The San Francisco call., 1897-01-01
TROUBLES OF THE
NATIONAL BANKS
Three More Institutions
Are Forced to the
Wall.
Two Located in the Dakotas and
the Third in the State
ef Nebraska.
Bondsmen of E. D. Dreyer of Chicago
Will Have TO Pay the Bankers
Shortages.

GRAND FORKS, N. D.. Dec. 3L-At q
meeting of the Second National Bank
this morning they decided not to open ior
business. The following notice was posted
on the doors:
'On account of recent heavy with.
drawas of deposits and the impossibility
OF realizing on our assets, il has been de-
cided by our board of directors to suspend
and the Comptroller has been advised OF
our action"
Ihe officers of the bank were inter-
viewed and while not prepared to make
any statement until the Com mptroller and
BANK Examiner could be heard from, the
following facts were cleaned from the
statement made by one of the bank
oflcers: Immediately following the
failure OF the Bank of Illinois and the
BANK OF Minnesota, the bank had sus-
tanned a shrinkage of $4,000, while their
/ deposits amounted to about SIT 900 during
the last fourteen days.
On last Monday the bank published a
statement OF this business at the close of
business December IT. which showed loans
and discounts. $158,0s6 90; due from na-
tlonal and State banks and approved re-
serve agents, $9342 So; due to banks and
depositors, $179, 749 76; rediscounts, $4,000;
capital stock paid in. $50. 600, with undi-
vided profits amounting to $4,000.
| CRETE, NEBR., Dec. 31.-The Crete Ma
tional Bank closed its doors this evening
and went into voluntary liquidation. De-
posits are only $12, 900, and will be paid on
demand by the First National Bank,
where money is deposited to pay them.
Ihe Crete National hes on hand in cash
$4,000. and only closed because the busi-
ness did not pay. The stock is mostly
held by nonresident parties. The bank
was organized in 1898, and was capitalized
at $50,OOO.
WEBSTER. s. D., Dec 31.-The new
bank recently organized here is already
lnsolvent. I. E. Egge, the moving spirit,
collected 30 per cent of the capital stock
and deposited it in the defunct Bank of
Minnesota of st. Paul and the Colum bia
National Bank of Minneapolis. The new
bank was to be OF $40 600 capital and to
commence business on or about January
/, 1897. Mr.. Egge had collected the
| amount above stated and deposited the
same to his credit, and when the crash
came he gave his personal note to each
and evsfy stockholder. The total amount
| involved is $l3,500
| CHICAGO, Ill, Dec. 31.-Ex-Mayor
Hemps;ead Washburne, George Schneider.
president of the failed Bank of Illinois,
and Philip Henrici, the most prominent
| German restaurant-owner in the city, who
are the bondsmen of the bankrupt banker,
E. S. Dreyer, as treasurer of the West
Park board, will be formally notified next
week that Mr.. Dreyer has failed to acquit
claim of $4,000 in favor of the park
| board.
| The bondsmen will be called upon TO
make the amount good, as they are sure
ties for $500,000. This action has been
decided upon by the board and its attor-
ney has been instructed to proceed.
Mr.. Dreyer is seriously i'll at his home
with Inflammation of the kidneys, and his
physician has forbidden any one seeing
him to talk over his business difficulties.
Because OF the bankers physical con-
dition, Bondsmen Washburne and Hen
rici did not press their inquiries when
they visited him a few days ago to learn
how he had invested the park money. He
admitted, however, that he had sold park
bonds at one time to exceed $4,000, which
| was violation of a promise made at the
time Mr.. Henrici signed the bond, accord
! ing to the latter's statement to-day. He
added: ''Mr. Dreyer told me he was
worth million dollars above his liabili-
ties at the bank. believed it then. but
know better now. I was deceived"
| Mr.. Washburne says he will not shrink
from his obligation. He is also private
| banker.
At special meeting OF the board of di-
rectors of the Dime Savings Bank which
was elected yesterday Ralph Metcalf was
! appointed treasurer of the bank, posi-
tion equivalent to that of manager. This
action displaced George w. Reed from
the treasurership, which he held for years.
Mr.. Metcalf, to whom the appoinume mt
was surprise, assumed charge of the
bank at noon. He said he had received
no orders as to the banks future and
would only say the directors had arranged
10 meet every dollar of deposits when due,
or before. Interest may be paid January
z The directors are not disposed to ac-
cept any offer of outside assistance to
| liquidate or remain in business.