The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-04
Former President of Defunct
Chicago National Bank Ar
rested by Government.
CHARGE VIOLATION OF
NATIONAL BANK LAWS
Expert Finds He Made False
Returns to Comptroller
and Used Money.

CHICAGO March 3.-John r Walsh.
president OF the defunct Chicago National
bank which closed its doors December
1S 1905. was Friday taken into custody
on a Federal warrant which charges him
with violation Of the National banking
laws In making false returns TO the
Comptroller OF the Currency. and also
asserts that he converted to his own use
without proper authority funds of the
bank amounting to 100000 He was
released after giving bonds of $4,000,
Tho complaint alleges I'm specific terms
that on November Is 1905, the Chicago
National bank transmitted TO the Comp
trolleT OF the Currency statement OF the
financial condition of the bank at the
close of business on November ..
False Entry Nearly S3,OOO,Oo0.
In this statement the said John B.
Walsh unlawfully made certain false en-
tries to the effect that At the close OF
business on the ninth day OF November
the amount OF loans and discounts of the
soid banking association on which the
officers and directors thereof were then
liable, either as payer OF indorser, was
$4,000 whereas I'm truth the amount OF
such loans and discounts was 100000,
and another false entry TO the effect that
the amount OF loans and discounts OF the
said association on which the officers and
directors were not liable as payers or
indorsers was $40 S.226. whereas In truth
on which the officers and directors were
not liable was much smaller, namely,
s75Oo.ooo."
Intended to Steal SO, 100000"
Another section OF the complaint al
leges that Walsh had In his possession
funds and money Of the bank amounting
to 5000. 900 with intent to inture and de-
fraud the bank.
The 5000. 600 mentioned in this section
OF tho complaint is, however, Identical
with the amount specified as being loaned
to officers OF the bank
1t Is further alleged that John II, Walsh
md John NJ. Smyth and William Best.
directors OF the bank, and other persons
misapplied this money by converting II TO
the personal and private use OF John r.
Walsh without any proper authority
whatever.
The arrest OF Mr.. Walsh came as the
direct result OF the last examination of
the books OF the Chicago National bank,
made by Special Bank Examiner Arthur
l.. Curry, sent to Chicago from Washing
ton.
The data furnished to the Treasury de-
partment In Washington was sent to Dis
trict Attorney Morrison In this city, with
instructions to take the proper steps
Mr. Morrison early today swore 10 the
complaint before United States Commits
sioner Foote. who issued n warrant for
the arrest OF Mr. Walsh and placed Il in
the hands OF Deputy Marshal Middleton.
Mr.. Walsh was found In his office and
placed under arrest, but friends OF the
ex- x-banker asked that the officer wait for
a few hours before allowing the news oI
the arrest 10 become public, because OF
some financial matters that might be al
fected.
Refused Further Delay.
This was granted. and twice more tho
friends OF Mr. Walsh asked and obtained
a brief respite \ short time after 2
o'clock however. Deputy Marshal Middle
ton refused 10 walt for a longer time, and
took Mr. Walsh TO the office OF United
States Marshal Ames.
After remaining in tho Office OF Marshal
Ames for two hours Mr.. Walsh was re
leased under bond furnished by the Ill-
nois Surety company.
The preliminary hearing OF Mr.. Walsh
before United States Commissioner Foote
was SCt fer March 10 at 10 e. m