Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1905-12-18
A BIG FINANCIAL
CRASH IN CHICAGO
Three Banking In
stitutions Go
to Wall.
AsA>>.---- ..... -.
DEPOs|TORs WILL GET ALL
John r. Walsh Interests Fail.
Officials and Banks Make
Up Deficiencies.

Chicago, ILL.,, Dec. 1S.-Action has
been taken by Comptroller of the Cur
rency William B. Ridgely, that will
compel three large institutons-the
Chicago National Bank, Home Savings
Bank and Equitable Trust Company
all 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 declar-
ed on authority Of the clearing house as
sociation, comptroller and also the Of
ficers of the Chicago National Bank,
that not single depositor will lose
one cent. The difficulty of the three
wrecks, which are practically branches
OF the same institution, is attributed
by the comptroller of the currency to
the large loans made by the Chicago
National to railroad, mining and other
private enterprises controlled by
Walsh.
Made Large Loans.
Some time ago the comptroller
called the attention of the officers of
the banks to the fact that they were
making loans to these enterprises OF
Walsh, which in his opinion We're too
large for the safety of the institutions
Repeated promises were made that
the situation should be relieved but
no action satisfactory to the comptrol-
ler was taken. Three days ago he
came to Chicago for the purpose OF
making an investigation into the al
fairs of the three banks and found
them in such condition that he judged
immediate action was necessary. The
officers of the different Chicago banks
were told of the situation and hur
ried call was sent out for a meeting
of the representatives of the Chicago
Clearing House Association, as well as
officers of the city banks. The meeting
was called to order in the office OF
President Forgan of the First National
Bank at three o'clock yesterday after
noon and was continued until three
o'clock this morning.
The Liabilities.
A careful canvass of the situation
revealed that the Chicago National
had deposits amounting to $l6,OO0,0oo
the Home Savings Bank OF $4,000,ooo
and that the liabilities of the two
banks and of the Equitable Trust Com
pany were roughly estimated at S26,
100000 and the assets at $2o,ooo,ooo,
This deficit will be taken care OF, hall
nv the officers of the Chicago National
and half by the banks represented at
the meeting.
The enterprises which are generally
credited with being the indirect cause
of the financial troubles OF Mr.. Walsh
are the Bedford Quarries Company OF
Indiana and the Southern Indiana
Railroad, which was constructed D!
Walsh for the purpose of getting the
stone from his quarries to the market
He was unable to get Chicago en-
trance for his. railroad and was un
successful in his efforts to sell to the
Pennsylvania road.
In addition to these two enterprises
which he practically owns, Walsh II
heavy stockholder in the Akron GaS
Company of Akron, Ohio; the limos
Southern Railway Company; Rand
McNally & Company; Southern lndl
ana EXPRESS, and half score OF gas
o,octr;c lighting and coal mining com
panies.
TO the public at large, which wa
no+ acouainted with the magnitude 0
Wa,sh,s enterprises, the news OF TN
d;ficulties surrounding his bank
came as a tremendous surprise. Iw'
hours before the time for opening TN
hank a large crowd gathered in from
Of the Chicago National and HON
Savings Bank. Inside the banks amp
provision had been made 1or ~
impending run. The money was iai
out in large piles and additional ciefh
stationed at the paying windows an
arrangements made in other parts
the bank to pay the money as last d
called for. The savings bank Will nc
demand it's right of sixty days notlc
but will pay all deposits on demand
The failure Of the Chicago Natlohls
Rank. the Home Savings Bank an
the Equitable Trust Company, was al
nounced at $3.50 this morning by III
REPRESENTATIVES of the Chicago Clea
;,w House Association after a sessio
lasting eighteen hours,
The excitement over the failure
IN largely subsidized by A o'clock. IT
navment Of the depositors was mat
wIth rapidity and the crowd arour
the Chicago National Bank was !
larger than on an average busine'
day. ..,5, x
Walsh Acts Right. "A
Al noon It was announced that 9