The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-12-21
BIG BANK FAILS.
National Bank of Illinois at
Chicago Closes.
Liabilities Placed at S1I, ,OO0,-
900, Assets 100000.
DabbIing In Electric Street
Railway Stock
CAUSED THE DISASTER
Comptroller Eckels Severely
Criticizes Bank Management.
Warned the Directors Many
Months Ago, He Says.

MOAbAS ASOs 4AC Say %
Chicago. Dec. 21The National Bank
I Of Illinois, one of the oldest and best
! known banking institutions in the city,
and with assets of between sl2.000'00o
and SIS 00O. 600, closed its doors today
1 The liabilities are S11, 000. 600. The fol-
/ lowing notice was posted on the doors
before the opening Of banking hours:
''This bank is ia the hands Of the ma
tional bank exchange, by order Of the
4 comptroller Of the currency" This act
ION was decided upon at a meeting Of
I the directors of the bank last night, af-
4 ter the bank had been suspended from
1 the clearing house association Of Chi
4 cago at a meeting of the clearing house
4 committee held earlier in the day. of
/ the 16 banks that cleared through the
/ National Bank Of illinois, two closed
1 their doors as a result of the closing Of
that institution. They are. =. S. Dry
er & Co, and Wasmansdordon &
/ Heinemann These two institutions are
mortgage loan banks and saving soeie-
ties ia small way, and their failure is
not expected to effect any business
I houses.
The assets Of E. S. Dryer & co. are
/ given at $1,000, coo, with liabilities of ST.,
200, 600. The figures for Wasmansdorn
/ & Heinemann are approximately, as
sets $3.50, 600; liabilities s400. 900.
The Security Title and Trust cOmpa-
ny was appointed receiver for both
firms. Six banks have made arrange
ments to clear through other banks and
/ the balance of the Is are making similar
/ arrangements as fast as possible. The
failure was great surprise in financial
/ and business circles.
The causes Of the suspension, a s
I given in the resolutions adopted by
4 the clearing house committee are ''un-
/ Warrantable and injudicious loans
/ through which the capital and surplus
+ Of said bank is seriously imperilled, if
not absolutely lost"
The statement was made today that
a loan Of about 81, ,400, 900 to the Calumet
/ Street Railroad company of which ]. w.
j FarsOn of FarsOn, Leach & Cots pres
I ident had caused the National Bank of
4 Illinois to suspend.
MIR. Farson declined to make a state
/ ment on that subject but stated that
i the failure would not affect the Calu-
| met road. Heavy loans on real estate
are also said to have been made. The
| last statement Of the bank showed de-
I posits $l2 1876; loans, S9,199, ,642; cash
| resources, $4. .983, ,902
1 1T is thought probable that none Of
i the depositors viii suffer by the sus-
! pension, as the bankers who We're pres
/ ent at the meeting of the committee
have recommended for consideration
4 the proposition to advance rs per cent
I on all adjusted claims against the Ma
4 tiOnaI Bank of Illinois. In addition to
/ this they have agreed to use their influ-
ence with all other members of the
i clearing house association to accept all
| sucn claims as collateral at the same
/ ratio.
The National Bank of Illinois was or
ganized in August, 1871, with a capital
stock of 5000 600, which was subsequent-
| ly Increased to 81, 900. 600. 1t was regard
ed as one of the soundest financial in
/ stitutions of the city.
The Press club is one Of the sufferers
I nv GnGDaDEin0 r4f
/ the advance sale of tickets for the foot
1 bail game between the Carlisle Indians
and University Of Wisconsin eleven,
1 which was held under the management
4 Of the Press club, amounting to over
/ So GOO, having been deposited SATURDAY.
One Of the leading bankers and fnan-
| cieTs of this city at noon today said
| to an Associated press reporter. The
/ failure of the National Bank of Illinois
/ has created no disturbance of cOnse-
1 quenCe in financial circles here One
/ or two private bankers who were really
/ nothing but mortgage dealers have
I failed, but this is only a natural con-
sequence of shrinking real estate val
I ues"
The principal source of trouble of the
] National Bank Of Illinois was a loan
| of S2,400,000 to the Calumet Electric
Railway company. This. with three or
/ four other loans, threatened severe
losses and the clearing house commit
/ tee saw no way but to suspend the
1 bank The loss in liquidation viii be
/ probable that the bank will resume
/ business.
NEW YORK CORRESPONDENTS
New York Dec. 21-Gficials Of the
4 Mercantile and the American Exchange
| National banks of this city. correspond
| ents of the National Bank OF Illinois
/ say they viii not be affected to any inn
! p0rtant extent by its failure The
/ American Exchange has merely han
/ died collections for the Chicago bank
/ and is actually a debtor to it. The Mer-
| camille National bank people say that
i the Chicago bank does not owe them
/ except for notes in their hands for col
/ lection and express deep sympathy for
/ the officials Of the Chicago bank.
AT WASHINGTON.
Washington, Dec. 21=C0mptroIler
/ E1clels mas received an announcement
/ concerning the National Bank of IlIi-
I nois. lit says that the Chicago clearing
/ house has assumed to pay IS per cent
4 of all proved claims John C. Mexican
/ bank and Instructed to publish a list
| Of all approved claims at once. so that
creditors may get the benefit Of this
action Instructions have been issued
TO all banks having the bank as their
/ correspondent TO prove their claims
/ and send them in.
At the last report Of the bank which
was November 39 the bank had a cap
| ital Of $1,000 Gee; q surplus of ST. 090 900 +
I undivided Ui 0iits Of $50 900 and a total
0f assets Including bonds of S15 946 e52,
its liabilities VIII be about So iaa 000.
While it is feared that serious re-
suits may follow Comptroller EeNels
viii do all in his power to relieve the