The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1905-12-30
SHAW DECLINES
TO COMMIT SELF
On the Question OF Prosecution
Of Banker Walsh
He is INVESTIGATING
IN AN INTERVIEW HE SAYS THAT
EXCESSIVE LOANS ARE NOT
NECESSARILY CRIMINAL
ACTS.

Chicago, Dec. 29.-Secretary of the
Treasury Shaw. upon his arrival in
Chicago Thursday made the startling
statement that John r. Walsh was not
alone in the violation of the federal
banking statute regarding loans in ex.
cess of 10 per cent of the cap.taliza-
ton
Mr. Sha@ while he denied he had
said the government would not prose
cute the fallen financier gave some
color by the tenor of his utterances to
the charge that the federal crowc,
headed by Senator Hopkins, had been
active at Washington in Walsh's be
half.
"A great many banks" said Secre
tary Shaw in dictated statement,
loan over 10 per cent Of their cap;-
tal to one borrower, There are many
concerns and some individuals who
borrow leg timately and are compelled
to borrow millions and If until they
found an aggregate capital sufficient
to accommodate them they would have
TO deal with great hany banks
Say Act is Not Criminal.
THE violation of the 10 per cent pro.
vision is not criminal and all that can
be done Is 20 liqu date the bank ana
pay off the deposiiors.
We watch the bank and warn the
officers and directors and if the daposi
tors are endangered the bank l. closeo
in accordance with the federal statute
Il did not say, as reported. that Mr.
Walsh got gilt-edged security for
every dollar loaned I know nothing
about the security. | simply said that
SO far as | know no one had accused
Mr. Walsh Of having embezzled any
Of the banks funds or of loaning the
funds without what he considered good
fecurity. How it will turn out do
not know did say that the Treas.
ury Department Is interested only in
the depositors and when a good faith
arrangement was made by which every
depositor was taken care Of, the comp
trcler and the Secretary of the Treas |
ury were satisfied
No Word as to Prosecution.
Il have not said that the govern I
ment would not prosecute Mr.. Walsh |
The treasury department. is not re
fponslble for prosecutions; that be. |
longs to the department of justice. |
suggest, however. that it would
be pretty difficult to convict man
who had embez2led no part of the |
banks assets, and when every deposi
tor had been paid in full"
II is believed that Walsh's influence
with the federal crowd" will probab-
ly prevent any sort of criminal prose.
cution at the hands of the government
but Walsh's transactions in 30 far as
the Home Savings Bank and Equi-
able Trust Company are concerned are
not likely to be so obsured inasmuch
as the state administration is not 50
to interpostion from Walsh's
friends
Private Citizens May Prosecute.
Even assuming that neither the
state nor the federal authorities would
take any initiative there are private
who are in a position to in
stitute proceedings against Walsh OF
such a nature, that they could not be
ignored.
Docs not the Walsh failure indicate
that where one man controls a ma
tional and a state bank there should
be a rule requiring simultaneous ex-
of the institutions by the
federal and state examiners?" Mr..
Shaw was asked.
The secretary did not care to 90
into that matter for publication.
Mr. Shaw was then asked If it was
Concluded on Fourth Page)