New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-12-22
A BIG BANK GOES DOWN.
THE ILLINOIS NATIONAL. OF CHICAGO.
FORCED TO SUSPEND.
ITS LIABILITIES EXCEED sli.Oco. o.OOc--THREE OTHER
CONCERNS DRAGGED DOWN IN ITS WAKE
-RECKlrSS MANAGEMENT THE

I = L.
which was considered the second strongest Ma
.ioral bank in Chicago. quickly followed by the
fa;,u-e Of three private banking houses which
did business with IT. caused n furry Of excite
ment in financial circles to-day and led TO runs
., several banks by timid depositors. A food Of
minors relative 20 other banks and business
firms added TO the intense nervousness which
ncryaded all classes of people long after bank
ing hours and the close OF the courts The
banks which are closed follow:
National Bank Of Illinois; capital. 81 1000;
liabilities. sll.oooG00
= : Dreyer & Co. bankers. mortgage brokers
and real estate dealers; liabilities. S;'"ooV, es-
,in,sted value OF assets SlG3oW".
Wasn,ansdorN & Henenann. bankers and
mortgage brokers': Liabilities. S4lGooo; estimated
,alue ~ assets. $j5000O
p,selari Savings Bank Roseland, ILL.,. small
genital and assets estimated equal TO liabilities
All the rrivate banks which closed their doors
c,sared through The National Bank Of Illinois
aud Tho big crash compelled their suspension to
conserve their assets and project creditors. The
,vo private city banks went into liquidation
through receiyership proceedings in the courts
REAssJRING ACTION BY BANKS.
Reassuring action taken at a largely
attended meeting Of the Clearing House Asso-
citation which was held after banking hours this
afternoon The following resolution, offered by
an ex-Controer of the Currency. L. $. Lacey.
president of the BANKERS National Bank. was
unanimously adopted:
That the ClearinC-House Committee after calling
be reo,ee;ed TO formulate a plan which viii enable
crcdi,ors Of the National Bank of Illinois to avail
make advances by way of loans TO said creditors
10 the extent of 80 per cent upon properly proved
Gains.
The chairman Of the Clearing House Commit
:se said that the readiness Of bankers TO do this
was so evident that it was not probable any
formal organization 10 accomplish the object set
forth in the resolution would he necessary. al
though the committee appointed will give promp.
attention TO the duty imposed on them.
William F. Dummer. president Of the associa-
ton and vice president Of the Northwestern Ma
tional Bank read the following telegram. which
he had received from Mr.. Eckels, Controller or
the Currency dated Washington:
have appointed Bank Examiner Mckeon tenn tenn
uorary receiver Of the National Bank OF lIliioS
TO prove cams lie informs me that the Clearing
House Committee will advance 70 per pNla zen, W Oh one
and II claims are proven Immediately. shaI VIII
,hirv days be able 70 pay very S fIeaTing
House in Offering TO advance on such ce'''hcd'es
The decision of the Clearing House Commit
tee 10 refuse clearing privileges 10 the National
Bank of Illinois, and also to refuse FUNDS ny
which the bank could have gone into voluntary
,iouidation. was chiefly due to the astounding dis
covery that the bank had loaned S2,loo,ooo 10
the Calumet Electric Street Railway Company
on its bonds as sole security. This loan exceed
cd the banks capital and surplus. Another ac-
count which caused the bankers TO hesltate'
y,as stated to be near $500 OOO the debtor being
he only ma
ner Of Mr. Dreyer. is son-in-law of George
Schneider. president of the failed National bank.
There were two other big loans which were con-
sidered poor collateral
The necessary sequel to this refusal 10 lend
aid or to continue clearing privileges was that
he bic National bank on DearbOrn-st. failed TO
omen it's doors this morning for public business.
This was anticipated by the action Of the Clear
Ing House Committee. but there was a small
knot Of anxious depositors waiting on the marble
stems Of the entrance when the big iron screen in
from, Of the doors was rolled up at O'Clock to
admit several clerks
N THE BANK EXAMINERS HANDS.
At $50 A card was hung or the grill work
reading as follows
This bank is in the hands Of National Bank
by order Of the Controier Of so Currency.
This cheerless announcement for depostors
WAS quickly followed by the posting Of notices
that certain private banks and business firms
would clear through other banks. or pay checks
which had beer given Saturday on the suspended
Institution
The following private and other banks made
their cearances through the Illinois Natlonal
Bank. Z s Dreyer & CO.. Farson. Leach q
CO.. Garden City Bank and Trust Co.. Green
baum Sons F. r. Haas & CO.. international
Bank Leopold MAYER & Co.; Oakland National
bank Oak Park State Bank. Roseland Savings
Bank w 6. Stoughion & Co. Wasmansdorn x
Heinen:ann. West side Bank. Siegel. Cooper &
Co.'S Bank: Adams Express Companys Bank
cashiers checks on Drovers' National Bank
un the announcement Of The Illinois Banks
suspension from the Clearing House all the
foregoing banks. with the exception of Dreyer,
Farson-Leach. Wasmansdorf and one other, at
once made other arrangements for clearing.
DFeyer's and Wasmansdorn's 5 business passed
into the hands Of the Security Trust and Title
Company receivers Farson, Leach co.
continued to do business and John Farson, who
IS president OF the Calumet Electric Street Rail
way Company who secured the enormous loan
from the failed National bank, said there
no necessity or intention to do otherwise. He
added that his house would take care Of tho
Calumet Electric through the breakers.
IL is reported that the National Bank IT Illinois
has on hand about - per cent OF its deposits OF
81 10000 and there is general confidence that
deros,ors will be paid in full in short time.
The officers and stockholders Of the bank unite
IN saying so The last report Of the bank. issued
November 80. placed the surplus AT Sl,OW,OoO.
undivided profits $4j0,W0. and total assets. in
cluding bonds. SljO46332. The attempt OF the
bank 10 realize on the Calumet Electric secuti-
ties aroused the suspicious Of other banks. and
the Investigation OF the banks condition by the
Clearing House Committee followed.
CITY BONDS TIED Up.