The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-03-03
John R. WALSH
UNDER ARREST
Charged With Making False
Returns to the COmptOIIe
APPROPRIATED $3,OOO,OOO
Matter Was Kept Quiet for Several
Hours and the Banker Was
Finally Released on Bond
of $4,000.
APPROPRIATED $3,OOO,OOO

Chicago March 2.-John r. Walsh.
president of the defunet Chicago National
bank, which closed its doors December
Is, 1905, was today taken into custody on
federal warrant, which charges him
with violation of the national banking
laws in making false returns to the comp
troler of the currency, and also asserts
that he converted to his own use with
out proper authority funds of the bank
amounting to $3,OOO00O.
He was released after giving bonds to
the amount of $4,000. The complaint al
leges in specific terms that on the 18th
day of November, 1905, the Chicago Ma
tional bank. of which Mr.. Walsh was
president transmitted to the comptroller
of the currency statement of the finan-
eia condition of the bank at the close
of business on November 8. In this state
ment "the said John R. Walsh unlaw-
fully made certain false entries to the
effect that at the close of business on
the 9th day Of November the amount
of loans and discounts of the said bank
ing association of which the president
and directors thereof We're then liable
whereas in truth the amount of such
loans and discounts were 100000. An
other false entry to the effect that the
amount of loans and discounts of the
said association of which the officers and
directors were not liable as payers or
endorsers was $1O65S,226 whereas in truth
the amount Of such loans and discounts
on which officers and directors were not
liable was much smaller. namely $780,
000
Intent to lnjure and Defraud.
Another section of the complaint al
leges that Walsh had In his possession
funds and moneys of the bank amount
Ing to s3.00O,O00 with aintent to injure and
defraud" the bank The S3,00O0O0 mem
toned in this section of the complaint
is. however. Identical With the amount
specified as being loaned to officers Of
the bank. It is further alleged that John
Walsh and John M. Smythe and William
Best, directors of the bank. and other
persons too numerous TO mention un-
lawfully misappropriated this money by
converting 1t to the personal and private
use Of John X, 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 Wash
ington. The data furnished to the treas
ury department I'm Washington was sent
TO District Attorney Morrison with in
structions to take the proper steps in
the matter. Mr. Morrison carly today
swore to the complaint before United
States Commissioner Foote. who issued a
warrant for the arrest of Mr.. Walsh and
placed it in the hands of Deputy Marshal
Middleton. Mr.. Walsh was found in his
office and placed under arrest, but friends
of the ex-banker asked that the officers
delay for a few hours before allowing
the news of the arrest to become public.
because of some financial matters that
might be affected.
Obtains Brief Respite.
This was granted and twice more the
friends of Mr.. Walsh asked aud obtained
a brief respite. A short time after
O'Clock, however. Deputy Marshall Mid
dleton refused to wait for longer time
and took Mr.. Walsh to the office of
United States Marshal Ames.
All the doors leading 10 the private
office of Marshal Ames were locked and
all attaches OF his office and that OF
District Attorney Morrison were instruct
ed to say nothing concerning the arrest.
Marshal Ames declared that SO fur
he knew nothing had been done in the
Walsh matter ana District Attorney Nor
rison expressed himself in the same man
ner.
After remaining In the office of Mar
shal Ames for two hours, Mr. Walsh
was released under bonds of $1,000. which
were furnished by the Illinois Surety COM
pany
After being released on bail Mr.. Walsh
made the following statement
"The charge in effect is that as a
president Of the bank / signed the report
to the comptroller. which report 1t is now
alleged is false. The report In question
would ordinarily have been signed by the
cashier but by reason of his temporary
absence It was signed by me as a matter
of course. The report referred to. how
ever, was undoubtedly correct In every
particular These facts will be clearly
established by the evidence If the case
reaches a stage where the evidence is
produced.
The preliminary hearing of Mr.. Walsh
before United States Commissioner Foote
was set for March 10 at 10 a. m.
Leaves "Over $4,000