The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-10-23
FAMOUS BANKER AND
RAILROAD BUILDER
DIED EARLY MONDAY
Elk Convict Succumbed From
Heart Trouble Early at
Home in Chicago-Family
All at Bedside.
Continued from Page One.)


1t grew rapidly. 1t ootain de-
poyits of the funds of the Yves, park,
Lincoln park, the city, Cook county,
the Drainage canal board and the
state. To accomplish this Walsh
played solidly with both parties. John
H. Smith, later millionaire and once
q newsboy competitor OF Walsh be-
came his chief Republican ally. in
the capacity Of director in the bank,
and William Lorimer the senator be-
came another of his Republican con-
almost as prominent.
Before Walsh plunged into the ar
ena Of speculation, his bank took over
the Home Savings bank with hun
dreds of small depositors. Now with
two sources OF money at his COM
mand. he began his more precarious
undertakings, organizing the Equita-
BILE Trust company to be the instru-
ment for his deals.
Through a venture in Ogden Gas
he was interested in the consolida-
ton Of the various gas companies in
the city. He operated in the Illinois
tunnel project and was concerned in
the gas enterprises at Peoria and Ak
ron. as well as several electric sys-
TENS. other banks. mine. quarries and
q publishing enterprise.
His forethought brought him safe
ly through the panic of 1895. His
banks were filled with gold during
these free silver" times and were
sounds while others went to pieces.
Turn Of thetTide.
Walsf,'s losing fightsbegan when he
secured control of the quarries of the
town Of Bedford where he built
bank and acquired ownership Of the
little railroad. Hissinfluence in Wash
ington resulted in i. Bedford sstone be-
ing used in many Federal buildings.
But the railroads charged too much to
carry the stone, he thought, and the
battle began. He took hold of the
tended 1t 50 asa to reach. his quarries
and coal fieldss in Indiana. The "im-
pudence" Of this move made the great
trunk lines his foe. They refused to
give hi moutlets\ for his Indiana traf-
fic. As q last resource he tried to
build the road into Chicago. The
task was too great, for his means.
M'sappsIedt $4,000, 900.
Political alliances broke. When
Deneen became governor of Illinois.
Walsh's bank lost custody of the state
funds upon which 1t had almost de-
pended for many years. A new CO.
terie of Republicans also caused the
Chicago city funds to be withdrawn.
A few months later ON December 10,
1905. Walsh's, Chicago National bank
suspended payment. Other Walsh en-
terprises were smashed by the failure.
Examination of the books showed that
Walsh had made,a false report to the
Comptroller and that, he had misap-
piled about $3.O0O.O0O of the banks
funds to stave off collapse of his tot
tering enterprises. This amount had
gone to Walsh's railroads, it was con.
tended through his personal account.
Much Of 1t was raised through prom
issory notes signed by dummies and
really paid to himself.
Walsh was placed on trial in No
vember 1907 on indictments with 1872
counts, involving a maximum penal
ty Of 1920 years in prison. On jan
uary 19.190S he was found guilty Of
fifty counts. His appeal consumed
nearly two years. During this time
he was out on bail. Finally the Unit
ed States supreme court confirmed
his conviction on January MI. 1910,
and he entered the Federal peniten-
tiary, at Leavenworth, Kansas, SEN
fenced to five years Imprisonment.
Ever since then his friends have
fought for his pardon. Before Walsh
entered prison he signed over about
$4,000. 900 worth Of property to pay
his banks creditors, but he was sup
posed to have retained some Of his
property.
The campaign for Walsh's pardon
was spectacular. Many times it was
reported that he would soon leave the
prison. 1t was urged that his health
was badly broken from imprisonment.