The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-12-18
FINANCIAL CRASH IN CHICAGO

amount S454000 are deposits in trust |
and 100000 in certificates of deposit. !
The Chicago National bank has been I
an active factor in local politics for sew /
era1 years, and the enormous funds re- |
ceived from the taxation for the build |
ing and maintenance of the drainage
canal have been a part of its deposits /
ana have been available for inVeStmen !
by the bank. A change was recently |
made in the political complexion of the /
board and it was understood that these
funds would not remain for any length !
OF time as deposits in the Chicago Ma /
tionaI bank Their impending with !
dTawal had much to do with the fear
of the other banks of a far reaching !
collapse if they did not come to the aid
OF the weakened Institutions.
Walsh's Operations.
The enterprises which are generally |
credited with being the indirect cause
of the financial troubles of Mr.. Walsh
are the Bedford Quarries company of
Indiana, and the Southern Indiana
Railroad company, which was con-
structed by Mr.. Walsh for the purpose |
of getting the stone from his quarries |
to the market. This railroad was con- |
structed by Mr.. Walsh at d heavy ex-
pense some years ago. because he be-
Heved that the Monon railroad, which
was the only outlet of his stone quar-
rleS, was charging him too high a rate
of freight. He endeaVored to reach an
agreement with the road, and failing to
Z
terms constructed a railroad Of his own.
In addition to these two enterprises |
which he practically owns, Mr.. Walsh
is a heavy stockholder in the Akron
Gas company, Akron o., Illinois
Southern Railroad company and Rand, 4
McNally company, Southern Indiana
Express company and a. half score of
gas, electric lighting and coal mining
companies. To the stone Quarries and
the Southern Indiana railway Mr..
Walsh made heavy loans of the funds
of the bank and it was these to which
objection was made by Comptroller
Ridgley.
Repeated assurances by the officers
of the bank that these loans would be
called in, or at least largely curtailed
were not fulfilled and finally Mr..
RidgIey determined on d personal in
vesigatiOn. The action of last night
followed his determination.
1t is declared by local 6nanciers that
Mr.. Walsh has invested all the way
from $4,000, 600 to SIS, 100000 in the
quarries and the railroad His great
desire was to gain for the railroad an
entrance into Chicago but in this he
was not successful. During the last
three years he has endeavored to sell
/ the road to the Pennsylvania company
but the terms could not be agreed upon
and the sale never could be put
through.
A Tremendous Surprise.
To the public at large, which was
not acquainted with the magnitude of
I Mr.. Walsh's enterprises, the news of
the difficulties surrounding his banks
came as tremendous surprise. Not
4 a word of the difficulties had reached
/ the public Saturday night and the first
information was conveyed by extra
/ editions of the morning papers.
Two hours before the time for the
/ opening of the bank large crowds of
] people who had money in the Chicago
National and the Home Savings bank
! -ear-aa u cd in n
/ waiting for the doors to open so that
they might withdraw their funds
Inside the banks ample provision
/ had been made for the impending
run, money was laid out in large piles,
and additional clerks were stationed at
| the paying windows and arrangements
| were made in other parts of the bank
] to pay out the money as fast as it was
ger for another bank, who had $4,000
] in the Home Savings bank, was the
first at the door and he held the head
! of the line when the doors were opened
and the rush began at 10 o'clock. It
| was announced by Vice President
+ Blount of the Chicago National bank,
I that all demands would be paid as fast
as they We're made, by the Chicago
National bank and the Horne Savings
/ bank. The latter has the right under
the state law to demand so days
notice of withdrawal from all deposi-
tors, but it was decided not to invoke
I soon as called for.
Officers and Directors.
The officers of the Chicago National
1 bank are:
President. John r. Walsh; vice
president, Fred NJ. Blount; cashier, T.
/ NJ. Jackson.
The directors are: F. c.. McNally.
John r. Walsh, F. NJ. BlOunt, John M.
/ Smythe, w. Best c. K. G.. Billings,
Maurice Rosenfeld.
The officers of the Home Savings
bank are:
W. J. Onahan, president; Charles E.
/ Schick, cashier.
The directors are: C. K. G. Billings,
Maurice Rosenfeld. John M. Smythe,
/ w. J. Onahan, William Best, F. G. Nc
/ Nally, John r. Walsh.
The officers and directors of the
/ Equitable Trust company are prac-
tically the same as those of the two
! banks.
Mr. Walsh kept to his home this
morning and declined to see anybody.
He has not been we'll for number OF
days and neither yesterday or today
| would he leave his room Callers at
| his residence we're referred to the bank
for all information. and to the request
for a statement which was sent to him,
I Mr. Walsh sent back word: L have
nothing to say. Any statement that is
to be made will come from the clear
ling house association.
WALSH PROTESTED.