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Bank Crisis Is Averted Through Great Mergers Consolidation Averts Probable Panic in Chicago and Gives City Great Banking Institution. (ASSOCIATED PRESS) CHICAGO, Jan. 2-What is regarded as the most serious crisis the financial district of Chicago has faced for a decade has been averted by a bank consolidation announced today. It was a which spread into crisis national banking might circles. have Announcement is made that the Continental and Commercial National Bank and the Commercial Trust and Savings Bank have taken over the Fort Dearborn National Bank and the Fort Dearborn Trust & Savings Bank. The sale was consumated after the Chicago Clearing House committee had examined the Fort Dearborn institutions and found that their capital had been impaired by bad loans and investments. The investigation was made at the request of William Tilden, president of the Fort Dearborn banks. George Reynolds, president of the Continental & Commercial banks, said that the total resources of the Fort Dearborn banks are $85,000,000 and they are members of the Clearing House Association. They have pooled guarantees totalling $$2,500,000 to protect depositors. The investigating committee announced that the Drovers' National Bank and the Drovers' Trust & Savings Bank, owned by the same banking interests as the Dearborn institutions, both are solvent. All the directors of the Fort Dearborn and the Drovers' banks have resigned. Bankers say that thus there has been averted the worst crisis that Lasalle street has faced since the failure of the Chicago National Bank more than a decade ago. The merger makes the Consolidated the largest bank west of New York. The difficulties of the Fort Dearborn banks are attributed to investments made by Edward Tilden & Co., known as the Tilden estate. The committee's statement says that Fort Dearborn bank depositors will be paid in full.
