Daily press. [volume] (Newport News, Va.) 1896-current, 1905-12-19
Three Of The City's Largest In
situations Are Forced 10
Close Their Doors.
DEPGS|T0RS TO Be PAID IN FULL
John r. Walsh, Who Controlled Them,
Borrowed Millions on Security Said
TO Be Worth Only Half Of It's Face
VaIuc-?anic AYcrted by Action of
Clearing Hcuac.
(Ry Associated Presn.l

CHICAGO. Dec. lS.-Thrce Of the
largest financial institutions In the
West, the Chicago National Bank the
Home Savings Banl; and the Euuita.
BILE TrnsL. Company. all of them con-
trolled by John Il. Walsh, OF Chicago,
and in great measure owned by him,
suspended operations today. Their
affairs will be liqudated rs rapidly as
possible and they will 30 ont Of bust
ness
Mr.. Walsh, who was the president
Of the Chicago National Bank. aud OF
the Equitable Trust Company. and all
tho other officers and all the directors
OF tho Chicago National Dauk have ~.
signed.
Bank Examiner in Charge.
National Bank Examiner c. II. Dos.
worth has succeeded Mr.. Walsh at tho
head of the Chicago National Bank.
ana the places Of the directors have
been filled by men appointed by the
Chicago clearing house.
Back or the new management stand
the. allied banks Of Chicago, which
have pledged their resources that
every doposito- shall be paid TO the
last cent, ans. that no customer or auy
Que Of the three institutions shall lose
anything by reason OF the suspension.
THIS action prevented Il disastrous fl.
nancial panic.
AS IL was, the only effect OH the
financial world Of Chicago was the dc.
cline in the stock exchange OF 2l.2 IN
tho price Of National biscuit common
stock. The National biscuit Company
has employed the Equitable Trust as
'r1nsIcr agent, and had, besides deal
!,
nut Ii is not affected by the failure.
The closing OF the two banls'had the
effect also of shutting of ali demand
on tho local exchange for bank. stocks.
none of them being purchased.
Walsh Enterprises Has tho Money.
Tho immediate cause of the collapse
OF tho institutions controlled by Mt
Walsh It's said 20 be the large amount
OF money which they have lent To yari.
Gus private enterprises Of his. notably
the Southern Indiana Railway and the
Bedford Quarres Company, cf Indi
ana.
Mr.. Walsh says tina, IL lie could
have had little more time anu becu
left untrammclcd in fIh operations he
could have navcd his banks, ant, made
enormous profits for himself and his
associates. lie bases this statement
on his estimate Of the value Of thc
honda OF the Southern Indiana Rail.
road Company
Assets Not So Valuable.
The liabilities of the three institu-
lions are estimated in the aggregate
at $2G,000,010. Against this amount
the banks and the trust company have
resources that are, on q conservative
estimate. worth slG000000. The
bonds OF the Southern Indiana Rail.
road Company are estimated by Mr..
walsh at $16,00O,00n. They arc con.
siuered by the comptroller, the State
auditor AMI the clearing house com.
mittee to be worth little more than
half that SUN.
Their value is Il matter TO he deter.
mined in the future. and the presi-
dents OF the local banks admit that If
the estimate of Mr.. Walsh Is found to
be correct the two banks and the
trust company Will not only pay all OF
their debts, but leave surplus be.
sides.
Walsh Gives Up Everything.
Tho directors OF the two banks. as
we'll as Mr.. Walsh, who has turned all
OF ms private property as well as that
standing In the name of Nfrs Walsh,
have pledged real estate and securi-
ties valued at $5,0O0,OOO. making a to.
tai In assets Of 500 100000 estimating
tue ;. railroad bonds. at $S,00O,000
against $2G, 100000 liabilities.
For some time there has been n DIFF
ference OF opinion between the OH.
GERS Of the Chicago National Bank and
Comptroller Itidgely regarding the
method OF conducting the affairs Of
the bank. Tho comptroller took ex.
ception to the large loans made by the
bank 10 private enterprises Of Nir
Walsh and declared that @ portion OF
them must be called in. Assurances
were given, the comptroller deciarae,
that this woult be done, but the prom.
Uses were not kept.
y. New York GlvcS tho Clue.
Finally the incentive to a close
i6crutlny Of the affairs Of the Chicago
National and the Home Savings banks
was given by banker in New York.
Who had been requested to take part
in, a syndicate to furnish loan Of &C..
100000 to Mfr. Walsh for further ex.