Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-03-03
JOHN R. WALSH
UNDER ARREST.
Charged With Violating National
Banking Law in Making
False Returns.
INTENDED TO 0EfRAU0 BANK.
Charged With Having S3,0O0,OO0 Of
IL Funds AMI Securities In
His Possession.

Chicago March 2.,-.John r. Walsh.
president of the defunct Chicago Ma
tional bank. which closed It's doors Dec.
IL, 1905 was today taken into custody
on federal warrant which charges
him with violation of the national bank
ing laws IA 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 70 100000 He was
released after giving bonds Of $4,000,
The complaint alleges in specific
terms that on Nov. is, 1905. the Chicago
National bank transmitted to the comp
troller OF the currency statement Of
the financial condition of The bank AZ
the close of business on Nov. O.
In this statement "the said John i.
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 banking association on which
the officers and directors thereof wore
then liable, either as payer or lndor5er,
was A5 900 whereas I'm truth the amount
VI eutil lphllh anu ulrtbulltk was aOtNUO,-
90 and another false entry TO the eff
feet thai the amount OF loans and dis
counts of the said association on which
the officers and directors were not la
bic as payers or indorsers was &c.,
6jS S26, whereas I'm truth the amount
OF such loans and discounts on which
the officers and directors were not
liable was much smaller, namely ST.
100000"
Another section Of the complaint al
eges that Walsh had IN his possession
funds and money of the bank amount
ing to 5000, 900 with intent to lnJure
and detraul the bank.
The S30OO,000 mentioned in this Sec
ton Of the complaint Is, however, iden-
teal with the amount specified as be-
ing loaned to officers OF the bank.
It is further alleged that John r.
Walsh and John NJ. Smyth and William
Best, directors Of the bank, land other
persons too numerous to mention, UNI
lawfully mlsapplicd this money by con-
verting II to the personal and private
use of John II. 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 Ar
thur L. Curry. sent to Chicago from
Washingt on.
The data furnished 10 the treasury
department in Washington was sent
20 Dist. Atty. Morrison in this city.
with Instructions to take the proper
steps.
Mr.. Morrison early today swore to the
complaint before United states Com
missioner Foote. who issued warrant
for the arrest OF Mr.. Walsh and placed
IT in the hands Of Deputy Marshal Mid
dleton
Mr.. Walsh was found 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 OF the arrest to become public,
because Of some financial matters that
might be affected.
This was granted, and twice mora
the friends of Mr.. Walsh asked and
obtained a brief respite. A short time
after o'clock, however, Deputy Mar
shall Middleton refused to wait for
longer time and took Mr. Walsh TO the
Office OF United States Marshal Ames.
After remaining IN the Office OF Mar
shall Ames for two hours Mr.. Walsh
was released under bond furnished by
the Illinois Surety company.
The preliminary hearing OF Mr..
Walsh before United States Commits.
soner Foote was set for March 10 at
10 a. m.