Elk City mining news. (Elk City, Idaho) 1903-1913, 1908-02-01
]. R. Walsh, GUILTY.
JURYS VERDICT AGAINST The
CHICAGO BANKER.
On 50 Counts of the indictments
Against Him Charging MlsappIica-
ton of Banks Funds-One Juror
Cries When Verdict Was Read
walsh Out on Bail.

John R. Walsh, former president of
the Chicago National bank, which
closed its doors in December, 1905,
was found guilty at Chicago on "a
counts of the indictments against him
charging misapplication of the banks
funds. The verdict was returned by
Jury in the federal district court
here.
Mr.. Walsh was allowed to remain at
liberty on bond furnished by him after
the indictment has been returned
against him, one year ago to day,
pending the hearing of arguments on
January 20 on motion by his counsel
for a new trial.
The sum of approximately $1,000,000
was involved in the illegal transac-
tons. The maximum penalty of 10
years on each of the 81 counts consti-
tuting this act would make it possible
for Judge Anderson to impose a SEN
tence of $40 years in The penitentiary.
The reading of the verdict was fol-
lowed by a scene intensely dramatic.
When the jury was polled at the re-
quest of Attorney John S. Miller of
counsel for the defense, Ebert Palmer,
a juror from Harvard, ILL.,, was over
come by emotion and wept as he signi-
fed his acquiescence in the finding.
He sat with his head bowed upon his
hands during the preliminary proceed
ings and failed to rise to his feet as
the others had done to reply to the
Interrogation by the clerk, WAS this
and is this now your verdict" A bail
if touched his arm when his turn
came to answer. He apparently had
not heard the question, and 1t was re-
peated. Palmer rose and stood I'M
steadily, with eyes downcast, and
muttered something unitelligible to
the court and attorneys. Under
prompting by Judge Anderson the
juror then replied with apparent effort
and while the tears course down his
cheeks, yes, under the instructions
as l understand them" 4
When the poll was completed Palmer
was questioned further by the court
at the request of Attorney Miller and
in answer to the question previously
put to him replied: Il have to say
yes"
Pity for Aged Offender.
1t developed later that Palmer was
largely responsible for the long DELHI
Grafton of the jury. So insistent was
he that Walsh be acquitted that he
forced his fellow jurors to take sep
arate ballots on every one of the $50
counts in the Indictment
HE is sucn an old man-over 70
years" is said to have been the con-
slant plea of Palmer He was tech
nically guilty, but none of his deposit
tors lost, and what is the use of send
ing an old man to PRISON." he is
quoted sa having urged upon the
other jurors time after time He is
said to have wept at times in the jury
room as he begged the others to con-
slider the age Of the defendant and
have compassion.
The verdict was the result of nearly
Sc hours elaboration on the part of
the jurors.
walsh, the subject of his compass
sion, who sat at a table surrounded
by his attorneys, appeared less moved
by the result of the long trial than
almost anybody else concerned
Charge Against Walsh.
The charge against Walsh grew out
or the closing in 1905 of the Chicago
National bank, of which Walsh was
president, and its allied institutions,
tne Home Savings bank and the
Equitable Trust company. Walsh was
accused of having loaned funds Of
these institutions, aggregating 49,
ooo,OOO, to fictitious and insuffioiently
secured struggling enterprises which
ne himself had founded and practical
ly owned.
Inc directors of the bank testified
tney were not consulted by Walsh as
70 the making of the loans; that they
knew nothing of them. Twenty-six of
the notes were described as "mem-
orandum" notes and they formed one
OF the chief features of the trial. They
represented more than $4,000 900.
The defense took the ground that
al OF the Walsh enterprises were
Quilt up IN order to save and protect
original loans by Walsh in good faith.