The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-03-03
JOHN, R. WALSH A
FEDERAL PRISONER.
Former Chicago Banker Arrested
as Violator of the Bank
ing Laws. q \

Chicago, March 3.-John r. Walsh,
president of the defuhct Chicago Ma
tional bank which closed its doors Dec.
is, 1905, has been taken into. custody
him with violation of the national
banking laws in making false returns
to the controller Of the currency, and
also asserts that he converted to his
own use, without proper authority,
funds Of the bank amounting to $3,000,-
900. He was released after giving
bonds Of $4,000.
The complaint alleges in specific
terms that on Noy. Is, 1905, the Chi
cago National bank transmitted to the
controller Of the currency statement
at the close Of business on Nov. g..
In this statement, it is alleged, - John
R. Walsh unlawfully made certain false
entries to the effect that at the close
Of business on Nov. 9, the amount Of
loans and discounts Of the banking
association. on which the officers and
directors thereof were then liable,
either as payer or indorser, was $245,-
900, whereas in truth the amount Of
such loans and discounts was $3,00O,-
900; and another false entry to the ef-
feet that the amount of loans and dis
counts of the said association on which
the officers and directors were not lia-
BILE as payers or indorsers was $10,-
65S, 1926, whereas In truth the amount
of such loans and discounts on which
officers and directors were not liable,
WAS much smaller, namely, $7,500,000."
''Intent to Defraud.''
Another section Of the complaint al
leges that Walsh had in his possession
funds and moneys Of the bank amount
ing to $3,0O0,06o, with intent to in
jure and defraud'' the bank. The
100000 mentioned in this section Of
the complaint is, however, Identical
with the amount specified as being
loaned to officers of the bank.
1t is further alleged that John R.
Walsh and John NJ. Smyth and William
Best, directors Of the bank, "and
other persons too numerous. to men
tion,' unlawfully misapplied this
money by converting it to the personal
and private use of John R. Walsh with
III The sA arrest rHp0 of Mr.. Walsh came as
the direct result of the last examina-
ton Of the books Of the Chicago Ma
tional bank made by Special Bank
Examiner Arthur L. Curry, sent, to
Chicago from Washington. The data
furnished to the treasury department
in Washington was sent to District
Attorney Morrison in this city, with
instruction to take the proper steps in
the matter. 'A@>5z -, -
Mr.. Morrison swore to the complaint
before United States Commissioner
Foote, who issued warrant. Mr..
Walsh was found in his Office and
placed under arrest. After remaining
in the Office of Marshal Ames for two
hours, he was released under bonds
furnished by the Illinois Surety COM
pany.
Statement by Walsh.
After being released on ball.. Mr..
Walsh made the following statementsss ::
president, of the bank, signed a re,
port to the controller, which report
It is now alleged, is false: The report
in question would ordinarily have been
signed by the cashier, but by reason
Of his temporary absence, it was signed
by me as a matter of course. The re-
port referred to, however, was undoubt-
eddy correct in every particular. These
facts will be clearly, established by the
evidence If the case reaches a stage
when evidence Is produced. I; believe,
however, that more thoro investiga-
tion Of the facts by the department of
| Justice and a comparison of the report
with the books Of the bank will con-
vince the departments that its action
| is uncalled for and cannot be sus-
tained.' .-.%. ii. @>:.3 s55ss;$s4i ss@gcss
The preliminary hearing IL of Mr.
Walsh before United States tComnlis.
sioner Foote was set for March re- ). at
10 am. / H. y ~.:E , <5zS5 e I.