Evening star., 1907-11-14
J, R, WALSH ON TRIAL
Former Chicago Banker Faces
Serious Charges.
USED FUNDS OF HIS BANK
Today's Details of the Government 3
Severe Arraignment.
THE PROSECUTIONS PURPOSE
District Attorney Dobbins Frequent
ly Interrupted by Objections OF
Attorneys for the Defense.

CHICAGO. November 1.-THE trial OF
John r. Walsh. former president OF the
Chicago National Bank. charged with mis-
use of the banks funds, was resumed to-
day. Assistant District Attorney Dobyns
continued his arraignment OF Mr.. Walsh.
He criticised the action of the banker In
unmeasured terms. and was frequently
interrupted by objections by attorneys
for the defense.
Judge Anderson. In the main. sided in
his rulings with Mr.. Dobyns, insisting
that the defense reserve Its objections
until the assistant district attorney had
finished statement and not interrupt him
in the middle OF sentence.
II do not see how l can object without
interrupting,' said Attorney Hynes, who
is acting for Mr.. Walsh.
Reserve your objections until Mr..
Dobyns has finished his statement said
the court. He Is entitled to finish his
sentences
What Government Will Try to Show
In the trial which opened yesterday
afternoon the government will attempt to
show that Walsh took from the Chicago
National Bank. the Equitable Trust Com
pany and the Home Savings Bank $14,-
III lho oldICuIChI i/Ooyso dS-
eiared that Walsh obtained the ownership
Of various large properties without cost
to himself by using the funds Of the
banks. He said:
"Watered stock to the probable amount
Of s25,O0O,OO0 or 10000 900 was issued.
the stock to himself. He then sold this
stock to the banks. taking the money to
build up his private enterprise. All Of
the stock so sold by Mr.. Walsh was prac-
tically valueless. 1t was the practice Of
Mr.. Walsh to make loans to one Of his
companies and then sell the bonds Of that
company to the bank. These bonds were
practically worthless"
Induced People to Sign Notes.
The assistant district attorney then
stated to the jury that Mr.. Walsh had
induced various persons to sign accom-
modation'' notes for the bank. Then.
said Dobyns. "he signed the names of
people to notes. Checks were made out
payable to the bearer and credited to the
personal account of Mr.. Walsh. Bonds
were made out to the same dummies"
whose names were on the notes, and the
credits were made to Mr. Walsh's ac-
count.
In 1903 Mr.. Walsh was told by the
bank examiner that the Chicago National
Bank was being loaded with the securities
of Mr.. Walsh's personal enterprises. The
examiner ordered him to take these Sc
curities out, and Mr.. Walsh promised to
do SO.
I'm 1904 the bank was found in the
same condition. the warning was re-
peated, and Mr.. Walsh again promised
to remove the securities. Another ex-
animation showed that the bank was in
worse condition than ever, and 1t was
then ordered closed.
The government will show that Walsh's
method was to buy from himself, f1x his
own price, and put the money In his
pocket.
Illustration Of Walsh Financiering.
AS an illustration OF Walsh's alleged
procedure in finance the assistant dis
trict attorney cited the Southern Indiana
Railroad Company. reviewing its history
up to the time Walsh purchased it for
;175OO0.
HE had issued to himself" Dobyns
said. 100000 in bonds at the very time
it was organized. and these bonds had
no value. He put them into the Equitable
Trust Company. selling them at par. then
issuing another 100000 Of bonds and sold
them at par.
He took money from time to time from
the Chicago National Bank and from the
Equitable Trust Company to develop this
property, depos!ting worthless bonds, un-
TIL he had deposited with the former
100000 and with the latter $3.50, ,OoO He
| tried to get the bonds listed on the New
York stock exchange, but he was told
to show their distribution and the mat
ter was laid over. Later he stated that
they had been distributed. They had
been distributed in his own banks at his
cWn nrire