The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-12-24

Chicago, Dec. Exchanges and coun-
ter-charges in connection with the man
agement of the National Bank of Illinois
We're made today and engrossed the at
tentlon or the financial community to lie
exclusion OF the days events surround
;ng the big national bank collapse.
The arrest of Bankers Dreyer and Ber-
| ger. the discharge of the receiver of the
Roseland bank. and the continuation of
savings depositors' run on the Illinois
Tr,.st and Savings bank and the Hiber-
nan Banking association were the prin-
cl2al developments. The public scare is
practically over, and a complete restora-
ton of confidence seems to have been
! effected
BY arrangement of the police department
/ counsel for the defendants and justice of
! the peace, w. T. Hall, the accused pri-
/ vate bankers, Edward S. Dreyer and
Roberts, entered Justice Halls private
court room at 2 O'Clock this afternoon
Detective Fay who held the warrants
which f. f. Kennedy, a saloonkeeper and
depositor at Dreyer & Co.'S bank, had
sworn to, announced that the men were
under arrest. The charge in each case is
that the banker received a deposit of
S15S at the close of business last Satur-
day, knowing at the time that they were
insclvent. The defendants were accom-
panied by Adolph Krous, their lawyer,
and Charles II. Wacker of the Wacker &
Birk Brewing company The latter signed
the bond of the bankers in the sum of
$500 each for their appearance in Justice
Halls court January . Kennedy says
he is acting for himself only, but his
actions are regarded as premature and
ili-advised by those who believe that
the Dreyer & Co. failure could not be
foreseen. In this connection Levi Mayer,
counsel for the National Bank of Illinois
and Dreyer & Berger, said to a reporter
OF the United Associated Presses today;
WAS AMAZING.
'Dreyer & Co. cleared through the Ma
tienal Bank of Illinois AT the close of
business Saturday afternoon there was
not the slightest doubt entertained by the
firm or even the shadow of a suggestion
that they would not go on as usual Mon
day morning. Without a clearance bank
they could not possibly open UP. The end
CT the National Bank of Illinois was as
s,-doen as it was amazing. As one of
it. counsel, / had not the slightest in
t,mation that there was any suspicion
against the bank until late Saturday ght
Dreyer & Co did not know until Satur-
day that their clearing bank was in dan
ger. They then took steps which re-
suited in the receivership. The. receiver
has all their property The great agita-
ton. at present existing has made some
men precip.tate and haSty in their criti-
cls... OF their action aud advice. When
the excitement has subsidized and the ex-
ton into the estate, and then only, will
people be in position to calmly pass
judgment. The cause for the National
Bank of Illinois failure and its condi-
ton will no doubt in due time be placed
before the public. These Calumet Elec-
tic bonds, which all of a sudden have
dwindfed into so Insignificant an asset,
ave for some years been coveted by
some outsiders, and the interest on these
bonds has always been promptly met"
RECEIVER DISCHARGED.
The shortest bank receivership on rec
ord, 4S hours, was that of John H HNch-
ols VINO was appointed receiver Monday
cfternoon for Frederick Wierseman, pro-
2rietor of the Roseland Savings bank of
Rcseland, which cleared through the
National Bank of Illinois. The receiver
appeared before Judge Hanecy this after
noon and reported that there were assets
OF $4,000 in cash and real estate and
liabilities of S515O0. Sufficient money had
been raised to carry on the business and
the judge discharged the receiver The
bank will open its doors tomorrow morn
ing. !
THE RUNS MADE.
The runs on the Illinois Trust and
Savings and Hibernian banks continue |
today in lesser degree and when closing |
hour arrived there was very small line |
NO Vestige 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 IL |
noble end, that after paying out under the
6O-day notice rule for deposits of over
si00 for an hour or so, decided to remove /
all restrictions and began paying in full |
to all depositors in line. At the Hibernian
bank the notice was adhered to-
A staff of accountants in charge of an
expert. was put to work during the day
at the Dreyer & Co. and Wasmansdo-f
and Heinemann bank and next week a
telligent idea of the condition of both
houses.
.vice-President Hammond, who is
charged with pulling the wool over the
eyes of the directors of the defunct ma
Lional bank would not talk for publica-
ton when seen today at his Evanston
home, but friend, speaking for him,
sad:
THE sCAPEGoAT
'W. A. Hammond is to be made the
scapegoat of the failure of the bank.
He is a broken man today, but he is not
money loaned on Calumet Electric Sc
:urity than are the members of the
nance committee of the bank and its
directors. 1t was necessary for the pur-
pose of man connected with the South
chicago City, railway and an officer of
me of the biggest banks m Chicago, to
lepreciate the Calumet road stock, and
he wreck of the National Bank of II
inois. Members of the finance committee
md directors of the failed bank knew the
ull amount OF the Calumet ,can. and
loped to make individual fortunes on the
ucceSs of the venture. They were given
took of the road and the purpose of the
leal was to sell the property, and be-
ides paying the bank loan, make neat
UNI. for the directors. There has been
sharp contest between the General
electric and South Chicago City Railway
companies to get control of Calumet
'onds. The latter road will be worth
> 100000 in five years, and the outsiders
Who ruined the bank know it, but they ,
wanted to buy the bonds cheap
w r. Page, a director of the bank
aid:
Il never saw on the book of applicants
or loans kept at the bank for that pur-
ose the name of the Calumet Electric {
ompany. The statements published re- q
arding Mr.. Hammond's connection with ]
hese queer transactions are all true The :
uditing committee of the directory re-
ed largely on the representation made y
Y President Schneider and Mr. Ham ,
lond, and were deceived v
BANK OF WEST SUPERIOR. /
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