4118. Calumet State Bank (Blue Island, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
December 24, 1896
Location
Blue Island, Illinois (41.657, -87.680)

Metadata

Model
gpt-5-mini
Short Digest
d5251d39

Response Measures

Full suspension

Description

Contemporary reports (Dec 24, 1896) state a two-day run forced the Calumet State Bank to close and make an assignment. Later court filings (Jan 1897) show the state auditor seeking a receiver, indicating the bank remained closed and entered receivership. Immediate trigger of the run is reported as the suspension/failure of the National Bank of Illinois (i.e., trouble among local Chicago banks); underlying bad management/investments are repeatedly cited as contributing factors.

Events (3)

1. December 24, 1896 Run
Cause
Local Banks
Cause Details
Run began following the suspension/failure of the National Bank of Illinois and continued until the Calumet bank closed.
Measures
Police detail to control clamoring depositors; officers closed doors and made an assignment to an assignee.
Newspaper Excerpt
A continued run of two days upon the Calumet State Bank at Blue Island, Ill., forced the officers to close its doors to-day.
Source
newspapers
2. December 24, 1896 Suspension
Cause
Local Banks
Cause Details
Bank officers closed doors and made a deed of assignment after the run tied to the suspension of the National Bank of Illinois; assets reported and assignment filed in county court.
Newspaper Excerpt
Shortly after noon an assignment was made by the bank in the County Court, the assignee being Melville C. Eames.
Source
newspapers
3. January 5, 1897 Receivership
Newspaper Excerpt
State Auditor Gore filed a petition in the circuit court ... asking that a receiver be appointed for the defunct Calumet State Bank of Blue Island, Ill.
Source
newspapers

Newspaper Articles (18)

Article from Evening Star, December 24, 1896

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CALUMET BANK ASSIGNS. The Calumet Bank of Blue Island Compelled to Close. CHICAGO, December 24.-The Calumet State Bank, at Blue Island, failed today. The bank made an assignment in the county court to Melville C. Eames. A statement was filed showing that the assets are $87,669 and the liabilities $68,000. The failure was due, it is claimed, to a run on the bank, which followed the suspension of the National Bank of Illinois, and which was kept up until today. Liabilities consist principally of deposits. The assets are securities, which, it is asserted, can be realized on if properly handled and if sufficient time is given by the creditors. Attorney J. P. Eames, who filed the assignment, stated, however, that the failure was the result of bad management on the part of the former administration, who made investments which made it impossible to put the bank in good shape.


Article from Santa Fe Daily New Mexican, December 24, 1896

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ANOTHER BANK DISASTER. Calumet State Bank Goes to the Wall in the Suburbs of Chicago. Chicago, Dec. 24.-The Calumet state bank of Blue Island to-day made an assignment in the county court to Melville C. Eames. A statement was filed, showing: Assets, $87,669; liabilities, $68,000. Attorney P. J. Eames, who filed the assignment, stated that the failure was the result of the bad management of the former administration, who made investments which made it impossible to put the bank in good shape. The failure was due too, it is claimed, to the run which followed the suspension of the National Bank of Illinois and was kept up until to-day. The liabilities consist principally of deposits. The assets are securities which, it is asserted, can be realized on if properly handled and if sufficient time be given by the creditors.


Article from The Topeka State Journal, December 24, 1896

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A SMALL BANK FAILS. State Bank of Blue Island-Flurry Appears to be Over. Chicago, Dec. 24.-The Calumet State bank at Blue Island failed today. The bank made an assignment in the county court to Melville C. Eames. A statement was filed showing that the assets are $87,669 and the liabilities $68,000. Indianapolis, Ind., Dec. 24.-The new Monon Railroad company has $60,000 in the National Bank of Illinois which failed at Chicago. The regular pay day on that road is the 28th of the month, the payments being made by checks through local agents. There has been some uneasiness among the men, who fear that this month's payment will be deferred. Judge Woods of the United States circuit court says the men will be paid, even should it be necessary to issue receiver's certificates. New York, Dec. 24.-The sheriff today received two attachments aggregating $29,261 agáinst the property in this city of the Bank of Minnesota, of St. Paul, which failed Tuesday. One attachment, for $24,361, was in favor of Henry W. Millag on an assigned claim of the Third National bank of Boston, and the other for $5,000 in favor of Cornelius Loder. A deputy sheriff served copies of the attachments on the Chase National bank and Mechanics' National bank.


Article from The Record-Union, December 25, 1896

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CHICAGO FINANCIAL SITUATION. HAS AGAIN RESUMED ITS NORMAL CONDITION. Another Small Banking Institution Fails, But is Not Expected to Have Much Effect. CHICAGO, Dec. 24.-The local financial situation resumed its normal condition to-day, except for the assignment of the Calumet State Bank, a small institution at Blue Island, outside the city, which is not expected to have more than a local effect. Heavy withdrawals drained the working resources of the bank, an indirect result of the financial crash in this city. Only a few more depositors than usual were at the Hibernian and Illinois Trust and Savings Banks, confidence having apparently been restored. Directors Adams, Jenkins, Corwith. Kerfoot and Page of the defunct National Bank of Illinois made an informal call on Temporary Receiver McKeon at the bank to-day, and also conferred with each other in an informal manner. as all the directors were not present. They urged Mr. McKeon to make a very careful accounting of the Calumet Electric road bonds held by the bank. These direcors went to the bank in their caparcity of creditors. They were anxious to see the best interests of the bank subserved, and wished to know exactly what the bonds were worth as assets. The directors talked among themselves as to the best plan to facilitate the Calumet road, and thereby realize enough to pay in full the depositors of the defunct institution. They said that was their only aim now, and that there was no doubt that all but the stockholders would get dollar for dollar due. The stockholders do not expect so much. On account of the large part which the Calumet securities play in the bank's assets, Director George E. Adams and Comptroller Eckels should be careful to appoint as permanent receiver a man who would inspire confidence and be above suspicion of being interested in depreciating the value of the Calumet securities. There is a sharp contest for the receivership, one of the candidates being ex-Mayor John P. Hopkins. W. A. Paulsen, who was President of the defunct Central Trust and Savings Bank, began suit to-day in the Superior Court against President Grannis, Director Charles B. Farwell, ex-United States Senator, and the Atlas National Bank, claiming $250,000 damages. Paulsen alleges that his bank was forced to close because the Atlas refused to clear for him, well knowing he was solvent at the time, which was said to have been done in revenge for Paulsen's refusal to use the bank's funds to pay a personal note of $30,000 in favor of the Atlas Bank. Paul.sen says he lost the sale of his bank stock for $90,000 because of this action, as the deal was going through when the bank was forced to close. The stock is now worthless. The Atlas Bank is said to have conceded that the $30,000 note cannot be collected from the Central Bank, and the damage suit followed.


Article from The Sun, December 25, 1896

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ANOTHER ILLINOIS BANK FAILS, The Calumet State Bank at Blue Island Suspends. CHICAGO. Dec. 24.-A continued run of two days upon the Calumet State Bank at Blue Island, III., forced the officers to close its doors to-day. Shortly after noon an assignment was made by the bank in the County Court, the assignee being Melville C. Eames, the Vice-President. The deed of assignment gives the assets AS $87,669.69 and the liabilities as $68,000. The officers attribute the immediate cause of the failure to the run. but say that little money, comparatively speaking. was drawn out. The deposits amount to about $50,000. and the assets consist largely of securities of debatable value. The bank is owned by a stock company. has a capital stock of $25,000. and is eight years oid. Until last May W. A. Ray was President and W. C. Press the main stockholder. The present officials allege that the old management nearly wrecked the institution by bad management and reckless loaning of money on bad se. curities. The present officers are: G. G. Bogart, President: M. C. Eames. Vice President, and W. B. Brayton, :cashier. The scene around the bank building to-day was a turbulent one, and a detail of police was found necessary to attend to the crowd of clamoring depositors.


Article from The Daily Morning Journal and Courier, December 25, 1896

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ANOTHER BANK GOES UNDER. Calumet State Bank of Illinois Forced to Close Its Doors. Chicago, Dec. 24.-A continued run of two days made upon the Calumet State bank, at Blue Island, Ill., forced its officers to close its doors to-day. Shortly after noon an assignment was made by the bank in the county court, the assignee being Melville C. Eames, the vice president. The deed of assignment gives the assets as $87,600 and the liabilities as $68,000. The deposits amount to about $60,000, and the assets consist largely of securities of debatable value. It is said that the securities must be handled carefully in order to realize anything like their value. The bank is owned by a stock company, has a capital of $25,000 and is eight years old. The assignee claims that if given time the bank will pay depositors in full. The scene around the bank building today was a turbulent one, and a detail of police was found necessary to attend to the crowd of clamoring depositors. The majority of the depositors are said to be poor people.


Article from The News & Observer, December 25, 1896

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M'KINLEY'S DAILY HINT. / Chicago, Ill., Dec. 24.-The Calumet State bank of Blue Island failed to-day. The bank made an assignment in the county court to Melville C. Fames. A statement was filed showing that the assets are $87,669 and the liabilities $68,000. The failure was due, it is claimed, to a run on the bank which followed the suspension of the National bank of Illinois, and which was kept until to-day Liabilities consist principally of deposits. STARVING THE MINERS. Mascoutah, Ill., Dec. 24.-About half of the 4,000 miners employed in the coal mines of St. Clair and Madison counties have struck for higher wages. The mines affected are the Humboldt, Donck, Nicholl, Staunton, Skellett, Yock, Belleville, and Glen Corban. The men claim they have been working half time and not making living wages. They also claim that while there has been a strong advance in prices for coal. They have not had any benefit from the advance.


Article from The Seattle Post-Intelligencer, December 25, 1896

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Dragged Down by Bad Management. CHICAGO, Dec. 24.-The Calumet state bank, at Blue Island, today made an assignment in the county court to Melville C. Eames. A statement was filed showing assets of $87,669, and liabilities of $68,000. Attorney P. J. Eames, who filed the assignment, stated that the failure was the result of bad management. Bad investments have made It impossible to put the bank in good shape. The failure was due, It is claimed, to the run which followed the suspension of the National Bank of Illinois, and was kept up until today. The liabilities consist principally of deposits. The assets are securities which, it is asserted, can be realized on If properly handled, and If sufficient time is given by the creditors.


Article from The Times, December 25, 1896

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Another Chicago Bank Fails CHICAGO, ILL., Dec. 24.-Calumet Bank, at Blue Island, made an assignment in the County Court to-day, owing to a heavy run during the past week. The assets are said to be $87,669; 11 abilities $67.000.


Article from The San Francisco Call, December 25, 1896

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NOW FIGURING ON THE ASSETS Chicago Bank Directors to Sell the Calumet Road. Officers of the Defunct Illinois National Expect to Pay the Depositors in Full. Public Confidence Seems to Have Been Restored and the Run Has Been Stopped. . ILL., Dec. 24.-The local financial situation CHICAGO, resumed its normal except for State a ment condition of the to-day, Calumet Bank, the assign- small Blue Island, outside the which is not more city, institution at expected to withdrawals have than local effect. Heavy a working of drained the resources the bank, an indirect result of the financial crash in this city. Only a few more depositors than usual were at the Hibernian and Illinois Trust and Savings banks to withdraw their savings, and complete confidence may be said to have been restored on the public, so far as it can be gauged by outward signs. Directors Adams, Jenkins, Corwith, Kerfoot and Page of the defunct National Bank of Illinois made an informal call on Temporary Receiver McKeon at the bank and also to-day conferred all with the each directors other in an informal manner, as were not present. They urged Mr. McKeon to make a very careful account from the Calumet road's bonds hela by the banks. These directors went to the bank in their capacity of creditors. They are anxious to see the best interests of the bank subserved and wished to know exactly what the bonds were worth as assets. The directors talked among themselves as to the best plan to facilitate the sale of the Calumet road and thereby realize enough to in full the pay depositors of the defunct institution. They said that was their only aim now, and that there was no doubt that all but the stockholders would get dollar for dollar due. The stockholders do not expect so much. On account of the large part which the Calumet securities play in the bank's assets, Director George E. Adams and Eckels Comptroller should receiver be careful to appoint as permanent a man who would inspire confidence and be above suspicion of being interested in depreciating the value of the Calumet securities. There is a sharp contest for the receivership, one of the candidates being ex-Mayor John P. Hopkins. Edward H. Valentine, a capitalist, who was a director of the collapsed bank, said to-day that he resigned from the directory about a year ago because he would not approve the additional loan of $900,000 on Calumet bonds, which was carried on the bank books as "foreign exchange." He declared that every director was cognizant of all the bank dealings in Calumet. Director Jenkins, when asked if there would be any prosecutions in connection with the wreck, said, 'No; not at present." Otto Wasmansdorff of the defunct private banking firm and son-in-law of President Schneider of the National Bank of Illinois has mortgaged his household goods for $500, and the mortgage was recorded this morning. W. A. Paulsen, who was president of the defunct Central Trust and Savings Bank, suit in the began to-day Superior Direc- Court against President W. C. D.Grannis, tor Charles B. Farwell, Ex-United States Senator, and the Atlas National Bank, claiming$250,000damages. Paulsen alleges


Article from The Norfolk Virginian, December 25, 1896

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ILLINOIS BANK CLOSES. Another Institution is Forced to Suspend Payment. Chicago, Dec. 24.-A continued run of two days made upon the Calumet State bank at Blue Island, III, forced its ofHeers to close its doors to-day. Shortly after noon an assignment was made by the bank in the County Court, the assignee being Melville C. Eames, the vice-president. The deed of assignment gives the assets as $87669, and the liabilities as $68,,000. The officers attribute the failures to the run, but say that little money, comparatively speaking, was drawn out. The deposits amount to about $60,000. and the assets consist largely of securities of debatable value. It is said the securities must be handled carefully In order to realize anything like their value. The bank is owned by a stock company, has a capital stock of $25,000, and is eight years old. Until last May W. A. Ray was president and W. G. Press the main stockholder. The present officials allege that the old management nearly wrecked the instltution by bad management and neckless loaning of money on bad securities. Since then it has been a struggle for existence, and the bank was in no condition to stand a run. The present officers are G. C. Bogart, president: H. C. Eames, vice-president, and W. B. Brayton, cashier. The assignee claims that if given time the bank will pay depositors in full. The scene around the bank building to-day was a turbulent one, and a detail of police was found necessary to attend the crowd of clamoring depositors. The majority of the depositors are said to be poor people.


Article from Richmond Dispatch, December 25, 1896

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BLUE ISLAND BANK ASSIGNS. Mismanagement Said to Have Caused the Failure. CHICAGO, ILL., December 24.-A continued run of two days, made upon the Calumet State Bank, at Blue Island, HI., forced its officers to close their doors today. Shortly after noon an assignment was made by the bank in the County Court, the assignee being Melville C. Eames, the vice-president. The deed of assignment gives the assets as $87,699, and the liabilities as $68,000. The officers attribute the failure to the run, but say that little money, comparatively speaking, was drawn out. The deposits amount to about $60,000, and the assets consist largely of securities of debatable value. It is said the securities must be handled carefully in order to realize anything like their value. The bank is owned by a stock company, has a capital of $25,000, and is eight years old. Until last May W. A. Ray was president, and W. G. Press the main stockholder. Mismanagement and reckless loaning of money on bad securities has been the cause, it is alleged, of the failure. The present officers are: G. C. Bogart, president: M. C. Eames, vice-president, and W. B. Brayton, cashier. The assignee claims that if given time the bank will pay depositors in full. The scene around the bank to-day was a turbulent one, and a detail of police was found necessary to attend the crowd of clamoring depositors. The ma ority of the depositors are said to be poor people.


Article from The Scranton Tribune, December 25, 1896

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CLOSED BY A RUN. The Calumet State Bank Forced to Close Its Doors. Chicago, Dec. 24.-A continued run of two days made upon the Calumet State bank at Blue Island, Ills., forced its officers to close their doors today. An assignment was made to the vice-president. The deed of assignment gives the assets as $87,669; and liabilities as $68,000. The deposits amount to about $60,000, and the assets consist largely of securities of debatable value. It is said the securities must be handled carefully in order to realize anything like their value. The bank is owned by a stock company, has a capital stock of $25,000, and is eight years


Article from Albuquerque Weekly Citizen, December 26, 1896

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ANOTHER FAILURE Calumet state Bank of Blue Island. IIIAnote. Assigns Chicago, Dec. 24.-The Calumet State bank at Blue Island to-day made an assignment in the county court to Melville Kama A statement was filed showing asset $63,000. Attorney P. J. Eams who filed the HSsignment stated that the failure was the result of the bad management of is for. mer administration who made invest ments which made it impossible to put the bank in good shape. The failure was due. it IN claimed. to a run which fol. lowed the suspension of the National Bank of Illinois and was kept up until today. The liabilities consist principaily of deposits. The assets are securities which. it 18 asserted can be realized on if properly handled. and If sufficient time is given by creditors.


Article from The Ely Miner, December 30, 1896

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Two children of Mrs. Christine Carlisle, Tommy, aged two, and Ruth, aged four, were burned to death at Wakefield, O. The mother had locked them in the house and gone to a neighbors. Fire destroyed two buildings at the state reformatory in Elmira, N. Y., entailing a loss of $100,000. In Chicago the George A. Weiss Malting and Elevator company failed for $500,000, and Angus & Gindele, contractors, for $250,000. Scott Wike, of Illinois, assistant secretary of the United States treasury, has resigned. James Preston, aged 40, shot his wife, Amanda, aged 37, and the latter's son, William Bryant, aged 19, in Cincinnati, and then shot himself. Domestic trouble was the cause. Mrs. J. Suppler's sugar house at White Castle, La., was destroyed by fire, together with 3,500 barrels of sugar, the loss being $200,000. The annual statement of railroad construction shows that during 1896 only 1,802 miles of lines were built in the United States, the smallest mileage in any year since 1875. The New England Society of the City of New York celebrated the ninety-first anniversary of its organization and the two hundred and seventy-sixth of the landing of the pilgrims. Walbridge & Co.'s hardware and house furnishing establishment in Buffalo, N. Y., was damaged by fire to the extent of about $150,000. The remains of Kate Field arrived in San Francisco from Honolulu. They will be cremated and the ashes sent east for burial. Allen Creer and the wife and daughter of Rud Owens were drowned in Clarks river near Paducah, Ky., by the capsizing of a boat. The Bank of West Superior, Wis., capital $50,000 and $50,000 surplus, suspended because of the failure of the National bank of Illinois in Chicago. J. D. Williams, a mulatto, shot his wife and then killed himself in Washington. Hon. William J. Bryan opened his lecture tour at Atlanta, Ga., his subject being "The Ancient Landmarks." Mrs. Henry Bond and Miss Tyrrell, sisters, living at Woodbourne, Pa., were killed by the cars at a crossing. A train on the Chicago & Alton road was held up by robbers near Independence, Mo., and the express car looted. The American Banking and Trust company of Auburn, Me., closed its doors with liabilities of $55,000. Solomon Sayles, wholesale meat dealer in New York. failed for $250,000. Mrs. H. Estby and her daughter Clara, 19 years old, arrived in New York from Spokane, Wash., having walked the entire distance since May 5 on a wager that they could cross the continent in seven months. A large portion of the business section of Somerset, Ind., was wiped out by fire. The Parsons-Pelletier Dry Goods company, one of the largest houses of the kind in Sioux City, la., failed for $100,000. The wife of Noah Scott, of Shelbyville, Ind., gave birth to four boys and all were doing well. An explosion of nitro-glycerin near Montpelier, Ind., killed George Hickok and Harry Wood and greatly damaged the property of the Empire Glycerin company. President Cleveland has approved the general pension and urgent deficiency appropriation bills. By the explosion of a steam pipe in the city hall in Baltimore James Reilly and Charles Robertson were fatally scalded. W. H. Jones, county treasurer of BarΓy county, Mo., for the past four years, is said to be short $13,000 in his accounts. There were 287 business failures in the United States in the seven days ended on the 25th, against 367 the week previous and 322 in the corresponding period of 1895. Miss Anna Held, the French actress, who is playing at the Grand opera house in Pittsburgh, sang on the public streets of the city for the benefit of a charitable institution and over $800 was poured into her carriage. Fire destroyed the Huffman house block in Rockford, III., the total loss being $175,000. The home of Philip McKim, near Franklin. Pa., was burned and three little children perished in the flames. The Columbia, known as the old Doxey theater building, was burned at Anderson, Ind., the loss being $90,000. The Calumet state bank at Blue Island, III., closed its doors with liabilities of $70,000. Jay Van Seyoe and Earl Campbell. two young men of Valley, Neb., were drowned while skating on a lake.


Article from Daily Camera, January 5, 1897

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Calumet State Bank. Chicago, Jan. 5-A bill was filed in the circuit court against the Calumet State bank of Blue Island, Ill., which assigned recently. The auditor says the assign. ment was due to a collusion among the officials of the concern. The assignee was N. C. Eames.


Article from The Morning News, January 6, 1897

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BULE ISLAND'S BROKEN BANK. Application Made For a Change in Receivers. Chicago, Jan. 5.-State Auditor Gore filed a petition in the circuit court this morning, asking that a receiver be appointed for the defunct Calumet State Bank of Blue Island, Ill. The bank made an assignment a few days ago to M. C. Eames, its vice president. Auditor Gore claims the assignment was fraudulent, and he asks the removal of Vice President Eames. The bill also states that the bank's failure is a bad one. Attorney Darrow, representing the state auditor, after filing the bill, took it before Judge Gibbons to ask for a receiver. He met with oppositon from the assignee of the bank, on the ground of no jurisdiction. Judge Gibbons said he would give his decision to-morrow.


Article from Blackfoot News, March 20, 1897

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Goldbug Good Times. D. J. Bear, of Richmond, Va., jeweler, failed here Monday for $15,000. The Security, Mortgage and Trust Company of Dallas, Tex., has failed. Phelps & Co., grain brokers of Salt Lake City, have failed with liabilities of $10,000. The McCoy Banking Company of Independence, Mo., has gone into voluntary liquidation. The Bank of West Superior, Wisconsin, capital $50,000 and $50,000 surplus, has suspended operations. The Columbus and Hocking Valley Coal and Iron Company has passed into the hands of a receiver. The Scandia Bank, of Minneapolis, Minn., with a capital of $60,000, has suspended payments. The Laconia Car company of Laconia, N. H., has been petitioned into an involuntary insolvency. Chicago's charity ball is likely to be postponed on account of the financial and business troubles there. The Parsons-Pelletier Dry Goods company, one of the largest houses of the kind in Sioux City, Iowa, have failed. White & Howe company of Sloux City, Iowa, shoe dealers, have assigned Creditors are mostly eastern shoe firms. The American Banking and Trust company of Auburn, Me., has closed its doors and made application for a receiver. The Excelsior Machine and Boiler Works company of Chicago failed Monday. Assets and liabilities each about $40,000. Dallas Wightman, a cloak manufacturer of Rochester, N. Y., has assigned. Assets between $20,000 and $25,000; d liabilities $15,000. Solomon Sales of New York, wholeet sale and retail dealer in meats and proa visions, has assigned to Charles A. Hess without preferences. The Calumet State Bank at Blue S Island, III., has failed. A statement $ was filed, showing that the assets are $87,069 and the liabilities $68,000. J. J. Wright & Stokes of Richmond, Va., manufacturers of harness, have d assigned for $18,000. Mr. Stokes made t a personal assignment for $16,000. el The large retail dry goods store of M. Frank & Co. of Fort Wayne, Ind. e was placed in the hands of Benjamin di Rothschild as receiver Monday. a One hundred and fifty men employed by the Georgetown Boot and Shoe comf pany are on strike in Haverhill, Mass. e against a reduction of wages. The Dime Savings bank of Chicago e has suspended payments under the g ninety day withdrawal notice clause e granted in the statutes to saving banks.