Omaha daily bee., 1896-12-24
DIRECTORS KNOW yOTHlyG
Express Entire Ignorance Of tho Big Loans
Made by the Bank,
AllEGATIoa3 or A GIGANTIC FLOr
W. i. Hummund, second Vice rresi-
dent of che Illinois National
Accused ul BcinE the Tool OI
thr7 CunspIrutur1.

Ing The wool over the eyes u the directors
Of the Gefunct bank, would not talk today
Wnon seen In his home at Evanston.
Through an intimate friend he made a state
mgnl which is calculated to !usulpate several
OF the directors as we'll as two or three men
| who are not connected with the market.
The Post makes the above statement and
/ gives the following;
/ Nv. A. Hammond is to be made the scape-
/ goat Of the failure OF the National Bank Of
/ Illinois," said the friend Hammond is Il
/ broken man today, but he is not any more
| to blame for the amount of money loaned
/ on Calumet securities than are the mem
bcrs OF the finance committee Of the bank
and it's directors. 1t was necessary to the
! purposes of a man connected with The South
| Chicago City railway and an officer OF one
! OF the best known banks of this city to
! dcpruciate the Calumet Electric roads
stocks, ard to this end these two men
brought about the wrecliing OF the Ma
/ tioual Bank of Illinois
"Of the banks funds $2,475,OOO had been
| loaned on the Calumet securities The plan
| for wTeckng was brilliant-cauSe an inyes-
! tigation, depreciGte Calumet stock and buy
| it; then combine this valuable property Of
SiXty-thro miles of new track, equipment
ana franchise with the South Chicago rail-
! way, eventually combining with the Chicago
! City railway, and make fortune OF mil
! lions within five or ten years.
THE truth of the matter is members of
the finance committee and certain direc-
! tors of the National Bank OF Illinois nave
| known the amount of the Calumet loan
! and had hoped to make individual fortunes
on the success of the venture Four years
! ago w. V. Jacobs, who started the Calu-
met 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 fun knowledge of the
! finance cor,2mitieo Of the banl, and by Prcsi-
| dent Schneider himself. This loan wgs Too
! Iarge r,,t IL mad heen surnosed to bo for
/ 80 y,cel,s MI ana tbn b,nl, 6ndirr- itspIf
i,,,,,I - 1I,,S. I,i 80 ,I,1 n, is ,rin
! 49,, ~ ~, 5t.,,, ,'', -. ,r, o,,I,,I
az ,m,Si ~ - W. H. ~ ,t,1t or t,,
! .,."'",'' 'Ni'"' - -,
.Iy,,u'i iIrN " SSr6 m H1,o,,i .s,
shoME D''ylS IS5'-c'i.e -, at 80 So t
| o. g, - s,I ,i,b v,,,., Iii ,,.,,,
."Suv' ' i r tb titi ,,',
luuaS ~ ~, VI 'uu M h,so,l ,',v.
| PL,,sS ne "a'1 he s""uIu nv - no Ss5 ''ll,y11 i
| "|EI'.''' ~ ~ i'''S, "t." -, - -, cIi,' ~
htuN'" w. @ 1u, ] C]I,tE It,T iI ii'p ,.sit -
| H'lu, ~ "S IiS'v .''i vi -, - -,
! most c"HerSs aiIHoush ne haI o,tn most
m moi Lhu HIo,niHs ltiN'"s U,Gl tiG 'gio uoIt
! WIN lhe DaIN P.IP.e. l''tlt - HV piL,PeI.
OF the park rgsuinlnSi ,ll!;; ana II Is by no
means certain lla' II WI pay It's "'PoS''oFS
in full as az first stated
| Never did | sre on the book kept for
the purpose of informing the directors of
| the bank as to who were applicants for
! loans the name of the Calumet Electric
! railway"
The above statement was brought out in
| a conversation with Director Page of thy.
defuuct Naticral Bank OF Illinois yOday MS
! to how such large loans were made by the
| bank and ostcnsibH given with the sanction
| OF the directors. Mr. Page went on to OK
! plain how the business of the bank as far
as the directors were concerned, was con-
Quoted: Said he THE directors appointed
from among themselves what YOU might
| term for convenience sake an auditing COM
mittce. The plan was to let one director
drop out each month, some other taking
/ his place. Each day the committee woul.
meet at the bank, its business being to
| pass upon the applications for loans
record of these applications wGs kept In a
| book designed for the purpose. in this
book was also kept opposite the name or
each applicant a record of the collateral
! offered to effect the loan.
when the committee was ready for bust
| ness Mr. Schneider would come into tht
room, bringing with him this book and with
| it another book in which was recorded the
! daily balance of the would-be borrower and
! also a record Of how much he had pre-
| viously borrowed.
-, ou say 'ha' MI Schhe'uer useu 10 Drins
'niS III ,i.,, c,, .
| p, AlnIuS, @ @tn,al '"n's' St,, Ss'HUtn "as Hr;
i iioili.''pnu III a. ~ ~. "a ouu
! t.ines ne N"ul" o' Ia',Su ~ w ali5"e' sui.e
qus".'om q 90 " al, "P9iaI""' ! BUSINESS OF 10
cteal @ uP potmI "SorL Sol"e Coil3le'ai
uneIeu' pu' oap's'l 9Si,"SIuLl was diIilusI
aifmaSS lnu peate I y, - tnt u'HnS, ,i Ie Co,h
n@tiI'Gs @ E "ou!u . ION uo "a Snr oooNs CuItluliy
anu anu az sum a''So I, tS Sanl,,oh q
loa"' III o'Ltl' t"e Ioa" I asNou % LuI Moutu DC
cuS uuMn anu lh T'siS "mSlt tne uPP,Ican,
ana stcuIlty "us an LlEnI tuc accommodation
was oi s. SouISe Eta",su,
1iu lng np' aSh S, 10 see me
! acluai cuIIdsS' al ou'Ieu on ulu IL SIhply
| taAe lne WoTu o. -lr. nthue'ueE or M nam
! mona thal Iue STl1II,! was aCluaiIy IN the
| p1hk ana dtluals "Ial IT. I"IpuIted 10 DC
| III Ime H%isuio'auuu'n menu o'1h
we Hdu DgeH III pHI'utss win Mr
acnnelter and MI iian'iao."' many OF us ler
/ lHHy Slals' 10 nave Iu"ue Such demand
| u' tnCn "uu'I Hd,e HctI pt.SoHal insult
/ Nc.c - my 'Tc Susp'yionS VI ,ne commit zee
~, - ~ - se Su'"s i''"'u 10
m 1,,, - ~ t+o,,,,, .,,,
-. w. al, = co., tbo -, 90 10
Calumet Electric company appear on this
What have YOU TO say about the published
statements regarding Mr.. Hammond'S con-
heciioh with the Unexplained transacIions?'
lney are an Tue, every one OF mem.
pL'E EN A'>p iAh MEX - "'ENDhR'
II >. bIeytF ana MS partner, kODeft