The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-12-22


An Examiner Named.
Chicago, Dec 21.-The closing of an
institution which was considered to be
the second strongest national bank in
Chicago, quickly followed by the fail
IRE of three private banking houses
which did business with it, caused a
furry of excitement in financial circles
today, and led to runs on several banks
by timid depositors.
A flood Of rumors relative to other
banks and business firms added to the
intense nervousness which Dervaded
all classes of people long after banking
hours and the close of the courts.
OTHERS GO DOWN.
The banks which were closed follow:
National Bank of Illinois, capital ST.
900. 900; liabilities, S11 100000.
L. S. Dreyer & Co.. bankers, mort
gage brokers and real estate dealers
liabilities, 81, 300, 900; estimated value OF
assets, s1.650.O00.
Wasmansdorff & Heinenmann, bank
ers and mortgage brokers-liabilities
SAG, 900; estimated value of assets, $3.50,
600.
Roseland Savings bank. Roselin, ILL.,
Small capital and assets estimated to
equal liabilities.
All the private banks which closed
their doors cleared through the Ma
tional Bank of Illinois, and the big
crash compelled their suspension TO
conserve their assets and protect cred
itors. The two private city banks went
into liquidation through receivership
proceedings in the courts.
REASSURING ACTION.
Reassuring action was taken at a
largely attended meeting of the clear
ing house association. which was held
after banking hours this afternoon. The
following resolution. offered by eX-
Comptroller of the Currency Z. >.
Lacey, president of the Bankers Ma
tional bank, was unanimously adootei:
THAT the clearing house committee,
after calling to their aid such other
persons as they NAV desire, be re-
ouested to formulate a plan which will
enable the creditors of the National
Bank of Illinois to- avail themselves Of
the offer of the associated banks 70
make advances by way of loans to said
creditors to the amount of IS per cent
upon properly proven claims.
The chairman of the clearing house
committee stated that the readiness of
bankers to do this was so evident that
it was not probable any formal organ
fzation to accomplish the object set
forth in the resolution would be neces-
sary, although the committee appointei
will give prompt attention to the duty
imposed on them.
EXAMINER NAMED.
William F. Drummer. president CT
the association and vice president OF
the Northwestern National bank, read
the following telegram, which ne nau
received from Comptroller OF the Cur
rency Eckels, dated Washington;
II have appointed Bank Examiner
McKeon temporary receiver of the Ma
tional Bank of Illinois, and Instructed
him to publish notice to creditors 10
proye claims He informs me that the
clearing house committee will advance
* per cent on evidence of claims No
tice will be published at once, ana II
claims are proven Immediately, shall,
within 80 days, be able TO pay very
considerable dividend apprecia!t e
the action of the clearing house in
offering to advance on such certifi-
Gates
The decisions of the clearing house
committee to refuse clearing privileges
70 the National Bank of Illinois. and
also to refuse funds by which the bank
could have gone into voluntary hqul-
dation, was chiefly due to the astound-
ing discovery that the bank had loaned
80 400 900 to the Calumet Electric Street
Railroad company on its bonds as sole
security. This loan exceeded the bank S
capital and surplus. Another account
which caused the bankers to hesitate
was stated to be near S5OO,OOO, the
debtor being f. S Dreyer a Co.
Robert Berger, the only partner of Mr..
Dreyer, is a son-in-law of George
Schneider, president of the failed ma
tional bank. There were two other big
loans which were considered poor col
lateral.
NECESSARY SEQUEL.
The necessary sequel to this refusal
IN lend aid or to continue clearing priv
ileges was that the big national bank
on Dearborn street failed to open its
doors this morning for public business.
This was anticipated by the action of
the clearing house committee, but there
was a small knot of anxious depositors
waiting on the marble steps of the en-
trance when the big iron screen in
front of the doors was rolled up at
o'clock to admit several clerks. At $3.50
o'clock, a card was hung on the grill
work, reading as follows:
This bank is IN the nanuS OF ma
tional bank examiner BY order of the
comptroller of the currency"
This cherries announcement for de-
positors 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 been given Saturday on the
suspended institution.
The following private and other
banks made their clearance through
the Illinois National: E. S. Dreyer &
Co.: Farson, Leach & Co.; Garden City
Banking and Trust company; Green
baum Sons; F. r. Haas & Co.; Interna-
tional bank; Leopold Mayer & Co.;
Oakland bank; Oak Park State bank;
Roseland Savings bank; w. G. Slough
ton & Co.; Wasmansdorff & Heine-
mann: West Side bank; Siegel. Cooper
& Co.'S bank; Adams Epress company s
bank: cashier checks on Drovers' hank
On the announcement of the Illinois
banks suspension from the clearing
house. all the foregoing banks, with the
exception of Dreyer-F arson-Leach,
Wasmannsdorf and one other made
other arrangements for clearing The
Dreyer & Wasmannsdorf business
passed into the hands of the security