Iowa state bystander. [volume] (Des Moines, Iowa) 1894-1916, 1907-11-15
WALSH CASE STATED
CASE AGAINST Ex-BANkER IS
OUTLINED TO THE JURY.
NOTES CITED AS BOGUS
Government Charges $f4.0o0,0o0 Was
Taken from Defendants Banks
and No Record Made Of
Transaction.

Chicago. - The trial OF John II
Walsh in the federal court fol
the alleged misapplication Of the
funds OF the defnnct Chicago National
bank. Of which he was president, got
under full swing Wednesday.
At 12:05 p. m. the jury which IL to
decide the fate OF the fnancier was
selected. A few minutes later 1t was
sworn In by Judge Anderson and re
ceived It's instructions as to how II
should conduct itself during the trial
In the afternoon 1t listened to the
opening statement of the prosecution
in the case against the former banker.
Assistant District Attorney Dobyns
outlined the charges of misapplication
OF funds through alleged fictitious
notes and other means.
Dobyns Begins Statement.
The assistant district attorney be-
gan by saying that at the time named
in the indictment John r. Walsh was
president Of the Chicago National bank
and the Equitable Trust company.
and vice president Of the Home Saw
ings bank, which three institutions
had some $26,OO0,00O in their cotfer>
He said:
Mr.. Walsh was in undlsputed con-
troll of these three banks. At the
same time he was interested In sew
eral uncertain and highly speculative
enterprises"
Mr.. Dobyns then enumerated the
Walsh properties. mot one of these
was an established or prosperous con.
cern," lie said.
Describes Bankers Methods.
Mr.. Dobyns described in detail vari-
GUS methods by which he declared
Walsh took the money OF his banks
for his private enterprises.
"As last resort, when he could not
get hold of the banks money any
other way" said Mr.. Dobyns, "he final
ly got SO that he would sign other peo-
pies names to fictitious notes, attach
to them bonds Of his various enter
prises as collateral and thus obtain
additional loans on these fictitious
notes backed by this cheap collateral.
walsh began these operations
away back in the early 'a0s In small,
modest way. His schemes grew until
at the end he was taking out OF his
balance hundreds Of thousands and
millions on single deal"
The attorney then reviewed the in.
vestigations of the bank by the exam.
liners and its suspension.
Ajlese Removal Of $4,000, 900.
During the address it developed
that the government will attempt to
show that $14,O0O,OOO was removed
from the Chicago National bank, the
Home Savings bank and the Equitable
Trust company, while there was not a
thing on the books of the concerns to
show such transactions. 1t is said
that months Of work on the part OF
National Bank Examiner Edward P.
Mickey and his assistants brought out
the things on which the governments
charges to this effect are made. The
government will seek to prove. 1t Is
said that the alleged manipulation OF
the bank books was so clever as to
conceal the removal Of the money.
but that by digging down into the
banks vaults the examiners discov-
cred bond-department checks and
cashiers checks that exposed the al
legged falsifications on the books.
Before court opened the defense
produced a great mass of ledgers AID
bank books that the judge had called
for at the request of the prosecution.