Las Vegas optic. (East Las Vegas, N.M.) 1908-1921, 1909-10-05
ONCE MuLTi-MlLLloNAiRE BAN
KER OF CHICAGO MUST
PAY PENALTY
sAPPROPRIAIED FUNDS
OUT ON FIFTY THOUSAND DOL
LARS BAIL PENDING A
FINAL APPEAL

Chicago, oct. 5.-lne VefolcL OF Ihe
trial court, which found John R
Walsh, the former multi-millionaire
: banker, guilty Of misapplication of the
funds of the Chicago National bank
and sentenced him to serve five years
in the federal prison at Leavenworth,
Kans., today was affirmed by the U. s.
circuit court of appeals. s
The rise and fall OF Walsh, who is
now seventy-two years old, is an In
teresting chapter in American finance.
Three years ago Walsh owned three
banks, the Chicago National, Equitable
Trust and Home Savings, all of which
were closed by the comptroller of cur
rency in 1905. He also owned nearly
all the stock OF seven railroads, three
coal companies three stone Quarries
and other companies 1T is said that
all these were bankrupt when he
bought control of them for a song. He
then organized q holaine. ssfSIl lany to
buy these securities for himself, TAX
ing stocks and bonds as payment,
IUuS lOl AOtllA6 Jill W LII
lions of dollars in stocks and bonds.
Then, carried away by the dream of
a great railway system which should
include all these holdings, Walsh bor-
rowed immense sums from his banks
to finance these companies, using mem
orandum notes signed by clerks, who
were not notified, and depositing as
collateral the stock of his companies.
When his banks were closed sixteen
millions of their deposits were rep
resented by securities Of the Walsh en-
terprises. His counsel have thirty
days to file an application for a new
hearing before the U. S. court of ap-
peals, the court of last resort, until
which time he is out on fifty thousand
dollar bail.
Walsh story Reads Like Fiction
The story of John R. Walsh and the
operations which brought him from
the position of humble newsboy to
that of bank and railroad president
rated at many millions, and finally re-
suited in his fall, reads like that of
fiction. 1t is the story OF battles, OF
struggles and gigantic conflicts. of
great victories and tragic defeat.
AS a newsboy he started in to con-
quer the world to become ruler in
politics, a despot of finance. He made
his influence felt throughout the city
and the state and his movements even
had an effect on national politics. But
he made enemies and added to their
ranks until they were too powerful for
him. Then they joined forces and
jvanquished him.
He began as newsboy selling Chi
cago papers. At first he had a little
stand with board upon it and two
bricks to hold down the papers. From
this small start the boy began to climb
and kept on climbing day by day un-
til his interests we're gigantic.
Came to America When Boy
Born in ireland, in Leinster county,
the boy had little if any chance to
obtain an education. His parents were
poor. Finally the burdens became too
irksome In the country Of the ''ould
sod" and the family came to the
United States. That was in 1S49
when the gold fields of California call
ed many. The elder Walsh intended
to seek his fortunes in the far west,
but the family stopped in Chicago and
remained. 4
Young Walsh was twelve years old
at that time. He was snub nosed,
freckled faced, and barefooted most
OF the time. AS newsboy he enter
ed into the spirit Of the game and Of
fered battle to all comers. But it was
one peculiar phase of his life that
those who were his rivals as boys
afterward became his closest friends.
The first real business venture Of
young Walsh came when he entered
into partnership with John McNally
and started little news stand. Me-