Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1905-12-22
THREE BANKS QUIT.
CHICAGO INSTITUTIONS OF John
r. WALSH Go OUT.
'nieaso National, Equitable Tr.xt
company and Home Savings Bank
Geese Businesx-T,vo Rank. A,a
larry $22,oO0,0oo of Deposits.

A'oilA' the Home Savings Bank. and
the Equitable Trust ComDanv all of
onlcaso' was announced at 800
0 clock Monday morning by represent
alVes of the Chicago Clearing House
AS9oclation, after a session lasting
eighteen hours James B. Forgan.
PRESIDENT of the First National Bank.
as mead of the clearing house commit
zee OF the Chicago Associated banks,
gave forth the statement The asserts
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:
Inc citizens of Chicago will I'M
doubtedly be surprised to learn that
the chicago National Bank, the Home
savings Bank, and the Equitable
Iru%. Company, which have been con
trolled, managed, and Differed by
John K. Walsh and his associates
nave concluded to wind up their af-
falrs and quit business in the city of
Chicago, but they will be gratified to
learn that after 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-
lions 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 it's 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
do Of al al Coly
to give assistance The amount involy-
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-
posts 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
the Chicago National bank retired Mr.
Walsh resgning as president, and
complete reorganization was effected
The bank will be conducted by National
Bank Examiner G. FL. BosWorth. who
was elected president in place of Mr.
Walsh. Under the direction OF the ted
eral official the three concerns VIII go
into liquidation as soon as possible, aftef
which their business will be distributed
among the banks making up the syndl-
cate. Revelations were made OF opera.
tions in connection with the bonds OF the
Southern Indiana railroad, Mr.. Walsh's
net enterprise These operations, 1t is
said, led directly to the smash.
Twenty-six millions of dollars in DEF
nosits of public funds and private ac-
counts are involved in the crash, winch,
through the prompt action OF the con-
sorvatiye banking interests of Chicago,
claims for its victims only Mr.. Walsh,
multi-millionaire fnancier and railroad
maqnate. and his immediate associates
in business.
greatest Failure on Record.
Not in all the financial history of this
financial country was there ever such
trouble-one involving so much money
ond that has emerged with so little dls
oster TO the community at large. Ihere
novar was a bank that quit before hay-
ing such colossal deposits, the three
Walsh concerns carrying upwards OF
SOC 900. 900. Nearly $6,000,000 was pald
ont 70 the frantic depositors on the day
If tbe collapse. That Chicago escaped
a panic; that the financial revolutions n,
which took place in a day did not shake
and shock every center of commerce on
tho globe was due to the heroic efforts
If the other Chicago bankers. At mo,
nent more critical than at any PERIOD
since the memorable black Friday anu
the panic of 1895. they came TO the re.
lief of Mr. Walsh's concerns. Ihey no'
only saved millions OF dollars Ior IN. !
900 denositors, but they prevented a
1"s 4t,,ko which it is declared,