The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-07-16


tlohaI Bank was ready TO do anything in
IT'S poWer-it only awaited a formal re-
quest. Other banks also expressed their
friendlness.
One hundred and fifty thousand dollars
or the borrowed money was TO be deliver
ed on Nov. IA. That morning President
Coolbaugh was found dead at the foot of
the Douglas monument with a bullet hole
IN his temple. His bank, fearing for its
own safety, refused to advance the prom
lsed money. The First National Bank fol-
lowed its example. New York long since
mad refused a friendly hand-and the
MIRO National Bank found itself deeper
imam ever IN the meshes of misfortune
ABOUT this time the park commissioners
discovered suddenly that there was a large
DOCK OF bonds not yet due which they
couId pay. OF course they wished TO save
lnterest-and they withdrew more than
$4,000 all in a day.
On Oct. l the bank had cash resources
amounting 10 1866 so with total assets of
$o'9lo'S9l. BY Nov p the cash had shriv-
eled away 10 $2S3,903 and the total re-
sources to S2,1i2 907-and the big bank
with its thousands of assets was as help
less as a child.
On Nov. p, a committee of bankers from
the Clearing House Association came in
soberly by a side door like physicians to
a sick bed. They nosed through the ledg-
lions. Then they went away and decided
that inasmuch as the old bank was soon
to die, 1t better be put quietly out of its
misery. The Clearing House Association
wrote its death warrant, refusing 10 have
any further transactions with il and re-
solving in formally worded resolutions that
it be suspended"
The next morning this epitaph appeared
on the bank door:
: THIS BANK is CLOSED.
''''''''.'''' '-''''..'..'......... ...,.........
Wheat fell two cents, pork ten cents, and
the market in the Board of Trade closed
weak Some of the stockholders of the
defunct bank offered in alright to quit
their claims TO their holdings to any one
who would assume the liability of assess
ment. They were the same ones who had
disclosed an alarming symptom of the
banks condition on the week before by
offering their high-Driced stock as far be-
low par as So They had no takers.
The earliest report on the condition of
the bank, made by the receiver, Col. Hunt
ington W. jackson, showed thai the nomi-
nai assets were about 81, 100000 and the
debts were nearly 81 900, 600, leaving nom
inal $S00,00O to pay the stock liability of
$75O,OO0. On paper this looked most en-
couraging, but a close examination show
ed that many of the loans of the bank,
laterals of uncertain value, and real es-
tate scheduled at boom prices and taken
as the only available payment for money
loaned. There was too much SLOW pa
per and not enough short paper
OF the real estate, one tract of 100 acres
lay on a barren sand ridge near the lake
shore and nearly ten miles southeast of
the city hall, in wholly unsettled part of
a suburb. Another tract of forty-five
acres was nearly as far to the west of
the city on the bare fiat prairie where
there was little prospect of lis ever being
anything more than cabbage patch. StN
another piece of property lay far out in the
southwestern portion of the city. in
region al yet almost wholly undeveloped
and promising little immediate growth eX-
cept in taxes and special assessments
There was a score of other lots and par
GELS of land, some in New York city, and
a great quantity of paper, much OF it more
or less doubtful or wholly woTthless-the
"cats and dogs of a defunct bank. In
fact, it seemed to some of the ninety stock
holders that it would hardly pay the bank
to retain it's property and meet the eX-
penses of management
But the receiver was a man of wide re-
sources and Astounding faith No one
could foresee the growth of Chicago, es-
peciaEly an the gloomy panic days of the
middle seventies, and YET there were many
men in Chicago who had supreme conf
dence in the city and its future. The re-
ceiVer was one of these.
4 little more than three months after
the closing of the bank-On Jan. 81, 1873,
the depositors received a dividend OF 10
per cent a mouth later ten per cent. more
was paid. all from The ready assets and
cash of the bank Before the close of 1879
So per cent. more had been distributed, and
then the receiver began TO reach the prop
erty that had been marked doubtful" BY
the process known as squeezing and the
sacrifice of some of the choicer pieces of
real estate, he managed to pay two other
dividends of per cent. each before the
close of 1881, thus returning to the deposit
tors the face value of their claims. A year
later they received their Interest in full
and the stockholders were left nearly five
years after the c!ose Of the bank with a
score of pieces of expensive real estate,
most of which had compare lively little
present cash value, and quantity Of
doubtful claims and costly lawsuits, the
legacy of the panic.
But Chicago was growing. The suburb
in which the hundred acre tract was To-
Gated became a part Of the city. A cable
line reached down and almost touched II;
an electric fine dropped passengers imme-
diately in front of ii; an elevated railroad
approached ID within half dozen blocks.
Early in the ninetcs the worlds fair found
root in Jackson park, which adjoined the
tract Immediately on the north. city
of great hotels, apartment houses and res
idcnces sprung suddenly into existence
around il, and Chicago was a metropolis
far out beyond the park.
At the time of the banks failure Chi
cago had a formidable rival in ST. LOUIS.
Its population scarcely exceeded 100000
and there was no reason for arguing that
in twenty years time it would be the
second city in the country, with popu-
lation of more than 100000. And yet
the men who managed the affairs Of the
bank had the faith which builds cities,
and their real estate appreciated in value
on a scale commensurate with the aston
ishing growth of the city.
In July. 1891, the receiver called the
stockholders together and laid before them
an offer of 100000 for the desp.sed 100
acres of land, and the stockholders upon
mature elaboration, rejected it,. feeling
that IL would be worth much more a few
Years later If the offer had been ac-
cepted it would have paid off not only
- -,t;~o caDf+aI stock of S750 600 but IL