The Miller sun. (Miller, Hand County, S.D.) 190?-19??, 1905-12-27
THREE BANKS QUIT.
CHICAGO INSTITUTIONS OF JOHN
r. WALSH GO OUT.
Chicago NATIONAL, Equitable Trust
Company ana Home Savings Bank
Close Business--Two Banks Alone
Carry $22,5OO,Oo0 of Deposits.

the Equitable Trust Company, all of
Chicago, was announced at $50
o'clock Monday morning by represent
atives of the Chicago Clearing House
Association, after session lasting
eighteen hours. James b. Forgan,
President of the First National Bank,
as head Of the clearing house commit
tee OF the Chicago Associated banks,
gave forth the statement. The assets
of these institutions, it was asserted,
were involved in coal and railway
properties of John Il. Walsh, Presi-
dent of the Chicago National Bank
The statement was issued in the office
of the First National Bank. 1t is as
follows:
The citizens of Chicago will I'M
doubtedly be surprised to learn that
the Chicago National Bank, the Home
Savings Bank, and the Equitable
Trus Company, which have been con-
trolled, managed, and Differed by
John Il. Walsh and his associates
have concluded to wind up their af-
Chicago, but they will be gratified to
learn that after thorough and care
full examination of their affairs by the
Chicago Clearing House banks that
all of the depositors of these institu-
tons will be pand in full upon de-
mand, the Chicago clearing house
banks having pledged themselves to
this result, thus putting all the re-
sources Of the Chicago banks behind
the depositors of these three institu-
tons. The difficulty with the institu-
lions has been that their investments
have been made in assets connected
with the railway and coal enterprises
of John r. Walsh. These assets were
not Immediately available to meet de-
posts in full"
The meeting of the Chicago Clearing
House Association began at noon Sun
day. Notices were sent members of the
board by Mr.. Forgan after the condition
of the banks and the trust company had
been learned. Clerks were notified and
fifty or more with their stenogra piers
hurried to the First National bank. Be
hlnd closed doors the Clearing House
Association began its work of finding a
way that might enable them to ride the
financial sea in safety.
That a panic would be likely to fol-
low was the first thought of the COM
mittee. Resolutions were adopted and
heads of other banks pledged themselves
to give assistance. The amount involv-
ed in the failure would not be discussed
by the committee members.
In addition to the formal statement
of the failure, the following announce
ment was made, signed by the clearing
house committee of the Chicago assoc
lated banks:
TO the Public: Depositors of the Chi
cago National bank, the Home Savings
bank, and the Equitable Trust Company
are respectfully advised that their de-
posits will be paid in full upon demand"
Syndicate Takes Control.
syndicate was formed during the
day to take over the business of the
three embarrassed financial institutions.
As the first step all the old directors of
the Chicago National bank retired Mr..
Walsh resigning as president, and q
complete reorganization was effected,
The bank will be conducted by National
Bank Examiner G.. H. Bosworth. who
was elected president in place of Mr.
Walsh. Under the direction of the fed
eral official the three concerns will 60
into liquidation as soon as possible. after
which their business win he distributed
among the banks making up the syndi.
cate. Revelations We're made of opera
tons in connection with the bonds of the
Southern Indiana railroad, Mr.. Walsh's
pet enterprise. These operations. it is
said. led directly to the smash
Twenty-six millions of dollars in de,
posits of public funds and private ac-
counts are involved in the crash, which,
through the prompt action of the con
sentative banking interests of Chicago.
claims for its victims only Mr. Walsh.
multi-millionaiIe hnancier and railroad
magnate, and his immediate associates
in business.
reatest Failure on Record.
Not in all the financial history of this
financial country was there ever such
trouble--one involving so much money
and that has emerged with so little dis
aster to the community at large. There
never was bank that quit before hav-
ing such colossal deposits, the three
Walsh concerns carrying upwards of
$26,000000. Nearly 100000 900 was paid
out to the frantic depositors on the day
of the collapse. That Chicago escaped
a panic; that the financial revolutions
which took place in day did not shake
and shock every center of commerce on
tn tba omA
of the other Chicago bankers. At a mo-
ment more critical than at any period
since the memorable black Friday and