Evening star., 1922-01-03
CHICAGO GETS BIG
BANK BY MERGER
Second Largest in Country
Created When Clearing
House Aids Dearborn.

By the Associated Press.
CHICAGO. January 3-The Conti-
mental and Comm erciaI National Bank
and the Continental and Commercial
Trust and Savings Bank today form
ed the second largest banking insti-
tuition in the United States. and the
largest west OF New York. through
absorption of the Fort Dearborn Ma
tional Bank and its affiliated institu-
ton. the Fort Dearborn Trust and
Savings Bank. that action averting
what was described as the most Sc
rious difficulty which had threatened
years.
The merger was announced late last
night after an all-day session OF the
Chicago Clearing House Association
and leading hnanciers. the Continental
and Commercial institution agreeing
to assume liabilities of $6o.000,000.
Has s525. .ooo, 900 Resources.
The absorption placed combined. de-
posits of the four banking inst.tu-
tions at more than $40o.00o.00o and
total resources at a figure greater
than $525.00o.o0o.
Dimculties Of the Fort Dearborn
extension Of credits. Owing to the
overcxtended condition Of Edward
Tilden e. Co (chief stockholders Of
the Fort Dearborn organizationsl
and some recently made loans and
Investments which proved to be bad
found on examination Of the two Fort
Dearborn banks by the Chicago
clearing house examiners that the
capital of both banks had been i'm
paired" said a statement by James
3. Forgan. chairman OF the Chicago
clearing house committee.
The clearing house banks guaran-
teed the Continental and Commercial
against possible losses to the extent
of $25O0,000 and the Fort Dearborn
stockholders made a further guaranty
of s1.500.000. In addition, there Is a
capital. surplus and undivided profit
Of approximately $S.000.o00. The Cen
tinent tai also pays approximately ST.
500, 900 for the good will OF the two
absorbed institutions.
Move Under Heavy Guard.
The merger Is as of the close Of
business December 81. Work Of NOV
Ing the Fort Dearborn banks to the
Continental was started late last
night. Crews and clerks and fleets OF
trucks and taxicabs worked in bright
ly lighted streets under heavy police
guard. It was expected that the
transfer would be completed by the
opening hour today.
The clearing house committee in
vestigated the DroverS National Bank
and the Drovers' Trust and Savings
Bank. in which Edward Tilden &
Co. is interested. and announced that
those banks were solvent. All the ON
GERS of the banking institutions repre-
senting the Tilden interests resigned
and their places were taken by Henry
NV Dawes, j. P. Oleson, Alexander
Robertson, G. F. Swift, jr.. and Henry
Veeder.
special committee was appointed
to take care of the Englewood State
Bank, also a Tilden institution.
In La Sale street Saturday the
Dearborn National stock was quoted
at $3.50 a share. with mono offered.
and the State Banks stock at $1S5
share.
|. Change Of Quarters.
|. Within a short time the First Ma
tional and First Trust and Savings
banks will occupy the Fort Dearborn
quarters. the building having been
purchased two years ago from the
Fort Dearborn banks, which at that
time purchased the Corn Exchange
National Bank building for $3.o00,000
1t was the original intention that
the Fort Dearborn banks would nave
the Fort Dearborn banks would move
the latter institution was transferred
to the projected Illinois Trust-Mer-
chants Loan building at jackson
boulevard and Clark and La Sale
streets, and that the First Trust would
then move into the quarters vacated
by the Fort Dearborn.