New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-25
MORSE AND WALSH STAY
Continued from first page.

January 1, 1918
In reaching these conclusions I follow
I the recommendation OF the Attorney ue"
| eraL
In denying the Walsh application the
President said, IN part:
John r. Walsh was convicted of misap-
| plication OF the funds of the Chicago ~"
| tional Bank while its president hts
HIS pardon Is asked. first. becausSs AID
violations of laws were technical ana d,,G usd
not involve moral turpitude and secureo
| him no financial benefit; second. pecauSSSS
all the depositors OF his banks were pau
through the sacrifice of his private 10,
he did, attempting to upbuild industries
| CT substantial benefit To the count II,
| fourth. because he is an old man, III ~,
health. not likely to live long and one tye T'a a
life of simplicity and not OF sef-indulsen rS
The facts are that Walsh owned iaIse
interest in three banks-the Chicago ma no
tional Bank the Equitable Trust company any
and the Home Savings Bank-the iatte'
| two Illinois state corporations: lie aDso-
lutely controlled them. although there Wa ~
substantial minority interest III an % %
| them held by others He used them 10
| furnish the money for the development OF
several railroads. limestone quarlles, coai
mines and other enterprises; Islng ms
control OF these banks he took their luhus
and invested them lib enterprises OF tne
| character mentioned, either by direct pur,
chase of the bonds. which he had caused
| to be issued or by lending from the lu1 JUS
cured by such bonds as collateral. ne
risked Nearly the whole funds Of the three
| banks In the security OF these enterprises,
and because of these investments the BANKS rs
failed. The allied banks of Chicago IN
order TO prevent a panic. TOOK over tIe
Walsh banks holdings and Walsh.s prop,
critics and paid the .depostors IN full Dui
| In the liquidation the allied banks VIII
| a hetanfial lOSe
The application for pardon must be DO
MED. In the first place, the record SHOWS
moral turpitude OF that insidious ana dail,
/ gerous kind to punish which me nata,ohdI
banking laws were especially enacted a
bank officer who uses such funds to pro-
mote ENTERPRISES IN which he has private
interest. and without the knowied 5to, ai he
! is a trustes involves the whole capital OF
the bank in unauthorized speculation, ron ,,ii
which he is TO derive pront II suCCesstu',
| is guilty of a fraudulent breach OF trust u
guilty of moral turpitude ana must o we
ptrished No Difference To usual DusihesS
methods, 10 suggestion OF great pu s,l'S,,,
enterprises, no excuse or pulldihs up - 49,
| industries and no subsequent atteihpt ~
| make good the losses which his acts ma :
brought upon innocent persons VINO tI uSteu
| him can gloss over the fact tnat sucii
man is taking other peoples money ioi i''
Wash had acquired great power in the
! control of three large banks. Ills IeSpwuiit
! sibiities we're commensurate. sdance
is in proportion 10 the trust and coiIIl9e,c o,
! extended 10 him. OF course, ne an ~.
intend 10 steal the money Of his deposltfG,,;s :,
or stockholders, but he is not less gun
this account lie a6Hsed the sh money Of
those 'tr who trusted him in enterprises .' oi
| most speculative character, ana ne ia ia
lost their money. II the specua,ion ,.d nTidd
teen successful. as he hoped they Woui,dd
not have lost. Il may be, and he woula
! have allowed them the usual interest "a
| dividend. The real and great profit "ouio
have been his. ..,.,, oorso,s
have netitioned for his pardon They 30
not fully appreciate. IL seems 70 me, III
high impo, lance to society i.iat 49, Ieyerelv
,I,nisbed Such breaches sometimes es-
| zane punishment because the misuse OF me
funds results in prSfb; hank N o fpSn takes
the profit and the bank Is made WnoIe
md no one is the wiser. Then the officer
comes 10 regard himself as a snfeWd
| toanirulator within legitimate business
! lives The truth Is that in the mad rush
| for wealth i'm the last few decades the
| lines between profit from legitimate Dust
| ness and improper gam from unuue uoo
| Of trust control over other people prop
| ertv and money have sometimes heeh
| dimmed. and the interest Of society re-
ouires that whenever opportunity oHers
! hose charged with the enforcement OF the
| law should emph isize the distinction be.
tween honest business and dishonest
| breaches of trust. ,,
| Ealsh is seventy-three years OF age. His
| bealth is not good. hut I DO not think from
| Tho evidence that his condition Is alarming
| or requires his release before the 'the
| when his case may DC DroushI belole ti'
| narole authorities.
! There are circumstances which have been
emphasized by those who have represented
| Walsh in the application for pardon that
appeal TO ones sympathy. II t Nee case pI !,
! il must be Judged with reference 10 the
right of society to have the law vindicated
and crime punished. no matter now lnflu-
entail the convicted person or how many
| friends his present pitiable condition may
| lead to speak in his behalf
The opportunity TO commit such crimes
is only afforded 10 men who have enjoyed
high position in society and have secured
tho trust and friendship Of many. Every
case Of this kind. therefore, must present
some such considerations al those referred
to and if the executive on appeal for
clenencv should yield to them, 1t would
defeat the object Of the law, and present a
demoralizing dffepnce between the pun
whose circumstances have naturally led
him into crime. and one whose position in
society should have made for him the
strongest restraint against violation OF the
law.
The Presidents denial of the pardon
applications Of Morse and Walsh does
not mean that they must stay in prison
until the end of their terms. Walsh be-
gan a sentence Of five years in the
Leavenworth penitentiary in January.
1910. and under the federal parole law
is eligible for parole next September, the
Presidents action tonight having no
bearing whatever on a future application
for parole. Morse began his fifteen year
| term in the Atlanta penitentiary in jan
uarv. 1910, also. Under the parole law
Morse would be eligible for release in
1915.
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 ex-
Senator Hale, of Maine. did much in her
behalf. The pleas of i'll health and re-
endorsement of all depositors in the
Morse and Walsh banks were made in
| both cases
Both applications were scanned closely
at the Department of Justice by At
torney General Wickersham and lis as
sistants and both were read with care
by the President himself.