Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1911-05-25
TAFT REFUSES TO.
PARDON BANKERS
President Declines to Exercise
Any Executive Clemency for
Morse or Walsh.
RICH MEN MUST OBEY LAW
Distinction between Honest Busl-
ness and Dishonest Breaches
of Trusts Must Be EN-
phasized.
RICH MEN MUST OBEY LAW

Washington, May 2i.-Prosldent Taft
Tonight denied the applications for the
| pardon of Charles w Morse of New York
| and John Il. Walsh Of Chicago, the two
most prominent bankers ever sent to pris-
on under the national banking laws. Not
| only did he refuse to pardon either Morse
| or Walsh but he also declined to exercise
any other sort OF executive clemency in
these cases or to shorten the sentences
| imposed upon the two men. However he
| granted Morse leave to renew his petit
tion for pardon after January I, 1913.
In denying the pardons the President
declared that the national banking laws
or any other laws must be upheld when
they affect the rich man even moro than
VIXEN they affect the poor The record
in the Walsh case. the President said
in a long opinion, shows moral turpi-
tude Of that insdious ana 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 considera ton of
the facts in each case have no doubt
that Morse should have received a heavi-
er sentence than Walsh. Indeed the meth
more keenly than Walsh did he realize
the evil OF what he was doing
MAD RUSH FOR WEALTH.
In his opinion in the Walsh case the
| president protests against the failure
to discriminate between legitimate busi-
ness and improper gain. THE truth Is. y
he says. that in the mad rush for wealth
| In the last few decades tho lines between
| profit from legitimate business and i'm
| proper gain from undue use of trust con-
| troll over other neople's property and
money has sometimes been dimmed. and
the interest of society requires that when
ever opportunity offers. those charged
with the enforcement of the law should
emphasize the distinction between honest
business and dishonest breaches of trust
The Presidents denial of the pardon
applications of Morse and Walsh does not
mean that they must stay in prison unit
the end Of their terms Walsh began 6
sentence Of five years in the Leavenwortl
pententiary in January, 1910 and under
the federal parole law is eligible 70,
parole next September. Morse began hi,
l5-year-term at Atlanta In January, 1910
also He is eligible for parole in 1915.
Both Morse and Walsh made stront
| eIOrtS 10 nave inc PRESIDENT exc us,
clemency. Mrs Morse got up a monste,
petition which was signed by scores o
members Of Congress and other prominen
persons and former Senator Hale o
Maine did much in her behalf The plea!
of i'll health and reimbursement of al
depositors In the Morse ana Walsh hank
were made in both cases.
PAPERS READ WITH CARE.
l Both applications We're scanned a
the department Of justice by Attorney
= General Wickersham and lis assistant.
e and both We're read with care by tn
= President himself His action to-nigh
1 was In accord with the recommendation
= Of Mr.. Wickersham.
c In denying the Walsh application, tn
President said in part:
John r. Walsh was convicted of mis-
g application of the funds of the Chicag
National bank while its president
e Ills pardon Is asked: First becaus
s his violations of laws were technical an
d did not involve moral turpitude and 90
d cured him no financial benefit. secon(
because all the depositors of his bank
= were paid through the fact of his prvat
$ fortune; third, because he was. In dom
= what he did, attempting to upbuid il
il dustries of substantial benefit to IL
r country; fourth, because he is an old MAJ
y in Ill health, not likely to live long, an
one who has borne a good reputation an
: lived life OF simplicity and not of self
n Indulgence.
"The facts are that Walsh owned
\ large interest in three banks. He ah
solutely controlled them. He used thel
to furnish the money for the dovelur
ment Of several railroads, limeston
n quarries, coal mines and other enter
prises. Using his control of thos
, banks, he took their funds and invest
= cd them in enterprises OF the charac
a ter mentioned, either by direct pur
: chase of the bonds, which he had caus
. ed to be issued, or by lending from IN
funds of the bank money on DUNN
notes, secured by such bonds as col
lateral.
:, "IIe rlSked nearly the whole funds of III
:, three banks In these enterprises and b,
:, cause of these investments. the bank
- failed, The allied banks of Chicago in o,
~ der to prevent a panic took over III
" Walsh bank holdings and Walsh's pror
>, critics and paid the drpostors in fun b,
- in the liquidation the allied banks wi
sustain substantial loss.
! "The application for pardon must h
y denied In the first place. the recor
shows moral turptudc of that insidiou
y, ana dangerous kind, to punish when IN
national banking laws were especiall
'. enacted. bank officer who uses sue
~ funds to promote enterprises In which u
has private interest, and witho", ~
knowledge and consent of the sha'e"oi'
ers for whom he is a trustee, Involves III
n, whole capital of the bank In una
r speculation, from which he is 10 o'' "
o. croft If successful, Is guilty or lrauu'
I'd lent breach of trust, Is guilty OF nhor'
y 'urpitude, and must be punishou 4No .o'
u, orence to usual business methooS' no SUP
10 pestion Of great business enterprises n
N excuse Of building up useful indus'r'
A. and o no 81 subsequent attempt to make goo
IS the losses which his acts have bronsl ,ls''
a vpon innocent persons who trusted hin
oanaxloss over the~fact that such ma