Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1905-12-25
CHICAGO NATIONAL HOME saw
INGs AND EQUITABLE TRUST.
LOANED TOO MUCH MONEY
Troubles Due to Shaky Enterprises of
John r. WaIsh-Depositors Will
Not Lose and Business World Will
Not Suffer-Run on Home Savings
Bank-AIl Claims Paid Promptly.

Chicago, Dec. 19.-Three of the
largest financial institutions in the
west, the Chicago National bank, the
Home Savings bank and Equitable
Trust company, all controlled by John
r. Walsh of this city, and in a great
measure owned by him suspended OBJ
erations yesterday Their affairs will
be liquidated as rapidly as possible
and they will go out of business.
Walsh, who was the president of
the Chicago National and of the Eouit-
able Trust company, and all other Of
ficers and directors of the Chicago
National resigned. National Bank
Examiner Bosworth succeeded Walsh
as the head of the Chicago National.
and the places of the directors have
been filled by men appointed by the
Chicago clearing house. Back of the
new management stand allied banks
OF Chicago who have pledged their re-
sources that every depositor shall be
paid to the last cent and that no GUS
toner of any one of the three institu-
ions shall lose anything by reason of
the suspension
Had not this action been taken by
the banks of the city disastrous panic
must have followed in the financial
world. AS it was, the only effect on
the financial world in this city was a
decline on the local stock exchange of
21a in the price of the national biscuit
CTR ho
had employed the Equitable Trust as
transfer agent, and had besides deal
ings with the Chicago National but it
is not affected by the failure in the
slightest degree. The closing of the
two banks had an effect also of shut
ting off all demand on the local ex-
change for bank stock none of them
being purchased.
The immediate cause of the collapse
Of the institutions controlled by Walsh
is said to be the large amount e.
money which they have loaned various
private enterprises of his, notably the
Southern Indiana railway and the Bed
ford QuarrieS company of Indiana
Walsh claims that if he could have had
little more time and have 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 estimate of the value OF the
bonds of the Southern Indiana rail
road. The liabilities of the three in
situations are estimated at $26,000,-
600. Against this amount the banks
and the trust company have resources
that are, on conservative estimate
worth S16,000,000. The bonds of the
Southern Indiana railroad are es-
timated by Walsh at $16,000,0O0 They
are considered by the comptroller,
state auditor and the clearing house
committee to be worth little more
than half that sum. Their value is a
mater to be determined in the future
and presidents of the local banks adj
nit that if Walshs estimate is found
correct, the two banks and trust COM
pany will not only pay all of their
debts but leave a surplus besides
Quiet at Chicago National.
Around the Chicago National bank
there was no disturbance during the
day. There was a run on the bank
but it was of a quiet order. Business
into the conditions were told that they
could withdraw their money any time
they pleased, that the bank was open
for the transaction of all business,
save that of taking in money or max
ing loans. All checks presented at
the window of the paying teller were
promptly paid in cash, and many
other balances were drawn out by de-
post in other banks, passing through
the clearing house in the ordinary
way.
Long Line at Home Savings.
The savings depositors OF the
Home Savings did not take the Stu
alton as calmly and by the time the
doors were opened there was long
line waiting to withdraw accounts.
All accounts were liquidated as soon
as presented. Within an hour of the
opening of the bank the excitement
had died almost completely away, and
although the line of depositors stood
in front of the bank until the close
there was not the slightest disturb
ance. The paying of depositors will
continue as long as claims are pre-
sented Shortly after noon it was
announced that all of the officers and
directors of the Chicago National had
resigned, with the exception of G. K.
G.. Billings, who is out of the city
Walsh's place was filled by the selec-
! ton of Bank Examiner Bosworth and
| committee was selected by the
clearing house to act as directors in
place of those resigned.
| incompetent.