The semi-weekly messenger., 1905-12-22


SOB 1000 ,0O0-There are Resources
Amounting to About $4,000. 900.
Chicago, December 18.-Three of fh
largest financial institutions in the
wPst, the Chicago National Bank, The
HCme Savings Bunk, and the Equitabl
TIust Company, all of them cont. oil
Ell b. John r. Walsh, of Chicago, .nu
in great measure owned by him, SIS
pended operations today Their affairs
will be liquidated as rapidly as posi-
BILE and they will go out of business.
Mr.. Walsh, VINO was the president o,
of the Chicago ational Bank and rf
the Equitable Trust Company and eli
.the other officers and all the direc.0rs
'of the Chicago National Bank rave
resigned. National Bank Examiner
c. H. BOswor+h has succeeded Mr.
Walsh at the head of the Chicago Ma
jcnal Bank, and the places of the III
rectOrs have been filled by men 40
pointed by the Chicago Clearing House
q Back OF the new management san
the allied banks of Chicago. which
have pledged tnelr resources that eve
ry depOsitor shall be paid to the las1
cent, and that no customer of any On
of the three Insult ItiOns shall lose aEy
thing by reason of the suspension
THIS action prevented a disastrous ii
n4ncial panic. AS it was, the OIL
effect on the financial world of Chica
~ was the decline on a stock exchang
of 2 1-2 in the price of National BIS
cult common stock. The National Bis
cult Company las employed the Enul-
able Trust Company as transfer agent
and had besides dealings with the Chi
cago National Bank, but it is noS af
Affected by the failure in the slightest
i degree. The closing of the two bank
1 had the effect also of shutting Off all
J demand on the LEGAL exchange for oan
stocks none of Them being purchased.
The Immediate cause Of the collaps
of the institutions controlled by Er
Walsh is said to be the large amcuE
of money which they have lent to "a
rious private enterprises of his, meta
oily .he Southern IlG,ena Railway ~
the Bedford Quarry and Company OF
Indiana Mr. Wash says that II h'
could have had little more time. ali
been eft untra,nmcied in his opeia
tions, he could have saved his ba1hs
self and his associates. He basis tai
statement on his estimate of the va;u
of the bonds of the Southern Indian
Railroad Company.
The comptroller, the state auditor
and the members of the Chicago Gear
ing house committee place the vaiE
of the bonds at one-half the valuation
of Mr.. Walsh, and it was their refusa
to accept his valuation that caused
the suspension Of the banks.
IL fy0C n
rtions are estimated in the aggresat
at SIG. 100000. Against this amount
the banks and the trust company have
resources that are, on conservaEiv
estimate, worth $16,000,000. The bond
of the Southern Indiana Railroa
Company are estimated by Mr.. WaIs
at $16.O00,000. They are consldefe
by the comptroller, the state audito
and the clearing house committee
be worth a little more than half tha
sum- The revenue is a matter to D
determined in the future, and the pres
idents of the local banks admit that
the estimate of Mr.. Walsh is found 20
be correct the two banks. and the trus
company will not only pay all of the,
debts, but leave a surplus besides.
The directors of the two banks, as
we'll as Mr. Walsh who has turned all
of his private property as we'll as taa
standing in the name of Mrs. Wa4Sh
have pledged real estate and securities
valued at $5,00O.000 making total
assets of $29.0C0,000, estimating IN
railroad bonds ut $S,0O0,00O, agalns
$26,G00;000 liabilities.
For some time there has been a lit
ference of opinion between the ofhcer
of the Chicago National Bank and n
Comptroller Ridgeley regarding IN
method OF conducting the affairs ol
the bank. The comptroller took eX
ception to the large loans made by N
bank to the private enterprises OF Mr.
Walsh and declared that a portion G1
them must be called in. Assurances
were given, the comptroller declares,
that this would be done, but the prom
ises were net kept.
Finally the incentive to close scrut-
my of the affairs of the Chicago Nat
ional and Home Savings Banks vas
given by banker in New York va
had been reQues ed to take part in
syndicate to furnish loan of S6,oo0.
900 TO Mr. Walsh for further eXpenti
lures on the Southern Indiana rail-
road The bonds or the company, hoW
ever, Old not sell as rapidly as was fS
. pected and state and national bank ex
aminers were aDprised of the faltur
of the loan. Up to this time the banks
had been examined separately, wkic
enabled them 70 transfer securities
back and forth. it was decided tia
the state examiner and the national
examiner should make sfnlultane.,u
investigation. This showed that tn