The Birmingham age-herald., 1905-12-19
Chicago National Bank, Home Savings Bank and Equitable
 Trust in Trouble OTHER BANKS ID RESCUE
 AND PANIC PREVENTED John R. Walsh, Who Controlled All of Them, and Officers and Directors
 of National Bank, Have
 Resigned.


 Chicago, December 1S.-Three of the largest financial institutions in the west, the Chicago National bank, the Chicago Home Savings bank and the Equitable Trust company, all of them controlled by John R. Walsh of ths city and in great measure owned by him, suspended opera tions today. Their affairs will be liquida- ted as rapidly as possible and they will go out of business.
 Mir Walsh who was the president of the Chicago National bank and of the Equi- table Trust company, the other officers and the directors of the Chicago National bank, have resigned.
 National Bank Examiner c. H. Ros- worth has succeeded MT. Walsh as the head of the Chicago National bank and the places of the directors have been fill- ed by men appointed by the Chicago clearing house.
 Back of the new management stands the allied banks of Chicago, which have pledged their resouregIy th,,t every de- postof shall be paid to the last cent, and that no customer of any one of the three institutions shall lose anything by req son of the suspension.
 Had not this action been taken by the banks of Chicago, disastrous panic must have followed in this city and throughout the country As 1t was, the only effect on the financial world in this city was the decline in local stock exchange of 2ia in the price of the common stock of the National Biscuit company, which has em ployed the Equitable Trust company as transfer agent and had dealings with the Chicago National bank. but 1t is not af- fected by the failure in the slightest de- gree. The closing of the two banks had the effect also of shutting off all demand on the local exchange for bank stocks.
 The immediate cause of the collapse of the institutions controlled by MT. Walsh is said to be the large amount of money which they have loaned to various pri- vate enterprises of his. notably the South ern Indiana railroad and the Bedford Quarries company of Indiana.
 MT. Walsh claims that if he could have had a little more time and left untram- melled in his operations, he could have saved his banks and made enormous prof its 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 comp troller, the state auditor and the mem bers of the Chicago clearing house com mittee place the value of the bonds at one half the valuation of MT. Walsh and it was their refusal to accept this valua- tion 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 s16,O00, ,O0O The bonds of the Southern In diana Railroad company are estimated by MT. Walsh being worth S16,00OOOO.
 They are considered by the comptroller, state auditor and the clearing house com mittee to be worth little more than half that sum. Their value is a matter to be determined in the future and the presidents of the local banks admit that if the estimate of MT. Walsh Is found to be correct, the two banks and trust company will not only pay all of their debts but leave a surplus besides. The directors of two of the banks and MT. Walsh who has turned over all of his private property as well that standing in the name of Mrs. Walsh have pledged real estate and securities valued at S5,00O,- GOO more making a total of s29,O00,0o0 as- sets estimating the Southern Indiana bonds at ss,000,0O0, against $26000,O0O lia- bilities.
 Some time ago the comptroller called attention to the fact that they were making loans to these enterprises of MT. Walsh, which, in his opinion, were to large Tor the safety of the institution. Repeated prom ises were made that the situation should be rectified, but no action was taken. Three days ago he came to Chicago Tor the purpose of making an investigation Into the affairs of the banks and found them In such a condition that he judged immediate action to be necessary. Some ,e.f1ing delay had ensued because of the inability of Mir Ridgeley to meet the of- flcers of the bank and officials of the state auditors office. The fact that the Home Savings bank and the Equitable Trust company are under state super vision made the presence of the latter officials necessary.
 canvassed Situation. Officials of the different Chicago banks were sent for and a meeting was called to order by President Forgan of the First National bank, at 3 o'clock yesterday af- ternoon and was in continual session un til o'clock this morning. careful can vass of the situation revealed the fact that the Chicago National bank had de- posits to the amount of $l6,OO0,G0, the Home Savings bank had savings deposits to the extent of $4,OO0 900, divided among about 5000 depositors. The liabilities Of the two banks and of the Equitable Trust company were roughly estimated at s25.- GOO GOO. The assets of the three institutions made up about s20.O00.0O0 of this amount and the directors and officials of the Chi cago National bank came to the front with securities amounting to about S.0c0- 000 more. This left deficit of about s5- 900 to be faced and the Chicago banks