Los Angeles herald., 1905-12-19
Had High Reputation


| In the inner financial circles Of the con-
d!tion of the Chicago National bank,
ii was by the public supposed to be
! one of the strongest and most con-
servatively managed institutions in the
west. Excitement ran high, therefore,
| when it was announced in the extra
editions of the morning papers that
the banks were involved. The state
ment of Comptroller Ridgely and the
| published announcement of the Chi
cago clearing house to the effect that
the other banks of the city had pledged
that all depositors would he paid in
full on demand, relieved the tension,
| however
Around the Chicago National bank
| there was no disturbance during the
day. There was run on the bank,
but it was quiet and orderly. Men who
called at the bank to inquire into the
condition of affairs were told that they
| could withdraw their money at any
time they pleased; that the bank was
| OPEN for the transaction of all busi-
ness, save that of taking in money
or of making loans. All checks that
were presented at the window of the
paying teller We're promptly paid in
| cash, and many other balances were
drawn out by deposit in other banks
passing through the clearing house in
| the ordinary way.
| The savings depositors of the Home
Savings bank did not take the situation
as calmly as did the customers of the
national bank and by the time the
doors were thrown open there was a
| line of 500 men waiting to withdraw
their accounts. Ample provision had
been made to meet the run and all
accounts were liquidated as soon as
presented. Within an hour after the
/ BOW h n
! died almost completely away, and al
though long line of depositors stood
in front of the bank until the close,
there was not the slightest disturbance.
The paying off deposltors will continue
| as long as claims are presented and
the statement is made on the authority
of the allied banks of the city that
| there is ample money to pay every
I thing.
Officers Resign
Shortly after noon It was announced
that all of the officers and directors
OF the Chicago National had rendered
their designations with the exception
of c. X. G. Billings, who is out of the
city. The place of Mr.. Walsh was
filed by the selection of Bank Exam
iner C. II. Bosworth, and the follow
ing committee was selected by the
clearing house to act as directors in
place of those who have resigned:
James b. Forgan, president of the
First National bank; John j. Mitchell,
president OF the Illinois Trust and
Savings bank; Orson Smith. president
of the Merchants Loan and Trust
company; James II. Eckels. president
Of the Commercial National bank;
Byron L. Smith. president Of the North
ern Trust company; G. X. G. Billings
and C. H. Bosworth.
Local financiers place all of Mr.
Walsh's troubles at the door of the
Southern Indiana railroad. A number
Of years ago he purchased the Bedford
stone quarries in Indiana. The ship
ping outlet for the quarrles was not so
good as he desired, and he soon became
involved in arguments with the Monon
& Chicago and Eastern Illinois rail-
roads, declaring that they were charg-
ing him a rate of freight that was ar
bitrarily high. He practically constructs
ed the Southern Indiana railroad, the
line Of which lay near his quarries, and
ultimately secured by means OF II an
outlet which brought his quarries
product to Terre Haute, Ind. and there