The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-12-23

i
& Savings bank, and the failure of the
Angus & Gindele Contracting COM
pany, which is credited with getting a
loan of $250.00 from the failed National
Bank of Illinois, comprising the de-
velopments of today in connection with
the financial furry.
The associated banks have taken
prompt, thorough and conservative ac-
ton TO avoid a serious scare on the
part of the public. which has millions
of dollars in savings accounts de-
posted with city banks. The Illinois
Trust leads all the local banks in its
savings deposits, having nearly 81, 0O0,-
900. The Hibernian bank has less than
SO, 100000 of such accounts. The solid
showing made by the banks which did
not lean on the collapsed national bank
had reassuring effect upon the public
today, when the morning papers We're
perused and the general feeling in the
banking community was that the worst
was over so far as those institutions
were concerned.
SAVINGS BANKS CONFERENCE.
At a conference Of the savings banks
of the city which was held when the
runs began at the HibeTnian and 1lli-
nois Trust banks, il was unanimously
agreed to adopt unusual means toward
checking what might become an cpl
demic of apprehension Instead of at
tempting to allay these scares by paying
all demands 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
Withdrawals exceeding 800.
John Angus, president of the Angus
81 Gindele Contracting company, ap-
peared in the superior court this after
noon with bill petitioning forthe ap-
pointment of a receiver. He made
George A. Gindele, secretary and treas
urer of the company, defendant for the
purpose of obtaining a receivership and
incidentally the same allegations were
made as in the Dreyer-W asmansdorff
case yesterday. The financial condition
of the company was said to be such
that receiver was needed at once to
conserve the assets and protect all in
terests. The answer filed by Mr.. Gin
dele admitted the substance of the petit
ton and Judge Horton did not hest
tate to appoint William Hill receiver.
GUESS WORK FIGURES.
According to the statement made by
the attorneys for the company. the as
sets are estimated to be worth 100000
and liabilities are placed at s250,000.
These figures are believed to be largely
guess work, however, and exaggerated
in case of the assets. 1t is said the
firm owes the National Bank of Illinois
alone $3.50, 900 for money borrowed and
the security is said to be of a class
which will be slow to realize on The
present partnership was formed in 1885,
The company had a large contract on
the drainage canal, and was the prin-
cipal owner of the Security building at
Madison street ard Fifth avenue, which
was built by the firm.
Mr.. Angus is president of the Security
Deposit company, which owns the
the treasurer. The capital stock
of the company, including the
building, is 100000. There is a mort
gage for $780, 900 on it. and it is bonded
for S150.000 secured by second mort
gage This building is believed to be
the best asset of the contracting COM
pany 1t has been in financial trouble
for a long time Part of the Lake
Street Elevated railroad was built by
the firm.
REASON FOR THE RUN.
The only reason which can be
thought of by the officers of the
Illinois Trust & Savings bank for the
run on that bank, apart from the
that ignorant people, hearing or read
ing of the failure of the National Bank
of Illinois, got il COMPOUNDED with the
only other bank in the city which has
the word Illinois in its title. In fact,
many money-seeking depositors who
hurried from their homes admitted
when they reached the waiting line
that they had heard the bank had
failed, while money was being paid
out and received under their eyes.
Meddlesome busybodies and fool
friends who had wrought on the fears
of depositors and had even accom-
lanied them TO the bank, were ordered
by police officers and bank detectives
to await their friends outside. The
lire of men and women who wanted
their money numbered 200 during most
of the five hours the bank was open.
and the curious crowd of spectators
added to the excitement. Where de-
posts exceeded 500, that amount only
was paid, and the 60-day notice en-
forced as to the remainder. While
President John ]. Mitchell said the
bank had money enough to pay all
depositors in full. he declared the
60-day rule decision would not be mis-
by those who knew the
and standing of his bank.
He believed that the run would spend
itself early tomorrow. and the fact
that there was small line at the
close of banking hours bore out his
statement.
The last statement of the bank to
the auditor of public accounts showed
resources of $50, 900.S56; capital and
surplus. s4.000,000 time deposits. s14,-
7S4,S41; demand deposits. s11,715,974.
THE HERMAN RUN.
The run on the Hibernian bank be-
gan a little later. there being no wait
ing line until IL o'clock. Small de-
positors. who could not afford to
take chances, composed the bulk of the
crowd. which extended from the pay
ing teller's window out on the second
floor of the Ashland block Ropes
and policemen were needed to pre-
serve the line intact, aud out of the
way of other customers of the bank.
The 60-day rule was enforced from the
start. There were $50 people in line !
until near the closing hour. The bank
has withstood every panic and on this
account is considered strong, and at
tracted a heavy savings account. !
President Clark said the bank had 81
per cent of it's reserve funds on hand. |
a nd cOuId stand run of two months |