3950. National Bank of Illinois (Chicago, IL)

View Charter #1867 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
1867
Charter Number
1867
Start Date
December 21, 1896
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
a4f6d2f90b9d1390

Response Measures

None

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1896-12-21
Date receivership terminated
1906-09-30
OCC cause of failure
Losses
Share of assets assessed as good
54.9%
Share of assets assessed as doubtful
10.7%
Share of assets assessed as worthless
34.4%

Description

The National Bank of Illinois (Chicago) was suspended/closed in late December 1896; the Comptroller appointed John C. McKeon receiver (Dec 26). Causes were heavy unsound loans (notably large loans/holdings in Calumet Electric securities) and reckless lending. There were discussions about reopening and directors met the Comptroller, and a 50% dividend payment to claimants began Jan 20, 1897, but a receiver was appointed and the bank did not resume normal operations—fits suspension followed by receivership/closure.

Events (6)
1. August 29, 1871 Chartered
Source
historical_nic
2. December 21, 1896 Receivership
Source
historical_nic
3. December 21, 1896 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Heavy, imprudent loans and concentrated holdings (about $2,475,000) in Calumet Electric bonds and other bad debts leading to insolvency; clearing house suspended the bank and its doors were closed.
Newspaper Excerpt
the clearing house committee ... suspend the bank; the closing of its doors
Source
newspapers
4. December 26, 1896 Other
Newspaper Excerpt
Directors ... had a conference with the Comptroller of the Currency this morning with a view to reopening the bank for business. The conference did not result in any important definite action, but it is probable that a first dividend of fifty per cent. on claims proved will be declared in a very short time. (Dec. 26 press reports).
Source
newspapers
5. December 26, 1896 Receivership
Newspaper Excerpt
Controller Eckels late this afternoon appointed John C. McKeon permanent receiver of the Illinois National Bank. Mr. McKeon has been National Bank Examiner for Chicago ... appointed receiver of the National Bank of Illinois (New-York Tribune, Dec. 27).
Source
newspapers
6. January 20, 1897 Other
Newspaper Excerpt
Payment of the first dividend of 50 per cent. to depositors of the National Bank of Illinois ... commenced to-day. Comptroller Eckels ... signing the necessary checks and there was a long line of depositors in waiting when the doors were opened. (Jan. 20, 1897).
Source
newspapers

Newspaper Articles (25)
1. December 22, 1896 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, December 22, 1896

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bank CHICAGO. Dec. 21 considered The National one in of the the of Illinois, the strongest generally financial Its doors institutions today. concerns, failure E. S. West. closed three other Heineman dragging down wasmansdorff, Dreyer & Co. Roseland bank of IIII& Co. and the of the National that bank its entire and The failure due to the and fact $100,000 over loansurplus to capital nois was of $2,000,000. of $300,000. stocks. had been Five hunDreyabove ed on Calumet dollars Electric was their loaned capital out dred thousand had spread were unable to er & Co., who that they save themselves. up so extensives in time to to locking IIIIconcentrate It were due bank of the The other held failures by the not National available when of nois. institution assets which closed were its doors. is expected. agreed as the to No further trouble Association Associde has in the NaClearing House of the at the meet 75 per cent Illinois, and all the tional pay bank clearing of house in good condi- aid that banks reported of them extended it been asked. all the ing tion, of would and the none have themselv been freely banks asked will for the resume Bank had of in It is probable of the National will be paid with Illinois, the exception and all depositors full. Clearing House Dec. to the Comptroller Rescue. an Bank of Illinois asconcerning Eckels has the National clearing on house all has proved says the Chicago 75 per cent. has been It sumed to pay C. McKean Mchetructed to publish claims. receiver John and claims at once of this pointed of ail approved get the benefit issued that list creditors may have bank been as a corres- send action. banks Instruction having the their claims November and 30, pondent all to At prove the last report. of $1,000,000 includ- und the them bank in. had $450,000: a capital total The assets, Liabilities will vided bonds, profit $15,045,992 While it is feared Eckels the ing about $11,000,000.00 Comptrolleve to relieve the on pante. out be rious will results may do all dependent in his power banks and the avert fol. any strain unnecessatien nnecessary comptrones concern: today gave the failure Mc Examinemies dowing The statement advised by Bank Bank of hands for "I am that the and National 18 now currency in his In claims order has Kean comptroller closed Colle of trouble and the to in obtain targest proving for part cred of the to against prevent this early bank date the have receiver, appointed with notice once. ttors mount at an due temporary to them. to publish a The house the the Mr. a McKean raphic instructure invotions all claims of at Chicago the clear- has examery telegra of proof of committee examiner of dvance clearing that the approve advised me will face of reditor# of any the ing cent. house of thus the relles. give the and their prevent business claims. per immed and liate rbance of while character, secur to bank essary direct of the a doubteur caution so business as not in- to ing "I all loans utmost upon with the the bank made and by exercise work any of those it. The advance to be und in full teresising depending upon house for it such mount, claims with ceris but simly collateral not in such securityglikence: tificates as to Gross bank is due methods to by injurious Failure failure Due of the and impru and dent not ttention checked The reckless the though officers their to the same, they probank's followed the directionally indiv tors. withweak atures largest points source had by been their individualy the The holdings nature and overline over to condition the bank's handway the amount discover had in the of failure Electric is of which with that made oldings of the k the full as it is was was not concean larg stoc now of be such the holding books This. but been and other called, offcere was part appearth on account. loans. had specific don of improve the on had in and doubter letter, the and since there made been and directions the surface but November the bank Bankined to the wed ent "In June last ment on found that the loan hooks ar and the had had not of the career the sent be the This fulfill by tion made ful and of the bank iner. demanding from notice of the ring had examion that and they desired off be ing their and obtain Bank and red The maring house the suggest of taking was safe tion afford bank "shown ined the funds that as and the the be from should ahed for and of the that The by the or money and ing of the SEVATE

2. December 23, 1896 Santa Fe Daily New Mexican Santa Fe., Santa Fe, NM
Article from Santa Fe Daily New Mexican, December 23, 1896

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STRINGENCY OF THE TIMES Depressing Object Lessons for the Triumphant Advance Agent of Prosperity to Study. ANOTHER LIST OF BUSINESS DISASTERS Lame Explanation of Illinois National Bank Failure-Receivers Appointed for Bank of Minnesona-Dry Goods House Failure. Chicago, Dec. 23.-W. A. Hammond, second vice-president of the National Bank of Illinois, who has been charged with pulling the wool over the eyes of the directors, would not talk to-day when seen in his palatial home at Evanston. Through intimate friends, however, he made a statement calculated to inculpate several directors as well as two or three others connected with the bank. "Hammond is to be made the scape-goat for the failure of the Mational Bank of Illinois," said a friend. "Hammond is a broken man to-day, bat he is not any more to blame for the amount of money loaned on Calumet securities than are the members of the finance committee of the bank and its directors. It was necessary to the purposes of a man connected with the South Chicago City railroad and an officer of one of the best known banks in this city to depreciate the Calumet Electric road's stocks and to this end these two men brought about the wrecking of the National Bank of Illinois." "Of the bank's funds $2,475,000 had been loaned on Calumet securities. The plan was to combine this valuable property of sixty-three miles of new track, equipment and franchise, with the South Chicago railway, eventually combining with the Chicago City railway, and make a fortune of millions within five or ten years," says this friend of Hammond. CHICAGO BANKERS ARBESTED. Chicago.-E S. Dreyer and Robert Berger, of the banking firm of E.S. Dreyer & Co., which collapsed on Monday, for whose arrest warrants were issued last night, gave themselves up today. Arrangements had already been made for bonds and the bankers were promptly released. Dreyer and Berger are charged with receiving deposits on Saturday, knowing the bank to be insolvent. FAILURE OF BANK OF MINNESOTA. Paul, Minn.-State Bank Examiner Kenyon was still in charge of the Bank of Minnesota at noon to-day, receivers not having been appointed. There is no excitement to-day in business cirolee, the assurance that the depositors will be paid in full being given by stock-holders who individually can more than pay depositors. RECEIVERS APPOINTED. Frank A. Seymour and Attorney W.R. Lighter were this afternoon appointed by Judge Otis joint receivers of the Bank of Minnesota. They were required to file a joint bond of $1,000,000. ANOTHER BANK GOES DOWN. Weet Superior, Wis.-The bank of West Superior, capital $50,000 and $50,000 surplus, suspended operations this morning as a direct result of the failures of the banks of Minnesota and Illinois. GENERAL STRINGENCY OE THE TIMES. Sioux City, Iowa.-The Arsons-Pelietier Dry Goods company, one of the largest houses in Sioux City, did not open for business to-day. The stock is in the hands of the mortgagees, who hold claims for $91,533. J.V. Farwell & Co., Chicago, $32,434; Marshall, Field & Co., $39,595, and the Farmers' Loan & Trust Co., Sioux City, $9,000 are the holders of the first mortgage. H.B. Claflin & Co., of New York, hold second mortgage for $17,512. No figures as to the assets are given. The failureis due to the general stringency of the times.

3. December 23, 1896 The Daily Morning Astorian Astoria, OR
Article from The Daily Morning Astorian, December 23, 1896

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Chicago, December 22.-The failure of Angus & Gildele, general contractors, the American Brewing, Malting and Elevator Co., the George A. Weisse Malting and Elevator Co., and George A. Weisse, individually, all of these being due to the collapse of the National Bank of Illinois, and small runs on three banks were the echoes today of the bank failures of yesterday. Runs were made on the Garden City Banking and Trust Co., the Hibernian Savings Bank, and the Illinois Trust and Savings Bank, but none of the runs were of much importance. The officers of the Garden City Bank and the Illinois Trust Co. had expected that a run would be made upon their institutions and were ready to meet it. They threw open the doors of the bank an hour earlier than usual and said they wanted to get the run out of the way so they could-transact their usual business without being disturbed. Quite a crowd of depositors had gathered at the doors before they were opened and as soon as the bank was ready for business the depositors gave the paying tellers all they cared to do. The run kept up with energy for over an hour, and then died away. At the close of banking hours the officers of the Institution announced that during the day the amount of money taken in was treble that paid out, and the bank was declared in better shape than at the opening of the doors in the morning. The run on the Hibernian Savings Bank was of short duration, as the officers declined to make any payment on time deposits, unless given sixty days notice. This was not because they were not prepared to pay all depositors in full, but because they wished to avoid embarrassment to the smaller bankers who might not be prepared to pay all their depositors, and who might be placed in an embarrassing position if the stronger banks were paying all demands for time deposits. There was a slight run on the Illinois Trust Savings Bank shortly after it opened this morning. Before the close of banking hours the excitement had completely died out. The giving of notice was sanctioned by the clearing house committee and the object was (the Illinois Trust being the strongest savings bank in the city) to give the smaller ones opportunity to point to its action as an excuse for giving notice themselves, which they did, and thus effectually stopped a run. , The Illinois Trust and Savings Bank is said to have $9,000,000 in cash on hand and was today loaning money instead of, as in 1893, calling loans in to meet the demands of savings depositors.

4. December 23, 1896 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, December 23, 1896

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known there is not expected to be much of a run to-morrow. In compliance with orders received to-day from Comptroller Eckels, Bank Examiner McKeon, receiver of the National Bank of Illinois, began to-day to make arrangements with City Treasurer Wolf and other custodians of public funds in the bank to issue to them certificates for such amounts of their deposits as clearly appeared to be due to them, so as to enable them to take advantage of the clearing-house offer to advance 75 per cent. This applies only to public funds. The report was current that loans of $500,000 each to Robert Berger and George A. Weiss, both sons-in-law of President Schneider of the failed National bank, were unsecured. It was said that the Weiss loan is secured by the American Brewing Company bonds, Mr. Weiss being president of the company, but none of the bank directors could be found who had seen such bonds. The Dreyer loan is said to be secured by real estate which the Clearing-house Gommittee threw out as worthless. It is claimed that most of the directors did not know of the $900,000 additional loan on Calument Electric securities.

5. December 23, 1896 The Morning News Savannah, GA
Article from The Morning News, December 23, 1896

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# Reckless Banking. Notwithstanding the stringency of the national banking laws and the severity of the penalties for violating them the number of national banks which are wrecked by bank officials who violate these laws is large. National bank failures would be of very infrequent occurrence if the laws for their control were strictly obeyed. It seems to be impossible in all cases, however, to find men sufficiently honest to discharge faithfully and conscientiously the trust reposed in them. An account of the suspension of the National Bank of Illinois was given in our dispatches yesterday. It is one of the largest, and was regarded as one of the safest, financial institutions of Chicago. It was ruined by reckless banking. All the facts have not been published yet. When they are known it may appear that the directors and officers have rendered themselves liable to criminal prosecution. If they have, it is to be hoped the law will be enforced against them to the utmost extent. From the published accounts it appears that they knowingly and deliberately violate the national banking laws. As long ago as last June Mr. Eckeis, the controller of the currency, was made aware of the fact that the bank's condition was perilous, because sums of the bank's deposits had been loaned on insufficient security. At that time he would have ordered the doors of the bank closed, except for the promise of the directors, that they would call in at once the loans that were unsafe and the prospect that the bank could, under safe and conservative management, work its way out of its difficulties. The directors did not fulfill their promise. They continued their reckless policy of loaning money in large amounts on insufficient security. The consequence was what might have been expected and what Controller Eckels foresaw. As an illustration of the bank's reckless method of doing business it is stated that it loaned $2,400,000 on the bonds of the Calumet street railway. This loan alone exceeded the banks entire capital and surplus. The law does not permit a bank to loan to one person or one corporation a sum larger than a small portion of its capital. There were other large loans, one being for $500,000 to a firm of which a son-in-law of the bank's president was a member. When the bank attempted to dispose of the street railway bonds, in order to get back the money it had loaned, it found it could not do so. Its efforts to sell the bonds aroused suspicion and brought about the failure. Just what criminal liability the officials and directors of the bank have incurred is not stated in the dispatches, but it is fair to assume that they are liable to a criminal prosecution, and that they will be prosecuted. The deposits of the bank amount to $11,000,000. The loss of such an immense sum, or even half of it, would bring trouble into many homes in Chicago and endanger many business interests. In fact, the bank's failure has caused a loss of confidence in banking institutions in Chicago and brought about a run on some of them. Before confidence is restored hundreds, and perhaps, thousands, will be financially injured if not ruined. If the authors of this trouble and ruin are not held to an accountability to as great an extent as the law will permit the government will be negligent of its duty. Only a little while ago a New Orleans national bank failed, and dragged down other financial institutions. In Denver a national bank was wrecked by a system of "kiting." In both cases the officials of the wrecked banks were guilty of wrong doing, and the government undertook to prosecute them. Our dispatches yesterday stated that the Denver bank officials had that day been convicted. And why shouldn't they be? The bank official who deliberately uses bank funds for advancing his private interests, contrary to the plain letter of the law, is no better than the burglar who blows open a bank's vaults and carries away the bank's money. Each accomplishes the same end—the robbing of depositors and stockholders—but by different methods. Mr. W. E. D. Stokes of New York has

6. December 23, 1896 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, December 23, 1896

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the National Bank of Illinois - Two Brewery Firms Assign-Slight Runs on Savings Banks That Are Met EasilyTwo Bank Failures at St. Paul. Chicago, Dec. 23.-The failures of Angus & Gindele, general contractors; American Brewing, Milling and Elevator company: George A. Weisse Malting and Elevator company, and George A. Weisse individually-all these being due to the collapse of the National Bank. of Illinois-and small runs on three banks, were echoes yesterday of the bank failures of Monday. Runs were made on the Garden City Banking and Trust company and Hiberian Savings bank, but none of the runs was of much importance. The officers of the Garden City Banking and Trust company had expected that a run would be made upon their institution, and were ready to meet it. Opened Earlier Than Usual. They threw open the doors of the bank an hour earlier than usual, as they said they wanted to get the run out of the way SO that they could transact their usual business without being disturbed. Quite a crowd of depositors gathered at the doors before they opened, and as soon as the bank was ready for business the depositors gave the paying tellers all they cared do to. The run was kept up with energy for over an hour, and then died away. At the close of banking hours the officers of the institution announced that durIng the day the amount of money taken in was treble that paid out, and the bank was declared to be in better shape than at the opening of the doors in the morning. Run on the Illinois Trust. There was a slight run on the Illinois Trust and Savings bank shortly after it opened yesterday morning, the similarity of its name and that of the National Bank of Illinois having led some depositors to believe that the former was embarrassed. During the run in 1893 President John L. Mitchell, of the Illinois Trust, gave orders to pay all depositors who called for their money and was criticised by other bankers for doing SO. Yesterday morning, as soon as it became evident that there was likely to be a crowd in the bank, instructions were given the tellers to serve the customary sixty-day notice, but to pay all depositors who could show that they wanted $100 of their money for a legitimate purpose. The result was that a score or more of people who had lined up at the paying tellers' windows soon dispersed. Before the close of the banking hours the excitement had died completely out.

7. December 24, 1896 Kansas City Daily Journal Kansas City, MO
Article from Kansas City Daily Journal, December 24, 1896

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TO SAID HAVE CAUSED BASE THE PLOT CHICAGO BANK FAILURE. SCHEME TO MAKE MILLIONS. CALOBJECT WAS TO DEPRECIATE STOCK. UMET ELECTRIC Buy Wreckers Intended Consolidate Then With to The Up the Stock, Their Ronds and Line Other Pockets in the Deal. Hammond, Chicago, Dec. 23. of W. the A. National Bank pulling of ond vice who president has been charged of the with defunct Illinois, the wool over the talk eyes to-day when Through seen in bank, would not at Evanston. made palatial home however, he his intimate friend, calculated to inculpate statement an which is well as two or bank. three The Post makes several directors, connected as with the and men who are not the above statement the following: the be made gives A. Hammond of the scapegoat of said the friend. he W. Illinois, thef ailure is to but National "Ham- is Bank of a bryken man to-day, the amount of mond is more to blame for securities than are not any loaned on Calumet finance committee its and meney the members of the directors. It was a conman of the bank to the purposes Chicago of City rail an officer to depreciate necessary neeted and with the South city of one of the best this the way banks of this stocks, and to the known electric road's brought about Illinois. Calumet end these two National men Bank of had been wrec King of the S funds, "securities" 475,000 The of the bank the Calumet brilliant. Cause and an loaned on wrecking was Calumet stock investigation, plan for depreciat this valuable track, propbuy it. Then sixty- combine three miles with of new the combining South equipment erty of and franchise eventually and make of fortune Chicago with the Chicago railway, millions City railway within five or ten the with full years. a loan was increased of the finance to com- the directors knowledge "The of members was made known commitof the deal mittee and Members lateron of the bank finance were given to was tee and and officers the purpose besides of paying the the the bank disell stock. the road and, good round a sum severe for conter the General loan, make There a has been Electric secure and conrectors. between Chicago the City railway the Calumet to and road, it was and stocks road South trol of the which bonds go of with could them. finally be sold the thought that the like $3,000,000 a or man $4,000,mected connected to the at something a brilliant idea Chicago for City who railway had been through are with was the South bank, and the men the bank. It that has backing wreck Calumet and the prohabilities will be sold and to the his succeeded. Calumet Electri City railway man his name the to the Chicago who lent pot out of friend, South scheme the banker, to make a good the matter the deal himself. banker took the in attention of "The safe part one: the He to called the fact somewhere, that Caluwas bank a examiner had disappeared Bank of prob- Iisecurities the National and had a met the intimating that good share of them that the linois all. finding beably officers of the hot on had on "The had examiner them was insactions bank. their they trail, and the to push salo of the Could foot for house became delayed ved thirty matter have Calumet been Electric among the bank's clearing gan bank the the alarmed. securities securities or effected, would sixty the as days. have been would have but without to not the sale found to the bank, been loss sets. The a loss or heavy course at public But this tryto the bank. of persons disturbance stockholders possibly suit of the the Calumet purpose Electric road. alone would not the S. Dreyer to years ago and for to reduce ing "Three control bank $1,000,000 E. trying three when years due the owed Hammond the reduced has been one-half it was to Mr. was closed and this was If that. of It the bank Hammond that for the Dreyer doors Vice President the securities and Weiss SatThat accomplished. to these two men they disappeared come out later. condition loans _have disappeared. point may bank who has been of talking became afternoon. urday One director a great in deal the public since the took $12,000 out the concern bank Saturday for the knew falsifica- the of the was no for occasio the directors loan. You where can't tion of the 1 000.000 loan "There of accounts Calumet in a bank withcover amount directors up do a their Trust duty and Savings notice bank given called to their to-day The Illinois the sixty and days paid all no run who what- also drew Tuesday There was savings banks that depositors money the other the thers anxiety for Some of notice and as the ever. the abated. it will has comptroller in made in gave withdrew among Washington deposito do the Dec likewise following statement Eckels to-day made the statement should have some connection quarters with save that the efforts National Bank was of and been made from to failing: effort possible Illinois legitimate closed the and directors instructe made. Every Before fully it informed The attention proper- of take house by officers to; clearing were immediate bank steps. committee was pursued and the called to the that the course the facts, but be was saf enters of ly the opinion not only justified and proper by thing clearing to was it a wise, When a bank officers and in directors such done. association. its to conduct scandal it to also its house are not only prevent bound loss creditors. and but way as shareholders to which and it associated. has been own banks with such a condition system and been called to the regret that bank in the associal clation has in the But developed in clearing any house such drastic of the that any upon to take end it will prove and country to and every the security benefit to clearing of bank measures all the banks house association depositors. TROUBLE for Suit the Dissolution add LOUIS to COMPANY IN of the South

8. December 26, 1896 The Jersey City News Jersey City, NJ
Article from The Jersey City News, December 26, 1896

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MAY REOPEN THE BANK. Directors of an InsolventInstitution Confer With Mr. Eckels. WASHINGTON, Dec. 26, 1896.-George E. Adams, Wm. H. Page, Wm, D. Kerfoot and Charles H. Corwith, directors of the National Bank of Illinois, had a conference with the Comptroller of the Currency this morning with a view to reopening the bank for business. The conference did not result in any important definite action, but it is probable that a first dividend of fifty per cent. on claims proved will be declared in a very short time. No insolvent national bank has ever been able to do so well by its depositors within so brief a period subsequent to its failure. The four directors represented that they did not know the bank had invested so heavily in Calumet Electric Railway stock, speculation in which caused Comptroller Eckles to warn the Directory in December, 1895, and compelled the Chicago Clearing House Association to euspend the bank. A suggestion in the newspapers yesterday that signatures to letters received by the Comptroller from the Directory were not genuine, was not taken up or discussed when Comptroller Eckels produced the letters for the inspection of the four directors. Mr. Eckels promised to do everything he could in co-operation with the Directory to pull the bank through its difficulties. They will not have another conference. Mr. Adams will issue a statementrabout the talk with the Comptroller later in the day.

9. December 26, 1896 Chicago Eagle Chicago, IL
Article from Chicago Eagle, December 26, 1896

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THE STORY OF THE BANK FAILURE. Chicago Tribune: The causes which led to the failure of the National Bank of Illinois are so clear on the surface that he who runs may read. The story is short and simple, but at the same time significant. The denouement has come swiftly and involves a situation revealing rank carelessness if not positive criminality. The moral of the story is obvious, particularly to directors who do not direct. The Calumet Electric Railway is one of the iridescent schemes born of World's Fair enthusiasm and launched full twenty years ahead of its time. It traverses a sparsely settled region and has few patrons except in pleasant summer days, when excursionists from the city feel like exploring a comparatively unknown section as a day's outing. It was organized and boomed by W. V. Jacobs, but early in the proceedings he became financially involved. His name was on obligations amounting to half a million, backed by Calumet Electric securities. In his search for some one upon whom to unload the obligations and securities he found the National Bank of Illinois. He was the fox in the well and the bank was the goat whom he coaxed into it and upon whose shoulders he clambered out. The directors were assured there would be speedy sales of two millions of the bonds in the Eastern market, but the Eastern market was shy and the sales were not made. The bank found itself loaded up with half a million of these obligations. To have ridden itself of them would have been the part of prudence, but, unwilling to incur a small loss, it went on putting in more money and preparing the way for bigger losses. The bank was at last saddled with $2,475,000 of Calumet Electric bonds, more than the bank's capital stock, a considerable portion of which was concealed in other accounts. The next chapter in the story pertains to the rivalries and jealousies of other roads. They notified the bank examiner that these securities were much less valuable than he had been led to suppose. The bank examiner notified the Controller and the Controller ordered an investigation. The clearing house committee started the investigation which resulted in the suspension of the bank from the privileges of the clearing house and the closing of its doors. Other bad debts amounting to $2,068,000 helped to bring about this amazing failure. It probably added to the downfall that Mr. Schneider, who in his prime was an able and conservative banker, is now old and in feeble health. With an infirm man at the head, with reckless officials under him, and with directors who knew nothing of what was going on, it is not remarkable that the smash should have come. It is remarkable it did not come sooner. The policy of the bank invited a wreck and there was no way to prevent it except upon the impossible presumption that the bank was strong enough to carry bonds no one wanted for fifteen or twenty years, until they became of value. Instead of taking the bull by the horns when the obligations were comparatively small, and writing them off to profit and loss, it carried them along as live assets, paid 12 per cent dividends, put in more good money from time to time to get back lost money, and finally wound up where the State Savings and B. F. Allen's Banks wound up. It was bad banking carried

10. December 27, 1896 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, December 27, 1896

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With a View to Re-opening. Washington, Dec. 26.-George D. Adams, William E. Page, William D. Kerfoot and Charles R. Corwith, directors of the National Bank of Illinois, had a conference with the comptroller of the currency this morning with a view of reopening the bank for business. The conference did not result in any definite action, but it is probable that a first dividend of 50 per cent on claims proved will be declared in a very short time. No insolvent national bank has ever been able to do so well by its depositors within such a brief period, subsequent to its failure. The four directors represented that they did not know the bank had invested SO heavily in Calumet Electric railway stock, speculation in which caused Comptroller Eckels to warn the directors in December, 1895, and compelled the Chicago Clearing House association to suspend the bank. A suggestion in the newspapers of yesterday that signatures to letters received by the comptroller from the directory were not genuine, was not taken up or discussed when Comptroller Eckels produced the letters for the inspection of the four directors. Mr. Eckels promised to do everything he could in co-operation with the directory to pull the bank through its difficulties. They will not have another conference.

11. December 27, 1896 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, December 27, 1896

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DIRECTORS MEET ECKELS. The Controller Willing to Aid the Illinois National to Resume. WASHINGTON, D. C., Dec. 26.George S. Adams, William E. Page, William D. Kerfoot and Charles R. Corwith, directors of the National Bank of Illinois, had a conference with the Controller of the Currency this morning with a view to reopening the bank for business. The conference did not result in any definite action, but it is probable that a first dividend of 50 per cent on claims proved will be declared in a very short time. No insolvent National Bank has ever been able to do so well by its depositors within so brief a period subsequent to its failure. The four directors represented that they did not know the bank had invested so heavily in Calumet Electric Railway stock, speculation in which caused Controller Eckels to warn the directors in 1895 and compelled the Chicago clearinghouse association to suspend the bank. A suggestion in the newspapers of yesterday that signatures to letters received by the Controller from the directory were not genuine was not taken up or discussed when Controller Eckels produced the letters for the inspection of the four directors. Mr. Eckels promised to do everything he could in co-operation with the directory to pull the bank through its difficulty. They will not have another conference.

12. December 27, 1896 New-York Tribune New York, NY
Article from New-York Tribune, December 27, 1896

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A CONFERENCE OVER AFFAIRS OF THE FAILED NATIONAL BANK OF ILLINOIS. Washington Dec 26.-George E. Adams William E. Page William D. Kerfoot and Charles E. Corwith, directors of the National Bank of Illinois, had a conference with the Controller of the Currency this morning with a view to reopening the bank for business. The conference did not result in any important definite action, but it is probable that a first dividend of 50 per cent on claims proved will be declared in a very short time. No insolvent National bank has ever been able to do so well by its depositors within so brief a period after its failure. The four directors represented that they did not know the bank had invested so heavily in Calumet Electric Railway stock, speculation in which caused Controller Eckels to warn the directors in December, 1895, and compelled the Chicago Clearing House to suspend the bank. A suggestion in the newspapers yesterday that signatures to letters received by the Controller from the directors were not genuine was not taken up or discussed when Controller Eckels produced the letters for the inspection of the four directors. Mr. Eckels promised to Go everything he could in co-operation with the directors to pull the bank through its diffculties They will not have another conference. Mr. Adams gave this statement to the United Assoclated Presses this afternon 'We had a very pleasant Interview with the Controller of the Currency Our purpose was to show what we had tried to do to improve the condition of the bank since the receipt of the Controller's letter a year ago. Our talk was mainly about the Calumet Electric. We feel that the Controller will do all that can be done to realize all that can possibly be realized out of the assets. We feel hopeful about the result. We made no suggestions about the receivership, either for any one or against any one. Controller Eckels late this afternoon appointed John C. McKeon permanent receiver of the Illinois National Bank Mr. McKeon has been National Bank Examiner for Chicago, and the vacancy thus created has been filled by the assignment of Joseph T. Talbert, National Bank Examiner for St. Paul and Minneapolis, to the Chicago district. Chicago, Dec. 26.-Benjamin B. Jones, ex-paying teller of the wrecked National Bank of Illinois, who was arrested Thursday night on the charge of embezzling $20,000 of the bank's funds, was removed today by order of Justice Grosscup to the Du Page County Jall at Wheaton, to remain there until the next Federal Grand Jury passes on his case or he is able to furnish the $10,000 bond required to effect his release Ex-Judge Prendergast, who represented Jones in a settlement with the bank, said his client met all demands made of him, but the bank drove a hard bargain. reducing Jones to a penniless condition His family was forced to go to relatives to live, and Jones is said to have been in and out of Chicago repeatedly, working at anything to get an honest living. He says he never tried to avoid arrest, and is not guilty of any embezzlement, alleging that a dozen employes of the bank had access to the money in the vaults. He was away on a vacation in September. 1895. and on his return to the bank was confronted with a shortage It is understood that Wilson. who is under bond pending sentence for complicity in the embezzlement. accuses Jonez of making him a dupe in the case. and Wilson may be the principal witness against Jones.

13. December 28, 1896 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, December 28, 1896

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The Day's Failures. Chicago. Dec. 28.-Partly as a result of the failure of the National Bank of Illinois last week, the Atlas National bank began a voluntary liquidation today by paying off the depositors. No deposits were received and as fast as accounts could be checked up the depositors were paid in full and their books taken up. Chicago, Dac. 28.-In pursuance of an agreement among the directors of the Dime savings bank, who held a secret session this morning, a general meeting of the directors was called for this afternoon. Treasurer Reed's window was barricaded and payment suspended under the 90 day withdrawal notice clause granted in the statutes to savings banks. Sienn City, Iowa, Dec. 28. - White & Howe company, retail shoe dealers. have assigned. It is claimed it is caused by bank failures here and in Chicago. The creditors are mostly eastern firms. It is believed they will pay in full. West Superior, Wis., Dec. 28. - The Bank of Superior has suspended. It had $25,000 capital and $50,000 surplus, largely tied up in investments. The deposits are about $100,000, of which $13,000 belongs to the City of Superior. Minneapolis, Dec. 28.-The Scandia bank, one of the smaller institutions of the city, suspended on account of being loaded up with real estate on which it could not realize. Laconia. N. H., Dec. 28.-The Laconia Car company was petitioned into insolvency today. The liabilities are $617,000; assets $407,000.

14. December 31, 1896 The Manitowoc Pilot Manitowoc, WI
Article from The Manitowoc Pilot, December 31, 1896

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GENERAL NEWS. Otto Wasmansdorf, one of the bankers who failed in Chicago last week, fired a bullet into his brain on Sunday last. Oswald Frendin a retired farmer, worth $60,000 shot and killed himself at Racine on Sunday last. He had come from Sweden only 8 short time previously. No cause but extreme nervousness is given for the act. The craft Three Friends will be libeled for violating the neutrality laws when she reaches Jacksonville. If her fight with a Spanish vessel can be proved, there is a possibility of the crew being arrested for piracy. This boat has made a fortune in trading with Cubans in contraband of war. The Atlas National Bank of Chicago suspended on Monday last, The failure of the Illinois National Bank caused a steady withdrawal of deposite, until about $1,000,000 were taken out. All the depositors of the bank will be paid in full at once, the Clearing House association agreeing to furnish the funds for this purpose. No excitement has been caused by the suspension. A terrible train wreck occurred near Birmingham, Ala., early on Sunday morning. Some devils in human form had taken out a rail on a trestle and the train fell a distance of 110 feet. Twenty seven persons were killed outright. Only nine of all on board escaped, but some of these are so seriously injured they cannot recover. The engineer had seen the danger and shut off the steam but too late. Deadwood, S. D., is in a terrible state of excitement over reported new discoveries of gold on Ragged Top, a Black Hills mountain. It was a place deemed unfavorable for gold and had naver been explored. A solitary miner went to work there and struck gold rich. Now there is a rush of every one to the place and towns have sprung up like magic. The mines are easily worked and the ore yields from $90 to $300 per ton.

15. December 31, 1896 New-York Tribune New York, NY
Article from New-York Tribune, December 31, 1896

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EXCITEMENT OVER IN CHICAGO. Chicago, Dec. 30.-At the Atlas National Bank and the National Bank of Illinois affairs have dropped into a rut, and are running along without particular incident. Over $100,000 was paid out to depositors at the former bank yesterday or through the National Bank of America on its account. It is now evident that the accounts of depositors cannot be closed by the end of the year, as many people who would have rushed to the bank. were it reported to be in danger of failing. are now extremely slow in drawing out their funds. At the Dime Savings Bank there was scarcely a ripple of excitement all day, and Its affairs appeared to have settled down to the ordinary plane. There were fewer rumors around town and the financtal sky cleared materially. The Van Nortwick collapse had no disturbing influence on the local situation. W. A. Paulsen, who was the principal owner of the failed Central Trust and Savings Bank, filed a bill in the Circuit Court 10-day to restrain the Atlas National Bank from disposing of a note for $30,000 made by him to the bank, and to restrain President Grannis and Charles B. Farwell, a director and exUnited States Senator, from disposing of their own property so that Paulsen cannot collect any of the damages he may be awarded at the trial of his suit for $250,000 against the bank. Grannis and Farwell in connection with the note, and the closing of Paulsen's bank by the failure of the Atlas to clear for it.

16. January 6, 1897 The Daily Morning Astorian Astoria, OR
Article from The Daily Morning Astorian, January 6, 1897

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The explanation of the bank failures in Chicago, and the consequent embarrassment of other institutions there and elsewhere in the West which led to their subsequent failure also, is undoubtedly to be found in the reckless speculation that has been going on, with the encouragement, if not the actual participation of the managers of some of the banks. The great Diamond match speculation was promoted by some very prominent financiers in Chicago, and its collapse hurt a number of the banks there. The particular cause assigned for the failure of the National Illinois Bank was the embarrassment of an electric street railway company, which was an ambitious project to give South Chicago the benefit of sixty miles of new track, run on the storage battery principle, much of which has been this year under construction. It was an attempt to boom property that had not yet demonstrated its ability to yield dividends, and it appears to have got too much encouragement from the bank which paid the penalty of reckless plunging, and in its own downfall it has carried a number of other and more reputable concerns to ruin. This is the true explanation and the only explanation of the recent bank failures which have furnished so much gleeful comment for the Populist press.

17. January 8, 1897 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, January 8, 1897

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BANKS ABROAD. LONDON, Jan. 7.-The weekly statement of the Bank of England issued today shows the following changes as compared with the previous account. Total reserve, increase, £452,000; circulation, decrease, £93,000; bullion, increase, £359,193; other securities, decrease, £2,047,000; other deposits, increase, £487,000; public deposits, decrease, £321,000; notes reserve, increase, £421,000; government securities, increase, £1,965,000. The proportion of the Bank of England's reserve to liability, which last week was 44.28 per cent, is now 44.97 per cent. Paris, Jan. 7.-The weekly statement of the Bank of France today shows the following changes: Notes in circulation, decrease, 66,375,000 francs; treasury accounts current, decrease, 67,600,000; gold in hand, decrease, 6,275,000, bills discounted, decrease, 110,850,000; silver in hand, decrease, 2,150,000. ENGLISH IMPORTS. LONDON, Jan. 7.-Board of trade returns show total imports for 1896 increased £25,117,677 over 1895. The exports have increased £14,032,193 over those of 1895. NEW YORK MONEY. NEW YORK, Jan. 7.- Money on call easy at 1½ per cent; last loan, 1½; closed 1½@2 per cent; prime mercantile paper, 3½@4½; sterling exchange, strong, with actual business in bankers' bills at $4.87@4.87¼ for demand, and $4.84¼ for sixty days; posted rates, $4.84¼@4.85 and $4.87½@4.88; commercial bills, $4.82¾@4.83; bar silver, 64⅝; silver certificates 64¾@65⅛c. CHICAGO MONEY. CHICAGO, Jan. 7.- Money steady, unchanged. New York exchange, par. Foreign exchange, demand, $4.87⅛; sixty days, $4.84⅛. WHISKY TRUST DECISION. CHICAGO, Jan. 7.-The United States court of appeals today handed down an important decision in the whisky case. The court decided that the leases made by the old Whisky Trust cannot be enforced, and are void. This rids the American Spirits Manufacturing company of about fifty leases, running for about twenty years, and involving something like $1,500,000. BANK CLEARINGS. St. Paul, $468,670.77. Minneapolis, $1,166,399.19. New York, clearings, $108,885,453; balances, $6,546,008. Boston, clearings, $18,098,175; balances, $2,347,751. TREASURY STATEMENT. WASHINGTON, Jan. 7. Today's statement of the condition of the treasury shows: Available cash balance, $230,137,716; gold reserve, $138,539,551. BANK OF ENGLAND RATE. LONDON, Jan. 7. -The Bank of England's rate of discount remains unchanged at 4 per cent. CHICAGO BANKS WARNED. CHICAGO, Jan. 7.-It has been ascertained positively that several banks which have deposits in the defunct National Bank of Illinois were warned of what was to come, and, as a result, their money was withdrawn just in time to save them from being carried down in the wreck. Henry W. Austin, president of the Oak Park State bank, made the statement today that he had received information of the dangerous condition of the Illinois National during the week previous to the failure. Acting upon this tip Mr. Austin says he immediately took out of the bank the money his bank had there. Five thousand dollars was withdrawn Friday previous to the Monday in December when the National Bank of Illinois failed to open its doors for business. The following day, Saturday, $45,000 more, which constituted the balance due the Oak Park State bank by the National Bank of Illinois was taken out.

18. January 10, 1897 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, January 10, 1897

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SPOKANE, Jan. 9. --Special-Congress- man-elect Jones, Municipal Judge Quinn, Cyrus W. Happy, Judge Blake and other prominent Populists, left for Olympia to- day ostensibly to work in the interests of Turner and, George Foster. It is gener- ally conceded that Turner has a badly split delegation. Today is the last day of the Poultry As- sociation's show, and the attendance has been unusually large. Besides, it was the young folks' day and they turned out in goodly numbers. The officers express themselves as pleased at the success of their second annual show. The kindergarten workers of this city, representing the Crocker Association and the Spokane Free Kindergarten Associa- tion, next Wednesday morning will join forces and become one. The committee appointed by the seventy-five representa- tives of the two associations has decided to recommend consolidation, and will bring forward a plan to that end at the next meeting. Spokane's bank clearances, as Brad- street's reports show, for the past week were $582,690, an increase of $88,290, or 17 per cent., over the first week in 1896, an increase of 45 per cent. over two years ago and 70 per cent. over three years ago. Henry L. Wilson arrived on the delayed overland today, after an absence of over six weeks, during which time he has vis- ited St. Paul, Chicago, Cleveland, Indi- anapolis, Philadelphia, New York and Washington on business connected with this section. In conversation with a Post- Intelligencer reporter he said, among oth- er things: "There is a slow but steady improve- ment in all lines of business throughout the middle Eastern states. Factories which have been idle three and four years have resumed operations, and the general tendency of trade is in the direc- tion of improvement. The recent bank failures were of a local character and due entirely to local circumstances. In almost every instance the suspended in- stitutions were found to be absolutely sound and almost able to meet their ob- ligations in full without the intervention of a receiver. Almost all were the reflex of the failure of the National Bank of Illinois, which itself was wrecked by the conspiracy among other banks, No great improvement need he expected until the policy of the incoming administration is fully determined and carried into law." In reply to a question as to whether it was expected that President-elect Mc- Kinley would recognize the Pacific slope in the making up of his cabinet, Mr. Wil- son said: "If there is any representation in the cabinet from the Pacific coast it will probably be assigned to California. At one time it was generally supposed that Judge Waymire, of that state, would be made secretary of the interior, but the chance of his appointment has become complicated by the opposition of Senator Perkins. There is a general disposition on the part of those who have been di- recting the power of the incoming ad- ministration to deal generously with the Pacific coast in matters of legislation and the giving of full recognition along po- litical lines. "There is a very general expression in the East of regret that this state should have thrown itself into the arms of Pop- ulism. In the eyes of the average East- ern business man, Populism represents all that is bad in government and fatal to business, peace and prosperity. We know out here that the Populists are not by any means as bad as they are sup- posed to be in the East, but it is not possible to convince any conservative Eastern business man that there is any good in the party. I would be very glad to have the Populist party now in control in this state demonstrate by its actions that conservative and good government is possible with it in power. If it gives over to an extended policy against vested interests or class legislation of any kind, it will be a long time before we regain the position occupied in the estimation of the East a year ago."

19. January 11, 1897 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, January 11, 1897

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# RECEIVER JOHN C. M'KEON. immediate payment of the greater part of the bank's capital when the money is most likely invested in such a manner that it cannot be called in at once. To save a bank in this extremity there is a provision in the banking laws by which savings banks may decline to pay depositors in full on demand, but may require a notice of 60 days. One of the most memorable runs in the history of Chicago was in 1893, when the Illinois Trust and Savings bank tried to bring its panic stricken depositors to their senses by a parade of strength. The depositors gathered by thousands and were formed into long lines running almost around the block. The bank attempted to meet all demands. The force of paying tellers was quadrupled, all rules regarding business hours were cast aside, and the money was shoved out as fast as a big corps of experts could count it. But these tactics did not have the required effect, and, although the bank was kept open nearly all night and until the last man in line had received his cash, more depositors came the next morning, and it was several days before confidence was restored. A run on a savings bank was started not long ago in New York state by the mere fact that a man had dropped dead in front of the bank. A crowd collected, depositors became frightened, and the original cause of the disturbance was forgotten in the mad rush to withdraw money. The result was so serious that the bank was eventually obliged to close its doors. While people who become so easily frightened are often called harebrained lunatics, there is really little to wonder at in their conduct. Knowing little of financial affairs, they jump at conclusions and do the very thing which will hurt their own interests. Then there are the tragic features. Connected with the Chicago failure these have been more startling than usual. First came the suicide of Banker Wasmansdorff, whose firm was pulled down in the general smash. Then came the suicide of W. A. Hammond, the second vice president of the institution which he was charged with wrecking. These developments were almost as startling as the initial catastrophe. And after the smoke has all cleared away comes the long and often tedious readjustment, when the bank examiner, with his corps of experts, spends weary hours over long columns of figures which have been juggled until they are jumbled into an almost inextricable tangle. This part of the work of the affairs of the Illinois National bank is in charge of John C. McKeon, who has been appointed receiver by Comptroller Eckels. He is one of the most expert accountants in the country and will probably be able to unravel the snarl in due time. JOHN F. WILLOUGHBY.

20. January 20, 1897 Las Vegas Daily Optic Las Vegas, NM
Article from Las Vegas Daily Optic, January 20, 1897

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Payment Begun. CHICAGO, illinois, January 20 Payment of the first dividend of 50 per cent. to depositors of the National Bank of Illinois, which suspended a few weeks ago, commenced to-day. Comptroller Eckels has been busy for several days signing the necessary checks and there was a long line of depositors in waiting when the doors were opened. The amount to be paid out will be nearly $5,000,000 and 3,000 depositors will share in the distribu. tion.

21. May 20, 1897 The Globe-Republican Dodge City, KS
Article from The Globe-Republican, May 20, 1897

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Max Maretzek, one of that famous trio of conductors and managers of Italian opera in earlier days, which included Strakosch and Mapleson, died in his home on Staten Island, aged 76 years. Kansas Republicans want Warden French removed from the Leavenworth federal penitentiary and B. J. Lynch given the place. Minister Buck, envoy to Japan, has been ordered to stop a week in Honolulu en route to Tokio. The decision of the government against the exchanging of the bank bills for silver coin has caused a panic in Havana. Prices of bread, milk and other necessities of life have doubled within the past few days. E. P. Edgerton, civil service commissioner during President Cleveland's first term, is dead at Cleveland, Ohio. William Carey, aged 60 years, committed suicide near Chillicothe, Mo. Drink was the cause of the deed. Judge Gibbons of Chicago decides that the American Tobacco company is a trust under the laws of Illinois, and prohibits its agents from doing business in the state. Europe is considerably concerned at the strong showing made by Turkey in the war with Greece. Bankers E. S. Dwyer, Robert Berger, Carl Noll and Adolph Nisson of Chicago were indicted by a special grand jury in connection with the failure of the National Rank of Illinois.

22. May 27, 1897 The Copper Country Evening News Calumet, MI
Article from The Copper Country Evening News, May 27, 1897

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SHOT AND KILLED HIMSELF. Second Suicide in Connection with a Bank Failure. Chicago. May 27.-Alexander T. Beckett. formerly a clerk in the National Bank of Illinois, shot and killed himself at his home in Riverside. Beckett had charge of the city collection in the National Bank of Illinois before its failure, and while somewhat eccentric and melancholy on account of his poverty, always bore the respect of the officers and his fellow clerks. Since just before the suspension of the National Bank of Illinois Beckett has been employed in the Merchants' National bank as a messenger. He had bought a home for himself and family in Riverside and was paying for it by installments. The suicide of Beckett recalls the sensational death of Vice President William A. Hammond, who jumped into the lake from Dempster street pier last January. Hammond committed suicide on account of several bad deals he had made with the bank's funds.

23. November 5, 1897 The Age-Herald Birmingham, AL
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Eckels' New Associates Chicago, Nov. 4.—President-elect James H. Eckels of the Commercial National bank of Chicago will have associated with him as vice-president John C. McKeon, formely bank examiner of this district and later receiver of the National Bank of Illinois, and James Talbott, the present national bank examiner of this district, as cashier. Mr. Talbott is a Virginian by birth, and well-known in southern and northwestern banking circles.

24. November 5, 1897 The Times Richmond, VA
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# A VIRGINIAN HIS ASSOCIATE. Joseph T. Talbot Will be Vice-President of Eckels' Bank. CHICAGO, Nov. 4.--President-elect James H. Eckels, of the Commercial Na-tional Bank, of Chicago, will have asso-ciated with him as vice-president John C. McKeon, formerly bank examiner of this district, and latterly receiver of the National Bank of Illinois, and Joseph T. Talbot, the present bank examiner of this district, as cashier. Mr. Talbot is a Virginian by birth, and is well known in southern and northwest-ern banking circles.

25. November 6, 1897 The Wichita Daily Eagle Wichita, KS
Article from The Wichita Daily Eagle, November 6, 1897

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# ASSOCIATED WITH ECKELS Will be Ex-Bank Examiner McKeon and Present Bank Examiner Talbot, Chicago, Nov 4-President-elect James H. Eckels, of the Commercial National bank of Chicago, will have associated with him in the management of that institution at least two men with whom he has been closely associated in the past. John C. McKeon, formerly bank examiner of this district and latterly receiver of the National Bank of Illi- nois, will be vice president of the Com- mercial National and Joseph T. Talbot. the present bank examiner of the dis- trict, will be cashier. Mr. McKeon is one of Comptroller Eckels closest friends. Mr. Talbot is a Virginian by birth and is well known in southern and northwestern banking circles. They will assume their new duties January 1 with Mr. Eckels.