Omaha daily bee., 1897-01-03
BANKER HIS OWN LIFE
Another Sensational Sequel to Collapse Of
Chicago Institution,
SEEKS RELIEF FROM TROUBLE IN THE LAKE
Vice President Hammond of the Nm
uonnI DRnlS OF Illinois Conn
mits Suicide to Avoid
Disgrace.

Bank of Illinois, was found today in the
lake in the vicinity of Church street. 1t is
supposed that he committed suicide. Mrs.
Hammond is completely Frustrated and
under the constant care of a physician.
The eX-banker was the father of four chill
dren.
Mr.. Hammond retired as usual last night.
This morning the members of his family, on
going to his room, found 1t empty. Search
was begun for him, and it finally led his
friends to the Dempster street pier There
they found a number Of private papers in
Mr.. Hammond's handwriting. This CON
vinced the searchers that he had finally COM
mitted suicide by jumping into the lake.
The federal life saving crew at Evanston
was Immediately notified and began a quick
search for the body. A tug was also wired
for to come from Chicago for the same
purpose.
The death of Hammond recalls
the suicide of Otto Wasmansdorff, the
banker, a few days ago Wasmansdor6'S
death was the direct result OF the failure
of tho National Bank of Illinois, the col
lapse of that institution pulling down the
firm of Wasmansdorff d Hennemann, of
which Wasmansdorff was the senior partner
Wasmansdorf blew his brains out with
revolver.
Mr.. Hammond was the vice president of
the National Bank of Illinois and active
in the management. In fact, he is said to
have been the responsible head since Presi-
dent Schneider was too feeble to do much
work and the large loans to the Calumet
Electric company, particularly, and to others,
which resulted in the closing of the bank,
are understood to have been made by Mr..
Hammond.
The home from which Hammond was
mi In IL Green
wood boulevard in Evanston, and was
erected five years ago. 1t cost not less
than 100000, and some of the recent ad-
verse criticisms were based on the current
allegation that it represented some of his
improper gains. When Mr.. Hammond was
ready to build his present home he paid r.
d, Sheppard. the business agent of the
Northwestern university, the highest price
for the lot ever paid in Evanston for resi-
dence property. This was 5000 a foot and
1t made the total valuation of his home
$50 900. The interior furnishings are in
keeping with the exterior of the house, and
within the past month these have been
augmented by the purchase of $4,000 worth
of additional furniture. AS a prominent
resident of Evanston, Mr.. Hammond's name
appeared upon all the town club rolls, and
he was specially well known at the Evanston
club. He was a member of st. Marks
Episcopal church. In addition to his official
duties in the National Bank of Illinois, Mr..
Hammond was director in the Oakland
National bank, the Phoenix Insurance COM
pany. cable line and the Chicago Opera
house.
VIOLATED THE LAW.
The first open jcharges against the business
integrity OF Mr.. Hammond were made only
about ten days ago Then he was accused
OF enacting the character OF "klter." He
was accused of deceiving the directors Of the
bank, the depOsitors and deliberately vio-
lating the national bank laws His alleged
Irregularities &eie said to have begun many
years ago. when the vice president 1t is
alleged began to use the money and credit
of the bank In outside speculations This
was done in such a manner, 1t was gener
ally reported. that not only were the di-
rectors deceived. but the bank examiners as
we'll Even old employees of the bank,
thoroughly familiar with the inside workings
of It, were said to have been unaware of
what was going on under their eyes. When
it was openly charged that the second vice
president had falsihed the bank accounts, an
investigation suggested that the irregular
tiles must have begun at least four years
ago. At this time Mr. Hammond is said TO
have interested himself In the now famous
Calumet Electric railway. 1t is believed
that the first overdrafts to this railway, |
amounting to $175,000, were made at this
time when the comptroller of the currency
Immediately called for a statement from the |
bank and Hammond disguised the irregu- |
eign exchange"
But this alleged irregularity only came
after many years Of diligent service in the |
institution, the wreck OF which proved dis |
astrous to many. In these years he had |
saved money, worked carly and late, and !
tho prominent position he came to occupy |
was the result of his years Of frugality and |
merit. With the flrst desire TO augment his |
proper salary his speculative eyes turned |
far from the bank. Some of his savings in |
schemes
brought him a good profit, which he imme- |
diately put into the stock OF the bank. After |
he had served as cashier and came to be |
the second vice president OF the bank, II is |
said he began to personally interest him !
self in many corporations which were ap-
plicants for loans. and in this way, in course
of time, his judgment became biased. From
a careful banker, those who are now en-
gagged in clearing away the wreckage of the |
financial house of which he was practically |
the head. say he soon drifted into unwar-
ranted speculations. Where these turned |
out badly the vice president is now accused |
of sending good" money after bad" and
Disgusting his overloans in various and ille-
gal ways.
TROUBLES TOO MUCH FOR HIM.
At the National Bank of Illinois the opn-
ion was vouchsafed that the troubles of
the bank had proved too much for the vice
president, whose health had been none too
robust for the past year. Many expressions
Of sympathy were heard on every side for
him and his friends The report of his
death quickly spread through the
institutions in the downtown dis
tricts. Mr.. Hammond has visited the
bank every day since the assignment was
made He spent his time in consultation
with the board of directors and Receiver
McKeon in regard to the business matters
Of the institution.
Mr.. Hammond was at the bank for the
last time Thursday afternoon. He left
apparently in his usual health, and declared
ne was going to his home in Evanston to
get good rest, New Years day. That was
he last time the officials at the bank saw
aim. =
"Of course, Mr. Hammond has not been
m the best of spirits for several weeks"
Iaid Receiver, McScon, but | am surprised
1t the idea dhai he has taken his life. He
vas deeply affected by the closing of the
lank and appeared to take the matter very Il
much to heart. Every day since the as
iignment was made he has been at the bank
n consultation with the board of directors
md myself. / saw him for the last time
Thursday. He appeared to be in his usual
ramo of mind but not in a very talkative
mood. The report is received by his friends
It the bank with the deepest sympathy.
am very sorry, and only hope that 1t may
leyelop that the report Is untrue"
HIS WIFE MISSED HIM.
Mr.. Hammond and his wife have been in
a., b.I, nF iu aIf /