Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1909-12-08
BUT ONE COURT
LEFT FOR WALSH
JUDGES GROSSCUP, SEAMAN
AND BAKER DENY
REHEARING.
DEFENDANT IN MARSHAL'S GUS
TODY-WILL CONTINUE
FIGHT.

Chicago, Dec. 4.--Another avenue
of escape from serving the sentence
of five years Imprisonment in the
Leavenworth federal prison for mis-
applying the funds OF the Chicago
National bank, was closed to John X.
Walsh here yesterday by the ruling OF
Judges Grosscup, Seaman and Baker
in the federal circuit court of appeals,
denying him a rehearing in that court
and refusing to continue the bail I'M
der which he has been at liberty since
the sentence was pronounced.
After the decision was read John
r. ]. Walsh, once the head of three
banks and the owner of number OF
railways and a prominent financial
factor in Chicago was taken into GUS
tody by Deputy United States Marshal
Edward Northrup.
The custody is special custody
and means that deputy marshal viii
accompany John R. Walsh wherever he
goes, until further action is taken in
the case.
Wants Case Reopened.
Arguments will be made next Tues
day on a motion of Walsh's counsel
to reopen the case and present fur
Their reasons why the mandate should
be stayed until application can be
made to the supreme court for relief.
The denial of the motion for a re-
hearing leaves Walsh without other
resource than the supreme court TO
stay the execution of the sentence
committing him to five years in the
Leavenworth federal prison. The
court declined to admit him to bail,
but permitted him to defer the begin
ming of the sentence pending applica-
ton to the supreme court, placing him
meanwhile in the custody of the Unit
ed States marshal.
The action of the court was based
on the precedent created by the Morse
case when the New York financier in
stead of being sent to the federal
prison was committed to the Tombs
pending an appeal to the United
States supreme court
History of the Case.
The John r. Walsh case in which
the ruling of the court was announced
yesterday has been in different phases,
prominently before the public since
the three Walsh banks, the Chicago
National bank. the Home Savings
bank and the Equitable Trust com
pany were closed December IS, 1905.
An indictment containing 1872 counts
was voted against Walsh, January 8,
1907 by the federal grand jury charg-
ing him with misapplying the funds of
the Chicago National bank while he
was its president November II, in
the same year the trial of the charges
against him was begun before Judge
A B. Anderson in the federal district
court, and January IS, 1908, a verdict
finding him guilty on ffty-four counts
was returned to the jury.
In the trial repeated reference was
made to memorandum notes" for
large amounts signed by minor en-
ployes of the bank and secured by
bonds and other collateral of railway
companies controlled by Mr.. Walsh,
on whicl. money was advanced by the
bank.
The question of intent to defraud
figure largely in the argument of
counsel and in the instructions of the
court to the jury. The judgment OF
the lower court was appealed to the
United States circuit court of appeals
and was sustained by Judges Gross
cup, Baker and Humphreys.
Reasons for Petition.
The petition for rehearing of the
appeal which was decided yesterday
was then presented by counsel for
Walsh. and was principally based on
the contention that the verdict of the
jury finding the former banker guilty
on the different counts was inconsist-
ent and repugnant in that if he were
guilty as described in one of the
counts of violating the law in a par
ticular manner he could not possibly
be guilty of the same violation in a
different manner as charged in an
other count.
The government took the position
that the verdict was in effect a gen
eral verdict of guilty, and that the
sentence of five years Imprisonment
in the Fort Leavenworth federal pr1s-