The Cairo bulletin., 1905-12-19

Up TO this time the banks had been
examined separately, which enabled
them to transfer securities back and
| forth II was decided that the state
examiner and national examiner
should make simultaneous investi-
cation. This showed the institutions
had loaned a large amount, estimated
All the way from $4,000 600 10 $l5.
100000 On securities of the railroads
owned practically by Walsh alone. II
is said the paper for these loans was
signed by clerks, and thar they were
snbstantated by bonds of Walsh's rail
roads, the Southern Inriiana. Chicago
Southern which IL an extension of the
Southern Indiana, and Wisconsin and
Michigan
When the examiners had concluded.
their report. Walsh asked for a little
time saying he could raise the
money 10 straighten everything ont.
| He was no. successful and when
/ ccmptrollcr Ridgiey was informed of
Tho fact he came 10 Chicago. He called
a meeting of The Chicago clearing
| house and stated the situation The
meeting continued from three o'clock
| Sunday afternoon until five this. nom
ing II was thea announced by the
comptroller that he banks mad prac-
tically suspended, and that all de-
oosltors would be paid in fun By the
Sther banks Of the civ The state
| nent TO this effect was also made by
the Clearing house.
IN Chicago National bank HAD de-
| losits of sl4 .4S3.00o and there Is due
ther banks $203s.S5f. The Home
sa.ings bank had savings deposits
IF $4,000 The Equitable Trust
| company had outstanding certificates
| If deposit and accrued interest of
| II 2S9, 900 and deposits in trust Of
| 70 09G 500 There Il no question Of the
| availability Of the assets of the two
! after institutions and only IA doubt
| Is @ tn value OF the bonds OF the
| Southern Indiana railroad among the
| securities held by The Chicago Ma
! ional
| Around The Chicago National there
vas no disturbance during the day.
| There was run on the bank bur il
| vas OF a quiet order Business men
| who called at the bank TO inquire into
| conditions were told they could with
| lraw their money al any time they
| ,leased. that the bank was open for
! he transaction Cf all business save
hat of taking in money or making
oans All checks presented az the
windc,y of the paying qua we?eI
| promptly paid in cash. and many
1ther balances We're drawn out by de-
1osit in other banks. passing through
he Clearing House in the ordinary
way. Savings deposltors of the Home
Savings did not take the situation
rs calmly. and by the time the doors
we're opened there was a long line
waiting 10 withdraw accounts. All nc
counts were liquidated as soon az pre-
ented. Within an hour after the open,
ny OF the bank the excitement had
lied almost completely away and nj
hongh a line OF depositors stood in
front of the bank until the close there
was not the slightest disturbance. The
saying off of lepositors viii continue
a long as claims are presented,
Shortly after neon II was announced
hat all OF theoffcers and directors
Of the Chicago National bank had re
signed, with the exception Of c. X. G.
Billings. who Is ont Of che city
Walsh's place was filled by the selec-
ion of Bank Examiner Bosw1rth AMI
a committee was selected by the
Clearing House tc act as directors in
place Of those resigned. Local finan-
ciers place Walsh's troubles at the
door of the Southern Indiana railroad
\ number Of years ago he purchased
the Bedford stone quarrias In Indiana
The shipping outlet for The quarries
was not as good as he desired and he
oon became involved in arguments |
with the Monon. and the Chicago ana |
Eastern Illinois gailroats, declaring |
thar they were charging him rate of |
freight arbitrarily high He prac-
tically constructed the Southern IN
diana road the line Of which lay near |