Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-12-18
COMPTROLLER Of Currency Compels
Three Chicago Concerns to
Wind up Business.
DOMINATED BY J. R. WALSH.
Clearing House Association Came
TO the Rescue and Depositors
Will Not Lose a Cent.
Cause OF Trouble Was Loaning Too
!. Much Money to Walsh to Carry
on Railroad Enterprises.

Chicago. Dec. 1s.-Fallure OF the
Chicago National bank, the Home Saw
,nes bank and the Equitable Trust
company. all OF Chicago. was ANNOUNCE
"a at $3.50 o'clock this morning by rep
rasentatIyes OF the Chicago Clearing
House association, after session last
ing IS hours. james B. Forgan, pres
,dent of the First National bank as
head OF the clearing house committee
NJ the Chicago Associated banks, gave
forth the statement. The assets Of
these institutions, 1t was asserted.
we're Involved In coal and railway
properties OF John r. Walsh. president
Of the Chicago National bank. John II.
Walsh, head OF the institutions which
have been declared insolvent, was not
al the meeting The following were the
members OF the committee at the meet
ing: James d. Forgan, chairman; John
]. Mitchell James Il. Eckes. Orson Is.
Smith. Ernest A. Hamill.
CAUSE OF THE WRECK.
The difficulties OF the three wrecks
which are practically branches of the
same institution. are attributed by the
comptroller of the currency to the large
loans made by the Chicago National
bank to the RAILROAD, coal mining and
other private enterprises controlled by
Mr.. Walsh.
Some time ago the comptroller call
cd the attention of the officers of the
bank to the fact that they were maxi
ing loans to these enterprises OF Mr.,
Walsh, which. IN his opinion, were too
large for the safety of the institution.
Repeated promises were made that the
situation should be rectifed but no ac-
ton satisfactory to the comptroller was
taken. Three days ago he came to Chi
cago for the purpose of making an In
vestigation into the affairs of the three
banks and found them In such con-
dltlon that he judged immediate action
10 be necessary. Some trifing delay
had ensued because OF the inability OF
Mr.. Rldgely to meet the officers Of the
bank and officials of the state auditors
office The fact that the Home Savings
hank and the Equitable Trust company
are under state supervision made the
presence OF the latter official necessary.
The officials OF the different Chicago
banks were told of the situation. and
hurried call was sent out for meet
Ing Of representatives of the Chicago
Clearing House association, as well AS
the officers of the city banks.
A SUNDAY MEETING.
The meeting was called to order in
the office of President Forgan, OF the
First National bank, at 3 o'clock yes
terday afternoon and in continuous ses-
sion until o'clock this morning.
careful canvass of the situation reveal
ed that the Chicago National bank had
deposits TO the amount of sl6,Oo0,O0o,
the Home Savings bank had savings
deposits to the extent of $4.000,000 divid-
ed among about 5000 depositors. The
liabilities OF the two banks and OF the
Equitable Trust company were roughly
estimated at s26000,000, The assets OF
the three institutions made up about
s20000,0O0 of the amount and the dlrec-
tors and officials Of the Chicago Nation-
al bank came to the front with securi-
ties amounting to about 81, 900, 900 more.
This left a deficit OF about s3.0O0000 10
be faced. The Chicago banks repre-
sented at the meeting declared at once
That they would meet the situa ton and
care for the deficit.
II II proved necessary to advance any
more than 100000 to- meet all de-
mands, the banks pledged themselves
10 make up the amount whatever It
might be.
The great difficulty confronting the
bankers In the meeting was to arrange
legal settlement of the case In the
snort time at their disposal at
the hour of commencing business this
morning, 1t was finally arranged that
N addition to winding up the affairs
OF the three institutions. the allied
bankers should take all OF Mr.. Walsh's
private enterprises. including his coal
mines and railroads and stone quarries.
AZ the closing of the meeting this
morning the following statement as is
sued by the Chicago Clearing House as
ISOLATION:
The statement was issued at the Of
noes or the First National bank. 1t is
as follows
FIRST NATIONALS STATEMENT.
The Chicago National bank, the
rome Savings bank and Equitable
1rust company. which have been con.
uoiled and managed by John II. Walsh
anu MS associates. have concluded &c
mina UP their affairs and quit business
W me city OF Chicago After q thor
oush ana careful examination OF their
shairs by the Chicago clearing house
banks II is stated that all of the deposi-
sois OF these institutions will be paid In
uA upon demand, the Chicago clearing
house banks having pledged themselves
70 this result, thus putting all the re-
sources OF the Chicago banks behind the
ureposltors OF these three Institutions
the difficulty with the institutions have
zen that their investments have been
mace In assets connected with the rail-
May NAY and coal enterprises of John II
those assets are not Immediately
valuable to meet deposits and have
ueei taken over on terms which viii
Enable the three institutions TO pay
'neIr depositors In full.
Mr Ridgely comptroller OF the cur
.eney. and Capt. Eubank OF the audi
WI department at Springfield. were
Zen and expressed themselves as great
Pleased at the action OF the Chicago !
LINKS. and stated that 1t reflected great
oTellt upon the associated banks OF
,meago which have again indicated
.nelr ability to meet any emergency IN
: manner entirely satisfactory to the
CoMPTROLLER's STATEMENT.
comptroller OF the Currency Rldgely !
sisg made a statement as follows:
Ane action OF the Chicago ciearfna