The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1905-12-22

NlrS. w tllSll llaNS lQIltSNt "
the officials of the clearing house
all of their property.
New York, Dec. 1S.-News of the
i~nsolvencics OF Important Shleaso
trading institutions came with a
great shock to Wall street this
morning and conclusive liquidation
of stocks made wild work Win
early quotations. Holdinges of GER
tain stocks were thrown over for
any price they would bring. ~ de-
cided panicky feeling prevalisd'
lawson, Amalgamated Copper de-
clined ~ points; Union Paciiic. rs,
and almost the entire list showed
losses of / to 3 points. The market
was enormously active during the
first hour but by that time liquida,
ton had spent its first lnry ana
there We're some wide recoVerleS.
Chicago, Dec. 2o.-Action has been
taken by Comptroller of the Currency
Ridgely that will compel the Chicago
National and Homo Savings banks and
the Equitable Trus company, domi-
mated by John r.. Walsh, of this city,
to wind up their affairs. Other ma
tional banks of the city have come TO
thority of the clearing house a%ssocia-
ton, the comptroller and also by Off
GERS of the Chicago National bank that
not a single depositor will lose a cent.
Difficulties of the three banks. Which
are practically branches of the same
Institution, are attributed by the comp
troller to large cams made by the Chi
cago National bank to railroad, coal,
mining and other private enterprises
controlled by Walsh.
Warned by Ridaely.
Some time ago the comptroller called
attention of the officers of the banll
to the fact that they We're making loans
<0 thoco npfornriSnS of Walsh which i'm
his opinion, were too large for the safe
ty of the institution.
Repeated promises We're made that
the situation should be rectified, but no
action satisfactory to the comptroller
was taken. Three days ago he came tic
Chicago for the purpose of making al
investigation into the affai.J of the
1 three banks and oun them in such
4 condition that he judged immediate ac-
ton to be necessary.
Other Banks to the Rescue.
officials of different Chicago banks
were told of the situation n a aur-
,ied call was sent on for a meeting OF
representatives of the Chicago Clear
ing House association and officers OF
city banks. The meeting W. called To
order at 9 o'clock yesterday Afternoon
and was in continuous session until
O'Clock this morning.
Careful nva of the situation re-
II GdlGu lilC AilicG5O -NJllpilSil stlA JeS
deposits to AN rnoun of $16,00 eco AND
The Home Savings mad deposits OF
Sd, 600, 900, divided among 5000 deposit.
OrS.
Extent of the Failure.
The liabilities of the two banks anG
of the Equitable Trust, were roughly
! estimated at SIG, 900, 600. Assets of the
three institutions made up about S2o,-
900, 0GD of this amount and the directors
and officials of the Chicago Nationa
bank came to the ront With securities
amounting to about three millions moro
\ This left a deficit of about $1,000, cot
to be faced, and Chicago banks repre-
sented at the meeting declared at once
they would meet the situation II care
for the deficit. If it proved necessary
to advance any more than SIS. GOO. coo t.
meet all demands. the banks pledged
themselves to make up the amount
whatever it might be.
Take Over Walsh's Property.
1t was also arranged in addition 4
viz up the affairs of the three
institutions. and the allied banker!
should take all of Walsh's private en-
terprises, including. coal mines, rail
roads and stone quarries.
vt the close of the meeting, Comp
troller Ridgely issued he following
statement:
Rideely's Statement.
1.-THE action of the clearing hons,
banks in coming to the aid of the in
solvent institutions has relieved I
most critical situation. which, il it l1at
not been taken promptly in hand, Nigh
have led to very serious consequences
not only in Chicago but elsewhere. Tn,
action of the clearing house bank;
makes it absolutely certain all creditors
will receive their honey immediatel,
and should thus relieve any apprehen
s1 ON Inc ~ ppt of $hn y,rI1i1 Il, ,,o.r =.
to financial troubles in Chicago. Thu
critical situation in which these thre
concerns has been placed has been du,
to large loans made to railroad, Goa
mining and other enterprises owne,
and controlled by Walsh. This agai,
emphasizes the LANCER of managing of
ficers of banks being interested in out
side institutions requiring larg,
amounts of money. The comptroller
office has for some time been criticism:
the Chicago National and calling upol
its officers and directors to reduce TIL,
amount of these loans"
Analysis Of Condition.
Chicago, Dec. 1S.-'rhe Chicago Ma
tional bank was organized in Noyem
Der, 1881. and has a capital OF 81, oOO,O OC
Its resources. according to the latest re
port, made to the comptroller, are $2i.
10000 of which nearly $11. 600. 900 ar
loans and discounts, with 81, 600, 900 casl
ON hand. The liabilities include nearl,
IL .0OO.0O0 in individual deposits ant
81, 100000 due to other banks.
The Home Savings bank was rgan
lied in 1867, with a capital of 500, O0G
Late reports show it's resources to b
81, 232, 900. of which 49, 1924 900 is report
ed as being held i'm municipal, %railroa,
and other bonds. Savings deposits ag
gregate 1888, 900.
The Equitable Trust company wa
n -, 4~a1 in VI co. 81 r,, ~ ~ . cSon nnA :.
sources of s4.6l2.ooo: liabilities. includ