The semi-weekly messenger., 1905-12-22

1
tiated by the bonds o; Mr.. WALSH
railroads, the Southern Indiana, he
Chicago Southern. the latter an exten
sion of the Southern Indiana, and n
wisconsin and Michigan.
! When the examiners had conclu.,to
their report Mr. Walsh asked for tine
saying that he could raise the none
to straighten ouG everything He va
mot successful in this as he hoped
lbe. When Comptroller Ridgely was
Uniformed of the situation. he came a
once to Chicago.
Comptroller Rtfgely called a meet
ing OF the members of the Chicag
clearing house and informed them of
situation The meeting was held
the office of the president of the First
National Bank, and continued from
Io'clock Sunday afternoon until 5
O'Clock this morning. 1t was then an
Inounced by the comptroller that III
banks had suspended, and that all
ldepositors would be paid in full b
1.-THE other banks Of the city.
| A statement to the same effect VIZ
ISSUED by the members of the clearin
house. ~
| Mr.. Ridgely's statement says:
| THE action Of the clearing houS
banks makes IL absolutely certain that
all the creditors of the three inStitu
ltiOns will receive their money imme
Idiately, and should thus relieve an
apprehension or the part of the pub
lie in regard 70 financial troubles
IChicagO. The critical situation IN
which these three concerns have bee
lplaced has been due to the large loan
made to the railroad, coal mines AMI
Othr enterprises owned and cOntrOl'e
by John r. Walsh. This again empha
sizes the danger of the managing Off
cers of banks being interested in O"t
ISide institutions requiring Ia
amounts of money The cOmptrOlle:"
lOffice has for soI-e time been crlticlZ
ling the condition Of the Chicago Nat
iOnal Bank and calling uponsitsA Office
land directors to reduce the amount of
these loans and the investments in tn
bonds of Mr.. Walsh's corporations. l
lspite Of repeated promises that ch1
lShOuld be done these items have Oae
continued in the bank and in order tOl
lprevent further encrOachments 1t Wa
necessary for the comptroller to take
radical action. The cOmptrOller's of
Ace has for some time been endeavCri
ling to make al examination OF m
Chicago National Bank simultaneous
with an examination of the state 1nStI
ltiOns by the state bank examiner, but
Twas not able to bring this about until
Ia few days ago. The result of thea
examinations revealed such seriousI
icOndition that IL was necessary to TAX
Immediate action "
The deposits in the Chicago National
Bank were S14 .4S},OOO, and there is due
Ito other banks $2.O3S.So1.
The Home Savings Bank had saw
lings deposits of $3.56O.OOO. The EQuit-
Iable Trust Company had outstanding
certificates of deposit, and accrued in
lterest amounting to $2.2S9.OOO. and de-
IpOsits in trust valued at S2.O966 600.
There is no question of the availability
Iof any of the assets of the two latter
institutions and only a doubt as to the
value Of the bonds of the Southern In
Idiana Railroad among the securities
held by the Chicago National bank.
| The Chicago Bank was publicly sup
lDOsed to be one of the strongest and
most conservatively managed institu
Itions in the west. Excitement ram
Ihigh when it was announced i'll extra
editions Of morning papers that the
|of Comptroller Ridgely and the pub
lliShed announcement of the Chicago
clearing house to the effect that the
lOther banks Of the city had pledged
THAT I'LL depositors would be paid in
full on demand relieved the tension.
however, and many other balances
were drawn out by deposit in other,
tbanks, passing through the clearing
lhOuse in the ordinary way.
Savings depositors of the Home
jSavings Bank did not take the situa-
ton as calmly as did the customers of
the National Bank. and by the time
Idoors were open there was a line of
800 men waiting to withdraw accounts
Ample provision had been made to
meet the run and all accounts wereI
iiQuidated as soon as presented. With
in al hour after the opening of the
Ibank, the excitement had subsided and
ialthough a line of depositors stood I'M
lfrOnt of the bank until the close, there
twas not the slightest disturbance
THE paying of depositors will continue
las long as claims are presented and
the statement is made on the authori-
Ity of the allied banks Of the city thatl
There is ample money to pay every
thing.
Chicago financiers place all of N1r
IWalsh's troubles at the door of tho
ISOuthern Indiana Railroad. \ numberI
Iof years ago he purchased the Bedford
IStone Quarries in Indiana. The ship
lping outlet for the quarries was not as
good as he desired, and he soon became
involved in arguments with the MonOnI
and the Chicago and Eastern Illinois
railroads declaring that they were
charging him Il rate of freight thatI
was arbitrarily. high. He constructed
the Southern Indiana road and secured
IAN outlet for his quarry products to
,Terre Haute, Ind. where he came n
Icontact with the Chicago and EasterDI
Illinois railroad for transportation
north and south.
Around the Chicago National Bank
There was no disturbance during the
lday. There was a run on the bank,
but it was of the, quiet order. Busi-
IaI Of +ha IN,