4646. Roseland Savings Bank (Chicago, IL)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: December 21, 1896
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: f9873cd6

Response Measures

None

Description

Roseland Savings Bank (Roseland, Chicago) did not open on Dec 21, 1896 after the failure/suspension of the National Bank of Illinois (it cleared through that national bank). A receiver (John H. Nichols) was briefly appointed and discharged within ~48 hours; the bank reopened soon after. No evidence of a depositor run on Roseland itself — closure appears to be a suspension/temporary receivership tied to correspondent failure rather than a local run or insolvency. Dates derived from newspaper publication dates and articles reporting events Dec 21–23, 1896.

Events (3)

1. December 21, 1896 Receivership

Newspaper Excerpt: The shortest bank receivership on record-forty-eight hours-was that of John H. Nichols, who was appointed receiver Monday afternoon for Frederick Wiersma, proprietor of the Roseland Savings bank... The receiver appeared before Judge Hancy this afternoon and reported that there were assets of $83,000 ... liabilities of $51,400. Sufficient money had been raised to carry on the business, and the judge discharged the receiver. The bank will open its doors to-morrow morning. (reported Dec. 23).
Source: newspapers

2. December 21, 1896 Suspension

Cause: Correspondent
Cause Details: Roseland cleared through the failed National Bank of Illinois; did not open after that national bank was suspended/closed by the comptroller/clearing house actions.
Newspaper Excerpt: The Roseland Savings Bank... did not open its doors this morning. The bank is owned by Fred Weirsma. The depositors... were assured that they would get their money as soon as the money was received from the National
Source: newspapers

3. December 23, 1896 Reopening

Newspaper Excerpt: Sufficient money had been raised to carry on the business, and the judge discharged the receiver. The bank will open its doors to-morrow morning.
Source: newspapers

Newspaper Articles (21)

1. December 22, 1896 Daily Kennebec Journal Augusta, ME

Article from Daily Kennebec Journal, December 22, 1896

Click image to open full size in new tab

Article Text

CHICAGO FAILURES. Several of the City's Wealthy Houses Close Their Doors. Each Has Assets Largely in Excess of Their Reported Liabilities. Failures Caused by Recent Depression in Real Estate and Business. Chicago, Dec. 21.-At 10 this morning, a large crowd gathered around the dors of the National Bank of Illinois. On the large door leading to the counting room this notice was posted: "This bank is in the hands of the national bank examiners. By order of the comptroller of currency." Shortly after 10 the announcement was made of the failure of E. S. Dreyer & Co., an old established banking institution, corner of Washington and Dearborn streets. Wasmansdorff & Heinmann, bankers, 145-147 Randolph street,also closed their doors. Judge Freeman appointed the Security Title and Trust Co., the receiver for Dreyer & Co., and Wasmansdorff & Heinmann. The receiver for Dreyer & Co., was appointed on the bill filed by E. S. Dreyer, this morning, asking for dissolution of partnership and distribution of assets. The court was told that the assets were $1,500,000; liablities, $1,250,000. There has been a great depression in the value of real estate recently, the bill says, and unless the assets are handled in a conservative and careful manner, great IOSS will result. By a conservative handling of the estate, the complainant says, the assets can be made to realize $150,000 more than the liabilities. E. S. Dreyer & Co., has been considered one of the firmest banking institutions in Chicago. The receiver for Wasmansdorff & Heinemann was appointed at the request of Otto Wasmansdorff. senior member of the firm. The assets are given at $550,000; liabilities, $415,000. The complaint says the says the receiver can administer the assets to produce a surplus of about $100.000. Both these failures were the direct outcome of the National Bank of Illinois closing its doors. A run on the Garden City Banking and Trust Co's. bank was caused by the fact becoming generally known among the depositors that the institution cleared through the failed National Bank of Illinois. The line of depositors was not long and withdrawals were promptly made until the regular hour for closing the bank. At the Illinois Trust and Savings, and American Trust and Savings Banks there were small lines of men and women who were anxious to get money. and the bank officers were glad to pay out, as the withdrawals in the savings departments meant a gain of interest money. Both these banks are regarded as financially impregnable. President Schneider of the National Bank of Illinois, is treasurer of the Chicago Associated Press. The Roseland Savings Bank. situated in the suburb of Roseland. peopled largely by Hollanders, did not open its doors. this morning. The bank is owned by Fred Weirsma. The depositors, who are mostly poor people. were assured that they would get their money as soon as the money was received from the National

2. December 22, 1896 The Record-Union Sacramento, CA

Article from The Record-Union, December 22, 1896

Click image to open full size in new tab

Article Text

on Over Bank Had Loaned Bonds. ions on Street Railway CHICAGO, Dec. which 21.-The was national considered closing bank to an be institution the second quickly strongest followed banking by the houses failChicago, caused a in of three private with it circles ure did business in financial banks flurry which of and excitement led to runs A on flood several of rumors to-day depositors. and business by relative timid to other to the banks intense nervousness of people added all classes the firms prevaded hours and close were which after banking banks which of Illilong of closed the follow: courts. $1,000,000, The National liabilities Bank bankers, $11, nois, E. S. Dreyer real estate 000,000; mortgage capital liabilities brokers $1,500,000; and & Co., Wasmans- estimated dealers, assets and value of Heinemann, $1,650,000; bankers $416,000, mort- estigage dorff & brokers, of liabilities assets $550,000; Ill., Rose- small capital which land mated Savings value and assets Bank, Roseland, estimated equal closed to of liabilities. All the private banks through the Nation- crash their doors cleared Illinois, and the to big conserve compelled al Bank their suspension protect creditors. The assets and went into liquidation the taken private through their city receivership banks proceedings in at a courts. Reassuring action was of the Clear- held attended meeting which was The largely House Association, this afternoon. by exing after banking resolution hours Currency offered E. S. following Comptroller of of the the Bankers' adopted: NaLacey, President was unanimously Committee, tional Bank, Clearing House other "That calling the to their desire, aid be such required enable after persons as they may which will of Illito formulate the a plan National Bank the offer of section avail of themselves make of advances nois Associated to Banks to creditors to the by extent of 75 per the way of loans to cent. said upon properly House proven Chairman claims." of the the Clearing readiness of The stated that SO evident that Committee to do this was formal objecit tion bankers was to not accomplish probable would the any object be necessary set forth will in the resolution committee appointed on of although give prompt the action to the duty imposed the William them. F. and Dummer, President President following of the association, Bank, read the from Eckels, Comptroller Northwestern telegram which of the he had Currency received dated Washington: appointed Bank Examiner the Na"I have temporary receiver of instructed McKeon Illinois and to to publish notice me that the tional him Bank of He informs to creditors claims. will advance Clearing of if prove cent. House on evidence Committee once, claims. and No75 per will be published immediately at I shall claims tice within thirty are proven days be able I to pay appreciate a very considerable dividend. the Clearing House in offering the action to of advance on such certificates." The decision of the clearing Clearing-house privileges to refuse Illinois, and National Bank of the to refuse funds by Committee the voluntary which astound- liqui- bank could also to have gone into to the loaned dation, was bank had ing discovery chiefly that the due Electric Street on $2,500,000 to the Calumet its bonds as sole Railway Company This loan exceeded the account bank's security. and surplus. Another to hesitate capital which caused the bankers $500,000, the stated to be near Co. Robert Berger, was debtor being the only E. S. partner Dreyer of & Mr. Schneider, Dreyer, son-in-law of George bank. is a the failed national which President of two other big loans to There considered were poor collateral. refusal were necessary sequal to this privThe or to continue clearing bank on lend aid was that the big national its doors ileges street failed to open This Dearborn morning for public business. of the this anticipated by the action but there was Clearing-house Committee, depositors small knot of anxious the enwas a on the marble steps of in front waiting the big iron screen o'clock trance the when doors was rolled up at 9:30 9 o'clock of several clerks. At reada to card admit was hung on the grill work .ing as follows: Nabank is in the hands of a of the "This Bank Examiner. By. order detional Comptroller of the Currency." cheerless announcement for by the This was quickly followed private positors of notices that certain would clear posting and business firms checks banks other banks, or pay on the through which had been given Saturday suspended reported institution. that the National 45 Bank per It Illinois is has on hand about and its deposits of $11,000,000. is general confidence that be paid in full in a of cent. there of tors will of stockholders short deposi- time. the officers and last rebank The unite in saying so. The 30th, placed port of the bank, at $11,000,000, November undivided the surplus and total assets, includ-

3. December 22, 1896 The Scranton Tribune Scranton, PA

Article from The Scranton Tribune, December 22, 1896

Click image to open full size in new tab

Article Text

PANIC AT CHICAGO. Three Private Backs Are Closed on Ac= count of the Failure of the National Bank of Illinois. Chicago, Dec. 21.-The closing of an institution which was considered the second strongest national bank in Chicago, quickly followed by the failure of three private banking houses, which did business with it, caused a Hurry of excitement in financial circles today and led to runs on several banks by timid depositors. A flood of rumors relative to other banks and business firms added to the intense nervousness which pervaded all classes of people long after banking hours and the close of the courts. The banks which were closed follow: National Bank of Illinois, capital, $1,000,000; liabilities, $11,000,000. E. S. Dreyer @ Co., bankers, mortgage brokers and real estate dealers, liabilities, $1,500,000; estimated value of assets, $1,650,000. Wasmansdorff @ Heinman, bankers and moragage brokers, liabilities, $416,000; estimated value of assets, $550,000. Roseland Savings bank, Roseland, III., small capital and estimated assets equal to liabilities. All the private banks that closed their doors cleared through the National Bank of Illinois, and the big crash compelled their suspension to conserve their assets and protect creditors. The two private city banks went into liquidation through receivership proceedings in the courts. Reassuring action was taken at a largely attended meeting of the clearing house association at which a resolution was unanimously adopted to make advances by way of loans to creditors to the extent of 75 per cent. upon properly proven claims. The decision of the clearing house committee to refuse clearing privileges to the National bank of Illinois, and also to refuse funds by which the bank could have gone into voluntary liquidation was chiefly due to the astounding discovery that the bank had loaned $2,400,000 to the Calumet Electric Street Railroad company on its bonds as sole security. This loan exceeeded the bank's capital and surplus. Another account, which caused the bankers to hesitate was stated to be near $500,000 the debtor being E. S. Dreyer & Co. Robert Berger, the only partner of Mr. Dreyer, is a son-in-law of George Schneider. president of the failed National bank. There was two other big loans which were considered poor collateral. The necessary sequel to this refusal lend aid or to continue clearing to was that the big national Dearborn street open its this morning for bank privileges doors on failed public to business. This was anticipated by the action of the clearing house committee, but there was a small crowd of anxious depositors waiting when a card was hung the door reading as follows: is in the a na'This on bank hands order of of tional bank examiner. By the comptroller of the currency." This cheerless announcement for depositors was quickly followed by the posting of notices that certain priand business would other banks, or clear vate banks through firms saturday pay checks which had been given on the suspended institution. The heaviest run on city banks durwas directed at den Banking and ing the City day attack Trust of company. the 200 Gar- anxThey withstood the out ious depositors and tonight gave the that they were thoroughly to pay who statement prepared everybody though they wanted money tomorrow. believed the worst was over. The bank has $2,000,000 on deposit, but the savings department is not large. CounTreasurer Kocherberger is a directy there is a large amount of tor there. The uncounty and money financial bankers on the part of the has been and easiness depositors by failures aggravated of lately the numerous the building and loan associations and exposures of their financial rottenness.

4. December 22, 1896 Richmond Dispatch Richmond, VA

Article from Richmond Dispatch, December 22, 1896

Click image to open full size in new tab

Article Text

FINANCIAL CRASH. CHICAGO STARTLED BY A SERIES OF FAILURES, NAT L BANK OF ILLINOIS SUSPENDS. E.S Dreyer & Co., Wasmansdorf, and Heineman and the Roseland Savings Bank Carried Down-Runs on Other Banks Promptly Met. CHICAGO, ILL December 21 -At 10 o'clock this morning a large crowd gathered around the doors of the National Bank of Illinois, and creditors discussed the probability of realizing from their deposits On the large door leading to the ing-room the following notice was posted This bank is in the hands of the Na tional Bank Examiners, order COMPTROLLER OF THE CURthe doors and walls and in were notices from various the depositors of the bank stating that checks given the bank Saturday would be signers Shortly after 10 o'cleck the announce ment made of the failure of E Co., an old-established banking of at the southwest corner and Dearborn streets & Heinemann, bankers Rando.ph street, were carried financial crash to-day, and doors appointed the Security Trust Company receiver for E & & and Wasmansdorff for The receiver Dreyer appointed bill filed by this Court Superior for dissolution of the part. of the distribution made The defendant that the assets were $1.The $1,250,000 liabilities the partners have agreed business but have been to the manner in done The bill also esreal consist stocks mortgages, and certificates of deposit depression great bill the recently handled are manner careful Therefore receiver business out the handling of the estate the the assets can be realike $150,000 more than the liabilities. NO INFORMATION & S. Drever of E. and to-day no The of firm of oldest the had and Chicago of firmest the one of firm the appointed Wasmansdorff the He appeared partner his named The defendant with liabilisays complaint the of about $100,000. of announced Bank, situated WeilrzFrederick The the bank with the National Bank RUNS Garden City Banking and bank. in the Chamber by caused known generally inst tution the that Bank failed National The of fearful deposite of withdrawals the for hour regular The doors o'clock those only deposit The paid. was large of several police moving Trust and Savings and Trust and Savings banks lines of men and to get their anxious officers the bank as out. withdrawals meant departments money which would be these banks Both financially impregnable and & Co Dreyer bank the Heinemann of hands the way with family of Bank do the to with of the firms to go into failure REASSURING ACTION at taken the of Clearing meeting held which was this The afternoon hours by offered e-Currency S Lacey animously the Bankers' adopted National Bank "Resolved after That the Clearing-Hous made desire. they other persons calling to their aid such which plan. Bank of National themselves of avail Illinois Associated Banks to make to said of credit loans way the extent proved claims. of 75 per cent. upon chairman stated of the Clearing-House that evident do this the was readiness any that formal probable formed be would object set forth in the accom although the committee resoluon them. give prompt attention to appointed the duty vice-president the William F and Dummer president of Bank orthwest National of the lowing Comptroller message. which he read had the received fol. dated Washington of-the-Currency Eckels, have temporary appointed Bank Examiner and Illinois receiver of the National Mc creditors publish notice to instructed him He informs to prove House me that the Clear Committee evidence will advance 75 published at of claims. Notice once shall and, if claims able to pay a very within considerable thirty appreciate house the action of the clearing tificates offering to advance on such The ASTOUNDING DISCOVERY Com refuse mittee decision to of the Clearing-House National Bank clearing privileges to the refuse of Illinois and funds by also to have which the bank gone the into astounding voluntary liquidation could was bank Electric had loaned $2,400,000 to that the bonds Street Railroad the Calumen Another as This Company loan exceeded on its

5. December 22, 1896 Birmingham State Herald Birmingham, AL

Article from Birmingham State Herald, December 22, 1896

Click image to open full size in new tab

Article Text

GREAT CHICAGO FAILURE National Bank of Illinois Goes to the Wall. IN A RECEIVER'S HANDS Three Other Concerns Carried Down by the Monster Crash. METHODS IMPRUDENT RECKLESS, Caused the Big Concern to Go, Says Comptroller Eckels-His Statement of the Matter-Mad Rush on Smaller Institutions. Chicago, Dec. 21.-At 10 o'clock this morning a large crowd gathered around the doors of the National Bank of Illinois, and creditors discussed the probability of realizing from their deposits. On the large door leading to the counting room the following notice was posted: "This bank is in the hands of the national bank examiners. "By order of the comptroller of the currency." Posted over the doors and walls in the corridors were notices from various depositors of the bank stating that checks given on the bank Saturday would be paid by the signers. Shortly after 10 o'clock the announcement was made of the failure of E. S. Dryer & Co., an old established banking institution on the southwest corner of Washington and Dearborn streets. Wasmansdorff & Heinemann, bankers at 145 and 147 Randalph street were carried down by the financial crash today and closed their doors. Judge Freeman appointed the Security Title and Trust company receiver for E. S. Dreyer & Co., and Wasmansdorff & Heinemann. The receiver for Dryer & Co. was appointed on a bill filed by E. S. Dreyer in the superior court this morning asking for a dissolution of the partnership and a distribution of the assests. Robert Berger was made defendant. The court was told that the assets were $1,500,000, and the liabilities $1,250,000. The bill says that the partners have agreed to close up the business, but have been unable to agree as to the manner in which it is to be done. The bill also says that the assets consist of real estate, real estate mortgages, stocks, notes and accounts receivable, while the liabilities are open accounts and certificates of deposits. There has been great depression in the value of real estate recently, the bill says, and unless the assets are handled in a conservative and careful manner great loss will result. Therefore a receiver is asked for to close out the business. By a conservative handling of the estate, the complainant says, the assets can be made to realize $150,000 more than the liabilities. None of the officers of E. S. Dryer & Co. was. at the bank today, and the creditors of the institution could get no information as to the failure. The receiver for the firm of Wasmandorff & Heinmann was appointed at the request of Otto Wasmansdorff, senior member of the firm. He appeared in the superior court and named his partner. William Heinemann, as defendant. The assets are given as $550,000, with liabilities of $415,000. The complaint says that a receiver can admister the assets so as to produce a surplus of about $100,000. The failure is also annuonced of the Roseland Savings bank, at No. 106 Michigan avenue. Frederick Wielrzma is at the head of the bank. The bank did business with the National Bank of Illinois. A run on the Garden City Banking and Trust company's bank in the Chamber of Commerce building was caused by the fact becoming generally known that the institution cleared through the failed National Bank of Illinois. The line of fearful depositors was not long, and withdrawals were promptly made until the regular hour for closing the bank, 3 o'clock. The doors were then closed, and only those depositors who were inside were paid. At the Illinois Trust and Savings, and the American Trust and Savings banks there were small lines of men and women who were anxious to get their money in hand, and the bank officers were glad to pay it out, as the withdrawals in the savings departments meant a gain of interest money which would be due January 1. Both these nks are regarded as financially impregna ble.

6. December 22, 1896 New-York Tribune New York, NY

Article from New-York Tribune, December 22, 1896

Click image to open full size in new tab

Article Text

A BIG BANK GOES DOWN: Continued from First Page. fidence in the city's ability to meet all obligations promptly. He declared the city was never in better condition financially and the failure would not embarrass it in payment of interest money the first of the year. The West Park Board, of which Carll Moll, cashier of the failed National bank, is a Commissioner, has been caught to the extent of $300,000, and a large amount is on deposit with E. S. Dreyer. who is treasurer of the Board. County Treasurer D. H. Kochberger has $300,000 of county funds tied up in the National bank, and Frederick M. Blount. the newly appointed treasurer of the Drainage Board, had over $80,000 of district funds at the bank. whose officers were on his bond. The bank officials were also on the bonds of the city and county and West Park Board treasurers. The fact that the bank officers were bondsmen of these public officials was a strong reason for the decision of the other banks to force immediate closing of the bank before funds were depleted. SMALLER CONCERNS GO UNDER. At 10 o'clock E. S. Dreyer appeared in the Superior Court, accompanied by his lawyer, Levi Mayer, and filed a petition for the appointment of a receiver. He made his partner. Robert Berger, defendant. The Court was told the assets were $1,500,000, and liabilities $1,350,000; that under the partnership agreement the business could be closed at any time, but there was disagreement as to the manner in which the concern should be wound up. Great depreciation in the value of the real estate holdings of the firm is set forth in the bill. and the receiver was asked for to prevent heavy loss Mr. Dreyer alleged that his interest exceeds that of Mr. Berger two to one, and that by a careful handling of the estate it can be made to realize $150,000 more than the liabilities. All the allegations were admitted by Mr. Berger. except that regarding the comparative interests of the partners. On this showing Judge Freeman appointed the Security Title and Trust Company receiver for the Dreyer Bank. and its doors were closed. There was no excitement in the crowd which surrounded the bank building at Dearborn and Washington sts., and there was general confidence among the German depositors that they would get all the money due them in a short time. Dreyer & Co. have been in the banking business here for a score of years, and there is no more prominent German-American citizen in Chicago than Mr. Dreyer. During all that time the bank has cleared through the National Bank of Illinois. The first intimation which Dreyer & Co. recelved that the National Bank might not resume was yesterday afternoon. and immediate steps were taken to protect their interests. No preferences. direct or indirect, were given to any one. After the appointment of a receiver many generous offers came from New-York and other cities. Otto Wasmansdorff, senior partner of the other banking firm, filed the bill for the appointment of a receiver soon after the Dreyer proceedings. He named his partner. William Heinemann, defendant. The assets were given in the bill at $550,000. and liabilities $415,000. The petition was similar to that filed in the Dreyer case, and Mr. Heinemann admitted all the allegations made. Judge Freeman at once granted the petition, and named the Security Title and Trust Company as receiver, issuing an injunction in both cases restraining any one interested from interfering with the assets or receiver. Wasmansdorff and Heinemann stood high in the community as private bankers. The firm was established on the West Side more than twenty-five years ago. Germans did business chiefly with both the private banks. The Wasmansdorff estate will require conservative and cautious handling to pay dollar for dollar. Of their liabilities about $200,000 is for savings deposits. Dreyer & Co. had no savings deposits. The misfortune which has overtaken both the banking firms is the cause of general regret and sympathy. Mr. Dreyer came to Chicago more than thirty years ago from Germany. A SAVINGS BANK COLLAPSES. The Roseland Savings Bank, which is situated in the small suburb of Roseland. near Pullman, peopled largely by Hollanders, did not open its doors for business this morning. Fred Weirsma, who owns the bank, posted a notice that the bank would not be open to-day. The announcement drew a crowd, but there were no scenes of excitement. The depositors, who are mostly poor people, were assured they would get their money as soon as the money was received from the National Bank of Illinois. The bank was established two years ago. Farson, Leach & Co. are the chief owners of the Calumet Electric Railway, which is a new and extensive enterprise, embracing several towns southeast from Sixty-third-st. The loan of $2,400,000 obtained from the National Bank was used to build and equip the road, which is now statement Trust anxious was The in directed heaviest Company. full depositors that operation. at run they the It on and withstood Garden were city to-night banks thoroughly City the during gave attack Banking prepared out the of and day 200 the to pay everybody who wanted money to-morrow. though they believed the worst was over. The bank has 2.000.000 on deposit, but the savings

7. December 23, 1896 The Enterprise Wellington, OH

Article from The Enterprise, December 23, 1896

Click image to open full size in new tab

Article Text

CRASH FOLLOWED CRASH. Four Chicago Banks Fail in Rapid Succession The Liabilities Aggregate MilHons. CHICAGO, Dec. 22.-The closing of an institution which was considered to be the second strongest national bank in Chicago, quickly followed by the failure of three private banking houses which did business with it, caused excitement in financial circles Monday and led to runs on several banks by timid depositors. The banks which were closed follow: National Bank of Illinois, capital $1,000,000, liabilities $11,000,000. E. S. Dreyer & Co., bankers, mortgage brokers and real estate dealers, liabilities $1,500,000; estimated value of assets $1,650,000. Wasmansdorff & Heinmann. bankers and mortgage brokers, liabilities $416,000; estimated value of assets $550,000. Roseland Savings bank, Roseland, Ill., small capital and assets estimated equal to liabilities. All the private banks which closed their doors cleared through the National Bank of Illinois and the big crash compelled their suspension to protect creditors. The two private city banks went into liquidation through receivership proceedings in the courts, the Security Title and Trust Co. being named as receiver. The decision of the clearing house committee to refuse clearing privileges to the National Bank of Illinois and also to refuse funds by which the bank could have gone into voluntary liquidation was chiefly due to the astounding discovery that the bank had loaned $2,400,000 to the Calumet Electric Street Railroad Co. on its bonds as sole security. This loan exceeded the bank's capital and surplus. Another account which caused the bankers to hesitate was stated to be a loan of nearly $500,000, the debtor being E. S. Dreyer & Co. It is reported that the National Bank of Illinois has on hand about 45 per cent. of its deposits of $11,000,000 and there is general confidence that depositors will be paid in full in a short time. WASHINGTON, Dec. 22.-The comptroller of the currency was notified Monday by Bank Examiner McKeon at Chicago that the clearing house committee at Chicago had authorized the statement that immediately upon claims against the National Bank of Illinois being approved by the receiver, they would advance 75 per cent. on the claim in order tosave time. Comptroller Eekels appointed Mr. McKeon receiver with instructions to publish notice of claims at once' and also to telegraph banks having the National Bank of Illinois as reserve agent, that if they prove claims at once they can get 75 per cent.

8. December 24, 1896 The Daily Morning Journal and Courier New Haven, CT

Article from The Daily Morning Journal and Courier, December 24, 1896

Click image to open full size in new tab

Article Text

WESTERN BANK FAILURES TWO CHICAGO BANKERS ARRESTED FOR CRIMINAL METHODS. Short Receivership of a Bank-Story of Why the Calumet Bonds Were Taken by the Defunct Illinois National-Probable Action Relative to Paying DepositorsThe Scare Seems to Have Subsided. Chicago, Dec. 23.-E. S. Dreyer and his partner, Robert Berger, of the banking firm of E. S. Dreyer & Co., which failed on Monday, were arrested this afternoon, charged with receiving a deposit, knowing their bank to be insolvent, and taken to the central police station. Subsequently they were released by Justice Hall in $500 bonds, pending the hearing of their case, which will take place on January 1. The shortest bank receivership on record-forty-eight hours-was that of John H. Nichols, who was appointed receiver Monday afternoon for Frederick Wiersma, proprietor of the Roseland Savings bank of Roseland, which cleared through the National Bank of Illinois. The receiver appeared before Judge Hancy this afternoon and reported that there were assets of $83,000 in cash and real estate, and liabilities of $51,400. Sufficient money had been raised to carry on the business, and the judge discharged the receiver. The bank will open its doors to-morrow morning. Vice President Hammond, who is charged with pulling the wool over the eyes of the directors of the defunct national bank, would not talk, but a friend said: "Mr. Hammond is no more to blame for the amount of money loaned on Calumet Electric security than are the members of the finance committee of the bank and its directors. It was necessary for the purposes of a man connected with the South Chicago City Railway, and of an officer of one of the biggest banks in Chicago, to depreciate : the Calumet road stock. and to this end these two men accomplished the wreck of the National Bank of Illinois. "Members of the finance committee and directors of the failed bank knew the full amount of the Calumet loan, and hoped to make individual fortunes e on the success of the venture. They were given stock of the road, and the purpose of the deal was to sell the property and, besides paying the bank loan. make a neat sum for the directors. There has been a sharp contest between the General Electric and South : Chicago City Railway companies to get I control of the Calumet bonds. The latter road will be worth $5,000,000 in five e years, and the outsiders who ruined E the bank know it, but they wanted to buy the bonds cheap." t Levy Mayer, counsel for the NationI al Bank of Illinois and Dreyer & Bere ger. said this afternoon: : "Dreyer & Co. cleared through the b National Bank of Illinois. At the close of business Saturday afternoon there was not the slightest doubt entertained by the firm, or even the shadow of ) a suggestion that they would not go on as usual Monday morning. The end of the National Bank of Illinois was as sudden as it was amazing. Dreyer & Co. did not know until Sunday that I their clearing bank was in danger. They then took steps which resulted in the receivership. The causes for the 0 National Bank of Illinois' failure and / its condition will no doubt in due time f be placed before the public. These S Calumet Electric bonds, which have of 5 a sudden dwindled into insignificant an e asset, have for some years been coveted f by some outsiders, and the interest on e these bonds has always been promptly S met."

9. December 24, 1896 The Scranton Tribune Scranton, PA

Article from The Scranton Tribune, December 24, 1896

Click image to open full size in new tab

Article Text

record. forty-eight hours, was that of John H. Nichols, who was appointed receiver Monday afternoon for Frederick Wiersema, proprietor of the Roseland Savings bank. of Roseland, which cleared through the National bank of Illinois. The receiver appeared before Judge Haney this afternoon and reported there were assets of $83,000 in cash and real estate and liabilities of $51,000. Sufficient money had been raised to carry on the business and the judge discharged the receiver. The bank will opens its doors tomorrow morning.

10. December 24, 1896 Richmond Dispatch Richmond, VA

Article from Richmond Dispatch, December 24, 1896

Click image to open full size in new tab

Article Text

DREYER AND BERGER ARRESTEDThe Receiver of the Roseland Bank Discharged - Continuation, But Gradual Dimination of the Runs on Savings Institutions. CHICAGO, ILL., December 23.-Charges and counter-charges in connection with the management of the National Bank of Illinois were made to-day. and engrossed the attention of the financial community, to the exclusion of the day's events surrounding the big national bank collapse. The arrest of Bankers Dreyer and Berger, the discharge of the receiver of the Roseland Bank, and the continuation of the savings depositors' run on the Illinois Trust and Savings Bank and the Hibernian Banking Assoclation were the principal developments. The public scare is practically over, and a complete restoration of confidence seems to have been effected. By arrangement of the Police Department. counsel for the defendants, and Justice of the Peace W. T. Hall, the accused private bankers, Edward S. Dreyer and Robert Berger, entered Justice Hall's private court-room this afternoon. Detective Fay, who held the warrants which F. E. Kennedy, a saloon-keeper and a depositor at Dreyer & Co.'s bank, had sworn to, announced that the men were under arrest. The charge in each case is that the banker received a deposit of $153 at the close of business last Saturday, knowing at the time that they were insolvent The defendants were accompanied by Adolf Kraus, their lawyer, and Charles H. Wacker, of the Wacker & Birk Brewing Company. The latter signed the bond of the bankers in the sum of $500 each for their appearance in Justice Hall's court January 2d. Kennedy says he is acting for himself only, but his action is regarded as premature and ill-advised by those who believe the Dreyer & Co. failure could not have been foreseen. The shortest bank receivership on record-forty-eight hours-was that of John H. Nichols, who was appointed receiver Monday afternoon for Frederick Wiersema, proprietor of the Roseland Savings Bank, of Roseland, which cleared through the National Bank of Illinois. He appeared before Judge Hancy this afternoon, and reported that there were assets of $83,000 in cash and real estate, and liabilities of $51,600. Sufficient money had been raised to carry on the business, and the Judge discharged the receiver. The bank will open its doors to-morrow morning. RUNS DECLINING. The runs on the Illinois Trust and Savings and Hibernian banks continued to-day in lesser degree, and when the usual closing hour arrived there was not enough of a line at either bank to dignify the scare as a run. No vestige of the excitement is expected to remain after Christmas-Day. The officers of the IIlinois Trust Company were so confident that the run on their bank had come to an ignoble end, that, after paying out under the sixty-days'-notice rule for depositors of over $100 for an hour or so, they decided to remove all restrictions, and began payment in full to all depositors in line. At the Hibernian bank the notice was adhered to. A staff of accountants, in charge of an expert, was put to work during the day at the Dreyer & Co., and Wasmansdorfe & Heinemann banks, and next week a report is expected which will give an intelligent idea of the condition of both houses. Vice-President Hammond, who is charged with pulling the wool over the eyes of the directors of the defunct national bank. would not talk for publication when seen to-day at his Evanston home; but a friend, speaking for him, said: "W. A. Hammond is to be made the scapegoat of the failure of the bank. He is a broken man to-day, but he is not any more to blame for the amount of money loaned on the Calumet Electric security than are members of the Finance Committee of the bank and its directors. It was necessary for the purposes of a man connected with the South Chicago City railway, and an officer of one of the biggest banks in Chicago, to depreciate the Calumet-road stock: and to this end these two men accomplished the wreck of the National Bank of Illinois. Members of the Finance Committee and2directors of the failed bank knew the full amount of the Calumet loan. and hoped to make individual fortunes on the success of the venture. They were given stock of the road, and the purpose of the deal was to sell the property: and, besides paying the bank loan make a neat sum for the directors. There has been a sharp contest between the General Electric and South Chicago City Railway companies to get control of the Calumet bonds. The latter road will be worth $5,000,000 in five years, and the outsiders who ruined the bank know it: but they wanted to buy the bonds cheap."

11. December 24, 1896 Birmingham State Herald Birmingham, AL

Article from Birmingham State Herald, December 24, 1896

Click image to open full size in new tab

Article Text

CHICAGO'S SCARE IS OVER One Man Alone Will Suffer Financially. A PREMEDITATED SCHEME On the Part of Directors of the National Bank of Illinois TO ROB OTHERS HAS CROPPED OUT Calumet Electric Stock Was Inflated and the Bubble Rurst-Assignments and Failures in the Windy City and Others Recorded for the Day. Chicago, Dec. 23. -Charges and countercharges in connection with the management of the National Bank of Illinois were made today, and engrossed the attention of the financial community to the exclusion of the day's events surrounding the big national bank collapse. The arrest of Bankers Dreyer and Borger, the discharge of the receiver of the Roseland bank and the continuation of the savings depositors' run on the Illinois Trust and Savings bank and the Hibernian Banking association were the principal developments. The public scare is practically over, and a complete restoration of confidence seems to have been effected. By arrangement of the police department, counsel for the defendants and justice of the peace, the accused private Edward S. entered this court Borger, bankers, room Justice afternoon. Dreyer Hall's and which Detective private Robert F. Fay, who held the warrants E. Kennedy, a saloon keeper and depositor at Dreyer & Co.'s bank, had sworn to, announced that the men were under arrest. The charge in each case is that the tankers received a deposit of $153 at the close of business last Saturday, knowing at the time that they were insolvent. The defendants were accompanied by Adolph Kraus, their laweyr, and Charles H. Wacker, of the Wacker & Birk Brewing company. The latter signed the bond of the bankers in the sum of $500 each for their appearance in Justice Hall's court January 2. Kennedy says he is acting for himself only, but his action is regarded as premature and illadvised by those who believe the Dreyer & Co. failure could not be foreseen. The shortest bank receivership on record, forty-eight hours, was that of John H. Nichols, who was appointed receiver Monday afternoon for Frederick Wierseman, proprietor of the Roseland Savings bank, of Roseland, which cleared throu? h the National Bank of Illinois. The receiver appeared before Judge Hancy his afternoon and reported that there yere assets of $83,000 in cash and real e late, and liabilities of $51,600. Sufficient money had been raised to carry on the business, and the judge diswill charged the receiver. The bank open its doors tomorrow morning. The run on the Illinois Trust and Savings and Hibernia Banks continued today in lesser degree, and when the usual closing hour arrived there was not enough of a line at each bank to dignify the scare as a run. The officers of the Illinois Trust company were so confident that the run on their bank had come to an end that after paying out under the sixty day notice rule for depositors of an hour or so, restrictions payto all over remove ment $100 in all full for depositors and began decided in line. to At the Hibernian Bank the notice was adhered to. A staff of accountants, in charge of an expert, was put to work during the day at the Dreyer & Co., and Wasmansdorff and Heinemann banks and next week a report is expected which will give an intelligent idea of the condition of both houses. Vice-President Hammond, who is with the directors nawould not tional eyes charged of bank, the pulling of the the talk wool defunct for over publication when seen today, but a friend, speaking for him said: "W. A. Hammond is to be made the scapegoat of the failure. of the bank. He is a broken man today, but he is not any more to blame for the amount of money loaned on Calumet Electric security than are the members of the finance committee of the bank and its directors. It was necessary for the purposes of a man connected with the South Chicago City Railway and an officer of one of the biggest banks in Chicago, to depreciate the Calumet road stock, and to this end these two men accomplished the wreck of the National Bank of Illinois. Members of the fibance committee and directors of the failed bank knew the full amount of the Calumet loan and hoped to make individual fortunes on the success of the venture. They were given stock of the road and the purpose of the deal was to sell the property, and besides paying the bank loan, make a neat sum for the directors. There has been a sharp contest between the General Electric and South Chicago City Railroad companies to get control of the Calumet bonds. The latter road will be worth $5,000,000 in five years and the outsiders who ruined the bank know it, but they wanted to buy the bonds cheap."

12. December 24, 1896 The Salt Lake Herald Salt Lake City, UT

Article from The Salt Lake Herald, December 24, 1896

Click image to open full size in new tab

Article Text

Chicago, Dec. 23.-Charges and the coun- manin connection with Illinois ter-charges of the National Bank of the atagement were made today and community engrossed to # 1e tention of the financial events surroundexclusion of the day's collapse ing big national bank and the arrest of Bankers Dreyer of Ber- the The the discharge of the continuation receiver of ger, Roseland bank. and the on the Illinois savings depositors bank run and the HiberTrust and Savings were the prinBanking association scare is nian developments. The public restoracipal over, and a complete been practically tion of confidence seems to have checlarrangementofthepoli enecledrangement of the p the a a prithe peace, W. Edward S. Dreyer and vate bankers, Justice Hall's private Roberts, entered o'clock this afternoon. court room at 2 who held the warrants Detective Fay, a saloonkeeper and which F. E. Kennedy, & Co.'s bank, had depositor at Dreyer that the men were under sworn arrest. to, announced The charge in a each deposit case of is that the banker of received business last Satur$153 at the close the time that they were day, know ng at defendants were accominsclvent. The Krous, their lawyer, panied by Adolph of the Wacker & and Charles H Wacker The latter signed Birk Brewing company in the sum of $500 each for Hall's court the bond of their appearancennedy the the he is acting for as premature and actions are regarded who believe that ill-edvised by those failure could not be the Dreyer In & this Co connection Bank Levi of Mayer, Illinois counsel foreseen. for the National said to a reporter of and the Dreyer United & Asosciated Berger, Presses today: WAS AMAZING. "Dreyer & Co. cleared through At the close the Na- of tional Bank of Illinois. afternoon there was not business the slightest Saturday doubt shadow entertained of a suggestion by the firm or even would the not go on as usual Mon- bank that they Without a clearance end day morning. possibly open up. The cf they the could National not Bank amazing. of Illinois As was one as of as it was slightest insudden it: counsel, I had not was the any suspicion timation the that bank there until lite Saturday until Satur- n ght against Co. did not know in danDreyer & clearing bank was day that their took steps which reger. They then The receiver sulted in the receivership The great agitahas all their property. existing has made some tion at present hasty in their critimen precipitate and and advice When cism of their action subsided and the exthe excitement has thorough investigaaminer has made a and then only, will tion into the estate, to calmly pass pèople be in The a position cause for the National condiBank judgment. of Illinois failure and time its be placed tion will no doubt in These due Calumet Electric before bonds, the public. which insignificant all of a sudden an asset, have dwindled into SO been coveted by have for some and years the interest on these some bonds outsiders, has always been promptly met. RECEIVER DISCHARGED shortest bank receivership H. on Mich- recThe 48 hours, was that of John Monday ord, who was appointed receiver prools, Frederick Wierseman, citernoon of for the Roseland Savings bank the of prietor which cleared through receiver Roseland, Bank of Illinois. The afterNational before Judge Hanecy this assets appeared and reported that there were estate and noon in cash and real had of $83,000 of $51,500. Sufficient money and liabilities raised to carry on the business The been judge discharged the receiver. morning. bank the will open its deors tomorrow THE RUNS MADE runs on the Iliinois Trust continue and The and Hibernian banks closing Savings today in lesser degree was and a very when small line. hour No vestige arrived of there the excitement The officers is expected of the after Christmas day confident that the Illinois Trust were SO had come to an igrun on end, their that bank after paying out under of over the noble notice rule for deposits to remove 60-day for an hour or so, decided in full $100 and began paying all restrictions in line. At the Hibernian bank to all the depositors notice was adhered to of accountants, in charge the of day an A staff was put to work during Wasmansdorf expert, Dreyer & Co. and week a at the Heinemann bank and next an inand expected which will give both report telligent is idea of the condition of who is na- the the publicaeyes of bank would not talk for Evanston tional when seen today at his for him, said: home, tion but a friend, speaking THE SCAPEGOAT. Hammond is to be made bank. the "W. A. of the failure of the he is not scapegoat a broken man today but amount of He is to blame for the Electric semoney any more loaned on the Calumet members of the curity than committee are of the bank the and pur- its finance necessary for pose directors. of a man It was connected and with an the officer South of of t Chicago the City biggest railway banks m Chicago, stock, and to a one depreciate the Calumet two men road accomplished Ilt to this end these the National Bank of I the wreck of of the finance committee the linois. Members of the failed bank knew r and directors the Calumet can. and full amount of individual fortunes on given the hoped to make They were h success of the the road venture. and the purpose and of the bestock of the property, r d sides deal was paying to the sell bank loan, There make has a been neat t sum for the directors. between the General Electric sharp and contest South Chicago control City of Railway Calumet C companies to get road will be worth t n $5 bonds. The in five latter years, and the outsiders but they 000,000 ruined the bank know chean." it. who buy the bonds bank, wanted W. R. to Page, a director of the said: saw on the book of applicants that purC "I never kept at the bank for Electric for loans name of the Calumet rea pose the The statements published with a the garding company. Mr. transactions Hammond's are connection all true. The W these queer committee of the directory made rey auditing on the representation Ham-

13. December 25, 1896 Daily Kennebec Journal Augusta, ME

Article from Daily Kennebec Journal, December 25, 1896

Click image to open full size in new tab

Article Text

QUEER TRANSACTIONS Coming Out Regarding Management of Bank of Illinois. Chicago, Dec. 24.-Some queer transactions, it is rumored, are coming to light in connection with the Bank of Illinois failure. An officer is charged with receiving a commission of $125,000 for making one of the loans to the Calumet Electric Street Railway Company. Some of the directors of the bank claim that they were not fully informed of the Culmet loans until Saturday, believing them to be nearly $1,000,000 less in the aggregate than they proved to be. A rumor has gained some currency to the effect that many of the loans made by the National Bank of Illinois were unsecured. John H. Nichols was appointed receiver, Monday. for Frederick Wierseman. proprietor of the Roseland Savings Bank. Sufficient money has been raised to carry on the business and the judge has discharged the receiver. The bank opened its doors, today.

14. December 25, 1896 Vermont Phœnix Brattleboro, Bellows Falls, Ludlow, VT

Article from Vermont Phœnix, December 25, 1896

Click image to open full size in new tab

Article Text

LATE NEWS. A Financial Flurry. Caused by the Failure of the National Bank of Illinois at Chicago---Reckless Methods of Loaning Money. Chicago has had a financial flurry, caused by the closing on Monday of the National bank of Illinois, which was considered the strongest national bank in the city. The failure resulted in three private banking houses going to the wall. The failure of the National bank was precipitated by the action of the Clearing House association in suspending the bank from membership. The comptroller of the currency appointed a temporary receiver for the Institution. The liabilities are $11,000,000. The private institutions that suspended were E.S. Dreyer & Co., liabilities $1,500,000; Wasmansdorf & Heinemann, liabilities $416,000, and the Roseland savings bank of Roseland, III. It is said that the failure of the National bank of Illinois is due to injudicious, reckless and imprudent methods followed by the officers. The Clearing House association met Monday, and took steps for the immediate relief of the bank's creditors, agreeing to advance loans to the extent of 75 per cent upon properly proven claims. The Clearing House committee found that the bank had loaned $2,400,000 to the Calumet Electric Street Railway company on its bonds as sole security. This loan exceeded the bank's capital and surplus. Another account which caused the bankers to hesitate was stated to be near $500,000, the debtor being E. S. Dreyer & Co. Robert Berger, the only partner of Mr. Dreyer, is a son-in-law of George Schneider, president of the failed National bank. There were two other big loans which were considered poor collateral. It is reported that the National bank of Illinois has on hand about 45 per cent of its deposits of $11,000,000, and there is general confidence that depositors will be paid in full in a short time. The failures caused a run on the Garden City banking and trust company. All the depositors received their money, and the company was fully prepared for all who might make demands. On the following day there were runs on the Illinois Trust and Savings bank and the Hibernian Banking association, two of the strongest institutions in the city. It was decided to demand the sixty-day notice in case of all withdrawals exceeding $100. Warrants were issued in Chicago Tuesday for the arrest of E. S. Dreyer and Robert Dreyer, of the failed banking firm of E. S. Dreyer & Co., charged with violation of the state banking law by receiving deposits after the bank was insolvent. The Bank of Minnesota, of St. Paul, was closed Tuesday by the state bank examiner. The Union Stock Yards bank, in South St. Paul, a branch of the Bank of Minnesota, also closed. The failure was caused by the bank's inability to make collections. Angus & Gindele, a large Chicago contracting firm, and a heavy debtor of the suspended National bank of Illinois, failed Tuesday. The assets are claimed to be $800,000 and the liabilities $250,000.

15. December 26, 1896 Western Kansas World Wakeeney, KS

Article from Western Kansas World, December 26, 1896

Click image to open full size in new tab

Article Text

Grant street, from Pine to Magnolia, destroyed by fire. Loss, $75,000; insurance. $25,000. THE National Bank of Illinois at Chicago, with assets amounting to $15,000,000, has suspended. The causes, as given by the clearing house committee, were "unwarrantable and injudicious loans," through which the capital and surplus had been imperiled. AN explosion occurred in a confectionery manufactory at Casino, Italy, on the 21st which killed seven people. THE failure was announced of the Roseland Savings bank at Chicago on the 21st. The bank did business with the National Bank of Illinois. ABOUT 500 masked men broke into the jail at Mayfield, Ky., on the night of the 20th and hanged Jim Stone, a negro brute, in the courthouse vard and then riddled his body with bullets. A TERRIFIC explosion of gas occurred in a mine at Wilkesbarre, Pa., on the 21st and over 20 miners were imprisoned in the earth, but 14 were afterwards rescued and hopes were entertained of getting the others before the deadly after-damp claimed them as victims. THE American Federation of Labor at Cincinnati on the 21st appointed John Fernseth, of the Seamen's International union, as a committee of one, with headquarters at Washington, to look after labor interests in the nation's capital. After some routine business the convention then adjourned sine die. THE Odd Fellows' block at Elizabethport, N. J., valued at $200,000, was destroyed by fire on the 19th. A WAGON was struck while crossing the track of the Chicago & Northwestern road at Denison, Ia., and Mr. Krual, a farmer, was fatally hurt and his wife was killed. THE Choctaws have signed an agreement with the Dawes commission to take lands in severalty, for the sale of town lots and for the transfer of criminal jurisdiction to the federal courts. Officials at Washington say that the treaty with the Choctaws is very important, as it is the entering wedge which will dispose of the whole Indian problem. AT the convention at Cincinnati on the 19th the headquarters of the American Federation of Labor were changed from Indianapolis to Washington by a vote of 1,594 to 730. It was also ordered that an assessment of one cent per capita be imposed to secure an eight-hour law. Two boilers in the Kent Woolen Co.'s mills at Providence, R. I., exploded on the 19th, killing four persons outright and fatally injuring another. THE Masonic hall, the largest building in New Brunswick. N. J., was destroyed by fire on the 21st. Loss, $400,000. By the explosion of a piano lamp at New York, which set the house on fire, Aaron Goldsmith, his wife and three children lost their lives. Two Proctors, Dink and Arch, father and son, were taken from the jail at Russellville, Ky., on the night of the 17th and lynched and Arch's brother, Bill, was shot to death in his cell. They were all charged with the murder of Doc and Aaron Crafton. The mob came from Adairville and was composed of about 75 men. THE interstate commerce commissioners made public their annual report on the 17th. It recommends "that it be made a penal offense for any person to engage in the business of selling interstate passenger tickets unless he is an authorized agent of the carrier, duly constituted such by written appointment." Free passes are also denounced. A number of technical amendments to the interstate commerce law are also urged.

16. December 26, 1896 The Democratic Advocate Westminster, MD

Article from The Democratic Advocate, December 26, 1896

Click image to open full size in new tab

Article Text

More Business Prosperity (?) The following failures were announced in Baltimore, Md.:-Charles G. Woodward & Co., dealer in pianos, etc.; Thomas F. Pierce, contractor; Diamond Ice Company; Union Soap Company. The United States Court at Chicago was asked on Saturday to appoint a receiver for the International Building, Loan and Investment Association. It is charged that the liabilities are $940,000, and that the assets do not exceed $370,000. Randall, Selby & Bell, agricultural implement dealers, of Des Moines, Iowa. failed on Saturday for $125,000. The Defiance, Ohio. Street Railway and Electric Company has been put in the hands of a receiver. A Terre Haute despatch says that the receiver of the Vandalia system has taken steps for a radical reduction in expenses. The position of General Superintendent has been abolished. The salaries of officials and clerks have been reduced from 15 to 331 per cent., and a number have been dropped. The receiver says that the train service men will not be affected. Joseph Stern, large dealer in clothing, etc., in Cumberland, Md., failed on Monday. Roanoke, Virginia, machine shop closed on Monday until January 1st, throwing 600 men out of employment. The National Bank of Illinois, of Chicago, failed to open its doors Monday, as a result of the action of the Clearing House Association in suspending the bank from membership. The liabilities amount to $11,000,000. The failure was followed by that of the Chicago banking firms of E. S. Dreyer & Co., whose liabilities are $1,500,000, and Wasmansdorf & Heinemann, liabilities $416,000, and of the Roseland Savings Bank, of Roseland, III. It is said that the failure of the National Bank of Illinois is due to injudicious, reckless and imprudent methods followed by the officers. The failure of Angus & Gindele, general contractors, the American Brewing, Malting and Elevator Company, the George A. Weisse Malting and Elevator Company 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 of the bank failures on Tuesday. The Bank of Minnesota, at St. Paul, capital $600,000, one of the best-known and generally considered one of the strongest in the Northwest, was closed on Tuesday. Several small failures were announced in Baltimore, Md., on Tuesday. A bill was filed in Chicago Monday by the National Linseed Oil Company and the Grove Linseed Oil Company, asking for the appointment of a receiver for the Fireman's Insurance Company, which, they claim, is totally insolvent. The Bank of West Superior. Wisconsin, closed on Wednesday. The Parsons-Pelletier Dry Goods Company, one of the largest houses of the kind in Sioux City, Iowa, failed on Wednesday.

17. December 26, 1896 The Diamond Drill Crystal Falls, MI

Article from The Diamond Drill, December 26, 1896

Click image to open full size in new tab

Article Text

CHICAGO BANK TROUBLES. Practically Ended-Placing the Blame for the Crash. Chicago, Dec. 24.-Charges and coun charges in connection with the man of the National Bank of Illi were made Wednesday, and en the attention of the financial mmunity to the exclusion of the day's surrounding the big national collapse. The arrest of Bankers and Berger, the discharge of the eiver of the Roseland bank and the atinuation of the savings depositors on the Illinois Trust and Savings and the Hibertian Banking asso were the principal develop The public scare is practically and a complete restoration of con seems to have been effected. S. Dreyer and his partner, Rober of the banking firm of E. S & Co., which failed on Monday for whom warrants had been issued arging them with receiving a deposit owing their bank to be insolvent themselves up Wedneseday. Sub quently they were released by Justice in $500 bonds each, pending the aring of their case, which will take on January 2. Adolph Kraus, the vyer, and Charles H. Wacker. 1 were their bondsmen. The shortest receivership on record hours, was that of John H. Nichols was appointed receiver Monday aft for Frederick Wiersema, pro of the Roseland savings banl Roseland, which cleared through the tional Bank of Illinois. The receiv appeared before Judge Haneey ednesday afternoon and reported were assets of $83,000 in cash and estate and liabilities of $51,600 fficient money had been raised to on the business, and the judge dis arged the receiver. The bank wil its doors this morning. The runs on the Illinois Trust and vings and the Hibernian banks con Wednesday in lesser degree, and the closing hour arrived there not enough of a line at either banl dignify the scare as a run. N of the excitement is expecte Christmas day. The officers o Illinois Trust were so confiden the run on their bank had come t ignoble end that after paying ou the 60-day notice rule for de of over $100 for an hour or so de to remove all restrictions and be payment in full to all depositors ii At the Hibernian bank the notic adhered to. staff of accountants, in charge o expert, was put to work during th at the Dreyer & Co., and Wasmans & Heinemann banks and nex a report is expected which wil an intelligent idea of the condition both houses. Pending instructions from Comp Eckels, Bank Examiner McKeo taken no steps as yet to criminall osecute William A. Hammond, sec vice-president of the National Ban Illinois. His arrest, however, is sai be a certainty, and the charge which be preferred against him is thn violating the national banking laws Other officials are also believed t had at least a guilty knowledge o same transactions. Presiden hne:der's lips were closed, it is us by allowing the debts of his son law to the bank to overstep all lega The rival banks of the National Ban Illinois in Chicago have profited b failure. This institution had one o largest and most profitable countr rrespondences in the west. On it were also some of the stronges in New York, Boston, Philade Cleveland, Cincinnati, St. Loui Kansas City, and in the west man the largest German-American bank interests transacted their outsid siness through the National Ban Illinois. The bulk of this corre ondence was absorbed by the othe a day after the failure. Before the clearing-house committe taken its final action Sunday after

18. December 26, 1896 The Diamond Drill Crystal Falls, MI

Click image to open full size in new tab

Article Text

ITS DOORS CLOSED. Suspension of the National Bank of minois at Chicago. Chicago, Dec. 22.-The closing of an institution which was considered to be the second strongest national bank in Chicago, quickly followed by the failure of three private banking houses which did business with it, caused a flurry of excitement in financial circles Monday and led to runs on several banks by timid depositors. A flood of rumors relative to other banks and business firms added to the intense nervousness hich pervaded all classes of people long after banking hours and the close of the courts. The banks which were closed follow: National bank of Illinois; capital, $1,000,000; liabilities, $11,000,000. E. S. Dreyer & Co., bankers, mortgage brokers and real estate dealers; libilities, $1,500,000; estimated value of assets, $1,650,000. Wasmansdorff & Heinemann, bankers and mortgage brokers; liabilities, $416,000; estimated value of assets, $550,000. Roseland savings bank, Roseland, Ill.; small capital and assets estimated equal to liabilities. All the private banks which closed their doors cleared through the National bank of Illinois and the big crash compelled their suspension to conserve their assets and protect creditors. The two private city banks went into liquidation through receivership proceedings in the courts. The decision of the clearing house committee to refuse clearing privileges to the National bank of Illinois and also to refuse funds by which the bank could have gone into voluntary liquidation was chiefly due to the astounding discovery that the bank had loaned $2,400,000 to the Calumet Electric Street Railroad company on its bonds as sole security. This loan exceeded the bank's capital and surplus. Another account, which caused the bankers to hesitate was stated to be near $500,000, the debtor being E. S. Dreyer & Co. Robert Berger, the only partner of Mr. Dreyer, is a son-in-law of George Schneider, president of the failed national bank. There were two other big loans which were considered poor collateral.

19. December 28, 1896 The Atlanta Constitution Atlanta, GA

Article from The Atlanta Constitution, December 28, 1896

Click image to open full size in new tab

Article Text

National of Illinels Forced To Go Into Sudden Liquidation. THE FAILURE WAS A SURPRISE Entire Amount Involved Is About $17,000,000, but No One Will Lose Anything. Chicago, December 21.-At 10 o'clock this morning a large crowd gathered around the doors of the National Bank of Illinois, and creditors discussed the probability of realizing from their deposits. On the large door leading to the counting rooms the following notice was posted: "This bank is in the hands of the national bank examiners, by order of the comptroller of the currency." Posted over the doors and walls in the corridors were notices from various depositors of the bank stating that checks given on the bank Saturday would be paid by the signers. Shortly after 10 o'clock the announcement was made of the failure of E. S. Dreyer & Co., an old established banking institution. southwest corner of Washington and Dearborn streets. Wasmandorf & Heinmann, bankers, at 145 and 147 Randolph street, were carried down by the financial crash today and closed their doors. Judge Freeman appointed the Security Title and Trust Company receiver for E. S. Dreyer & Co., and Wasmansdorff & Heinmann. The receiver for Dreyer & Co., was appointed on a bill filed by E. S. Dreyer in the superior court this morning asking for a dissolution of the partnership and a distribution of the assets. Robert Berger was made defendant. The court was told that the assets were $1,500,000 and the liabilities $1,250,000. Assets Will Pay Liabilities. By a conservative handling of the estate. the complainant says, the assets can be made to realize $150,000 more than the llabilities. The receiver for the firm of Wasmansdorff & Heinemann, was appointed at the request of Otto Wasmensdorff, senior member of the firm He appeared in the superior court and named his partner, William Heinemann, as defendant. The assets are given at $550,000 with liabilities of $415,000. The complaint says that a receiver can administer the assets so as to reduce a surpius of about $100,000. The failure is also announced of the Roseland Savings bank. situated at No. 106 Michigan avenue. Frederick Weilrzma is at the head of the bank. The bank did business with the National Bank of Illinois. Statement from Comptroller Eckels. Washington, December 21.-Comptroller Eckels today, in a statement regarding the failure of the National Bank of Illinois, of Chicago, says: "The failure of the bank is due to injudictous, reckless and imprudent methods followed by the officers, and not checked by the directors, though their attention had been individually called to the same and over their idividual signatures they had promised to remedy the weak points in the bank's condition. "The largest source of failure is the bank's holdings of the Calumet Electric Street Railway stock, the full amount of which cannot now be stated, for It is discovered that a part of such holdings was not made to appear on the books. but was concealed in another account. This and other large and doubtful loans had been called by special letter to the attention of the officers and directors and specific improvement promised a year since. "In view of everything, 1 am convinced that the clearing house committee acted judiciously. The management on the part of the officers and directors has been, to state it mildly, grossly negligent. The liabilities of the bank are large, but by careful and judicious management the loss entalled upon creditors need not be large, if any. Every measure will be made by the clearing house and the comptroller's office to prevent other bank or business failures and unnecessary monetary stringency "A large amount of difficulty can be prevented if those depending upon the banks of Chicago and elsewhere affected by this bank's failure use good judgment and do not work themselves into a state of panic. Other banks can be made to fail only through those having funds with them becoming frightened and making unnecessary demands. On the other hand, the banks ought to be careful and prudent in not unnecessarily calling the loans of their business customers." The clearing house proposition alluded to is that the clearing house will immediately advance 75 per cent of the face of approved claims and thus give creditors of the bank immediate relief and prevent unnecessary disturbance of business. No Panic Is Feared. Chicago, December Without any apparent cause, except for the fact that a general lack of confidence had pervaded the timid depositors in the savings department, a heavy run on the Illinois Trust and SavIngs Bank, in the Rookery building, began as soon as the doors were open for business this morning. There is not the slightest connection between the failed National Bank of Illinois and the Illinois Trust Company. During the excitement yesterday there was only a small increase of withdrawals from the Illinois Trust and Savings bank, and the officers of the bank said they were willing to let the depositors in the savings department have all the money due them if they called for it, as it meant a big saving of interest money for the bank. The bank anticipated a run today, and there is such a heavy reserve fund of idle money in the vaults that President John J. Mitchell had no misgivings as to the ability of his bank to pay a few millions

20. December 30, 1896 The Abbeville Press and Banner Abbeville, SC

Article from The Abbeville Press and Banner, December 30, 1896

Click image to open full size in new tab

Article Text

ONE OF HE LARGEST WEST FAILS. Several Other Banks and Other Prominent Business Houses in Chicago and Other Cities Goes Down in the Crash. CHICAGO, Dec. 21.-At 10 o'clock this morning a large crowd gathered around the doors of the National Bank of Illinois and creditors discussed the probability of realizing from their deposits. On the large door leading to the counting room the following notice was posted: "This bank is in the hands of the national bank examiners. By order of the comptroller of the currency Posted over the doors and walls in the corridors were notices from various depositors of the bank stating that checks given on the bank Saturday would be paid by the signers. Shortly after 10 o'clock the announcement was made of the failure of E. S. Dreyer & Co., an old established banking institution. Wasmandorff & Heinemann, bankers at 145 147 Randolph street, were carried down by the financial crash today and closed their doors. Judge Freeman appointed the Security Title and Trust company receiver for E. S. Dreyer & Co. and Wasmansdorff & Heinemann. The receiver for Dreyer & Co. was appointed on a bill filed by E. S. Dreyer *in the superior court this morning asking for a dissolution of the partnership and a distribution of the assets. Robert Berger was made defendant. The court was told that the assets were $1,500,000 and the liabillties $1,250,000. The bill says that the partnership agreed to close up the business but have been unable to agree as to the manner in which it is to be done. The bill also says that the assets consist of real estate, mortgages, stocks, notes and accounts re. ceivable, while the liabilities are open accounts and certificates of deposits. There has been great depression in the value of real estate recently, the bill says, and unless the assests are handied in a conser vative manner great loss will result. Therefore a receiver is asked for to close out the business. By a conservative handling of the estate, the complaint says, the assets can be made to realize $150,000 more than the liabilities. None of the officers of E. S. Dreyer & Co were at the bank today and creditors of the institution could get no information as to the failure. The firm of E. S. Dreyer & Co. is one of the oldest banks in Chicago and had always been considered one of the firmest. The receiver of the firm of Wasmansdorff & Heinemann wasappointed at the request of T. Wasmansdorff, senior member of the firm. He appeared in the supericr court and named his partner, Wm. Heinemann, as defendant. The assets are given at $550,000,- with liabilities of $415,000. The complaint says that a receiver can administer the assets SO as to produce a surplus of about $100,000. The failure is also announced of the Roseland Savings bank, situated at No. 106 Michigan avenue. Frederick Wierlzma is at the head of the bank. The bank did business with the National Bank of Illinois. A run on the Garden City Banking and company's bank, in the of commerce building by the fact becoming among the depositors that the institution cleared through the failed National Bank of Illinois. The line of fearThe ful depositors was not long. doors were closed at 3 o'clock and only those depositors who were inside were paid. The crowd outside was large enough to require the services of several policemen to keep them moving. At the Trust and Savings and American Trust and Savings banks there were small lines of men and women, who were anxious to get their money in hand, and the bank officers were glad to pay them, as they would interest money due January 1. Both these banks are regarded as financially impregnable. The fact that E. S. Dreyer & Co., and Wasmansdorf & Heinemann, the banking firms now in the hands of receivers, were connected in a family way with the officers of the National Bank of Illinois had considerable to do with the failure. Reassuring action was taken at a largely attended meeting of the clearing house association, which was held after banking hours this afternoon. The following resolution, offered by ex-Comptroller of the Currency E. S. Lacey, president of the Bankers' National bank, was unanimously opted: That the clearing house committee, after calling to their aid such other persons as they may desire, be requested to formulate a plan which will enable creditors of the National bank of Illinois to avail themselves of the offer of the associated banks to make advances by way of loans to said creditors to the extent of 75 per cent. upon properly proven claims. The chairman of the clearing house committee, stated that the readiness of

21. January 6, 1897 The Somerset Herald Somerset, PA

Article from The Somerset Herald, January 6, 1897

Click image to open full size in new tab

Article Text

Many Banks Closed. The National Bank of Illinois, of Chicago, failed to open its doors Monday of last week, a result of the action of the Clearing House Association in suspending the bank from membership. The Comptroller of the Currency appointed a temporary receiver for the institution. The liabilities amount, it is said, to $11,000,000. The failure was followed by that of the Chicago banking firms of E. S. Dreyer & Co., whose liabilities are $1,500,000, and Wasmansdorf & Heineman, liabilities $416,000, and of the Roseland Savings Bank, of Roseland, Ill. It is said that the failure of the National Bank of Illinois is due to injudicious, reckless and improdent methods followed by the officers. The Clearing House Association took steps for the immediate relief of the bank's creditors, agreeing to advance loans to the extent of 75 per cent, upon properly proven claims. The Philadelphia Record says the failure of the Illinois National bank seems to have been a case of too much son-inlaw. The president of the bank, it appears, had one son-in-law in the banking and another in the brewing business and he loaned each of them $500,000 out of the banking funds. The bank of Minnesota, at St. Paul, suspended payment on Tuesday. There was an immense run on the Illinois Trust and Savings Bank, Chicago, one of the strongest institutions in the city, but it met all legal demands. Angus & Gindele, one of the largest contracting firms of Chicago have assigned. Assets, $300,000; liabilities, $250,000. It is claimed they owed the National bank of Illinois, $200,000. Warrants have been issued for the arrest of E.S. Dreyer and Robert Dreyer, of the failed banking firm of E.S. Dreyer & Co., of Chicago, charged with violation of the state banking law by receiving deposits after the bank was insolvent.