The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1906-03-09

John Walsh, Western Finan-
cier, Is Held For a Hearing
FAILURE OF HIS BANK

tries and WrOngfully Con
verified Funds to His Own Us
In COnnec ion Herewith
Chicago, March 3.-John r. Walsh
president of the defunct Chicago Ma
tiOnal bank, which closed its door
Dec. IS, 1905, has been taken into Gus
tody on a federal warrant whicl
charges him with violation of the ma
tional banking laws in making falls
returns to the comptroller of the cur
rency and also asserts that he con
verted to his own use without prOpe
authority funds of the banks amount
ing to S3,0O0,O00. He was released
after giving bonds to the amount o
$4,000.
The complaint alleges in specific
terms that on Nov. 10, 1905, the Chi
cago National bank, of which Walsl
was president, transmitted to The
comptroller Of the currency a state
ment Of the financial condition of the
bank at the close of business on Nov
8. In this statement, the said JOIN
r. Walsh unlawfully made certain
false entries to the effect that at thu
close of business on Nov. 9 the amount
of loans and discounts of the said bank.
ing association, on which the officers
and directors thereof were then liable
lith np va On y N.D1S
00O whereas IN truth the amount OF
such loans and discounts was $1,000
900; and another false entry to the eff
feet that the amount Of the loans and
discounts of the said association, of
which the officers and directors were
not liable as payers 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, 81
100000"
Another section of the complaint al
leges that Walsh had in his possession
funds and moneys of the bank amount
ing to $3,0O0,000, with intent to in
ture and defraud" the bank. The So
100000 mentioned in this section Of the
complaint is, however, identical with
the amount specified as being loaned to
officers of the bank. 1t is further al
legged that John II. Walsh and John NJ
Smyth and William Best, directors of
the bank, land other persons too nu-
merous to mention" unlawfully mis-
applied the money by converting it to
the personal and private use of John
r. Walsh without any proper author
ity whatever
The arrest of Walsh came as the di-
rect result of the last examination of
the books Of the Chicago National
bank made by special Bank Examiner
Curry, sent to Chicago from Washing
ton. The data furnished to the treas
dry department in Washington was
sent to District Attorney Morrison in
this city with instructions to take the
proper steps in the matter Morrison
yesterday swore to the complaint be-
fore Commissioner Foote, who issued
a warrant for the arrest of Walsh and
placed it in the hands of Deputy Mar
shall Middleton. Walsh was found in
his office and placed under arrest, but
friends of Walsh asked that the officers
delay for a few hours before allowing
the news of the arrest to become pub
lie, because of some financial matters
hat might be affected. This was
granted and twice more the friends of
Walsh asked aud obtain a brief respite /
A short time after 2 o'clock, how
ever, Middleton refused to wait for |
Onger time and took Walsh to the of |
ice of United States Marshal Ames. !
All of the doors leading to the private |
,tfice of Ames were locked and all at |
aches of his Office and that of District |
Morrison were instructed to |
ay nothing concerning the arrest.
Marshal Ames declared that so far
is he knew nothing had been done in
he Walsh matter and Morrison ex-
PRESSED himself in the same manner.
after remaining in the Office of AmeS
or two hours Walsh was released I'M
Ter bonds of $4,000. which were fur
ished by the Illinois Surety company.