The Washington times., 1905-12-18
THREE BIG BANKS
Of JOHN R. WALSH
FAIL IN CHICAGO
National Equitable Trust.
and the Home Saw
ingS.
ALL 'DEPOSlTORS SAVED
Clearing House Members
Make Good Every Cent,
to Prevent Panic.
ALL 'DEP0SlTORS SAVED

10 fIeVent fanlC.
CHICAGO. Dec. 1s.-The failure OF thu
Chicago National Bank. the Home Saw
ings Bank. and Equitable Trust Com
pany was announced early this morning.
by the representatives of the Chicago
Clearing House Association after a long
session Of eighteen hours
The depOsitors OF the three institu-
tions win be paid in fun, the Chicago
clearing house banks pledging them
selves 10 this purpose
Walsh Blamed.
John r. Walsh is head OF the three
institutions involved and the trouble
was brought about by investments in
coal and railway enterprises of Mr..
Walsh
James B. Forgan. president ot fhs
First National Bank and head Of the
clearing house committee OF the Chica-
go associated backs. gave out the fol-
lowing statement this morning:
The Chicago National Bank tn.
Home Savings Bank, and the Equitabls
trust Company, which have been con-
trolled. of1cered and managed bv Holm
X alsh and his associates have con-
Siudeo 70 wind up their affairs and quit
business in Chicago.
Depositors Won't Lose.
After a thorough and careful examf-
nation OF their banks by the Chicago
clearing house banks, it is stated thar
all of the depositors Of these institu-
tions will be paid IN full upon demand.
the Chicago clearing house banks hay-
ing pledged themselves TO this result.
thus putting all the resources of the
c huV,
the three Institutions
The difficulty with the institrfion~
has been that their investments have
been made in assets connected With
me railway and coal enterprises OF John
available 70 meet deposits. and have
Deen taten over on terms which 1-ffI
enable the three Institutions 10 pay
their depositors in full''
Ridgely Pleased.
Mr.. Ridgely. Comptroller of the Cur
rency, and Captain Eubank. OF the
auditors department at Springfield
were seen and expressed themselves as
greatly pleased with the Chicago banks.
and stated that IL reflected great credit
upon the associated banks OF Chicago.
which have again indicated their ability
to meet any emergency in manner en-
iItiE SATISFACTORY 10 the pubic.
The deposits of the Chicago National
Bank are estimated al more than Sl6.-
100000 and the Home Savings Bank has
deposits of more than S5s00.OOO. belong
ing to more than 5000 persons The de-
9Osits of the Equitable Trust Company
amount 10 more than 100000
In addition to the formal statement
OF suspension and the announcement
that the banks involved would not open
their doors this morning. the follow
ing announcement was made. signed BY
the clearing house committee of the
Chicago Associated Banks
ITO the Public:
"Depositors of the Chicago National
Bank. the Home Savings Bank and the
Equitable Trust Company are respect
fully advised that their deposits viii bs
paid in full upon demand
Seen Week Ago
one week ago the END was IN sight.
Investigations by the Federal and State
banking departments were begun and
day by day the insolvency Of the in
stitutions became more apparent
Comptroller of the Currency RiGgely
was notified three days ago and came
70 Chicago
Yesterday afternoon. the full extent
OF the disaster was realized ar.1 the
bankers OF Chicago were notified
Sat All Night.
At 3 p m. a meeting OF the Clearing
House Association was called in Presi-
dent FOrgan's office in the First Ma
tionaI Bank. Until $3.50 a m, the meet
ing was in session.
At the very fIrst il was resolved at all
costs any loss 10 depositors must be
prevented \ panic was dreaded ReSOlc-
uons were adopted and the heads Of
other banks at once pledged themselves
10 give assistance
Walsh Forks Up.
The directors of tho insoIvent institu-
Jlons came 20 the front and with John
r Walsh. turned over 5000, coo worth
OF good securities TO make mp as much
as possible OF the deficit. Finally il was
determined that there was a difference
of S2,O0O,o0) or 100000 between assets
and liabilities. This amount or any
amount that is necessary the combined
banking interests of Chicago viii make
good.
All information concerning the meet
ing OF the committee was kept secret
until 3 o'clock this morning and haIf
an hour later the association gave the
statement 10 the press The names o,
the committee who drew up the state
menI are James b. FOrgan president
OF the First National Bank chairman:
John Mitchell. president OF the ILhnois
Trust and Savings Bank: Orsoa q,
Smith. president OF the Merchants Loan
and Trust Company: James n Eekels
president OF the Commercial National
Bank: Ernest a. Hammill. president OF
the Corn Exchange National Bank
Hold Public Funds
There are slS,oO0oo0 of public moneys
on deposit in the Chicago National
Bank They include city. state. drain-
a ge. and park funds.
The Chicago National was organized
in November 1881, with an authorized