4493. Home Savings Bank (Chicago, IL)

Bank Information

Episode Type: 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: 370f4b96

Response Measures

None

Description

The Walsh-controlled banks (Chicago National, Home Savings Bank, Equitable Trust) suspended/closed on Dec 18, 1905 after examiners uncovered massive misapplication of funds by John R. Walsh. Articles do not describe a depositor-run prior to suspension; the closing was a coordinated suspension/closing and the associated clearing-house banks guaranteed depositors and later liquidated assets. Later reporting (1909-1910) describes liquidation of securities and reorganization efforts of Walsh-controlled railroad properties. No explicit reopening is described for Home Savings Bank.

Events (3)

1. December 18, 1905 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Examiners discovered large-scale misapplication of funds and alleged fictitious notes and fraudulent loans orchestrated by John R. Walsh, prompting the suspension/closing of the banks.
Newspaper Excerpt: 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.
Source: newspapers

2. October 8, 1909 Other

Newspaper Excerpt: The statement of securities taken by the associated banks of Chicago when they liquidated to depositors of the Chicago National and other Walsh banks proved to include ... bringing the total to $14,000,000; the Home Savings bank $4,000,000 ... During his trial ... Walsh devoted energy to efforts to conserve assets and again become the figure of commanding importance in financial circles of the west. (article describing liquidation of Walsh banks' assets and aftermath.)
Source: newspapers

3. January 3, 1910 Other

Newspaper Excerpt: Plans for a financial reorganization of the railroads owned by John R. Walsh ... the properties are to be operated as an independent line until a purchaser is found who will pay a price that will let the banks out on the amounts they advanced to the Chicago National bank, the Home Savings bank and Equitable Trust company, when these institutions were closed in December, 1908. (reorganization work by clearing-house banks.)
Source: newspapers

Newspaper Articles (12)

1. 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

2. November 21, 1907 The News-Herald Hillsboro, OH

Article from The News-Herald, November 21, 1907

Click image to open full size in new tab

Article Text

# WALSH'S ALLEGED # CRIME SET FORTH CASE AGAINST EX-BANKER OF CHICAGO 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, Nov. 14. 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 re- ceived 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 be- gan by saying that at the time named in the indictment John R. Walsh was president of the Chicago National bank and the Equitable Trust com- pany, and vice president of the Home Savings bank, which three institu- tions had some $26,000,000 in their coffers. He said: "Mr. Walsh was in undisputed con- trol of these three banks. At the same time he was interested in sev- eral uncertain and highly speculative enterprises." Mr. Dobyns then enumerated the Walsh properties. "Not one of these was an established or prosperous con- cern," he said. Describes Banker's Methods. Mr. Dobyns described in detail vari- ous 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, at- tach to them bonds of his various en- terprises as collateral and thus ob- tain 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 in- vestigations of the bank by the exam- iners 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 Equitabie 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 diseov- ered bond-department checks and cashiers' checks that exposed the al- leged falsifications on the books. Before court opened the defense produced a great mass of ledgers and bank books that the judge had called for at the request of the prosecution. Walsh's Side Is Stated. Chicago, Nov. 15.-Assistant United States District Attorney Fletcher Dobyns completed his statement of the case of the government against John R. Walsh, on trial for alleged misapplication of funds of the defunct Chicago National bank, of which he was president, at noon Thursday. In the afternoon Attorney E. C. Ritsher of counsel for Walsh made his open- ing speech in defense of the financier. In the course of his address Mr. Ritsher said it was probable that it would be charged by the prosecution that loans in excess of ten per cent. of the capital stock had been made to certain companies. He said that this was a violation of the banking laws, but did not constitute a criminal of- fense. Nearly every bank violated the rules, he said, and violations were countenanced by the comptroller. Here he was interrupted by Attor- ney Dobyns. Mr. Dobyns objected and was sustained by Judge Anderson, who said: "I can't see why one violation of the law excuses another. Even if all of the banks violate this section that cannot be pleaded here."

3. January 30, 1908 Gloucester County Democrat Woodbury, NJ

Article from Gloucester County Democrat, January 30, 1908

Click image to open full size in new tab

Article Text

which he was president. The penalty is not less than five nor more than ten years' imprisonment. No substitute fine is allowed. The fight for the conviction of Walsh began with the suspension of the Chicago National bank, the Home Savings bank and the Equitable Trust three

4. January 31, 1908 Twice-A-Week Plain Dealer Cresco, IA

Article from Twice-A-Week Plain Dealer, January 31, 1908

Click image to open full size in new tab

Article Text

5. January 31, 1908 The Owosso Times Owosso, MI

Article from The Owosso Times, January 31, 1908

Click image to open full size in new tab

Article Text

which he was president. The penalty is not less than five nor more than ten years' imprison-ment. No substitute fine is allowed. The fight for the conviction of Walsh began with the suspension of the Chicago National bank, the Home Savings bank and the Equitable Trust company.

6. February 1, 1908 Morris Tribune Morris, MN

Article from Morris Tribune, February 1, 1908

Click image to open full size in new tab

Article Text

which he was president. The penalty is not less than five nor more than ten years' imprisonment. No substitute fine is allowed. The fight for the conviction of Walsh began with the suspension of the Chicago Nation al bank, the Home Savings bank and the Equitable Trust comnenr three

7. February 7, 1908 The Washburn Leader Washburn, ND

Article from The Washburn Leader, February 7, 1908

Click image to open full size in new tab

Article Text

which he was president. The penalty is not less than five nor more than ten years' imprisonment. No substitute fine is allowed. The fight for the convietion of Walsh began with the suspension of the Chicago National bank. the Home Savings bank and the Equitable Trust company three

8. October 8, 1909 The Mankato Free Press Mankato, MN

Article from The Mankato Free Press, October 8, 1909

Click image to open full size in new tab

Article Text

October 8, 1909 lecadence of commercial suprema and absorption in business had b People in the United Stat so fast that mere entertainment vins the public, but certain it hat this country will produce grea rama and great dramatists. She young, 80 full of tremendous vigo commanding in the field of inver and industry that attention ha yet turned to the drama as it ha known to other nations whe hey had reached that point of op and ease when art gained a endency in the public mind. In En and the present fad for the light an parkling entertainment began fiv before it did in the Unite States, and probably its end is tha nuch nearer at hand." Mr. Dodso alks of the future of the drama wit istrionic earnestness, his features, h ands and his attitude reminding or the character roles he has playe or sensational runs in New York The House Next Door." The experiment Dan on mail : Chicago's postoffice general deliver vindows against girls who haven heir parents' consent, wives wl aven't their husbands' permission an who could not identify themselv under the names to which letters we ddressed continues to cause conste ation to thousands of people-prine ally women who call and are co ronted with the new rule. Futile 1 entment has run high, and there ha much declamation about "i ringement of rights." Over three thou nd women a day have been receivir nail at the general delivery sectio Postoffice Inspector Stuart now is CO inced that his experiment was neede he says that evil has come housands of girls under age who ha eceived mail surreptitiously, and th safety of thousands of homes h imperiled by mail which husban wives have received in general d ivery boxes. Now every person ompelled to sign a card before ma delivered and investigation is ma the signer. Parents of girls a otified, and some radical changes he domestic arrnagements of love a airs have been caused by the abrup rder from Inspector Stuart. As usu housands of innocent persons are su ering needlessly from the attempt liscipline guilty folk. Thousands girls and women, whom circumstane ompel to live in cheap boardin iouses, and hundreds of foreigne whose livings are precariously got ai who have trusted to the protection Incle Sam as a surety for hone lelivery of mail untampered with, fir hemselves entangled in red tape. The fortune at stake in the fate R. Walsh will remain one of t dramatic vidences of the po oy's chance in the United States. f while not of the Hawley or Harrima ank, it runs into many millions. T tatement of securities taken by tl ssociated banks of Chicago when the iquidated to depositors of the Chica; National and other Walsh banks prove include $3,900,000 of bonds of Ill ois Southern railway, nearly $1,000 of bonds of the Chicago Southe ailway, over $2,000,000 of those of t Southern Indiana railway, $4,400,0 Illinois Southern stock, the Bedfo tone quarries and other items whi oring the total to $14,000,036. Wal began life as a Chicago newsboy, a the zenith of his bank career h: uch political influence, through t backing of Sullivan, Hopkins, Jamies Smyth, that his bank held fun the state, county, city and We South and Lincoln park boards, a inally the funds of the drainage di rict. The Chicago National had $1 00,000 in deposits and the Home Sa bank $4,000,000, the total liabi of those banks and the Equitab Trust company reaching a total 26,000,000. During his trial in tl ederal court for fraudulent bankin Walsh practically ignored his d ense, leaving it to his attorneys ai friends, while he devoted his tr nendous energy to efforts to conser assets and again become the fi of commanding importance inancial circles of the west. The requirements of today for rarians of great public libraries lil Chicago's, whence 2,500,000 people a ually get reading matter, were umined by the prolonged hunt by t Chicago trustees before Henry E. Le of Milwaukee was chosen. Time W when a librarian was not necessari rained professionally. Nowadays ti of a big public library must con the qualities of a scholar, a di omat, an executive and a literate The experience of Mr. Legler, who h secretary of the Wisconsin Fr Library commission for over five year hows what varied training and a

9. October 9, 1909 Deseret Evening News Salt Lake City, UT

Article from Deseret Evening News, October 9, 1909

Click image to open full size in new tab

Article Text

WALSH FORTUNE REVEALS ROMANCE OF A POOR BOY The fortune at stake in the fate of John R. Walsh will remain one of the most dramatic evidences of the poor boy's chance in the United States, for while not of the Hawley or Harriman rank, It runs into many millions. The statement of securities taken by the associated banks of Chicago when they liquidated to depositors of the Chicago National and other Walsh banks proved to include $3,900,000 of bonds of the Illinois Southern railway. nearly $1,000,000 of bonds of the Chicago Southern railway, over $2,000,000 of those of the Southern Indiana railway, $4,000,000 of Illinois Southern stock. the Bedford stone quarries and other items which bring the total to $14,000,0000. Walsh began life as a Chicago newsboy. and at the zenith of his bank career he had such political influence, through the backing of Sullivan, Hopkins. Jamieson and Smyth, that his bank held funds of the state, county, city, and West. South and Lincoln park boards. and finally the funds of the drainage district The Chicago National had $16,000,000 in deposits and the Home Savings bank $4,000,000, the total liabilities of those banks and the Equitable Trust company reaching a total of $26,000,000. During his trial in the federal court for fraudulent banking. Mr. Walsh practically ignored his defense. leaving it to his attorneys and his friends. while he devoted his tremendous energy to efforts to conserve his assets and again become the figuro of commanding importance in financial circles of the west.

10. October 18, 1909 The Daily Missoulian Missoula, MT

Article from The Daily Missoulian, October 18, 1909

Click image to open full size in new tab

Article Text

CHICAGO NEWS LETTER The experimental ban on mail at Chicago's postoffice general delivery windows against girls who haven't their parents' consent, wives who haven't their husband's permission, and who could not identify themselves under the names to which letters were addressed continues to cause consternation to thousands of people-principally women who call and are confronted with the new rule. Futile resentment has run high, and there has been much declamation about "infringement of rights." Over 3,000 women a day have been receiving mail at the general delivery section. Postoffice Inspector Stuart now is convinced that this experiment was needed, for he says that evil has come to thousands of girls under age who have received mail surreptitiously, and that the safety of the thousands of homes has been imperiled by mail which husbands and wives have received in general delivery boxes. Now every person is compelled to sign a card before mail is delivered and investigation is made of the signer. Parents of the girls are notified, and some radical changes in the domestic arrangements of love affairs have been caused by the abrupt order from Inspector Stuart. As usual thousands of innocent persons are suffering needlessly from the attempt to discipline guilty folk. Thousands of girls and women, whose circumstances compel them to live in cheap lodging houses, and hundreds of foreigners whose livings are precariously got and who have trusted to the protection of Uncle Sam as a surety for honest delivery of mail untampered with, find themselves entangled in red tape. The fortune at stake in the fate of John R. Walsh will remain one of the most dramatic evidences of the poor boy's chance in the United States, for while not of the Hawley or Harriman rank. it runs into many millions. The statement of securities taken by the associated banks of Chicago when they liquidated to depositors of the Chicago National bank and other Walsh banks proved to include $3,900,000 of bonds of Illinois Southern railway. over $2,000,000 of those of the Southern Indiana railway, $4,400,000 of Illinois Southern stock. the Bedford stone quarries and other items which bring the total to $14,000,036. Walsh began life as a Chicago newsboy, and at the zenith of his bank career had such political influence, through the backing of Sullivan, Hopkins, Jamieson and Smyth, that his bank held funds of the state, county. city and West, South and Lincoln park boards. and finally the funds of the drainage district. The Chicago National had $16,000,000 in deposits and the Home Savings bank $4,000,000. the total liabilities of those banks and the quitable Trust company reaching a total of $26,000,000. During his trial in the federal court for fraudulent banking. Mr. Walsh practically ignored his defense. leaving it to his attorneys and his friends. while he devoted his tremendous energy to efforts to conserve his assets.

11. 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

12. January 5, 1910 The Madison Daily Leader Madison, SD

Article from The Madison Daily Leader, January 5, 1910

Click image to open full size in new tab

Article Text

REORGANIZING WALSH ROADS Chicago Clearing House Banks to Control Properties. Chicago, Jan. 3.-Plans for a financial reorganization of the railroads owned by John R. Walsh, the convicted Chicago banker, which will put the Southern Indiana and the Chicago Southern into the complete control of the clearing house banks of the city, are being worked out by representatives of the banks and the protective committee of the first mortgage bondholders of the Southern Indiana. New securities are to be exchanged for present issues, it is announced, and as soon as possible the roads will be taken out of the receivership into which they were thrown in August, 1908, when the interest on the bonds defaulted. The properties are to be operated as an independent line until a purchaser is found who will pay a price that will let the banks out on the amounts they advanced to the Chicago National bank, the Home Savings bank and Equitable Trust company, when these institutions were closed in December, 1908.