Durango semi-weekly herald., 1905-12-21
general impression is that a convic-


! National bank. Home Savings ban
! and the Equitable Trust company. IL
stitutions controlled largely by Joh
X. Walsh, did not open for busiues
today.
The Chicago clearing house. after
twelve-hours session early this morn
ing announced that these institution
are bankrupt, but that the Chicag,
associated banks guaranteed every liza
btlity and would pay every claim.
Hundreds of people gathered abou
the buildings sheltering the defunc
institutions. Walsh had been ratec
as one OF the wealthiest men OF Chi
cago. Private speculation, operation.
In railroads, coal lands. quarries anC
other side lines caused the iinancia
collapse. The Chicago National banl
Will be placed in the hands of a re
ceiver. The Savings and Trust com
panies go into state hands. There is
said to have been SIS 900. 900 In public
moneys deposited in the institutions
The total liabilities of the three in.
stitutions are s26,OO0.0OO. Walsh and
his associates have turned over 49,.
100000, and the local bankers will
make UP the deficit between liabili.
ties and assets If there are any. J. c.
Cooper. speaking for Walsh. said the
depositors would be paid in full. The
loss, if any, will fall on the stock.
holders.
The depositors formed In long lines
and were paid in checks on other
banks. Comptroller Ridgelick Saws the
trouble was caused by Walsh making
large loans on industrial and railway
enterprises
walsh once owned the Evening
Times and the Evening Post, but sold
both and acquired the Chicago Chron-
icle, which he still controls. The PRO
motion of the Southern Indiana rail
road was blamed largely for the col
lapse. The Chicago National bank
has been factor In local politics for
many years.
Later advices show that the Chica-
go National bank had about 5000.
900 on deposit when the last state
'"~'' 'Nn ne nome SAVINGS
bank had nearly 100000. Walsh re-
signed as president of the former in
stitution today.
AT noon the depositors extended a
block away from the banks.
WASHINGTON, Dec. I8. The
comptroller of the currency aas made
statement saying: THE action OF
the Chicago clearing house banks in
coming to the aid of the Chicago Ma
tional bank, the Chicago Savings bank
and the Equitable Trust company, has
relieved most critical situation. If
it had not been taken promptly in
hand 1t might have led to very seri-
GUS consequences, not only in Chicago
but elsewhere. All the creditors will
now be paid" '
The comptroller's officers had been
trying for some time to make an ex-
animation of the Chicago National
bank, hearing that Mr.. Walsh was
making loans to private enterprises.
not always safe. Repeated promises
were made that the situation should
be rectified, but no action satisfactory
to the comptroller was taken. so Mr..
Ridgely went to Chicago and yester.
day brought the matter strongly be-
fore the associated banks, with the re-
suit that drastic action was taken this
morning.
NEW YORK, Dec. Is.-The result
Of the failures Of the Chicago banks
this morning put Wall street in
panic, Notwithstanding the report that
the clearing house banks of Chicago
stood together 10 avert national dis
aster. The stock market went all to
pieces and liquidation of stocks was
general. The biggest breaks were
made I'm copper. Amalgamated fell
from 100 to so, Union Pacific dropped
from 144 to 14l and Brooklyn Transit
from s8 to SO. The losses In all the
stocks were noticed. The market was
enormously active. Later in the day
the enormous losses stopped. Copper
rallied, running back to 80, and the
other stocks moved up from one to
TWO points. 1t was found late in the
day that the furries we're due entire
ly to the stock gamblers and there
was no reason for the panic after the
Chicago clearing house had come to
the rescue Of the defunct institutions.
CHICAGO, Dec. 19.-When the
banking houses opened today the runs
which began yesterday at the Chicago
National and Home Savings banks
were continued and long lines of de
positors were formed. A large crowd
gathered in front of the Savings bank
before II opened and showed desper'
ately to gain entrance when the door
was unlocked. A hurry call to the
police station brought detail Of Of
fcers who forced the men into line
There are about 500 depositors now
| in line and It is believed the work oi
paying them will continue until the
Hast man is paid OF. probably by to
morrow night. United States Distric
Attorney Morrison and States Attor
ney Healey both said this mornint
lthat nothing concerning the affairs o
the banks had been called to their at
tention and no finger has been liftet
TO take John r. Walsh into custody
although 1t is admitted that excessive