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

! Chicago, March John r. Walsh,
president OF the defunct Chicago Ma
| tioral bank which closed its doors
December is, 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 $50 900.
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 cond ton of
the bank at the close of busnegs No.
vember 9th.
In this statement, the said John II.
Walsh unlawfully made certain false
entries to the effect that al 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 $4,000. whereas in truth the
amount Of such loans and discounts
was So 600 900 and another false en-.
try to the effect that the amount OF
loans and discounts of gaid association
IN which the officers and directors
were not liable, as payers or endors.
ars, was sI0,65S, 22G. whereas In truth
the amount of such leans and dis
counts on which the officers and diree
tors were not liable, was much smaller,
namely $7,50o,0oo.
Another section OF the complaint al
leges Walsh had In his possession funds
and moneys of the bank amounting to
s3,000000 with the intent to injure
and defrand the bank. The $4,000. 900
mentioned IN this section Ct the com
plant r.. however. identical with the
amount specified as being loaned to
officers Of the bank.
II Is further alleged John r. Walsh.
John NJ. Smyth. William Best direc,
tors Of the bank, and other persons too
numerous to mention, unlawfully mis-.
applied this money by converting it
to the personal and private use OF
John X. Walsh without any proper
authority whatever.
The arreat 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 10 Chicago from Washington
Walshs bond Of $4,000 was furnished
by the Illinois Surety Company.
After beng releared 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 IL Is
now alleged Is false. The report in
question would ordinarily have been
signed by the cashier, but by reason
II his temporary absence II was sign
ed by me as a matter Of course. The
report referred to. however. was uu-
correct in every particular.
These facts will be clearly established
by evidence If the case reaches a
stage when evidence is produced /
believe. however a more thorough in.
yestigalion of the facts by the depart. |
ment OF justice and a comparison OF
the report with the books Of the |
bank will convince the department
that its action is uncalled for. and !
Fan not be sust aimed.