Omaha daily bee., 1896-12-23
DRAGS DOWN MINOR FIRMS
Chicago Pank Failure Involves Some Other
Institutions,
PANIC, HOWEVER, IN no SENSE CENTRAL
Two savings Banks Meet II Run by
Giving the SiNtS-Day Nnticc and
This Gives Confidence
TO others.


CHICAGO, Dec. 22-The failure of Angus
& Gindcle, general contractors; the Amcrt
can Brewing. Mating and Elevator com.
pany, the George A. Wcisse Mating and
Elevator company and George \. Weisse
individually, all Of these being due to the
collapse OF the National Bank of Illinois
and small runs on three banks We're the
echoes today of the bank failures of yester-
day. Runs were made on the Garden City
| Banking and Trust company, the Hibernian
Savings bank and the Illinois Trust and
| Savings bank, but none Of the runs were
of much Importance. The officers of the
Garden City Banking and Trust company
had expected that a run would be made on
their institutions and were ready to meet 1t.
! They threw open the doors of the bank an
hour earlier than usual, as they said they
wanted to get the run out of the way so
| they could transact their usual business
| without being disturbed quite crowd of
| depositors had gathered at the doors before
| they were opened and as soon as the bank
was ready for business the depositors gave
! the paying tellers all they cared to do.
| The run kept up with energy for over an
! hour and then died away. At the close Of
| banking hours the officers Of the institu-
! tion announced that during the day the
| amount of money taken in was treble that
paid out and the bank was declared in bet
| ter shape than at the opening of the doors
| in the morning.
The run on the Hibernan Savings bank
| was of such duration that the officers de-
| clned to make any payment on time de-
! posits unless given sixty days notice. they
! said this was not because they were not
! prepared to pay all depositors in full but
because they wished to avoid embarrassment
| to smaller bankers who might not be pre-
| pared to pay all their depostors at once
and who might be placed in an embarrasS-
| ing position.
The stronger banks were paying all de-
mauds for time deposits. There was
slight run on the Illinois Trust and Savings
bank shortly after it opened this morning,
the similarity of its name and that of the
National Bank Of Illinois having led some
depnsitors to believe that the former was
embarra ssed. During the run in 1891, PreSi-
dent John j. Mitchell OF the Illinois Trust,
gave orders TO pay ali depositors who called
for their money and was criticised by other
bankers for doing so. This morning. as
soon as it became evident that there was
likely to be a crowd in the bank, instruc-
tons we're given the tellers to serve the
customary sixty days notice, but to pay all
depositors VINO could show that they wanted
SlUU OF tlHlT InOutN lOI d tSllluldlt pun
pose. The result was that the score or more
of people who had lined up at the paying
teller's windows soon dispersed. Before the
closing hour the excitement had completely
died out. The giving of the notice was
sanctioned by the clearing house and the
object Che Illinois Trust being the strongest
savings bank in the city, to give the smaller
ones the opportunity to point to its action
as an excuse for giving the notice them
selves, which they did, and thus effectually
stopped a run. The Illinois Trust and
Savings bank is said to have 50 600 600 in
cash on hand and was today loaning money
instead of as in 1898, calling in loans to
meet the demands of the savings depositors.
The American Brewing Mating and Ele-
vatOr company, the George A. Weisse Mating
and Elevator company, and George S. Weisse
assigned this evening in the county court.
The assignments OF the two companies. which
are intimately connected in business, and
that of Weisse were brought into court to-
gether at o'clock. The assignee of the
American Brewing, Mating and Elevator
company is the Chicago Title and Trust
company. The George Weisse Mating and
Elevator company assigned to the Chicago
Title and Trust company, and that company
is the assignee of Weisse also. No statement
was filed. The failure of the two corpora
tions the result of the failure of the
National Bank OF Illinois. The two com
panies were borrowers from the bank, and
were indebted to it when 1t failed TO the
failure of the bank was announced. prep
arations were begun for the closing up of
the business of the two companies. The
corporations were both organized through
the efforts of George A. Wesse and a SON
in-law OF President Schneider of the Bank
of Illinois The American Brewing. Mailing |
and Elevator company is the owner of eX- |
tensive malt houses on North Ashland ay- |
enue, which are leased to the other com |
pany and are used by 1t in the manufacture |
nf q
and Elevator company has a large brewery |
adjoining the malt houses, and the two are |
closely related in business, one buying and |
selling to the other.
Judge Horton, earlier in the day ap- |
pointed a receiver for the general contracting |
firm of Angus & Gindele on the application
of John Angus, one of the members of the
firm. The assets of the concern were placed |
at $500 600 and the liabilities at $3.50 900. An
answer was filed to the bill by George 4.
Gindele, the other member of the firm, con
senLing to the appointment Of a receiver.
According to the bill, the National Bank of
Illinois. which failed Monday, loaned the
firm $3.50 600 and the suspension of that in
sttution has nearly destroyed the credit of
the contracting firm, there was nothing
left but application to "a court for relief.
The assets of the partnership consist prin-
cipally of real esate. accounts receivable. |
notes and contracts for completion of public
works, elevated railroad construction and
the erection of buildings.
DIRECTORS DID NOT KNOW IT
Robert L. jenkins. one of the directors Of
the National Bank of Illinois, says THE
directors did not know the size OF the loan
on the Calumet Electric The discovery of
the condition OF the loan was as much OF a
surprise to me to the public. The same
is true OF the loan to Dryer & Co. The
directors were unaware of the loans, which
appear to have carried the bank down, or
were until the latter part OF last week. |
don't care to say who / believe was to
blame for the directors being kept in the
dark as to the magnitude OF these loans
WASHINGTON, Dec. 22.-Mr. Eckes, the
of the currency today received
a telegram from Mr. McKeOn, the receiver
Of the National Bank Of Illinois stating
that the books of the bank show that quite
large sums of public funds, belonging to
the city OF Chicago, were on deposit In
reply the comptroller sent Mr.. McKeon the
telegram:
Telegram relative to public funds re-
ceived. You may make arrangements with
depositors thereof to issue to them at once
for such amounts of their de-
oosits as an examination of the books of the
bank makes clearly appear are due them; ,
his will enable them to avail themselves of
The offer of the clearing house to advance
10 per cent and so prevent embarrassment |
n meeting public expenditures.
BOSTON, Dec 22.-Boston banks 1t is
earned have about 5000 900 locked uD I'm the