4724. Wasmansdorff & Heinemann (Chicago, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
December 21, 1896
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
d774e9e0

Response Measures

None

Description

Wasmansdorff & Heinemann (a private/mortgage banking firm in Chicago) closed after the suspension of the National Bank of Illinois. Security Title & Trust Co. was appointed receiver. No article describes a depositor run specifically on Wasmansdorff & Heinemann; the closure followed the correspondent/clearing-house suspension of the National Bank of Illinois. Otto Wasmansdorff later committed suicide (reported Dec 27/1896). Dates: suspension/public closing reported Dec 21, 1896; receivership reported Dec 22, 1896.

Events (2)
1. December 21, 1896 Suspension
Cause
Local Banks
Cause Details
Forced to suspend because they cleared through the National Bank of Illinois; collapse/suspension of that national bank locked up assets and compelled these private banks to close to conserve assets.
Newspaper Excerpt
Of the 16 banks that cleared through the National Bank of Illinois, two closed their doors as a result of the suspension of that institution. They are Dreyer & Co. and Wasmansdorff & Heinemann.
Source
newspapers
2. December 22, 1896 Receivership
Newspaper Excerpt
Judge Freeman has appointed the Security Title & Trust company receiver for E. S. Dreyer & Co., and Wasmansdorff & Heinemann.
Source
newspapers

Newspaper Articles (20)
1. December 21, 1896 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, December 21, 1896

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BIC BANK FAILS. National Bank of Illinois at Chicago Closes. Liabilities Placed at $11,000,000, Assets $15,000,000. Dabbling In Electric Street Railway Stock CAUSED THE DISASTER Comptroller Eckels Severely Criticizes Bank Management. Warned the Directors Many Months Ago, He Says Chicago, Dec. 21 The National Bank of Illinois, one of the oldest and best known banking institutions in the city, and with assets of between $12,000,000 and $15,000,000. closed its doors today The liabilities are $11,000,000. The following notice was posted on the doors before the opening of banking hours "This bank is in the hands of the national bank exchange, by order of the comptroller of the currency This action was decided upon at a meeting of the directors of the bank last night after the bank had been suspended from the clearing house association of Chicago at a meeting of the clearing house committee held earlier in the day Of the 16 banks that cleared through the National Bank of Illinois, two closed their doors as a result of the closing of that institution. They are E S. Dry& er & Co., and Wasmansdordoff Heinemann These two institutions are mortgage loan banks and saving societies in a small way, and their failure is not expected to effect any business houses. The assets of E S. Dryer & Co. are given at $1,600,000, with liabilities of $1.200.000. The figures for Wasmansdorft & Heinemann are approximately, assets $650,000 liabilities $400,000. The Security Title and Trust compafor both was appoint ny firms. Six banks have made ments to clear thr ough other banks and the balance of the are making similar arrangements as fast as possib The failure was a great surprise in financial circle: and business The causes of the suspension, as given in the resolutions adopted by the clearing house committee are 'unwarrantable and injudicious loans' through which the capital and surplus of said bank is seriously imperilled, if not absolutely lost The was made today that a loan of about $2,400,000 to the Calumet Street Railroad company of which J W Farson of Farson, Leach Co..is president had caused the National Bank of to suspend. Illinois Mr Farson declined to make a statement on that subject but stated that the failure would not affect the Calumet road. Heavy loans on real estate are also said to have been made The last statement of the bank showed deposits $12,175,766 loans, $9,199,642; cash $4,983,902 It is thought probable that none of the depositor will suffer by the suspension, as the bankers who were presthe of at the committee have for consideration the proposition to advance per cent on all adjusted claims against the National Bank of Illinois In addition to this they have agreed to use their influence with all other members of the clearing house association to accept all such claims as collateral at the same ratio The National Bank of Illinois was organized in August, 1871. with a capital stock of $300,000 which was subsequentlv increased to $1,000,000 It was regardone of the soundest financial inthe of stitutions The Press club is one of the sufferers by the suspension, all the proceeds of the advance sale of tickets for the football game between the Carlisle Indians and University of Wisconsin eleven. which was held under the management the Press club, amounting to over 000, having been deposited Saturday, One of the leading bankers and finaneiers of this city at noon today said to an Associated press reporter The failure of the National Bank of Illinois has created no disturbance of consequence financial circles here One private bankers who really nothing but dealers have failed, but this is only a natural consequence of shrinking real estate valThe principal source of trouble of the National Bank of Illinois was a loan of $2,400,000 to the Calumet Electric Railway company This with three or four loans, threatened severe losses and the clearing house committee saw way but to suspend the bank. The loss in liquidation be small if any to depositors It is not probable that the bank will resume business NEW YORK CORRESPONDENTS New York Dec. 21.-Officials of the Mercantile and the American Exchange National banks of this respond ents the National Bank Illinois say they will not be affected any important extent by its failure The American Exchange has merely handled collections for the Chicago bank and is actually a debtor to it The Mercantile National bank people say that the Chicago bank does not them except for notes in their hands for coland deep sympathy for the officials of the Chicago bank AT WASHINGTON Washington, Dec Comptroller Eckels has received an the National Bank of Illinois. It says that the Chicago clearing house has to pay of all proved claims John C. McK ean been appointed a receiver for bank and to publish a list of all at so that may get the benefit of this issued banks ing the bank as their prove their claims in. them send the report of the bank which 30. the bank had a cap of $1,000,000 surplus of $1,000,000 undivided of $450.000 and a total of bonds 5.046.952, its liabilities will be about $10,100,000. While it is feared that serious results may follow Comptroller Eckels will do all in his power to relieve the

2. December 21, 1896 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, December 21, 1896

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A FINANCIAL CRASH. The National Bank of Illinois Closes Its Doors. IN SENSATION CHICAGO. Institution With Assets of Nearly $15,000,000. Other Houses Follow SuitCuba up Again. Chicago, Dec. 21.--The National Bank of Illinois, one of the oldest and best known banking institutions in the city,with assets between $12,000,000 and $15,000,000, closed its doors today. The action was decided on at a meeting of the directors last night after the bank suspended. Of 16 banks that cleared through the National Bank of Iliinois, two closed their doors as a result of the suspension of that institution. They are Dreyer & Co. and Wasmansdorff & Heinemann. These two institutions are mortgage and loan banks and savings societies. Their failure is not expected to affect any business houses. The assets of Dreyer & Co. are $1,600,000 the liabilities $1,200,000. Wasmansdorf's assets are $650,000; liabilities $400,000. The Security Title & Trust company was appointed receiver for both. It was stated a loan of $2,400,000 was made to the Calumet Street Railroad company. Heavy loans on real estate were also made. It is thought probable the depositors will not suffer. The suspension had little effect either in the wheat pit or on the stock exchange. Comptroller Eckels Talks. Washington, Dec. 21. - Comp. troller Eckels has been advised that the Chicago clearing house has assumed to pay 75 per cent of all proved claims of the National Bank of Illinois, of Chicago. John C. McKeen was appointed receiver. At the last report-Nov. 10-the bank had a capital of $1,000,000, a surplus of $1,000,000, undivided profits of $150,000, the total assets. including bonds, being $15,046,992. The liabilities are about $11.000.000. While it is feared serious results may follow, the comptroller will do all iu his power to relieve the strain on the dependent banks and avert unnecessary panic. Comptroller Eckels has given out a statement concerning the failure of the National Bank of Illinois in the course of which he says: "The failure is due to the injurious, reckless and imprudent methods followed by the officers not checked by the direc. tors, though their attention has been individually called to the same, and over their individual signatures they had promised to remedy the weak points in the bank's condition. The largest source of failure of the bank's holdings was the Calumet Electric street railway stock, the full amount of which cannot now be stated, for it is discovered that part of such holdings were not made appear on the books. but concealed in another ac. count."

3. December 21, 1896 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, December 21, 1896

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TO-DAY'S TELEGRAPHIC NEWS Failure of a Well Known Bank. CHICAGO, Dec. 21.-The National Bank of Illinois, one of the oldest and best known banking institutions in the city, with assets amounting to nearly $15,000,000, did not open its doors this morning. This action was decided upon by the directors last night, after the bank had been suspended from the clearing house association. The causes of the suspension, as given by the clearing house committee, are "unwarrantable and injudicious loans," through which "the capital and surplus of said bank is seriously imperiled, if not absolutely lost." At the last statement of the bank its capital was shown to be $1,000,000, with a surplus of $1,000,000 and undivided assets of over $300,000. It is thought probable that none of the depositors will suffer great loss by the suspension. CHICAGO, Dec. 21.-The banking firm of Wasmansdorff & Heinemann is announced to be in the hands of the Security Title & Trust Co. Judge Freeman has appointed the Security Title & Trust Company receiver for E. S. Dreyer & Company and Wasmansdorff and Heinemann.

4. December 22, 1896 Birmingham State Herald Birmingham, AL
Article from Birmingham State Herald, December 22, 1896

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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.

5. December 22, 1896 The Wilmington Daily Republican Wilmington, DE
Article from The Wilmington Daily Republican, December 22, 1896

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CHICAGO'S BANK FAILURES. Closing of the Illinois National Drags Down Three Other Concerns. CHICAGO, Dec. 22. - The suspension of the National Bank of Illinois has resulted in the failure of E. S. Dreyer & Co., one of the oldest establishments in the city, and also of the banking firm of Wasmansdorff & Heinemann. The suspension is also announced of Frederick Wiersema, who owns the Roseland bank at Roseland. The latter bank will resume in a few days. Comptroller Eckels has appointed Bank Examiner McKean temporary receiver of the National Bank of Illinois. The failure of the National Bank of Illinois, which was one of the strongest 11nancial institutions in the west, was due to the fact that its entire capital of $2,000,000 and $100,000 over and above its surplus of $300,000 had been loaned on Calumet Electric railroad stock, $500,000 was loaned to Dreyer & Co., who had spread their capital out SO extensively that they were unable to concentrate it in time to save themselves. The other failures were due to the locking up of assets hold by the national bank, and were not available when that institution closed its doors. No further trouble is expected, as the Clearing House association has agreed to pay 75 per cent. of the deposits in the National Bank of Illinois. It is probable that all of the banks will resume with the exception of the National Bank of Illinois, and all depositors will be paid in full.

6. December 22, 1896 The Bryan Daily Eagle Bryan, TX
Article from The Bryan Daily Eagle, December 22, 1896

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A BIG BANK FAILURE. The National Bank of Illinois Closes Its Doors. PULLED DOWN TWO OTHER BANKS Between Twelve and Fifteen Million Dollars Are Involved In the Failure It Is Said Loaning Too Much Money to a Street Hallway Company Brought on the Failure CHICAGO, Dec. 21.-The National Bank of Illinois, one of the oldest and best known banking institutions in the city and with assets between $12,000,000 and $15,000,000, closed its doors today. The following notice was posted on the doors before opening banking hours: "This bank is in the hands of a national bank examiner by order of the comptroller of the treasury." This action was decided upon at a meeting of the directors of the bank last night, after the bank had been suspended from the clearinghouse association of Chicago at a meeting of the clearinghouse committee held earlier in the day. Of the 16 banks that cleared through the National Bank of Illinois, two have closed their doors as a result of the closing of that institution, They are Dryer &Co., and Wasmansdorff & Heinemann. These two institutions were mortgage loan banks and savings associations in small way, and their failures are not expected to effect any business houses. The assets of E. S. Dryer & Co., is given at $1,600,000, with liabilities of $1,200.000. Figures for Wasmansdorff & Heinemann are approximately, assets, $650,000: liabilities, $400,000. The Securi Title and Trust company was appointed receiver for both firms. Six banks made arrangements to clear through other banks and the balance of the 16 are making similar arrangements as fast as possible. The failure was a great surprise in financial and business circles. The causes of the suspension as given in the resolutions adopted by the clearing. house committee are "unwarranted and injudicious loans," through which the Id"capital and surus of said bank is seriously imperilled, if not absolutely lost." The statement was made that a loan of about $9,400,000 to the Calumet Street Railroad company of which W. Farson of Farson. Leach & Co., is presi dent, had caused the National Bank of Illinois to suspend. Mr. Farson declined to make any statement on that subject, but said the failure would not affect the Calumet road. Heavy loans on realestate are also said to have been made The last statement of the bank showed deposits of $12,175,766 loans. $9,199. and cash resources, $4,983,902. It is that none will suffer by 642, positors thought probable the suspensions, of the deas who were of the recommeeting the bankers committee present have at the mended for consideration the proposition to advance 75 per cent on all adjusted claims against the National Bank of Illinois. In addition to this they have agreed to use their influence with all other members of the Clearing Housa association to accept all such claims as collateral at the same ratio. The National Bank of Illinois was organized in August. 1871, with a cap. ital stock of $300,000, which was subse. quently increased to $1,000,000. The Press club was one of the sufferers by the suspension, all the proceeds of the advance sale of tickets for the football game between the Carlisle Indians and the University of Wisconsin eleven, which was held under the management of the Press club, amounting to over it $3000. having been deposited Saturday. It is announced that the Drovers' Na. tional bank, which cleared through the National Bank of Illinois, will clear through the Commercial National. The West Side bank will also clear through the Commercial National. The suspension had but little effect d e'ther in the wheatpit or Stock Ex. n change. Wheat showed strength after the opening at five-eighths decline, and the stockmarket was dull and only fractionally lower. Neither bank examiner nor any of r g floor of the National Bank of Illinois will make any statement at present. g Train Wreek

7. December 22, 1896 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, December 22, 1896

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ILLINOIS NATIONAL'S DOORS CLOSED AS A RESULT OF LOOSE MANAGEMENT. RELIEF FOR DEPOSITORS. CLEARING HOUSE WILL ADVANCE SEVENTY-FIVE PER CENT ON CLAIMS TEMPORARY RECEIVER APPOINTED Creditors Will Receive a Large Dividend Within Thirty DaysNo Panic Precipitated CHICAGO, Dec. 21.-The National Bank of Illinois closed its doors today. This action was decided upon at a meeting of the directors of the bank last night, after the bank had been suspended from the clearing house of Chicago, at,a meeting of the clearing house committee held earlier in the day. The causes of the suspension, as given in the resolutions adopted by the clearing house committee, are "unwarrantable and injudicious loans through which the capital and surplus of said bank is seriously imperiled if not absolutely lost." The statement was made that a loan of about $2,400,000 to the Calumet Street Railroad company, of which J. W. Farson, of Farson, Leach & Co., is president, had caused the National Bank of Illinois to suspend. Mr. Farson declined to make a statement on that subject, but stated that the failure would not affect the Calumet road. Heavy loans on real estate are also said to have been made. The last statement of the bank showed deposits $12,175,766; loans $9,199,642; cash resources, $4,983,202. A director of the bank stated that the loan made to the Calumet electric street railway, $2,400,000, was without the knowledge of the directors. The efforts made to dispose of the Calumet stock held as security for the loan drew attention to it and brought about the investigation which resulted in the bank's suspension. Of the sixteen banks which cleared through the National Bank of Illinois, two closed their doors as a result of the closing of that institution. They are E. S. Dreyer & Co. and Wasmansdorff & Heinemann. These two institutions are mortgage loan banks and savings societies in a small way, and their failure is not expected to affect business. The assets of E. S. Dreyer & Co. are given at $1,600,000, with liabilities of $1,200,000. The figures for Wasmansdorff & Heinemann are approximately. Assets, $650,000; liabilities, $400,000. The Security Title and Trust company was appointed receiver for both firms. Six banks have made arrangements to clear through other banks, and the balance of the sixteen are making similiar arrangements as fast as possible. Neither the bank examiner nor any officer of the National Bank of Illinois will make any statement at present. The principal source of trouble of the National Bank of Illinois was a loan of $2,400,000 to the Calumet Electric Railway company. This, with three or four over-loans, threatened such severe losses that the clearing house committee saw no way but to suspend the bank. The loss in liquidations will be small, if any, to depositors. It is not probable that the bank will resume business. At a meeting of the clearing house banks held after the close of business this afternoon, all the banks were represented, and upon recommendation of the clearing house committee which had made a thorough examination of

8. December 22, 1896 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, December 22, 1896

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Chicago, Dec. 21.-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 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. OTHERS GO DOWN. 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 dealersliabilities, $1,300,000; estimated value of assets, $1,650,000. Wasmansdorff & Heinenmann, bankers and mortgage brokers-liabilities, $416,000; estimated value of assets, $550,000. Roseland Savings bank, Roselin, III.Small capital and assets estimated to equal 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. REASSURING ACTION. 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 exComptroller of the Currency E. S. Lacey, president of the Bankers' National bank, was unanimously adopted: "That the clearing house committee, after calling to their aid such other persons as they mav desire, be requested to formulate a plan which will enable the 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 amount of 75 per cent upon properly proven claims." The chairman of the clearing house committee stated that the readiness of bankers to do this was SO evident that it was not probable any formal organization to accomplish the object set forth in the resolution would be necessary, although the committee appointed will give prompt attention to the duty imposed on them. EXAMINER NAMED. William F. Drummer, president of the association and vice president of the Northwestern National bank, read the following telegram, which he had received from Comstroller of the Currency Eckels, dated Washington: "I have appointed Bank Examiner McKeon temporary receiver of the National Bank of Illinois, and instructed him to publish notice to creditors to prove claims. He imforms me that the clearing house committee will advance 75 per cent on evidence of claims. Notice will be published at once, and if claims are proven immediately, I shall, within 30 days, be able to pay a very considerable dividend. I appreciate the action of the clearing house in offering to advance on such certificates." The decisions 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. NECESSARY SEQUEL. The necesary sequel to this refusal to lend aid or to continue clearing privileges was that the big national bank on Dearborn street failed to open its doors this morning for public business. This was anticipated by the action of the clearing house committee, but there was a small knot of anxious depositors waiting on the marble steps of the entrance when the big iron screen in front of the doors was rolled up at 9 o'clock to admit several clerks. At 9:30 o'clock, a card was hung on the grill work, reading as follows: "This bank is in the hands of a national bank examiner. By order of the comptroller of the currency.' This cheerless announcement for depositors was quickly followed by the posting of notices that certain private banks and business firms would clear through other banks, or pay checks which had been given Saturday on the suspended institution. The following private and other banks made their clearance through the Illinois National: E. S. Dreyer & Co.; Farson, Leach & Co.: Garden City Banking and Trust company; Greenbaum Sons; E. R. Haas & Co.; International bank; Leopold Mayer & Co.; Oakland bank: Oak Park State bank; Roseland Savings bank; W. G. Stoughton & Co.: Wasmansdorff & Heinemann; West Side bank; Siegel, Cooper & Co.'s bank: Adams Epress company's bank: cashier checks on Drovers' bank

9. December 23, 1896 The Mena Weekly Star Mena, AR
Article from The Mena Weekly Star, December 23, 1896

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BIG BANK CLOSED. At Chicago the National of Illinois Suspends Owing Many Millions. CHICAGO, Dec. 22.-The National Bank of Illinois, one of the oldest and best known institutions in the city, and with assets of between $12,000,000 and $15,000,000, closed its doors to-day. This actión was decided upon at a meeting of the directors of the bank last night after the bank had been suspended from the clearing house association of Chicago. Of the 16 banks that cleared through the National Bank of Illinois, two closed their doors as a result of the closing of that institution. These were those of E. S. Dryer & Co. and Wasmansdorff & Heinemann. These two institutions were mortgaged loan banks and saving societies and their failures are not expected to affect any business houses. Injudicious management and slow collections from real estate loans is given as the reason for the failure. The National Bank of Illinois was organized in 1871 with a capital stock of $300,000, which was subsequently increased to $1,000,000. It had been regarded as one of the soundest financial institutions in the city. The last statement of the bank showed: Deposits, $12,175,766; loans, $9,199,642: cash resources, $4,983,290; total resources, $14,500,000. It is thought probable that none of the depositors will lose by the suspension, as the bankers who were present at the meeting of the committee recommended for considerution the proposition to advance 75 per cent of all adjusted claims against the National Bank of Illinois.

10. December 24, 1896 Wood County Reporter Wisconsin Rapids, WI
Article from Wood County Reporter, December 24, 1896

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FOUR BANKS FAIL. ALL OF THEM ARE IN OR NEAR CHICAGO. National Goes Down First and Carries Other Three With It-Injudicious Loans the Cause. Chicago, Dec. 22.-The National bank of Illinois, one of the oldest and best known banking institutions in the city, and with assets of between $12,000,000 and $15,000,000, closed its doors Monday. As a direct result three other banks have also failed. The directors of the National bank met after the bank had been suspended from the Clearing House association of Chicago. Of the sixteen banks that cleared through the National Bank of Illinois, three closed their doors as a result of the closing of that institution. They are E. S. Dryer & Co., Wasmansdorff & Heinemann and Roseland bank owned by Frederick Weissman. The institutions are mortgage loan banks and savings societies in a small way and their failure is not expected to affect any business houses. The assets of E. S. Dryer & Co. are given at $1,600,000, with liabilities of $1,200,000. The figures for Wasmansdorff & Heinemann are approximately, assets $650,000; liabilities $400,000. The assets of the Roseland are $75,000; liabilities $50,000. The causes of the suspension of the National bank as given in the resolutions adopted by the clearing house committee, are "unwarrantable and injudicious loans" through which "the capital and surplus of said bank is seriously imperiled, if not absolutely lost." The statement was made that a loan of about $2,400,000 to the Calumet Street Railway company, of which J. W. Farson of Farson, Leach & Co. is president, had caused the National bank of Illinois to suspend. Mr. Farson decline to n ake a statement on that subject, but stated that the failure would not affect the Calumet road. Heavy loans on real estate are also said to have been made. The last statement of the bank showed deposits $12,1175,766; loans, $9,199,642; cash resources. $4,983,.202.

11. December 24, 1896 River Falls Journal River Falls, WI
Article from River Falls Journal, December 24, 1896

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ITS DOORS CLOSED. Suspension of the National Bank of IIIInois 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 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; 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 Rail road 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.

12. December 24, 1896 Mineral Point Tribune Mineral Point, WI
Article from Mineral Point Tribune, December 24, 1896

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FOUR BANKS FAIL. ALL OF THEM ARE IN OR NEAR CHICAGO. National Goes Down First and Carries Other Three With It-Injudicious Loans the Cause Chicago, Dec. 22.-The National bank of Illinois, one of the oldest and best known banking institutions in the city; and with assets of between $12,000,000 and $15,000,000, closed its doors Monday. As a direct result three other banks have also failed. The directors of the National bank met after the bank had been suspended from the Clearing House association of Chicago. Of the sixteen banks that cleared through the National Bank of Illinois, three closed their doors as a result of the closing of that institution. They are E. S. Dryer & Co., Wasmansdorff & Heinemann and Roseland bank owned by Frederick Weissman. The institutions are mortgage loan banks and savings societies in a small way and their failure is not expected to affect any business houses. The assets of E. S. Dryer & Co. are given at $1,600,000, with liabilities of $1,200,000. The figures for Wasmansdorff & Heinemann are approximately, assets $650,000; liabilities $400,000 The assets of the Roseland are $75,000: liabilities $50,000. The causes of the suspension of the National bank as given in the resolutions adopted by the clearing house committee, are "unwarrantable and injudicious loans" through which "the capital and surplus of said bank is seriously imperiled, if not absolutely lost." The statement was made that a loan of about $2,400,000 to the Calumet Street Railway company, of which J. W. Farson of Farson, Leach & Co. is presiden had caused the National bank of Illinois to suspend. Mr. Farson decline to n ake a statement on that subject, but stated that the failure would not affect the Calumet road Heavy loans on real estate are also said to have been made. The last statement of the bank showed deposits $12,1175,766; loans, $9,199,642; cash resources. $4,983,.202.

13. December 25, 1896 The Iola Register Iola, KS
Article from The Iola Register, December 25, 1896

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GENERAL NEWS. FOUR men were killed by a boiler explosion at a sawmill at Bayou Darbonne, near Farmersville, La. TOMMY RYAN, of Syracuse, won the fightfrom Billy McCarthy, of Australia, in seven rounds before the Empire Athletic club at New York on the 21st. Ryan weighed 145 and McCarthy 152 pounds. AN explosion occurred in a confectionery manufactory at Casino, Italy, on the 21st which killed seven people. THE banking house of E. S. Dreyer & Co., one of the oldest in Chicago, closed its doors on the 21st. The banking firm of Wasmansdorff & Heinemann, of the same city, also went into the hands of a receiver. S. D. HUDSON died recently at Burlington, Ia., aged 80. He practically organized the whig party in Iowa when it was a territory. SOME "speak-easy" whisky did some awful work in the Benwood oil field in Monroe county, O., on the 19th. So far as can be ascertained 16 men imbibed of it and three have died, another was dying, three more had gone crazv and nine others were dangerously sick. ONE of the powder houses of the Winehester Repeating Arms Co. at New Haven. Conn., was blown to pieces by an explosion. Fortunately no one was injured. EL HARALDO, a Spanish newspaper at Madrid, asserted that the minister of war was preparing numerous pamphlets on the georraphy, topography and military condition of the United States to distribute to the chief officers of the Spanish army. SEVERAL bombs, secretly manufactured by a druggist at Rome, exploded on the night of the 19th shattering two stories of his house and killing five persons and injuring six others. A FIRE at Brooklyn on the 18th damaged the car house of the Nassau Electric railroad and partially burned 15 electric cars. THE Missouri congressmen have received notices from the secretary of agriculture that their allotments of seed for this year are ready for their disposal. FIVE miners were instantly killed in the Virginius shaft at Ouray, Col., on the 18th. They were repairing timbers, when the cage fell,carrying them with it to the 1,400 feet level. FIVE persons were recently drowned in the neighborhood of St. Johns, Que., through going on weak ice. FAILURES for the week ended the 18th (Dun's report) were 367 in the United States, against 377 last year, and 47 in Canada, against 32 last year. GEORGE E. LEMON died at Coronado Beach, Cal. He was publisher of the National Tribune at Washington, a pa. per devoted to the interests of pensioners. THE national convention of the United Mine Workers has been called to meet at Columbus, 0., on January 12. 1897. THE Galveston (Tex.) county courthouse was recently partly destroyed by fire, but it was believed that the records were saved. A WRECK occurred on the B. & O. Southwestern railroad at Hamden, 0., on the 18th and a postal clerk was killed outright and the conductor, fireman and another postal clerk were fatally injured. Some passengers were also reported killed and injured. The train ran into some cattle and several cars were derailed,

14. December 26, 1896 The Kimball Graphic Kimball, SD
Article from The Kimball Graphic, December 26, 1896

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Receivers Appointed. Chicago, Dec. 22.-Judge Freeman has 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.

15. December 26, 1896 The Diamond Drill Crystal Falls, MI
Article from The Diamond Drill, December 26, 1896

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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.

16. December 28, 1896 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, December 28, 1896

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His House Forced to Close Last Week When the National of Illinois Shut Its Doors. ATLAS BANK TO LIQUIDATE ANOTHER CHICAGO NATIONAL CONCERN TO QUIT BUSINESS. Clearing House Agrees to Advance About $600,000 to Pay Depositors in Full at Once. CHICAGO, Dec. 27.-Suffering from depression, caused by financial reverses, Otto Wasmansdorff, a well-known banker of this city, to-day fired a bullet into his brain and died almost instantly. Banker Wasmansdorff killed himself in a front hall bedroom. at his home. on Cleveland avenue, at 11 o'clock this morning. His sons, William G. and Otto, jr., who were in the parlor beneath their father's bedroom, heard the report of the revolver and rushed upstairs. Running into the room the horrified sons beheld their father lying on the bed, dying, a revolver lying at his side. He had shot himself in the right temple, and a tiny stream of blood was flowing down his check. Everything in the room was in perfect order. The deed apparently had been deliberately planned. Mr. Wasmansdorff was a member of the private banking firm of Wasmansdorff & Heinemann, which failed a week ago as a result of the failure of the National Bank of Illinois. The failure of his bank had a crushing effect on Mr. Wasmansdorff, and also seriously affected his wife, who is ill. The banker, for several days was unable to eat or sleep. The criticism of unforunate depositors weighed him down and he was in a constant troubled state of mind. This morning the banker appeared brighter and less troubled in mind than on any other day since the financial crash that ruined him. After breakfast with his family, with whom he chatted pleasantly, he glanced over the morning papers. He then engaged in a frolic with his little granddaughter, after which he retired to his room. Fifteen monutes later the fatal shot was heard by the two sons. The young men were overcome with grief and said they never had the slightest suspicion that their father contemplated such an act. Mrs. Wasmansdorff was prostrated by the shock. At the time of the failure the assets of Mr. Wasmansdorff's bank were given at $550,000 and the liabilities at $415,000. Mr. Wasmansdorff had been a banker in this city for more than a quarter of a century, and during all that time he was a member of the firm which went down in the crash last Monday. He was of a retiring and unobtrusive nature and was known in the business community as a conservative and honest man. He was about fifty-five years old.

17. December 30, 1896 The Manning Times Manning, SC
Article from The Manning Times, December 30, 1896

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A BIG PAILURE. ONE OF THE LARGEST BANKS IN THE 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 dis cussed 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 & Heinemaun, 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 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 assests are handied in a conser rative manner great loss will result. Therefore a receiver is asked for to close out the business. a conservative esthe says, tate, By complaint handling the of 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 Was mansdorff & Heinemann wasappointed at the request of T. Wasmansdorff, senior member of the firm. He appeared in the superior court and named his partner, Wm. Heinemann, as defendant. The assets are given at $550,000, with liabilities of $415,000. a receiver

18. January 1, 1897 The Penn's Grove Record Penns Grove, NJ
Article from The Penn's Grove Record, January 1, 1897

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Suicide of a Banker. Otto Wasmansdorff, senior partner in the banking firm of Wasmansdorff & Heinemann, committed suicide in his home in Chicago, III. The bank was forced to suspend on nccount of the failure of the National Bank of Illinois.

19. January 1, 1897 The Columbia Herald Columbia, TN
Article from The Columbia Herald, January 1, 1897

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GENERAL NEWS. The Columbus & Hocking Coal and Iron Company, of Columbus, O., has been placed in the hands of a receiver. The Security Mortgage & Trust Company, of Dallas, Texas, has made application for a receiver. The liabilities are $2,000,000, and the assets are estimated at $1,000,000. The failure was caused by unprofitable real estate loans and investments. Otta Wasmansdorff, of the banking firm of Wasmansdorff & Heinemann, which failed at Chicago last week as a result of the collapse of the National Bank of Illinois, committed suicide last Saturday morning by shooting himself in the right temple with a revolver. The constant worry and anxiety for the past week, consequent upon the failure, is believed to have been the cause. Six men lost their lives in a mine explosion at Princeton, Ind., last Saturday. The Atlas National Bank, of Chicago, has decided to retire from business, and the associated banks of the city will advance the amount needed to pay its depositors in full; about $900,000 will be required. Bank Examiner McDonald has taken charge of the Merchants' and Plantors' Bank, at Bryan, Texas, which failed to open its doors on Wednesday of last week.

20. January 7, 1897 Mineral Point Tribune Mineral Point, WI
Article from Mineral Point Tribune, January 7, 1897

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winnam of one of the Kansas electors, W. H. Linton, who is alleged to be disqualified because he deserted from the army. The Laconia car works, at Laconia, N. H., was petitioned into an involuntary insolvency. The total liabilities are placed at $617,000 and the assets at $407,000. James R. Francisco, who operated the famous John Bullengine on the Camden and Amboy railroad, in 1836, died at: Fremont, O., aged eighty-one years. It is said that the failure of the Security Mortgage and Trust company of Dallas, Texas, will cause a loss of $1,500,000 to eastern and foreign capitalists. New York-The board of estimates inserted in the budget for 1897 the sum of $70,000 for ceremonies attending the dedication of the Grant monument. Baltimore-The ninth annual meeting of the American Economic association will begin at Johns Hopkins university and will continue until Thursday. Washington-The large furniture house of Julius Lansburg, on New York avenue, was burned; loss on building, stock and adjacent struetures, $200,000. John McCord of Oberlin, Ohio, died in the Grand Central railway station in New York, of heart disease. He was returning home from a visit to relatives at New Haven, Conn. Comptroller Eckels in an interview says the recent bank failures have been due largely to local causes and that the general condition of the national banks is excellent. District Attorney Olcott of New York has written a letter to the aittorney general asking his advice as to whether the deputies in his office are subject to civil service. Mrs. Ella Eager, wife of a locomotive engineer, committed suicide at New Haven, Conn., by throwing herself in front of her husband's locomotive. The couple had quarreled. Total appropriations for the various branches of the New York city government of New York for 1897 foot up close to $50,000,000, a larger sum than ever was granted before. Topeka, Kan.-General Buckner sent a cask of whisky and $50 to Dudley town for a Christmas present. It was the only township in the union carried by Palmer and Buckner. Otto Wasmansdorff, senior partner in the Chicago banking firm of Wasmansdorff & Heinemann, which suspended as a result of the failure of the National bank' of Illinois, committed suicide. It is reported that Charles T. Yerkes, the Chicago street railway magnate, will make his home in New York and will have two of his Chicago stocks listed on the New York exchange. H. C. Henry, the millionaire contractor, has confirmed the report that he had secured the contract to build the approaches to the Great Northern railroad tunnel through the Cascade mountains. Judge Myers, at Oskaloosa, Kan., dismissed the receivership case of the Atohison, Topeka and Santa Fe Railroad company, holding that the alien land law of Kansas is not applicable to railroads. Van Nortwick Bros., bankers at Batavia, III., and holders of large property interests in several states, made an assignment, as a result of the liquidation of the Atlas National Bank of Chicago. Chicago-Mrs. Mary Logan Tucker of Wisconsin and her son have been left a fortune by Captain Lemon of Washington. They are the wife and son of Major Tucker, who is now stationed at St. Paul. San Francisco-Information has been received announcing the death at San Salvador of Dr. Albert Sanchez, director of the meteorological and astronomical observatory of the state of San Salvador. A letter received at the state department in Washington from a high authority in the Turkish government indicates that Emperor William of Germany and the sultan have formed an alliance. After W. J. Bryan's Atlanta lecture Mr. McBee, his financial backer, offored to fulfil the contract and pay the lecturer $10,000 to bind the contract. Mr. Bryan refused It, and Mr. McBee did not press it. Governor Morton has appointed Col. Ashley W. Cole, his private sec-