New-York tribune., 1922-01-03
2 Banks Saved
BY Half-Billion
ChicagoMerger
tcentinued from psse eRs)

q
(centinued from psse ens)
Savings Rank will take over tho ro,+
Dearborn Trust snd Savings Barl
Mr.. Reynolds described the transac-
ton tonight in the Following state
nert:
The Continental and Commcrcia,
National Bank and the Continental! and
SomHeTcial Trust and Savings Bank
nave taken over the Fort Dearborn Nv
sional Bank and the Fort pcarborn
Trust and Savings Bank, respectivcly.
as at the close Of business Dcccmbc y
(, 1921. ''''e'
"All deposits in the Fort pesrhorr
National Bank anA in the Fort Dcar-
born Trust and Savings Bank have
been guaranteed by the Continental
and Commercial National Bank and thc
continental and Commercial Trust and
savings Bank, respectively. and checks
Ira"n against accounts in the Fort
Dearborn National Bank will be hon
cred BY the Continental and CONNER
cal National Bank, aud deposits. in
ciodlng savings accounts, in the Fort
Dearborn Trust and Savings Bank will
ne placed to the credit Of dcposiio-s on
inc books OF the Continental and Com
MoEclai Trust and Ssvinga Bank.
Will Garry on Business
he business heretofore carried or
by the Fort Dearborn National Raul
and the Fort Dearborn Trust ard Say
lngs BAN Will hereafter be conducted
By the Continental and Comm erc;ai
National Bank apd tine Continental and
Commercial Trust nad Savings DanA
respcctlvely, at tho'r o6iccs, EOS South
Lasalc Street,
S,
$50 100000 Of liabilities. OS these. orc
estimate is Shat $l2.OOO,o00 - repre-
seNted either by losecs or by frozen as
scts
Guarantees tota.ine sa.5oo.ooo have
been furnished by banks os the Clear
ms House Association.
The general explanation oF Tie 0if-
iieulcies of the Fore Dearborn cstab-
lsuments - that they are attri tutab,o
to over-extension OF .oans Ii several
Industrial enterprises. TIE iuatitu-
Themselves to banking, went into
Hnaccine. They spread out INTO manu-
fncturins merchandise an; real estate
snd the business depression then fYoze
up & large quantity Of loans. They
we're no longer liquiG. Then. 200, some
O. them DEPRECATED in value.
TIE Fort Dearborn National Banl-
has o capital of $4,000 geo. 4 surplus
Il 50 100000 aaG undivided profits u
..so;.. 5i.1l5.000. Tns losses As they
Now appear arc estimated 80 be large
enough 10 wipe out the surplus and TIE
undivided profit and impair tie capita
: about 81 100000. or about 5000
900 2.l told.
Some Assets Doubtful
'n addition il ;s estimated the benA
sAs about 800 Of slow assets 6
a,.n rurlIoa OF whic.! are co.A-
sldesed as doubtful. the loans snd de
posits approximate S5l 900. 600 The
Ass x capital Of S5,Oo0,o00, (. surplus
/ $4,000. ara undivided profits of
52G3.000. It is estimated the losses
Will more tli&n wipe out the capital
the surplus and the undivided profits
Tie leans are about $5,90O.000 and
The deposits $9o00,O0 o.' which about
$7.000,O $50 are saving deposits.
Directors repEese'sing the Tilden H.
and the Dlovers Trust 2ad Savings
Bank have resigned and their places
haze been filed By others.
In addition It had been tentatively
arranged tonight that & cosnmittee
headed by Joseph B. Otia, president.
of the Central Trust Company, should
take over the Edward a. yilden estate
in the interests OF sne eWo Fort Dcar
born banks and oaher creditors. Ihs
tentative agreement was chat it vollld
serve as d creditors col!nlitt.,e.
The absorption Of The tvo Fort Dear
tee every depositor 100 cents on the
dollar occupied the attention OF lead
ing Chicsgo t:nanciers all day long.
Two groups me., enc in the Cont
mental and Commercial Building. the
other in tnc Offices OF The First Va
tional Bank. Both made ofnYr 10 Toxic
over the Two banks in difficulty. The
Clearing House committed considered
both proposals and a third one, VII ercby
the Clearing House Association might
take over the properties for lieuidatior
penny Cor penny, IS was done in the
Walsh bank case.
After prolonged discussion the pro
posal OF George II. Reynolds and his
associates WAS accepted, assuming al
obligations, cent for Cent, under tae
Clearing House guaranty against loss.
Tonight the Clearing Houso conll.ai.-
tee met TO ratify The undera taudins
reached earlier il the evening and 10
work out the details ot the corzoiids-
ton. large oAice force was kept o.
hand all dag. long. By the Cortinen.al,
ready TO assume charge OF the Fort
Dearborn banks as soon as the ncgo-
Eioas we're completed.
Depositors Widely Scattered
CHICAGO, Jan. 2 (By The Associated
Press ).-Thc Fort Dearborn National
Hank had nearly 1000 depositors, and
tic Fort Dearborn Trust &: Savings
Bank had $1,000 dopostors. The
National Bank was founded in 1857,
with a capital stock of 100000. In
1919 the total was brought up to s5,
100000. The Savings ard Trust insti
tution vas founded in 1911, with q capi
tai stock Of 5000 COO
William A. Tilden, president OF the
Fort Dearborn banks, was brother OF
Edward T'ilden, who died iii 1915. AS
sociatcd With him in their manage
ment was A9cril Tilden, con Of Ed
ward IildeH.
.4.-le ~rs in the Fort Dearborn
banks, according to g list published
last June, are scattered throughout the
country, from New York to San Fran
cisco and from northern Michigan to
Oklahoma, although the majority live