Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1907-11-20
SAYS WALSH STOLE
MANY FORTUNES
INDICTED BANKERS THEFTs AL
LEGGED TO FOOT UP TO
sf4.o0o.ooo.
SOLD WORTHLESS SECURITIES
TO His THREE FINANCIAL
INSTITUTIONS.
REPEAt EDiY WARNED TO TAKE
WAT RED STOCK OUT OF
NOW oEFUNcT BANKS.

Chicago. Nov. 1.-THE trial of John
r. Walsh, ex-president of the Chicago
National bank, on the charge of mis-.
use of the funds of that institution,
formally opened yesterday. Upon the
completion Of the jury Assistant Dis.
trict Attorney Dobyns commenced his
preliminary statement in behalf of the
government
The government will attempt to
show that Walsh took from the Chi
cago National, the Equitable Trust
and the Home Savings bank, $4,000
900.
In his statement Mr.. Dobyns do
clared that Walsh obtained owner
ship Of various large properties with
out cost to himself, by using the
funds OF the banks. He said:
''Watered stock, to the amount of
S25, 100000 or $3O,O00,U0O was issued
Walsh, through his employees, voted
the stock to himself. He then sold
this stock to the banks, taking the
money to build up his private enter
prises All the stock SO sold by Walsh
was practically valueless. 1t was the
practice of Walsh to make his loans
to one of his companies and then sell
the bonds of thai company to the
bank These bonds were practically
worthless"
The assistant district attorney then
stated to the jury how Walsh had in
duced various people to sign accom-
mediation" notes for the bank Then.
said Dobyns, "he signed the names OF
people to the notes. Checks were
made out payable to bearer and cred
tied to the personal account of Walsh.
Bonds were made out to some dunn
mics whose names were on the notes,
and the credits were made to Walsh's
account"
In 1903 Walsh was told by the
bank examiner that the Chicago
National was being loaded down with
securities of Walsh's personal enter
prises. The examiner ordered him
to take these securities out, and
Walsh promised to do so.
in 1904 the bank was found in
the same condition, the warning was
repeated and Walsh again promised
to remove the securities Another
examination showed the bank in
worse condition than ever, and it was
then ordered closed.
Put Money in His Purse.
The government will show that
Walsh's method was to buy from him
self, fix his own price and put the
money in his pocket"
AS an instance of Walsh's financier-
ing, Dobyns cited the case of the Fe-
oria Gas & Electric company, which
organized in 1899 with 100000 CAPT
tai, 100000 of which was paid in by
others than welsh, according to
Dobyns. Walsh was to hold $500, 900
of stock. He issued bonds to that
amount which, though worthless, he
put in his banks and took out the
money which he used to build up the
company Another instance. accord
ing to Dobyns was the Southern Indi-
ana railroad, which Walsh purchased
for $4,000. He Immediately issued
100000 bonds and. though worthless,
said Dobyns, sold them to the Equit-
able Trust at par, following it later
with another issue of 100000, which
he also sold at par.
No Market; Sold to His Banks.
He took money from time to time
flom the Chicago National" said
Dobyns, "and from the Equitable Trust
TO develop this property, depositing
worthless bonds until he had depos-
tied with the former 100000 and the
latter $950,00O." He failed to get
these bonds listed in New York and
later sold them to his own banks at
his own price, said Dobyns. who also
alleged that in 1902 Walsh took from
the banks more than $3,000,0o0 for his
own personal use.
In the matter of the Illinois South
ern railway. $Svu,00O of the com.
pany's bonds were voted by the bond
holders, The bonds were put into
Walsh's banks, Dobyns alleged, about
s250.0G0 being put in at so, and later
taken out at par, Walsh soon having
$1,400,O00 Of the company's stock
without it having cost him anything