Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1905-12-18
Chicago National, Home
Savings Bank, Equita-
BILE Trust Co.
DEBTS $26,OOO,O 900
Clearing House Association
Gives Assurance No De-
p0sit0rs Shall Lose.


taken by Controller RideeIy that will
compel the Chicago National and Homo
Savings banks and Equitable Trust
company, dominated by John r. Walsh,
of this city, to wind up their affairs.
NO ONE WILL LOSE.
Other national banks of the city have
come to the rescue and it is declared
on the authority of the Clearing House
association, the controller and also bJ
the officers of the Chicago National
bank that not a single depositor will
lose a cent.
LOANED TOO LARGELY.
The difficulty of the three banks.
which are practically branches of the
same institution, are attributed by the
controller to large loans made by the
Chicago National bank to railroad,
coal mining and other private enter
prises controlled by Walsh.
Had Been Warned.
Some time ago. the controller called
the attention of the officers of the
bank 10 the fact that they were making
loans TO these enterprises of Walsh.
which in his opinion were too large for
the safety of the institution. Repeated
promises were made that the situation
should be rectified. but no action salts
factory to the controller was taken.
Came i'm Person.
Three days ago he came to Chicago
for the purpose of making an investi
CATION into the affairs of the three
banks. and found them in such condi-
ton, he judged immediate action TO be
necessary Officials of the different
Chicago banks were told OF the situa
tion. and a hurried call was sent out
for a meeting of the Chicago Clearing
House association and officers of the
city banks. The meeting was called
TO order at 3 yesterday afternoon. and
was in continuous session until > this |
Total Liabilities S26,O0O.OOO- |
\ careful investigation revealed that
the Chicago National bank had depo- |
sits to the amount of $4,000, 900 and |
the Home Savings had savings deposits |
of $4,000 900. divided among 5000 de
positors. The liabilities of the two
banks and of the Equitable Trust were |
estimated at $4,000. 900.
Assets S20.ooO.OOO.
The assets of the three institutions |
made up about S20.000,000 of this
amount. and directors and officials of
the Chicago National bank came TO the |
front with securities amounting TO
about $3.000,000 more. This left de
ficit of about 5000 900 more To be fac |
ed and Chicago banks represented at |
the meeting declared at once they |
would meet the situation and care for |
the deficit.
Make Up Balance.
If il proved necessary to advance any |
more than 81 900. 900 TO meet all de- |
mands. the banks pledged themselves |
TO make up the amount, whatever il |
might be. IL was also arranged in |
addition TO winding up the affairs of
the three institutions. the allied bank
ers should take all of Walsh's private |
including the coal mines, |
railroad. and stone 9uarries.
Organized I'm 1881.
The Chicago National bank was or
ganized in November. 1881. and has |
a capital of 81 .OO0 600. Its resources. |
according TO the latest report made to |
the controller are S2l 600, ,0oo. of which |
nearly siI 600. .0Oo are loans and dis
counts. and of which si,0e0.o00 is cash |
On hand. The liabilities include nearly |
st4 .0oo 600 i'm individual deposits and |
s zoe oun due to other banks.
Home savings Bnnk.
The Home Savings bank was organ |
ized in 1867 with a capital of SlO0.0 |
A late report shows the resources are |
81 .2S2 600. of which s3.7S2 900 is report |
ed as being held in municipal railroads |
and other bonds. The savings depo- |
sits aggregate S5.9s3.o00.
The Trust Company.
The Equitable Trust company was |
chartered in 1887. with a capital OF |
$500. 900. The resources are S4.612.Q 600. |
and liabilities include S2.7G7 sos. of
which amount si54.0o0 are deposits in
trust. and s5O0.ee0 in certificates of
Dc posit-