Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-12-19
THE SLUMP LAID LARGELY TO HIM,
Among Largest Western Banking
Houses and Had Extensive
Connections in the East.

Chicago, Dec. 1S.-Three of the lare-
est financial institutions in the West.
the Chicago National Bank, the Home
savings Bank and the Equitable Trust
Co., all of them controlled by John r.
Walsh OF Chicago. and in great meas
ure owned by him, suspended opera
tons today. Their affairs will be
liquldated as rapidly as possible and
they will go out of business.
Mr.. Walsh, who was the president
of the Chicago National Bank and of
the Equitable Trust Co., and all the
other officers and all the directors Of
the Chicago National Bank have re-
signed. National Bank Examiner c.
II. Bosworth 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.
This action prevented any effect on
the financial world of Chicago other
than the decline on the Stock Exchange
of 21A in the price of National Biscuit
Do'iiiiioii ''toehs It 4NdtlOIidl biscuit
Co. had employed the Equitable trust
as transfer agent and had besides
dealings with the Chicago National
Bank but it is not affected by the fail
ure the slightest degree
The immediate cause of the collapse
of the institutions controlled by Walsh
is said to be the large amount Of mon
ey which they have lent to various
private enterprises of his, notably the
Southern Indiana Railway and the
Bedford Quarries Co. of Indiana. Mr..
Walsh says that if he could have had
a little more time and been left I'M
trammelled in his operations, he could
have saved his banks and made enor-
nous profits for himself and his as
sociates.
The comptroller. the state auditor
and the members Of the Chicago Clear
ing House committee, however, place
the value of the Southern Indiana
Railroad Co. bonds at one half of Mr..
Walsh's estimate and it was their re-
fusal to accept his valuation that
caused the suspension of the banks.
The liabilities of the three institu-
lions are estimated to aggregate at
at S26,000,000. Against this amount the
banks and the trust company have re-
sources that are, on conservative
estimate, worth $16,0O0,00O. The bonds
of the Southern Indiana Railroad Co.
are estimated by Mr.. Walsh at $16,0OO,-
O0O, but they are considered by the
comptroller, the state auditor and the
Clearing House Committee to be worth
a little more than half that sum.
The directors of the two banks. as
well as that standing in the name of
Mrs. Walsh, have pledged real estate
and securities valued at $4,000, 900
making total in assets of 500, 900, 900,
estimating the railroad bonds at S.
100000, against $260O0.0OO liabilities.
Some time ago, Comptroller Ridge
ley took exception to the large loans
made by the Chicago National Bank
to private enterprises of Mr. Walsh and
declared that a portion of them must be
called in. Assurances were given, the
comptroller declares, that this would
be done. but the promises were not
kept.
Finally the incentive to a close scru-
tiny of the affairs of the Chicago Ma
tional and the Home Savings Banks
was given by banker in New York,
who had been requested to take part