Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-10-05

continued from First Page)
| higher tribunal finds no error. AS to the
lack of criminal intent the opinion reads:
I Under section 800 there could be mis-
| application Of bank funds by officer
which would be innocent and not criml-
nal and there could be nisappllcat:on
which under the statutes would be crlmi-
nal. What would show the difference be-
/ tween misapplications which We're crlm'-
nal and those which were not! Nhat
would show Innocence or guilt:
! Good faith or bad faith? The court
sought by instruction carefully to define.
and, think, did fairly define
| Counsel for Walsh have thirty days IN
which to file application for rehearlng
| by the court of appeals. Meanwhile ne
will be at liberty under his present bonds
of $4,000.
Big Crowd in Court.
! The crowd in the courtroom overlooked
into the corridor during the proceedings
| in coutt The eleventh-hour attempt of
the defense to file additional citations
designed to show the lack of criminal in
tent came to naught. The matter was
taken under consideration by those con-
cerned before court opened and decision
was reached that the new arguments
would in no wise alter the opinion as al
ready written.
| + TlenuS Oh walsh were carry lNdio dt
| the court today.
! Rise and Fall of Walsh.
! The rise and fall of the fortunes of
John r. Walsh, who is now seventytwo
years old. forms an interesting chapter in
the history of Americans who have risen
from obscurity to power.
! The three Walsh banks-the Chicago
National. the Equitable Trust Company
! a nd ha Gl,-i IA
ny the controller of the currency Decem-
Der Is. 1893. nearly five years ago. At
that time Walsh not only owned these in
situations and the Chicago Chronicle, but
owned all or nearly all of the stock OF
the following companies: The Acme Gas
Company, the Bedford Belt Railway Com
pany. the Bedford Quarfies Company, the
/ Chicago Southern Railway Company, the
| Chicago Wharting and Storage Company,
the Indiana Southern Coal Company. the IL
| linoiS Southern Railroad, the Lake
Michigan Car Ferry Transportation Com
| pany, the Mount Olive and Stanton Coal
Company, the Ohio Quarries Company OF
| Ohio, the Ohio Quarries Company of Hi
nois, the Southern Indiana Coal Com
pany. the Southern Indiana Railway Com
| pany. the Southern Missouri Railway
Company and the Wisconsin and Michi-
gan Railway Company.
Paid Little for Them.
According to the brief of the govern
ment on the appeal. all of these COM
panies were bankrupt. or on the cerge of
it, when secured by Walsh for little or
| nothing. Their securities were unmarked
able and practically worthless. Then,
it is alleged. Walsh formed corporations
to buy these companies from himself.
taking in payment stock of the new cor
pOrationS and enough of their bonds to
repay himself at their face value for
the 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 $4,000, 600.
Walsh dreamed of great railway sys
TEN, to be peced together from his scat
tered purchases, which would reach from
the Mississippi to the Ohio, through Ili-
nois Indiana. Wisconsin and Michigan
to Duluth, Mimi, and Superior, Wis. The
quarries and coal mines were to furnish
| much of the traffic.
Dipped in the Till.
To secure funds Walsh had recourse to
| the funds In his banks. In covering up
| these loans, 1t is alleged he used memo
| randum notes signed with the names of
| clerks who We're rot consulted in the
| matter There was nothing on the books
| to show that Walsh had received the
| loans. Even Fred Blount, the vice presi-
| dent, is said to have been ignorant on the
! subject. For collateral Walsh deposited
| the securities of his various enterprises.
! For four years 1t is charged that Walsh
| ignored the demands of the controller Of
| the currency that he place his banks upon
! a firm founda tion, and when the crash
| came 1t was discovered that 66 per cent
| of the securities held were those of Walsh
properties. OF the S2J,OiU6D demos is
$16OOO.OOO were represented by the paper
and securities of the Wash enter .,es.
co. dad .t,J
court erred in its rulings in regard to the
showing of criminal intent. citing the ca sc
of the United States act Hubbard in the
Appellate Court. In its answering brief
the government insisted that the cases
were in noWise alike. and declared that
the instructions given by Judge Ander-
| son in the Walsh case were taken with
scarcely the change of a word from an
| instruction approved by the United States
Supreme Court in the case OF AgneW- agt.
the United States.
Juror Palmer Incident.
| In connection with the attack made upon
the verdict of the jury because Of the at
titude of Juror Palmer the government
brief showed that all of the. jurors, ex-
cept one who is in Florida, and Mr.. Pal
| mer, after the trial signed affidavits show
ing that Mr.. Palmer reached his verdict
freely and without any undue influence
The government further contended that
whec the jury was polled Palmer acknowl-
edged that the verdict was his, and at
that time there was no exception taken
by counsel of Mr. Walsh to the verdict
and no request was made that the jury
be sent out for further elaboration. 1t
also pointed out that Immediately
after the jury was discharged Mr.
Palmer said to one of the counsel for the
government, Il know Mr.. Walsh is guilty
but | hate to send an old gray haired man
to the penitentiary."