The record-union., 1896-12-23
Demand Notice of Sixty Days In Case
of Withdrawals Over 500.
A Contracting Firm Which Was
Credited With a Big Loan From
the Illinois Central Goes to the
Wall-The Financial FURRY Strikes
St. Paul, Two Banks Failing, One
of Which Was the Oldest Banking
Institution i'm the City.

CHICAGO, Dec 22-A steady run of
savings depositors on the Hibernian
Banking Association and the Illinois
Trust and Savings Bank. and the fail
ure of the Angus al1- Gindele Contract
ing Company, which is credited with
getting loan of $4,000 from the
failed National Bank of Illinois, COM
prtsed the developments of to-day in
connection with the financial furry. All
the banks have taken prompt, thorough
and conservative action to avoid a Sc
rious scare on the part of the public,
which has millions of dollars in saw
ings accounts deposited with city banks.
The Illinois Trust leads all the local
banks in it's savings deposits, having
nearly $12 100000. The Hibernian
Bank has less than $3,4O0000 of such
accounts.
The solid showing made by the banks
which did not lean on the collapsed ma
tional bank had a reassuring effect on
the public to-day, and the general feel
ing in the banking community was that
the worst was over, so far as those in
stitutionS were concerned.
At a conference of the savings banks
III TIE cllS, WHICH NdS HSlu NleH llic
runs began at the Hibernian and Il
Inois Trust Banks, it was unanimously
agreed to adopt an unusal means to
check what might become an epidemic
Of apprehension. Instead of attempt
ing to allay the scare by paying all de-
mands IN full on the spot which has
proven TO be an unwise policy in the
past, the banks decided to stand upon
their statutory rights and demand
notice of sixty days in case of all with
drawals exceeding 500.
John Angus President of the Angus
mad Gindele Contracting Company, ap-
peared in the Superior Court this af
ternoon with bill petitioning for the
appointment Of a receive. He made
George A. Gindele, Secretary and
Treasurer of the company, defendant,
for the purpose of obtaining a re-
ceivership, and substantially the same
allegations were made as in the Dreyer
WasmanSdorff case yesterday. The
financial condition of the company was
said to be such that a receiver was
needed ait once to conserve the assets
and protect all interests. The answer
filed by Mr.. Gindele admitted the sub
stance of the petition, and Judge Hor-
ton did not hesitate to appoint Will
lam Hill receiver. According to the
statement made by the attorneys for the
company the assets are estimated to be
worth 100000, and the liabilities are
placed at S25O,00O. These figures are
believed to be largely guesswor how
ever and exaggerated in the case of
the assets 1t is said the firm owes the
l. e -as@
for money borrowed, and the security
is said to be of a class which Will be
slow to realize on.
The only reason which can be thought
of by the officers of the Illinois Trust
and Savings Bank for the run on that
bank. apart from the general one of
contagious timidity. is that ignorant
people. hearing or reading of the fail
ure of the National Bank of Illinois.
got it confounded with the only other
bank in the city which has the word IL
Inois in its title. Where deposits ex-
ceeded 500 that amount only was paid.
and the sixty-day notice enforced as to
the remainder. While President John
J. Mitchell said the bank had money
enough to pay all dep0sitors in full, he
declared the s.xty-day rule decision
would not be misiterpreted by those who
knew the reputation and standing of his
bank. He believed that the run would
spend itself early tomorrow. and the
fact that there was a small line at the
close of banking hours bore out his
statement.
The run on the Hibernian Bank be-
gar a little later, there being no wait
ing line until II o'clock. Small depos-
itors who could not afford to take
chances composed the bulk of the
crowd. which extended from the paying
teIler's window out on the second floor
of the Ashland block. Ropes and po-
licenoen were needed to preserve the
line intact. and out of the way of other
customers of the bank. The sixty day
rule was enforced from the start There
were 150 people in line until the closing
hour The bank has withstood every
manic and on this account is cOnsid-
cred strong and attracted heavy saw
ings account President Clark said the
bank had 81 per cent. of its reserve
funds on hand and could stand run
of two months. if necessary Deposit
ors of $50 to 500 were required TO give
thirty davs' notice under the bank rule
and when this is known there Is not eX-
pected 10 be much of a run tomorrow
In compliance with orders received
to-day from Comptroller Eckeis, Bank
Examiner McKeon. receiver OF the Ma
tioDal Rank OF Illinois, began 10 make
arrangements with City Treasurer Woit
ond other custodians OF public funds in
the bank TO issue 10 them certificates
for such amounts Of their deposits as
clearly appeared to he due thefn, so As
to enable them TO take advantage OF the
Clearing House offer TO advance - pc!
cent This applies only to public funds
FAILURES AT ST PAUL.
ST. PAUL. Dec. 22.-State Bank Tx
arniner Kenyon to-day took possession
of the Bank OF Minnesota, and as a re-
suit of this failure the Union Stock
Yards Bank at South ST. Paul also
closed.
The Bank Of Minnesota was the old
est bank IN St. Paul. 1t was estab-