The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-12-22


the Illinois National Estimated Mt
SIo,OO0, 0,OO0-ReckIess Loans on
street Railway Securities in Den-
nnce of Warnings From the Cow
ernment.
Chicago, ILL.,, Dec. 2l.--At 10 o'clock this
morning, large crowd gathered around
the doors of the National Bank of Illinois
and creditors discussed the probability OF
realizing from their deposits. on the
large door leading to the counting room,
the following notice was posted;
This bank is in the hands of the ma
tional bank examiners. BY order the con-
troller of the currency"
Posted over the doors and walls in the
corridors were notices from various depos-
itors of the bank stating that checks given
on the bank Saturday would be paid by
the signers.
Shortly after 10 O'clock, the announce,
ment was made of the failure of e. s.
Dreyer & Co., an old-established banking
institution, at the southwest corner of
Washington and Dearbon streets
Wasmansdorf & Heineman bankers. at
l4S-l47 Randolph street, were carried down
by the financial crash to-day and closed
their doors
Judge Freeman appointed the Security
Title and Trust Company receiver for Il.
;. Dreyer O. Co. and Wasmansdorff & Hell
nemann. The receiver for Dreyer & Co.
was appointed on a bill filed by C. S.
Dreyer in the superior court this morning
asking for dissolution of the partnership
and distribution of the assets Robert
Berger was made defendant. The court
was told that the assets were 81, 100000 and
the liabilities 81, ,250,000. The bill SAYS that
the partners have agreed to close up the
business, but have been unable to agree
as TO the manner in which IL is to be done.
The bill also says that the assets consist
of real estate, real estate mortgages,
while the Liabilities are open accounts and
stocks, notes and accounts receivable,
certificates of deposits. There has been
great depression in the value of real es-
tate recently, the bill says, and unless the
assets are handled in a conservative and
careful manner, great loss will result
Therefore, a receiver is asked for to close
out the business. By a conservative ham
ding of the estate, the complainant says,
the assets can be made to realize $l50,OO0
more than the liabilities.
None of the officers of E, s. Dreyer a.
Co. were at the bank to-day, and creditors
of the institution could get no informa-
ton to the failure.
The firm of T.. $. Dreyer 81 Co. is one
of the Oldest banking institutions in Chi
cago, and had always been considered one
of the firmest.
The receiver for the firm of Wasmans-
dorff q Heinemann was appointed at the
request of Otto Wasmansdorff, senior
member of the firm. He appeared in the
superior court and named his mariner,
assets are given at $55O,000 with liabilities
of $415,000. The complaint says that re-
ceiver can administer the assets so as 70
produce a surplus of about 100000.
The failure is also announced OF the
Roseland Savings Bank, situated at No.
1O6 Michigan avenue. Frederick Wielrzma
is at the head of the bank. The bank did
business with the National Bank of I'LL
nois.
< run on the Garden City Banking and
Trust Company's bank, in the Chamber
of Commerce building, was caused by the
fact becoming generally known among the
depOsitors that the institution cleared
through the failed National Bank Of Illi-
nois The line of fearful depositors was
not long and Withdrawals were promptly
made until the regular hour for closing
the bank. The doors were then closed
and only those depoSitorS who were in
side We're paid. The curious crowd out
side was large enough to require the serv-
ices of several policemen to keep them
moving
AT the Illinois Trust and Savings and
American Trust and Savings Banks there
were small lines of men and women, who
were anxious to get their money in hand
and the bank officers were glad to pay
out, as the Withdrawals in the savings
department, meant a gain of interest
money, which would be due Jan. /. Both
The fact that Il. S. Dreyer C Co, and
Wasmansdorff q Heinemann, the banking
firms now in the hands of the receivers,
were connected i'm a family way with the
officers of the National Bank of Illinois,
and its suspension had considerable to do
with the failure and hurry OF these firms
TO go into liquidation
Reassuring action was taken at largely
teending meeting of the cleaTSg house
association, which was held atter bank
ing hours this afternoon. The following
resolution, offered by ex-Controller of the
Currency e. s. Lacey. president Of the
Bankers National Bank, was UNANIMOUSLY
THAT the clearing house committee, af-
ter calling to their aid such other persons
as they may desire be requested TO foimu-
late plan which will enable creditors Of
the National Bank of Illinois TO avail
themselves of the offer OF the associated
banks to make advances, by way OF loans
10 said creditors, to the extent of Is per
cent. upon properly proven claims"
The chairman of the clearing house COM
mittee stated that the readiness OF Lank-
ers 10 do this was so evident that II was
not probable any formal organization to
accomplish the object set forth IN ne res
olution would be necessary, although the
committee appointed will give prompt at
tention to the duty imposed ca them.
William +. Dummer, president OF the as
SOesasrDh wester1 Natonai a nal Bank, read the follow
ing telegram which he had received from
Controller Of the, Currency Eckeis dated
WdSnlnSLOns nave dppOlHltu
Examiner McKeon temporary receiver of
the National Bank OF Illinois and l in
structed him to publish notice to creditors
TO prove claims. He informs me that the
clearing house committee will advance rs
per cent. on evidence of claims. Notice
will be published at once, and II claims are
proven Immediately / shall within thirty
days be able to pay very considerable
dividend. / appreciate the action OF the
clearing house In offering to advance on
such certificates"
The decision of the clearing house com
mittee to refuse clearing privileges TO the
National Bank Of Illinois, and also to re-
fuse funds by which the bank could have
gone into voluntary liquidation was chiefly
due to the astounding discovery that the
hank had loaned $24O0,OO0 TO the Calumet
Electric Street Railway Company on It's
bonds as sole security This loan exceed
ed the banks capital and surplus. An
other account which caused the bankers
TO hesitate was stated to be near 10000
the debtor being 70. 8. Dreyer q Co. Robert
Berger, the only partner OF Mr.. Dreyer,
Is a son .in-laW Of George Schneider pres
ident Of the failed national bank. There
was two other big loans which were con-
sldered poor collateral
II Is reported that the bank has on hand
about 45 per cent Of its deposits Of Si1.-
100000, and there IL general confidence that
depositors will be paid In full In a short