Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-06-18
METHODS OF THE BANKS
MR.. TILMANs RESOLUTION PRO
vmINa FOB INQUIRY.

Senator Tfllman again today called up his
resolution providing for an investigation of
| tho question of bank contributions to
political campaigns. and also relative 10 the
recent failure OF the Chicago National
Bank.
| Speaking to the resolution, Mr.. Tillman
| said that Senator Aldrich had waved aside
| the resolution on the ground that the Sem
are had recently passed a bill prohibiting
| the banks from making campaign contribu-
1 lions, but Mr.. Tillman contended that such
| action on the part of the Senate was not
sufficient. Believing that the banks were
the principal source of revenue of the re-
publican political committees, he did not be-
lieve that the House would pass the bill
| prior to the election of next fall. Hence he
| still felt the necessity for the investigation
| provided for by his resolution. He insisted
that the resolution should be retroactive,
bu. confessed that he had little hope In that
| direction.
THE bankers will get an immunity bath
! for past offenses." he predicted
Speaking of the Chicago bank failure, Mr..
hllman presented extracts from testimony
or Banker Fenton Of Chicago, taken by the
House committee on banking. to the effect
that the disaster was due to loans made by
| the bank to concerns In which the presi-
| dent Of the bank John R. Walsh was in
| terested. He claimed that this testimony
| showed that the controller of the currency
had known for months before the failure
| that the bank had in effect loaned S15oOOOOO
| to its president
Senator Aldrich charged Mr.. Tillman with
an eHort to try the case against Mr. Walsh,
saying that the matter was now In the
| hands of the Department of Justice
Mr.. Tillman replied that he desired only to
| secure an inquiry, adding that Mr. Aldrich
should not pooh-pooh his efforts and claim
that everything In connection with the Chi
cago bank is wholesome and sweet, when
| 1t Is known that some of Mr., Walsh's acts
have been criminal"
Mr. Tillman referred to a report that
MT walsh was contemplating a trip to
Europe. but said that instead of permit
ting him to pursue that course the district
attorney should press the case against
him and thus ascertain the truth or the
Ialslty OF the charges against him. He
declared 1t to be the custom of the con-
troller Of the currency to minimize wild
cat banking until 1t became too late to
apply remedy.
Senator Hopkins Defends Walsh.
Senator Hopkins replied that Mr. TILL
man had been misled by irresponsible
Chicago men. and declared that the South
Carolina senator's "tirade" had proved an
other illustration of the fact that "a little
learning is a dangerous thing"
He charged the South Carolinian with a
desire to injure the Chicago banks and to
exploit himself. IT say to the senator,
that he could not serve Wall street bet
get control Of the Walsh interests" He
again declared that the transactions in
Chicago had been entirely straightforward
and honorable. He said that Mr.. Eckels
had informed him that not only depositors
and stockholders would be fully paid. but
that several millions in addition could be
saved, and defended Mr.. Walsh as for
many years one Of the great bankers of
the country. He had not investigated the
question as to whether Mr. Walsh had
violated the criminal law. but he knew
that Mr.. Walsh has stood ready right
along to meet any such charges
Letter From the Controller.
meets tomorrow Chairman Aldrich will lay
before 1t letter from Controller Ridgely
bearing upon the subject matter of the
Tillman resolution. The letter speaks at
length of the Walsh failures and commends
the acts Of the clearing house banks in as
Stunning the liabilities of these failed banks
and preventing a threatened panic In Chi
cago securities. The controller said he
had no knowledge as to whether the acts
of Walsh were criminal, but that this SUBJ
ject now is being investigated by the De-
partment of Justice.
AS to whetbersthe Ohio banks have "by a
secret and Illicit manner been soliciting
county fupdssas deposits the controller said
he has no Knowledge. He added that the
natioral BAn}ing laws would have to be
changehSfo >PSyrnit the Treasury Depart
and he advisAx Rainst any such change.
The letter gno&Ethat part of the resolu-
ton which direcGSEn mSuir,,into the sub
ject of whether The natNQnaD banks have
contributed TO political campaign COM
mittees. A copy of the letter was furnished
sumed that the committee would report his
resolution adversely.