The Providence news. (Providence [R.I.]) 1891-1906, 1905-12-18

| taken over on terms which will enable the
ihree institutions to pay their depositors
In fuu.
''Mr Ridgley. comptroller OF the cur
rency. and Captain Eubank OF the audi
tors department at Springfield, were seen
| and expressed themselves as greatly
pleased at the action OF the Chicago
/ banks and stated that II reflected great
credit upon the Associated Banks OF CHI
cago which have again indicated their
ability 10 meet any emergency in man
Ter entirely satisfactory 20 the public"
The meeting OF the Chicago Clearing
House association began at noon Sunday.
Notices were sent TO the members OF the
board by Mr. Forgan after Il had been
! learned OF the condition OF the banks and
the trust company.
BEHIND CLOSED DOORS.
Clerks were notified and fifty or more
with ten stenographers hurried to tho
First National bank. Behind closed doors
the clearing house association began IT'S
work or finding a way that might enable
them TO ride the financial sea I'm safety.
Ihat panic would be likely To follow
was tho first thought of the committee.
Hesolutlons were adopted and heads ~
other banks pledged themselves to give
assistance. The amount involved In the
iallure would not be stated by the corn
mittee members
All Information concerning the meeting
or the committee was kept secret until 4
CLOCK this morning and half an hour la
Ter the association gave the statement I,
the press The names OF tho cornmi,tas
VINO drew up the statement are.
james B. Forgan president First
Nalional Bank, chairman: John c. Nit
mel president OF the Illinois Trust and
savings Bank; Orson r. Smith. president
OF the Merchants Loan and Trust COM
al fsls loo
commercial National Bank: Ernest A
iiamlll, president OF the Corn Exchange
National Bank
DEPOSfTORS NOTIFIED
In addition 10 the formal statener, .,
the fallure and the announcement thar
the banks involved. would not omen their
doors this morning. the following state
iheht was made and signed by the clear
ing mouse committee OF the Chicago Asso-
ciated Banks:
To the public:
Depositors OF the Chicago National
Sank the Home Savings Bank and tho
f'quitaple Trust company are respect-
fully advised that their deposits will no
paid In full upon demand"
RELIEVED CRITICAL SITUATION
The following statement was given ont
later by Comptroller of the Currency VIII
liam B. Ridgely:
AHN NNAioh VI the inlca2O Clearing
House banks in coming 10 the aid OF the
chicago National bank the Home saw
lhss bank. and the Equitable Trust COM
pany. has relieved most critical sItua
ton which, IL IT had not been taken prop-
eriy in band. might have led 10 very se
rlous consequences, not only I'm Chicago.
but elsewhere
The action OF the Clearing IIo,,so h.,,
makes IL absolutely certain that ali tho
creditors OF the three institutions will
receive their money Immediately and
should thus relieve any apprehension on
the part OF the public in regard TO the
financial troubles In Chicago
The critical situation in which thasa
three concerns have been placed has been
due TO the large loans made 10 the rail-
way, coal mining and other industries
owned and controlled by Mr. John n
Walsh. This again emphasizes the danger
OF managing officers or banks being In
terested In outside institutions. requiring
large amounts or money.
CONDITION CRITICIZED.
The comptroler's office has for som.
time been criticIzing the condition of the
Chicaso National bank. and calling upon
its Officers and directors To reduce the
amount OF these loans and the invest
ments IN bonds o. Mr. Walsh's corpora-
lions. In spite OF repeated promises that
this should be done these items have heen
continued Ia the bank and I'm order 10
prevent further encroachments IL wa. ne-
cessary for the comptroller to take radi-
cal action
The comptrollcrs Office has for come
tima been endeavorng TO make an exam
ination OF the Chicago National bank
simultaneously with an examination OF
the state institutions by the state bank
examiner. but was not able TO bring this
about until few days ago. The result
uf the examinations revealed such a So
rious condition that II was necessary TO
take immediate action.
The comptroller telCphoned from Wash
ington. inStructing Bank Examiner Bos-
worth to bring the matter at once 90 the
attention OF the clearing house COMMITTEES
and left for Chicago on the first train
TO he on hand personally 90 take what
ever action was necessary.
PROTRACTED CONFERENCE.
on his arrival IN Chicago a conference
was Immediately had wit hthe state au-
thorties and the clearing house com
nittee. which continued from IN O'Clock
sunday morning until 8 o'clock Monday
morning In addition 20 the clearing
house committee. representatives OF an
the clearing house banks were called into