The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-01-03
THE DEAD BANKER.
Hammond Said to Have Been He
spOnsibIe for Making Bad Loans.


death was the direct result of the failure
of the National Bank OF Illinois, the col
lapse of that institution pulling down the
firm of Wasmansdorf & Heinemann, OF
which Wasmansdorf was the senior part
ner Wasmansdorf blew his brains out
with revolver. Mr.. Hammond was the
vice president of the bank and active in
the management. in fact, is said 10 nave
been the responsible head since Mr.. Schnei-
der, the president. was too feeble 10 DO
much work. The large loans TO the Calu-
met Electric particularly. and TO others,
which resulted in the closing of the bank.
are understood TO have been made by Mr..
Hammond.
The residence of the Hammonds is sit
uated on Greenwood boulevard, in Evans
ton and was erected five years ago. 1t cost
not less than $4,000, and some of the recent
adverse criticisms were based on the cur
rent allegation that it represented some i'm
proper gains. When Mr.. Hammond was
ready to build his present home he paid
r. ID. Shepard, the business agent of the
Northwestern University. the highest price
for the lot ever paid in Evanston for resi-
dence property. This was 500 foot ana II
made the total valuation of his home S0O.-
600. The interior furnishings are in keep
within the past month these have been aug
mented by the purchase OF sS,VOO worth OF
additional furniture. AS a prominent resi-
dent of Evanston Mr. Hammond name
appeared on all the town club rolls and ne
was specially Well known at the Evans
ton Club He was me4n5er OF 81 M M''6h off,
cial duties in the Illinois Natlonal BANK
Mr.. Hammond was director in the Oakland
Company of Brooklyn, the street cable car
line, the Chicago Opera House Company
and the Chicago Railway Company.
The first open charges against the Dusl-
ness integrity of Mr.. Hammond were made
only about ten days ago. Then he was ac-
cused of being a 'kiter." He was also
charged with deceiving the directors OF the
bank the depositors and deliberately Vlo-
lating the national bank law. His alleged
irregularities are said to have begun many
years ago, when the vice president, IL Is
alleged. began to use the money and the
credit of the bank in outside speculauons.
This was done in such manner, IL was
generally reported, that not only were the
directors deceived but the bank examiners
as well. Even old employees of the bank,
thoroughly familiar with the inside work
ings of it, were said tc have been unaware
of what going on under their eyes.
When 1T openly charged That the sec
ond vice president had falsified the b3nk
accounts, investigation suggested that
the irregularities must have begun at least
four years ago. At this time Mr.. Ham
mond is said to have interested himself in
the Calumet Electric Railway. 1t is now
believed that the first overdrafts 10 TINS
railway. amounting 10 $4,000, were made
at this time when the controller of the
currency Immediately called for a state
ment from the bank and Hammond disguis-
ed the irregularity by designating the over
drafts foreign exchange. But this al
legged irreguarity only came after many
years of diligent service i'm the institution,
the wreck of which. proved disastrous 10 so
many. In these years he had saved money.
worked early and late and the prominent
position he came TO occupy was the result
of his years Of frugality and merit. With
tha ff,,f ci- TO t= IL
airy his speculative eyes turned far from
the bank. Some of his savings invested le-
ultimately in mining schemes brought him
a good profit, which he Immediately put
into the stock of the bank. After he had
served cashier and came TO be the Sec
ond vice president of the bank, ii is said,
he began to personally interest himself in
many corporations which were applicants
for loans, and that in this way in course of
time his judgment became biased. From
careful banker those who are now en-
gagged in clearing away the wreckage of the
financial house of which he was practi-
cally head, say he soon drifted into unwar-
out badly the vice president is now accused
of sending good money after bad" and
Disgusting his overloans in various and lille
gal ways
Considerable surprise was expressed by
men prominent in financial and business
circles that criminal proceedings had not
been instituted against Mr. Hammond 1t
has been no secret for several days past
that Controller Eckels had Instructed Re
ceiver McKeon TO bring criminal proceed
ings against any Of the officials of the de-
funct Bank of Illinois and that special
investigation of Vice President Hammonds
affairs was under way. Whatever may have
been Receiver McKeon's intentions he
never took any action against Mr.. Ham,
mond, and this fact has been sharply criti-
cised. Mr.. McKeon refused to-day TO state
his intentions in regard to the matter. Mr..
Hammond was at the bank Thursday" said
Receiver Mckeon. II had a talk with him
about the affairs of the bank He was ac-
customed TO come here every morning be-
tween and $3.50 o'clock to confer with me.
never told him that L should recommend
| the commencement of criminal proceedings.
| would not care to say whether or not L
had intended to take such step.
General John c. Black the United States
district attorney. was very noncommittal.
II have no information about the connec-
| ton of Mr.. Hammond with the affairs of
| the National Bank of Illinois beyond what
| / have. in common with all people. read in
| the newspapers. / noticed that Controller
| Eckes had written to Examiner McKeon to
| proceed with criminal prosecutions If he
| discovered that any criminal conduct at
| tached TO the officials of the bank. McKeon
| has not advised me. He is the representa-
| tive OF the Treasury Department and in
possession of the bank. From what i know
of Mr.. Mckeon he VIII not be slow in fol-
| lowing the instructions OF the controller the
| moment he has any proof of criminality. /
| have BEEN and am in readiness TO proceed
| in any prosecutions that may fall within
| my duties"
When Controller Eckels was Informed of
Mr.. Hammond's suicide in a dispatch to
/ w
developments in the last few days OF any
| thing more serious than at first disclosed
| OF course, the examiner was instructed to
| investigate. with view of detecting any
| body who had been guilty of violating the
! laws. / have not asked the district attor-
| ney at Chicago to proceed I'm the matter of
| the National Bank of Illinois but the ex-
| aminer may have done So" The controller
| of the currency was evidently much exer-
| cised over the matter, says dispatch from
| Washington. He had been unsparing in
| his criticism of Mr.. Hammond. and the
| latter was subjected To much criticism on
| banks representatives to the controller 5
| Office. Controller Eckels declined TO say
whether any criminal proceedings were 10
| have been begun against Mr.. Hammond,
| but he intimated very strongly that the
| late vice presidents actions were a matter
/ of special investigation. He added that IL
! was the custom of the receivers acting IN
| der his instructions TO realize all they could
| from the assets before looking into the al
| legged violations of law
The following memorandum found in Mr..
| Hammond's pockets is supposed to indicate
how the excessive loan TO the Calumet
| Electric road was covered up on the books
of the bank by being charged TO various
accounts:
National Bank of Illinois. 81 4s7. 600: for
e:gn exchange $522.00o; Bank OF Illinois.
$4,000.
"Outside loans: Joliet National $1,000:
F. G. Crawford 5000: Shawmut National.
sos 600; Independent National. $4,000; Mer-
| camille National Sl90.CG0: VI. Wolf, $i7 600
Interest $4,000 Total. s2.475.5G0.
| "Note-National Bank OF Illinois note on
Calumet. $4,000"