The Birmingham age-herald., 1911-05-25
WALSH AND MORSE PARDONS
 DENIED BY THE PRESIDENT
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 terprises 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 investments the banks failed. The allied banks of Chicago. in order to prevent a panic. took over the Walsh banks hold ings and Walsh's properties and paid the depositors in full, but in the liquida- ton the allied banks will sustain sub stantial loss.
 '.The application for pardon must be denied. In the first place, the record shows moral turpitude of that insidious and dangerous kind, to punish which the national banking laws were especially en- acted. bank officer who uses such funds to promote enterprises in which he has a private interest and without the consent and knowledge of share holders for whom he is a trustee, involves the whole capital of the bank in unau- thorzed speculation from which he Is to derive profit if successful, is guilty of a fraudulent breach of trust; Is guilty of moral turpitude and must be punished No reference to usual business methods,
 
 prises, no excuse of building useful in- dustries, and no subsequent attempt to make good the losses which his acts have brought upon innocent persons who trust | ed him can gloss over the fact that such man is taking other peoples money for his own use.
 Walsh Is Guilty
 | walsh had acquired great power in the control of three large banks. Ills re- responsibilities were commensurate. His guilt is in proportion to the trust and con fdence extended to him. Of course he did not intend to steal the money of his de- positors or stockholders, but he is not less guilty on this account He abused their trust and confidence and imperiled the money of those who trusted him. in en- terprises of most speculative character and he thus lost their money. If the speculation had been successful as he hoped, they would have not lost, it may be, and he would have allowed them the usual interest or dividend The real and great profit would have been his. | Many influential and prominent per sons have petitioned for his pardon. They do not fully appreciate, 1t seems to me, the high importance to society | that such criminal breaches of trust as this be severely punished Such
 
 ment because the misuse of funds re- suits In a profit. rn sucn cases the dishonest or reckless bank officer takes the profit and the bank IS made whole and no one Is the wiser. Then the of ficer comes to regard himself as a shrewd manipulator within legitimate business lines. The truth IS, 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 money and property has some times been dimmed, and the interest of society requires that when ever opportunity offers, those charged with the enforcement of the laws should emphasize the distinction between hon. est business and dishonest breaches of trust.
 Walsh Is 73 years old. His health Is not good but I do not think from the evidence that his condition is alarming or requires his release be- fore the time when his case may be brought before the parole authorities" The Morse Case
 In the Morse case MT. Taft said in part:
 'Charles w. Morse was convicted of misa application of funds of the National Bank of North America, and of making false entries in the books of the bank and fin it's report to the comptroller of the currency. On the appeal to the circuit court of appeals his conviction on the