| Show BIG CHICAGO BANK FAILURE national bank of illinois and three private banks closed up yesterday deposits amount of nearly affected depositors will receive all if all their money chicago dec 21 the closing of an institution which was considered to be the secord strongest national banic in chicago followed by a failure of three private banking choatee which did busl geee with it caused a hurry of excitement in financial circle today and led to rune on several banke by timid depol ditore A flood of minors relative to ite banks and business firms added to the nervousness nervous nese which pervaded all blasts of people loog alter banking hours nd the chloee of the courts the banks which were closed follow national bank of illinois capital liabilities E S dreyer co bankers mortgage brok ere aad real estate dealers dea lerr liabilities estimated of aeleta ff II einemann bankers and mortgage broker liabilities estimated value of assets goseland Ko seland savings bank goseland Ho seland illinois email capital and assets estimated equal to liaholi ies all the private banks which closed their doors cleared through the national bink of illinois and the big crash compelled their to conserve their and protect creditor the two city banks went into liquidation through receivership in the courts turing action was taken at a largely attended meeting of the clearing bouse association which was held after banking fioura this afternoon abe following revolution reeo lution offered by ex comp of the currency E S lacey president of be Bankers National bank was unanimously adopted that the clea ritu house committee after calling to their aid such other persons as they may desire be requested to formulate a plan which will enable creditors of the national bank of illinois to avail of the offer nf the associated banks to make advances by way of loans to eald creditors to the extent of 75 per cent upon properly proven claims the chairman of the cl erinc house committee stated that the readiness of bankers to do this was eo evident that it was not probable any formal organization to the object set forth in the would be necessary although the committee appointed will give prompt attention to the daly d aly ina rosed on wm F dummer pree the association and vice president of the northwestern national bank read the following telegram which bo bad received from comptroller of the currency echela dated washington 1 I have appointed bank examiner temporary receiver of the ka bank of illinois and instructed him to publish notice to creditors to prove claims lie informs me that the ahouee committee will advance 75 per cent on evidence of claims notice will be at onoe and it claims ere proven immediately J shall within thirty days be able to pay u very considerable divider wl I 1 appreciate the action of the clearing in offering to advance on euch the decision ot the dearine bouse committee to clearing privileges to the national bank of illinois and also to refuse tande by which alie bank could have cone into voluntary liquidation was chiefly due to the astounding discovery aliat liat the bank had loaned to the calumet electric street railroad company on its bonda AS sole security this loan exceeded the banks capital and surplus another account which caused the bankers to hesitate was stated to be near the debtor beine E drever A company aobert berger the only partner 1 I mr dreseris Drey eris a bonin law of president of the failed national bank there were two other bag loada laici were considered poor collat ral the sequel to this refusal to lend aid or to continue clearing priva leaea was that the big national bank on dearborn street kaied to open ite doors thia mornine for public business thie was anticipated by the action of the clearing bouse committee but anere was a small knot of anxious depofi ore waiting on the marble steps of the entrance when the big iron screen in front ol 01 the doors was rolled up at 9 to admit several clerks at a card was hanff on the grill work reading as follower this bank la in the hands of a national bank examiner by order of the comptroller of the currency cui rency this announcement for de po eitore was followed by the te i aadi aa ii imn i of notices that certain private banks aad business firms would clear through other band sor pay checks which hau been civen saturday on the expended the following private and other banks made clearances through the illinois national E S dreyer and company careon leach and company garden city bank inn and trust company greenbaum sone 13 IS haarand company oakland national bank oak park state bank roseland bank W G stoughton and company bortt heinemann side bank siegel cooper and bank adams express bank baehler checks on Dr overa national bank on tho announcement of the illinois bank iron the clearies clea houe all of the foregoing binks with tho exception ot dreyer farson leach ono other at made other arrangements for clearing dreyer and business bus ineis passed into the banis of the security trust company as receiver barcon leach and company continued to do business bu einess and john farson who is president of the calumet electric street railroad Raili oad company which secured the the enormous loan from the feild national bank said there was no n i easily or intention to do otherwise aiu added that bis bodiee would take ire of the carmit electric through the breakers it Is reported that mhd 11 liuk of illinois has on hand about 41 percent ot its deposits of and there general confidence that depositors will be paid in full in a short time the officers and stockholders of the bank unite in saying to thy laet report of the bank november 30 placed tho surplus S at nn divided profits and cotal assets ing bonds the attempt of the bank officials to realize on the calumet electric aroused the suspicion of other banks and the in of the banks condition by the clearing bouee committee followed the failure was a areat t to the public there was no empi cion on the part of the large depositors that the banks capital and had been seriously impaired the heaviest creditors are the municipal corporations city treasurer Adam baa ot city funds on deposit here the bank was one of alve abich are depositories for city funds and each of the banks take turns by the month in city checks it was the failed banks turn to pay out in jancaro Jan cary mr wolf slid he had no concern about tiro safety of the city money and has received ample assurances from the other banks which bold city money that the corporation wili not be city comptroller wetherell Wet berell who is also vice president of the globe nation bank expressed the utmost confidence in the ability to meet all promptly lie declared the city we never in betar condition financially and the failure not embarrass it of interest money the finta of the year the park board of which cart moll cashier of the failed national bank is a commissioner has been cauffet to the extent of and a iaze amount is on deposit with E S breyer who is the treasurer ot tire board county D II 11 Koch has of couett funds tied up in the national bank and fred M the newly appointed treasurer of the drainage board had of district funds at the bank whose officer ere on his bond the bank officials were also on abe bonds of the city and county and west park board treasurers treasur ers the fact that the bank officers were bondsmen of thee public officials waa a strong reason tor abe decision of the other banks to force an immediate closing of the bank before funds were depleted at 10 E dreyer appeared in the superior court accompanied by hie lawyer levy mayer and tiled a petition for abe appointment of a receiver lie made his partner fiebert berrer defendant the court was told be assets vere and liabilities abut under abe partnership agreement the business busi nees could be closed at any time but there was agreement as to the manner in which be wound up great depreciation in the value cf real cemate holdings holdin cs ot the firm is beet forth in the bill and the receiver aabert for to prevent heavy los mr dreyer alleged that hie interim ex ceede that of mr beeper two to one and that by careful bandalin ban dlin of the estate it can be made to realize more than the AH the allegations were admitted by mr except that regarding dinc the interest ot the partners on this showing judge freeman pointed the security title end trust company receiver for the baak and its doors were closed as soon as possible thereafter there wa no excitement in the crowd which surrounded abe bank building at dearborn and and there was general confidence among the german dp that they ats 11 a jt aa BIG CHICAGO BANK FAILURE CONTINUED and PAGE would get all abe money due them in a abort time dreyer and company have been in the banking business here fora acore ecore of years and there ie no more prominent german american citizen in chicago than mr dreyer daring all that time abe bank has cleared through the national bank ol 01 illinois the tartt intimation ti which dreyer and company received that the national bank not resume waa yesterday afternoon and immediately eters were taken to protect their interests no preferences direct or indirect were given to any one after abe appointment of abe receiver many generous offers came from new york and other cities otto benior partner of abe other banking firm filed abe bill for abe appointment of a receiver eoon after the dreyer proceeding judge freeman at once granted abe petition and named abe security title and trust company as receiver issuing an injunction in both cases restraining any cne interest in the firm interfering with the assets or receiver and II einemann stood high in abe community as private the firm was established on the west side more than twenty five years ago germans did business chiefly with both the private banks the estate will require conservative and cautious han aling to pay dollar for dollar of their liabilities about is for savings depo dreyer and company bad no savings deposit the misfortune which has overtaken both abe banking is the cadee of general regret and sympathy air drejer came to chicago more than thirty years aeo from germany the roseland savings bank which is situated in the small suburb of roseland near pullman peopled largely by hollanders did not open its doors this morning for business fred who owns abe bank posted a notice that abe bank would not be open today the announcement drew a crowd but there was no scene of excitement the depos ditore who are mostly poor people were assured they would get their money as soon as money was received from the national bank 0 illinois the bank was established about two years ago careon leach co are abe chief owners of the calumet electric rod ro d which is a new and extensive enterprise embracing beveral towns southeast from Sixty third estreet the loan of obtained from the national bank was used to build and equip the road is now in full operation opera tiou the heaviest run on city banks during the day was directed at the garden city banking and trust company they withstood abe attack of anxious depositors po and tonight gave out the statement that they were thoroughly prepared to pay everybody who wanted money tomorrow although they believed the coret wa over the bank has of deposits but the savings department Is not large there is a large of county there A financial finau cial uneasiness on abe part of the bankers and depositors has been aggravated grava ted lately by abe numerous failures ot building and loan associations und the exposures of their financial rottenness |
