Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1909-12-03
Supreme Court of U. S.
Only Hope of Chicago
Financier.
GETS TIME TO APPEAL
Liberty Will Be Restricted in
Meantime - Morse Case
Taken as Precedent.

Chicago, Dec. 3.-John r. Walsh,
convicted Of misapplying the funds Of
the Chicago National bank, of which
he was president, was denied a re-
hearing of his appeal to the federal
court of appeals here today.
Left Only Supreme Court.
The denial of the motion leaves
Walsh without other recourse than
the supreme court of the United States
to sty the execution of the sentence
committing him to five years in the
penitentiary. The court declined to
admit Walsh to bail, but permitted
him on his motion to defer the be-
ginning of sentence pending an appli-
cation TO the supreme court. mean
while placing him in custody of a
United States marshal.
Morse Case as Precedent
The action Of the court was based
on the precedent created by the Morse
case, when the New York financiar
was committed to the Tombs pending
his appeal to the supreme court, in
stead of being sent TO prison.
Deputy stays with Him.
Arguments will be made next Tues
day in Walsh's counsel's efforts to re-
open the case and present further rea-
sons why the mandate should beostay-
ed until an application can be made 70
the supreme court for relief. Mean
time Walsh is in custody of a United
States marshal whose deputy will ac-
company him wherever he goes.
Before Public Four Years.
The Walsh case, in which the ruling
Of the court was announced today, has
been, in different phases, prominently
before the public since the three
Walsh banks, the Chicago National.
Home Savings and Equitable Trust
company. were closed Dec. IS, 1905.
An indictment containing lS2 counts
was voted against Walsh Jan 9, 1907,
by the federal grand Jury, charging
him with misapplying the funds of the
Chicago National while he was presi-
dent
Trial started Same Year.
Nov. u of the same year the trial
of charges against him was begun be-
district court, and July IS, 1908, he
was convicted on 81 counts of the in
dictment. In the trial repeated refer
ence was made to memorandum
notes" for large amounts signed by
minor employees of the bank and Sc
cured by bonds and other collateral 0f
railroad companies controlled by
Walsh on which money was advanced
by the bank.
Intent Figured Largely.
The question of intent to defraud
figured largely in the argument of the
and in the instructions OF the
court TO the jury. The judgment Of
the lower court was appealed 10 the
United States circuit court Of appeals
and was sustained
The petition for a rehearing Of the
appeal, which was decided today. was
then presented by counsel for Walsh,
and was principally based on the con-
tention that the verdict OF the jury
finding the former banker guilty on
the different counts was inconsistent
and repugnant. in that If he we're
guilty as described in one of the
counts of violating the law in a par
ticular manner he could not possibly
be guilty of the same violation in
different manner as %narged in an
other count
Held General in Application.
The government took the position
The verdict was, in effect. a general
verdict of guilty and sentence of five
years Imprisonment should stand.