The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-12-19
TWO BANKS AND A TRUST
COMPANY ON THE ROCKS
Financial Enterprises of John R. Walsh of Chicago
Come 10 Grief
Clearing House Association in Charge of the Wrecked In.
stitutiOns. and DepOsitOrs Will Be Paid
Their Money on Demand

on Demand.
1t was then anuouaced by the comp
uolier in the following statement that
the banks had practically suspended
and that all depoSitors would be paid
In fun by tho other banks Of the city.
RidasIey's Statement,
"a misunderstanding seemed 10
exist as 10 what has happened 10 the
Chicaso National bank This bank
has not 'Illed on closed its doors IL
has ben embarrassed by the invest
ment Of a large amount Of its assets
In unavailable securities, but the
banks of Chicago have come to the re-
lief and have guaranteed the payment
n fun Oh demand of an the creditors
OF the Chicago National bank. The
bank is open for business as usual To-
gay. with these guarantees behind it
that il viii meet all It's obligations and
pay every dollar at once. Signed.
WILLIAM h. RIDGLY.
Comptroller OF the Currency"
The following statement was issued
by the members of the clearing house:
To the Public-DepositOrs of the
Chicago National bank, the Home
Savings bank. and the Equitable
Trust company. are respectfully ad-
vtsed that their deposits Will be paid
IN full upon demand"
Officers Of the Banks.
The officers Of the Chicago National
bank We're: President. John r. Walsh
Vice president +. NJ. BlOunt; directors,
John r. Walsh, F. NJ. Blount, John
n smith. William Best, q. X G.. Bill
lings, Maurice Resented. The depos-
its in the bank were sli4S3, 900, and
there is due 10 other banks, S203S, SOL
The officers OF the Home Savings
bank We're: President. William Ona-
han: vice president, Maurice ROsen-
field; directors. c. K. G.. Billings.
Maurice Resented. John NJ. Srnythe
W. J. Ouahan, William Best, John y.
Walsh.
The officers and directors of the
Equitable Trust company were prac-
lcaiiy the same as those Of the Home
Savings bank with the exception of
Mr.. Walsh who was president in place
OF Mr.. Onahan. The Home Savings
bank had savings deposits of IS 500. -
900. The Equitable Trust company
has outstanding certificates of depos-
AIS and accrued interest amounting to
$t,2s9, 000, and deposits il trust valued
at S2,096 soc There is no question of
the availability Of any Of The assets Of
the two latter Institutions and a doubt
as 10 the value al the bonds of the
southern Indiana railroad among
the securities held by the Chicago Ma
tiona! bank
Came as a Surprise.
Whatever might have been known in
the inner financial circles OF The con-
dition OF the Chicago National bank
IT was by the public supposed TO be
one o. the strongest and most con
servaltvely managed institutions III the
west. Excitement ran high, therefore.
when IL was announced ia the extra
editions of the morning papers that the
banks Eera involved The statement
OF Comptroller Ridgely and the pub
lished announcement Of the Chicago
clearing house % The effect that the
other banks of the city had pledged
that all depOsitOTs would be paid in
Tuu on demand. relieved the tension.
however Around the Chicago Nation
m bank there was no disturbance dur
ing the day. There was a run Oh the
bank but II was quiet and orderly.
Men who called at the bank to inquire
into the condition of affairs were told
that they could withdraw their money
at amy time they pleased: that the
bank was open for the transaction Of
all business save that Of taking Ia
money OF making loans. All checks
that We're presented 1T the window OF
the paying teller were promptly paid
Ia cash and many other balances were
drawn out by deposit in other banks.
passing through the clearing house in
the ordinary way
Run on Savings Bank.
Tho savings depositors OF the Home
Savings bank did not take the situation
= gaI".E a. did toe customers Of the
national bank. and by The time the
doors we've thrown open there was a line
Or y5t men waiting % withdraw their
accounts. Ample provision had been
made Z meet the run and all accounts
Wete Apu2t4teu ass soon as presented.
" lihln an hour afte" the opening Of the
BANK the excitement had died almost
completely away and althOugh a line Of
dfposliota stood In front Of the bank
L1l4 the close there was not the slight
est disturbance. The paying off of de-
posters viii continue as long as claims
are present 3D. aud the STA tement is madC
On the authority of allied banks Of the
civ that there is ample money 10 pay
everything
Shortly after noon it was announced
that an OF the officers and directors OF
ne Chicago National bank had rendered
ihelt designations. with che exception Of
~ Is, 6 BILLINGS. VINO is OuJ of thc city
The place OF Ar Walsh vas filled bv
the selection OF Bank Examiner q ri
BosWOrth and the following committee
was selected by the clearing house TO
lct as directors in place of those who
hat signed:
James r.. Forgau, president Of the First
National bank; john Mitchell preSi-
dent OF the Illinois Trust & Savings
bank; Orson smith. president of the
Merchants Loan * Trust company:
James IT, Eckles, president of the Com
neTcial National bank, Byron T.. Smith
president OF the Northern Trust COM
panv: q. K. q. Billings, G. IT, Bor-
worth
Cause of the Collapse.
Local financiers place all Of Mr..
Walsh's troubles at tine door Of the
southern Indiana railroad. a number
Jf wears ago he purchased the Bedford
stone uuarries Ia Indiana. The shiDDing
outlet for the duarries was not 80 good
as he desired. and De soon became in
VOWED ina argument with the MOnOn and
chicago & Eastern Illinois railroads. de-
eiaring that they were charging him a
'ate Of freight that was arbitrarily high
He practically constructed the Southern
indiana rdiirOau, the line Of which lay
near his qudTries. and ultimately secured
ly means OF II an outlet which brought
his quarrics' rrOduCt o. Terre Hauto
Ind. and there again he caue ia con
act with the Eastern Illinois for trans
lortation north and south lie deter
mined % build for his road q terminal
nto Chicago. and bent al his energies
.o ,his end The tight that euSued con-
.nucd through several wears and il was
litter and expensive, especially TO MIR
Walsh A. one time tue capitalists IN
control OF the Chicago & Eastern MI
lois bought Up al OF the coal mines