Omaha daily bee., 1909-10-06
Question of Intent Practically Only
One Before the Jury.
NO IMPROPER INFLUENCE USED
Allegation that Juror Was Tempered
with Not Proven.
HISTORY OF FAMOUS CASE
Banker, Publisher and Railroad
Owner Convicted of Improper
Use of Deposits in His
Various Enterprises.

CHICAGO H.. oct. 5-5uhn r. walsh.
convicted of misapplication OF the funds
Of the Chicago National bank. must serve
the sentence OF five years Imprisonment
imposed upon him by the trial jury, save
In the event the supreme court upsets
the affirmation Of the verdict OF guilty
handed down by the United States cir
cult court of appeals here today.
Counsel for Mr.. Walsh in their appeal
laid stress on what they alleged was a
lack of criminal intent on the part of
the defendant. In the very lengthy brief
which they filed much law was quoted
to show that the convicted banker, news
paper publisher and railroad owner, used
the funds OF. the bank in what he con-
sidered a legitimate manner.
The opinion of the court of appeals
written by Judge Humphrey and handed
down by Judge Grosscup, is brief and
confined almost wholly to the question
OF criminal intent The allegation that
Juror Palmer was unduly influenced is
dismissed with word and but little more
Is wasted in eliminating the allegation Of
inconsistency and repugnancy.
so long as there is no inconsistency in
the verdict as to the substance of the
matter charged in the various counts, Z"
says the opinion, the verdict will not be
disturbed. II the gravamen OF the charge
In each count on which there has been a
verdict Of guilty Is the same. there is a
consistency In the verdict"
No Improper Influence,
Ab to Juror Palmer, the opinion reads 4:
The record does not show that any
improper influence worked upon the Jury
The return made to the court was in fact
the verdict of twelve jurors. The attempt
oy one OF them afterwards to impeach his
verdict can have no consideration. This
doctrine is we'll established and is based
upon reason as well as upon authority"
In the instructions given the jury by
Judge Anderson in the trial court the
higher tribunal finds no error AS to the
lack OF criminal intent the opinion reads:
Under section 52O9 there could be
interpolation of bank funds by an officer
which would be innocent and not criminal
and there could be msapplication which
under the statutes would be criminal
What would show the difference between
Interpretations which were criminal and
those which were not, what would show
Innocence or guilt good faith or bad faith
the court sought by instruction carefully
to define and we think did fairly define"
Counsel for Mr.. Walsh have forty days
in which to file an application for a re-
hearing by the court of appeals. Meanwhile
he will be at liberty under his present
bonds of $4,000.
The court room was jammed with a
crowd which overflowed into the corridor
during the proceedings. Tho eleventh hour
attempt OF the defense to file additional
citations designed to show lack Of criminal
intent came to naught The matter was
taken under consideration by those con-
cerned before court opened and a decision
reached that the new arguments would in
no wise alter the opinion as already writ
ten.
Walsh Great Promoter.
The three Walsh banks-the Chicago Ma
uonal' the Equitable Trust company, the
Home savings bank-were closed by the
comptroller OF the currency on Dec Is,
l9Oo' nearly five years ago. At that time
Walsh not only owned these institutions
and the Chicago Chronicle, but owned all
or nearly all OF the stock of the following
companies:
The Acme Gas company the Bedford
Belt Railway company, Bedford Ouarries
company, the Chicago Southern Railway
company. the Chicago Wharfing and Stor-
age company the Indiana Southern Coal
SOhlpdhys Nle llllIOlb SOQtnern HALLWAY
company, the Lake Michigan Car Ferry
Transportation company. the Mt. Olive and
Stanton Coal company, the Ohio Ouarries
company (of Ohio) the Ohio Quarrles COM
pany (of illinois,. the Southern Indiana
Coal company, the Southern Indiana Rail-
way company, the Southern Missouri Rail
way company, and the Wisconsin and
Michigan Railway company.
According TO the brief of the government
on the appeal all OF these companies were
bankrupt, or on the verge of 1t, when
bought by Walsh for little or nothing
Their securities were unmarketable and
practically worthless. Then, it is alleged
Walsh formed corporations to buy these
companies from himself, taking in payment
stock Of the new corporations and bonds
CONTINUED on Second Page1