The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1907-11-21
WALSH'S ALLEGED
crime SET forth
CASE AGAINST Ex-BANkER OF
CHICAGO is OUTLINED
TO THE JURY.
Notes Cited 40 Bogus-Governmsnt
Charges st4,ooo,ooo Was Taken
from Defendants Banks and No
Record Made Of Transaction.

from OorenodntB BANKS aUu NO
| Record Made Of Transaction.
Chicago, Nov. 1.-THE trial of
John r. Walsh In the federal court
for the alleged misapplication of the
funds of the defunct Chicago National
bank, of which he was president. got
under full swing Wednesday.
At 1905 p. m. the Jury which Is to
decide the fate of the financier was
selected. A few minutes later It was
sworn In by Judge Anderson and re-
ceived its instructions az to how 1t
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 com.
pany, and vice president Of the Home
Savings bank. which three institu-
tions had some 326.00o, 900 IN their
Golfers. He said:
Mr.. Walsh was In undisputed con-
troll Of these three banks. At the
same time he was Interested In ssv-
eral uncertain and highly speculative
enterprises."
Mr.. Dohyns then enumerated the
Walsh properties. Not one Of these
was an established OF prosperous COZ
cern." he said.
Describes Barksr's Msthods-
Mr.. Dobyns described In detail vart
ous methods by which he declared
Walsh took the money Of his banks
for his private enterprises.
"As a last resort. when he could not
get hold Of the banks money any
other way" said Mr.. Dobyns, he
finally got 30 that he would sign other
peoples names to fictitious notes, at
tach to them bonds of his various en-
terprisss as collateral and thus OBJ
tain additional loans on these fictitious
notes backed by this cheap collateral
Walsh began these operations
away back in the early '90s In a small,
modest way. His schemes grew until
1T the end he was taking out of his
balance hundreds Of thousands and
millions on a single deal"
The attorney then reviewed the In
vestigations of the bank by the exam
iners and its suspension.
Alese Removal of s14.ooo,0o0.
During the address 1t developed
that the government will attempt 10
show that $14.000000 was removed
iron the Chicago National bank. the
Fome Savings bank and the Equitable
Trust company, While there was not a
thing on the books of the concerns to
show such transactions. II Is said
that months of work on the part of
National Bank Examiner Edward p.
Moxey and his assistants brought out
the things on which the governments
charges to this effect are made. The
government will seek to prove, II Is
said. that the alleged manipulation of
the bank books was SO clever as tn
conceal the removal of the money,
but that by digging down into the
banks vaults the examiners diseov-
cred bond-department checks and
cashiers checks that exposed the al
legged falsifcations on the books.
Before court opened the defense
produced great mass of ledgers and
bank books that the Judge had called
for at the request Of the prosecution.
Walsh's Side Is Stated.
Chicago, Nov. 15.--Assistant United
States District Attorney Fletcher
Dobyns completed his statement OF
the case of the government against
John r, Walsh, on trial for alleged
misapplication OF funds of the defunct
Chicago National bank. of which he
was president, at noon Thursday. In
the afternoon Attorney Il. C. Ritsher
Of counsel for Walsh made his open
ing speech In defense of the financier.
~ sh0 tpahoo Va hio oo4i Coo
Ritsher said it was probable that II
would be charged by the prosecution
that loans, in excess Of ten per cent.
Of the capital stock had been made to
certain companies. He said that this
was violation Of the banking laws,
but did not constitute criminal Of
tense. Nearly every bank violated
the rules, he said. and violations were
countenanced by the comptroller.
Here he was interrupted by Attor
ney Dobyns. Mr.. Dobyns objected and
was sustained by Judge Anderson
who said:
Il can't see why one violation o.
the law excuses another. Even II al
Of the banks violate this section thai
cannot be pleaded here"