The Montgomery advertiser., 1906-03-03
BANKER PUT
 UNDER BONDS John K. Walsh Arrested
 in Chicago. MISAPPLICATI0N OF FUNDS Charge Made Against Millionaire
 of Chicago. In Statement He Declares That it Win Re shown That the Re-
 port He swore to Was
 Correct.
MIsAPpLIcATIoN OF FUNDS

Chicago. March 2.--John R. Walshs President of the defunct Chicago Na- tional Bank. which closed It's doors De- cember IS. 1905. was today taken into custody on a Federal warrant which charges him with violation of tho na~ tionaf banking laws in making false returns to the Comptroller of tho Cur rency. and also asserts that he con~ verted to his own use without proper authority, funds of the bank amounts ing to s3.000,0 900. He waA released af. ter giving bonds to the amount cf $5e,00o.
 The complaint alleges in specific terms that on the 18th day of Nover- Der. 1905. the Chicago National Bank, of which Mir. Walsh was President. transmitted to the Comptroller Of the Currency statement of the financial condition of the bank at the close of business November 9th In this state> ment the said John R. Walsh. unIaw- 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 banking association on which che off, cers and directors thereof were then liable either as payer or endorser, was S245,O00. whereas in truth the amount Of such loans and discounts were s3.- 0O0. .000.
 Another false entry was to tho effect that the amount of loans and discounts of the association was SfoG5S 2s6f whereas in truth the amount of such loans and discAunts. on which officers and directors were not liable was much smaller. namely $T500. .000.
 Another section of the complaint ai- leges that Walsh had in his possession funds and moneys of the bank arnount- Ing to $3.000,o00 with intent to fnf1re and defraud" the bank. The x2. 60l Oo0 mentioned in this section cf the complaint is, however identical with me amount specified as being loaned
 NIlsappIied Money.
 lt ls further alleged that Hahn lR walsh and John M. Smyfhe. and Will liam Best. directors of the bank eand other persons too numerous to rnen- tlon. unlawfulty misapplied this money py converting 1t to the personal ana private use of John R. Walsh without any proper authority whatever
 The arrest of Walsh came as the ai- rect result of the last examination of the books of the Chicago Nafionai Bank, made by Special Bank Exaniner Arthur L.. Curry sent to Chicago from Washington. The data furniehed to me Treasury Department in Washins- ron will be sent to District Attornev Morrison immediately with instructions 10 take the proper steps in the matter.
 MT. Morrison early today swore to the complaint before United stats~ Commissioner Foote who swore out the warrant Tor the arrest of Walsh ana piaced II m the hands of Deputy Mar shaI Middleton. Walsh was found in his otffee and placed under arrest hnt trlehas or the ex-hanker asked that the ofneers delay for a few hours be- fore allowing the news of the arrest to become public, because of eorna n : fected.
 This was granted. and twice mora the friends of Walsh asked and oB- tained brief respite. A short tfrne after o'clock, however. Deputy Msr- shal Middleton refused to walt lonear Tor longer time. and took Walsh to Ames.
 Secrecy is Observed.
 All the doors leading to the nrfvata ofiice of Marshal Ames were looked. and all attaches of his office ana thaf of District Attorney Morrison were in structed to say nothing concernina the arrest. Marshal Ames declared that ao far as he knew nothing had been done in the Walsh matter and District At- torney Morrison expressed himself in the same manner.
 After remaining in the office of Mar. shal Ames for two hours, Walsh waa released under bonds of $50. 00O which were furnished by the Illinois Security Company. After being re <,ased on bait Walsh made the following statement:
 The charge in effect is that ag inc president of the bank signed fhe re- port to the comptroller which repork 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 1t was sfgned by me as a matter of course. The re- port referred to, however. was un- doubtedly correct in every paticuIa. These facts will be clearly Established by the evidence if the case reaches d 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 the bank will convi.ice the department that It's action Is uncalled for and cannot be sustained"
 The preliminary hearing of Walsh before United States Commissioner Foote was set for March 10. at 10