The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1896-12-26
CHICAGO BANK TROUBLES.
Runs Practically Eaded-Piacing the
Blame for the Crash

ter charges in connection with the man
agement of the National Bank of llli-
nois were made Wednesday,. and en-
crossed the attention OF the financial
community to the exclusion of the days
events surrounding the big national
bank collapse. The arrest of Bankers
Dreyer and Berger. the discharge of the
receiver of the Roselnnd bank and the
continuation of the savings depositors'
run on the Illinoia Trust and Savings
bank and the HibeYrian Banking assoc
citation were the principal develop
ments. The public scare Is practically
over and n complete restoration of con-
fdence seems to have been effected.
f. S. Dreyer and his partner, Robert
Berger. Of the banking firm of Il. S.
Dreyer & Co.. which failed on Monday,
and for whom warrants had been issued
charging them with receiving deposit
knowing their bank TO be insovent,
gave themselves up Wednesday,. Sub
sequently they were released by Justice
Hall in $500 bonds each. pending the
hearing OF their case. which will take
place ON January 2. Adolph Kraus, the
brewer. were their bondsmen.
The shortest receivership on record,
4s hours, was that of John III. Nichols,
who was appointed receiver Monday aft
ernoon for Frederick Wiersema. pro-
prietor of the Roseland savings bank
OF Roseland, which cleared through the
National Bank OF Illinois. The recciv-
er appeared before Judge llanecy
Wednesday afternoon and reported
there were assets Of $4,000 in cash and
real estate and liabilities OF 600.
Sufficient money had been raised to
carry on the business. and the judge dis
charged the receiver The bank will
open its doors this morning.
The runs on the Illinois Trust and
Savings and the Hibernian banks con-
tinued wednesday in lesser degree. and
when the closing hour arrived there
was not enough Of line at either bank
10 dignity the scare rs run. No
vcstige of the excitement is expected
after Christmas day. The officers Of
the Illinois Trust were so confident
that the run on their bank had come to
an ignoble end that after paying out
under the 6O-day notice rule for de-
posits of over 500 for an hour or so de-
cided TO remove all restrictions and be-
gan payment in full 10 all depositors in
line. At the Hibernian bank the notice
was adhered TO.
A staff Of accountants, in charge Of
nm expert. was put 10 work during the
day AT the Dreyer e Co.. and Wasmans-
dorff d Heinemann banks and next
week a report is expected which will
give an intelligent idea Of the condition
of both houses.
Pending instructions from Comp
troller Eckels. Bank Examiner McKeon
has taken no steps as yet 10 criminnlly
prosecute William A. Hammond. see
ond vice-presdent Of the National Bank
of Illinois. His arrest, however. is said
TO be certainty, and the charge which
will be preferred against him is TINT
OF violating the national banking laws.
Other officials are also believed TO
have had at least guilty knowledge of
these same transactions. President
Schne;der's lips were closed. il is u.s.
serted. by allowing the debts OF mis- SON
in-law TO the bank To oyerstep all legal
bounds.
The rival banks OF the National Bank
of Illinois in Chicago have profited by
it's failure. This institution had one of
the largest and most profitable country
correspondence in the west. On it's
books were also some OF the strongest
banks in New York, Boston. Phiadel-
phia. Cleveland, Cincinnati. st. Louis
npd Kansas City. and in the west many
of the largest Decentralization bank
ing interests transacted their outside
BUSINESS through the National BaulS
of Illinois. The bulk OF this corre-
spondence was absorbed by the other
banks n day after the failure.
Before the clearing house committee
had taken its final action Sunday after
noon, closing the bank, others OF the
leading banks were sending kilograms
to these correspondents. notifying them
that the clearings OF the National Bank
Of Illinois would not be accepted Mon
day. and Offering 10 open new accounts
AZ once. Some OF the bank officials spent
nearly all OF Saturday night In telc-
graphing, and Monday morning the
National Bank OF Illinois was receiving
notices from its correspondents OF their
! change.
To the First national and tho Metro.
! politan national bank fell the largest
shares Of the spoils. the richest and
greatest number Of accounts already
being transferred 90 them. The bust
ness Of local banks and firms also was
eagerly sought. The banks represented
on the clearing house committee, IN
whose hands the fate OF the National
Bank OF Illinois rested Saturday night.
were the First national. the Metropolis
tan national. the Merchants national,
the National Bank OF America and the
Merchants Loan q Trust company. The
deposits OF some of these banks had in
creased $500. 900 by Tuesday.
Rairond Ordered sold.
Springfield. ILL.,. Dec. ~ ~ Judge
Fouke. In the Sangamon county circuit