The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1908-01-23

Chicago, Jan. 2i.-The Jury which q
been considering the case Of John@sRla
Walsh. charged with misrepresentation:
funds OF the Chicago National bank.I
returned q verdict Of guilty today aSd
ter celebrating on the evidence sinCo3
3 O'Clock Thursday afternoon.
The penalty under the law for thof
crime OF which Walsh is convicted NJ
imprisonment. for 9 period OF not sie.9f
than ave years. 1t does not perrnltI
the substition OF q fine for q PRISON.
term. \
A formal motion for q new trial wasI
made by Attorney John s.. Miller. Judgoi
Anderson set the hearing for arguI
lowed to remain at liberty on a bond(
Of 50.000.
Walsh wal found guilty on 81 countal
This original indictment contained 1O1l
counts. Dcmurrers were sustained a.
to 80 which left $50 upon which the
jurors were required to pass.
Walsh was present in the courtroom|
and received the verdict with little
show of emotion.
On the contrary, one OF the jurorA.I
Ebert Palmer. OF Harvard, ILL.,, BURST
into tears. and was so overcome DUR
able to answer the clerk when asked
II the finding represented his view an
to the guilt OF the defendant.
The charge against Walsh grew out
of the closing In 1905 Of the Chicago Ma,
tional bank. OF which Walsh wasA presi-l
dent, and its allied institutions, thOI
Honar Savings bank and the EquitabloI
Trust company. Walsh was accused
of having. loaned und to these fnsti-t
tutions, a~ggregating some SIG, 100000 oni
fictitious insuff1ciently secured notes t0}
nearly a score of struggling enter-t
prises which he himself had founded
and practically owned.
Cperatod in Stocks
Walsh was formerly among the politI
zeal leaders of Chicago. His daring op.l
erations in the financial world before
his sudden reinforcement succeeded ini
gaining for him a reputation OF ainan
OF great wealth. He operated heavily fnI
railroad stocks In Illinois, Indiana
Wisconsin and Michigan hadt
many big deals In process OF formationl
at the time of his sudden collapse.
With two Chicago banks completely
under his control. Walsh never wanted!
for money. He never attempted to deny
that be used the funds of the banksI
for speculation. The theory of the del
Tense all through the trial was that as
president of the bank Walsh had the
right to borrow the money belongings
to the depositors and use 1t in his own
name. but IN his official capacity.
Arrested Two Years Ago.
Nearly two years have elapsed since
" Las q AllSt llSSlCu ny LNG ISOeTAIt
authorities on March 2. 1906, following
the closing of his banks on December
18, 1905. The case ran along for4
months with apparently nothing dos
ing when che business world was elec-
trified again by the indictment REL
turned against Walsh by the federal
grand jury.
r efforts In which the most taf-
ented counsel participated were made
to quash the indictment. Judge Ander-,
son, on February s. OF last wear re-
fused to accede to the demand and
made another similar ruling on .TIlna,
IA. at which time he. also refused, to-
grant the defense 81 bill of particulars.
Walsh Defense.
The trial before Judge Anderson was
begun November II.
Walsh's lawyers advanced the pIea,
that usage by national hank officers,
sanctioned the loans admitted to have,
been made on memorandum notes for
many thousands of dollars. It was
claimed that the investments made by.
Walsh were mad in the interest Of de-
positors, and that If he had been left in,
control of the properties in which his
banks funds were invested the de-
posters would have benefited.
To sustain this theory, many wit
nesses We're called to prove the value
of the railroad properties and the
thrifty condition Of the sections
through which the roads pass.
Government officials, including ma
tional bank examiners, testified to the
extent Of Walsh's loans from the
banks and of alleged demands that
Walsh,s System of banking be COR
rected n put upon a legitimate basis.