The daily morning journal and courier., 1906-03-03
WALSH ARRESTED ON
 A FEDERAL WARRANT
FORMER PRESIDENT OF THE DE- FUNCT CHICAGO NATIONAL
 BANK.

Charged With Violation of the National
 Bankruptcy Laws in Making False
 Returns to the Comptroller of the
 Currency--AIsO That He Converted to His Own Use Without Proper Au-
 thority, Funds of the Bank Amount
 ing to S3,OOO, OOO--Released on Bonds
 of S5O,O0O.
 Chicago March 2.-John R. Walsh. president of the defunct Chicago Ma tional bank, which closed its doors on December IS, 1905, was to-day taken into custody on federal warrant which charges him with violation of the na- tional banking laws in making false re- turns to the comptroller of the curren- cy, and also asserts that he converted to his own use, without proper author ity, funds of the bank amounting to $3,000,000. He was released after giving bonds to the amount of $50000.
 The complaint alleges in specific terms that on the 18th day of Novem- Der, 1905, the Chicago National bank, of which MT. Walsh was president, trans mitted to the comptroller of the cur rency a statement of the financial con- dition of the bank at the close of busi ness on November 8. 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 were then liable, eith- CT as payer or endorser, was $245,0O0, whereas in truth the amount of such | loans and discounts was $S,000,000, and another false entry to the effect that l the amount of loans and discounts of the said association on which the off, cers and directors were not liable as ] pawers or endorsers was $10,65S,226, 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."
 l Another section of the complaint al- | leges that Walsh had in his possession funds and moneys of the bank amount ing to $S,00O,0OO. with intent to injure and defraud' the bank. The $S,O00,000 mentioned in this section of the com plaint is, however, identical with the amount specified as being loaned to off, cers of the bank. It is further alleged 1 that John R. Walsh and John M Smyth and William Best, directors of the bank, | tlA fn mention,' unlawfully misapplied the money by converting 1t to the personal and private use of John R. Walsh with out any proper authority whatever.
 After remaining in the office of Mar shai Ames for two hours Mir. Walsh was released under bonds of $50,000, which were furnished by the Illinois Surety company.
 l After being released on bail Mir. Walsh made the following statement. "The charge, in effect, is that, as president of the bank, signed a report to the comptroller, which report, it is now alleged, is false. The report in question would ordinary have been signed by the cashier, but by reason of his temporary absence it was signed by me, as matter of course. The report referred to, however, was undoubtedly correct in evry particular. These facts will be clearly established by the evil dence, if the case reaches a stage when evidence is produced. believe, how ever, that a more thorough investiga- ton of the facts by the department of justice and comparison of the report with the books of the bank will con- vince the department that its action is uncalled for and cannot be sustained" ,"
 The preliminary hearing of Mir Walsh before United States Commissioner Foote was set for March 10 at 10 o'clock l in the morning.