.-Compiroller
Eckeis today muue the following state.
ment IN connection with the statement
made in come quarters that efforts
should have been made TO save the
National Bank OF Illinois from falling:
"Every legitimate effort possible
was made. Before IL closed the direc-
tors and officers were fully informed
and instructed to take immediate steps.
The attention OF the clearinghouse
committee was properly called TO the
banks c0Duition, and L am OF the
opinion that the course pursued by 1t
was not only Justified by the facts, but
was a wise, safe and proper thing to be
done. When bank enters a clearing
house association its officers anu d.
reciors are not only bound TO conduct
1t in such a way az to prevent loss anu
scandal to Its own shareholders anu
creditory, but also to the banks with
which II is associated.
81 regret that such condition has
been developed In any bank In the
system, and that apy clearing ouse
association has been called upon to
take such drastic measures. But in
the end 1t will prove benefit to all
the banks OF the country and to every
clearing house association, and add to
the security Of the bank deposltors."