The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1909-10-06
opinion Of court Of AppeaIs.
No Error in INSTRUCTIONS.

a consistency in the verdict"
No Error in Instructions.
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
misapplication of bank funds by an Of
ficer which would be innocent and not
criminal, and there could be misappli
cation which under the statutes would
be criminal. What would show the diff
ference between Interpretations which
were criminal and those which were not,
what would show innocence Of guilt.
good faith or bad faith, the court
sought by instruction carefully to de-
fine, and we think did fairly define"
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.
Rise and Fall of Walsh.
The rise and fall of the fortunes of
John r. Walsh, who is now Y years Of
age, forms an interesting chapter in
! the history of Americans who have
risen from Obscurity to power.
National the Equitable Trust company
and the Home Savings bank-were
closed by the comptroller of the cur
rency on Dec. IS. 1905, nearly four
years ago. At that time Walsh not
only owned these institutions and the
Chicago Chronicle, but owned ali, or
nearly all. of the stock of the following
companies:
The Acme Gas company, the Bedford
Belt Railway company, the Bedford
Quarries company, the Chicago South
eTn Railway company, the Chicago
Wharfing & Storage company, the In
diana Southern Coal company, the Il
linois Southern Railway company, the
Lake Michigan Car Ferry TTanspOrta-
ton company. the Mount Olive & Stan
ton Coal company, the Ohio Quarries
company of Ohio, the Ohio QuaTTies
company of Illinois. the Southern In
diana Coal company, the Southern In
diana Railway company, the Southern
Missouri Railway company and the
Wisconsin & Michigan Railway COM
pany.
Stock Cost Little.
According to the brief of the govern
ment on the appeal, all of the cOmpa-
mics were bankrupt, or on the verge of
it, when bought by Walsh for little or
nothing. Their securities were I'M
marketable and practically worthless.
Then, it is alleged, Walsh formed cor
porations to buy these companies from
himself. taking in payment stock of the
new corporations and enough of their
bonds to repay himself at their rae
value for the sums he actually paid for
them.
In this way. according to the prose-
cution. he obtained for nothing stocks
and bonds to the face value Of SSOOOG,
900.
Walsh dreamed a great dream of Il
railway 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
Mimi, and Superior. Wis. The quar-
ries and coal mines were to furnish
much of the traffic.
Use of Dummies.
To obtain funds Walsh had recourse
to the funds in his banks. In covering
up these loans. it is alleged, he used
memorandum notes signed with the
names Of clerks. who were not consult
ed 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 subject. For collateral
Walsh deposited the securities of his
various enterprises.
For two years it was charged that
Walsh ignored the demands of the
comptroller of the currency that he
place his banks on a firm foundation,
and when the crash came it was dis
covered that sc per cent of the securi-
ties held were those of Walsh's proper
ties. OF the $25, 0OO, coo deposits, s16.OOO.-
600 were represented by the paper and
securities of the Walsh enterprises.