The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1908-01-18
Receives Verdict Calmly and
Formal Notion Is Made
for New Trial.
LAW WON'T PERMIT FINE
Is Convicted for Chicago National
irregularities on 81 of $50
Indictment Counts .- One
Of the Jurors Weeps in
Courtroom.

CHICAGO, JAN 1s--John r. Walsh,
president of the defunct Chicago Ma
tional Bank, was today found guilty of
nisappropriating the funds of that in
stitution. The jury. which had been
considering the case since Thursday
afternoon. reached an agreement short
ly after 8 o'clock this morning, but the
verdict was not announced until after
court reconvened at 10 o'clock.
The penalty under the law for the
crime of which Walsh was convicted
is Imprisonment for period of not less
han five years. 1t does not permit OF
he substitution of fine for the prison
term
Walsh was found guilty ON iifty-four
counts.
The original indictment contained 1s2
counts. Demurrers were sustained as
TO thirty-two counts. which left $50
upon which the jurors were required to
pass.
Immediately after the reading of the
finding attorneys for Walsh asked that
tic jury be poled. This was DONE.
Formal motion for a new trial was
made by Attorney John s. Miller. and
Judge Anderson set the hearing of the
AZ guments for January 2S. Walsh was
allowed to remain at liberty nn the
same bond of $50. 600 which had been
given after his indictment by the Fed
erai Grand Jury
Walsh received the verdict with little
show of emotion. On the contrary, one
of the jurors, Elbert Palmer, of Har-
Vard, ILL.,, burst into tears as he took
his seat sin the jury box, and was 50
sfoNercorne during the proceedings that
lie was scarcely able TO answer the
clerk when asked If the finding rep-
resented his views as to the guilt of
the defendant.
As the clerk read off the names, the
jurors in turn answered his question in
the affirmative. When it was Palmer's
turn to respond he arose with his head
bowed, swayed as though about TO fall,
and muttered something behind his
hand. Not until the question had been
repeated a third time did the juror
control his feelings sufficiently to reply.
Walsh was accused of having loaned
funds of the Chicago National Bank
and it's allied institutions, aggregating
some sixteen millions of dollars, on
fictitious and insufficiently secured
notes to nearly score of struggling
enterprises which he himself had
fc unded and practically owned. Many
of the notes, it developed at the trial,
We're signed, without authority, in the
mes of various employees of Walsh.
The directors of the Chicago Ma
tiona Bank testified that they were
not consulted by Walsh as to the maxi
ing of loans and that they knew moth
ing of them. Twenty of the notes
We're described as memorandum"
notes, and they formed one of the CHIEF
features of the trial. They represented
more than s2,00o,0oO. Methods of con-
cealment employed in carrying the
transactions on the books of the bank
and alleged Misrepresentation made in
reports to the national bank examin-
ers 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 institutions.
The defense took the ground that
all OF the Walsh enterprises were built
up In order to save and protect original
loans made by Walsh in good faith.
The claim was also made that Walsh
did not hold the controlling interest in
the corporations which profited by the
Bank held it, Walsh being only a trus-
tee and oonservator of the banks In
tcrests.
Walsh admitted nearly all of tho
transactions charged against him, but
clung to the defense that all he did
was for the good of the bank he headed,
and that all of the loans proved good.
and no one lost anything in consequence
of them.
Another fact brought out was that
the associated banks of Chicago took
pro-reta share of the $7,000,000 loan
negotiated by Walsh for the redemp-
tion of his securities. and that these
banks today hold the stocks and bonds
which Walsh was prosecuted for max
ing loans upon. This circumstance
was made the basis of Walsh's claim
throughout the trial that the value of
the securities had been established.
The trial covered a period of nine
weeks, and was twice interrupted by
Illness OF the Jurors.