Mexico Missouri message., 1905-12-21
WALSH CONCERNS
Embarrassed
John R. Walsh, the Chicago Multi-
millionaire, Forced to Assign.
TOO MANY IRONS IN THE FIRE
Three Financial Installations In
VOWED, But she other Banks Have
stepped Into the Breach ana
Have AVerted n Crash.

Chicago, Dec. 19.-Three OF the high-
est financial institutions in the west
the Chicago national bank, the Home
savings bank and the Equitable Trust
Co, an Of them controlled by John R.
Walsh, Of this city, and in great meas
ure owned by him, suspended operations
Monday.
Mr.. Walsh, who was the president OF
the Chicago national bank and Of the.
Equitable Trust Co. and all the other
officers and all the directors Of the
Chicago national bank have resigned.
Examiner BOsworth In Charge.
National Bank Examiner Bosworth
has succeeded Mr.. Walsh at the head
Of the Chicago national bank, and the.
places Of the directors have been filled
by men appointed by the Chicago
clearinghouse. Back Of the new man
agement stand the allied banks OF Chi
cago, who have pledged their resources
that every depositor shall be paid to
the last cent, and that no customer OF
any one Of the three institutions shall
lose anything by reason of the suspen-
sion. Had not this action been taken
by the banks Of the city a disastrous
panic must have followed in the finan-
cIaI world. As it was, the only effect
In this city was the decline on the local
stock exchange Of 2Ih In the price Of
National Biscuit common stock, which
has employed the Equitable Trust sat
transfer agent, and had, besides, deal
ings with the Chicago national bank,
but is not affected by the failure In the
slightest degree. The closing Of the
two banks had the effect also Of shut
ting on all demand on the local ex
change for bank stocks none Of them
being purchased.
The Cause of the Collapse.
The immediate cause Of the collaps,
Of the institutions controlled by Mr..
Walsh is said to be the large amount
Of money which they have loaned to
various private enterprises of his
notably the Southern Indiana railway
and the Bedford Quarries Co., Of In
diana Mr.. Walsh claims that IL he
could have had a little more time and
been left untrammeled in his operations
he could have saved his banks and
made enormous profits for himself and
his associates. He bases this state
ment on his estimate of the value Of
the bonds Of the Southern Indiana Rail-
road Co. The comptroller, the state
auditor and the members Of the Chi
cage clearinghouse committee place the
value of the bonds at one-half the valu-
alton Of Mr.. Walsh, and It was their
refusal to accept his valuation that
caused the suspension of the banks.
The Aggregate Liabilities.
The liabilities Of the three institu.
lions are estimated, in the aggregate. at
500, OOO, 900. Against this amount the
banks and the trust company have re
sources that are on a conservative esti-
mate worth $4,000, 600 The bonds Of
the Southern Indiana Railroad Co. are
estimated by Mr.. Walsh as being worth
$16,000,000. They are considered by the
comptroller, state auditor and the clear
inghouse committee to be worth lit
tie more than half that sum. THEW
value is a matter to be determined in
the future, and the presidents of the
local banks admit that II the estimate
of Mr.. Walsh is found to be correct,
the two banks and the trust company
viii not only pay ali Of their debts, but
leave a surplus besides. The directors
| Of the two banks and Mr.. Walsh, who
has turned over all his private proper
ty as well as that standing In the name
of Mrs. Walsh. have pledged re&l es-
tate and securities valued at 5000, 600
and estimating the railroad bonds q
$s,0O0,OOO more, making a total Of S2g..
100000 assets against s26,OOO,OO0 liabilt
ties.
Personnel of the InhtltutioRa
The oficers of the Chicago nations
bank were; President, John r. Walsh,
viee-president, +. NJ. Blount, and the
directors were: John r. Walsh, F. NJ
Blount. f. G. McNally, John N. Smith.
William Best, G. K @. Billings, Mau.
rice Rosenfeld. The deposits IN the
bank were. St4. 4S3 900, and there waa
due to other banks s2,OSs,s51.
The officers Of the Home savings
bank were: President, William ]. Ona.
han; vice-pres.dent, Maurice Rosenfeld.
The directors we're: @. X. q. Billings,
Maurice Rosenfeld. John M. smyth, w.
J. Onahan. William Best, John r.
Walsh.
The officers and directors Of tho
Equitable Trust CO, were partially the
same as those Of the Home savings
bank, with the exception Of Mr.. Walsh.
who was president in place Of Mr. ona.