Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1905-12-20
Cause of the Collapse.

coal lands, quarries and vast num-
Der of other side lines caused the col
lapse. Comptroller William Barrett
Ridgley was hurriedly summoned to
Chicago three days ago to investigate
the affairs of the three concerns. He
has issued a statement laying the fail
IRE to Mr.. Walsh's Investments. The
clearing house committee sent out the
following statement for publication in
the Chicago newspapers:
ITO the public-Depositors Of the
Chicago National bank, Home Savings
bank and Equitable Trust company
are respectively advised that their de-
posits will be paid in full upon de-
mand."
Doors Open as Usual.
The three institutions opened their
doors as usual for the purpose of pay
ing all depositors. 1t was announced
that no money would be received. The
total liabilities, it is estimated, will
foot up $26,OO0,00O. The National
bank has $16G0O,0OO in deposits and
the Home Savings has $4,OOO,0OO, rep
resenting the deposits of 5000 persons.
In an effort to make cup MS much as
possible of the deficit the directors
came to the front with Mr.. Walsh and
surrendered funds. This means that
100000 worth of good securities has
been turned over to meet the liabilities
| from this source.
Upon investigation at the secret
t,,n of 1,n 1;
determined that there was difference
of S2000,000 or $3,OOO,OOO between
assets and liabilities which the associ-
alton of bankers agreed to make good.
How the Three Banks Worked.
The three banks which have gone
to the wall formed a sort of financial
trinity, the influence of which was felt
in many cities. The parent institution
was the Chicago National and the
Home Savings bank took care of the
smaller, or savings accounts. The
Equitable Trust company co-operated
with the other two concerns, handling
the affairs of estates and trusts Under
the more liberal laws governing insti-
buttons of this character.
Comptroller of the Currency Ridg-
ley, who was responsible for the dras-
tic action taken against the Walsh in.
stitutions, made it clear that private
business enterprises rather than any
stringency of the money market is re.
sponsible for the collapse. While
money is plentiful and no distress is
felt in that direction, the private in
vestments of John Il. Walsh in rail
road construction and other enterprise.
'aused the collapse. -
Accounts We're Shifted.
4 Shifting of accounts from ane insti
tuition to another as the exigencies O.
the occasion required stood off the in
evitable end from day to day.
This, according to Mr.. Ridgley, wa.
accomplished by transferring the read,
assets of the state banks to the ma
t:onal institution when examination OF
the part of the national bank eXamin
ers was due. When state examination
was 10 he faced the operation was re
versed. Thus all made fine shown.
with the same ready assets.
Although this has been long sus
pected, tangible proofs were not forth
coming until Controller Ridgley sue
oeeded i'll arranging Il national ant
state examination simultaneously
Then the bottom dropped out of til
scheme and humiliation of the trinit,
of banks followed.
; Laid to the Southern Indiana.
In financial circles the opinion wa
expressed that the failure of the Walsl
institutions was due directly to til
promotion of the Southern Indian,
railroad. This has always been re
earded as Mr.. Walsh's personal prop
erty, in which lie had sunk all the wa,
from S5,0O00OO to $15,OOO,OOO without
however, being able to get an entrance
into Chicago. Walsh had endeavorct
in the last three years to dispose o
this line to the Pennsylvania system
or some other trunk road, withou
avail. 1t is believed that all of MI
Walsh's energy and financial re
sources had been put into this rail
road property in order to maintain II
-