Norwich bulletin., 1922-01-03
ASSETS OF CHICAGO BANKS
 IMPAIRED BY BAD LOANS

Chicago Ian. 2.-Two Chicago banks, with resources of more than SS5 900 900, were sold tonight after the-~ Chicago clearing house committee had conducted an examination and found their assets had been Impaired by bad loans and in- yestments.
 After two days negotiation the Fort Dearborn National bank and the Fort Dearborn Trust and Savings bank were purchased by the Continental and Com mercial National bank and Continental and Commercial Trust and Savings bank. Members of the clearing house committee pooled guarantees totallng S2,500 900 to protect depositors against any loss.
 The clearing house announced that af- fer a special examination of the Drovers' National bank and the Drovers' Trust and Savings bank, owned by the same Interests as the Fort Dearborn banks. both institutions had been fplpd to be solvent All directors reffessnNag the old Fort Dearborn interests in the Drovers' bank resigned and were replaced by new men.
 William A. Tilden, president of the | Fort Dearborn banks. called in the clear l ing house committee last Thursday and l asked assistance in strengthening out the 1 tangled affairs of the two institutions. ] By tonight's merger. bankers said the most serious financial crisis which has 1 threatened La Sale street since the col | lapse of John R. Walsh's Chicago Ma tional bank omre than decade ago was l averted
 The Fort Dearborn National bank had i nearly 1000 depositors and deposits of S51124,749.S6 when it made it's last pub lie statement-under the national bank cal of Sept. 6, 1921 The Fort Dearborn Trust and Savings bank had 37;0o0 de. positors with deposits of ss,oO1,o26.76 al that time
 The national bank was founded in 1ss1 with a capital stock of s2,o00, 900. IT 1917 this was raised to S3,000 900, anC in 1919 the total was brought uD to s.
 100000. The savings and trust institu
 tion was founded in 1911 with a capita
 stock of s596.00o.
 The difficulties of the Fort Dearborn
 banks are credited by the clearing hous
 committee to bad investments made b,
 Edward Tilden & Co-the Tilden estate
 Following announcement of the merge ltonight, James B. Forgan. chairman O
 the committee, issued 8 formal statemen
 which said in part:
 lowing to the over-extende& conditio
 of Edward Tilden & Co. and some recent
 ly made loans ard investments whic
 proved to be bad, and -entailed heav losses, it was found on examination C , l me TWO r Ort Dea1DOEE banks Dy the Cnl cago clearing. house complittee that tf1
 capital of both banks had been impaired "The Chicago clearing house co / ii
 tee assures the depositors of bot. th
 Fort Dearborn National bank and tn , Fort Dearborn Trust and Savings ban l. that their interests have been fully pr,
 tected and that owing to the arrang, nnent entered into by the Chicago Cleal
 ing House association with the Cont
 mental and Commercial National ban
 and the Continental and Commerci; $ Trust and Savings bank, they ywiiI suftt e no loss.
 II 'Inasmuch as Edward Tilden & C.. e interested as minority stockholders the Drovers' National bank and u
 Drovers Trust and Savings bank. u
 clearing house cocmmittee has made T. special examination of these institutiol $ for the purpose of ascertaining their co r. dition.
 = /"The result of these examinations '' such as to warrant the committee in sa l' ing that in it's opinion these banks a
 absolutely solvent and entitled to the fl
 confidence of their customers and t y public in general
 Id Tn this connection, the commit q, calls attention to the fact that all ( I'll directors of these institutions represer re ing the Tilden- interests have resign = from the banks boards"