The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1906-03-06
BANKER j R, VA! SH
WAS ARRESTED IN
CHICAGO

Chicago, March John r.. Walsh,
head of the defunct Chicago National
bank and the Home Savings bank,
was arrested by Deputy United States
Marshal Thomas Middleton this after
noon on warrants charging him with
violation of the National banking
laws.
Mr.. Walsh was taken before Com.
missioner Foote, who set his pTelim.
mary appearance for Saturday, March
10 at 10 a. m, and fixed his bond at
$4,000, for which the Illinois Surety
company signed as surety.
Just before being arraigned in court
and after he had been in the Gus
tody of United States Marshal Ames
for more than an hour, Walsh gave
out statement to the press-one of
the few he has ever given out since
the failure of his banks. 1t is as fol-
lows:
THE charge, in effect, is that as
president of the bank / signed re
port to the controller, which report, it
is now alleged, was false. The report
in question would ordinarily have
been signed by the cashier, but by
reason of his temporary absence 1t
was signed by me as matter of
course.
THE report referred to, however,
was undoubtedly correct in every par
ticular. These facts will be clearly
established by the evidence if the
case ever reaches stage where evil
dence is produced.
Il believe, however, that a more
thorough investigation of the facts by
the department of justice and q COM
parison OF the report with the books
of the bank, will convince. the de-
partment that it's action is uncalled
for and cannot be sustained"
FALSIFIED REPORTS.
Walsh is charged with having falsi-
fled the report to the bank examiners
by saying the banks officers liabilities
were $245,000 up to November 1S,
1905, when they were $4,000 900 for
which the officers were liable. Walsh
is also charged with having falsified
returns to the bank examiner by re-
porting the banks deposits at $40,
100000, for which the bank was not
responsible, when the deposits were
only $7,500,00O.
The affairs of the Chicago Nation
al were gone over thoroughly by the
bank examiner, who reported his find
ings to the attorney general at Wash
ington and he in turn directed District
Attorney Morrison in the premises.
The complainant charges three sep
arate offenses, namely that at the
time of the last report of the bank ex-
aaminer, November 18, 1905, Walsh re-
ported loans and discounts for which
the officers of the bank are liable to
be S545, 800, when they were at least
81, 500, ,000.
That discounts and loans for which
the officers were not liable were S1O,-
100000, whereas they were $500, 900;
that part of these falsified securities
were nineteen notes for $92, 900 apiece,
dummy notes signed by employees OF
the bank.
That Walsh converted. to his own
use $3,G00,000, thereby violating the
federal statute which prohibits an
officer Of bank borrowing more than
ten per cent of the capital stock.
The minimum penalty for these Of
fenses is five years each and the max
lmum penalty for all three thirty
years in the penitentiary.
The Chicago National bank and the
Home Savings bank, both of which
John r. Walsh organized and control
led, failed last November. The an
nouncement of the failure was made
after one of the most dramatic Incl
dents in the financial history of Chi
cago.