Omaha daily bee., 1905-12-19
WALSH BANKS QUIT
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all depositors would be paid in full by the
other banks:
The action of the Chicago clearing mouse
banks In coming to the aud of toe Chicago
National bank. the Home Savings bank
and the Equitable Trust company has
relieved a most critical situation, which
II IL had not been taken promptly in hand,
might have led to very serious cousc-
quenCeS, not only In Chicago, but else
wnerc. The action OF the clearing house
banks makes 1t absolutely certain that all
the creditors of the three institutions will
should thus relieve any apprehension ON
the part of the pubic in regard to I'm,
anCial troubles in Chicago. The critical
situation in which these three concerns
have been placed has teen due to the large
loans maze to the railroad, coal mining
and other CuterDrises owned and con-
trolled by John II. Walsh. This again
emphasizes the danger of managing officers
of banks Interested In outside Institutions
requiring large amounts of money. The
comptrorr's Office has for some time
been criuczng the Chicago National bank
and calling upon its officers and directors
TO reduce the amount of these loans and
the investments in bonds of MI. Walsh 5
corporations.
In spite of the repeated promises that
this should be done these items have been
continued in the bank aud in order to pre-
vent further enCruachment 1t was neCess-
sary for the comptroller to take radical
action. The comptrollers Office has for
some time been endcaVorng to make an
examination of the Chicago National bank.
simultaneously with an examination of the
state institutions by the state examiner,
but was not able TO bring this about until
few days ago. The result of these ex-
aminatiOns revealed such "A serious cOndi-
ton that II was necessary to take ltnme-
diate action. The comptroller isiephoned
from Washington instructing Bank Exam
liner Bosworth TO bring the matter at once
to the attention of the clearing house com
mittee and lett Tor Chicago to be on hand
to personally take whatever action was
necessary the arrival the
troller in Chicago conference was imme-
diately had with the state authorities and
the clearing house committee, which con-
tinued from 10 o'clock Sunday morning
until O'Clock Monday morning. In ad-
dition to the clearing house committee
representatives of all the clearing house
| banks were called into the conference
| about o'clock Sunday evening. The
comptroller feels great credit IL due. not
| 20 all the other clearing house banks FOR
| the prompt, vigorous action and broad
minded spirit shown in meeting an emer-
gency.
Clearing House Statement.
The following statement was issued by
| the members of the Chicago clearing
/ house:
The Chicago National bank, the Home
| Savings bank and the Equitable Trust
eompanH' when h@ie been h I9ntWTSt ats5
| and his associates, have concluded to
| wind up their ailairs and quit business IN
| lnO CITY Oh lineage. RlltI d lIlOI pu6l anu
| careful examination of their AFFAIRS by the
| Chicago clearing house banks, 1t is stated
| that all of the dGpositors OF these tnstltu-
| lions Will be paid in run upon demand al
| the Chicago clearing house banks, they
| having piedgcd themselves, mus puttins
| all the resources VI the Chicago hanks be-
| hind the depOsitors OF these three insttu-
! lions.
| The difficulty with the institutions has
! oeen that tneir investments have been
! made in assets connected with the railway
and coal enterprises of John L. Walsh.
! Those assets are not Immediately available
| to meet depostors ana have been taken
| over ON terms which VIII enable the three
| institutions to pay their depositors in fhll
Mr., Rnsiey, comptroller OF GurrenGy'
| partmcnt at Springfield were seen and
| expressed themselves as greatly pleased
| at the action of<the Chicago banks and
| stated that it reflected great credit upon
the associated banks OF Chicago when
again indicated their ability to meet an!
emergency in IA manner entirely satisiac-
tory to the public.
The officers of the Chicago National bank
| were:
President John r. Walsh: vice president
Fred NJ Blount. The directors Were: JohT
r. Walsh, +. NJ. Blount, Jonn NJ. Smy!h
! William Best, 6. *. q. Billings, Maurice
Rosenfield and Andrew McNally.
The deposits in the bank were $l4, $4,000
and there is due to other banks s2,NSS,sSl.
The officers of the Home Savings bank
were:
President, William ]. Onahan vice pres
dent Maurice Resented. The directors
were: c. Is. G. Billings, Maurice Rosen
field John NJ. Smyth, W. J. Onahan, VII
liam Best, John r. Walsh.
The officers and directors Of the Equitable
Trust company were practically the SANE
as those of the Home Savings bank, Will
the exception of MIR Walsh, who was presi
dent in place of Mr.. Onahan. The Hom
Savings hank had savings deposits OF 81,
5eo, 900 The Equitable Trust company Ina
outstanding certificates of deposit and ac
| crued interest amounting to $,2Ss.U0 am
deposits in trust valued al S2,096,6OO. Their
| is no question of the availa ability of any o
the assets of the two latter institutions
and only doubt as to the value of tn
, bonds of the Southern Indiana railroa
among the securities held by the Chicug
| National bank.
Suspension Causes Excitement
, Whatever might have been known in tn
= inner fine ncial circles of the condition o
. the Chicago National bank, it was by tn
public supposed to be one of the stronges
Z and most conservatively managed institu
tions in the west. Excitement ran hig
: | therefore when il was announced in tn
extra editions of the morning papers tina
' the banks were involved. The statemer
I of Comptroller Ridgey and the publishe
t announcement of the Chicago clearin
l. house to the effect that the other banks {