The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-03-03

GIVES BOND OF $4,000
ORDER OF ARREST COMES FROM
WASHINGTON.

Chicago, March John r. Walsh.
president of the defunct Chicago Ma
tionsI bank which closed its doors
Dec Is, 1905, was today taken into Gus
today on a federal warrant which
charges him with violation OF the
national banking laws in making false
returns TO the comptroller of the cur
rency and also asserts that he con-
verted to his own use without proper
authority funds of the bank amount
ing to 81. 000. 00). He was released after
giving bonds of $4,000.
Specific Charges.
The complaint alleges in specific
terms that on Nov. IS, 1903 the Chicago
National bank transmitted to the
,,onDtroIIer of the currency a state
ment of the financial condition of the
hank at the close of business on Nov.
Q In this statement the said John r.
Walsh unlawfully made certain false
entries to the effect that at the close
of business on the ninth day of No
vember the amount of loans and dis
counts of the said banking association
on which the officers and directors
thereof were then liable, either as
payer or endorser. was $40, 900, whereas
discounts was $4,000 00 and another
false entry to the effect that the
amount of loans and discounts of the
said association on which the off1cerS
and directors were not liable as payers
or endorsers was S10.658. 226, whereas
in truth the amount of such loans ana
discounts on which officers and direc-
tors were not liable was much smaller;
namely, s7,5OO,OOO
Intent to Defraud.
Another section of the complaint AL
Ieges that Walsh had in his possession
funds and money of the bank amount
ing to IS. 900 900 with intent to 1nJure
and defraud the bank" The SS,OOO'OOO
mentioned in this section of the COM
Dlaiut is, however, identical with the
amount specified as being loaned to
officers of the bank
It is further alleged that John r.
Walsh and John NJ. Smyth and VIII
liam Best. directors of the hank and
other persons too numerous to men
tfcn." unIawfully misapplied this
Trorey by converting it to the personal
and private use of John r. Walsh
without any proper authority what
ever.
Orders From Washington
The arrest of Mr.. Walsh came as the
of the books of the Chicago National
hank made by Special Bank Examiner
. Arthur L. Curry sent to Chicago from
y Washington. The data furnished TO
L he trea surv department In Washing
ON was sent TO District Attorney Nor
hison i'm this city. with instructions 10
Jake the proper steps.
Mr.. Morrison early today swore to
1fhe COMPLAINT before United States
commissioner FOOte, who issued a
v1errant for the arrest of Mr.. Walsh
AND placed it in the hands or Deputy
AIarshaI Middleton. Mr.. Walsh was
fcund in his Office and placed under
arrest but friends of the eX-banker
asked that the officer wait for a few
hours before allowing the news or the
alrrest to become public, because OF
Aome financial matters that might be
AFFECTED.
This was granted and twice more the
friends of Mr.. Walsh asked and OBJ
ltained a brief respite. A short time
latter , o'clock. however. Deputy Mar
ishaI Middleton refused to wait for a
fCnger time. and took Mr.. Walsh TO
The office of United states Marshal
Ames-
Arrest Kept Quiet.
All of the doors leading to the pri-
xate office of Marshal Ames were
Aud those of District Attorney MorTf-
son were instructed to say nothing
concerning the arrest. Marshal Ames
declared that so far as he knew. moth
ing had been done i'm the Walsh mat
ter. and District Attorney Morrison
expressed himself in the same manner.
After remaining in the Office of Mar
ishaI Ames for two hours Mr.. Walsh
twas released under bond furnished by
THE charge. in effect. is that as
president of the bank, l signed a re-
hort to the Comptroller which report
In IS now alleged. is false. The report
In question would ordinarily have been
signed BY the cashier, but by reason
of his temporary absence II was signed
by me as a matter of course. The re-
bort referred TO. however. was un-
tsoubtedIy correct These facts will be
clearly established by the evidence if
The case reaches q state when evidence
Is produced I believe. however. that
4 more thorough investigation of the
facts by the department OF justice and
"a comparison of the report with the
books Of the bank viii convince the
department OF justice that IL position
is uncalIed % and cannot be sus-
tanned.
ANY Inference that might be drawn
from the complaint that there has
been any misappropriation of funds
In any way is absolutely false.
The preliminary hearing OF Mr.
Walsh before United States Commits
sioner Foote was set for March TO- at
10 q. m.
WILL OF JOHN A. MCCALL.
New York, March 1.-The Will of the
late John A. Mccall, who for many
years was president of the New York
Life Insurance company was filed for