The Washington times., 1909-10-05
Circuit Court of Appeals
Upholds Lower
Decision.
AT LEAVENWORTH
FOR FIVE YEARS
Aged Millionaire's Only Hope Now
Rests With United States
Supreme Court.

CHICAGO, Oct. 5.-The United
States circuit court of appeals.
Judges Grosscup, Baker, and
Humphrey sitting, today affirmed
the decision of the lower court in the
case of John R. Walsh, the aged
millionaire banker, convicted of
wrecking three Chicago banks.
This decision means that Walsh's
motion for a new trial is denied. Un-
( less the Supreme CouIi of the
United States reverseS the appellate
court, Walsh will have to serve five
years in the Federal prison at
Leavenworth, Kan.
ONE LONG FIGHT.
The decision handed down today
by the United States Circuit Court
Of Appeals marks another step IN
Walsh's long fight against big foes.
which includes many powerful hnan-
ciers.
Walsh smiled when the decision
was read His attorneys at once
notified the court that within thirty
days they would ask a rehearing,
or appeal the case to the highest
court in the land Walsh re-
iterated the statement he made
when he was originally sentenced
that he had lust begun to fight"
] An aggregate penalty of $40 years
in the Federal prison at fort
Leavenworth was possible under
the verdict of the jury which was
acted upon today.
Walsh has waged a bitter fight
since January is. 1908, to avoid
the prison term, and his opponents
the Government lawyers. headed by
United States District Attorney
simms-have been just as insistent
in demanding that he occupy one
OF the cells in Bankers Row" al
Leavenworth.
On Fifty-Four Counts.
Walsh was convicted on hfty-four
counts of an Indictment involving nine
series OF transactions. These included
the Ioaning Of banks money on mem
orandum notes and the purchase Of
DoLds OF the Illinois Southern and Wis
consin and Michigan railroads Accord
/ ing 70 the State these memorandum
notes" were issued for an amount just
below the legal limit usually for $500
They were signed with the names Of
some of walsh's employees. although
without their knowledge or consent. The
collateral TO the notes was the bonds
OF WaIsh's personal enterprises. which
the Government declared We're prac-
tically worthless. The notes were then
to be discounted in the bank and cash
iers checks were made out 70 dummy
Walsh then deposited the checks 10 his
own credit in the bank. and used the
money for the promotion Of his private
enterprises.
When this verdict was given. the jury
declared the defendant. Walsh. had
mlsappropriated 100000. although the
full Indictment charges s7.Ooooeo.
Banks Close Doors.
The three Walsh enterprises-the Chi
cago National Bank. the Home Savings
Bank. and the Equitable Trust Com
pany-closed their doors December Is
1906 after inquiry into their conditions
had been made by c. II. Bosworth. na-
tional bank examiner. and State Bank
Examiner Jones. The long negotiations
concerning the building OF the Walsh
railroads. particularly the Chicago
Southern into Chicago. were investigat-
ed and the clearing house bankers dis
posed OF most OF the readily saIabIe
assets.
An indictment containing 1s2 counts
was returned January 3. 1907, against
Walsh and the case was called for trial
November II. The verdict finding
Walsh guilty on ffty-rour counts was
returned by the jury In Judge Ander-
sons court January IS. 1905
A motion for new triaT was over
ruled March Is and the banker was
sentenced 20 five years I'm the peniten-
tlary The appeal TO the United states
Circuit Court Of Appeals by Walsh was
argued May 20. and q. 1909.
The decision which affirmed the de-
cisiOn rendered on January IS 1875, IN