The Montgomery advertiser., 1905-12-19
THREE BANKS
 CLOSE DOORS Chicago Institutions VIII LiQuidale. CAPITALISTS TO RESCUE Allied Banks of Windy City
 Pledge Resources. Prompt Action saves the Natis. frsn Disastrous Panio--Liasiiities es the
 Distressed In.tstation. are
 sss,ooe0oo.

Chicago. Dec. Is--Three of the lar gest institutions in the west, the Chi cage National Bank. the Homo savtnGs Bank and the Equitable Trust Com pany. all of them controlled by John R. Walsh. of this city and in a great erations to-day. Their affairs will be iiquidated as rapidly as possible and they will 10 out of business.
 Mir. Walsh, who was the President of the Chicago National Bank and of the Equitable Trust Company and all the other officers and directors of the Gni-E cago National Bank. have resigned National Bank Examiner c. II. Bos- worth has succeeded Mr. Walsh as the head of the Chicago National Bank and the places of the directors have been filled by men apointed by the Chicago Clearing House.
 Back of the new management stands the allied banks of Chicago who have pledged their resources that every de- posttor shall be paid to the last oent. and that no customer of any of the three institutions shall lose anythfu9 by reason of the suspension.
 Had not this action been taken by the banks of Chicago. q disastrous panic must have followed in this cifv and throughout the country. As it was. the only effect on the financial world In this city was the decline ;n local stock exchange of l-2 in tha price of tho common stock of the Na- tional Biscuit Company which has efn- pioyed the Equitable Trust Company as transfer agent and had dealings with the Chicago National Bank. but it IS not affected by the failure in tho slightest degree. The closing of tlls two banks had the effect also Of shut ting on all demand on the local ex- change for bank stocks
 Cause of the Collapse
 The immediate cause of the coliap.a of the institutions controlled bs Mr Walsh Is said to be the rarre Amount of money which they have loaned fo various private enterprises of his--yo- .apIy the southern Indiana Railway and tho Bedford QuGrries Cofnpnny of Indiana Nj Walsh claims that if he could have had a iittle more fi,.,e ana been left unLFamme1ed m hfe 1s,~y,3 tions ho could have savsd his bankg ana made enormous profits for himseif and his associates.
 He bases this statement on his esff- mate of the value of the bonds of the Southern Indiana Railway Cors,uny. The comptroller the state audit R and the members of the Chicago Clearing House Committee place the value of the bonds at one half the valuation os MT Walsh and 1t was their refusal to accept his valuation that caused the suspension of the bank.
 The liabilities of the three lnstIti,- tions are estimated In the aggregate at $26.000,000. Against this amount the banks and the trust company have resources that are on a conservative estimate worth sI6,000. .000.
 The bonds of the Southern IndInna Railway Company are estimated bv Mi walsh as being worth $16,00o. 900, Thev are considered by the conaptrofIer. state auditor and the Clearing Houss Committee to be worth little moro than half that sum. Their value ig a matter to be determined in the future and the presidents of the local banks admit that if the estimate of Mir yVnIsh is found to be correct. the two banks and the trust company will not onIv pay all of their debts but leave q sur plus besides.
 The directors of two of the banks and Mir. Walsh. who has turned over all of his private property. as well as that standing in the name of Mrs. Walsh, have pledged real estate and securities valued at $5,00o,00o or more. making total of s2e.000.0oo, assets (estimating the Southern Indiana bonds at ss.oOo.O0O) againt s2e.e0o, 900 liabilities.