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bank closed 105 May Another National to-day-the Chicago, Columbia National-and although effort doors the officers say they are all right. or two and is that being fill made. get aid and resume in day that give to are many things about the suspension there suspicion that it is a bad failure. Not circles great rise to was occasioned in financial deal of surprise became known that the bank had suspended. when it had been looked upon with suspicion for some two for it and ramors had been in circulation for time, the Columbia would follow the Chemical days that morning. when President Dwiggins posted a so this that the constant run for several days had for rendered notice it necessary to close for the present protection of all concerned. most of the financiers the nodded knowingly. The bank had a capital merely stock of $1,000,000, and deposits approximating #1 1,500,000. The Columbia was organized in February, 1891, with the United States National as the foundation. The United States began in 1887 with $50,000 capital as the private institution of George Wiggs. the bucket shop man. Later Zimri Dwiggins, an Indiana County banker, came into the bank and the capital was increased to $500,000. It never had deposits equal to the capital stock. and is said to have been a failure, when the idea was conceived of reorganizing under a new name and with increased capital. The services of a Kansas City bank promoter were called in. and the Columbia National was the resuit. Dwiggins, while president of the United States, had organized a chain of little country banks through Indiana and Illinois, and had thereby established of considerable prestige with interior banks. Many them took stock of the Columbia. 1. Everingham, & successful member of the Board of Trade. was in duced to take stock and the presidency of the bank. and he was Instrumental in procuring the business of a number of Board of Trade men. About year Ago the bank applied for admission to the Clearing House. The committee looked into its standing and rejected its application. The books looked all right and its showing was apparently all right. but the committee thought there was a question about its standing and denied the application. President Zimri Dwiggins ascribes the failure of the bank to the quit which was brought against 11 by the Sloux City Loan and Trust Company which failed a few days ago. The Columbia was the Chicago bank with which the Sioux City concern did business, and their deposit in the bank at the time of their collapse amounted to $35,000. A draft was drawn on the Columbia for this amount When the draft was presented by a man from Iowa the bank refused payment. claiming that 11 had loans outstanding against the Sioux City Company which equalled the amount of their deposit. Immediately on this refusal of the bank to honor the draft the company entered suit against the bank The news of the suit spread and caused a run on the bank which they were unable to withstand. The Columbia not being a member of the Clearing House cleared through the Metropolitan. It is stated that it was really in shall low water when the Chemical failed. and borrowed $50,000 from the Metropolitan on good paper to tide over Tuesday. Yesterday it called for help again. but President Keith could not make such an examination into the affairs of the Columbia as would have been necessary. and refused the assistance asked. The Columbia officials then turned to the Bank Clearing House Committee and asked for $3,000,000. They were told to bring around good collaterals in the morning and the necessary relief would be forthcom ing. Twenty minutes before 10 this morning President Dwiggins appeared with a bundle of securities, a large portion of which proved to be stock in country banks. These could not be looked into In the time at command, and Dwiggins went away without his $3,000,000. The only thing left to do was to call in the bank examiner. The latest statement issued by the bank makes this showing: Resources-Loans and discounts. $1,624,932.27 United States and other bonds, $341,257 91: furniture and fixtures, $12.715.93 cash and sight exchange, $615,975 06; total, $2,594,861 19. Liabilities-Capital, $1,000,000; surplus, $50,000; undivided profits. $41,930.95; circulation. $45,000; deposits, $1,457,950.34 total, $2,594,881 19. Bank Examiner Sturges said this evening that he could give no information yet. The principal business of the Columbia was with country banks and they will be the chief sufferers. On account of its lack of local standing local people were bigger bor rowers than depositors. For that reason the failure will have a more far-reaching bad effect than the suspension of the Chemical. The Journal" says that curious and possibly unpleasant complications are likely to grow out of the peculiar dealings of the Columbia National with he United States Loan and Trust Company. an adjunct of the bank having offices in the rookery directly across the street. Washington. May 11.-Controller Eckels has desig nated D. A. Cook, Bank Examiner for Illinois outside of the city of Chicago, to take charge of the Columbia National Bank of Chicago, which failed this morning. The failure of the Columbia National Bank of Chlcago will not seriously affect any of the New York banks. The standing of the institution has been such as 10 lead to extreme conservatism here. A trifling loss may fall upon the National Bank of Deposit, at Broadway and Dey-st. but that is not probable. Hopkins J. Hanford, cashier of the National Bank of Deposit, said yesterday "Up to within two or three months the Columbia carried a good balance with us-from $40,000 to $50,000 For some weeks its balance has been running down. and as it has diminished we curtailed our accommodations. The Columbia had an overdraft this morning of 35,100, but the mails brought us about $4,800 a an offset. The remit tances we expect in to-morrow's mail will probably leave the bank a credit balance of 82,700 In any event our loss could only be trifling. We have no connection with the Columbia other than this, and its people are not interested in the National Bank of Deposit." The announcement of the suspension of the Columbla National, of Chicago, was not unexpected in banking circles here. Its methods have not received the approval of York banking men. Some in teresting stories were told here about the leading men in the institution. The bank was started by Zimri Dwiggins and J. M. Starbuck, of Chicago, who form the so-called banking firm of Dwigghus, Star buck & Co. The firm is not widely known even in the banking world of its own city, although its ploits as a promoter of State banks in the West ex The been followed with interest by Eastern men have to avoid losses in their who wish Columbia banking business. Bank National United States Bank was the result of merger with the originally started of Chicago, concern was by Messrs. Dwiggins and Starbuck created In 1891 with capital But the Dwiggins $1,000,000. starting State bank syndicate has been active in banks in many of the towns of Illinois, Indiana smaller have put about and Michigan It 18 said to in the three fifty branch concerns into business themselves. States. Having thorough confidence Ing Mr. Dwiggins and Mr. Starbuck, in to the story told by rell-informed accord would organize banks in then vesterda to freely lend money different country towns and stocks of their concerns. each other upon the capital of assets worked this Interchange When things boomed when one of the syndicate's admirably and were business the losses banks didn't succeed in else than the Dwiggins pool. found to fall upon some one believed to have But of the manage scattered ment presidency of Mr. branch Dwiggins that bank Columbia concerns is Bank of service Chicago. in his found Under these his Mr. stocks Dwiggins of the or different Mr. readily branch loaned institutions money in on which the cashler Starbuck ingured as sident
