Waterbury evening Democrat., 1905-12-18
BANK KCLOSED UP Chicago National in a
 Bad Way
AN IS HOUR SESSION
Was Held Before it Was Decided to Close Institution -Equit- able Trust Company is
 Also Involved.

tutions, the Chicago National bank, the Home Savings bank and the Equi- table Trust company, dominated by John R. Walsh of this city, to wind up their affairs. The other national banks Of the city have come to the rescue and It is declared on the authority of the clearing house association, the comptroller and also by the officers of the Chicago National bank, that not a single depositor will lose q cent,
 The difficulties of the three banks, which are practically branches of the same institution, are attributed by the comptroller of the currency to the large loans made by the Chicago Ma tional bank to the railroad, coal min. ing and other private enterprises con trolled by Mir Walsh.
 Some time ago the comptroller call ed the attention of the officers of the bank to the fact that they were mak- Ing loans to these enterprises of Mir Walsh which in his opinion were too large for the safety of the institution. Repeated promises were made that the situation should be rectified but no ac- ton satisfactory to the comptroller was taken. Three days ago he came to Chicago for the purpose of making an investigation into the affairs of the
 three banks, and found them in such condition that he judged immediate acton to be necessary. Some trifliny delay had ensued because of the jp- ability of Mir Rldgely to meet the off. cers Of the bank and officials of the state auditors office.
 The fact that the Home Savings bank and the Equitable Trust con- pany are under state supervision made tne presence of the latter official neces- sary. Officials of the different Chi. cago banks were told of the situation and a hurried call was sent out for n meeting of the Chicago Clearing House association. as well as the off. eers Of the city banks. The meeting was called to order in the office of President Forgan of the First Nation. ai bank at o'clock yesterday after. noon and was in continuous session until . o'clock this morning.
 careful canvass of the situation revealed that the Chicago National bank had deposits to the amount os Slo,oOo'OOO, the Home Savings bank nad savings deposits to the extent of S4,0OoOOO divided among about 5000 depositorsi The liabilities of the two banks, and of the Equitable Trust Go were roughly estimated at S26. GOO GOO The assets of the three institutions made up about $20,OOO.OOO of tbis amount and the directors and officials oi The Chicago National bank came to me front with securities amounting fin about S3,OO0,000 more. This Jeff n dehcit of about S3,00O, 900 to he facad and the Chicago banks represented ot tne meeting declared at once that they would meet the situation and fare for the deficit. If it proved necessary fin advance any more than s3.OOO. .OO0 to meet all demands the banks pledged themselves to make up the amount whatever 1t might be.
 The great difficulty confronting tba bankers in the meeting was to arrange regal settlement of the case in the very short time at their disposal he. Iore the hour of commencing business this morning. It was finally arranged that In addition to winding mn the os. fairs of the three financial institntions .ne allied bankers should take all of MT Walsh's private enterprises. includ. ing ms coal mines and railroads and stone quarries.
 me Chicago National bank was or. ganized in November. 1ssl with nm authorized capital of S3OO.OO0 which vas increased to $J00.OOO fin 1887 and SlOOO,OOO in 1901. Its resources ac- cording to the last statement sIod Nith the comptroller of the currency. were S2l.OOO,O0O, of which nearly S1i.. OO0,OOO was in loans and discounts Win S4,OO0,000 of cash on hand Tbe individual deposits are about s14 oOo OOo In individual accounts and S9 ,oo OO0 due to other banks
 The Home Savings bank was or- ganized In 1S6T with a capitalization of SlOO,Oo0. It existed for many years as an Independent institution and about twelve years ago became n part Of the Chicago National bank. If was primarily a savings institution. Its last report showed resources of sa. 2S0OO0. for the most part fin raflrosd ana municipal bonds The savings de posits aggregate S3.9S3.Oo0
 The Equitable Trust Co was char. tered in 1887 to act as adminixtrator execut0r. trustee. and to receive apd execute trusts of every character. The eapital stock Is SJO0.OO0. and inc ra- sources are S4.612.OOo. The liabilities Include S2.O0T.563. of which amount s454.0oO are deposits In trust. and S0o0oO In certificates of deposit.
 The Chicago National bank has been an active factor in local politics for several years. and the enormous funds received from the taxation for the building and maintenance of the drainage canal have been a part of It's deposits and have been available for investment by the bank. A change was recently made in the political complexion Of the baari and It wac understood thst these funds would not remain for any length of time as deposits In the Chicazo National hank Their impending wIthdrawaI had much to do with the fear of the other hanks of a far-reaching collapse If they dkl not cone to the aid of the weakened inSfEtutiona
 The enterTTizes vhlch gre grsersIly errdsei vfth heiuz the indirect cause of the financial troatIe< of Mr walsh sre fhe Prffcrd ouarTses CO of Inrii-