The Aberdeen Democrat. (Aberdeen, South Dakota) 1???-1909, 1905-12-22
GO { OH Of BUSINESS
TWO CHICAGO BANKS AND ONE
TRUST COMPANY FORCED
70 Llo ouIDATE.

Various Enterprlse Clearinghouse
Banks Come to the Rescue and Guar
antee Payment Of Deposltors.
Chicago, Dec. 1e. Threeaot the larg.
est financial Institutions n Tn West.
the Chicago National bank, ne
Savings bank and the Equitab In
company, all Of them c66l
John r. Walsh 81 this city and
measure owned BY him, sul
operations during the day. T
fairs will be liquidated as rapid
possible and they Will 60 out Of 50
ness.
Mr. Walsh, who was the president Of
the Chicago National bank and the
Equitab Trust company, and all the
other officers Of the Chicago National
bank have resigned. National Bank
Examiner 9. H. Bosworth has succeed
ed Mr.. Walsh at the head Of the Chi
cago National bank and the places Of II
the directors have been filed BY men
appointed by the Chicago Clearing
house. Back Of the new management
stand the allied banks Of Chicago, who
have pledged their resources that
every depositor shall be paid to the
last cent and that not any custnnser
OF the three institutions shall lose any
thing by the suspension. Had not this
action been taken by the banks Of the
city, q disastrous panic might have fol 4
lowed In this city and throughout the
country. AS it was the only effect up
on the financial world In this city was
the: decline on the local stock exchange
of ~ " In the price of Nat tional Biscuit
common stock. which has employed
the Equite e,ble Trust as transfer agents
aad had besides deal $50 with the Chi
cago National bank, but 1t Is not az
fected by the failure In the slightest
degree. The closing OF the two banks
had the effect also Of shutting on all I
demand on the local exchange Of bank
stock, none of them being purchased.
Cause Of the Collapse.
The immediate cause Of the collapse
Of the institutions controlled by Mr..
Walsh Is said to be the large amount
OF money which they have loaned to
various private enterprises Of his
notably the Southern Indiana railway
and the Bedford Quarries company Of
Indiana. Mr.. Walsh claims that if he (
could have had more time and been
left untrammeled In his operations he
could have saved his banks and made
enormous profits for himself and his
associates. He bases this statement
on his own estimate Of the value OF the
bonds OF the Southern Indiana Rail-
way company.
q The comptroller, the state auditor
and the members OF the Chicago Clear
house committee place the value OF the
bonds at one-half Of the valuation Of q
Mr.. Walsh and It was their refusal to
accept his valuation that caused the
suspension Of the banks.
The liabilities Of the three institu-
tions are estimated In the aggregate at
5$26, 600, ,000. Against this amount the
banks and the trust company have re-
sources that are on a conservative esti-
mate worth $f6, 900, ,OOO. j. The bonds of
the Southern Indiana railway company
are estimated by Mr.. Walsh as being
worth $4,000, 900. They are consid-
cred by the comptroller, state auditor
and the Clearing house committee to
be worth d little more than half that
sum. Their value ~ q matter to be de-
termined in the future and the prest-
dents Of the local banks admit that if