Arizona republican., 1905-12-19

of money which they have loaned to
 various private enterprises of his
 notably the Southern Indiana railway
 and the Bedford Quarries company of i Indiana. MT. Walsh claims that if he
 could have had little more time and
 been left untrammeled in his opera | tions, he could have saved his banks
 and made enormous profits for him. self and his associates. He bases this statement on his estimate of the val
 ue of the bonds of the Southern Indi- | ana Railway company. The comptrOl-
 Ter the state auditor and members of
 the Chicago clearing house committee
 place the value of the bonds at one half the valuation of MT. Walsh, and
 1t was their refusal to accept his val
 nation that caused the crash.
 l The liabilities of the three lnstitu-
 ttons are estimated in the aggregate | of $26,000.0 .000. Against this amount the | banks and trust companies have re- 1 sources that are on a conservative esti- mate worth $16,000,000 The bonds of
 the Southern Indiana Railway com pany are estimated by MT. Walsh as
 being woth $16,000,000. They are con- | sidered by the comptroller and clear | ing house committee to be worth a lit | tie more than half that sum. Their value is a matter to be determined in
 the future, and the presidents of the local banks admit that if the estimate ' of Mir Walsh is found to be correct
 the two banks and the trust company will not only pay all of their debts, but
 will leave a surplus besides. The di-
 rectors of the two banks and MT.
 Walsh, who has turned over all of his | private property as well as that stand T fVaer
 1 pledged real estate and securities val , ued at $5,0O0,O00 and estimating the railroad bonds at sS,000 900 more. mak-
 ing total of $29OOO,OOO assets against ] $26, LOGO, 900 liabilities.
 UNkEPT PROMISES.
 | For some time there has been a diff | ference of opinion between the officers
 of the Chicago National bank and | Comptroller Ridgeley regarding the i method of conducting the affairs of the bank. The comptroller took exception 1 to the large loans made by the bank to the private enterprises of MT. Walsh and declared that a portion of them must be called in. Assurances were given to him, he declares. that this would be done, but the promises were
 not kept. Finally the incentive to close scrutiny of the affairs of the Chicago National and the Home Say
 ings banks was given by q bgnker in New York who had been requested to take part in a syndicate to furnish loan of S60OO00O to MT. Walsh for the purpose of further expenditures on the Southern Indiana railroad. The bonds of the company, however, did not sell as rapidly as was expected and the state and national examiners were ap- ra..fe- ~.E E-.sT
 to this time the banks had been ex- amined separately which enabled them to transfer the securities back and forth.
 EXAMINED ALL AT ONCE.
 It was decided that the state exam iner and the national examiner should make a simultaneous investigation. This showed that the institutions had loaned a large amount, estimated all the way from $1O,OOO.OOO to S15,OOO. 900 on the securities of the railroads that were owned practically by MT. Walsh alone. It is said that the paper for these loans was signed by clerks and that they were substituted by bonds of MT. Walsh's railroads, the Southern Indiana and the Wisconsin and Michi- gan. When the examiners had con cluded their report MT. Walsh asked for a little time. saying that he could raise the money to stralghten out ev- erything. He was not as successful in this as he hoped to be and when Comp trOller Ridgeley was informed of the fact he came at once to Chicago. He called a meeting of the members Of the Chicago clearing house and iD- formed them of the situation. The meeting was held in the office of the president of the First National bank It was announced Saturday morning by the comptroller that the banks had practically suspended and that all d"- pOsitOrs would be paid in full bv tue other banks of the city.
 The officers of the Chicago National bank were: President, John R. Walsh: vice president, F. M. Blount; directors. John R. Walsh, F. M. Blount. John N. | Smith, Wm. Best, c. K G. Billings, r. | G. McNally and Maurice Rosenfeld. | The deposits in the bank were $14- 4S3,OOO and ther is due to other banks | $2O3S,S51.
 The officers of the Home Saving, l bank were: President Wm. Onahan. | vice president, Maurice Rosenfeld; di- | rectors C. K. G. Billings, Maurice Rn- senfeld, John M. Smith, w. J. Onahan. | Wm. Best, John R. Walsh.
 The officers and directors of tho Equitable Trust company were practi | cally the same as those of the Home | Savings bank with the exception of MT. Walsh, who was president in place. of MT. Onahan. The Home Savings | bank had savings deposits of $3,56O- | 600. The Equitable Trust company has outstanding certificates of deposit2 | and accrued interest in the amount of $1,2S9,OOO and deposits in trust values at S2,O26,60O. There is no question of the availability of any of the assets of the two latter institutions, but | there is a doubt as to the value of the Southern Indiana bonds among the securities held by the Chicago Nation al bank.
 LIKE A THUNDER CLAP.
 Whatever might have been known in l the inner financial circles of the con- dition of the Chicago National bank, it | was by the public believed to be the |