Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1905-12-23
THREE CHICAGO
BANKS FAIL
Institutions Involved in Operations
Of John r. Walsh.
DEPOSITORS LOSE NOTHING

Chicago. Dec. 19.-Three of the
largest financial institutions in the
west. the Chicago National Bank, the
Home Savings Bank and the Equitable
Trust company. all of them controlled
by John r. Walsh. OF Chicago. and in
great measure owned by him have
suspended operations. Their affairs
will be liquidated as rapidly as posi-.
Die and they will go out of business.
Mr.. Walsh, who was the president
of the Chicago National Bank and OF
the Equitable Trust company. and all
the other officers and all the directors
OF the Chicago National Bank have re-
signed. E~tional Bank Examiner c. H.
Boworth has succeeded Mr.. Walsh as
the head OF the Chicago National Bank.
and the places Of the directors have
been filled by men appointed by the
Chicago Clearing House.
Back of the new management stand
the allied banks of Chicago. which
have pledged their resources that
every depOsitor shall be paid 10 the
last cent, and that no customer OF any
one Of the three institutions shall lose
anything by reason Of the suspension.
This action prevented a disastrous
financial panic.
The immediate cause Of the collapse
OF the institutions controlled by Mr.
Walsh is said TO be the large amount
OF money which they have lent "a
various private enterprises OF his. no
tably the Southern Indiana railway and
the Bedford Quarries company. OF In.
diana. Mr.. Walsh says that If he
could have had a little more time and
been left untrammeled in his oper-
atoms ne 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
Railroad company.
The liabilities OF the three institu-
tons are estimated I'm the aggregate
at $4,000 600. Against this amount the
banks and the trust company have re-
sources that are on a conservative es
Innate. worth $4,000. 600. The bonds
OF the Southern Indiana Railroad com.
pany are estimated by Mr.. Walsh az
el6.000.000. They are considered by
the comptroller. the state auditor and
tho clearing house committee to be
worth a little more than half OF that
sum.
The directors Of the two banks. as
well as Mr.. Walsh. who has turned all
OF his private property. as well as that
standing in the name OF Mrs Walsh
have pledged real estate and securities
valued At 100000. making A total I'm
assets OF $4,000. 900. estimating the
railroad bonds at $4,000. 900. against
S96 0O0. 900 liabilities
The deposits In the bank were S14.-
$4,000 and there is due to other banks
$2,O3S.S51.
The following statement was issued
by Comptroller Ridgely:
"A misund seems 70 OK
list as 10 what has happened TO the
Chicago National Bank. This bank has
not failed or closed its doors. II has
been embarrassed by the investment
OF It's assets in unavailable securities.
but the banks OF Chicago have come
TO its relief and have guaranteed the
payment in full on demand. of all the
creditors OF the Chicago National
Bank. The bank is open for business
as usual, with these guarantees be
hind II that II will meet all its oblI-
cations and every dollar at once"