Evening star., 1911-05-25

After weeks Of personal study Of the
cases President Taft last night denied
| the applications for pardon of Charles W.
| Morse of New York and John r. Walsh
| of Chicago, convicted under the national
| banking laws and now serving terms In
prison.
| The President not only refused to par
don the former bankers. but declined to
exercise any sort OF executive clemency
at this time.
| Mr.. Taft's denial of the pardon applica-
tons of Walsh and Morse does not mean
| that they must stay in prison to the end
Of their terms. Walsh began a sentence
of five years in January, 1910, in the
Leavenworth penitentiary. and, under the
| federal parole law, is eligible for parole
next September.
Morse began his fifteen-year term in the
! Atlanta penitentiary in January, 1910
also. In denying his application the Pres
ident granted leave to renew II after Sep
| tember /, 1913. Under the parole law
| Morse would be eligible for release in
| 1915
No Favors for Rich.
| In denying the pardons the President
took firm stand that the national bank
| ing laws or any other laws must be up
| more than when they affect the poor.
| The record in the Walsh case the Presi-
dent said in a long opinion, shows moral
| turpitude of that insidiouS and dangerous
kind to punish which the national bank
ing laws were especially enacted. In
considering the case of Morse the Presi-
| dent said that from a consideration of
| the facts in each case, l have no doubt
that Morse should have received a heavier
sentence than Walsh. Indeed, the meth
DDS taken by Morse tend to show that
| more keenly than Walsh did he realize
the evil of what he was doing.
| In his opinion in the Walsh case the
| President protested against the failure to
| discriminate between legitimate business
| and improper gain.
THE truth is.' he said, that in the mad
rush for wealth In the last few decades
| the lines between profit from legitimate
| business and improper gain from undue
use of trust control over other peoples
property and money has sometimes been
dimmed, and the interest of society re-
quires that whenever opportunity offers
| those charged with the enforcement of
the law should emphasize the distinctinon
| between honest business and dishonest
| breaches of trust
Besiegede by Friends of Both.
| Both Morse and Walsh made strong
efforts to have the President exercise
clemency. He was besieged by friends
and attorneys Of both men. Mrs. Morse
got up a monster petition. which was
signed by scores of members Of Congress
and other prominent persons and former
Senator Hale of Maine did much in her
| behalf. The pleas of i'll health and reim-
bursement of all depositors In the Morse
and Walsh banks were made in both
cases.
| Both applications were scanned close
ly at the Department of Justice by At
torney General Wickersham and his as
sistants. and both were read with care
by the President himself. His action last
night was in accord with the recon-
mendations of Mr.. Wickersham.
In denying the Walsh application the
President said in part:
| John r. Walsh was convicted of mis-
application of the funds of the Chicago
National Bank while its president.
| His pardon is asked First, because
his violations of laws were technical and
did not involve moral turpitude and Sc
cured him no financial benefit: second.
| because all the depositors of his banks
were paid through the sacrifice of his
private fortune: thirdt because he was,
in doing what he did, attempting to up
build industries of substantial benefit to
the col>ltry; fourth, because he is an old
man, in i'll health. not likely to live long,
and one who has borne good reputation
and lived life of simplicity and not OF
indulgence.
Loaned Money on Dummy Notes.
1.-The facts are that Walsh owned q
large interest in three banks-the Chicago
National Bank. the Equitable Trust Com
pany and the Home Savings Bank, the
latter two Illinois state corporations. He
| absolutely controlled them. although there
was a substantial minority interest in
| all of them held by others. He used
them to furish the money for the devel
opment of several railroads, limestone
| uuarries. coal mines and other enter
prises. Using his control OF those banks,
| he took their funds and invested them in
| enterprises OF the character mentioned,
either by direct purchase of the bonds.
which he had caused to be issued, or by
lending from the funds of the bank
money on dummy notes secured by such
bonds as collateral
He risked nearly the whole funds of
the three banks In the security of these
enterprises, and. because Of these invest
ments. the banks failed. The allied banks
Of Chicago. in order to prevent a panic,
took over the Walsh banks holdings and