Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-12-18

Chicago, Dec. 1s.-Au officers and
directors Of the Chicago National
have resigned and their places were
taken by men selected by the Clearing
House Association.
Chicago, Dec 1sAction has been
taken by Comptroller OF the Currency
F.idgely. that will compel the Chicago
National and Home Savings banks
and the Equitable Trust Company,
dominated by John r Walsh Of this
city, to wind up their affairs. Other
national banks of the city have come
TO the rescue and It is declared on
the authority Of the clearing house
association, the comptroller and also
by. the officers Of the Chicago National
bank, that not single depositor will
lose q cent The difficulties Of the
three banks, which are essentially
branches Of the same institution, are
attributed by the comptroller to large
loans made by the Chicago National
Bank to railroad coal mining and
other private enterprises controlled by
Walsh. N
Loans TO Walsh.
Some time ago, the comptroller
Ncalled the attention Of, the officers Of
the bank to 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 rectifed, but no
action satisfactory to the comptroller
was taken. Three days ago he came
to Chicago for the purpose Of making
an investigation into the affairs Of the
three banks, and found them in such
condition that he Judged immediate
action to be necessary.
Other Banks Notifie3.
The officials Of the different Chi
caeo banks were told Of the situation
and q hurried call was sent out for a
meeting Of the representatives of the
Chicago Clearing House Association,
and officers of the city banks. The
meeting was called to order at o.
clock yesterday afternoon, and was
In continuous session until o'clock
this morning.
Big Deposits.
A careful canvass Of the situation
revealed the Chicago National Bank
had deposits to the amount $16,000,0o0,
the Home Savings had savings de-
posits of $4,OOO,oOO divided among 81
900 depositors The liabilities of the
two banks, and Of the Equitable Trust
were roughly estimated at $26,000,o00.
The assets Of the three institutions
made about $2O,O0O,o00 Of this amount,
and the directors and officials Of the
Chicago National Bank came to the
N@nt with securities amounting to
apout $4,000, 900 more This left de-
lficit of about $3,0oo,oo0 to be. faced,
and the Chicago banks represented at
the meeting declared at once they
would meet the situation and care for
the deficit II it proved necessary to
advance any more than $3,00o,O00 to
meet all demands, the banks pledged
themselves to make up the amount,
whatever it might be. It was also arr
ranged, in addition to winding up the
affairs Of the three institutions. that
the allied bankers should take all of
the Walsh private enterprises inslud-
ing coal mines. railroads and stone
auarries.
RidssIy's Statement.
At the close of the meeting Comp
troIler Ridgsly issued tho following
statement:
..The action Of the clearing house
banks in coming to the aid Of the
insolvent institutions has relieved
q most critical situation, which, il
1t had not been taken promptly in
hand, might have led to very seri-
Gus consequences, not only in Chi
caRo but elsewhere. The action Of
the clearing house banks makes It
absolutely certain all creditors Of
the three institutions will receive
their money Immediately. and
should thus relieve any apprehen-
sion ON the part Of the public in re-
gard to the financial troubles In
Chicago. The critical situation in
which these three concerns have
been placed has been due to large
loans made to railroad, coal min
ing and Other enterprises, owned
and controlled by Walsh. This
again smphasises the danger Of