Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1907-11-15
TRIAL OF WALSH,
EX-BANKER, BEGUN
CHICAGOAN FACES CHARGES WHICH
MAY MEAN LONG PRISON
SENTENCE.
CASE MAY LAST WHOLE MONTH
Question Is Whether Financier Took the
Banks Funds and What His Sc
curities Are Worth.

CHICAGO, ILL.,, Nov. 12.-The trial
of John r. Walsh, former president of
the Chicago National bank, on the
charge of misapplication of the funds
of that institution, commenced today in
the United States district court before
Judge A. B. Anderson. The indictment
under which the trial was brought con-
tanned 100 counts. The offense charged
is punishable by a term of from five
to ten years in prison. It is believed
the trial will last about one month.
Did Walsh Help Himself?
The chief issue in the case is whether
or not Mr.. Walsh used the funds of
the bank to aid his own enterprises. 1t
is also charged in other indictments that
Mr. Walsh borrowed from his own bank
more than the legal amount of 10 per
cent. of the capital stock. This trial,
however, will not touch upon this latter
question.
Worth of Securities Question.
The defense will be somewhat of a
technical character. The government
claims that Mr.. Walsh substituted for
the money it is alleged he took from
the bank, securities that were of doubt
full character. Phe defense will claim
that these securities were good and that
nobody ever lost a dollar because of
them.
The greater part of today was con-
sumed in the selection of the jury.
Eta Mclean Set Free.
Miss Eta L. Mclean, District Attor-
ney Sims former stenographer, who stole
private letters bearing on the Walsh
case, was released yesterday on her own
recOgnizance. She started a little later
for the home of her parents near Boston,
Mass She will return to Chicago in
December or January, when the next
grand jury meets to give her evidence as
government witness against Alexander
B. Gordee, her accomplice in the theft
of the letters.
Walsh Is Good Fighter
That Walsh will pnt up a hard fight
against conviction goes without saying
among all those acquainted with the
man and his career. Even his most bit
ter enemies give him credit for being
good fighter. The fact that, at 70 years
of age, with his fortune ruined, his banks
wiped out of existence and with criminal
charges hanging over his head, he has
succeeded in completing the railroad that
brought about his downfall, securing for
it an entrance into Chicago in the face
shows the fighting qualities of the man.
1t is a Chicago belief that John r.
Walsh would rather fight than exist
quietly. Certain it is that his entire ca
reer from the day he landed in Chicago
as an immigrant boy has been one con-
slant fight. He began selling newspa-
pers at 10 years of age. Soon he had
news stand and in the course of time
he extended the trade and added stocks
of stationery and sporting goods. In
1861 he acquired a book and news store
on one of the best corners of the city.
From retailing he branched out into
wholesaling. He was the largest dis
tributing agent in town, and from the
town he extended his territory to include
all Illinois, and then Indiana, and then,
with his Western News company, all the
middle west. This company was alb
sorbed by the American News company
of New York.
His Career Is Active
Having obtained a considerable for
tune, he was prepared for other ventures.
He invested in the Chicago Inter Ocean,
became a director in the National Bank
of Illinois, founded the Chicago Nation
al bank in 1862, sold his interest in The
Inter Ocean to H. H. Kohlsaat, pur
chasing the Chicago Herald. started The
Chronicle as a Democratic organ, dis
posed of The Herald and of it's evening
edition, The Post, meantime multiplying
his interests in other banks, in politics,
coal contracts, gas companies, traction.
quarries, baseball, and so on.
He backed the Chicago Baseball club,
the league organization in the days Of
Spalding and Hart, and was one of the
leading spirits in the Washington Park
club The failure Of the National Bank
of Illinois in 1898, a catastrophe which
many have laid at Walsh's doors, en-
Ii L. 1r@
the deposits. Up to this point in his
career he had apparently succeeded in
everything he had undertaken. He was
unyielding and his temperament thor
oughly pugnacious. He never forgot or
forgave an enemy, but he usually broke
him.
The turning point came when some
years ago he acquired the great stone
quarry at Bedford, Ind, and developed
the insignificant Southern Indiana rail-
road to bring his stone products to mar
ket. incidentally he desired to get even
with the Monon railroad and in the
course Of his fight he developed the am
bition to throw trunk line from Pitts
burg to Kansas City
The Crash Comes
Early in December, 1905, the crash
came. The doors of the three Walsh
banks were closed, and announcement
was made that MS liabilities amounted to
$15,0OO,0OO. The Chicago Clearing
House association stepped in and saved
the depositors from loss. Walsh was
accused of using the peoples money to
promote his railroad. Comptroller Ridge
ley stated at the time that civil. but not
criminal proceedings, would be brought
against the banker. But later the mat
ter was brought before the federal grand
jury and Mr.. Walsh was indicted Grim
inally He was charged among other
things with m:9application of funds by
means of memo" notes, and with falsi
flying bank statements. For two years
John S. Miller, the famous defender of
the Standard Oil company, has fought
every inch of the ground to keep Walsh
from trial. But after months of delay
and unayailing motions to quash, to give
hill IF r,art;c,,laI to annnl the fncmer