The Cairo bulletin., 1907-11-14
Jury Secured In Trial Of Chicago Banker Charg-
ed With MisappIication OF Banks Funds
CASE FORMALLY OPENS
District Attorney Dobyn Viii Try to
Show How Walsh Got Large
Properties Without Cost to
Himself.

Chicago, Nov 13-The trial OF Johr
II. Walsh, ex-president of the Chicago
National bank, on charge of misuse
OF the fund Of the institution. was
formally opened today Unpon the
completion CT the ujry Assistant Dis
trict Attorney Dobyins commenced
the preliminary statement in behalf
OF the government.
The government will attempt to
show that Walsh took from the Chi
cago National Equitable Trust AMI
Home Savings Bank S14000,000.
In his statement today Dobyns de-
clared that Walsh obtained ownership
of various large properties without
cost to himself by using the funds Of
the banks He said
'Watered stock to the amount of
$25,GG0. eco or $30.000000 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
pise. All the stock SO sold by Walsh
was practically yalueless. 1t was the
practice Of Walsh to make loans L
one CT his companies and then sci
the bonds of that company to the
bank These bonds were practically
worthless
The assistant district attorney then
stated to the jury how Walsh ha
induced various people to sign "ac
commodation" notes for the bank
Then" said Dcbyns, he sigped the
names of the people to the notes.
Checks were made OFT payable tc
bearer. and credited to the personal
account of Walsh. Bonds were made
out to some dummies whose names
were on the notes and chedits were
made to Walsh's account
In 1903 Walsh was told by the
bank examiner that the Chicago Ma
tional was being loaded down with
the securities of Walsh's personal
enterprises. 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 remoseFthesd securities. .fAhotherf !
examination showed the bank in a
worse condition than ever. andfit was4
thene ordered Closed. -
The government wfll show that |
Walsh's method was to buy from
himself, fix his own price and put |
the money in his own pocket
AS instance of Walsh's finapciefing
Dobyns cites the case of tho Peoria /
Gas and, Electric company. which was
organized in 1899 with s500oOO CAPT
tai. 100000 of which was, paid In /
by others than Walsh according to
Dobyns.' Walsh was to hold $500,
900 stock He issued bonds for 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 In
diana Railroad which Walsh pur-
chased for $4,000 He Immediately
issued 100000 bonds and, though
worthless. said Dobyn. sold them to
the Equitable Trust at par, following
It later with another issue of sf00,0o0 \
which he also sold at par
He took rouey from time to time
from the Chicago National.r said
Dobyns. "and from thee Equitable
Trust to develop this property de
h.JWng worthless bonds until he
had deposited with the former $500
200 and the latter s950,O00." = l.
He failed to get these bonds liso-i
ed in New York and later sold them
10 his own banks at his own price
said Dobyns. who also. alleged that
d 1901 2, Walsh took from the banks
more than ss.000.00 for his own per
soHal use.
In the matter cf the Illinois South
srn Railway 100000 of the com
bonds we're voted bt~ bond
holders. The bonds were put In
Walsh's banks. Dobyns alleged absHi
a quarter of a million being put IN
AZ 80, and later taken cut at par1
Walsh. soon having s1.ioo.coo OF the
stock without il htaine
COST him ANYTHING