The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1897-05-11
HEAR STRANGE TALES
Business Methods Of Banker
Dreyer Exposed.
TESTIMONY BEFORE GRAND JURY.

Assets of the Defunct Bank Are 100000.
While the Liabilities Are Close on To
100000 900 - Receiver BOughey Tells
How the Law Limiting the Amount OF
Loans Was Eyaded by Dummy Notes
signed by Clerks
Chicago, May 1l-Information fur
nished the grand jury by Receiver f.
NJ. Boughey of the defunct Dreyer bank
Monday was Of so sensational a charac-
ter that it is freely predicted about the
criminal court building the investiga-
ton will result in an unpleasant sur
prise TO some Of the officers of the Drey-
er bank and the National Bank of HI
nois, who were parties TO the transac-
tons testified TO by the initial witness.
Evasion Of the 10 per cent loan limit
law by means of dummy notes signed
by clerks in the Dreyer pank was but
one of the points which was furn shed
the jurors for consideration. Knowl-
edge of the insolvency Of the bank years
before the failure of the National Bank
Of Illinois was claimed by the witness.
OF Interest to Creditors.
A statement which is Of interest to the
creditors OF f.. 5. Dreyer was made by
Mr.. Boughey TO the effect that there
are 81, $50, 600 i'm claims, exclusive or
the west park board claim. which
amounts to $3.50, ,000 against the bank
and the total assets will aggregate not
more than $400. 600 in real value. he
ceiver Boughey was the first and only
witness Of the day. He had large
number of documents and books at
hand to refresh his memory with al
times and gave the jurors good start
in the six days they propose to devote
TO the investigation. According TO Mr..
Boughey. the books show the present
claims filed against the insolVent con-
cern aggregate $l,700,00O. Many claims
which have been found spurious have
been thrown out. Among the latter was
a claim for $4,000 1t was discovered
that instead of being a creditor the
claimant was a debtor to the bank in
the sum of s., 900 The last monthly
statement in the possession of the re-
ceiver showed balance of $lS5.9OS, ana
was dated May L. 1895. Real estate ana
other assets are found to be worth $iOO,-
600, and the outlook is now that the IN
stitution will not pay ! cent on the dol
lar.
Interesting Discovery Made.
The testimony of Mr.. Boughey further
showed that on April II, 1894. Treas
urer f.. NJ. Blount of the west park
board had turned over to his successor,
Mr. Dreyer. $349 900 in funds. At that
time the new treasurer of the west park
board owed the National Bank of Illi-
nf the
accounts on the books of the latter bank
a short time later the interesting dis
covery was made that Mr.. Dreyer's per-
sonal account had been cut down to
$5O. 900. 1t is alleged that the 100000
was utilized for the purpose of cutting
down that account The witness fur
ther said Mr. Dreyer had been in the
habit of selling second. third and even
fourth mortgages as first mortgages.
He would sometimes receive a deposit,
and in addition to the regular certih-
cate Of deposit would further secure the
depositor by trust deed for property
Evasion Of the Law.
The evidence indicated the bank was
insolvent in 1898. and that its ruin was
hastened by the injudicious Stickney
trust investment. Mr.. Dreyer was eau
toned against buying this land. but re-
fused to listen to warnings, and went
into the transaction in the hopes OF re-
alizing 81, 900 an acre. One of the most
important disclosures made was the de-
scription of Mr.. Dreyer's plan in con-
junction with officers of the National
Bank of Illinois to evade the national
law providing that it was unlawful for
a bank to make a loan exceeding III
per cent of the capital stock. The cap
ital stock of the Illinois bank was ST.
600. .0O0 At one time Mr.. Dreyer's debt
was $500 900. To get around this little
Inconvenience for the time being, Re-
ceiver Boughey said, the banker now
being investigated induced his clerks
to sign notes for fabulous amounts.
These would be turned into the National
Bank OF Illinois as legitimate securi-
ties and the excess of the loans, over
S10O 0OO was Sut down.