Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-12-18

ana IN order to prevent further en-
croachments. II was necessary for the
comptroller to take radical action. The
comptrollers office has for some time
been endeavorlng to make an examlna-
ton OF the Chicago National hank
simultaneously with an examination
or the state institutions by the state
Dank examiner but was not able to
bring this about until few days ago.
The result OF these examinations re-
vealed such a serious condition that 1t
was necessary to take immediate ac-
ton. The comptroller telephoned from
Washington instructlng Bank Exam
liner Bosworth 10 bring the matter at
once to the attention of the clearing
house committee and left for Chicago
on the first train TO be on hand to per-
sonally take whatever action was neces-
sary. On the arrival OF the comptrol-
Ter IN Chicago a conference was imme-
diately held with the state authorities
and the clearing house committee which
continued from 10 o'clock Sunday morn
ing until o'clock Monday morning.
In addition to the clearing house COM
mittee representatives Of all the clear
ing house banks We're called into the
conference about o'clock Sunday
evening. The comptroller feels great
credit Is due not only TO the clearing
house committee but to all the other
clearing house banks for the prompt.
vigorous action and the broad minded
spirit shown in meeting the emergency
CHICAGO NATIONAL BANK.
The Chicago National bank was or
ganized in November, 1881, with an
authorized capital OF 100000. which
was increased TO 100000 In 1887, and
$1,000, 900 in 1901
Its resources according to the last
statement filed with the comptroller OF
the currency, were s2l 900 600, Of which
nearly Sill 100000 was in loans and dis
counts. with 100000 in cash on hand.
The Individual deposits are about sli,-
100000 in individual accounts, and ST.
100000 due to other banks.
The Home Savings bank was organ
tied In 1867 with a capitalization OF
100000. II existed for many years as
an Independent institution, and about
IL years A go became a part of the Chi
cago National bank II was primarily
a savings institution. Its last report
showed resources of 81 23Oo 600, for the
most part in railroad and municipal
bonds. The savings deposits aggre-
gate S3.9S300O.
EQUITABLE TRUST COMPANY.
The Equitable Trust company was
chartered in 1887 TO act as adminstra-
tor, executor, trustee and to receive
anu execute trusts o. evepy character.
The capital stock is 100000. and the
resources are s4,6i2,00O, The liabilities
include s2,7O7, 563, of which amount
s45i,000 are deposits In trust and $780,
o0O in certificates of deposits.
IN LOCAL POLITICS.
The Chicago National bank has been
an active factor in local politics for
several years. and the enormous funds
received from. the taxation for the
building and maintenance of the drain
age canal have bean Il part OF its de-
posts and have been available for in
vestment by the bank. A change was
recently made in the political COM
plexion of the board and 1t was under
stood that these funds would not re-
main for any length Of time on deposit
In the Chicago National bank. Their
impending withdrawal had much to do
with the fear OF the other banks of a
far-reaching collapse If they did not
come to the aid OF the weakened in
stitutions.
CAUSE OF wALSH'S TROUBLES.
The enterprises which are generally
credited with being the indirect cause
of the financial troubles of Mr.. Walsh
are the Bedford Quarries. company OF
Indiana, and the Southern Indiana
Railroad company which was con-
structed by Mr.. Walsh for the purpose
of getting the stone from his quarries
10 the market. This railroad was con-
structed by Mr.. Walsh at a heavy ex-
pense some years ago, because he be-
lieved that the Monon railroad which
was thef only outlet OF his stone quar-
ries, was charging him too high a rate
OF freight. He endeavored TO reach an
agreement with the road, and failing to
obtain what he considered satisfactory
terms, constructed a railroad of his
own. In addition TO these two enter
prlses, which he practically owns, Mr..
Walsh is heavy stakeholder In the
Akron Gas company, Akron, Ohio; IL
linois Southern Railway company,
Rand McNally & Co, Southern Indiana
Express company. and half score Of
gas, electric lighting and coal mining
companies. To the stone quarries and
the Southern Indiana railroad Mr.,
Walsh made reputed heavy loans OF the
funds OF the bank. and Il was these
to which objection was made by Comp
toller Rldgey. Repeated assurance by
the officers OF the bank that these loans
would be called In. or Mt least largely
curtaiied. were not fulfilled, and finally
Mr.. Rldgley determined on n personal
investigation. The action OF last night
followed his determination.
II Is declared by local lnanciers that
Mr.. Walsh has inverted all the way
from s., 600 ono TO SIS 100000 in the quar-
ries and the railroad. His great desire
was to gain fer the railroad an entrance
into Chicago. but In this he was not
successful. During the last three years
he has endeavored to sell the road TO
the PENNSYLVANIA company, but terms
could not be agreed upon and the sale
never could be put through
To the public AT large which was not
Acquainted with the magnitude Of Mr..
Walsh's enterprises, the news OF the
diflculties surrounding his banks came
ms a tremendous surprise. Not a word
of the difficulty had reached the pub
lie saturday night, and the first infor-
nation was conveyed by extra editions
of the morning papers
CROWDS BEFORE BANK.
Two hours before the time for the
opening OF the bank large crowds OF
people who had money In the Chicago
National and the Home Savings banks
were gathered IN front OF the banks
waiting for the doors to open so that
they might withdraw their funds
Inside the banks ample provision
has been made FOR the impending run.
money was laid out In large piles. adj
ditional clerks were stationed ne the