Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1909-10-08
Circuit Court Affirlls Yer.
dict d, 4 Of Guilty.
CONTINUE TO FIGHT

: d. E. . =. Z F.. D. i F. rf =
Chicago, Oct 6.-John R. Walsh.
convicted Of misapplication OF the
funds of the Chicago National bank,
must serve a sentence Of five years
imprisonment imposed upon him by
the trial jury unless the supreme court
upsets affirmation of a verdict OF
guilty handed down by the United
States circuit court Of appeals here.
Counsel for Mr.. Walsh in their ap-
peal laid the greatest. stress on what
they alleged was lack of criminal
intent on the part of the defendant.
In the very lengthy brief which they
fled much law was quoted to show
chat the convicted banker used the
funds Of the bank in what he consid.
| cred a legitimate manner. .,e
The opinion of the court of appeals,
written by Judge Humphrey and
handed down by Judge Grosscup, is
brief and is confined almost wholly to
the question. of criminal intention.
Allegations that Juror Palmer was
unduly Influenced are dismissed with
q word and but little more is said in
eliminating allegations Of inconsist-
oncy and repugnancy. -
Walsh Remains at Liberty.
Counsel for Mr.. Walsh have thirty
days in which to file application for a
rehearing by the court of appeals.
Meanwhile he will be at liberty under
his present bonds Of $4,000.
The rise and fall of the fortunes of
John R. Walsh, who is now seventy
two years of age, forms an interesting
chapter in the history Of Americans
who have risen from obscurity to
power.
The three Walsh banks-the Chi.
cago National, the Equitable Trust
company and the Home Savings bank
were closed by the comptroller of
the currency Dec. 10, 1905, nearly five
years ago. At that time Walsh not
only owned these institutions and the
i Chicago Chronicle. but owned all or
| nearly all of the stock of score Of
p. railroad and industrial concerns.
ACCORDING to the brief Of the gov.
ernmsnt on the appeal all Of these
companies were bankrupt, or on the
IsfgS IS t, Xhsn secured by Walsh
/, ter-1ffle OF nothing> The securities
! We're Npmarketable and practically
VofthlS5s. Them i Is alleged Walsh
&rmed Corporations to buy these conf
Ranles from himself, taking in pay.
msnt: Stock Of the new corporations
Gid enough q thelf bonds Is repay
himself at their face value Tor The
sums he actually paid for them. In
this way, according to the prosecution,
he secured for nothing stocks and
tends to the face value Of $50 ZOO, 900.
,x Planned Great Rail System.
Walsh dreamed a great dream OF a
''Yailway system to be pieced together
from his scattered purchases which
would reach from the Mississippi to
the Ohio, through Illinois, Indiana,
Wisconsin and Michigan to Duluth
and Superior, Wis. The Quarries and
coal mines were to furnish much Of
| the traffic.
To secure funds Walsh had recourse
10 the funds in his banks. In cover
Ing up these loans it is alleged that
he used memorandum notes, signed
with the names of clerks who were
not consulted in the matter. There
was nothing on the books to show
that Walsh had received the loans.
Even Fred Blount, the vice president,
Is said to have been ignorant on the
matter. For collateral Walsh depos.
tied the securities of his various en-.
terprises.
For two years it 10 charged that
Walsh ignored the demands of the
comptroller of the currency that he
place his banks upon a firm founda,
ton and when the crash came it was
discovered that Sc per cent Of the
securities held were those Of Walsh
properties. OF the $25,000,00 depos.
IT. $16,000,000 were represented BY
the paper and securities Of the Walsh
enterprises.