The Maryville times. (Maryville, Tenn.) 1884-1944, 1899-09-09
A ROMANCE OF BANKING.
Rare Good Fortune of Chicago Stock.
holders Twenty Years After
Failure.

More than 20 years ago the Third
national bank of Chicago formally
closed its doors and receiver was APP
pointed to satisfy the depositors. Some
of the stockholders feared an immedi-
ate assessment for the payment of liza
bilitias and offered to give their stock
to anyone who would assume lie obliga-
tons. To-day this stock is held at near
ly double it's par value, and it is re-
garded as gild-edged security. Within
five years, although the bank has re-
cesved no deposits, made no loans, is
sued no currency, sold no drafts, it
has paid two dividends to its stockhold-
ers and promises many more. The
very name of the bank has been for
gotten, except by few gray-headed
men who are personally interested in
its affairs. Moreover, it is unique in
being corporation having large assets
and no liabilities beyond the obligation
to it's stockholders.
The earliest report on the condition
of the bank, made by the receiver, Col
Huntington w. jackson, showed that
the nominal assets were about 81 $780,.
900 and the debts were nearly $1,000.
300, leaving nominal 100000 to pay
the stock liability of $75O,O0O. On paper
this looked most encouraging, but a
close examination showed that many
of the loans of the bank, made in flush
times, were secured by collaterals OF
uncertain value, and real estate SEIZED.
uled at boom prices and taken as the
only available payment or money
loaned. There was too much ''slow"
paper and not enough "short" paper.
Of the real estate, one tract of 100
acres lay on barren sand ridge near
the lake shore and nearly ten miles
southeast of the city hall, in a wholly
unsettled part of a suburb. Another
tract of As acres was nearly as far to
the west of the city on the bare fiat
prairie, where there was little prospect
of its ever being anything more than
a cabbage plant. Still another piece OF
property lay far out in the southwest
ern portion of the city, in region as
yet almost wholly undeveloped and
promising little immediate growth, ex.
cept in taxes and special assessments,
There was score of other lots and
parcels of land, some in New York city,
and great quantity of paper, much OF
it more or less doubtful or worthless.
In fact, it seemed to some of the 90
stockholders that it would hardly pay
the bank to retain it's property and
meet the expenses of management.
. By the process known as "squeez-
ng" and the sacrifice of some of the
. choicer pieces of real estate the re.
ceiver managed to pay before the close
of 1881 the depositors the face value
, of their claims. A year later they re-
ceived their interest in full, and the
stockholders were left, nearly five years
after the close of the bank, with score
of pieces of expensive real estate, mos
of which had comparatively little pres
: ent cash value, and quantity of doubt
, full claims and lawsuits, the legacy o.
the panic.
, But Chicago was growing. The sub
urb in which the hundred-acre tract
, was located became part of the city
| A cable line reached down and almost
touched it; an electric line dropped
passengers Immediately in front of it
) an elevated railroad approached il
r within half a dozen blocks. Early il
e the nineties the worlds fair found roo
: in Jackson park, which adjoined tn,
: tract Immediately on the north. A city
= of great hotels, apartment houses ano
4 residences sprang suddenly into ex
istence around it, and Chicago was ;
city far out beyond the park.
Q In July, 1891, the receiver called the
S stockholders together and laid before
a them an offer of $1,000,0C0 for the de
0 spised 100 acres of land, and the stock
] holders, upon mature elaboration, re
L .ected it, feeling that it would be worth
: much more a few years later. If th,
e offer had been accepted it would have
i paid Off not only the entire capita
stock of $750,000, but it would have lief
: a comfortable $250000 to be divided
d among the stockholders for their pa
d fence. In a manner hardly less re
e markable the 45-acre cabbage patch be
: came valuable. Car lines passed it, tn,
d suburb of Oak Park, itself consider
S able city, grew out around it, and ever.
e year has added thousands of dollar
a to it's value.
J: And so it happened that in 1893 tn
|. receiver was able to pay dividend O
I ten per cent. to the stockholders, ant
v he followed it in 1895 with second div
q idend of five per cent.
And thus, by combination of goot
. fortune, shrewd management and pa
tience, the Third national bank nov
presents the spectacle, probably un
r equalled in finance, of a business insti
:. luton for 90 years defunct, and we
$ paying dividends on stock worth near
e ly twice its par value.-Chicago Even
o ing News.