The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1905-12-22

llOn MAD SDenC 1lS IFSl Jury d1lu y
there We're some wide rccOHcries.
Chicago. Dec. 20.-Action las been
taken by Comptroller Of the Currency
Ridgely that will compel the Chicago
National and Home Savings banks and
the Equitable Trust company, dorni-
mated by John r. Walsh, of this city,
to wind up their affairs. Other ma
tional banks of the city have come to
thority of the clearing house associa-
ton, the comptroller and also by Off
GERS of the Chicago National bank that
not a single depositor will lose a
Difficulties of the three banks. which
are practically branches of the same
institution, are attributed by the comp
troller to large loans made by the Chi
Gag National bank to railroad, coal,
mining and other private enterprises
controlled by Walsh.
Warned by Ridgely.
Some time ago the comptroller called
attention OF the officers of the bank
to the fact that they We're making loans
to these enterprises Of Walsh, which, in
his opinion, were too large for the safe
ty of the institution.
Repeated promises were made that
the situation should be recti1ied. but no
action 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
condition that he judged immediate ac-
ton to be necessary.
Other Banks to the Rescue.
officials of different Chicago banks
were told of the situation and Il hur-
ried call Vas sent out fora meeting of
representatives Of the Chicago Clear
ing House association and officers of
city banks. The meeting WE called to
order at 3 o'clock yesterday afternoon
and was in continuous session until 5
o'clock this morning.
Careful canvass of the situation re-
vealed the Chicago National bank had
deposits to an amount of SIG. 900, 900 and
the Home Savings had deposits of
81, 900. 900, divided among 5000 deposit
orS.
Extent of the Failure.
The Liabilities of the two banks y
Of the Equitable Trust. were roughly
estimated at s26, 600, 900. Assets of the
three Institutions made up about $780,
900. 900 of his amount and the directors
and officials of the Chicago National
bank came to the front with securities
amounting to about three millions more.
This left a deficit of about $4,000. 600
to be faced, and Chicago banks repre-
scented at tie meeting declared at once
they would meet the situation n care
for the deficit. If it proved necessary
to advance acy more than IS, 900. 900 to
meet all demands. the banks pledged
themselves to make vi the amour
whatever it might be.
Take Over Walsh's Property.
It was also arranged in addition TO
wind up the affairs of the three
institutions, and the allied bankers
should take all of Walsh's private en-
terprises, including coal mines, rail-
roads and stone quarr;eS.
At the close of the meeting, Comp
trol!er Ridgely issued the following
statement:
Ridgely's Statement.
The action OF the clearing house
banks i'll coming to the aid of the in
solvent institutions has relieved "A
most critical situation. which. if ii had
moi been taken promptly in hand. might
have led to very serious consequences,
not only in Chicago but elsewhere. The
action of the clearing house banks
makes it absolutely certain all creditors
will receive their money Immediately
and shouid thus relieve any appreiien-
sion on Inc part of the public in regard
To financial troubles in Chicago. The
critical situation in which these three
corcerns has been placed has been due
TO large loans made to railroad. coal
miDing and ottei. enterprises owned
anu cOiltFOtieQ Dy walsh. ms again
emphasizes the danger Of managing Of
licers of banks being Interested in ut-
side institutions requiring large
amounts OF money. The complroiler's
oiiicr has for some time been criticiSing
tl:e Chicago National and calling upon
- officers u directors to reduce TIE
amount of these loans"
Analysis of Condition.
Chicago. Dec. 1S.-Ihe Chicago Ma
tio,lal bank was organized in Novem-
Der. 1881 n has a capital of 81, coo. OO0;
It's resources. according to the latest re-
port, made to the comptroller, are s2i.-
900, 600, of which nearly 81, 900, 900 are
!oans and discoupts, witt 81, 900. 900 cash
pA hand The liabilities include nearly.
$4,000. 600 in ~jSdividual deposits and
s. $4,000 iuG TO other banks.
Tho Home Savings bank was organ
;4ed II 1857. with d capital OF 500, 900.
Late reports show It's resources to be
s4.232. 0O0.l of which 1871 s2, 900 is report
ed AS being held in. municipal. railroad
! and other bonds. Savings deposits ag
gregate So. 1888. 900.
The Equitable Trust company was
! chartered in 1857. capita! s5Oe fan, re-
sources of s4.il2,oao: liabilities mclud,