The Washington herald., 1909-11-07

names. When Il comes 20 the matter Of
the laws dealing with them there begins
to he a sharp divergence.
Charles W. Morse already has tasted
Of the bitterness Of Imprisonment. John
r. Walsh has not spent an hour in JAIL
although the crime OF which he was con-
victed and is now under sentence OF five
years imprisonment IN the Federal peni-
tentiary in Leavenworth, Kans., was
committed four years ago. Morse, through
the devotion OF his wife. regained his lib
erty. only to be thrust back behind the
bars. It was a long and hard task TO pro-
cure the bond in the first place. It served
only as a temporary expedient.
Walsh goes to his Office In Chicago
every day when his seventy-two years
VIII allow him TO go and that Is most oi
the time. In spite Of his three-score
years and twelve. he still has a lot OF
the energy and fight that made him in
former days one Of the most conspicuous
capitalists and nnanCieTs in the West.
He has been privileged TO he with his de-
voted family. whose loyalty, in Quieter
way. IS as beautiful as that Of Mrs.
Morse toward the Wall street banker.
He Is as welcome as in the old days 20
the clubs. Those i'm whose debt he is to
the extent Of millions are about the last
men in Chicago TO say for publication
anything against the man who mpcled
the Chicago National Bank and its allied
institutions
Similarity OF Grimes.
Morse and Walsh both were charged
with transeressing the banking laws.
They used the money Of others in a way
that the statutes did not sanction. II the
charges against them be true. There
may have been differences or detail IN the
alleged wrongful things they did. but the
principle involved was the same
Compared with Walsh. the Wall street
man Is still IN the prime OF life. He
might spend a term in prison and come
out strong and ready 20 begin life over
again. Recent reports that he added
100000 20 his fortune the short time he
was out on bond, whether true or not, in
dicate that the blows that have fallen on
him have not put him out Of the running
as a winner Of wealth. For him there is
hope after whatever penalty he may pay.
For Walsh prison cell probably would
mean, sooner or later. a death chamber.
Mr.. Walsh is used TO hard work. to
reckoning with vast detail Prison life
will be no laughing matter for such n
man. He has for years been lord Of
business over men. brooking no nterfer-
ence with his viii He can't be that in
Leavenworth His age renders it unlikely
that he will he able 20 do any physical
work His friends feel that once ne is
restrained behind iron bars the warrant
of his death will have been virtually
signed. That is the reason they are max
ing with him so vigorous a fight 20 ward
off the day Of reckoning.
In the case of this man the mills OF the
courts are grinding slowly. In one month
more 81 will he four years since the three
banks, Of which Walsh was the executive
head, quit doing business and the associ-
ated banks Of Chicago began TO pay the
depositors what Walsh owed them. The
man whose dnanciering wrecked the
banks Is still under a big obligation TO the
Institutions which came 10 the rescue OF
the hundreds of depositors. His debt 90
them is something like 100000 II is
the supreme effort OF Mr. Walsh just now
20 raise money to satisfy these creditors.
20 that he will not have 20 sacrifice many
millions Of dollars Of securities and prop
erty.
History of WaIsh's Crime.
Tt was on the DlOIllllE OF IfCFUlUtI Is,
1895, that the Chicago National Bank. the
Home Savings Bank. aud the Equitable
Trust Company ceased 10 do business and
closed their doors. That was on a Mon
day morning. Far into the night OF Sun
day-in fact. till almost the coming OF
representative Of the other banks
I'm the Chicago clearinghouse had been
in conference trying 10 devise a way "a
save the banks from wreck and the city
from a financial panic Walsh and his
advisers were in that conference.
The man who had presided as the fnan-
Cial genius over the trio OF banking insti-
tutions protested long and loudly that II
he were given one more opportunity he
would ward of collapse.
over the business of the banks went
experts. They scrutinized this account
and that. They observed with alarm the
long list Of menacing obligations. gasped
with surprise when Informed Of the man.
ner I'm which the funds Of the bank-the
money Of the depositors-were being used
10 promote private enterprises. They
reckoned up the securities for liabilities
figured closely on the conversion posi-
bilities Of collateral at hand. They were
disposed TO be eminently fair, but when
they were through canvassing the situa-
tion it's general aspect was so forbidding
that closing the doors OF the institutions
was decided on.
How Panic was Averted.
That was the beginning OF the end. The
next morning, which was Monday. there
were notices on the Walsh banks which
told their tale briefly. The newspapers,
which had been purposely let into the
secret to help save Chicago from a panic
contained long stories Of the fall OF the
Walsh banks. Every story was quick 10
say that the associated banks had agreed
in conference TO guarantee the payment
OF all deposits, dollar for dollar All the
dCpositors had 70 do was to find out what
his balance was and write out a check
for the amount to another bank chosen
FOR the doing Of his future business He
would be given credit for tho amount
Those who preferred might take then
books to the failed banks after they re-
opened and get their money there.
In saving the depositors from losing 8
cent I'm the Walsh banks the institutions
coming 70 the rescue were saving them
selves the burden OF a scare" which
might have far-reaching consequence!
and precipitate other crashes.
on the 9th of October. 1909, nearly -four
years after that memorable Monday
morning the Circuit Court OF Appeal!
affirmed the sentence OF five years run
ming against Mr.. Walsh. who had beer
duly convicted in the lower Federal cour
for violating the banking laws.
owes Banks s7,OOO,OOO.
At the time the sentence was affirmed
as already stated. Mr. Walsh owed tn,
banks which stood between his institu
tons and a local financial panic ove
100000 secured by the stock and bono
issues Of certain corporations I'm which
Walsh was interested. The interest hav