Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-11-19
Bank Examiner Moxey
Proves Good Witness
for State.
PINS FINkNCIER DOWN
Shows Where Millions We're
Extracted From Banks for
Private Use.

Chicago, Nov. 19.-National Bank
Examiner Moxey was on the stand
when the Walsh trial opened today.
He was shown a memorandum" bear
ing the signature of "A. F. Williams"
and asked to trace it through the
books of the banks to show that the
money order for which it called had
been used for Walsh's personal ben
eft
Shows Course of Transaction.
The bank examiner traced the will
liams' transaction through the books
of the bank showing it had been drawn
for $97, 200 and discounted for S96,112
and that the proceeds had been placed
to the credit of the personal account
of Walsh and it was then shown the
money was paid over by Walsh to the
credit of the Illinois Southern Railway
company, an enterprise in which
Walsh was heavily interested. Eight
other memorandum" notes were
traced through the books by Moxey be-
fore adjournment of court at midday.
Tells story in Big Figures
a story in vast figures was told yes
terday when United States Bank Ex-
aminer E. P MoXey lifted the veil from
the secrets of the old Chicago National
bank and showed its former president
in the light of an Aladdin-like magi-
clan rubbing the lamp and producing
81 ,O0O,O00
The government took up in earnest
in the afternoon its gigantic task of
proving the misapplication of $1,000
/ 600 of deposits of the bank by Mr..
Walsh.
| Mr.. Moxey was in the witness chair
and Assistant District Attorney Fetch
er Dobyns asked him questions.
| Traced Over S1.OOOOOO.
More than s1,OO0.0OO was traced
through cash books, journals, ledgers,
and deposit slips from the vaults of
the bank to Walsh's private account,
and from there to the use of the South
ern Indiana and Illinois Southern rail-
roads and the Chicago Chronicle. Most
of this money was obtained, it appear
ed, on memorandum notes signed by
employees of Mr.. Walsh and backed up
by the collateral of concerns which
Walsh was promoting.
Technical Objections Swept Aside.
The pathway for the presentation of
this evidence was cleared early in the
day by Judge Anderson. Legal tech
lnicalities brought up by the defense
against the introduction of the books
of Walsh's corporations were swept
laway. The government. as it had prom
ised to do, proved the entries in the
books were made in the regular course
lof business with the bank. Judge An
derson also put aside the question of
constitutional privilege raised for
Walsh. No proof had been shown,
! Judge Anderson said, that Walsh was
the corporation sole" of the corpora
tions under fire. The question is GER
tain to bob up later for a final de-
Icision.
Some of Facts Brought Out.
The main facts brought out by the
government through the testimony of
Mr.. Moxey are:
On Feb 1, 1904, Mr. Walsh obtained
s90,76 through note signed by NJ.
w. Wells. The collateral was 100000
in per cent Illinois Southern rail
road bonds The note was for S92,.
000 This was credited to the account
of Walsh with the bank and paid in
amounts of s25,O0G TO the Southern In
diana, s35,000 to the Southern Indiana,
and S25 900 to the Illinois Southern.
Feb. 81, 1904, seven notes for s92.-
600 each were discounted by the Chi
cago National bank. Each note was
secured by 100000 Illinois Southern
per cent bonds. Six notes were paid
Feb. 81 for 100000 each. The differ
ence between the proceeds of the seven
: discounted notes and the six that were
paid was S39 ,46S.SS. Walsh's account
8 was credited with $4,000. He paid on
that day $4,000 to the Southern Indi-
T ana railroad.
Il Distributes S92y 1000.
f March 3, 1904, note signed by r.
: j. Goddard for $4,000 was discounted
( by the bank. The collateral was $780,.
n 000 in Illinois Southern bonds OF the
: proceeds. s91,356. Walsh paid to the
Chicago Chronicle $4,000, to the Illi
nois Southern $4,000, and to the
y Southern Indiana s25,000. All this was
charged TO Walsh's account and shown
! Continued on Page Two.)