The daily morning journal and courier., 1905-12-19
Only a Simultaneous Ex. animation Reveals True State of Affairs of Three Suspended
 Chicago Insti-
 tutions.
SECURITIES JUCGLED WITH
TRANSFERRED FROM ONE BANK
 TO ANOTHER.

IO ANOIHEh' OficiaIs Enabled to Do This While Sep- l arate Examinations Are Made but Are Caught When National and State Examiners Go Over Books of Differ ent Institutions at Same Time Affairs to be Liquidated as Soon as Possible and Banks ito Go Out of ], Business = Liabilities S26,0OO, ,OOO- i Total Assets After Mir. Walsh and
 Mrs. Walsh Turn Over Private FOr- . tunes Estimated ut $20,OOO, ,OOO-Pay-
 ment of Every Gent to Depositors
 Guaranteed by Other Banks.
 Chicago, Dec. 1S.-Three of the larg est 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, suspended op- erations to-day. Their affairs will be liquidated as rapidly as possible and they will go out of business.
 Mir. 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. National Bank Examiner c. H. Bosworth has succeeded MT. Walsh at the head of the Chicago National bank, and the places of the directors have been filled by men appointed by the Chicago clearing house. x.z Back of the new management stand the allied banks of Chicago, which have pledged their resources that every dnnositor shall be paid to the last cent. This action prevented any effect on the tlnanclal world of Chicago other than the decline on a stock exchange of 21s ill the price of National Biscuit com mon stock. The National Biscuit com- pany had employed the Equitable Trust as transfer agents, and had, besides, dealings with the Chicago National bank, but it is not affected by the fail- ure in the, slightest degree.
 The immediate cause of the collapse of the institutions controlled by Walsh Is said to be the large amount of money which they have lent to various private enterprises of his, notably the Southern Indiana railway and the Bedford Quar- ries company, Of Indiana. MT. Walsh says that if he could have had 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.
 The comptroller, the state auditor and the members of the Chicago clear ing house committee, however, place the value of the Southern Indiana Rail- road company bonds at one-half of MT. Walsh's estimate, and 1t was their re- fusaI to accept his valuation that caus- ed the suspension of the banks.
 The liabilities of the three institu- tions are estimated in the aggregate at S26, GOO, GOO. Against this amount the banks and the trust company have re- sources that are, on a conservative es- timate, worth $16,0O0,O00. The bonds of the Southern Indiana Railroad compa- ny are estimated by MT. Walsh at $16,- 0OO,000, but they are considered by the comptroller, the state auditor and the clearing house committee to be worth a little more than half that sum.
 The directors of the two banks as well as MT. Walsh, who has turned over all of his private property as we'll as that standing in the name of Mrs Walsh, have pledged real estate and se- curities valued at $5,OOO,0o0 making a total in assets of $29,0OO000, estimating the railroad bonds at $8,00o,000, against e26,000, 900 liabilities.
 Some time ago Comptroller Ridgley took exception to the large loans made by the Chicago National bank to pri- vate enterprises of MT. Walsh, and de. clared that portion of them must be called in. Assurances were given, the comptroller declares, that this would be done, but the promises were not kept Finally the incentive to a close scru' tiny of the affairs of the Chicago Ma tional and the Home Savings banks was given by banker in New York who had been requested to take part 1T a syndicate to furnish loan of $6,000, 900 to MT. Walsh to further expendi' lures on the Southern Indiana railroad The bonds of the company, however did not sell as rapidly as was expected and state and national bank examiner! were apprised of the failure of thu loan.
 Up to this time the banks had beer examined separately, which enabled them to transfer securities back anC forth. It was decided that the .seat' examiner and the national examine ---------S--7,--- =, :. = =, >-~----~-