Rocky Ford enterprise., 1908-01-24
BANKER WALSH FOUND GUILTY.
Maximum Penalty Five Hundred and
Forty Years Imprisonment.

VSsSy uVaTo sHuPs'sS"us's
Chicago John r. Walsh. former
president OF the Chicago National
bank. which closed Its doors in De-
cember. 1905. was found guilty satur-
day on fifty.four counts Of the indlct-
ments against him charging misappli-
cation Of the banks funds.
The verdict was returned by jury
In the Federal District Court here.
Walsh was permitted to remain ut
liberty under the bond furnished by
him after the Indictment had been re-
turned against him one year ago. pend
ing the hearing Of arguments January
2Sth on motion by his counsel for o
new trial.
The penalty fixed by the statutes for
the ofYense OF which the aged financier
was convicted Is imprisonment for
not less than fve 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 NJ he
signified 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 Its allied institutions.
the Home Savings bank and the EQui-
table Trust Company. Walsh was ac-
cused Of having loaned funds OF these
institutions. aggregnting $lG.00O.OOO on
fictitious and insufiicsently secured
struggling enterprises which he him.
self had founded and practically
owned. Many OF the notes. II devei.
oped at the trial. were signed without
authority blythe names OF various en-.
ploycs OF Walsh.
The directors Of tho bank testified
they were not consulted by Walsh as
to the making OF tho loans: that they
knew nothing Of them. Twcnty.six Of
the notes were described ~ "mcmor-
andum" notes and they formed one
Of the chief features OF tho trial. They
represented moro than $:.Ooo.ooo.
Methods Of conccaimcnt employed In
carrying tho transactions on tho books
of tho hank and alleged mIsrcprcscn.
taiions made In reports to tho national
bank examiners kept tho latter In
Ignorance OF tho true condition OF tho
banks finances and tho nature OF their
securities for several years prior To
the closing OF the Institution.
The defense took tho ground that
all Of tho Walsh enterprises wcrc
built up In order 10 savo and protect
original loans made by Walsh In good
faith.
Tho claim was also made that Walsh
did mot hold tho controlling interest
In tho corporations which proui-d by
tho loans. but that the Chicago Ma
iionai bank held IL. Walsh being only
. trustee and consrrraioe Of tho
hanks Interests. Walsh was on tho
witness siand for two days. Ho ad.
mittcd nearly all Of tho transactions
CHARGED against him. but ciunE To tho
defense that all he did vas for Us-
good Of tho banks hc headed and that
all Of tho loans proved good and that
no ono lost anything Ia consequence
Of them.
In substauiiatiou Of tho latter claim
tho defense offered evidence TO show
that since the closing OF tho banks
Walsh had bought back the collateral
taken from him by tho clearing house
banks. amounting To t'.oco.oco. giving
In payment a no;p for tho same
amount. payable In I'VE years. The
collateral released. Walsh ~as able TO
go ahead with the building Of his rail.
roads.