Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-01-18
VERDICT Of GUILTY
N XALSH'S CASE.
Chicago Banker Convicted By
Jury After Many Hours OF
Deliberation
GUILTY ON FIFTY-FosR COUNTS
Unless New Trial is Granted Aged
Banker Must Serve Term in Prison
NO Fine is Permitted = Motion for
New Trial to Be Heard Feb. 4. -
Wash's Frenzied Financierins.

Chicago, Jan. 1S.-The jury which
has been considering the case of John
II. Walsh, charged with misappropri-
ating the funds of the Chicago Ma
tional bank returned a verdict of
guilty today.after celebrating on the
evidence since 5 o'clock Thursday aft
ernoon. The penalty under the law for
the crime OF which Walsh is convicted
is Imprisonment for period not less
than five years. 1t does not permit
the substitution OF a fine for q prison
term
Walsh was found guilty on fifty
four counts. The original indictment
contained 2O2 counts. Demurers We're
sustained as to thirty two, which left
$50 upon which the jurors were re-
quired to pass. Walsh was present in
the court room, and received the ver-
dict with little show of emotion. On
the contrary, one of the jurors, Ebert
Palmer, of Harvard, ILL.,, burst into
tears and was SO overcome during the
proceedings that he was scarcely able
to answer the clerk when asked If the
finding represented his view as to the
guilt of the defendant.
The charge against Walsh grew out
of the closing, in 1905, of the Chicago
National Bank, of which Walsh is
president, and its allied institutions.
the Home Savings Bank and Equitable
Trust Company. Walsh was accused
of having loaned funds to these in
stitutions aggregating some $16,OOO.000
on fictitious and insufficientiy secured
notes, to nearly score Of struggling
enterprises which he himself had
founded and practically owned.
Many of the notes. it developed at
the trial, We're signed without authori-
.ty, in the name of various employees OF
Walsh. Directors of banks took the
stand, and testified that they We're not
consulted by Walsh as to the making
of loans, and that they knew nothing
of them. Twenty-six of the notes wers
described as memorandum notes.
and they formed one of the chief fea-
lures of the trial They represented
more than $2,0O0,0O0. The methods Of
concealment employed in carrying the
transactions on the books of the bank,
and alleged Misrepresentation made
in reports to national bank examiners,
kept the latter in ignorance of the
true condition of the banks finances
and the nature of their securities for
several years prior to the closing of
the institution. The defense took the
ground that all the Walsh enterprises
were built up in order to save and pro-
tect original loans made by Walsh in
good faith.
Walsh was on the witness stand for
two days. He admitted nearly all the
transactions charged against him, but
clung to the defense that all he did was
for the good of the bank he headed.
that all the loans had proved good and
that no one had lost anything in con-
sequence of them.
Formal motion for a new trial was
maze ny AllOlACy OOllAi ~. NAiitSA'
Judge Anderson set the hearing on the
arguments January 23. Walsh was al
lowed to remain at liberty on a bond
of s5O,OO0.
Tho tremendous flow Of cash from
banks thruout the country to New
York banks was indicated today by the
bank statement, which showed an in
crease of 26,1S6,0OO in the amount of
cash held by the New York clearing
house institutions. Bankers regard the
return of this large amount as an end
to the previous disposition to hold
cash in the interior and as showing
that there will hereafter be no short
age of funds for all legitimate pur-
poses here.
Walsh in Good Spirits.
John r. Walsh, the aged defendant,
arrived in the court room ten minutes
before the jury entered and began
chatting with his attorney and per-
sonal friends. He seemed in the best
spirits and looked more unconcerned
than any of his attorneys. From ap-
pearances he and the attorneys were
confident of acquittal. When the jurors
took their seats in the court room
"
scanned their faces All the jurymen
appeared unmoved with the exception
of Palmer, and his state of mind was
noted by Walsh and the attorneys
moment later the verdict was read by
the clerk of the court. Walsh sat mo-
tionless and the crowd Of spectators
was hushed with suppressed excite
ment. After reading the verdict and
moving for new trial. the defendant
arose from his seat and was immedi-
atelv surrounded by a score of friends
who pressed forward to shake his hand
and speak a word of sympathy. He re-
ceived each with a smile but refrained
from making any comment.
From four to ten ballots. it developed,
were taken by the jury on each of the
13O counts in the Indictment There
was much discussion by the Jurors,
first on the question Of intent. On this