The Red Cloud chief., 1897-01-01
DIRECTORS MISLED.
ILLINOIS NATIONAL OFF,
GERS ACCUSED,
The President to Biame-Drector Page
Declares That Calumet Loans Never APP
peared on Books Submitted to the Loan
Committee.

CHICAGO, Dec. 24.-"Never did I see
on the book kept for the purpose Of
informing the directors of the bank as
to who were the applicants for loans
the name OF the Calumet Electric rail-
way" said Director Page of the dcfunct
National Bank of Illinois to-day when
asked how such large loans were made
by the bank and ostensibly given with
The sanction OF the directors.
Mr.. Page said rs to the manner In
which the business of the bank, as far
rs the directors were concerned, was
conducted: "The directors appointed
from among themselves what you
might term for convenience sake
IN auditing committee. The plan
was to let one director drop out
each month, some other taking his
place. Each day the committee would
meet at the bank, its business being to
pass upon the applications for loans.
A record of these applications was
kept In q book designed for the pur-
pose. In this book was also kept on.
positc h name Of each applicant n
RECORD of the coiiateral offered TO Of.
feet the loan. When the committee
was ready for business MIR. Schneider
would come into the room. bringing
with him this book and with IL an
other book II which was recorded the
daily balance Of the would be Dor.
rover and also q record Of how much
he Ia previously borrowed"
PRESIDENT TO BLAME.
"You say that Mr.. Schneider used to
bring this imp"
almost invariably. Seldom was
Mr.. Hammond before the committee.
At odd times he would be called in to
answer SOM question rs to an appli-
cants business or to clear up a point
about some collateral offered, but Can
tain Schneider was almost always the
bearer OF the books. The committee
would look over the books carefully,
n In some instances refuse to sane
ton . loan. In others the loan asked
tor would be cut dowa, and in cases
where the applicant and security were
oil right the accommodation was of
course granted"
IL the committee never ask TO
see the actual collateral offered or did
they simply take the word of Mr..
Schneider or MI. Hammond that the
security was actually in the bank and
actually what 1t purported to be in
the memorandum book?"
I'VE had been In business with Mr..
Schneider and Mr.. Hammond many of
US for thirty years. To have made
such q demand Of them would have
been q personal insult"
Hvtnra MT thA .t-.
mittee ever aroused by the large sums
loaned to the Calumet ElectricP"
"Never did / see the name of the
Calumet Electric railway appear on
This book rs an applicant for a loan"
What have you to say about the
published statements regarding Mr..
hammond's connection with the un-
explained transactionsc"
They are all true; every one Of
them"
SHARP WORK ON TWO SIDES.
The Post declares that w. A. Ham,
mond, second vice president Of the
closed National Bank Of Illinois, is to
bs made the scapegoat of the failure, |
and continues, quoting a friend of
Hammond: Hammond Is a broken
man to-day, but he Is not any more to
blame for the mount Of money loaned
ON Calumet securities than are the
members Of the finance committee
OF the bank and Its directors. II was
necessary to the purposes Of q man
connected with the South Chicago City
railway and an officer Of one of the
best known banks of this city, to de-
p~rsoiate the Calumet Electric roads
stock, n to this end these two men
brought about the wrscking Of the
National Bank Of Illinois. OF the
banks funds %, ATS, 900 had been loaned
ON tho Calumet securities. The plan
for wrecking was brilliant. Cause
an investigation, depreciate Calu-
met stock and buy II. Then COM
bino this valuable property of sixty
three miles Of new track equipment
and franchise with the South Chicago
railway, eventually combining with
Me Chicago City railway and make a
fortune of millions within five or ten
years. The truth of the matter Is that
members Of the finance committee and
certain directors of the National Bank
OF Illinois have known the amount of
The Calumet loan and have hoped to
mako individual fortunes on the sue
cess Of the venture.
George Schneider, the president of
the National Bank of Illinois, lives in
. rather snowy brick residence ut 1000
Michigan e He is 20 years of
ago and Is rather feeble in health.
When called upon to-day he said he
should have no statement whatever to
make and seemed quito broken.
Mig Lumber Deal Closed.
"a p