Valentine Democrat. (Valentine, Neb.) 1900-1930, 1905-12-28
THREE BANKS QUIT.
CHICAGO INSTITUTIONS OF JOHN
r. WALSH GO OUT.
Chicago National, Equitable Trust
Company and Home Savings Bank
Close Business-Tyvo Banks Alone
Garry 22,5OO,oOo of Deposits.


the Equitable Trust Company, all Of
Chicago, was announced at $3.50
O'Clock Monday morning by represent
atives of the Chicago Clearing House
Association, after a session lasting
eighteen hours. James y. Forgan,
President of the First National Bank,
as head of the clearing house commit
tee of the Chicago Associated banks,
gave forth the statement. The assets
OF these institutions, it was asserted,
were involved in coal and railway
properties Of John Il. Walsh, Presi-
dent Of the Chicago National Bank.
The statement was issued in the office
of the First National Bank. 1t is as
rollowS:
The citizens of Chicago will I'LL
.dOubtedly be surprised to learn that
the Chicago National Bank, the Home
Savings Bank, and the Equitable
Trus Company, which have been con-
zrolled, managed, and Differed by
John r. Walsh and his associates
have concluded to wind up their af
fairs and quit business in the city of
Chicago, but they will be gratified to
aearn that after q thorough and care
full examination of their affairs by the
Chicago Clearing House banks that
all of the depositors Of these institu-
lions will be pand in full upon de-
mand, the Chicago clearing house
banks having pledged themselves to
This result, thus putting all the re-
sources Of the Chicago banks behind
she depOSitors of these three inStftu-
lions. The difficulty with the institu-
fions has been that their investments
have been made in assets connected
with the railway and coal enterprises
of John r. Walsh. These assets were
not Immediately available to meet de-
posts in full
The meeting of the Chicago Clearing
House Association began at noon Sun
day. Notices were sent members Of the
board by Mr.. Forgan after the condition
of the banks and the trust company had
been learned. Clerks were notified and
fifty or more with their stenographers
hurried to the First National bank. Be
slind closed doors the Clearing House
AssOciati ton began its work Of finding a
way that might enable them to ride the
financial sea in safety.
That a panic would be likely to fol-
low was the first thought of the COM
anittee Resolutions were adopted and
heads of other banks pledged themselves
10 give assistance The amount involv
.aI in hO f,iI, bo
. by the committee members.
n In addition to the formal statement
"of the failure. the following announce
ment was made, signed by the clearing
jaouse committee of the Chicago assoc
iated banks:
ITO the Public: Depositors Of the Chi
.cago National bank, the Home Savings
bank, and the Equitable Trust Company
are respectfully advised that their de-
posts will be paid in full upon demand.
Syndicate Takes Control.
4 syndicate was formed during tho
day to take over the business of the
three embarrassed financial institutions.
As the first step all the old directors of
the Chicago National bank retired, Mr..
Walsh resigning as president, and q
complete reorganization was effected
The bank will be conducted by National
Bank Examiner G. II. Bosworth, who
was elected president in place of Mr..
Walsh. Under the direction Of the fed
eral official the three concerns will so
into liquidation as soon as possible. after
which their business viii be distributed
among the banks making up the syndi-
cate Revelations were made of opera
tions IN connection with the bonds of the
Southern Indiana railroad, Mr.. Walsh's
pet enterprise These operations, it is
said. led directly to the smash.
Twenty-six millions of dollars in de'
posts of public funds and private &C
counts are involved in the crash, which.
through the prompt action of the con-
servatiye banking interests of Chicago,
claims for its victims only Mr.. Walsh,
gnulti-miiiionare financier and railroad
lnagnate, and his immediate associates
=jn business.
Greatest Failure on Record.
Not in all the financial history of this
financial country was there ever such
trouble--one involving so much money
and that has emerged with so little dis
aster to the community at large. There
never was Il bank that quit before hav-
ing such colossal deposits, the three
Walsh concerns carrying upwards of
S26,O00,000. Nearly $G000,0O0 was paid
ont to the frantic depositors on the day
of the collapse That Chicago escaped
panic, that the financial revolutions
which took place in day did not shake
and shock every center of commerce on
the globe was due TO the heroic efforts
of the other Chicago bankers. At mo-
ment more critical than at any period
since the memorable black Friday and
the panic Of 1895, they came to the re-
lief Of Mr.. Walsh's concerns. They not
only saved millions of dollars for Chi
cage depositors, but they prevented
very earthquake. which, it is declared,
inevitably would haze followed had
WaIshs banks gone straight to the wall.
Great crowds Of depositors besieged
the Chicago National and Home Savings
o.. l. Al,