The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-12-18
National Bank, a Savings Bank
and a Trust Company
Brought Down in a Heap by
Comptroller Ridgley.
TOTAL LIABILITIES
Are Roughly Estimated at 26
Million Dollars.
Assets of Three Institutions
Placed at S2O,OOO,OOO.
TO BE TAKEN CARE OF.
Other Banks Promise to Provide
for the Shortage.
Trouble Is Due to Operations
of John r. Walsh
And the Connection of the
Business With Politics.
Other Banks Promise to Provide
for the Shortage.
Trouble Is Due to Operations
of John r. Walsh
And the Connection of the
Business With Politics.

Chicago. Dec. 18-Action has been
taken by the comptroller of the cur
rency William B. Ridgley, that viii
compel the three large financial in
stitutious the Chicago National bank,
the Home Savings bank and the Equit-
able Trust company dominated by
John r. Walsh of this city, to wind
up their affairs. The other national
banks of Chicago have come to the
rescue. and it is declared on the au-
thority of the clearing house associa-
ton, the comptroller, and also by the
officers Of the Chicago National bank,
that not a single depOsitor will lose a
cent The difficulties of the three
wrecks which are practically branch
es of the same institution, are attrib-
uted by the comptroller of the cur
rency to the large loans made by the
Chicago National bank to the railroad
coal mining and other private enter
prises controlled by Mr.. Walsh.
Some time ago the comptroller
called the attention of the officers of
the bank to the fact that they were
making loans to these enterprises of
Mr.. Walsh which in his opinion were
tuition. Repeated promises were
made that the condition should be.
rectihed, but no action SATISFACTORY to
the comptroller was taken. Three
days ago he came to Chicago for the
purpose of making an investigation
into the affairs of the three banks and
found them in such a condition that
he judged immediate action to be
ensued because of the inability of Mr..
Ridgley to meet the officers of the
banks and officials Of the state au-
ditors office. The fact that the Home
Savings bank and the Equitable Trust
company are under state supervision
made the presence of the latter Off
cials necessary.
Clearing House Call.
The officials of the different Cbfcapo
banks We're told of the situation and n
hurried call was sent out for a meeting
of representatives of the Chicago clear
ing mouse association as well as the Off
GERS OF the city banks. The meeting was
called TO order in the office of President
Forgan of the First National banl- at
clock Sunday afternoon and was in
continuous session until o'clock this
morning a careful canvass of the sif11a
Ilon revealed that the Chicago National
$l6,O00,00O, the Home Savings bank had
savings deposits to the extent of 81. OOO.-
U0O divided among about {, 600 depOsitors
~ ne 1abllltles of the two banks and of
the Equitable Trust company were
roughly estimated at S26 600 OO0 The
assets Of the three Institutions made nm
about 10000, GOO of the amount and the
directors and officials of the Chfca %
Naulonat bank came to the front with
securities amounting to about Sc. 900 600
q r7.E .-r- a. ,,.-,
600 to be faced and the Chicago hanks
represented at the meeting declared at
once that they would meet the situation
and care for the deficit.
III IL proved necessary to advance anv
more than So. 600 900 to meet an demands
the banks pledged themselves to make
up the amount, whatever it might be
The great difficulty confronting the
bankers in the meeting was to arrange a
legal settlement of the case in the Diti-
Iully snort time at their disposal at the
uour or commencing business this morn
ing. 1t was finally arranged that in
addition to winding up the affairs of the
three institutions the allied bankers
Hnould take all of Mr. Walsh's private
enterprises including his coal mines and
railroads and stone quarries.
AT the close of the meeting a state
ment was issued by the Chicago clearing
house.
Comptroller Of the Currency Ridley
also made statement
History of the Concerns.
The Chicago National bank was or
ganized in November, 1881 with an an
thorized capital of $500 900, which was
increased to 100000 in 1877 and 81 ,OOO,-
900 In 1901
Its resources, according to the last
statement filed with the comptroller of
the currency, were S21. 600 600. of which
nearly sl1 600 was in loans and dis
counts with S4.OOOO00 in cash on hand.
The individual deposits are about S14.-
000OOO in individual accounts and 50
oV0,OOO due to other banks.
The Home Savings bank was organ
lzed in 1857, with a capitalization of
100000. 1t existed for many years as
an independent institution and about
twelve years ago became part of the
Chicago National bank. 1t was pri-
narily a savings institution It's last
reports showed resources Of S423O. 900
for the most part in railroad and mu-
nictpal bonds. The savings deposits
aggregate $3,983.000.
The Equitable Trust company was
chartered in 1897 to act as administra-
tor. executor, trustee, and to receive
and execute trusts of every character.
The capital stock is $500, 600, and the
resources are $4.612.000 The Habili-