Courier Democrat. (Langdon, N.D.) 1891-1920, 1905-12-21
antee Payment of Depositors.

e'hSS FdSttlSUI OF OSpOSllOFS.
Chicago, Dec. l9.-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 this city and in great
measure owned by him, suspended
operations during the day. Tneir al.
fairs will be liQuidated as rapidly as
possible and they will go out of bust
ness.
Mr.. Walsh. who "a the president of
the Chicago National bank and the
Equitable Trust company. and all the
other officers of the Chicago National
bank have resigned. National Bank
Examiner c. H. Bosworth has succeed
ed Mr.. Walsh at the head Of the Chi
cago National bank and the places c
the directors have been filled 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 deposiIor shall be paid to the
last cen and that not any customser
Of the three institutions shall lose any
thing by the suspension. Had not this
action been taken by the banks of the
city, a disastrous panic might have fol
lowed in this city and throughout the
country As ir u-oS tho only off0cr ~,
on the financial world in this city was
the decline on the local stock exchange
of 2la in the price of National Biscuit
common stock, which has employed
the Equitable Trust as transfer agents
and had besides dealings with the Chi.
cage National bank. but it is not al
fected by the failure in the slightest
degree. The closing Of the two banks
had the effect also of shutting off all
demand on the local exchange of bank
stock, non of them being purchased.
Cause Of the Collapse.
The immediate cause OF the collapse
OF the institutions controlled by Mr..
Walsh is said 10 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 W estimate OF the value OF the
bonds OF the Southern Indiana Rail
way company.
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
MIR Walsh and it was their refusal to
accept his valuation that caused the
suspension OF the banks.
The liabilities of the three institu.
lions are estimated in the aggregate at
$4,000 900. Against this amount the
banks and the trust company have re-
sources that are on a conservative esti.
mate worth $4,000. 900. The bonds of
the Southern Indiana railway company
are estimated by Mr.. Walsh as being
worth s1s.000,00o. They are consid-
by the comptroller. state auditor
and the Clearinghouse committee to
be worth a little more than half that
sum. Their value is a matter TO be de
termined in the future and the presi
dents OF the local banks admit that if
the estimate of MI. Walsh is found to
be correct, the two banks and the trust
company will not only pay all of their
debts but leave a surplus besides. The
directors o. the two banks and Mr..
Walsh. who has turned over all of his
private property as well as that stand,
ing IN the name of Mrs. Walsh. have
pledged real estate and securities
valued at 100000 and estimating
the railroad bonds at $4,000, 900 more.
making a total Of s29. 900 900 assets,
against s26, 600. 900 liabilities