The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1909-10-05
WALSH MUST
SERVE time

Continued from Page one.
prison at Fort Leayenwortn, Kas,
were early arrivals at the United
States circuit court OF appeals today
prepared TO hear the result OF the de-
PENDANTS appeal
The rise and fall of the fortunes OF
John r. Walsh, who is ~ years old.
forms an interesting chapter in the
history Of Americans who have risen
from obscurity to power
Owned 16 Concerns.
The three Walsh banks, the Chicago
National, the Equitable Trust Co. and
the Home Savings banks were closed
by the comptroller of currency, Dec.
Is, 1905, nearly five years ago. At that
time Walsh not only owned these in-
stitutions and The Chicago Chronicle,
but owned all or nearly all OF the six
teen other companies. including rail-
roads, quarries, coal, and storage
companies.
Real Frenzied Finance.
According to the brief Of the gov
eminent on the appeal, all OF these
verge OF IL, when secured by Walsh
for little or nothing. The securities
were unmarketable and practically
worthless. Then 1t is alleged; Walsh
formed the corporations TO buy these
companies for himself. taking in pay
ment stock Of the new corporations
and enough OF their bonds to repay
himself at their face value for sums
he actually paid for them. In this
way, according to the prosecution, he
secured for nothing stocks and bonds
to the face value OF $30,000,GO0.
Walsh declared the great dream OF
his life was a railway system to be
pieced together from his shattered.
purchases which would reach from the
Mississippi 10 Ohio through Illinois,
Indiana, Wisconsin and Michigan 20
Duluth and Superior, Wis. Quarries
and coal mines were to furnish much
Of the traffic.
Used Names of Clerks.
To secure funds Walsh had recourse
to the funds in his bank. In covering
up these loans II is alleged that, he
used memorandum notes signed with
the names of clerks who were not con-
suited In the matter. There was
nothing on the books to show that
Walsh had received the loans.
ignored Govt Demands.
For two years, it is charged, walsh
ignored the demands of the comptrol-
Ter Of the currency that he place his
bank upon a firm foundation and
when the crash came it was discover
ed that 66 per cent OF the securities
held were those of Walsh properties.
OF $25,0O0,00O deposits, 100000
were represented by the paper and Sc
curities Of the Walsh enterprises.
Walsh's appeal contended that the
trial court erred in it's rulings I'm re-
gard to the showing Of criminal in
tent, citing the case of the United
States VS.. Hubbard In the appellate
court.
In it's answer to the brief, the gov
eminent insisted that the cases were
in no wise alike and declared that the
instructions given by Judge Anderson
in the Walsh case were taken with
scarcely change of word from the
instruction approved by the United
States supreme court in the case OF
Agnew VS.. the United States.
Verdict Reached Freely.
In connection with the attack made
upon the verdict of jury because of
the attitude OF Juror Palmer, the
government brief showed that all Of
the jurors, except one who is In Flor
ida and Palmer, after the trial, signed
affidavits showing that Palmer reach
ed his verdict freely and without any
undue influence. The government fur
Their contended that Palmer acknowl-
edged that the verdict was his answer.
At that time there was no exception
taken by counsel Of Mr.. WALSH to the
verdict
1t was also pointed out that irnrned-
lately after the jury was discharged
that Palmer said to one Of the coun-
sci for the government:
II know Walsh is guilty bat ! hats
to send an old gray haired man to
the pen."