The Washington herald., 1910-03-06
Continued from Page one.

pedestrianism and clerking. We had
capital of S50O0OO. and began business
early in 1913. The disastrous panic Of
that year occurred in October While the
financial and commercial depression was
severe in all parts Of the United States
II did not become dangerous in Chicago
until three years later, when most of the
savings banks were driven into bank
ruptcy. We rode the storm in safety,
but reduced our capital TO 100000. paying
$4,000 back 10 our shareholders. OF our
s1.o0o.cO0 in deposits, 100000 was with
drawn by frightened or needy customers.
The bank, so it seemed TO US, was alb
solutely without a future
AT that dreary period Of our history
was cashier. assistant cashier and book
keeper, and could do all the work easily
Presently a corner In corn was started
by spectators Every elevator in the
city was soon filled. but the corn kept
coming There was an empty elevator on
the Chicago and Alton Railroad, and we
were asked 10 act as trustee and TO open
Il for business. I represented the bank
in that responsibility. We did well in our
stewardship. making money! for all in-
terests and $500 for ourselves during the
two years Of our management.
Becomes Bank President.
when the capital of the bank was
reduced It was agreed that if we could
not earn S per cent on S1OO0 900 we would
Immediately go into liquidation But
we earned considerably more than $500
a year. counting the profits we received
through our operations of the elevator
The president was in bad health, and
being rich man, the bank to him was
rather insignificant. Sc the directors chose
me as his successor. I went into office
with the understanding that could make
certain important changes in the banks
policy No more money, for instance,
would be loaned unless it were amply
secured BY colateral-mere names on
notes, no matter how solid. would not be
accepted. The rule then adopted has
never been modified or suspended.
I'VE have two distinct classes Of Gus
tomers-depositors and borrowers" Mr.
Mitchell continued to say. I'VE special
ize in short loans and do not care for
period. Consequently our assets have
always been liquid, and of such char
acter as to be quickly turned into money.
We now have S5SeO0.O90 out on collateral.
we own S2O.00o.OoO Of good bonds and
stocks that are salable any hour of any
day In the week. and we have only $4s1, 600
loaned on real estate.
After Grant and Ward suspended. in
May 1854, money became tight here and
elsewhere. Philip D. Armour had recent
Iy come to Chicago from Milwaukee. He
was doing an extensive business, and his
credit was exceptionally good In this
part OF the country. One day his repre-
sentative came into my Office and asked
for loan OF 100000. After the rate of
interest had been arranged he went away.
In short time he returned with Mr.. Ar
mour's note.
Name Not Enough.
- :. But where Is your collateral?'
asked
Collateral? the agent repeated. DO
you mean to say that Mr.. Armour's name
is not enough
" Mr.. Arnour's name. I replied. is not
enough for the Illinois Trust and Savings
Bank. II is our unbroken rule to demand
collateral
Let ne inform you. the man shouted
rs he walked away. that Mr.. Armour
viii tell you to so to hades
when the agent found Mr.. Armour he