The Tupelo journal., 1906-01-05
WALSH CONCERNS
EMBARRASSED
John R. Walsh, the Chicago Multi
millionaire, Forced to Assign.
TOO MANY IRONS IN THE FIRE
Three Financial Institutions In
volved, But tlae Other Banks Have
stepped Into the Breach and
Have Averted q Crash.

ItlNG hvCEtcu ~ ~
Chicago, Dec. 19.-Three of the high
est financial institutions in the west,
the Chicago national bank, the Home
savings bank and the Equitable Trust
Co., all of them controlled by John r.
Walsh, of this city, and in great meas
ure owned by him, suspended operations
Monday.
Mr.. Walsh, who was the president of
the Chicago national bank and of the
Equitable Trust Co. and all the other
officers and all the directors of the
Chicago national bank have resigned.
Examiner BoswOrth in Charge.
National Bank Examiner Bosworth
has succeeded MIR. Walsh at the head
of the Chicago national bank, and the
by men appointed by the Chicago
clearinghouse. Back of the new man
agement stand the allied banks of Chi
cago, who have pledged their
that every depOsitor shall be paid to
the last cent, and that no customer OF
any II of the three institutions shall
lose anything by reason of the suspen-
sion. Had not this action been taken
panic must have followed in the finan-
cial world. AS it was, the only effect
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 agent, and had, besides, deal
ings with the Chicago national bank,
but is not affected by the failure in the
slightest degree. The closing of the
two banks had the effect also of shut
ting off all demand on the local ex-
change for bank stocks, non of them
being purchased.
The 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 Co., of In
diana. Mr.. Walsh claims that if he
could have had a little 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 state
ment on his estimate of the value OF
the bonds of the Southern Indiana Rail-
road Co. The comptroller, the state
auditor and the members of the Chi
cage clearinghouse committee place the
value of the bonds at one-half the valu-
alton of Mr.. Walsh, and it was their
refusal to accept his valuation that
caused the suspension of the banks.
The Aggregate Liabilities.
The liabilities of the three institu-
tions are estimated, in the aggregate, at
$26, 900, 900. Against this amount the
banks and the trust company have re-
sources that are on a conservative esti-
mate worth $16,o 900. The bonds of
the Southern Indiana Railroad Co. are
estimated by Mr.. Walsh as being worth
SIG, 900, O00. They are considered by the
comptroller, state auditor and the clear
inghouse committee to be worth a lit
tie more than half that sum. Their
value is a matter to be determined in
the future, and the presidents of the
local banks admit that if 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
of the two banks and Mr.. Walsh, who
has turned over all his private proper
ty as well as that standing in the name
of Mrs. Walsh, have pledged real es-
tate and securities valued at $4,000, 900,
and estimating the railroad bonds at
5 5000, 900 more, making a total of $685.
000, 600 assets against $26, 000, 900 liabili-
ties.
Personnel of the institutions.
The officers of the Chicago national
bank were President, John R. Walsh;
vice-president, F. M. Blount, and the
directors were: John R. Walsh, F. NJ.
Blount, F. G. McNally, John M. Smith,
William Best, C. K. G. Billings, Maui
rice Rosenfeld. The deposits in the
bank were $14,493 900, and there was
due to other banks $2,O38, 1851.
The officers of the Home savings
bank were: President, William j. Ona-
han; vice-pres:dent, Maurice Rosenfeld.
The directors we're: c. K. G. Billings,
Maurice Rosenfeld, John M. Smyth, w.
j. Onahan. William Best, John r.
Walsh.
The officers and directors Of the
Equitable Trust Co. were PARTIALLY the
same as those of the Home savings
bank, with the exception Of MI. Walsh,