The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1905-12-21
THREE FAIL BUT NO Loss.
Chicago National and Home Saw
ings Banks, and Equitable
Trust Closed.
CLEARING HOUSE ACTS.
Takes Over Assets of John R. Walsh,
Whose Outside interests Involved
Institutions Under Him.

CHICAGO, ILL.,, Dec. disclosing of
the Chicago National bank, the Home
Savings bank and the Equitable Trust
company, all of Chicago, was announced
at $3.50 o'clock this morning by reprcsen-
tatives of the Chicago Clearing House
association after session lasting eight
cen hours.
Every dollar asked of the institutions
by depositors was paid today. Early ex-
element had subsidized by II o'clock,
when there was no evidence at all, out
wardly, that there had been failure.
Ridgley Makes Statement.
The following statement was issued by
Comptroller Ridgley at II 40 a. IN. to-
day:
"A misunderstanding seems to exist as
to what has happened to the Chica go
National bank. This bank has not failed
or closed its door. 1t has been embar-
raised by the investment of large
amount OF its assets in unavailable Sc
curities, but the banks of Chicago have
come to the relief and have guaranteed
the payment in full on demand, of all
the creditors of the Chicago National
BANK. The bank is open for business, as
usual today. with these guarantees be-
hlhd 1t, that it will meet all of its OBJ
]. r. Walsh Involved
James b. Forgan, president of the
First National bank, as head of the
clearing house committee of the Chicago
Associated Banks gave the statement
announcing the closings.
The assets of these institutions, it was
asserted, were involved in coal and rail
way properties Of John r. Walsh, preSi-
dent of the Chicago National bank.
Walsh was not at the meeting
Depositors will be protected in full by
banks of the Chicago Clearing House
association, said the statement.
At noon it was announced that all the
officers and directors of the Chicago Ma
tional bank had resigned and their places
taken by men selected by the Clearing
House association.
Mrs. Walsh to the Rescue.
In order to make secure as far as pos
sible, all claims against the bank, Mr..
Walsh today turned over to the officials
of the clearing house all of his property.
Mrs. Walsh also made over to the clear
ing house all the property standing in
her name. 1t is expected there will be
enoHgh of this to make the amount to be
paid out by the other banks of the city
comparatively small, when the accounts
are fully balanced.
Mr., Walsh left his home about noon
and came direct to the presidents Office
of the Chicago National bank. where he
was coseted for time with the clearing
house committee. He protested, saying
that he could strdighten out his affairs
without loss if he was left untrammeled
lie was overruled in this.
Bankers to the Rescue.
Officials of the different Chicago banks
were told of the situation and Il hurried
call was sent out for n meeting of rep
rcspntatyes of the Chicago Clearing
House association as we'll as the officers
Of the city banks, The meeting was
called to order in the office of President
Forcau of the First National bank at 3
O'Clock Sunday afternoon and was in
continuous session until > O'Clock this
morning.
4 careful canvas Of the situation re-
veaIci thar the Chicago National bank
had deposits to the amount of $1,000
600, the Home Savings bank had saw
ings deposits to the extent of S4,OO0,OO0
divided among about 5000 depoSitors.
The liabilities Of the two banks and of
the Equitable Trust company were esti-
mated at S2G,00OOO0
Millions Given to Assist.
The assets of the three institutions
madr UP about S2O,OOO.UOD Of this
amount ana the directors and officials
Of the Chicago National bank came 10
the front with securities amounting to
about S3GOO,OOU more. This left de-
felt Of about S3,00O,OOO to be faced ana
the Chicago banks represented at the
meeting declared at once that they would
meet the situation and care for the
deficit,
Good for Any Amount
If il proved necessary to advance any