The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-12-22
FAILS for MILLIONS
RATIONAL BANK OF ILLINOIS, OF
CHICAGO, CLOSES ITS DOORS.

RATIONAL BANK OF ILLINOIS, OF
CHICAGO, CLOSES ITS DOORS.
With Assets of Twelve to Fifteen Millions
it is Placed In the Hands of the Nationa
Bank Examiner. Who is Named Receiv.
er-ComptroIier EckIes' Statement is a
Roast on the Banks Business Methods
Clearing House Takes Action Toward
Strengthening Out Affairs the 0uickes,
Way-Few other Banks Involved.
Chicago, Dec. 21-The National Bank
Of Illinois. generally considered one Of
the strongest financial institutions in
the west, closed its doors today, the fail
hre dragging down three other concerns,
e. S. Dreyer & Co., Wasmansdorf,
Heineman & Co, and the Roseland
bank. The failure Of the National Bank
Of Illinois was due to the fact that its
entire capital Of $2,0O0.00 and 1905
over and above its surplus of 100000,
had been loaned on Calumet Electric
X
&as loaned to Dreyer & Co., who had
spread their capital out so extensively
that they were unable TO concentrate ii
In time to save themselves The other
failures were due to the locking up of
assets held by the National Bank of Hi
nois, and which were not available wnen
that institution closed its doors. No
further trouble is expected, as the clear
ing house association has agreed to pay
rs per cent of the deposits in the Ma
tional Bank of Illinois, and at the meet
ing Of the clearing house committee this
afternoon all the banks represented
themselves in good condition and none
Of them asked for aid, which would have
been freely extended had it been asked.
1t is probable that all OF the banks
viii resume with the exception of the
National Bank of Illinois, and ell de-
positors will be paid in full.
FULLER DETAILS.
Chicago, H., Dec. 21-The National
. Bank Of Illinois, one Of the Oldest and
best known banking institutions in the
city, and with assets between $4,000, coo
and SIS, 200, 000 closed its doors today.
The following notice was posted on the
doors before the opening of banking
hours:
This bank is in the hands of the ma
tional bank examiner. By order OF the
comptroller of the currencs-"
This actIun was decided upon at
meeting of the directors of the bank last
night. after the band had been suspended
from the Clearing House association Of
Chicago, at the meeting of the clearing
house committee held early in the day.
OF the sixteen banks that cleared
through the National Bank of Illinois,
two closed their doors as result of the
closing Of that institution. They are Z.
S. Dryer & Co, and Wasmandsorff &
lehman.
These two institutions are mortgage
loan banks and savings societies in a
small way, and their failure is not ex-
pected to effect any business houses. The
assets Of the E. S. Dryer & Co, are given
at 81, 500, 000 with liabilities of 81, 200, 900.
The figures for Wasmansdorff & Helm
man are approximately: Assets, $3.50, 900;
liabilities, s400. 900.
The Security Title and Trust company
was appointed receiver for both firms.
Six banks have made arrangements TO
clear through other banks and the bal
Gnce of the sixteen are making similar
arrangements as fast as possible. The
failure was a great surprise in financial
and business circles.
The causes of the suspension, as given
in the resolutions adopted by the clear
ing house committee, are "unwarrant-
able and injudicious loans, through
which the capital and surplus of said
bank is seriously imperiled, if not abso-
lutely lost
The statement was made that loan
of about 81, 400, 900 to the Calumet Street
Railroad company, of which ]. W. Far
son, Of Farson, Teach & Co., is president,
had caused the National Bank Of Hi
nois to suspend. Mr.. Farson declined to
make a statement on that subject, but
stated that the failure would not effect
the Calumet road.
Heavy loans on real estate are also said
10 have been made.
THE LAST STATEMENT.
The last statement of the bank showed
the assets to be 12.175. 766; loans, 50, $780,
642; cash resources, $4,9S3, POP.
1t is thought probable than none Of the
depcsitors will suffer by the suspension
OF the bank, as the bankers who were
present at the committee have recon-
mended for consideration the PROPOSE
ton TO advance rs per cent on all adjust
ed claims against the National Bank of
Illinois. In addition to this they have
agreed TO use their influence with all the
other members of the Clearing House
association TO accept all such claims as
collateral at the same ratio.
The National Bank of Illinois was or
gained in August. 1871. with a capital
of $500, 900. 1t was regarded as one of the
soundest financial institutions in the city.
The Press Club is one OF the sufferers
by the suspension, all the proceeds of the
advance sale of tickets for the football
game between the Carlisle Indians and
the eleven of the University of Wiscon-
sin, which was held under the manage
ment of the Press Club, amounting to
over $1,000. having been deposited Satur-
day.
1t was announced that the Drover.s
National bank, which cleared through |
the National Bank of Illinois, will clear |