Daily Kennebec journal., 1906-03-03
And the illegal Conversion
Of About 100000
Is Charged Against Pres. Walsh
Of Chicago National Bank.
Ne Denies Il and Says Investigation
will Prove His Innocence.

Chicago, March John r. Walsh,
president of the defunct Chicago Ma
tional Bank, which closed it's doors,
Dec. is, 1905. was today taken into
custody on 4 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-
verted to his own use without proper
authority funds of the bank amount
ing to s300O.000. He was released af-
ter giving bonds to the amount OF
$4,000
The complaint alleges in specific
terms that on the 18th day of Novem-
Der, 1906. the Chicago National Bank,
of which Mr.. Walsh was president.
transmitted to the comptroller of the
currency Il statement of the financial
|conditiOn of the bank at the close of
business on Nov. 9. 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 November the amount of
loans and discounts of the said bank
ing association on which the officers
and directors thereof We're then liable
either as payer or endOrScr was $245.-
600. whereas. in truth, the amount OF
such loans and discounts was $1,000
900 and another false entry 10 the eff
feet that the amount of loans and dis
counts of the said association of which
the officers and directors We're not
| liable as payers or endorSers was
sl0,65S.226. whereas. in truth, the
amount Of such loans and discounts on
which officers and directors were not
| liable was much smaller namely,
$500, 600. Another section of the COM
| plant alleges that Walsh had in his
possession funds and moneys of the
bank amounting to $4,000, 900. with in
tcnt to iniure and defraud" the bank.
TIE $4,000 00o mentioned in this sec
| ton of tine complaint is however. iden-
teal with the amount specified as be-
| ing loaned to officers of the bank. 1t
is further alleged that John r. Walsh
and John NJ. Smyth and William Best
directors of the bank, and other per
sons too numerous to mention" un-
lawfully misapplied the money by con-
&verting it TO the personal and private
use of John r. Walsh without any
proper authority whatever.
The arrest Of Mr. Walsh came rs the
direct result of the last examination Of
/ the books of the Chicago National
| Bank. mad" by Special Bank EN-
anlinrr Arthur l.. Curry, sent To Chi
cago from Washington.
| After being released on bail, Mr..
Walsh made the following statement:
| The charge. in effect. is that as
president of the bank | signed re-
port To the COMPTROLLER. which report
il is now alleged. is false. The report
lin question would ordinarily have been
signed by the cashier. but by reason
Of his temporary absence it was signed
by me as 4 matter of course. The re-
port referred to, however, was un-
dOubtedly correct in every particular
Those facts will be clearly eSta ablisheC
by the evidence if the case reaches /;
stage when evidence is produced.
believe. however, that a more thorough
investigation Of the facts by the de
partment of justice and a comparison
of the report with the books of tn
bank will convince the department tha
its action is uncalled for and cannot b
sustained
The preliminary hearing of MI
Walsh before United States Commits
sicner FoOte, was set for March 10.