Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-01-03

Od4lh WCIC pun CIIdSCu ny tllt
National bank and Continent
Savings bank. Members of
pooled guarantees totalling S.
against loss. AS a result of Il
Commercial National bank an
have combined assets of near
The clearing house announced that
after a special examination Of the
Drovers National bank and the Drov-
ers Trust and Savings bank, owned by
the same interests as the Fort Dear
born banks, both institutions had been
! found to be solvent. All directors rep
resenting the old Fort Dearborn in
terests in the Drovers banks resigned
and were replaced by new men.
Asks for Assistance.
William A. Tilden. president of the
Fort Dearborn banks, called in the
clearing house committee Thursday
and asked for assistance in straighten-
ing out the tangled affairs of the two
institutions. By the merger, bankers
said, the most serious financial crisis
which has threatened LaSalle street
since the collapse Of John r. Walsh g
Chicago National bank. more than a
decade ago was averted.
The Fort Dearborn National bank
had nearly 1000 depositors and de-
posits of S51,124.749.S6 when it made
its last public statement under the ma
tional bank call of September 6. The
Fort Dearborn Trust and Savings bank
had $1,000 depositors with deposits of
9.001 ,096.76 at that time.
The national bank was founded in
4 ~
COO In 1917 this was raised to S.
to S5,000.OOO. The savings and trust
institution was founded in 1911, with
a capital stock of $500.o0O.
Largest In Chicago.
AS result of the merger the Cont
mental and Commercial becomes the
largest bank west of New York The
difficulties of the Fort Dearborn banks
are credited by the clearing house COM
mittee to bad investments made by Ed
ward Tilden & Co.-the Tilden estate.
Following announcement of the
merger, James B. Forgan. chairman of
the clearing house committee, issued
statement saying:
"0wing to the over extended condi-
ton of Edward Tilden & Co. and
some recently made loans and invest
ments which proved to be bad and en-
tailed heavy losses. it was found on
examination of the two Fort Dearborn
banks by the Chicago clearing house
that the capital of both banks had been
impaired.
circumstances it was necessary to take
such action as would protect the de-
IN Not
oil bank and the Fort Dearborn Trust
a prior claim on the assets Of the
two banks.
Guarantees Arc Given.
"Officials and directors of the Fort
Dearborn National bank and the Fort
Dearborn Trust and Savings bank en-
tered into negotiations as result of
which members of the Chicago Clear
ang House association agreed to fur
nish guarantees to the extent of 81
100000 satisfactory to the Continental
and Commercial National bank and
Continental and Commercial Trust and
Savings bank to protect them against
loss. -...r
"The Chicago clearing house com
mittee assures the depositors of both
the Fort Dearborn National bank and
the Fort Dearborn Trust aud Savings
bank that their interests have been
fully protected and that owing to the
Arrangement entered into by the Chi
cga Clearing House association with
the Continental and Commercial Ma
tional bank and the Continental and
Commercial Trust and Savings bank
they will suffer no loss.
'1nasmuch as Edward Tilden & Go.
is interested as a minority stockhold-
er in the Drovers National bank and
the Drovers Trust and Savings bank.
the clearing house committee has had
made special examination of these
institutions. for the purpose of ascer-
tanning their condition.
Entitled to Confidence.
"1'he result of these examinations
is such as to warrant the committee in
saying that in it's opinion these banks
are absolutely solvent and entitled to
the full confidence of their customers
and the public in general.
''In connection, the committee calls
attention to the fact that all the di-
recters of these institutions, represent
ing the Tilden interests, have resigned
from the banks boards"
The Drovers banks have replaced the
directors who resigned with Henry NJ.
Dawes, G. #. Swift. Jr.. vice president
of Swift & Co.: Henry Veeder, general
counsel for Swift b Co.; John F. OLE