Albuquerque evening citizen. [volume] (Albuquerque, N.M.) 1905-1907, 1905-12-18
Astounding News From Three Chicago Institutions
Which Comptroller Orders Into Liquidation and
Which Was Begun This Morning.
OTHER BANKS TO RESCUE AND DEPONTORS SAFE
Had Loaned Walsh More Than Comptroller Would Stand
FOr--PrOduCed FURRY in The New
York Stock Market

Chicago, Dec. 1S.-Action has been
taken by the comptroller of the cur
rency, VIM. b. Ridgley, which will
compel three large institutions. the
Chicago National bank, the Home
Savings bank and the Equitable Trust
company, dominated by John H.
Walsh. of this city. to wind up their
affairs.
Clearing House to Rescue.
Other national banks of the city
have come to the rescue, and it is
declared on the authority of the
Clearing House association, the comp
troller and also the officers OF the
Chicago National bank, that not a
single depositor will lose a cent.
The difficulties of the three insti-
tutions the last two of which are
practically branches of the other in
stitution, are attributed by the comp
troller of the currency to large loans
made by the Chicago National to rail-
road. coal mining and other private
enterprises controlled by Walsh.
Walsh Borrowed too Much.
Some time ago the comptroller call
ed attention of the officers of the bank
to the fact that they were making
loans to those enterprises of Walsh's
which in his opinion wei e too large
for the safety of the institution. Re-
peated promises were made that the
situation should be rectlfied, but no
action satisfactory to the comptroller
was taken.
Three days ago the comptroller
came to Chicago for the purpose OF
! making an investigation into the at
| fairs of the three banks and FOUND
them in such condition that he judged
| immediate action necessary. Officers
| of different Chicago banks were told
of the situation and a hurried call was
sent out for a meeting of represen-
tatives of the Chicago Clearing House
association, as well as OF the officers
of the city banks. The meeting was
! called to order in the office of Presi-
dent Forgan of the First National
bank at o'clock yesterday afternoon
and was continued until 3 o'clock this
morning.
Deficit Six Millions.
A careful canvass of the situation
revealed that the Chicago National
had deposits amounting to Sl6,0O0,OO0
the Home Savings bank Of $4,000,00O
while the liabilities of the two banks
with those of the Equitable Trust
company, were roughly estimated al
$26, 600 900, and the assets at $4,000,
900. This deficit will be taken care
of. one half by the officers OF the Chi
cago National. and one half by the
banks represented at the meeting.
What Caused the Trouble.
The enterprises which are generally
credited with being the indirect cause
of the financial troubles of Mr. Walsh
are the Bedford Quarries company, OF
Indiana, and the Southern Indiana
railroad, which was constructed by
Walsh for the purpose Of getting tc
market stone from his quarries. He
was unable to get a Chicago entrance
for his rtalroad and was unsuccess-
| ful in his efforts to sell to the Penn
sylvania road.
In addition to these two enterprises
which he practically owns, Walsh Is
a heavy stockholder in the Akron
Ohio, gas company, the Illinois
Southern railroad company, Rand
| McNally & Co., the Southern Indiana
Express, and half score of gas, elec-
trio lighting and coal mining COM
panies.
Met the Run Promptly.
To the public at large, which wai
ont acquainted with the magnitude o
/ Walsh's enterprise, the news of an!
/ difficulties surrounding his banks
/ came as a tremendous surprise TIVE
hours before the time for opening the
I bank a large crowd gathered IN
front of the Chicago National and tn,
| Home Savings bank. Inside the banks
| ample provision had been made fol
. the impending run, the money hav
/ ing been laid out In large piles and