Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1905-12-21

OnlhhCl3S 7luCIuOuS lluuS IuS WOTh VI
Investigation comparatively easy, has
laid the facts in the case before Uni
ted States District Attorney Morrison.
Mr. Morrison is expected to reach a de-
cision as to what action he will take
in no less than forty-eight hours. A
new federal grand jury will be in ses-
sion, beginning today.
Stsad viii Receive Report.
Two state bank examiners already
have partly reported the results of
their investigation to State Auditor
Mccullough, and he today will lay the
case before Attorney General Stead
States Attorney Healy will in all
probability start an investigation to-
day. He last night had given no per-
sonal attention to the case, but it was
the minute any violation of law is
found that instant will the machinery
of the law be put in operation.
Joint Inquiry Was Necessary.
The federal and Illinois authorities
have been working hand in hand for
the last three days. 1t was only by
joint investigation that the bankrupt
cy of the institutions was proven. This
investigation was made at the urgent
request of the federal authorities.
Prior to this, when the federal au-
thorities made their investigation Of
Mr. Walsh's national bank, the securi-
ties of the Home Savings bank were
juggled and made to appear as assets
of the national institution. When the
state sleuths examined the Home Saw
ings bank somebody hoped from one
side of the room to the other and re-
turned with the stocks and bonds be-
longing to the federal bank
The authorities it is believed will
have the widest latitude in prosecuting
Mre Walsh, as investigation shows that
nearly every law on the statute books
placed there for the safe conduct Of
banking business, has been violated by
him with reckless impunity.
Banks That Were Not Banks.
John R. Walsh's banks were not
banks. They were simply huge cash
drawer for his side lines of railroads,
mines, stone quarries and other bust
ness investments. There was hole
in the bottom of this drawer which led
into thesp envelopes Of graders, fire.
men, locomotive engineers, stone quar-
ry men, coal miners and laboring men
of thirty different trades.
The depositors dumped their money
into this omnivorous cash box and it
was used by Mr.. Walsh in vain en-
deavor to turn into golden reality his
dream of railroad and allied CONNER
cial supremacy.
Looked Out for No. 4.
Out of the $26,OOO,OOO deposited in
the halfway financial station maintain
ed by Mr. Walsh, $15.000OO0 was loan
ed by Mr. Walsh to companies private
ly controlled by himself
He had been lending money to his
various railroad and mining enter
prises on their bonds as security. for
a number of years and had been re-
peatedly warned both by the comptrol-
Ter of the currency and the state audit
or that he must change this practice
and dispose of such bonds as security
for loans.
But not until short time ago was
it discovered just how these loans
were being manipulated and their size
The Home Savings bank has been
fragrant violator of good banking
practice in that against the $4,000
900 deposits which it had, there was in
actual cash in its vaults less than one
half of / per cent to pay depositors.
According to the state bank laws, had
there been run on the bank, the lat
ter could have availed itself of the
right to demand sixty days notice. AS
it had only savings, all Of the depos-
it's would have remained intact for
that period
Paid 10 Per Cent Dividends.
The Home Savings paid dividends of
10 per cent on it's capital stock. Earn
ings which should have been left in
the form, of cash in the vaults Of the
bank were, either distributed in diyi-
.dends to stockholders or loaned to