The San Francisco call., 1896-12-21
SUSPENSION OF
A NATIONAL BANK
Capital Imperiled by Some
Most Unwarranted
Loans.
Other Failures May Follow the
Collapse of the Well.Known
Concern.
There Is Tweivs Million Doll ars in
Deposits That May Be Tied Up
by the Failure.

CHICAGO, ILL, Dec. 2L-The National
Bank of Illinois has been suspended by
the clearinghouse. 1t is said the bank
will not open its doors in the morning.
The officers OF the National Bank of Illi-
nois are: George Schneider, president;
Waiter L. Peck, vice president; William
A. Hammond, second yice-president, and
Carl Moll, cashier. The bank is located at
lis Dearborn street.
The action suspending the bank was
taken at specially called meeting of the
Clearing House Association. The meet
ing was called at the residence of Ebridge
Keith, who is secretary of the committee,
and was held shortly after midnight. 1t
was shown that the bank had made un-
warrantable and injudicious loans, and
that in consequence the capital and sur
plus of the bank have been seriously i'm
periled. 1t believed that many failures
will result from the collapse of the Ma
tional Bank of Illinois.
The resolution adopted by the Clearing
house committee is as follows:
WHEREAS, The attention OF this committee
has been lately called to the administratio on OF
the affairs of the National Bank of Illinois,
anu II now appears, through StdGSIuentS udue
to this committee by one of the vice presidents
of said bank and from the reports of the Ma
tional Bank Commissioner, that by reason of
unwarrantable and injudicious loans the cap
itRl and surplus of said bank is seriously i'm
periled if not entirely lost; now, therefore,
Resolued, That under the powers conferred
upon this commit by the bylaws of the
Clearinghouse Association of Chicago, we 90
hereby suspend said National Bank OF Illinois
from the privileges of membership In said as
sociation. to take effect Immediately.
ResoIved, That the secretary of this COM
mittee be and he is hereb by instructed to send
a copy of these resolutions to each member of
the association and to report the same at
general meeting of the association, TO be held
on Monday, December 21, at 3 80 O'Clock P. NJ.
In taking this action the committee deems
1t proper to say:
First-That the cash reserves of the bank
are within the requirements of law, and if as
q result of this action said bank should sus-
pend payment and liquidate its liabilities a
large and speedy dividend Will be made avail
able 10 creditors.
second-It is the declared opinion of the of
fcers and directors of the bank that its re-
sources are ample to pay all its Liabilities IN
full, and it is the opinion of this committee
that adjusted claims against said bank NAV be
considered ample collateral security for loans
of rs per cent OF their face value. And IN
event of liquidation of said bank we will rec
ommend to the association banks an arrange
ment whereby such loans may be available to
creditors of said bank as their convenience
may require.
PIERRE LoMARD,
LYMAN ]. GAGE.
ORION SMITH,
C. J. BLAIR,
E. G. KEITH.
The National Bank of Illinois is the
second largest bank in Chicago and was
established in 1871. 1t has a capital stock
of $1,000 900 and a surplus of $1,000, 900
and 100000 undivided profits. The
amount OF money deposited in the bank
is $12,OoO,0OO
There is large numhe of big business
firms who transact business at the Ma
tional Bank of Illinois and it is believed
that several failures will follow in day
or two. The rumor gained credence that
one of the State-street department
stores is seriously involved and may not
conclude its Mondays business.
President Schneider, who is also treas
urer of the Chicago Associated Press, de-
clined to be seen, and numerous rings on
the bell in his Michigan-avenue home
were unanswered.