The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1906-03-03
ARREST WALSH ON
FEDERAL WARRANT
PRESIDENT OF DEFUNCT BANK
ALLEGED TO HAVE VIOLATED
NATIONAL LAWS.
MADE FALSE ENTRIES
Regarding Amount of Loans and Dis.
counts of Chicago NationaI---Is
Released on $4,000
Bond

| Chicago. March John X. Walsh,
/ president of the defunct Chicago Ma
| ti3Lal bank which closed it's doors
December rs, 1905 was today arrest
ed on a Federal warrant charging him
with violating the national banking
laws in making false returns TO the
comptroller of currency, and also as
serts he converted to his own use with.
out proper authority, funds of the bank
amounting TO $3.000.000.
He was released after giving bond
to the amount Of $50 600
The complaint alleges in specific
terms that on the 18th Of November
1905, the Chicago National bank of
which Walsh was president, transmit
ted TO the comptroller of currency a
statement of the financial eond.ti of
the bank at the close of businegs No
vember 9th
In this statement, the said John r.
Walsh unlawfully made certain false
entries To the effect that at the close
of business on the 9th of November
the amount Of loans and discounts of
the said banking association on which
the officers and directors thereof were
then liable. either as payer or endorser,
was $245,000, whereas in truth. the
amount Of such loans and discounts
was S3 600, 900 and another false en-.
try To the effect that the amount of
loans and discounts Of caid association
were not liable, as payers or endors.
ers, was $10,65S. 22G. whereas in truth
the amount of such leans and dis
counts on which the officers and direc
tors We're not liable, was much smaller,
namely s7,5O00o0.
Another section Of the complaint al
Ieges Walsh had In his possession funds
and moneys of the bank amounting to
$3,00O.000 with the intent to injure
and defrand the bank, The $3.000.0 600
mentioned in this section Ct the com.
plant is. however identical with the
amount specified as being loaned TO
officers of the bank.
II Is further alleged John r. Walsh
john Nj. Smytt, William Best direc.
tors Of the bank, and other persons too
numerous to mention, unlawfully mis-.
applied this money by converting 1t
to the personal and private use of
John X. Walsh without any proper
authority whatever.
The arrest of Walsh came as a di.
rect result of the last examination Of
the books of the Chicago National
bank made by Special Examiner Curry
sent TO Chicago from Washington
Walsh's bond of $4,000 was furnished
by the Illinois Surety Company
After beng released on bail Walsh
made the following statement:
"The charge. in effect. is that as
president of the bank. signed report
TO the comptroller. 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 II was sign
ed by me as a matter Of course. The
report referred To, however. was IN
correct in every particular.
These facts will be clearly established
by evidence If the case reaches a
stage when evidence is produced |
believe. however. more thorough in
vestlgation of the facts by the depart
ment Of justice and comparison of
the report with the books Of the
bank will convince the department
that its action is uncalled for. and !
ian not be sustained"