Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1905-12-19
CHICAGO FINANcIER's ENTER
PRlsEs ARE BEsET WITH
DIFFICULTIES
CLEARING HOUSE
TO THE RESCUE

mT. WdISn are compelled to WIN
Up Their Affairs, No Single Depos
tor Will Lose a Cent--Wa!sh's Bi
Loans Cause of Trouble.
The effect of the embarrass-
ment Of John R. Walsh will not
extend outside of Chicago" said
an Ottumwa banker this morning
when questioned by Courier rep
resentative. None of the Ottum-
wa banks is a correspondent of
either of the Walsh institutions
and there is no connection of any
kind between the three institutions
that have started to wind up their
affairs and any financial institution
in Ottumwa.
Bedford, Ind, Dec. 1S.-The Bed
ford National bank, of which John
R. Walsh of Chicago is president,
Is doing business as usual today.
Chicago, Dec. 1S.-Comptroller
R1dgeley, in statement issued
at noon today, says the Chicago
National bank has not failed nor
closed it's door The bank is en-
barrassed by the investment of a
large amount of its assets in un-
available securities, but other
Chicago banks have guaranteed
the payment of all claims against
the Chicago National He says
the latter will meet all it's obliga-
tions and pay every dollar immedi-
ately - -
washington, b. c., Dec. 1s.
Secretary Of the Treasury Shaw
received the following telegraphic
report from Comptroller Ridgely at
Chicago in reference to the failure
of the banks there this morning.
"The clearing house has guaran-
teed the payment OF all the liabil-
tiles of the three banks, which
will liquidate any pay everything
in full. The officers and directors
will resign and will be replaced by
a clearing house committee and
a clearing house committee and
Examiner Bosworth, who will run
the banks and conduct the liquida-
ton. This should relieve the situa-
tion and prevent further trouble
here or elsewhere"
Chicago, Dec. 18.-Action has bee
AIKEN by the Comptroller of the, Cul
ency Ridgley, that will compel tn
'hicago National and Home Saving
anks and the Equitable Trust con
any, dominated by John R Walsh c
his city, to wind up their affairs.
The other national banks of the cit
ave come to the rescue and it is d.
Jared on the authority of the cleal
ng house association, the comptrolle
nd also by the officers of the Chicag
Iational bank, that not a single de
ositor will lose one cent.
Walsh's Loans the Cause.
The difficulties of the three banks
vhich are practically branches. of til
anne institution, are attributed b
he comptroller to large loan
lade by the Chicago National ban
D the railroads, coal mining and othe
rivate enterprises controlled b
Walsh,
Had Many Enterprises.
John R. Walsh and his son, John W
Walsh, are interested in many larg
usiness enterprises, and the fathe
as long been known as one of tn
lost conservative and able bankers il
hicago. In addition to his cares a
resident Of these institutions and O
ne Bedford National bank at Bedford
nd, Mr.. Walsh is associated with hi
on and other capitalists in the owner
hip OF the great Bedford stone uual
les, the Latta's Creek coal mines. tn
1diana Southern railroad, the indians
outhern Express Co., the Illinoi
outhern and the Southern Illinoi
The Offices at which tn
Washes conduct their railroad bus
ess are in the Grand Central static,
j Chicago.
Mr.. Walsh has long been connecte,
nth extensive coal mine interests an,
was to develop the coal lands tina
re part of his property that he bull
nd operated the railroads. Recentl
e has turned over to Ills son much O
he work Of management of the raj,
Dads and the construction Of ney
lines, and this latter work has bee,
DING on on a most expensive seal
Dr. several months.
Comptroller Gives Warning.
. Sometime ago the comptroller calle
he attention of the officers of tn
ank to the fact that they we're mak
1g loans to these enterprises of Walls
'hich in his opinion were too larg
or the safety of the institution. Re
ertcd promises were made that th
lt1ation would be rectified but NJ
ction satisfactory to the comptrolle
-ss taken. Three days ago he cam
f r. % E r. H