Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-06-21
TilIman's Scheme Fails.

Senator Tillman spoke to these syl-
logisms in the senate yesterday. He
sought to force the senate finance COM
mittee to report favorably his resolu-
ton providing for an investigation Of
the Walsh failure and the action of the
clearing house of Chicago in prevent
ing that failure developing into a
panic Before the .ession closed, he
knew he had failed. Senator Aldrich
made it clear that he was opposed to
any such investigation, and the finance
committee will make an unfavorable
report upon the Tillman resolution.
But Senator Tillman succeeded in
rasping the feelings of both Senators
Aldrich and Hopkins of Illinois in say
ing some mean things about John R.
Walsh and the controller of the cur
rency, and in putting in the Congress.
sional Record the evidence given be-
fore the house committee on banking
and currency by President Fenton and
a letter he had received from Mr..
Kent
Mr.. Fenton appeared before the
house committee on May rs and told
the inside story of the way the banks
of Chicago came to the relief of the
Walsh institution. Not a member OF
the clearing house, he declared, had
suspected that there was anything
wrong with the Chicago National
bank. The immediate cause of the
| failure Of that concern was overloans
to the concerns in which the president
of the bank was interested.
Correspondence was shown at thai
meeting" continued MI. Fenton
(which ran back over a period of three
years-and I am not saying this tt
cast reflection upon the controllers
department, or on any of the exami
ners or ofTicials-but here are the
facts: that three years before thai
bank closed the controllers depart
ment knew that the institution hat
loaned $5,000,000 to concern in which
he (Walsh) was interested; and by thu
night we took over the assets hi
(Walsh) had used s15,o00,000 of tn.
assets of that bank.
''And here is one of the results 0
familiarity with the violation of THU
law. 1t had been done so long, ant
! had been overlooked and temporizet
with until it grew and grew and final
| ly absorbed the entire institution: ant
we were called upon, in order to main
tain the financial integrity of our city
to liquidate that institution and to TAX
! it's assets and assume it's debts"
Then Senator Tillman talked alon
the lines which Mr.. Fenton followe
in his evidence, and cited Kent's lei
ter. declaring the transactions of job,
R. Walsh were criminal in som
phases and in others possibly tn
transgressions were not punishable b
law, although he believed the ban
should be liquidated and closed up an
cease business as bank.
Senator Aldrich protested agains
Senator Tillman pronouncing judgmen
when the department Of justice wa
taking measures to determine wha
criminality, if any, had been con
mitted and to punish the person
charged with guilt.
Senator Tillman replied he did nc
think it justifiable for the senate con
mittee on finance or it's chairman t
pooh-pooh the transaction and to sa
no harm had been done, no law viola
ed, and that everything was sweet an
wholesome when he could prove thu
Walsh had in several instances vi,
lated the criminal law and that th
|lentire Clearing House association {