3876. Home Savings Bank (Chicago, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
December 18, 1905
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
a6bd0f514d295311

Response Measures

None

Description

Contemporary newspapers (Dec 18–26, 1905) report runs/large withdrawals at the Home Savings Bank, its suspension on Dec 18, 1905 after examiners found large loans to John R. Walsh concerns, and a decision to wind up/quit business with clearing-house banks pledging to pay depositors in full. Multiple articles state the bank will close and liquidate.

Events (3)
1. December 18, 1905 Other
Newspaper Excerpt
The banks ... have concluded to wind up their affairs and quit business in this city. After a thorough and careful examination ... all of the depositors of these institutions will be paid in full upon demand ... the institutions have concluded to wind up their affairs and quit business in the city of Chicago, but ... depositors will be paid in full upon demand, the Chicago Clearing House banks having pledged themselves to this result.
Source
newspapers
2. December 18, 1905 Run
Cause
Bank Specific Adverse Info
Cause Details
News of large loans and entanglement with John R. Walsh's railroad/coal enterprises prompted depositors to withdraw funds.
Measures
Bank laid out large sums of cash and stationed extra clerks to pay withdrawals; Home Savings waived its statutory 60-day notice and paid demands.
Newspaper Excerpt
Two hours before the time for the opening of the banks, large crowds were gathered in front of the Chicago National and Home Savings waiting for the doors to open so they might withdraw their funds.
Source
newspapers
3. December 18, 1905 Suspension
Cause
Government Action
Cause Details
Comptroller of the Currency and examiners found serious condition due to large loans to Walsh enterprises; clearing-house and federal authorities arranged suspension and liquidation.
Newspaper Excerpt
In addition to the formal statement of the failure and the announcement that the banks involved, would not open their doors this morning... 'Depositors of the Chicago National Bank, the Home Savings Bank and the Equitable Trust company, are respectfully advised that their deposits will be paid in full upon demand.'
Source
newspapers

Newspaper Articles (24)
1. December 18, 1905 The Providence News Providence, RI
Article from The Providence News, December 18, 1905

Click image to open full size in new tab

Article Text

taken over on terms which will enable the three institutions to pay their depositors In full. "Mr." Ridgley, comptroller of the currency. and Captain Eubank of the auditor's department at Springfield, were seen and expressed themselves as greatly. pleased at the action of the Chicago banks and stated that it reflected great credit upon the Associated Banks of Chlcago, which have again indicated their ability to meet any emergency in a manner entirely satisfactory to the public." The meeting of the Chicago Clearing House association began at noon Sunday. Notices were sent to the members of the board by Mr. Forgan after it had been learned of the condition of the banks and the trust company. BEHIND CLOSED DOORS. Clerks were notified and fifty or more with ten stenographers hurried to the First National bank Behind closed doors the clearing house association began its work of finding a way that might enable them to ride the financial sea in safety. That a pante would be likely to follow was the first thought of the committee Resolutions were adopted and heads of other banks pledged themselves to give assistance. The amount involved in the failure would not be stated by the committee members. All information concerning the meeting of the committee was kept secret until 2 o'clock this morning and half an hour later the association gave the statement to the press The names of the committee who drew up the statement are: James B. Forgan, president, First National Bank, chairman; John G. Mitchell, president of the Illinois Trust and Savings Bank: Orson B. Smith. president of the Merchants Loan and Trust company: James B. Eckles president of the Commercial National Bank: Ernest A. Hamill, president of the Corn Exchange National Bank. DEPOSITORS NOTIFIED. In addition to the formal statement of the failure and the announcement that the banks involved, would not open their doors this morning. the following statement was made and signed by the clearing house committee of the Chicago Assoclated Banks: "To the public: Depositors of the Chicago National Bank. the Home Savings Bank and the Equitable Trust company. are respectfully advised that their deposits will be paid in full upon demand." RELIEVED CRITICAL SITUATION The following statement was given out later by Comptroller of the Currency WIIliam B. Ridgely: The action of the Chicago Clearing House banks in coming to the aid of the Chicago National bank. the Home Savings bank. and the Equitable Trust company, has relieved a most critical situation which, if it had not been taken properly in hand, might have led to very serious consequences, not only in Chicago, but elsewhere. The action of the Clearing House banks makes it absolutely certain that all the creditors of the three institutions will receive their money immediately and should thus relieve any apprehension on the part of the public in regard to the financial troubles in Chicago. The critical situation in which these three concerns have been placed, has been due to the large loans made to the railway, coal mining and other industries owned and controlled by Mr. John D. Walsh. This again emphasizes the danger of managing officers of banks being Interested in outside institutions, requiring large amounts of money. CONDITION CRITICIZED. The comptroller's office has for some time been criticizing the condition of the Chicago National bank, and calling upon its officers and directors to reduce the amount of these loans and the investments in bonds of Mr. Walsh's corporations. In spite of repeated promises that this should be done, these Items have been continued in the bank. and in order to prevent further encroachments it was necessary for the comptroller to take radical action The comptroller's office has for some time been endeavoring to make an examination of the Chicago National bank simultaneously with an examination of the state institutions by the state bank examiner, but was not able to bring this about until a few days ago. The result of the examinations revealed such a serious condition that it was necessary to take immediate action. The comptroller telephoned from Washington, instructing Bank Examiner Bosworth to bring the matter at once to the attention of the clearing house committee and left for Chicago on the first train to be on hand personally to take what-

2. December 18, 1905 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, December 18, 1905

Click image to open full size in new tab

Article Text

Public Dumfounded at Greatest Crash in Recent Years, BUT SOON REASSURED Other Houses Not Affected New York Stock Market Badly Shaken. Came as Great Surprise. Chicago, Dec. 18.-News of the difficulties surrounding the banks came as a tremendous surprise to the public. The first information of any trouble was conveyed to the people by extra editions of the morning papers. Two hours before the time for the opening of the banks, large crowds were gathered in front of the Chicago National and Home Savings waiting for the doors to open so they might withdraw their funds. Ample Provision Made. Inside the banks, ample provision had been made for the impending run, money laid out in large piles, additional clerks 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 called for. Vice President Blount of the Chicago National announced all demands would be paid as fast as made at both institutions, Waived 60 Days' Notice. The Home Savings has a right, under the state law to demand 60 days notice of withdrawal from all depositors. but it was decided not to invoke this rule. John R. Walsh kept to his home this morning and declined to see anybody. He has not been well for a number of days. Says Bank Has Not Failed. Controller Ridgely, in a statement issued at noon today, says the Chicago National has not failed or closed its doors. The bank is embarrassed by the investment of a large amount of its assets in unavailable securities, but other Chicago banks have guaranteed the payment of all claims against the Chicago National He says the latter will meet all obligations and pay every dollar immediately. Shaw Notified. Washington, Dec. 18.-Secretary Shaw received the following telegraphic report from Controller Ridgely at Chicago with reference to the failure of the banks this morning: "The clearing house guarantees the payment of all liabilities of the three banks which will liquidate and pay ev erything in full. Officers and directors will resign and be replaced by a clearing house committee and Examiner Bosworth, who will run the banks and conduct the liquidation. This should relieve the situation and prevent further trouble here or elsewhere."

3. December 18, 1905 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, December 18, 1905

Click image to open full size in new tab

Article Text

Lansburgh & Bro., 420 to 426 Seventh Street, WASHINGTON, D. C. Bank Failures. Chicago, Dec. 18.-The failure of the Chicago National Bank, the Home Savings Bank, and the Equitable Trust Company was announced early this morning by the representatives of the Chicago Clearing House Association, after a long session of 18 hours. The depositors of the three institutions will be paid in tull, the Chicago Clearing House banks pledging themselves to this purpose. John R. Walsh is head of the three institutions involved, and the trouble was brought about by investments in coal and railway enterprises of Mr. Walsh. The deposits of the Chicago National Bank are estimated at more than $16,000,000, and the Home Savings Bank has depos ts of more than $5. 000,000, belonging to more than 8,000 persons. The deposits of the Equitable Trust Company amount to more than $4,000,000. In addition to the formal statement of suspension and the announcement that the banks involved would not open their doors this morning, an announcement was made, signed by the clearing house committee of the Chicago Associated Banks, to the effect that deposits will be paid in full upon public monies on deposit in the Chicago demand. As earlyas 8 o'clock a a crowd began to gather in front of the banks waiting for the doors to open. John A. R. Walsh has resigned as president of the Chicago National Bank, and was succeeded by Charles H. Bosworth, National Bank examiner, whose investigations brought about the crash.

4. December 18, 1905 The Providence News Providence, RI
Article from The Providence News, December 18, 1905

Click image to open full size in new tab

Article Text

8 CHICAGO BANKS FAIL. DEPOSITORS WILL BE PAID (Continued from Page One.) the conference about 7 o'clock Sunday evening. The comptroller feels that great credit is due not only to the clearing house committee, but to all the other clearing house banks, for the prompt. vigorous action and the broadminded spirit shown in meeting this emergency. MR. WALSH VERY BUSY. J. R. Walsh, president of the failed institution. was very busy at his residence this morning and declined to be disturbed when called up over the telephone. His daughter, however, quoted Mr. Walsh as saying that all information concerning the failures, for the present at least, would be given out by the Clearing House assoclation. CAPITAL AND RESOURCES. The Chicago National bank was organized in November, 1881, with an authorized capital of $300,000, increased to $500,000 in 1887, and to $1,000,000, in 1901. Its resources, according to one of the latest reports made to the comptroller of the currency, are $21,000,000 of which nearly $11,000,000 are loans and discounts with $4,000,000 cash on hand. The liabilities include nearly $14,000,000 in idividual deposits $4,700,000 due to other banks. The Home Savings bank, was organized originally in 1867, with a capitalization of $100,000. A recent statement of the resources shows an aggregate of $4,232,271, of which $3,782,000 is reported as being held in municipal, railroad and other bonds. The savings deposits aggregates $3,982,653. The Equitable Trust company was chartered by the state of Illinois Aug. 27. 1889, to act as executor, administrator, trustee, guardian, assignee or receiver. and to receive and to execute trusts of every character. The capital stock is $500,000. Its resources are $4,612,351. The liabilities include $2,707,568. of deposits in trust: $454,324 certificates of deposit: $491,574 through various trusts. YESTERDAY'S MEETING. The meeting was called to order in the office of President Forgan of the First National bank at 3 o'clock yesterday afternoon and was in continuous session until 5 o'clock this morning, A careful canvass of the situation revealed that the Chicago National bank had deposits to the amount of $16,000,000, the Home Savings bank had savings deposits to the extent of $4,000,000, divided among about 8000 depositors. The Habilities of the two banks and of the Equitable Trust company were roughly estimated at $26,000,000. The assets of the three Institutions made up about $20,000.000 of this amount and the directors and officers of the Chicago National bank came to the front with securities amounting to about $3,000.000 more. This left a deficit of about $3.000,000, and the Chicago banks represented at the meeting declared at once that they would meet the situation and care for the deficit. If it is proved necessary toadvance any more than $5,000,000 to meet all demands. the banks pledged themselves to make up the same. The great difficulty confronting the bankers In the meeting was to arrange a legal settlement of the case in the very short time at their disposal before the hour of commencing business for this morning. It was finally arranged that

5. December 19, 1905 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, December 19, 1905

Click image to open full size in new tab

Article Text

in a syndicate to furnish a loan of $6,000,000 to Mr. Walsh ,to further expenditures on the Southern Indiana Railroad. The bonds of the company, however, did not sell as rapidly as expected and state and national bank examiners were appraised of the failure of the loan. Up to this time the banks had been examined separately which enabled them to transfer securities back and forth. It was decided that the state examiner and the national examiner should make a simultaneous investigation. This showed that the institutions had lent a large amount, estimated all the way from $10,000,000 to $15,000,000 on the securities of the railroads that were owned almost entirely by Mr. Walsh. It is said that the paper for the loans were signed by clerks and that the collateral was the bonds of Mr. Waish's railroads, the Southern Indiana and the Wisconsin and Michigan. When the examiners had concluded their report Mr. Walsh asked for time, saying that he could raise the money to straighten out everything. He was not as successful in this as he hoped to be. When Comptroller Ridgeley was informed of the situation he came at once to Chicago. Comptroller Ridgeley called a meeting of the members of the Chicago Clearing House and informed them of the situation. The meeting was held in the office of the president of the First National Bank and continued from 3 o'clock Sunday afternoon until 5 o'clock this morning. It was then announced by the comptroller in the following statement that the banks had suspended and that all depositors would be paid in full by the other banks of the city: "The action of the Chicago Clearing House banks in coming to the aid of the Chicago National Bank, the Home Savings Bank and the Equitable Trust Co. has relieved a most critical situation which, if it had not been taken properly in hand, might have led to very serious consequences, not only in Chicago, but elsewhere. The action of the Clearing House banks makes it absolutely certain that all the creditors of the three institutions will receive their money immediately and should thus relieve any apprehension on the part of the public in regard to the financial troubles in Chicago. The critical situation in which these three concerns have been placed has been due to the large loans made to the railroad, coal mining and other enterprises owned and controlled by John R. Walsh. This again emphasizes the danger of the managing officers of banks being interested in outside institutions requiring large amounts of money. The comptroller's office has for sometime been criticizing the condition of the Chicago National Bank and calling upon its officers and directors to reduce the amount of these loans and the investments in the bonds of Mr. Walsh's corporations. In spite of repeated promises that this should be done, these items have been continued in the bank and in order to prevent further encroachments it was necessary for the comptroller to take radical action. The comptroller's office has for sometime been endeavoring to make an examination of the Chicago National Bank simultaneously with an examination of the state institutions by the state bank examiners, but was not able to bring this about until a few (Continued on Page Twelve.)

6. December 19, 1905 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, December 19, 1905

Click image to open full size in new tab

Article Text

less than forty-eight hours. A new eral grand jury is in session, be ning today. Two state bank examiners alre have partly reported the results their investigation to State Aud McCullough and he will lay the before Attorney General Stead. Bared by Joint Action. The federal and Illinois author have been working hand in hand the last three days. It was only joint investigation that the b ruptey of the banks was proved. investigation was made at the ur request of the federal authorities Prior to this, when the federal thorities made their investigation Mr. Walsh's national bank, the se ities of the Home Savings bank juggled and made to appear as as of the national institution. When state sleuths examined the Home ings bank, somebody hopped from side of the room to the other and turned with the stock and bonds longing to the federal bank. The authorities, it is believed. have the widest latitude in prose ing Mr. Walsh, as investigation sl that nearly every law on the sta books, placed there for the safe duet of banking business, has been lated by him with reckless impu Walsh Concerns Not Banks. John R. Walsh's banks were banks. They were simply a huge drawer for his side lines of railre mines, stone quarries and other ness investments. There was a in the bottom of this drawer which into the pay envelopes of graders, men, locomotive engineers, stone e rymen, coal miners and laboring of thirty different trades The depositors dumped their m into this omniverous cash box, an was used by Mr. Walsh in a vair deavor to turn into a golden realit dream of railroad and allied com cial supremacy. Out of the $26,000,000 deposite 1 the half-way financial station tained by Mr. Walsh, $15,000,000 loaned by Mr. Walsh to companies vately controlled by himself. Walsh's Loans to Walsh. He had been lending money to various railroad and mining enter on their bonds as security for a ber of years, and had been repea ber of years and had been repea warned by both the controller of currency and the state auditor th: must change this practice and di of such bonds as security for loan But not until a short time ago it discovered just how these loans being manipulated and their size. The Home Savings bank has be flagrant violator of good banking tice in that, against the $4,000,00 posits which it had, there was in a cash in its vaults less than one of 1 per cent to pay depositors. cording to the state bank laws. there been a run on the bank, th ter could have availed itself o: right to demand sixty days' notic it had only savings, all of the dej would have remained intact for period. Remarkable Story. The remarkable manner in whic financial world withstood the t1 of these three institutions forms a that has never been equaled in world's history and monetary a Immediately after the announceme the failures a flurry was precipi in the great stock markets of York and Boston. Even in L there was a menacing decline in V But before the flurry could sprea ther than the sensitive spec world came the announcement tha Chicago clearing house had rush the rescue; that depositors woul paid in full; that all interests be amply protected, and that in cago, where the result would be felt, not a ripple had been create At once the markets in the eas across the Atlantic became S Speculators became reassured an bourses closed in a stronger po than on Saturday. Paid Out Millions. The doors of the banks were o at the usual time in the forenoor thruout the day a steady stream positors poured in and out of the sive building in Monroe street. posits estimated at $2,400,000 wer out by the Chicago National while the Home Savings bank Si dered an amount estimated at $50 Late in the day tentative plan discussed, it was reported and lat Continued on 2d Page, 4th Colu

7. December 19, 1905 The Billings Gazette Billings, MT
Article from The Billings Gazette, December 19, 1905

Click image to open full size in new tab

Article Text

18 -Three of the largest financial institutions in the west, the Chicago National bank, the Home Savings bank and the Equitable Trust company, all of them controlled by John R. Walsh of this city, and in a great measure owned by him, suspended operation today. Their affairs will be liquidated as rapidly as possible and they will go out of business. Mr. Walsh, who was the president of the Chicago National bank and of the Equitable Trust company, and all the other officers of the Chicago National bank have resigned. National Bank Examiner C. H. Bosworth, has succeeded Walsh at the head of the Chicago National bank and the places of the directors have been filled by men appointed by the Chicago clearing house. Back of the new management stand the allied banks of Chicago, who have pledged their resources that every depositor shall be paid to the last cent and that not any customer of the three institutions shall lose anything by the suspension. Had not this action been taken by the banks a disastrous panic might have followed in this city and throughout the country. As it was, the only effect upon the financial world in this city was the decline on the local stock exchange of 21/2 in the price of National Biscuit common stock, which has employed the Equitable Trust as transfer agent and had, besides, dealings with the Chicago National bank, but it is not affected by the failure in the slightest degree. The closing of the two banks had the effect also of shutting off all demand on the local exchange for bank stocks, none of them being purchased. Cause of Suspension. The immediate cause of the collapse of the institutions controlled by 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 companies of Indiana. 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 prifits for himself and his associates. He bases this statement on his own estimate of the value of the bonds of the Southern Indiana Railway company. The comptroller, the state auditor and the members of the Chicago clearing house committee place the value of the bonds at one-half of the valuation put on them by. Walsh and I it was their refusal to accept his valuation that caused the suspension of the banks. Liabilities and Assets. The liabilities of the three instituC t tions are estimated in the aggregate at $26,000,000. Against this amount the banks and the trust company have resources that are at a conservative estimate worth $16,000,000. The bonds of the Southern Indiana Railway company are estimated by Walsh as being worth $16,000,000. They are considered by the comptroller, state auditor

8. December 19, 1905 The Morning Astorian Astoria, OR
Article from The Morning Astorian, December 19, 1905

Click image to open full size in new tab

Article Text

James B. Forgan, president of the First National bank, as head of the clearing house committee of the Chicago Associated banks, gave forth the statement. The assets of these institutions, it was asserted, were involved in coal and railway properties of John R. Walsh, the president of the Chicago National bank. John R. Walsh, head of the institutions which have been declared insolvent, was not at the meeting. The following were the members of the committee at the meeting. James B. Forgan, chairman; John J. Mitchell, James H. Eckles, Orson B. Smith, Ernest A. Hamill. The statement was issued at the offices of the First National bank. It is as follows: "The Chicago National bank, the Home Savings bank, and Equitable Trust Company, which have been controlled and managed by John R. Walsh and his associates have concluded to wind up their affairs and quit business in this city. After a thorough and careful examination of their affairs by the Chicago clearing house banks, it is stated that all of the depositors of these institutions will be paid in full upon demand, the Chicago Clearing House banks having pledged themselves to this result, thus putting all the resources of the Chicago banks behinb the depositers of these three institutions. The difficulty with the institutions has been that investments have been made in assets connected with the railway and coal enterprises of John R. Walsh. "These assets were not immediately available to meet deposits and have been taken over on terms which will enable the three institutions to pay their dem positors in full. Mr. Ridgly, comptroller of the currency, and Charles Eubank, of the auditor's department at Springfield, were seem and expressed themselves as greatly pleased with the action of the Chicago banks, and stated that it rekected great credit upon the associated banks of Chicago which have again indicated their ability to meet and emergency in a manner entirely satisfactory to the public." The meeting of the Chicago clearing house association began at noon Sunday. Notices were sent to the members of the board by Mr. Forgan after it 00 had been learned of the condition of the banks and the trust company. t Clerks were notified and fifty or more with ten stenographers hurried to the First-National Bank. Behind closed doors the Clearing House Association be gan its work of finding a way that might enable them to ride the financial sea in safety. That a panic would be likely to follow was the first thought of the committee. Resolutions were adopted and heads of other banks. pledged themselves to give assistance. The amount involved in the failure would not be stated by 8 the committee members. it All informatin concerning the meetW ing of the committee was kept secret W until three o'clock this morning and half

9. December 19, 1905 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, December 19, 1905

Click image to open full size in new tab

Article Text

THE SITUATION IN CHICAGO BETTER Run on the Bank Resumed Today, But All Depositors Were Promptly Paid AFFECTED BANK BEDFORD The Trouble In Chicago Starts a Run on Indiana Concern, But Payments Were All Made as Fast as Demanded and the Excitement Soon Subsided. Chicago, Dec. 19.-Practically normal conditions were restored in local banking circles today. Runs on the Chicago National, and Home Savings banks continued, but there was no excitement. It is believed that by tomorrow night, the greater part of the deposits in both banks will be withdrawn. Bedford, Ind., Dec. 19.-There was a run on the Bedford National bank, of which John R. Walsh, of Chicago, is president, today. There was but little excitement, the small depositors being the only ones who drew money. Other banks offered assistance, but it was declined as unnecessary.

10. December 19, 1905 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, December 19, 1905

Click image to open full size in new tab

Article Text

Lansburgh & Bro., 420 to 426 Seventh Street, WASHINGTON, D.C. Bank Failures. Chicago, Dec. 18.-The failure of the Chicago National Bank, the Home Savings Bank, and the Equitable Trust Company was announced early this morning by the representatives of the Chicago Clearing House Association, after a long session of 18 hours. The depositors of the three institutions will be paid in tull, the Chicago Clearing House banks pledging themselves to this purpose. John R. Walsh is head of the three institutions involved, and the trouble was brought about by investments in coal and railway enterprises of Mr. Walsh. The deposits of the Chicago National Bank are estimated at more than $16,000,000, and the Home Sav. ings Bank has depos ts of more than $5. 000,000, belonging to more than 8,000 persons. The deposits of the Equitable Trust Company amount to more than $4,000,000. In addition to the formal statement of suspension and the announcement that the banks involved would not open their doors this morning, an announcement was made, signed by the clearing house committee of the Chicago Associated Banks, to the effect that deposits will be paid in full upon public monies on deposit in the Chicago demand. As earlyas 8 o'clock a a crowd began to gather in front of the banks waiting for the doors to open. John A. R. Walsh has resigned as president of the Chicago National Bank, and was succeeded by Charles H. Bosworth, National Bank examiner, whose investigations brought about the crash.

11. December 19, 1905 The Hawaiian Star Honolulu, HI
Article from The Hawaiian Star, December 19, 1905

Click image to open full size in new tab

Article Text

CLOSING OF THE CHICAGO BANKS EXTENT OF THE BUSINESS DONE BY THE INSTITUTIONS WHICH ARE NOW UNDER THE BAN. The cable yesterday brought news of the closing by the United States Comptroller of Currency of the Chicago National Bank, the Home Savings Bank and the Equitable Trust Company. There will be no loss to depositors as other banks came to the rescue. The reason assigned for the closing was the making of unwise loans to private companies. Some idea of the amount of business done by the concerns mentioned may be gathered from the following figures, furnished by the Bank of Hawaii: Chicago National-Deposits, $22,858.845; capital, $1,000,000; surplus, $1,423,345. Home Savings Bank-Deposits, $4,065,000; capital, $100,000; surplus, $155,700 Equitable Trust Co.-Deposits, $4,715,043; capital, $500,000; surplus, $459,586.85.

12. December 20, 1905 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, December 20, 1905

Click image to open full size in new tab

Article Text

Lansburgh & Bro., 420 to 426 Seventh Street, WASHINGTON, D.C. Bank Failures. Chicago, Dec. 18.-The failure of the Chicago National Bank, the Home Savings Bank, and the Equitable Trust Company was announced early this morning by the representatives of the Chicago Clearing House Association, after a long session of 18 hours. The depositors of the three institutions will be paid in tull, the Chicago Clearing House banks pledging themselves to this purpose. John R. Walsh is head of the three institutions involved, and the trouble was brought about by investments in coal and railway enterprises of Mr. Walsh. The deposits of the Chicago National Bank are estimated at more than $16,000,000, and the Home Sav. ings Bank has depos ts of more than $5. 000,000, belonging to more than 8,000 persons. The deposits of the Equitable Trust Company amount to more than $4,000,000. In addition to the formal statement of suspension and the announcement that the banks involved would not open their doors this morning, an announcement was made, signed by the clearing house committee of the Chicago Associated Banks, to the effect that deposits will be paid in full upon public monies on deposit in the Chicago demand. As earlyas 8 o'clock a a crowd began to gather in front of the banks waiting for the doors to open. John A. R. Walsh has resigned as president of the Chicago National Bank, and was succeeded by Charles H. Bosworth, National Bank examiner, whose investigations brought about the crash.

13. December 20, 1905 Arizona Republican Phoenix, AZ
Article from Arizona Republican, December 20, 1905

Click image to open full size in new tab

Article Text

HARDLY A RIPPLE. Of the Great Financial Disturbance at Chicago. Chicago, Dec. 19.-Practically normal conditions were restored in the local banking circles today. There was not the slightest surface indication of the disturbance caused yesterday by the suspension of the Walsh banks. The runs on the Chicago National and the Home Savings continue, but there is no excitement around the banks.

14. December 21, 1905 Iron County Register Ironton, MO
Article from Iron County Register, December 21, 1905

Click image to open full size in new tab

Article Text

WALSH CONCERNS EMBARRASSED John R. Walsh, the Chicago Multimillionaire, Forced to Assign. TOO MANY IRONS IN THE FIRE Three Financial Institutions Involved, But the Other Banks Have Stepped Into the Breach and Have Averted a Crash. Chicago, Dec. 19.-Three of the highest 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 measure Monday. owned by him, suspended operations 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 Mr. Walsh at the head of the Chicago national bank, and the places of the directors have been filled by men appointed by the Chicago clearinghouse. Back of the new man1 agement stand the allied banks of Chi1 cago, who have pledged their resources y that every depositor shall be paid to d the last cent, and that no customer of t any one of the three institutions shall 1 lose anything by reason of the suspension. Had not this action been taken by the banks of the city a disastrous Danic must have followed in the finanS cial world. As it was, the only effect in this city was the decline on the local stock exchange of 2½ in the price of National Biscuit common stock, which has enployed the Equitable Trust as transfer agent, and had, besides, dealings with the Chicago national bank, but is not affected by the failure in the sightest degree. The closing of the two banks had the effect also of shute ting off all demand on the local a change for bank stocks, none of them exf being purchased. is The Cause of the Collapse. e The immediate cause of the collapse n 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 hisnotably the Southern Indiana railway and the Bedford Quarries Co., of Indiana. 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 stateto ment on his estimate of the value of the bonds of the Southern Indiana Raile road Co. The comptroller, the state auditor and the members of the Chiis cago clearinghouse committee place the value of the bonds at one-half the valuation of Mr. Walsh, and it was their trefusal to accept his valuation that caused the suspension of the banks. The Aggregate Liabilities. k The liabilities of the three institutions are estimated, in the aggregate, at L $26,000,000. Against this amount the banks and the trust company have sources that are on a conservative esti- remate worth $16,000,000. The bonds of the Southern Indiana Railroad Co. estimated by Mr. Walsh as being worth are a$16,000,000. They are considered by the comptroller, state auditor and the clearMONS tle inghouse committee to be worth a lit-

15. December 21, 1905 The Vinita Weekly Chieftain Vinita, OK
Article from The Vinita Weekly Chieftain, December 21, 1905

Click image to open full size in new tab

Article Text

Forgetting Those Things Which Are Behind And Reaching Forth to Those Which Are Before NORMAL CONCITY COUNSOUTHERN DISRE-APPOINTMENT GENERAL STRIKE BLOWN CIL MEETING DITIONS PREVAIL TRICT MUDDLE LEO E. BENNETT IS ON IN RUSSIA asociated Press Chicago, Dec. -Practically norThe east side water connection was Johnson May Be Permitted to mal conditions were restored in local TO ATOMS Associated Press up again before the city council last Crisis Brought on at Moscow banking circles today. There was not Hold Job as District/AtterWashington, Dec. -The President night for discussion, being injeceed slightest surface indication of disOne Day Earlier Than Exby Alderman Smith, who stated that today sent to the senate the nom/naturbance caused yesterday by suspention of Leo O. Bennet for United ney Until End of Term the city should have more pay from Three Men Killed and Many sion of Walsh banks Runs on Chi|`pected-The Governthe east side water consumers than States marshal for the Western discago National and Home Savings trict of Indian Territory and Bess L. that shown by the meter readings. ment is Powerless. Injured in a Dynamite Exbanks continued but no excitement. He said that property owners in that Raily postmasterat Snyder, Oklahoma Associated Press Work of paying off depositors proceedportion of town, outside the incorplesion in the Heart of Washington, Dec. While the ed rapidly, poration, should pay 4.89 mills on order for the removal of William B HOUSE ACTS

16. December 21, 1905 The Bon Homme County Independent Tabor, SD
Article from The Bon Homme County Independent, December 21, 1905

Click image to open full size in new tab

Article Text

Chicago, Dec. 20.-All officers and directors of the Chicago National have resigned and their places were taken by men selected by the clearing. house association. * Mr. and Mrs. Walsh have turned over to the officials of the clearing house all of their property. New York, Dec. 18-News of the insolvencies of important Chicago trading institutions came with a great shock to Wall street this morning and convulsive liquidation of stocks made wild work with early quotations. Holdinges of certain stocks were thrown over for any price they would bring. A decided panicky feeling prevailed. Much to the delight of Thomas W. Lawson, Amalgamated Copper declined 7½ points; Union Pacific, 2%. and almost the entire list showed losses of 1 to 3 points. The market was enormously active during the first hour but by that time liquidation had spent its first fury and there were some wide recoveries. I Chicago, Dec. 20.-Action has been taken by Comptroller of the Currency Ridgely that will compel the Chicago National and Home Savings banks and the Equitable Trust company. dominated by John R. Walsh, of this city, to wind up their. amain., Other .national banks of the city have come to the rescue, and it is declared on authority of the clearing house association. the comptroller and also by officers of the Chicago National bank that not a single depositor will lose a cent. Difficulties of the three banks. which are practically, branches of the same institution, are attributed by the comptroller to large loans made by the Chicago National, bank to railroad, coal, mining and other private enterprises controlled by Walsh. Warned by Ridgely. Some time ago the comptroller called attention of the officers of the -bank to the fact that they were making loans to hese enterprisés of Walsh, which. in opinion. were too large for. the sufety of the institution Repeated promises were made that the situation should be rectified. but. no action satisfactory to the comptroller. was taken. Three days ago he came to Chicago for the purpose of making an intestigation into the affai: of the three banks and found them in such condition that he judged immediate atLion to be necessary, 4. Other Banks to the Resoued Officials of different Chicago banks were told of the situation and a hurrigd call was sent out for & meeting of representatives of the Chicago Clearing! House association and officers of city banks. The meeting W scatled to at 3 o'clock yesterday afternoon and was in continuous; session antH 5 lock this morning. Careful critivate of the Anduntion rewealed the Chicago National bank had Reposits to an amount of $16,000,000 and the Home: Savings had deposits *of $4000, divided among 8,000 deposited ors. 1 Extents of the Failure The two Banks and of the Equipable Trust. were roughly timated at $26,000,000. Assets of the thre institution beut $20.000,000 of this amount and the ctors and officials of the Chicago National bank/camie to the frontswith securities amounting to About thank millions more. "This left a deficit Ant about $3,000,000

17. December 21, 1905 Abilene Weekly Reflector Abilene, KS
Article from Abilene Weekly Reflector, December 21, 1905

Click image to open full size in new tab

Article Text

Chicago Banks Recovering. Chicago, Dec. 19.-Practically normal conditions were restored in local banking circles Tuesday and there was not the slightest surface Indication of the disturbance caused Monday by the suspension of the Walsh banks. The runs on the Chicago National and Home Savings banks continued but there was no excitement whatever around the National bank and but very little In the offices of the Home Savings bank.

18. December 25, 1905 Orleans County Monitor Barton, VT
Article from Orleans County Monitor, December 25, 1905

Click image to open full size in new tab

Article Text

The Vermont delegation in Congress has decided to recommend the reappointment of Hon. J. L Martin of Brattleboro as district attorney. Alexander Dunnett of St. Johnsbury was the other candidate. Fitz Collapsed. Robert Fitzsimmons collapsed at the close of the 13th round of his fight with Jack O'Brien of Philadelphia at San Francisco, Wednesday evening. He had fought hard, but nature could not longer stand the strain and after the gong had sounded for the close of the 13th round he walked to his corner and sat in a chair. Then his head fell over on his breast, his whole body collapsed and he was unable to proceed. Referee Graney saw his condition and awarded the fight to O'Brien. Heavy Bank Failures. Monday, the failure was announced of three of the largest financial institutions in Chicago, the Chicago National bank, the Home Savings bank and the Equitable Trust company. The total liabilities are $26,000,000, with assets estimated at $16,000,000. The failures were due to the unprofitable nature of heavy railroad investments made by the principal owner of the banks, John R. Walsh. A panic was averted by the prompt action of the allied banks of Chicago, which came to the rescue and pledged that every dollar due depositors should be paid. Mr. Walsh expects that the assets will realize much more than the estimate, and that the banks will prove to have been solvent. General Strike on in Russia. A ge eral strike has been declared in Russia. It was ordered by the various federated unions controlling nearly all the branches of industry, and is expected to be complete. The proletariat made demands on the government that the latter could not concede, and this is calculated to bring it to terms. The government on its side has prepared for a sanguinary struggle with the radicals. Troops are scattered all over the empire for use in an emergency, and the district governors have been directed to repress with energy all uprisings, and to /act on their own authority, if cut off from telegraphic communication with the capital. The more responsible spirits that helped to start the revolution are advising against its continuance, feeling that enough bas been gained now.

19. December 26, 1905 Wausau Pilot Wausau, WI
Article from Wausau Pilot, December 26, 1905

Click image to open full size in new tab

Article Text

THREE BANKS QUIT CHICAGO INSTITUTIONS OF JOH R. WALSH GO OUT. Chicago National, Equitable Tru Company and Home Savings Ban Close Business-Two Banks Alon Carry $22,500,000 of Deposits. Liquidation of the Chicago Nation: Bank, the Home Savings Bank, an the Equitable Trust Company, all ( Chicago, was announced at 3:3 o'clock Monday morning by represen atives of the Chicago Clearing Hous Association, after a session lastin eighteen hours. James B. Forga President of the First National Banl as head of the clearing house commi tee of the Chicago Associated bank gave forth the statement. The asset of these institutions, it was asserte were involved in coal and railwa properties of John R. Walsh, Pres dent of the Chicago National Banl The statement was issued in the offic of the First National Bank. It is a follows: "The citizens of Chicago will un doubtedly be surprised to learn tha the Chicago National Bank, the Hom Savings Bank, and the Equitab Trust Company, which have been co trolled, managed, and officered b John R. Walsh and his associate have concluded to wind up their a fairs and quit business in the city Chicago, but they will be gratified 1 learn that after a thorough and car ful examination of their affairs by tl Chicago Clearing House banks th all of the depositors of these instit tions will be pand in full upon d mand, the Chicago clearing hous banks having pledged themselves this result, thus putting all the r sources of the Chicago banks behir the depositors of these three instit tions. The difficulty with the instit tions has been that their investmen have been made in assets connect with the railway and coal enterpris of John R. Walsh. These assets we not immediately available to meet d posits in full." The meeting of the Chicago Cleari House Association began at noon Su day. Notices were sent members of ti board by Mr. Forgan after the condition of the banks and the trust company h: been learned. Clerks were notified a fifty or more with their stenographe hurried to the First National bank. B hind closed doors the Clearing Hou Association began its work of finding way that might enable them to ride t financial sea in safety. That a panic would be likely to f low was the first thought of the con mittee. Resolutions were adopted a heads of other banks pledged themselv to give assistance. The amount invol ed in the fa.lure would not be discuss by the committee members. In addition to the formal stateme of the failure, the following annound ment was made, signed by the cleari house committee of the Chicago asso iated banks: "To the Public: Depositors of the Cl cago National bank, the Home Savin bank, and the Equitable Trust Compar are respectfully advised that their di posits will be paid in full upon demand Syndicate Takes Control. A syndicate was formed during t day to take over the business of t three embarrassed financial institution As the first step all the old directors the Chicago National bank retired, M Walsh resigning as president, and complete reorganization was effecte The bank will be conducted by Nation Bank Examiner C. H. Bosworth, w was elected president in place of M

20. December 27, 1905 The Miller Sun Miller, SD
Article from The Miller Sun, December 27, 1905

Click image to open full size in new tab

Article Text

HREE BANKS QUIT. ICAGO INSTITUTIONS OF JOHN R. WALSH GO OUT. icago National, Equitable Trust Company and Home Savings Bank Close Business-Two Banks Alone Carry $22,500,000 of Deposits. Liquidation of the Chicago National nk, the Home Savings Bank, and , Equitable Trust Company, all of icago, was announced at 3:30 lock Monday morning by representves of the Chicago Clearing House sociation, after a session lasting thteen hours. James B. Forgan, esident of the First National Bank, head of the clearing house commit: of the Chicago Associated banks, ve forth the statement. The assets these institutions. it was asserted, re involved in coal* and railway perties of John R. Walsh, Presiit of the Chicago National Bank. el statement was issued in the office the First National Bank. It is as lows: "The citizens of Chicago will unibtedly be surprised to learn that : Chicago National Bank, the Home vings Bank, and the Equitable Company, which have been conlled, managed, and officered by in R. Walsh and his associates e concluded to wind up their afrs and quit business in the city of icago, but they will be gratified to rn that after a thorough and careexamination of their affairs by the icago Clearing House banks that of the depositors of these instituas will be pand in full upon dend, the Chicago clearing house ks having pledged themselves to s result, thus putting all the rerees of the Chicago banks behind depositors of these three instituis. The difficulty with the instituhs has been that their investments e been made in assets connected h the railway and coal enterprises John R. Walsh. These assets were immediately available to meet deits in full." The meeting of the Chicago Clearing use Association began at noon Sun. Notices were sent members of the rd by Mr. Forgan after the condition the banks and the trust company had n learned. Clerks were notified and y or more with their stenographers ried to the First National bank. Bed closed doors the Clearing House sociation began its work of finding a y that might enable them to ride the incial sea in safety. That a panic would be likely to fol- was the first thought of the comtee. Resolutions were adopted and ds of other banks pledged themselves give assistance. The amount involvin the failure would not be discussed the committee members. in addition to the formal statement the failure, the following announcent was made, signed by the clearing ise committee of the Chicago assocbanks: pa To the Public: Depositors of the Chio National bank, the Home Savings k. and the Equitable Trust Company

21. June 6, 1906 The Sun New York, NY
Article from The Sun, June 6, 1906

Click image to open full size in new tab

Article Text

RECEIVER FOR WALSH ROADS. Bankers Who Liquidated His Banks See No Other Solution. CHICAGO, June 5.-Receivership proceedings against the railroads of John R. Walsh are imminent. This became known to-day when it was revealed that there is dissention which amounts almost to open quarrelling among the banks of the Clearing House Association which advanced more than $14,000,000 to liquidate the Chicago National and Home Savings banks last December. Members of the Clearing House committee, managing directors of the Walsh deal, are divided into two factions. unable to agree on the course to take to clear the banks of the Walsh tangle. The demand for a receivership became insistent a few days ago, when it became known to the Associated Banks that the financial affairs of the Southern Indiana. Chicago Southern and Illinois Southern roads are in a bad way. "There has been a great deal of grumbling among the banks for some months." said in close touch with the situation one of the most a through man heavily interested deal to banks, to-day. "Ever since the sell the Walsh roads fell through in New York grumbling has grown louder. The bankers are not satisfied to have their money tied up in a venture which looks more hopeless every day. The only course open to give relief seems to be a receivership for the roads. " The Southern Indiana is the only road of the Walsh group which has shown earning capabilities. No financial statement was ever made of the Chicago Southern or Southern Illinois. The Southern Indiana, to its last annual statement. was to pay on according making enough interest its its stock indebtedness and 11. per cent. on Since the coal strike was declared on May 1, the bankers have learned. the Southern Indiana has not been a paying property. On top of the banks' other troubles has come a report that Secretary of the Treasury Shaw gave strong intimation to national bankers that they should unload the bonds of Walsh's roads now carried as assets of their institutions. There remain something like $12,000,000 of Walsh paper and securities in the associated banks. It has become clear to the banks, according to one of their attorneys, that in reserving the stock in his railways, which they thought of little consequence, Walsh made them victims of a sharp trick. The stock carries the voting power and control of the roads. As long as the roads pay interest on bonds Walsh will be in command of the situation. He will dictate the policy of the railways and their management. The banks are left "holding the bag." When Walsh's banks went out of business it he transferred to a is asserted House bank committee whose president is on the Clearing all the accounts of his railroads and other interests, amounting to many thousands of dollars. This bank president is reported to be standing by Walsh in the present crisis and seeking to avert the threatened receivership. Work on the investigation of the criminal charges made against Walsh IS progressing rapidly in the office of District Attorney C. B. Morrison. Special Bank Examiner Moxey, who is inspecting the bank and railroad company books. conferred with Mr. Morrison to-day. Assistant Attorney-General Pagin has seen all of the evidence thus far gathered so as to be ready to draw an indictment should the case progress that far.

22. July 25, 1906 The Washington Times Washington, DC
Article from The Washington Times, July 25, 1906

Click image to open full size in new tab

Article Text

The directors of the Cleveland, Cincinnati, Chicago and St. Louis Railway Company have declared a dividend of 2 per cent on the common stock, payable September 1. The Pabst Brewing Company, of MIIwaukee, has filed a first mortgage to the Wisconsin Trust Company to secure an issue of $3,500,000 4 per cent twenty-year bonds, subject to call at 105 and interest. The company has no outstanding bonds. It is understood that the amount of copper used by the General Electric Company is at the rate of nearly 100,000,000 pounds a year. Last year's needs were placed at between 50,000,000 and 60,000,000 pounds annually. A Chicago dispatch says that at the meeting of the directors of the American Shipbuilding Company, to be held in Cleveland on Thursday, the regular dividend of 1 per cent and an extra dividend of 2 per cent will be declared on the company's common stock as a result of the large earnings. Several railway lines are projected for the southern part of Georgia. The latest addition is the Thomasville, Sparks & Northwestern, to run from Thomasville to Sparks, a distance of about forty miles. Another proposed railroad will connect Dublin with Lumber City. A dispatch from Norfolk, Va., stating that the report from Roanoke that the Tidewater railroad, under construction from the soft coal fields of West Virginia, had been sold to Pennsylvania railroad interests was officially denied at the offices of the Tidewater there. The company's officers say that it has not been sold to anyone. After an expenditure of over $1,000,000 its telephone has to city upon of Glasgow municipal decided plant sell loss the the of business to the postoffice at a $200,000. The plant was established six years ago to compete with a private company. A further expenditure of $500,000 was found to be necessary upon the plant. Another dividend in liquidation of the assets of the Chicago National and Home Savings banks is expected within a fortnight. There is now in hand about $500,000. which is to be distributed rata among the pro advanced banks that to liqui- furnisned the capital date the Walsh concerns A Chicago dispatch says that persons in a position to know the earnings of Gas Company for the half to June 30. state year the People's that the company this will earn more than $12,000,000 gross year. The gross for 1905 was $12,284,300, so that it would appear that the reduction in the price of gas to 85 cents had been followed by an increase in consumption.

23. November 15, 1907 Iowa State Bystander Des Moines, IA
Article from Iowa State Bystander, November 15, 1907

Click image to open full size in new tab

Article Text

WALSH CASE STATED CASE AGAINST EX-BANKER IS OUTLINED TO THE JURY. NOTES CITED AS BOGUS Government Charges $14,000,000 Was Taken from Defendant's Banks and No Record Made of Transaction. Chicago. - The trial of John R. Walsh in the federal court for the alleged misapplication of the funds of the defunct Chicago National bank, of which he was president, got under full swing Wednesday. At 12:05 p. m. the jury which is to decide the fate of the financier was selected. A few minutes later it was sworn in by Judge Anderson and received its instructions as to how it should conduct itself during the trial. In the afternoon it listened to the opening statement of the prosecution in the case against the former banker. Assistant District Attorney Dobyns outlined the charges of misapplication of funds through alleged fictitious notes and other means. Dobyns Begins Statement. The assistant district attorney began by saying that at the time named in the indictment John R. Walsh was president of the Chicago National bank and the Equitable Trust company. and vice president of the Home Savings bank, which three institutions had some $26,000,000 in their coffer He said: "Mr. Walsh was in undisputed control of these three banks. At the same time he was interested in several uncertain and highly speculative enterprises." Mr. Dobyns then enumerated the Waish properties. "Not one of these was an established or prosperous concern," be said. Describes Banker's Methods. Mr. Dobyns described in detail various methods by which he declared Walsh took the money of his banks for his private enterprises. "As a last resort, when he could not get hold of the bank's money any other way," said Mr. Dobyns, "he finally got so that he would sign other people's names to fictitious notes, attach to them bonds of his various enterprises as collateral and thus obtain additional loans on these fictitious notes backed by this cheap collateral. "Walsh began these operations away back in the early '90s in a small, modest way. His schemes grew until at the end he was taking out of his balance hundreds of thousands and millions on a single deal." The attorney then reviewed the investigations of the bank by the examiners and its suspension. Allege Removal of $14,000,000. During the address it developed that the government will attempt to show that $14,000,000 was removed from the Chicago National bank, the Home Savings bank and the Equitable Trust company, while there was not a thing on the books of the concerns to show such transactions. It is said that months of work on the part of National Bank Examiner Edward P. Moxey and his assistants brought out the things on which the government's charges to this effect are made. The government will seek to prove, it is said, that the alleged manipulation of the bank books was so clever as to conceal the removal of the money, but that by digging down into the banks' vaults the examiners discovered bond-department checks and cashiers' checks that exposed the alleged falsifications on the books. Before court opened the defense

24. November 7, 1909 The Washington Herald Washington, DC
Article from The Washington Herald, November 7, 1909

Click image to open full size in new tab

Article Text

names. When it comes to the matter of the law's dealing with them there begins to be a sharp divergence. Charles W. Morse already has tasted of the bitterness of imprisonment. John R. Walsh has not spent an hour in jail, although the crime of which he was convicted and is now under sentence of five years' imprisonment in the Federal penitentiary in Leavenworth, Kans., was committed four years ago, Morse, through the devotion of his wife, regained his liberty, only to be thrust back behind the bars. It was a long and hard task to procure the bond in the first place, It served only as a temporary expedient. Walsh goes to his office in Chicago every day when his seventy-two years will allow him to go, and that is most 01 the time. In spite of his three-score years and twelve. he still has a lot of the energy and fight that made him in former days one of the most conspicuous capitalists and financiers in the West. He has been privileged to be with his devoted family, whose loyalty, in a quieter way, is as beautiful as that of Mrs. Morse toward the Wall street banker He is as welcome as in the old days to the clubs. Those in whose debt he is to the extent of millions are about the last men in Chicago to say for publication anything against the man who weeked the Chicago National Bank and its allied institutions. Similarity of Crimes. Morse and Walsh both were charged with transgressing the banking laws. They used the money of others in a way that the statutes did not sanction, if the charges against them be true. There may have been differences of detail in the alleged wrongful things they did. but the principle involved was the same Compared with Walsh, the Wall street man is still in the prime of life. He might spend a term in prison and come out strong and ready to begin life over again. Recent reports that he added $7,000,000 to his fortune the short time he was out on bond, whether true or not, indicate that the blows that have fallen on him have not put him out of the running as a winner of wealth. For him there is hope after whatever penalty he may pay For Walsh a prison cell probably would mean, sooner or later, a death chamber Mr Walsh is used to hard work, to reckoning with vast detail. Prison life will be no laughing matter for such a man. He has for years been a lord of business over men, brooking no interference with his will He can't be that in Leavenworth. His age renders it unlikely that he will be able to do any physical work His friends feel that once he is restrained behind iron bars the warrant of his death will have been virtually signed. That is the reason they are making with him SO vigorous a fight to ward off the day of reckoning. In the case of this man the mills of the courts are grinding slowly In one month more it will be four years since the three banks, of which Walsh was the executive head, quit doing business and the associated banks of Chicago began to pay the depositors what Walsh owed them The man whose financiering wrecked the banks is still under a big obligation to the Institutions which came to the rescue of the hundreds of depositors. His debt to them is something like $7,000,000 It is the supreme effort of Mr. Walsh just now to raise money to satisfy these creditors, 80 that he will not have to sacrifice many millions of dollars of securities and property History of Walsh's Crime, It was on the morning of December 18. 1905, that the Chicago National Bank, the Home Savings Bank, and the Equitable Trust Company ceased to do business and closed their doors. That was on a Monday morning. Far into the night of Sunday-In fact, till almost the coming of dawn-representatives of the other banks in the Chicago clearing-house had been in conference trying to devise a way to save the banks from wreck and the city from a financial panic. Walsh and his advisers were in that conference. The man who had presided as the financial genius over the trio of banking institutions protested long and loudly that if he were given one more opportunity he would ward off collapse. Over the business of the banks went experts. They scrutinized this account and that. They observed with alarm the long list of menacing obligations, gasped with surprise when informed of the manner in which the funds of the bank-the money of the depositors-were being used to promote private enterprises. They reckoned up the securities for liabilities, figured closely on the conversion possibilities of collateral at hand. They were disposed to be eminently fair, but when they were through canvassing the situation its general aspect was SO forbidding that closing the doors of the institutions was decided on. How Panic Whs Averted. That was the beginning of the end The next morning, which was Monday, there were notices on the Walsh banks which told their tale briefly. The newspapers, which had been purposely let into the secret to help save Chicago from a panic, contained long stories of the fall of the Walsh banks. Every story was quick to say that the associated banks had agreed in conference to guarantee the payment of all deposits, dollar for dollar. All the depositors had to do was to find out what his balance was and write out a check for the amount to another bank chosen for the doing of his future business. He would be given credit for the amount Those who preferred might take their books to the failed banks after they reopened and get their money there. In saving the depositors from losing a cent in the Walsh banks the institutions coming to the rescue were saving themselves the burden of a "scare," which might have far-reaching consequences and precipitate other crashes. On the 5th of October, 1909. nearly four years after that memorable Monday morning, the Circuit Court of Appeals affirmed the sentence of five years running against Mr. Walsh, who had been duly convicted in the lower Federal court for violating the banking laws. Owes Banks $7,000,000. At the time the sentence was affirmed, as already stated. Mr. Walsh owed the banks which stood between his institutions and a local financial panic over $7,000,000. secured by the stock and bond issues of certain corporations in which Walsh was interested. The interest havdefaulted