Norwich bulletin., 1911-05-25
President Taft Denies Applications of Two
 Bankers Now in Penitentiaries
ALL EXECUTIVE CLEMENCY DENIED
Laws Must be Upheld" Says the President When They Affect the Rich Man More Than When They Af- feet the Poor"-Failure Distinguish Between Leg- timate Business and Improper Gain.

action tonight was in accordance with the recommendations of Mir Wicker sham.
 Walsh Misappled Bank Funds.
 In denying Walsh-s application the president said in part:
 John R. Walsh was convicted of mi3application of the funds of the Chicago National bank while its presi- dent.
 s'.His pardon is asked: First. because -his violations of laws were technical and did not my olve moral turpitud6 and secured him no financial benefit; second, eczuse all the depositors of his banks were paid through the saeri- flee of his private fortune: third. be- cause he was, in doing what he did, attemp pting to upbuild industries of substantial benefit to the country; fourth. because he is an old man, in i'll health, not likely to live long. and one who has borne a good reputation and lived a life of simplicity and not of self indulgence
 Walsh Controlled Three Banks.
 The facts are that Walsh owned a large interest in tnree banks-the Chi cago National bank the Equita ble bank, the latter two Illinois state cor poratiors. He absolutely controlled them, although there was substantial minority interest in all of them held by others. He used them to furnish the money fer the development of ssv eral railroads limestone quarries, coal mines and other enterprises.
 Used Bank Funds to Finance Private
 Enterprises.
 , Using his control of these banks, he took their funds and invested them in enterprises of the character men toned, either by direct purchase of the bonds. which he caused to be issued or by lending from the funds of the three banks in the securities of these enterprises and because of these in vestments the banks failed. The allied a panic, took over the Walsh banks holdings and Waish's properties and paid the depositors in full, but in the liquidation the allied banks will suS- tain substantial loss
 Morse Made False Entries.
 In the Morse case MT Taft said in part:
 hisapplieation of the funds of the Ma tionaI Bank of America and of making false entries in the books of the banks and the reports to the comptroller of the currency On appeal to the circuit court of appeals his conviction on the false entry charge was affirmed He hal beer confined in the Tonnbs for ten months before he was taken to Atlanta
 Wrecked Bank. Although his conviction technically was on false entries, there is no doubt as 10 what the evidence showed gene-- ally, to wit: That Morse was engaged In large private transa ctions in which the maintenance Of the price of cer- l-tain stock in the market was of capi- tel importance to him. and he procured cortrol of this particular bank and other banks for the purpose of doing g the specific thing mentioned, which was essential to the success of his specu1ations. The result of his opera tions was severe losses to the bank, which forced it into liquidation.
 Losses Not All Made Good.
 One of the chief arguments made In Nrorse's behalf is that since the com mission of his offenses he had out of his own estate made good the losses inflicted upon the bank. In the first place. the evidence does not sustain the claim that ali the losses to the bank have bean made good by him, but even if his estate had met the obligations growing out Of his fraudulent transsc- tons 1t could not change the necessity for his lawful punishment for the l crime he committed