Reporter and farmer. [volume] (Webster, Day County, Dakota [S.D.]) 188?-1946, 1905-12-28
GO OUT OF BUSINESS
TWO CHICAGO BANKS AND ONE
TRUST COMPANY FORCED
TO LlouIDATE.

Chicago, Dec. ts.-Three of the larg
est financial institutions in the West
the Chicago National bank, the Home
Savings bank and the Equitable Trust
all of them controlled by
John II. Walsh of this city and In great
measure owned by him, suspended
operations during the day. 1neir af
fairs will be liquidated as rapidly as
possible and they will go out of bust
ness.
Mr.. Walsh, who was the president OF
the Chicago National bank and the
Equitable Trust company, and all the
other officers of the Chicago Nationa
bank have resigned. National Bank
Examiner G. II. Bosworth has succeed
ed Mr.. Walsh at the head of the Chi
cago National bank and the places :
the directors have been filled by me-
appointed by the Chicago Clearing
house. Back of the new management
stand the allied banks of Chicago. who
have pledged their that
every depositor shall be paid to the
lat zen and that not any customseI
of the three institutions shall lose any
thing by the suspension. Had no this
action been taken by the banks of the
city, a disastrous panic might have fol
lowed In this city and throughout the
country. AS II was the only effect up
on the financial world In this city was
the decline on the local stock exchange
of 2h in the price of National Biscuit
common stock, which has employed
the Equitable Trust as transfer agents
and had besides dealings with the Chi
cago National bank. but II is not af
fected by the failure in the slightest
degree. The clcsiag of the two banks
had the effect also OF shutting off all
demand on the local exchange of bank
stock, none of them being purchased
Cause Of the Collapse.
The immediate cause of the collapse
Of the institutions controlled by Mr..
Walsh is said TO be the large amount
OF money which they have loaned to
various private enterprises OF his
notably the Southern Indiana railway
and the Bedford .Quarries company Of
Indiana. Mr.. Walsh claims that If he
could have had more time and been
left untrammeled in his operations he
could have saved his banks and made
enormous profits for himself and his
associates. He bases this statement
on his W estimate of the value of the
bonds of the Southern Indiana Rail.
way company.
The comptroller, the state auditor
and the members of the Chicago Clear.
house committee place the value Of the
bonds at one-half of the valuation OF
MIR. Walsh and 1t was their refusal tt
accept his valuation that caused the
suspension of the banks.
The liabilities Of the three institu.
lions are estimated In the aggregate at
SIC. 100000. Against this amount the
banks and the trust company have re
sources that are on a conservative esti
mate worth SIG. 1000 900. The bonds OF
the Southern Indiana railway company
are estimated by MT. Walsh as beine
worth $4,000, 900. They are consid-
cred by the comptroller. state auditor
and the Clearinghouse committee to
be worth a little more than half that
sum-. Their value Is a matter TO be de
fermined In the future and the prest
dents OF the local banks admit that II
the estimate of Mr.. Walsh Is found to
be correct. the two banks and the trust
company will not only pay all OF their
debts but leave a surplus besides. The
directors of the two banks and Mr..
walsh. who has turned over all Of his
private properly As well as that stand
Ing IN the name OF Mrs. Walsh, have
pledged real estate and securities
valued at $4,000. 900. and estimating
the railroad bonds at $4,000, 900 more,
making . total OF $29. 100000 assets,
against 81, o00. 900 liabilities.