Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1905-12-26
THREE BANKS QUIT.
CHICAGO INSTITUTIONS OF JOHN
r. WALSH GO OUT.
Chicago National, Equitable Trust
Company and Home Savings Bank
Close Business-Two Banks Alone
Carry $22,50o, 600 of Deposits.

the Equitable Trust Company, all of
Chicago, was announced at $3.50
O'Clock Monday morning by represent
atives of the Chicago Clearing House
Association, after a session lasting
eighteen hours. James B. Forgan,
President of the First National Bank,
as head of the clearing house commit
tee of the Chicago Associated banks,
gave forth the statement. The assets
of these institutions, it was asserted,
were involved in coal and railway
properties of John r. Walsh, Presi-
dent of the Chicago National Bank.
The statement was issued in the office
OF the First National Bank. 1t is as
follows:
The citizens of Chicago will I'M
doubtedly be surprised to learn that
the Chicago National Bank, the Home
Savings Bank, and the Equitable
Trust Company, which have been con-
trolled, managed, and Differed by
John r. Walsh and his associates
have concluded to wind up their af
fairs and quit business in the city of
Chicago, but they will be gratified to
learn that after a thorough and care
full examination of their affairs by the
Chicago Clearing House banks that
all of the depositorS of these inStitu
tons will be pand in full upon de,
mand, the Chicago clearing house
banks having pledged themselves to
this result, thus putting all the re-
sources of the Chicago banks behind
the depositors of these three institu-
tons. The difficulty with the institu-
tons has been that their investments
have been made in assets connected
with the railway and coal enterprises
of John r. Walsh These assets were
not Immediately available to meet de-
posits in full"
The meeting of the Chicago Clearing
House Association began at noon Sun
day. Notices were sent members of the
board by Mr.. Forgan after the condition
Of the banks and the trust company had
been learned. Clerks were notified and
fifty or more with their stenographers
hurried to the First National bank. Be
hind closed doors the Clearing House
Association began its work of finding a
way that might enable them to ride the
financial sea in safety.
That a panic would be likely to fol-
low was the first thought of the COM
mittee. Resolutions were adopted and
heads of other banks pledged themselves
to give assistance. The amount involv-
ed in the failure would not be discussed
by the committee members
In addition to the formal statement
of the failure, the following announce
ment was made, signed by the clearing
house committee of the Chicago assoc
lated banks:
ITO the Public: Depositors of the Chi
cago National bank, the Home Savings
bank, and the Equitable Trust Company
are respectfully advised that their de-
posits will be paid in full upon demand.
Syndicate Takes Control.
A syndicate was formed during the
day to take over the business of the
three embarrassed financial institutions
As the first step all the old directors of
Walsh resigning as president, and &
complete reorganization was effected
The bank will be conducted by National;
Bank Examiner G. H Bosworth. who
was elected president in place of Mr.
Walsh. Under the direction of the fed
eral official the three concerns will 60
into liquidation as soon as possible, after
which their business will be distributed
among the banks making up the syndi-
cate. Revelations were made of opera.
tons in connection with the bonds of the
Southern Indiana railroad, Mr. Walsh's
pet enterprise. These operations, it is
said, led directly to the smash.
Twenty-siX millions of dollars in de-
| posits of public funds and private ac-
counts are involved in the crash, which,
| through the prompt action of the con-
sentative banking interests of Chicago,
| claims for its victims only Mr.. Walsh,
multi-millionaire fnancier and railroad
magnate, and his immediate associate
/ in business,
Greatest Failure on Record.
Not in all the financial history of this
| financial country was there ever such a
| trouble-one involving 50 much money
! and that has emerged with so little dis
| aster to the community at large. There
! never WAS bank that quit before hay
! ing such colossal deposits. the three
| Walsh concerns carrying upwards Of
| $4,000 600. Nearly $6,00000O was paid
| out to the frantic depoSitors on the day
! of the collapse. That Chicago escaped
| n panic; that the financial revolutions
which took place in Il day did not shake
! and shock every center of con .nerce on
| the globe was due to the heroic efforts
| of the other Chicago bankers. 1T a mo-
ment more critical than at aav period
| since the memorable black Friday and
| the panic of 1895, they came to the re-
| lief of Mr.. Walsh's concerns. They not
only saved millions of dollars for Chi
| cago depositors, but they prevented a
very earthquake. which. it is declared
| inevitably would have followed had
| Walsh's banks gone straight TO the wall.
Great crowds of depostors besieged
| the Chicago National 1ud Home Savings
| banks Tuesday. Outside the building in
Monroe street, housing the two in
stitutions. gathered anxious persons. the
| number reaching 1000 at $50 and grow
| ing steadily after that hour. Two long
lines of persons with bank books formed
on either side of the entrance Of the biz
granite building where national and State
officials were forcing liquidation of John
r. Walsh's financial enterprises Many
of those assembled were woraen. who
had come to withdraw the family funds
while their husbands were unable to
leave their work or were out of the city.
Telegraphic Brevities.
Edward Lovett. former sealer of
weights and measures of Trenton. \. =,