Governor McKinley was on his way to attend a banquet given by the Ohio Society in New York when he was informed of the disaster which had overtaken his friend. He cancelled his engagement in New York by telegraph and immediately started for Youngstown. In the meantime those interested had been figuring, and it was estimated that the liabilities of Mr. Walker aggregated about $200,000. His available assets were figured at about one-half that amount.
At Youngstown the Governor began to receive telegrams from banks all over the state, announcing that they held some of his paper. He had been led to believe that the notes had been discounted at only three banks, and was at a loss to understand the situation, until it transpired that instead of a liability of $15,000, his name was on paper amounting to nearly $100,000! The Governor was under the impression that many of the notes he had signed were executed for the purpose of taking up notes previously given and which had fallen due. It was soon found that the old notes had not been paid, and that the Governor’s obligations amounted to far more than he was able to pay.
The Governor had not a particle of interest in any of Mr. Walker’s properties, and all that he had done for that unfortunate gentleman was done out of pure gratitude. After a conference with his Youngstown friends, in which the true state of affairs was disclosed, the Governor said:
“I can hardly believe this, but it appears to be true. I don’t know what my liabilities are, but whatever I owe shall be paid dollar for dollar.”
At this time Mrs. McKinley owned property valued at $75,000, which had been left her by her father. As there seemed no other way of meeting the crisis, the Governor and his wife, on February 22, made an absolute assignment of all their property to a board of trustees, to be used, without preference, for the equal payment of the creditors. The trustees were: H. H. Kohlsaat, Chicago; Myron T. Herrick, Cleveland; and Judge Day, of Canton, Ohio. Friends urged Mrs. McKinley, at this time, to retain an interest in her property, but she refused to do so, transferring all her fortune to M. A. Hanna, of Cleveland.
This calamity weighed heavily upon the Governor, and he thought of giving up public life and returning to the practice of his profession. To friends with whom he talked, he said:
“I did what I could to help a friend who had befriended me. The result is known. I had no interest in any of the enterprises Mr. Walker was carrying. The amount of my endorsements is in excess of anything I dreamed. There is but one thing for me to do—one thing I would do—meet this unlooked for burden as best I can. I have this day placed all my property in the hands of trustees, to be used to pay my debts. It will be insufficient, but I will execute notes and pay them as fast as I can. I shall retire from politics, take up the practice of law, and begin all over again.”
It was at this time that the Governor’s friends throughout the country began to bestir themselves for the purpose of aiding him financially. The Chicago Inter-Ocean started a popular fund for the purpose, and money began to roll in. Governor McKinley refused to accept a dollar of this money, and it was by his direction returned to the donors, with his thanks for their disinterested friendship. His friends were not to be denied, however, and a number of them decided to subscribe privately to a fund to take up the Walker notes. Among these gentlemen were M. A. Hanna and Myron T. Herrick, Cleveland; P. D. Armour, Marshall Field and H. H. Kohlsaat, Chicago; and Bellamy Storer and Thomas McDougall, Cincinnati. The management of the fund was placed in the hands of Mr. Kohlsaat, who afterwards said of the matter:
“One of the chief reasons why the subscription plan was adopted was because a number of subscriptions were received anonymously and could not be returned. There were over 4,000 subscriptions sent in, and when the last piece of paper was taken up bearing Major McKinley’s name, no more subscriptions were received, and some were returned. No list of the subscribers was kept, and Governor McKinley does not know to this day, with the possible exception of four or five names, who contributed the money.
“When Governor McKinley saw the publication of the subscription scheme he wrote me absolutely declining to receive a dollar. Mr. Hanna and his other friends told him to leave the matter alone, for if his friends wished to assist him they should have the privilege.”