The herald., 1897-01-05
some very DREARY ECHOES
OF the Illinois National Bank
Failure
RUNS ON MINNESOTA BANKS
Quickly Force Their Managers 10 Close
Their Doors
The Defaulting Cashier of the Baltimore
Farmers and Planters Bank
browns Himself
Associated Press Special Wire

ST. PAUL, Mimi, Jan. 4.-As a direct
result of the closing of the Bank of Min
nesota two weeks ago, which created
new distrust among depositors and start
ed runs on number of city banks that
were reputed not to- be as strong as the
depositors wished, three st. Paul banks,
West Side, none of them national insti-
tutions, all closely associated, all closed
their doors today. ore being in the hands
of the state bank examiner and the 9TH
ers making assignments.
During the time that had intervened
since the closing of the Bank of Mime
sofa, the Germania paid out $225,000 to
frightened depositors, and early today
the directors concluded they would stop
the drain and make an assignment to the
cashier, Peter n Kerst.
| The Allemania bank, which, like the
| Germania, had a large clientage among
the Germans and whose vice president
had formerly been president of the Ger
| mania, then became the target for
| lively run. People crowded about the
doors and fairly fought for place in
| the line before the paying teller's WIN
| COW. The bank officials realized fully
| what such n run meant and promptly
called on Bank Examiner Kenyon to
| take possession of the bank and that
| official is now in charge.
| The West Side bank small but pos
| sibly stronger bank, cleared through the
| Allemania and today its clearings were
! returned by the latter institution. Fol-
| lowing this, there was a decided run in
| augurated on the bank and at o'clock
! this afternoon the bank officials closed
| the doors and called meeting of the di-
! fnrss frx Il 10 -l,,+ t.. l..
Their decision was apparent late in the
afternoon when they filed a deed of as
signment to Cashier Staples, the presi-
dent of the bank. Considerable public
money is tied up in the three institu-
| tions, but there is an ample supply for
all immediate needs in the other banks
of the city.
The assignment of the Germania ard
West Side banks has brought up a some
what new question in the banking laws
of this state and the court will be called
on to settle it. The state bank exam
iner doubts their right to assign. hold
ing that they should have under the law
turned over their assets to him. The
attorney general intimates that he will
bring action to test the matter as soon
as the papers can be prepared.
During the day numerous reports of
trouble among the other banks were cur
rent and few banks suffered runs of
greater or lesser intensity. but the saw
ings banks were protected by the law
which allows them to require sixty days
notice before paying out deposits, and
the national banks are in strong condi-
ton and have no fear of anything of the
sort.
The Germania bank. a state institu-
ton. capital 100000, today announced
an assignment to Peter NJ. Kerst, cash
Ter. The bank stood a run of nearly two
of ~, .
December 22d. President Willius told
an Associated Press reporter that the
closing was the result of an unreasonable
panic and the bank will be opened for
business as soon as people regained their
usual cool sense. The bank as a result
of the panicky feeling had paid deposit
tors SS35O0O in the last nine days. Will
lius said he fully expected to have the
bank re-opened by the last of March.
The Allemania bank, with a capital
of 100000 and clientele similar to that
of the Germania. also closed it's doors.
President Scheffer, of the Allemania,
said the failure was due to the combined
withdrawal of deposits. The crowd of
depositors gathered today, demanding
money and at IL o'clock it was decided to
close. A few minutes before o'clock the
West Side bank organized in 1886 with
a capital of 100000. closed The West
Side bank has not closed finally. but
bank is considered strong. though a
small institution, and loss to depositors
is not thought possible
The DEVILS Lake, n. D.. special to- the
Dispatch says: The Merchants Nation
al bank closed today. pending the action
of the comptroller of the currency. The
bank was organized in 1887 with $50 900
capital.
MASON CITY, Ia, Jan. 4.--The First
City bank of Nora Springs has failed.
Assignment was made to- Byron Gam
ming.
A DEFAULTER'S SUICIDE.
BALTIMORE, Md, Jan. 4.-Richard
Cornelius, cashier and for forty-two
years connected with the National Far
mers and Planters bank, of which Enoch
Pratt was president up to the time of his
death, was discovered to be short in his
accounts to the amount of about $50 900
today. About 0 o'clock Mr.. Cornelius
was notified of the discovery ard left
the bank. AT lis o'clock this afternoon
his dead body was found in the duck
pond at Druid Hill park. He had COM
mitted suicide by drowning
On Saturday last the attention of tn.
bank officers was called by the bank ex-
aminer to an irregularity in the accounts
of country bank for which the National
Farmers and Planters bank was CORES
pondent, and the officers Immediately.
began a quiet investigation of the cash |
ier's accounts.
When Mr.. Cornelius arrived at the |
bank this morning he was summoned be- |
fore the board Of directors. Mr.. Corne- !
lius, it is understood, claimed he could !
make a satisfactory statement and he |
was allowed to go into another part of |
the bank to get certain paper. He DID |
rot return, and after the lapse of some
time, the directors escertained that he
had left the building. Detectives were
at once summoned. and they traced
Cornelius to Druid Hill park, where, in
a short time, the body was found in the /
pond. His hat was first found above !
the surface of the water in which Cor |
nelius had sat and deliberately drowned |
himself.
Cornelius leaves widow and daugh-
ter, the widow of the late Charles J.. |
Carson, wcll-knoWn architect. Corne- |
lius was one of the Oldest and best
known bank cashiers in Baltimore, ami |
his acquaintance among bankers ak !
tended throughout the country. lie |
was of q cheerful disposition and was
prominent in religious circles, and was
also largely Interested in building asso- |
Citations in this city. During the life of |
the late Enoch Pratt, the philanthropist,
he was one Of that gentleman's most in
innate friends. For many years Cor
neliuS had been one of the most prom
inent Mcthodists in this city. He was q
local preacher Of the Baltimore confer
ence. president of the City Missionary
and Church Extension society president |