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

part of the large depositors that the bank $
capital and assets had been seriously inn
paired, The heaviest creditor Is the mu-
nicipal corporation. City Treasurer Adam
Wolf has $650,000 OF city funds o. deposit
there. The bank was one of TiVa Which
are repositories for city fuuls, and eacn
Of the banks take turns by the month in
cashing city checks. 1t was the failed
banks turn TO pay out IN January. MT.
Wolf said he had no serious concern apout
the safety Of the money ana has received
ample assurance from the other city banks
which hold city money that the corpora
tion will not be embarrassed.
City Controller Wetherell, who is also
vice president of the Globe National Bank,
expressed the utmost confidence in the
eity's ability to meet al Obligations
promptly. He declared the city was never
In better condition financially and the lail-
ure would not embarrass II in the payment
of interest money the first of the year.
The West Park board of which Carr
Mol, cashier OF the failed national bank,
IL commissioner, has been caught 10 the
extent OF $500 900. and a large amount Is
on deposit with b. s. Dreyer who Is treas
urer of the board
County Treasurer ID. II. Kochsberger
has 100000 OF county funds tied up In the
national bank. and Fred M. Blount, the
newly appointed treasurer of the drain
age board had over $4,000 of district
funds at the bank, whose officers were
on his bond The bank officials were also
on the bonds of the city and county and
West Park board treasurers,
The fact that the bank officers were
bondsmen of these public officials was a
strong reason for the decision Of the other
banks to force immediate closing of the
bank before the funds were deposited.
Dreyer a. CO. have been in the banking
business here for score OF years ana
there is no more prominent German
Dreyer. During all that time the bank
has cleared through the National Bank
Of Illinois r. The frst intimasion i winch winch
bank might not resume was yesterday
afternoon, and immediate steps were
taken to protect their interests No pref
erences, direct or indirect, were given TO
any one. After the appointment of re-
ceiver, many generous offers came from
New York and other cities.
Wasmansdortf a. Heinemann stood high
in the community as private bankers. The
firm was established on the west side
more than twenty-five years ago. Ger
mans did business chiety with both me
private banks. The Wasmansdorff estate
will REQUIRE conservative and cautious
handling to pay dollar for dollar OF their
liabilities, about 100000 is for savings de-
posits.
Dreyer & Co had no savings deposits.
The misfortune which has oVertaken both
the banking firms Is the cause OF general
regret and sympathy Mr. Dreyer came
to Chicago more than thirty years ago
from Germany.
Farson, Leach & Co are the chief own
ers of the Calumet Electric road, which
is a new and expensive enterprise, en-
bracing several towns southeast from
Sixty-third street. The loan Of 2,4OOOOO
obtained from the national bank was used
to build and equip the ROAD, Whlch ls now
In full operation.
The heaviest run on city banks during
the day was directed at the Garden city
Banking and Trust Company. They with
stood the attack OF 200 anxious deposltors
and tonight gave out the statement that
they were thoroughly prepared to pay ey-
erybody who wanted money tomorrow,
though they believed the worst was over.
The bank has s2,0O0O00 in deposits, but the
savings department Is not large. County
Treasurer Kochberger is director and
there Is a large amount OF the county
money there.
The financial uneasiness on the part OF
the bankers and depositors has been ag-
gravated lately BY the numerous failures
of building and loan associations and the
exposure Of their financial rottenness.
washington Dec 21.-controller Eclxels
to-day in a statement regarding the fall
ure Of the National Bank Of Illinois OF
Chicago, said: "The failure OF the bank
is due to injudlcious, reckless and impru-
dent methods, followed by the officers and
not checked by the directors, though their
attention had been individually called to
the same, and over their indiyidual slg-
weak points in the banks condition. The
largest source Of failure Is the banks
holdings of the Calumet Electric Street
railway stock, the full amount OF which
cannot be stated, for II Is discovered that
a part of such holdings was not made to
appear on the books, but was concealed
IN another account This and other large
and doubtful loans had been called by
sDecial letter to the attention of the Of
ficers and directors, and specific improve
ment promised a year since; IN June last
Improvement but when Bank Examiner
McKeon, on Nov. 30, examined the bank
no found that the books showed that the
loan 10 the Calumet Electric Company
and other similar loans had been In
creased and the promises OF the officers
and directors had not been carried out
.IIpon this report l prepared letter
addressed to the President and directors,
which sent to the examiners on Dec. IA,
10 be read to them at meeting called for
this purpose. This letter reviewed at
length the condition of the bank, and the
failure of the promises made to be fulfill
ed 1t emphasized the position taken by
the Office that decideu ana Iaalcai III,
iied the directors TO take immediate steps
TO put the bank In condition The letter
was presented 70 the directors with a
full and complete analysis on the part OF
the examiners of the matters In the bank,
demanding attention. on Saturday 4 re-
ceived notice from the examiners tnat
ruuors Of the banks condition had reach
ed the clearing house committee, and they
desired to have his report read TO them.
ordered II to be done. but suggested that
before doing so he see the officers of the
National Bank of Illinois and obtain their
acaitiescence. This was obtained and the
vice-president OF the bank was present
condition revealed led TO the resolution 10
suspend from the clearing house. Before
action was taken. however. the examiner
telegraphed me and in reply / suggested
that I'm view Of the large interests inVolv-
ed. great care should be had, and even at
the risk Of taking some chances, funds
might be provided IL II was deemed safe to
do so TO afford voluntary liquidation. The
assets Of the bank were examined ana ITS
management as shown by the examiner
considered, and as a conclusion 1t was de-
cided that the bank should be suspended
from the clearing house and funds not
furnished for voluntary liquidation. Three
OF the banks directors were present at
mn I'm View Siss OF everything / am convinced
that the clearing house committee acted
iudiciously. The management on the part
OF the officers and directors has been, to
state Il mildly grossly negligent. The lia-
bllities Of the bank are large, but by care
ful and judlcious management the loss
entaiied upon creditors need not be large,
IL any. Every measure will be taken by
the clearing house and the controllers Of
fee to prevent other banks or business
failures and unnecessary monetary string
ency. Already all outside banks having
the National Bank OF Illinois as a reserve
agent have been notified by telegraph %
the 10 per cent. clearing house arrange
ment A large amount OF difficulty can
be prevented II these depending upon the
bank of Chicago and elsewhere affected
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