The San Francisco Call. Newspaper, December 23, 1896, Page 3

THE SAN FRACNISCO CALL, WEDNESDAY, DECEMBER 23, 1896. BANKERS PREVENT A PUBLIC PANIC Prompt and Conservative Action to Avoid a Serious Scare. But Small Depositors Cause a Run on Some of Chicago’s Institutions. Unexpected Faiure of the Bank of Minnesota, but Creditors Will Bs Paid in Full CHICAGO, IrL., Dec. 22.—A steady run of savings depositors on the Hibernian Banking Association and the Illinois Trust and Savings Bank and the failure of the Angus & Gindele Contracting Com- pany, which is credited with getting a loan of $250,000 from the failea National Bank of Illinois, comprised the develop- ments of to-day in connection with the fi ial flurry. associated banks Toe prompt, thorough and conservative action to avoid a serious scare on the part of the public, which has miliions of dollars in have taken savings accounts deposited with city banks. The Illinois Trust leads all the local banks in its savings deposits, having | nearly $12,000,000, The Hiberaian Bank has less than $3,400,000 of such accounts. The solid showing made by the banks | which did not lean on the collapsed Na- tional bank had a reassuring effect on the public to-day when the morning papers were peruséd, and the general feeling in | the banking community was that the worst was over so far as those institutions | were concerned. At a conference of the savings banks of the city, which was held when the runs | began at the Hibernian and Illinois Trust i banks, it was unanimously agreed to| adopt an unusual mears toward checking what might become an epidemic of appre- hension. Instead of attempting to allay the scare by paying all demands in full on the spot, which has proven to be an un- wise policy in the past, the banks decided | to stand upon their statutory rights and demand notice of sixty days in case of all withdrawals exceeding $100. John Angus, president of the Angus & Gindele Contracting Company, appeared in the Superior Court this afternoon with a biil petitioning for the appointment of a receiver. He made George A. Gindele, secretary and treasurer of the company, defendant for the purpose of obtaining a receivership, and substantially the same allezations were made as in the Dreyer- ‘Wasmansdorff case yesterday. The finan- cial eondition of the company was said to be such that a receiver was needed at once to conserve the assets and protect all in- terests. The answer filed by Gindele ad- mitted the substance of the petition and Judge Horton did not hesitate to appoint m Hill receiver. According to the statement maae by the attorneys for the company the assetsare estimated to be worth $300,000, and lia- bilities are placed at $250,000. These figures are believed to be largely guess- work, however, ana exaggerated in case of the assets. It is said the firm owes the National Bank of Illinois alone $250,000 for money borrowed, and the security is said to be of a ciass which will be slow to realize on. The present partnership was formed in 1888. The company had a large contract on the drainage canal, and was the principal owner of the Security build- ing at Madison street and Fith avenue, which was built by the firm. Mr. Angus 18 president of the Security Deposit Com- pany, which owns the building, and Mr. Gindele is the treasurer. The capital stock of the building company is $500,000. There is a mortgage for $180,000 on it, and it is bonded for $150,000, secured by second mortgage. This building is believed to be the best-asset of the contracting company, It has been in financial trouble for a long time. Part of the Lake-street Elevated Railroad was built by the firm. The only reason which can be thought of by the officers of the Illinois Trust and Savings Bank for the ran on that bamk, apart from tihe general one of coniagious timidity, is that ignor- ant people, hearing or reading of the failure of the National Bank of Illinois, got it confounded with the only other bank of the city which has the word Illinois in its title. In fact, many mongy-seeking depositors who hur- ried from their homes admitted, when they reached the waiting line, that they had heard the bank had failed, while money was being paid out and received under their eyes. Meddlesome busy- bodies and fool friends, who had wrought on the fears of depositors and had even accompanied them to the bank, were or- dered by police officers and bank detec- tives to await their friends outside. Tue ; line of men and women who wanted their money numbered 200 during most of the ve hours the bank was open, and the | curious crowd of spectators added to the tement. Where deposits exceeded L that amount only was paid and the sixty days’ notice enforced as to the re- mainder, While President John J. Mitchell said the \bank had money enough to pay all depositors in fall he declared the sixty- day rule decision would not be misinter- preted by those who knew the reputation and standing of his bank. He believed that the run would spend itself early to- morrow, and the fac: that there was a small line at the ciose of banking hours bore out his statement. The last statement of the bank to the Auditor of Public Accounts showed re- sources of $30,900,856, capital surplus $4,000,000, time deposits $14,784,841, de- mand deposits $11,715,974. The ran on the Hibernian Bank begana little later, there being no waiting line until 11 o’clock. Small depositors who could not afford to take chances com- posed the bulk of the crowd, which ex- tended from the paying-teller's window out on the second fioor of the Ashland block. Ropes and policemen were needed to preserve the line intact and out of the way of other customers of the bank. The sixty-day rule was enforced from the start. ex | which 1s supposed to protect the public | the State money on deposit. It was also known there is not expected to be much of a run to-morrow. In compliance with orders received to- day from Comptrolier Eckels, Bank Ex- aminer McKeon, receiver of the National Bank of Illinois, began to-day to make ar- rangements with City Treasurer Wolf and other custodians of public funds in the bank to issue to them certificates for such amounts of their deposits as clearly ap- peared to be due to them, €0 as to enable them to take advantage of the clenring- house offer to advance 75 per cent. This applies only to public funds. The report was current that loans of $500,000 each to Robert Berger and George A. Weiss, both sons-in-law of President Schneider of the failed National bank, were unsecured. It was said that the Weiss logn is secured by the American Brewing Company bonds, Mr. Weiss be- ing president of the comparny, but none of the bank directors could be found who had seen such bonds. The Dreyer loan is said to be secured by real estate which the Clearing-house Gommittee threw out as worthless. Tiis claimed that most of the directors did not know of the §$300,000 ad- ditional loan on Calument Electric securi- ties. LElE A WRECKED BY THE “KITER.” Second Vice-Presid-nt Hammond and His Wild- Eyed Speculations. CHICAGO, IrL., Dec. 23.—The Chicago Tribune this morning says: When the mist which has overhung the affairs of the collapsed National Bank of illinois began to clear up vesterday, it became evident that the institution had been wrecked by W.A. Hammond, its second vice-president. Mr. Hammond, so the light of investiga- tion shows, has played the role of a “‘kiter’” and speculator with other p-ople’s money. He is a man who has deceived his own directors and depositors—a man who has violated willfuily and deliberately the law from the operations of such as he. Bank Examiner McKeon who is acting temporary receiverof the Bank of llinois, told a friend yesterday that the failureis the largest in the history of the United States under the National banking law, and probably the largest in the history of the country. In the way of cash the failure is with- out precedent. The bank has more than the total amount of reserve now in its vaults and had its statement been printed yesterday its cash reserve would have been highly satisfactory. In this respect the failure is unique. The bank was not wrecked in a week or a month, but in the years during which its funds and prestige had been used to bolster up the far-reaching speculations of its second vice-president and chief ex- ecutive officer. Bank examiners and direc- tors were alike hoodwinked into the belief that a cautious, safe business was being done. Not only was the directory completely fooled in the daily sessions, but old tellers who invested their savings in the stock of the institution were not aware of what was going on right under their eyes, and suffer along with the most ignorant of the depositors. R - R WARRANIS SWOKN OUT. Bankers to Be Arrested for Receiving Deposits after They Ave Insolvent. CHICAGO, Iun, Dec. 22—Warrants were sworn out before Justice Hall this evening for the arrest of E. S. Dreyer and Robert Berger of the banking firm of E. 8. Dreyer & Co., which failed here yester- day. The warrants charge the bankers with violation of the banking laws of Iilinois by receiving deposits after the in- stitution was insolvent and were swora out by Frank Kennedy, a saloon-keeper on Dearborn street.. He claims to have made a deposit in the bank after it haa become insolvent. Robert Berger, one of the partners, is a son-in-law ot George Schneider, president of the defunct National Bank of Illinois. The warrants have been placed in the hands of officers and the arrests will probably be made be- fore to-morrow morning. —lgar FAILURES IN MINNESOTA, Depositors Will Not Suffer by the Closing of the State Bank. ST. PAUL, Mi~x., Dec. 22.—State Bank Examiner Kenyon to-day took possession of v.e Bank of Minnesota and as a result of the closing of this bank the Union Stock Yards bank at St. Paul also closed. The bank of Minnesota was the oldest bank in St. Paul. It was estabiished by Dawson & Co. in 1859. The Union Stock Yards bank cleared through the Bank of Minnesota and its closing followed as a matter of course. It was stated at the Bank of Minnesota that depositors would not lose and that arrangements would be made to carry on the bank’s business. The officers of the two suspended banks are as follows: Bank of Minnesota—President, William Dawson; vice-president, Robert A. Smith; cashier, ‘William Dawson Jr.; assistant cashier, Robert Miller; directors, William Dawson, Thoinas Grace, R. A. Smith, A. B, Stick- ney, A. Oppenheim, P. Schmidt, Arnold Kallmsn, P. J. Bowlin, C. W. Copley, Wiliam Dawson Jr., P. 8. Harris. Union B8tock Yards Bank—President, William Dawson; vice-president, William Dawson Jr.; cashier, J. J. Flannigan, The Bank of Minnesota, in common with ail the other banks in the city, had a share of the deposits of the State funds, and at the time of the last state- ment had between $70,000 and $80,000 of the depository for the county, and until recently was the main bank through which the city business was transacted. R. A. Smith, present Postmaster and until last spring Mayor of St. Paul, was for years vice-president of the bank. The Dawsons rank high among financiers. William Dawson Jr. is one of the owners of the St. Paul Globs, in which he be- came interested eighteen months ago. The closing of the bank was as great a surprise to the officers as it was to the gen- eral public. Bank Examiner Kenyon was early on the scene and took charze of the bank’s affairs. He would not give out any state- ment, inasmuch as he had not completed his examination. He did state, however, that the case will 2o into court to-morrow, when an application will be made for the appointment of a receiver. Aside from the closing of the South St. Paul Bank, which was but a branch of the Bank of Minnesota, no other concerns have closed. When early customers ap- peared this morning at the bank they were surprised to find upon the doorsa notice to the effect that State Bank Ex- aminer Kenyon had officially taken charge of the Bank of Minnesota and its records, tooks and effects. The news spread with rapidity throughout the city, and soon iarge groups of men and women made There were 150 people in line until near the closing bour. The bank has withstood €very panic, and on this acconnt is consid- ered strong and attracted a heavy savings account. pPresident Clark saia the bank had per cent of its reserve funas on hand and could stand a run of two months i necessary. Depositors of $50 to $100 Wwere required to give thirty days’ notice, under the bank rule, and when this is their way toward the bank building. Some were present because they were depositors, others came from curiosity. No one was admitted. The public examiner at once began a careful examination of the affairs of the bank. At noon the clearing-house met and suspended the bank from the associa- t ion. The private banking-house from which | the present bank is an upshoot was estab- lished in the firm name of Berry, Holland & Dawson. In 1865 the panking firm be- came known as Dawson & Co., and did an immense business until 1882, when the present Bank of Minnesota was organized under the State banking act. Its capital- ization was $60,000; its surplus and un- divided profits were given at $300,000. Its last report to the Bank Examiner was filed October 8 last, and a call for a new report was issued yesterday which proba- bly hastened action. According to the last report the deposits on demand certifi- cates amounted to $865000. There was due to other banks the sum of $235,000, but there were also resources due from other banks amounting to $104,000, but this sum is amply secured by gilt-edged bonds. The corresponding banks in the country shown on the last report number forty-five, and many of these are small banks in country towns whose fate may depend on the final resumption of the Bank of Minnesota. The Stats had given notice that it would withdraw $25,000 during the week and the City Treasurer also required $15,000 of the public funds. The bark’s open funds deposit amounted to $672,000 at the time it closed its doors. Although no official statement of the Bank Examiner is obtainable uatil the examination has been completed the di- rectors and officers this evening gave out the following statement: “Every depos- itor will be paid in full with the least pos- sible delay.” ‘William Dawson Jr., cashier of the bank, said to a United Associated Presses re- porter that this statement was correct. In addition he said: *“We have had a very large patronage from the retail busi- ness men of the city. The hard times of the past few years have reduced our de- posits over hall. In addition, we have not been able to make collections on bills re- ceivable on large notes due the bank. This, 1n short, is the story of our closing. We might have continued for an indefinite time, but concluded to save the assets in- tact for the depositors and creditors of the bank with a view of making a full settie- ment.” All of the directors of the bank are men of wealth and integrity, and they have authorized the statement that they will see to it that every obligation is met. It is the current belief that the suspension is but temporary and that the bank will re- sume business in a few days, as soon as arrangements can be made to obtain the needed ready money. Its assets are said to be ample to meet requirements, the only difficulty being a shortage of ready money.” The bank officials deny that the Chicago failures had anything to do with the closing of the bank. IvWa BANKS OT INJURED, They Will Not Be Effected by the Chicago Failures. DES MOINES, Iowa, Dec. 22.—Des Moines benks have been called to the aid of numerous country banking customers who were embarrassed by the failure of the National Bank of Illinois. The Chicago institution had a large num ber of accounts with Iowa banks scaiterea all over the State. When it closed they feared their drafts on it would not be paid, and began wiring Des Moines bankers to intervene with < their Chicago corre- spondents and arrange to care for the paper of country institutions until they couid make new arrangements in Chicago. The indications are that Iowa banks will in no cases be injured beyond temporary embarrassment of this kind, but the num- ber that have made such requests is several score. No Des Moines banks are involved, but business circles are very un- comfortable as a result of the troubles in Chicago. BITTEN BY A MiD DOG. One Lad Sucoumbs, Although Treated a the Pasteur Institute. BALTIMORE, Mp., Dec. 22.—Robert J! Henry, 8 years old, one of the eight boys who were bitten three weeks ago by a mad dog mn Baltimore County, died at the home of his parents last night of hydro- phobia. He took the Pasteur treatment in New York, returned from there last Wednesday, and almost immediately after his return he developed symptoms of hydrophobia, and two physicians were almost continuously at his bedside until he died. Dr. Giber, director of the Pasteur Insti- tute, telegraphed from New York to-day that Lawrence Wilson, another of the vic- tims who remains in New York with his parents, is in a serious condition, but he hopes to pull him through safely. The other six victims, all of whom took the Pasteur treatment, are reported as doing nicely, but the death of the Henry boy has caused Dr. Giber considerable uneasi- ness, and he has decided to come to Balti- more to-morrow and endeavor to reassure the parents of the other boys. mE e A Consul-General Wounded. NEW YORK, N. Y., Dec. 22.—A special cable dispatch from Bangkok, Siam, says: A number of Siamese soldiers attacked and wonnded Mr. Kellet, United States Consul-General here. They demanded the release of a consular clerk, who, they al-" leced, had been unjustly arrested. Mr Barrett, the United States Minister herd, protested. The Siamese Governmept, pursuing diliatory tactics, promises to make inquiry into the incident. e ZLynched at Woodstook. BARK JAMAICA SUNK AT SEA Twelve Passengers and All of the Crew Are Drowned. Overwhelmed by a Gale Between Campeshe and Vera Cruz. The Lifeboats Capsiz: and Their Oc- cupants Are Hurled Into the S:a. SAN DIEGO, CaAL., Dec. 22.—The bark Jamaica was lost off Dos Rasas, Tabasco, on the 12th inst. The Jamnaica was on its way from Campeche to Vera Cruz, and carreid sixteen passengers. The number in the crew is not known. The night after sail- ing from Campeche, a terrible norther swept down the gulf, causing great loss to shipping in the Mexican ports. The Jamaica received the full force of the storm in the guif of Campeche and labored greatly, on several occasions giving signs of breaking up. But the night was weathered through and the next day found the storm continuing with unabated force. So long as the ship remained in good condition it was sent scudding along be- fore the wind toward Vera Cruz, and at one time that port was sighted, but one accident aiter another occurred to the rigging. ‘With almost all the sails blown away, the Jamaica turned and attempted to get back into Campeche Bay, but without success. On the afternoon of the 12th the rudder became disabled, throwing the vessel at the mercy of the storm. The passengers took to the boats, which were repeatedly swamped. Most of the crew put on life- preservers and jumped into the sea. The captain was one of these. He strapped 100 Mexican silver doilars upon him and clinging to a barrel tried to reach shore.The survivors saw bim sink, owing to the weight of the metal. One passenger after another sank, the boats proving unmanageable. Every mem- per of the crew was drowned, and only three men and & boy escaped of all the passenzers. The vessel sank soon after it was abandoned. gl 0e S el CHASED BY UNION SEAMEN. Captain of the Catherine Sudden Has Troub'e in Shipping a Non- Union Crew. SAN DIEGO, CaL., Dec. 22.—The bark- entine Catherine Sudden was towed to sea this morning under very exciting cir- cumstances. Captain F. E. Mathieson, its master, had much trouble with the Seamen’s Union and several members had told him that he would never get out of port with non-union men in bis crew. They used every arufice to preveat him from signing & crew, and it began to ap- pear as though he would have to give in; but he had been through the mill before, and concocted a plan and completely out- witted his adversaries. Captain Mathieson was short three men and wired to San Francisco for them, ar- ranging for their passage on the steamer Corona, which arrived lest night. He re- quested Captain Jepsen of the Corona to siow down in entering the harbor so as to allow a tug to run alongside, and received word from the Corona’'s master that he would do so. Then Captain Mathieson engaged the tug Santa Fe, to run alongside the Corona, get the three sailors, convey them to the Catherine Sudden and tow the latter to sea. The arrival of the Corona was anxiously awaited. Captain Mathieson went on board the barkentine with a friend. They carried two rifles and a pistol to guard acainst attack. They saw the lights of the Corona co.ming up the bay. Xu they were pulling away from -the wharf they spied two boats making along the Santa Fe wharf, Seven men were in one boat and four or five in the other. Captain Mathieson knew at once they were union sailors. The business became very exciting. The tug Santa Fe ran out toward the Corona, saluted and received a reply from the steamer. There was some tooting back and forth, while the boat. loads of union sailors skulked in the shadows of the wharf. Then came along toot from the Santa Fe, announcing to Captain Mathieson that his’ sailors had been safely transferred and were comiug up to the Sudden. ..‘I'he Corona passed by and a moment vater the Santa Fe steamed past the Santa Fe wharf. Then the two boats shot out of the shadows and gave chase. The tug showed its heels to the men in the boats and dashed up ‘to the Catherine Sudden. A second later the lines were made fast and the men of the Sudden were boosting the three sailors aboard and BIRMINGHAM, Ara., Dec. 22.—Charles Johnson, colored, was lynched at mid- night at Woodstock, Bibb County, for an attempted assault on Miss Fannie Shith, the 17-year-old daughter of a prominent citizen of that place. Ex-Congressman Hatoh Dying. ST. LOUIS, Mo., Dec. 22.—Word reaches here from Hannibal, Mo., that ex- Congressman W. H. Hatch of the First District of Missouri is dying of Brights disease at -his residence near that city. Mr. Hatch has been an invalid for sev- eral months and lately bis sickness has reached an acute stage. He is widely ll:;i?v:'u as the *‘Father of the anti-option ill” s iy Racing ot New Orleans, NEW ORLEANS, La., Dec. 22.—One mile, Rossmore won, Mamie G second, Logan third. Time, 1:423. Five.eighths of a mile, Maxine Elliott won, Lotta second, Eugar Cane third, Time, 1:033. Seven-eighths of & mile, Campania won, (l)l;E:/Bluer second, Little Billy third. Time, One mile, Frank Jaubert won, Hill Billy sec- ond, Bloomer third. Time, 1:413{. One mile and &_quarter, Scamp won, Pirate second, Ondague third. Time, 2:59. One mile, Alva won, Mrs. Bradshaw second, Alto June third. Time, 1:423/. g In Two Rounds. CLEVELAND, Omro, Dec. 22.—Billy Steffers knocked out Billy Chambers be- fore the Nottingham Athletic Club to- night in two rounds. —_———— Jack Retives From ths Ring. NEW YORK, N. Y., Dec. 22.—Jack Mc- Auliffe has announced that he has retired from the ring. —_——— Ruby 8. Tilden Dead. NEW YORK, N. Y., Dec. 22.—Ruby S, Tilden, daughter of Samuel J. Tilden’s brother, Henry A., and wife of Willis 8. Paine of this city, died to-day at the age of 36. Hers was one of two lives which limitea the term of the general under the Tilden will. Mrs. Paine was something more than $400,000. throwing their bags and bag-age after them. %he two mysterious boats hovered as near as they dared, but Captain Math- ieson stood forward and his friend stood aft, each with a cocked rifle, ready to shoot. “‘Stand off, there,” warned Captain Mathieson. ‘‘L'll bore the first boat that comes near.” A voice replied from one of the boats, “You needn’t shoot; we sare not near ou.” *No, and I don’t want you to be,” re- plied the captain. ‘‘Keep off and you will keep out of trouble.” A wary watch was kept for surprises on the other side, but only two boats were in sight. Anchor had been weighed while the Santa Fe was coming up the bay. Within five minutes the tug had a line and was towing the Sudden tosea. When outsfde Captain Mathieson delivered the Catherine Sudden to his successor, Cap- tain Smith, and with his friend boarded the tug -and returned to the City. The barkentine is bound for Grays Harbor. TS ALL JAW. DONT LET THE druggist compel you to take a substi- tute for Joy’'s Vegetable Sarsaparilla. This remedy is good for the blood, for the liver—kidneys and bowels. Insist on get- ting what you ask for, and get Joy’s— every time. N NEW TO-DAY—CLOTHING. Entitled 0000000 CI0C0CC000I0000 0000000000000 00C) To a Good (000000000000 Sized Crow. [0O000000I0000CCOCO (00000000} 000'00000[0.0.C00C000000C0CO '0,000000L0000000C0000000I00RI00IC000COCC) 533 Flattered and Tickled Are we over the success, the instantaneous suceess, with which owr high-class sale has met. ; The peonle want hidh-class darments; they are only too ready to buy ‘em, and willingly do they buy ’em when they get’em at a popular price. We find ourselves placed in a peculiar condition a few days before Christmas, and our big stock loaded to the muzzle with $25, $24, $22 and $20 High-Class Suits and Overcoats, with but a few days left s to sell these High-Class Holiday Creations. They're the dressiest Sarments we have ever shown ; the highest class fabrics we have ever shown. The people have taken to this sale with wonderful alaerity. These hidh- class Suits, these high-class Overcoats, till closing time Thursday night at $1<2.00. PSR O O R e N mmmmmmmmmmmmmmmmmmmmmmnrmmmmmmmmmmmmmmmyé You have but to look for one moment in our Big Corner Window, where we have exhibited these doods, and yow'll recognize in an instant that our claims have only b;;en modest. Ty Yy Yy Y YT Y T YT PR YT TR VIO ITNS N £ S = i vy /4 = 3 = = =% = = 3 2 = 3 = = = =1 3 = = | E | = | =2 = = =1 = 3 = | = 3 3 =3 = = N The Suits consist mainly of such dressy coloringds that one wears for evening, Sunday wear or on festive occasions. Youw have the Prince Albert, yow have the Cutaway, and yow have the Single-Breasted Sack, all in fine Blues and Blacks, and some Mixtures among ’em; some Sille Lined Swits among ’em. These Swits have sold at $25, $24, $22 and $20. Youw're offered the pick of any of ’em now at $1<2.00. d LA IS LA mmmmmmmmmmmmmmmmmnmrmmmmmmmwmrmm§ The Quvercoats are a rich lot. They're all high-class darments, all dressy darments. Some awfully clever ones in Blue and Black, lined throughout with satin ; awfully rich Sarments, awfully swell Sarments. There’s some right clever Whip Cords in tan shades, in the box lendth and medium lendth ; sarments that yow wouldn't hesitate at any time to pay $25 for. A simple Saze in owr window will tell the tale more quickly and more to our advantagde than all the sayinds we can utter in print. To-day again at $1<2.00. . LARHANALAMAI) gmmm! FULIRNIL RN daa bl e = = = = = = = = £ F E = E = E = = S S &= £ = E = = = = = = = = = = & £ = S LLGHANAAUANANA} 7 VYRV Y YY) gmmmm AUCACC AR RO BIARILIDRAAR A AR TO UL TILGUAGAR A UAR R SIATIAGIA TR SRR L T RAPHAEL'S INCORFPOR ATHD), 9,11, 18 and 15 Rearny Street. TEE FRISCO BOYS EING PINS FOR OVERCOATS.