Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-20
THEIR. WALSHFAILURE
d. K. PEARsoN's UNIQUE ExPLA-
NATION OF BANKERS BREAK.


lar note heard thus far concerning the
Walsh failure comes from d. X. Pearson,
philanthropist and stockholder In the Chi
cago National Bank.
Mr.. Pearson's enjoyment Of what he calls
''Walsh's decline and fall off" is due to his
unshaken belief that the new directorate
will bring both depositors and stockholders
through without loss. That much conceded,
the college benefactor takes the position
that his $4,000 tied up in 1872 shares emit
ties him to whatever humor he can find in
the situation.
John R. Walsh was a mighty smart man.
but no banker" said Mr.. Pearson last
night Friend John certainly has mixed
things up. He was altogether too sanguine
to make good banker. and now he is reap
ing the result.
! "Of course. would not be talking like
this If I did not believe that everybody
would come out OF It unsoathed. People
can say what they have mind to, but l..
who have known John R. Walsh for forty
five years, know that he is an honest man
and that his investments ultimately will
pan out all right.
Lets take things coolIy and go slow. At
any rate. that Is going to be my motto. not
withstanding the liability entailed in my 1872
shares. That committee of Chicago bank
ers is doing a magni3cent piece of work,
and the fact that 1t has undertaken to
straighten out Johns affairs supports my
belief that genuine and sufficient assets are
there
''Poor John, I have known him ever since
he kept that dinky little news stand on
Dearborn street. His only mistake has
come rather late in life. If he had stopped
getting richer and tried to give away his
money the way l have he still would be a
rich man."
No Bad Effects From Failure.
"other banks and financial circles in gen.
eral in Chicago cannot possibly feel any
bad effects from the failure of the Walsh
banks" said James B. Forgan, president
Of the First National Bank and of the Chi
cago Clearing House Association, last night.
'In guaranteeing the deposits of the three
banks the other banks of Chicago have
taken no unusual action. They have not
assumed any great liabilities. In fact, the
actual liabilities assumed by the bank is
comparatively trivial-not more than Is met
in an average days business.
There is no other bank In Chicago in
the condition which caused the downfall of
John r. Walsh's institutions. No other
bank can be subjected to the criticism that
fits president Is engaged in other lines of
business as Walsh was,
'Of course every Chicago bank has busI-
ness men on it's directorate. 1t is so all
over the world. But with all these business
men as directors In the Chicago banks, no
other bank Is using it's fund for outside in
vestments as We're these three.
Assets Will Go Far in Liquidation.
CHICAGO. December 20-James H.
Eckels. member of the clearing house
committee. which took over the properties
of John r. Walsh, expressed the opinion
last night that the assets will liquidate for
much more than was expected on Monday
when the transfer was made. Mr.. Eckels
said:
1.-THE assets of the Walsh banks. and par
ticularly the National Bank, will liquidate
for much more than was anticipated when
the transfer took place Monday morning.
The eagerness with which many rich cor
porations have sought to obtain first OPP
tions on certain properties. bonds and
stocks has convinced the directors of the
Chicago National Bank that the Walsh
holdings are Of immense value.
'All things considered. believe that John
r. Walsh is a long way from exclusion
from active participation In the world OF
affairs said Mr.. Eckels. 'It is quite GER
tain he will emerge q man Of means and
will be able to re-enter the arena with a
comfortable fortune behind him. His hold
ings are large and varied. Information that
has come to me from private sources makes
me certain that number Of important IN
terests are maneuvering to obtain posses
sion of some of the best OF them. / ex-
pect these interests are looking with long
Ing eyes toward the railroad stocks and Sc
curities. but / am not informed specifically.
THE clearing house committee, IN sur
yeying the field OF the Walsh interests,
placed an extremely conservative estimate
upon their value. This was prudent. My
personal Judgment Is that our anticipaticns
cash return for these assets will be very
large. These stocks cannot be realised upon
Immediately, but they will be marketed as
soon as the other assets are disposed Of