Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1905-12-19
Three Chicago Banks
Biggest in The West
Collapse With Crash
Heavy Railroad Loans to Walsh Wreck
Big Institutions.
PROMPT ACTION OF FINANCIERS
PREVENTS TREMENDOUS PANIC

IT WAS dIllpOuiiCtu UlOIlllIlS
that the banks had practically sus-
be paid in full by the other banks OF
the city
The officers of the Chicago National
Bank were:
President-John r. Walsh.
Vice President-F. M. Blount.
Dnectors-John r. Walsh, F. NJ.
Blount, John NJ. Smith, William
Best, c.. X. G. Billings, F. G.. Nc
Nally and Maurice Rosenfeld.
The deposits in the bank were $14,-
4S3, 900. and there is due to other
banks $2,O3S,S51.
The officers of the Home Savings
Bank were:
President-William Onahan.
Vice Observation-Disclosures Rosenfeld.
Directors-C. X. G. Billings, Maui
rice Resented, John M. Smyth, w.
j. Onahan, William Best John r..
Walsh.
The officers and directors of the
Equitable Trust Co. were practically
the same as those of the Home Saw
ings Bank, with the exception of Mr..
Walsh, who was president in place of
Mr.. Oonahan. The Home Savings
Bank had savings deposits of $780,
600. The Equitable Trust Co. has
outstanding certificates of deposit and
accrued interest in the amount of
$1,2S9 900, and deposits in trust val
ues at $2,096600.
There is no question of the avail
ability of any of the assets of the
two latter institutions. and doubt as
to the value of the Southern Indiana
among the securities held by the Chi
cago National Bank.
Thought TO BE We'll Managed.
Whatever might have been known
in the inner financial circles of the
condition of the Chicago National
Bank. it was by the, public believed
to be the most strongly managed in
stitution in the west Excitement
ran high, therefore. when it was an
nounced in the extra editions of the
morning papers that the banks were
involved. The statement of Comp
roller Ridgeley and the published an
nouncement of the Chicago Clearing
House to the effect that the other
banks of the city had pledged that all!
depositors would be paid in full on
demand relieved the tension, how
ever Around the Chicago National
there was no disturbance during the
day There was a run on the bank.
but it was quiet and orderly. Men
who called at the bank to inquire I'm :
to the condition of affairs were told
that they could withdraw their mon
ey any time they pleased; that the
bank was open for the transaction OF
all business save that of taking in
money or making loans. All checks
that were presented at the window of
the paying teller were promptly paid
in cash, and many other balances
were drawn out by depositors.
The savings depositors of the Home
Savings Bank did not take the situ-
alton as calmly as did the customers
of the National Bank and by the
time the doors were opened there was
a line of 500 people waiting to with
draw their accounts. Ample provis-
ion had been made to meet the run.
and all accounts were liquldated as
soon as presented. Within an hour
after the opening of the bank the
excitement had died almost complete
ly away, and although line of de-
positors stood in front of the bank
until the close there was not the
slightest disturbance. The paying off
of depositors will continue as long az
claims are presented, and the state
ment is made on the authority OF
the allied banks of the city that there
is ample money to pay everything.
Officers Resign En- Masse.
Shortly after noon 1t was announc
ed that all of the officers and direct
ors Of the Chicago National Bank had
rendered their designations, with the
exception of c. X. G. Billings who is
out of the city. The place Of
Mr. Walsh was filled by the selection
of Bank Examiner c. II. Bosworth,
and the following committee was Sc
lected by the Clearing House to act
ms directors in the place of those re-
signed.
James y. Forgan, president of First
National Bank; John j. Mitchell,
president of Illinois Trust Bank; Or
son Smith, president of Merchants
Loan Association; James II. Eckels
president of Commercial National
Bank; Byron l.. Smith. president OF
Northern Trust Co.; c. X. G. Bill
ings.
What Caused the Crash.
Local financiers place all of Mr.
Walshs troubles at the door OF the
Southern Indiana railroad. A num-
ber of years ago he purchased the
Bedford stone quarries I'm Indiana
The shipping outlet for the quarries
was not so good as he desired and he
soon became involved in arguments
with the Monon and Chicago & East
ern railroad, declaring they were
charging him a rate of freight thai
was arbitrarily high. He practically
constructed the Southern Indiana
/ line. and ultimately secured by means
of il an outlet for his Quarries which
brought them easily I'm access with
Terre Haute. where he came In con.
| tact with the Eastern Illinois Hf
| determined to build for his road 5
terminal into Chicago. and bent al
his energies to this end. The fight
that ensued continued through sew.
eral years and IL was bitter and ex.
pensive. especially to Mr.. Walsh. Al
one time the capitalists in control Oi
| the Chicago and Eastern Illinois
bought up OF the coal mines alona
the line of the road Mr. Walsh wa'
! propOsing to build into Chicago. ant