Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-12-18

managing officers Of banks being
interested in outside institutions
requiring large amounts Of money.
The comptroller's soffice has for
some time been criticizing the Chi
cago National and calling upon its
officers and directors to reduce the
amount of these loans and invest
ments in bonds Of Walsh's corpor-
ations. In spite of repeated prom
fises that this should be done, these
items have been continued in the
bank and in order to prevent fur
ther encroachments it was neces-
sary for the comptroller to take
radical action. The conptroller's
office has for some time been en-
deavoring to make an exa1nina-
ton of the Chicago National SIM
ultaneously with examinations OF
state institutions by the state bank :.
examiner, but was not able to bring
this about until a few days ago.
The result of these examinations
revealed such serious condition
that it was necessary to take inn
mediate action. The comptroller
feels that great credit Is due not
only to the clearing house commits
tee, but to all other clearing house
banks for prompt and vigorous ac-
ton and broad minded spirit shown
in meeting this emergency"
Organized in 1881.
The National bank was organized in
November, 1881, and has a capital Of
sI,0oo,oe0. It's resources, according to
the latest report made to the comp
troller, are s21, 100000, of which nearly
$11, 100000 are loans and discounts,
with s4,0OO,OO0 cash on hand. The liza
bilities include nearly $14,000,O00 in
individual deposits and s4,7o0,000 due
to other banks.
The Home Savings Bank was organ
lied in 1867 with capital Of 100000.
Late report shows resources of $4,232,-
900, of which $3,7S2,000 is reported az
being held in municipal railroad and
other bonds The savings deposits ag-
gregate s3,9S3,0o0
The Equitable Trust Company was
chartered in 1887 with capital Of half
a million. The resources were $4,612,-
900 and liabilities include $2,7O7, ,563, Of
which amount s454,o00 are deposits in
trust and half million in certificates
Of deposit.
Interested in Politics.
The Chicago National Bank has been
an active factor in local politics for
several years, and enormous funds re-
ceived from taxation for building and
maintenance of the drainage canal have
been part of its deposits and have
been available for investment by the
bank. A change was recently made in
the political complexion of the board
ana it was understood these funds
would not remain for any length Of
time as deposits in the Chicago Ma
tional. Their impending Withdrawal
had much to do with the fear of other
banks Of far reaching collapse if they
did not come to the aid of the weak
oneQ INSTITUTIONS.
Cause of Failure.
Enterprises, which are generally
credited with being the indirect cause
of the financial troubles Of Walsh are
the Bedford Quarries Company of In.
diana and the Southern 1ndiantl
Railroad Company, which was con-
structed by Walsh for the purpose of
getting the stone from his quarries to
the market. Walsh was a heavy stock
holder in the Akron Gas Company, H..
linois Southren Railway Company.
Rand, McNally Company. Southern In
diana Express Company and half a
companies. To the stone quar-
ries and Southern Indiana Railroad
Walsh made repeated heavy loans Of
funds Of the bank, and 1t was these
to which objection was made by Comp
troller Ridgely. Repeated assurances
were made by the officers Of the bank
that these loans would be called Fin
ally Ridgely determined on personal
The action last nigh.
his determination. 1t is de-
clared by local financiers that Walsh
has invested all the way from five nil
lions to fifteen millions in quarries and
railroads.
Public Surprised.
The news Of the difficulties ssr-
the banks came as tremen
dous surprise to the public. The first
Of any trouble was eor.-