The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1909-10-06
81 Aannciatnn Praaa


Cnicago, Oct. 5.-The verdict OF the
crial court which found John r. Walsh
guilty OF misapplication OF the funds
OF the Chicago National Bank, was
= affirmed by the United States circuit
court or appeals here today.
ar. Walsh must serve the sentence
OF nve years Imprisonment imposed
upon him by the trial Jury, unless the
supreme court upsets today's af1rma-
sion of the verdict of guilty.
The opinion of the court of appeaIs
written by Judge Humphrey and
handed down by Judge Grosscup. is
brief and confined almost wholly to
the question Of criminal intent The
aiegation that Juror Palmer was IN
duly influenced is dismissed with a
word, and but little more is wasted in
eliminating the allegation OF inconsis-
tency and repugnancy.
VERDICT NOT INCONSISTENT.
me opinion says that II there Is no
inconsistency In the verdict as to the
substance OF the charges in the va
rlous counts, there is no reason to
disturb the verdict on the ground of
Inconsistency.
As to Juror Palmer, the opinion
says the record does not show that
any improper influence worked upou
the jury and that the attempt by one
OF the jurors after the verdict to inn
/ peach his verdict can have no con-
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 5000 there could be
misapplication OF bank funds by an
officer which would be innocent and
not criminal and there could be mis-
application 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 de-
fine"
Counsel for Mr.. Walsh have thirty
days in which to file application for a
reheaT'~ g by the court of appeals.
Meanwhile he will be at liberty under
his present bond of $4,000.
BANKS WERE CLOSED.
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 on December Is, 1905,
nearly four years ago. At that time
Walsh not only owned these institu-
tions 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, the Bedford Quar-
sries Company, the Chicago Southern
Railway Company, the Chicago Wharf
Ing and Storage Company, the Indiana
Southern Coal Company, the Illinois
Southern Railway Company, the Lake
Michigan Car Transportation Com
Tpany, the Mount Olive and Stanton
Coal Company, the Ohio Quarries
Company (of Ohio, the Ohio Quarries
Company (of niinois), the Southern
indiana Coal Company. the Southern
Indiana Railway Company. the South
ern Missouri Railway Company, and
the Wisconsin and Michigan Railway
Company.
ALL WERE BANKRUPT.
According to the brief of the gov
eminent on the appeal, all of these
companies were bankrupt, or on the
verge of It, when secured by Walsh
for little or nothing; their securities
were unmarketable and practically
worthless. Then, II is alleged, Walsh
formed corporations TO buy these
companies from himself, taking in
payment stock of the new corpora
lions and enough of their bonds to
CONTINUED on Fifth Page.)