The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-18

that it will meet all its obligations
and pay every dollar at once.
-s'William 3. Ridgely,
Controller Of the Currency
Chicago, Dec 1s.-Action has been
taken by the controller Of the currency,
William B. Ridgelxs which has removed
large financial institutions-the Chi
cagO National bank, the Home Savings
bank, and the Equitable Trust COM
pany.
Cooperating with Mr.. Ridgely, the
other national banks of this city have
come to the rescue, and it is declared
on the authority Of the clearing house
association, the controller and also by
the officers of the Chicago National
bank. that not a single deposition will
lose a cent. .- -
At noon it was announced that all the
officers and directors Of the Chicago
National bank had resigned and their
places taken by men selected by the
clearing house association: PRESIDENT
Walsh 8 place vas taken Dy Bank tx
aminer G. H. Bosworth and the places
of the retiring directors were taken by
the following:
J. B. Forgan, president of the First
National bank; Orson B. Smith, presi-
dent Merchants Loan & Trust company;
James II. Eckles, president Of the Com
mercial National bank; Byron L. Smith,
president Of the Northern Trust COM
pany; G. K. G.. Billings and c. FL. Bos-
worth. No successor TO Vice President
Blount was elected.
The officials named above will COM
pose a syndicate which will iquidate
affairs of the bank, and pay all claims
against it, and the Home Savings bank
and the Equitable Trust company.
Walsh Aids in Work.
In order to make secure as far as
! possible all claims against the bank,
officials Of the clearing house, who are
| operating the two banks, all of hia
property. Mrs. Walsh also made over
| to the clearing house all the property
standing in her name. It is expected
that there will be enough of this to
make the amount to be paid out by the
other banks Of the city comparatively
small small when the accounts are fully ball
The difficulties Of the three banks.
which are practically branches of the
same institution, are attributed by the
controller Of the currency to the large
loans made by the Chicago National
bank to the railroad, coal mining, and
! other private enterprises controlled by
Mr.. Walsh.
Warned by Ridgely.
Some time ago the controller called
| the attention of the officers of the bank
| to the fact that they were making loans
to these enterprises of Mr.. Walsh which,
in his opinion, were too large for the
safety of the institution.
/ Repeated promises were made that
! the situation would be rectifed, but
no action satisfactory to the controller
was taken.
Three days ago he came to Chicago
for the purpose Of making an investiga-
tion into the affairs Of the three banks.
and found them in such condition that
he judged immediate action to be neces-
sary.
Some trifing delay had ensued be-
cause Of the inability of Mr.. Ridgely
to meet the officers of the bank and
officials of the state auditors office.
The fact that the Home Savings bank
and the Equitable Trust company are
ence of the latter official necessary.
Other Bankers Called In.
Officials of the different Chicago
banks were told Of the situation and
a, hurried call was sent out for meet
/ ing Of representatives of the Chicago
Clearing House association as well as
the officers of the city banks.
The meeting was called to order in
the office Of President Forgan of the
/ First National bank at 3 o'clock yes
4 terday afternoon and was in contiuu-
/ GUS session until o'clock this morning.
. A careful canvass of the situation
revealed that the Chicago National
bank had deposits to the amount OF
! $l6,O0O,000; the Home Savings bank
/ had savings deposits to the extent of
$4,OOO,000, divided among about 5000
| depositors.
i Owed $26,oo0,oo0.
The liabilities of the two banks and
of the Equitable Trust company were
i roughly estimated at $26,0O6,000.
! The assets of the three institutions
| made up about $20,000,000 of this
amount, and the directors and officials
of the Chicago National bank came to
1 the front with securities amounting to
about So 100000 more.
This left deficit 'of about So, 100000
4 to be faced, and the Chicago banks
i represented at the meeting declared at
once that they would meet the situa-
ton and care for the deficit. If it
proved necessary to advance any more
J than 100000 to meet all demands,
the banks pledged themselves to make
up the amount, whatever it might be.
Must Meet Crisis.
The great difficulty confronting the.
bankers in the meeting was to arrange
legal settlement of the case in the
pitifully short time at their. disposal
before the hour of commencing bust
; ness this morning. 1t was finally ar
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