New-York tribune., 1896-12-24
WESTERN BANK TROUBLES.
TUE PUBLIC SCARE PRACTICALLY OVER
IN CHICAGO

OWNERSHIP on REcoRD-GEoRGE A. WEISS
AND TWO OF HIS COMPANIES GO DOWN
FUNDS OF IOWA BANKS TIED UP.
c,,caeo Dec 2s.-The arrest Of z. S. Dreyer ana
pober Berger. the discharge Of the receiver OF the
poseIand Bank and the continuation OF the savings
,Sos,,ors' run on the Illinois Trust and Savings
p.nk and the Hibernlan Banking Association were
10 nrncipal developments in the bank troubles to-
d.v The public scare is practically over and COM
,c,e restoration Of confidence seems 10 nave been
effected.
-, orr.npement OF the Police Department. counsei
..- .ba defendants and Justice OF the Peace W. l.
rr.u the accused private bankers. EDWARD o.
,,.yer and Robert Berger. entered Justice Haii
,'a,. courtroom at . o'clock this afternoon De-
Live FAY. who held the warrants which r. T.
v.rnedy A saloonkeeper and depositor AT preyei
r. a bank had sworn TO. announced l"d' ''ie
90, were under arrest. The charge IN each case j.
.h., the bankers received deposit OF $ioo at '''e
,oss AZ business last Saturday. knowing at the time
~ Nv. .hay we're insolvent The defendants were ac-
n.ried bv Adolf Kraus. their lawyer. and Charles
~ Wacker. OF the Wacker & Birk Brewing COM
,,v The latter signed the bond OF the banners ia
~. sum CT $500 each for their appearance III 'us'oe
,Iaw. cour, on January 2. Kennedy says ne Is ac'-
- for himself only but his action is regarded as
"sroat,,re and ill-advsed by those who believe 'he
never & Co failure could not be foreseeh' levy
,,.,.or counsel for the National Bank of Illinois
- D-ever Berger. said TO reporter TOT 'i'e
I-,red Associated Presses this afternoon
..rovar g. Co. cleared through the National BANK
, ,nro,s At the c:ose of business Saturday after
" - ,,ere WAS not the slightest doubt entertainer
-, a-n, or even the shadow OF suggestion that
~ " ~ n,o,,ld not 60 on as usual Monday morning
y,-,,nou. clearance bank they couid not posS'''s
, nm The end OF the National BANK OF i"'ho's
ns as sudden it was amazing AS one OF us cou''
- had not the slightest intimaton that there was
,,,sN 1oa Sal
-, Dreyer & Co. did not know until Sunday that
. clearing hank was in danger. They then took
- - n,bich resulted in the receivership. The re-
cs;ver has all their property Ine agitation d' pres
an, existing has made some men precipita'e anu
,.s-v In their criticism. their action ana tieir ao
Vice" ~s ,or.v-
i"e 80 yras TINT OF John II. Nichols. who was
oi,,ad receiver Monday afternoon for Frederick
,I,,.rsana proprietor OF the Roseland savings
1,enk Of Roseand which cleared through the Na-
,iona Bank OF Illinois. The receiver appeaieu
before Judge Hancy this afternoon ana fepor'eu
s.r were assets Of $50 OOo in cash and real estate
snd liabilities of s5eoc Sufficient money mad been
,assd ~ carry on the business. ard the Judge DIS
cbaryed the receiver The bank will open its doors
tomorrow morning
The rms on the Illinois Trust and Savings and
1ybernian banks continued to-day IN lesser uesree'
.na when the usual closing hour arrived there
.ha scare as a run No vestige Of the excitement
e exnected after Christmas Day. The officers or
the Illinois Trust so confident that ire run Oh
their bank had come TO an ignooie eno tha', aite'
having out under the sixty-day notice rule lot oe
nositors Of over 800 for hour or So they decided
to remove all restrictions. and began payment IN
full to all depositors in line At the hioern'ah
Bank the notice was adhered TO-
staff Of accountants In charge OF an expert
was put to work during the day at the Dreyer q
"a and WasmanndorN Heinemann banks ana
next week a report is expected which will give an
Intelligent idea Of the condition or botn houses.
vice-President Hammond. who is charged with
milling the wool over the eyes Of the directors or
the defunct National Bank. would not tax lot
publication when seen to-day at MS hVahs'oh
home but friend, speaking for him. said:
"W A. Hammond is 10 be made the scapegoat
NJ the failure of the bank He is broken man to-
day but he is not any more 10 blame for the
amount Of money loaned on Calumet Electric Sc
curity than are the members of the Finance CON-
mttee OF the bank and its directors II was neces-
sary for the purposes of man connected with the
South Chicago City Railway and an officer OF one
Of the biggest banks in Chicago to depreciate the
Calumet road stock and to this end these two
men accomplished the wreck of the National Bank
OF Illinois Members of the Finance Committee
and directors OF the failed bank knew the full
amount OF the Calumet loan. and hoped TO make
Individual fortunes on the success OF the venture
They we're given stock Of the road. and the pur-
pose of the deal TO sell the property. and be-
sides paying the hank loan. make neat sum Tor
tween the General Electric and South Chicago
city Railway companies 10 get control OF the Saio ~
met bonds The latter road will be worth S.yJ'vr
in five years and the outsiders who ruined the
hank know it, but they wanted to buy the bonds
cheap. ,,,., -, r,,o,.o.or
Company. the George A. Weiss Mailing and Elevate,
"a he o compsnes when are intimately c5nnected
{- biciOe nd fndf
court together. The assignee OF the American Prev
Fiji Tte G' and Trns; COMPANY The George A. Weiss
Mailing and Elevator Company and George A. weiss
10 inS wss ed as 10 the assets and
The failure Of the two corporailon was the re-
The ~ two ' Companies were borrowers from the bank
and indebted to 1t when 1t failed 10 the amount
An officer Of the illinois bank is charged with re-
ssnE q fss4s for mafaf ksSns q the
pany Some OF the directors OF the bank assert that
they not fully Informed Of the Calumet loans ms
until Saturday. believing them 10 be nearly $l1UOW
less in the aggregate than they proved 10 be
Another rumor that gained some currency: was one one
National Bank Of Illinois were unsecured. This was
d to be % 'e
IN both OF these the bank had been protected
ny ro that
ing back Of them but personal notes; .,.., .,
borsSeIy on the subjec; declined to discuss the
matter at all The officials stated that the bank was
N me examiner hands ano .n. ,be
Des Nones Iowa Dec. 23-Des Moines banks have
been called the aid Of numerous country banking
customers who were embarrassed by the failure OF
the National Bank OF Illinois. The Chicago 'nstitu-
ton had large number Of accounts with Iowa
ts nks' scattered all over the State When 1t closed
they feared their drafts on II would not be paid. and
began wiring Des Moines bankers to intervene with
their Chicago correspondents and arrange 10 care o
the paper OF country institutions until they could
make new arrangements In Chicago The indications
are that Iowa banks will In no be injured be-
yond temporary embarrassment Of this kind. but the
number that have made such requests Is several
THE SITUATION IN ST. PAUL.
pEposIToRs IN THE BANK OF MINNESOTA
LIKELY TO LOSE LITTLE.
r.., n. The machinery for closnc I'm