The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-12-21
ECKELs' STATEMENT.
Bank Comptroller Says He Admon-
ished the Managers of the Bank

Bank Comptroller says he AQmOn-
ished the Managers of the Bank
Washington, Dec. 21-ComptrolIer
Eckels today gave out the following
statement concerning the failure of the
National Bank of Illinois: II am ad-
vised by Bank Examiner McKeon that
the National Bank of Illinois has closed
for business and is now in his hands
for the comptroller of the currency. In
order to prevent any trouble in proving
claims against the bank and to obtain
for creditors at an early date the larg-
est part of the amount due to them L
have appointed Mr.. MckeOn tempor-
arv receiver with telegTaphic inStruc-
tions to publish notice of proof of
claims at once The clearing house
committee of Chicago had advised me
through the examiner that the clearing
house will Immediately advance rs per
cent of the face of approved claims
and thus give creditors Of the bank i'm
mediate relief and prevent unnecessary
disturbance of business. / have also
directed the receiver while securing all
loans of doubtful character, to exer-
else the utmost caution so as to not
work any hardship upon the business
interests Of those dealing with the bank
and depending upon it. The advance
made by the clearing house, it is to be
understood. is not in payment of such
claims in full, but simply a loan OF
such an amount with the certificates
as collateral security. The failure of
the bank is due to injurious, reckless,
and imprudent methods followed by the
officers and not checked by the dlrec-
tors though their attention had been
individually called to the same and
over their individual signature they
had promised to remedy the weak
points in the banks condition. The
largest source Of failure is the bank
holdings Of Calumet Electric street
railway stock, the fun amount OF
which now cannot be stated for 1t IS
discovered that 2. part of such holdings
hut concealed in another account rms
and other large @ooubtful loans mad
been called by special letter TO the at
tentiOn Of the officers and directors
and specific improvement promised
In June last on the surface there
had been an Improvement made Bank
Examiner NcKeOn on November 30, e22-
arqined the bank He found that the
books showed that the loan 10 the Cal
uuet Electric company ana OtHef Slllll-
lar loans had been increased ana lhe
promises of officers and directors had
no. been carried out. Upon this report
I prepared a letter addressed to the
president and directors, which 1 sent
to the examiner on December Il 70 De
read to them at a meeting called Tor
@This letter reviewed at length the
condition Of the bank and the Iallure
Of the promises made to be fuIhlled,
II emphasized the position taken by
this office that q decided and radical
had to a at once made and nOt1-
80 n, ,7i1.ac+crs with 4 fuu and com
ls4 eie ~ ~, +ba nart If the exam
pIeIe ail5ls 7l 80 i he hank demand
lheT ol lLle liIel eleeSA7 . -
ms a. eeelllloal = 5 r ,f,-e7 ,,o+iea from
-,a,.s maj fhe rllrnors Of the
slls ,3+ior ba5 reacbed the clear
80 - 1,,,ea ao,9Tl1i+tee and thev desired
- til7 la15a III ,.ano5-t read to them. or
" nt5F - -, -. IS57t el,eroasta5 tba+
lSl9d - - - - !, ., l145ie.e,,.e ~ +f,a
9glore u9li15 So ~ II T11inoie ana obtain
II 1St!lDlifl i1sslllA itl9,, rT1bis v.,as obtained
thelr acqllescele. - +ha b,1i+ [las
ana lAe NiSs a1-ie+ commit
Y ~ e.,,75f5el5 szeaIed led fo the
teS- - - s-1-es,,s,17 fTor7 fbe clear
u - r2f7isa action was taken
-. lil5 +l,a evaT9ineI- feIegraD1ed ms
~ m w. -
- - 80 +.,7 +l,a+ in view Of tne large
--1.t7s7 p i,7si,-a1 eg7..at care sho17Id he
- ys7 80, ~ the risk If taking
. alI.,,,ge f,,n7s might he provided
p + - Il 7e+,,,,7 q r. II do 81 ia af-