The Monte Vista journal., 1908-01-25
oANksR WALSH FOUND GUILTY.

BANKER WALSH FOUND GUILTY.
Maximum Penalty Five Hundred and
Forty Years Imprisonment.
Chicago John r. Walsh. former
president Of tho Chicago National
bank, which closed its doors In Do
csmbsr. 1906. was found guilty satur'
day on afty.four counts Of the indlct
msnts against him charging misapplt
cation Of the banks funds.
The verdict was returned BY . Jury
n the Federal District Court here.
Walsh was permitted to remain q
liberty under the bond furnished py
him after the Indictment had been re-
turned AGAINST him one year ago. pend
ing the hearing Of arguments January
1Sth ON . motion by his counsel Tor
new TRIAL.
The penalty fixed by the statutes for
the o6enss Of which the aged Anancier
was convicted 10 imprisonment for
not less than nve years or more
than ten. for each count upon which
his guilt was established.
When the Jury was polled at the re-
quest Of Attorney John 8. Miller, OF
counsel for the defense, Ebert Palmer,
. juryman from Harvard. ILL.,. was
overcome BY emotion and wept - he
signifed his acquiescence In the md
ing.
The charge against Walsh grew out
Of the closing In 1905 Of the Chicago
National bank, Of which Walsh was
president and it, allied institutions.
the Home Savings bank and the EQui-
table Trust Company. Walsh was &C.
cused Of having loaned funds Of these
institutions. aggregating $4,000 900 on
fictitious and insumciently secured
struggling enterprises which he him
self had founded and practically
owned. Many OF the notes. 1t devel.
oped at the trial. were signed without
authority BY the names Of various en-
ployes Of Walsh.
The directors Of the bank testified
thsy were not consulted BY Walsh ~
70 the making Of the loans; that they
know nothing Of them. Twenty-six Of
tAe notes we're Described - ''memor.
andum" notes and they formed one
q the chief features Of the trial. They
represented more than S2.000. 900.
Methods Of concsalmsnt employed In
carrying the transactions on the books
q the bank and alleged misrepresen-
tations made in reports to the national
bank examiners kept the latter In
ignorance Of the true coalition Of the
banks finances and the nature Of their
securities for several years prior TO
Tie closing Of the institution.
The defense took the ground that
oil q the walsh enterprises were
6u1t up In ocder. to save and protect
original loans made By Walsh IN good
hath.
The claim vas also made that Walsh
"a not hold The Controlling interest
b tAe corporations which peodted BY
u Ioaaa. Sat tHat ~ CSjcaso M.
0eoAf boAk Ael1 n walsh boanI oaly
. tSuseoe and Q eoosesvatoe q IL
hanks Interests. Walsh vas o. the
vitnsee Stand tor two days. He ~.
nittsd nearly al q The tfanaactions
charged against him. bat chung te the
eeeense that al b did was for the
BOD q the banks b hsaded and that
I'll q the loans proved good and that
- 90 lost anything IN coaseQuonee
q then. IoF =
In substaatiatioa oe the later claim
u os9eass offered evi6ence to chow
that since the closing Of The banks
walsh had bought back the collateral
taken fro@ him By The clearing house
banks. amounting 10 $1,000. 900, giving
b payment Q note for the came
snoont payable In Eve years. The
collateral released. Walsh Vas able 70
20 eAsad with the building q bis rail-