The McCook tribune. (McCook, Neb.) 1886-1936, 1897-01-08
WRECKED ILLINOIS Ma
TIONAL BANK.
DROWNED IN THE LAKE.
Evanston-Generally Held Response
BILE for the Banks Failure
Charged With Specializing
and Misuse of Funds-
Omaha Bank Closed.

CHICAGO, Jan. 4.-W. A.. Hammond,
defunct National Bank of Illinois.
called on Percy Palmer, his old friend
and confidential adviser, at 8 o'clock
last evening and talked gloomily about
his future prospects. Palmer talked
encOuragingly to him and about II
o'clock he went to his home in Evan
ston and about 1880 retired for the
night. He and his wife had been in
the habit of sleeping in adjacent rooms.
Early this morning Mrs. Hammond
noticed that the door connecting the
two apartments was open, looked into
the room and found hat her husband
was not there. His night robe hung
over the foot of the bed and his watch
was on the table, but his clothes were
nowhere to be found, and he had not
taken his shoes and stockings.
The police were notified and soon
found a w~ell-developed trail in the
form of numerous scraps of paper,
which led to the lake. A federal life
saving crew at once began a search for
the body, and at 1850 o'clock the
drowned body was found at the foot
of Dempster street pier and taken to
the Evanston police station.
CHARGES OF IRREGULARITIES.
Hammond was the vice president of
the National Bank of Illinois, and was
active in its management, in fact. he is
said t o'have been the responsible head,
since President Schneider was too
feeble to do much work and the large
loans to the Calumet Electric company,
particularly, and to others, which re-
suited in the closing of the bank, are
understood to have been made by him.
The first open charges against the
business integrity of Hammond were
made only about ten days ago. Then
he was accused of enacting the charac-
ter of a "kiter." He vas accused of
deceiving the directors of the bank
and the depositors and deliberately
violating the national bank law. His
alleged irregularities were said to
have begun many years ago, when, it
is alleged, he began to use the money
and credit of the bank in outside spec
ulations. This was done in such a
manner, it was generally reported,
that not only were the directors de-
ceived, but the bank examiners as
well. Even old employees, thoroughly
familiar with the inside workings.
were said to have been unaware of
what "a going on under their eyes.
When it was openly charged hat he
had falsifed the bank accounts an in
vestigation suggested that the irregu-
l~arities must have begun at least four
years ago. At that time he is said to
have interested himself in the now
famous Calumet Electric railway. 1t
is now believed hat the first over
drafts to this railway. amounting to
S175 900, were made at that time, when
the comptroller of the currency imme-
diately called for a statement from the
bank and Hammond disguised the IT.
Irregularities by designating the over
drafts foreign exchange"
This alleged irr~egularity only came
after many years of diligent service in
the institution, the wreck of which
proved disastrous to many. In these
years Hammond saved money, and
worked early and late. and the posi-
ton he came to occupy was the result
of his years of frugality and merit.
Some of his savings invested legiti-
mately in mining schemes brought
him a good profit. which he i'm
mediately put into the stock of
the bank. After he had served as
cashier and became second vice presi-
dent, it is said. he began to personally
interest himself in many corporations
which were applicants for loans and in
this way, in curse of time, he drifted
into unwarranted speculations. Where
these turned out badly he is 0 ac-
cused of sending good money after
bad" and Disgusting his over-loans in
various illegal ways.
THE FIRST SUICIDE.
The suicide of Hammond recalls the
suicide of Otto Wasmansdorff, the
banker, a few days ago. Wasmans-
dorff's death was the direct result of
the failure of the National Bank of
Illinois. the collapse of that institution
pulling down the firm of Wasmansdorff
& Heinnemann.