The Fulton County news. [volume] (McConnellsburg, Pa.) 1899-current, 1905-12-27
PRESIDENT WALSH BORROwS FUNDS.
Chicago Banking Institutions Involve
S26,ooO,oOo.

Chicago (SpeciaD Three of the larg-
est financial institutions in the West
the Chicago National Bank, the Home
Savings Bank and the Equitable Trust
Company--all OF them controlled by John
r. Walsh, OF Chicago, in great measure
owned by him, suspended operations
Monday Their affairs will be liquidated
as rapidly as possible, and they will go
out of business.
Mr.. Walsh, who was president of the
Chicago National Bank and of the Equi-
table Trust Company, and all the other
officers and ell the directors OF the
Chicago National Bank have resigned.
National Bank Examiner c. II. Bos-
worth has succeeded Mr.. Walsh at the
head Of the Chicago National Bank, and
the places of the directors have been
filled by men appointed by the Chicago
Clearing house.
Back OF the new management stand
the allied banks of Chicago, which have
pledged their resources that every de-
positor shall be paid to the last cent,
and that no customer of any one OF the
three institutions shall lose anything by
reason of the suspension, This action pre-
vented a disastrous financial panic AS II
was the only effect on the financial world
OF Chicago was the decline on the Stock
Exchange OF 2N in the price of Ma
tional Biscuit common stock. The
National Biscuit Company has employed
the Equitable Trust as transfer agent,
and had besides dealings with the Chica-
go National Bank, but il is not al
fected by the failure in the slightest de
gree The closing of the two banks had
the effect, also, of shutting off all de-
mand on the local exchange for bank
stocks, none of them being purchased.
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 lent to various
private enterprises of his, notably the
Southern Indiana Railway and the Bed
ford Quarries Company, OF Indiana. Mr.
Walsh says that if he could have had a
little more time and been left untram-
meled in his operations he could have
saved his banks and made enormous
profits for himself and his associates. He
bases this statement on his estimate Of
the value of the bonds of the Southern
Indiana Railroad Company.
The Comptroller, the State Auditor
and the members of the Chicago Clear
ing house committee place the value OF
the bonds at one-half the valuation OF
Mr.. Walsh, and it was their refusal to
accept his valuation that caused the
suspension of the banks.
The liabilities of the three institutions
are estimated in the aggregate at S26-
100000. Against this amount the banks
and the trust company have resources
that are, on a conservative estimate,
worth $I6,oooooo The bonds of the
Southern Indiana Railroad Company are
estimated by Mr. Walsh at $I6,ooo,ooo
They are considered by the Comptroller.
! the State Auditor and the clearing house
committee 10 be worth a little more than
half that sum- Their value is matter
to be determined in the future. and the
presidents of the local banks admit that
if the estimate OF Mr. Walsh is found
to be correct the two banks and the trust
company will not only pay all of their
debts. but leave surplus besides.