Omaha daily bee., 1909-12-04
NO REHEARING FOR WALSH
Circuit Court of Appeals Denies New
Trial to Convicted Banker.
SUPREME COURT ONLY HOPE NOW
Defendant Is Placed in Custody of
United states Marshal Pending
Completion of Appeal to
Higher Body.

CHICAGO, Dec. 3.-Another avenue of
escape from serving the sentence of five
years Imprisonment in the Leavenworth
federal prison for misapplying the funds Of
the Chicago National bank was closed to
John r. Walsh here today by the ruling
of Judge Grosscup, Seaman and Baker in
the federal circuit court of appeals, deny
ing him a rehearing in that court and re-
fusing to continue the bail under which
he has been at liberty since the sentence
was pronounced.
After the sentence was read John r.
Walsh, once the head of three banks and
the owner of a number of railroads, and
a prominent financi factor in Chicago,
was taken into custody by Deputy United
States Marshal EDWARD Northrup.
The custody is special custody A dep
uty marshal will accompany Walsh wher-
ever he goes, but will not necessarily
place him behind barred doors for the
present. at least.
Arguments will be made next Tuesday
on a motion of Walsh's counsel to reopen
the case, to present further reasons why
the mandate should be stayed until appli-
cation can be made to the United States
supreme court for relief.
IA NAAAA - NAA1 ApNAp - - ANhNoA us
leaves Walsh without other recourse than
the supreme court of the United States to
stay the execution of the sentence com
hitting him to five years in the Leaven-
worth federal penitentiary. The court de-
clined to admit Walsh to bail, but per-
mitted him on his motion to defer the be-
ginning Of the sentence pending the APP
plication to the supreme court. meanwhile
49, ~ - 4Aa nVrgNalr 90 4h. TT,,sNaI
States marshal.
The action of the court was based on
the precedent created by the Morse case
when the New York financier was COM
mitted to the Tombs pending his appeal to
the supreme court instead of being sent to
the federal prison.
The John r. Walsh case, in which the
ruling of the court was announced today,
has been in different phases prominent be-
ore the public since the three Walsh
rsnks-the Chicago National bank. the
Home Savings bank and the Equitable
Trust c-ompany-wer closed December Is,
1905. An indictment containing 1872 counts
was voted against MT. Walsh January 8.
1907. a federal grand jury charging him
with ~misapplyingy funds Of the Chicago
National bank while he was its president.
III NoNNhAbNA VI ~ same year hlH AIldi
began before Judge A. b. Anderson in the
federal district court. January IS. 1905 a
verdict finding him guilty on fifty-four
counts Of the indictment was returned by
the jury.
Loans on Memorandum Notes.
In the trial repeated reference was made
to memorandum notes. for large
amounts, signed by minor employees OF
the bank and secured by bonds and other
collateral Of railroad companies con-
trOled by Mr.. Walsh. on which money
was advanced by the bank.
The question OF intent to defraud Figured
largely In the argument OF counsel and II
the instructions Of the court to the Jury
The judgment Of the lower court was ap
pealed from. but was sustained by Judge.
Grosscup, Baker and Humphreys OF tn.
United States circuit court OF appeals.
The government took the position tina
the verdict was IN effect a general verde
OF guilty and that the sentence OF ffv
years Imprisonment In the Fort Leaven
worth federal prison should stand.