The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1896-12-31
HAMMOND OF DEFUNCT CHICA-
GO BANK WILL NOT SHOUI.
DER ALL THE BLAME.
STATEMENT OF IN INTIMATE FRIEND
Says Hammond Is to Be Made Scapcgoat
for Several Equally Guilty Directors.
Bank of West Superior Fails.
Other Failures.

Chicago, Dec. DIV. A. Hammond
second vice president of the National
Bank of Illinois, who has been charged
with pulling the wool over the eyes OF
the directors of the defunct bank, would
not talk today when seen in his home
at Evanston. Through an intimate
friend, however, he made n statement
which is calculated to incriminate sew
eral of the directors, as well as two or
three men who are not connected with
the bank.
The Post makes the above statement
and gives the following:
wv. A. Hammond is to be made the
scapegoat of the failure of the National
Bank Of Illinois," said the friend. Ham
mond is a broken man today, but he is
not any more to blame for the amount
of money loaned on Calumet securities
than any of the members of the finance
committee of the bank and it's directors.
1t was necessary to the purposes of n
man connected with the South Chicago
City. Railway and an officer of one OF the
best known banks of this city to depre-
ciate the Calumet roads stock and to
this end these two men brought about
the wrecking of the National Bank of
Illinois.
"Of the banks funds, $2,475, 900 had
been loaned on the Calumet securities.
The plan for wrecking was brilliant.
Cause an investigation, depreciate Calu-
IL l...,v NON lNt in
this valuable property of sixty-three miles
with the South Chicago Railway, eventu-
ally combining with the Chicago City
Railway and make fortune of $5,00O,-
GOO within five or ten years.
"The truth of the matter is that MEM
bers of the finance committee and GER
tain directors of the National Bank of
Illinois have known the amount of the
Calumet loan and have hoped to make
individual fortunes on the success OF the
venture. -Four years ago w. V. Jacobs,
who started the Calumet road, borrowed
$4,000 and paid it up in full. After
that the road passed into other hands
and loan was made on the securities
with the full knowledge of the hnance
committee of the bank and by PRESIDENT
Schneider himself. This loan was too
large, but it had been supposed to be
for few weeks only and the bank, md
ing itself involved, either had TO take
the loss, ruin an enterprise or go aheau.
"The loan WIS increased with the full
knowledge of members of the financial
COMMITTEES. and later on IL was made
known to the directors. Members OF the
finance committee and officers OF the
bank were given stock and the purpose OF
the deal was to sell the road, and besides
paying the banks loan. making good
round sum for the directors. There has
been n severe contest between the ten
eral Electric and the South Chicago rail-
way to secure control Of the bonds OF the
Calumet road and the stocks which go
with them. and it was thought that the
road could finally be sold at something
like S3,OOO,000 or $4,0OO,OOO.
at was a brilliant idea for a man CON
nected with the South Chicago City rail-
way to wreck the bank and the men
who had been backing the Calumet
through the bank. 1t has since succeed
ed and the probabilities are that the Calu-
met electric road will be sold to the south
Chicago city road man, and the banker,
who lent his name to the scheme. VIII
make good sum out of the deal himself:
1.-THE part the banker took in the deal
was safe one. He called the attention
If the bank examiner to the fact that
Calumet securities had disappeared some
where. intimating that the National
BANK of Illinois had good share of |
hem. The officers Of the bank, finding |
hat the bank examiner was after them,
,egan to push the transaction they had |
m foot for the sale Of the securities, and
he clearing house became alarmed.
'ould the matter have been delayed thir-
v or sixty days the Calumet securities
would not have been found among the
,ank's assets. The sale would have been
ffected, probably at loss to the bank,
mt without disturbance to the puDnc
r heavy loss to the stockholders OF the
ank But this course would not suit
he purpose of persons trying to control
he Calumet road. One director in the
ank. who has been talking n great deal
ince the condition of the concern be-
anne public, took $4,000 out Of the bank
aturday afternoon. There was no ex-
use for Justification Of accounts. for the
irectors knew the amount OF the Caln-
let loan. You cant cover mp $l,OO0,-
DO loan in bank where directors do
ieir duty"
The Illinois Trust and Savings bank
ithdrew today the G0-day notice to de-
DSlIOTS L ueSudy, anu puiu AZ VhV N"hNN ]
,r their money. There was no run what
yer: some of the other savings banks
$50 Withdrew the notice, and others will
D likewise, as the anxiety among de-
,sitors has entirely abated.
T.. s. Deyer, and his partner, Robert
erger, of the banking firm of Il. s. Deyer
Co., which collapsed Monday as re-
1T of the closing Of the National Bank {
Illinois. and for whose arrest warrants
ere issued last night, gave themselves up {
day. Arrangement had already been {
AIDE for bondsmen and the two bankers
ere promptly released.
Deyer and Berger were charged with
ceiving deposit on Saturday last,
rowing their bank was insolvent.
BANK SUSPENDS.
West Superior. Wis, Dec. 3.-The
INK of West Superior, capital. $4,000, c
d $50 600 surplus, suspended operations
is morning as n direct result of the fall
es of the Bank Of Minnesota and the
itional Bank of Illinois.
A AZ. 4.sz 4hn. av,vr m