The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-03-03
MADE FALSE RETURNS.
Charge on Which John r. Walsh Has
Been Arrested.

Chicago, March 3.-John R. Walsh.
president of the defunct Chicago Ma
tional bank, which closed its doors
December Is, 1905. has been taken into
custody on a federal warrant which
charges him with violation of the ma
tional banking laws in making false
returns to the comptroller of the cur
rency, and also asserts that he con-
verified to his own use, without proper
authority funds of the bank amount
ing to 100000. He was released
after giving bond for $4,000.
The complaint alleges in specific
terms that, on November Is, 1905, the
Chicago National bank transmitted to
the comptroller of the currency a
statement of the financial condition of
the bank at the close of business on
November 9. In this statement the
said John R. Walsh unlawfuIly made
certain false entries to the effect that
at the close of business on the ninth
day of November the amount Of loans
and discounts of the said banking as
sociation on which the officers and di-
rectcrs thereof were then liable either
as payer or endorser was S245.00O.
whereas in truth the amount of such
loans and discounts was $4,000 900;
and another false entry to the effect
that the amount of loans and discounts
OF which officers and directors were
not liable was much smaller, namely.
$7,500,O00."
Another section of the complaint al
leged that Walsh had in his possession
FUNDS and money of the bank amount
/ ing to $3.000.0OO with intent to iri14ra
! and defraud" the bank. The $4,000
/ GOO mentioned in this section of the
! complaint is. however, identical with
1 the amount specified as being loaned to
/ officers of the bank
1t is further alleged that John r
/ Walsh and John NJ. Smyth, and VIII
/ liam Best, directors of the bank land
/ other persons too numerous to men
! ton, unlawfully misappropriated this
] money by converting it to the personal
and private use of John r. Walsh
ever.
The arrest of Mr.. Walsh came as the
direct result of the last exa mination of
/ the books of the Chicago National
bank made by Special Bank Examiner
| arthur l.. Curry, sent to Chicago from
/ washington The data furnished to
the treasury department in Washing
ton was sent to District Attorney Nor
r1son in this city with instruction to
take the proper steps.
Mr.. Morrison swore to the complaint
pe1ore United States Commissioner
Foote, who issued a warrant for the
/ arrest OF Mr. Walsh and placed 1t in
| the hands Of Deputy Marshal Middle
| ton. Mr.. Walsh was found in his Office
ana placed under arrest, but friends of
I the ex-banker asked that the officer
wait for few hours before allowing
/ Inc news OF the arrest to become Dub-
lie, because of some financial matters
that might be affected.
This was granted, and twice moro tho
friends of Mr.. Walsh asked and oh
| tanned brief respite A short time
after O'clock, however, Deputy Mar
sinai Middleton refused to wait for q
longer time, and took Mr.. Walsh to the
Office Of United States Marshal An7es.
| All Of the doors leading to the private
office of Marshal Anes were locked. and
All attaches Of his Office and those of
!, District Attorney Morrison were in
structed to say nothing concerning the
| arrest Marshal Ames declare5 that.
so far as he knew, nothing had been
done in the Walsh matter and District
| Attorney Morrison expressed himself in
the same manner.
After remaining in the Office of Mar
/ shall Ames for two hours, Mr. Walsh
| was released under bond furnished by
| the Illinois Surety company.
After being released on bail Mr.
| Walsh made the following statement:
THE charge, in effect is that. as
president of the bank signed a re-
/ port to the comptroller, which report
| It is now alleged Is 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 q matter Of course. The report
correct. These facts win be clearly es-
tablished by the evidence If the case
reaches a stage when evidence is pro-
duced. I believe. however. that a more
/ thorough investigation of the facts by
the Department of justice and a com
paTison Of the report with the books of
the bank will convince the department
/ that its position is uncalled for and
/ cannot be sustained
The preliminary hearing Of Mr.. walsh
| before United States Commissioners
Foote was set for March 10 at 10 a n.