Show I I I COURT SAYS W WALSH ALSO MUST CO TO PRISON Higher Court Affirms Verdict Ver dict of Guilty Against Chicago Banker METEORIC CAREER ENDS IN DISASTER Once Figured His Wealth at Over Thirty Million Mil Mil- lion Dollars l I CHICAGO Oct 6 The 5 Tho verdi verdict t of the trial court which found John R. R Walsh guilty of misapplication of or the the the- funds of the Chicago National bank was affirmed by the United States circuit circuit cir cm- court of appeals here today Mr Ir Walsh must servo enc the of five years ears imprisonment imposed upon him hint by the tho trial trini jury save in inthe inthe inthe the event that the supreme court upsets upsets upsets up up- sets the tho affirmation of the verdict of guilty guilt handed down Counsel for Mr r. r in in their appeal laid stress on what they alleged was a lack of criminal criminal crimi crimi- nal mini intent t on oil the part of the defend defend- ant In the theer verj tery er lengthy brief which bieh the they filed much law Jaw was was wis quoted to show that the convicted hanker banker used tho tio funds of the bank in what lint he considered considered con con- a legitimate to manner The Time opinion o of the court of appeals written by Judge Humphrey arid and handed down lown by Judge Grosscup is brief bruit and confined almost wholly to the question of criminal intent The allegation that Juror Palmer was unduly un 1111 duly influenced is iF dismissed ed with a a word and antI but hut little more is wasted in iu eliminating the allegation of inconsistency enc ency in tho verdict Verdict Will Will Stand As to the substance of the time matter charged in lathe the various counts says ears the opinion the tho 4 tho verdict will not bo be dis dis- If the amen gravamen i of ot the time charge in iii each count on which there them has been n a verdict of guilty is the sumac same there is is a consistency i iii in the Ver Vel diet In IlL the instructions instruction given gien tho the jury jun by Judge Anderson in th the trial court the hi hOt finds no DO error k As Asto to o the lack Jack of criminal intent the opinion opinion ion Jon ion reads t- t f Und Under Unde r section t here re could coul b be of bank funds bj b- ban byan an officer c- c eer which would bo be and amid t d ilot not criminal arid there c could Trl rb C i wll which w-Imich ch under antler the statutes would be iC criminal What would show the tho difference between misapplications that wrO criminal and those that were not what lint would show sho innocence or guilt good faith or bad faith the tho court sought by br in instruction carefully to define and we think d did a fairly define denne Counsel for foe Mr Ir Walsh have hac thirty days davs in which to file application for a rehearing b by the court of appeals p 31 Meanwhile he lie will be at liberty Ubert w under his present bonds of Walsh's Rise and Pall Pail Tho ri rise e and fall of the time fortunes of John 11 U. Walsh who is now 72 years ears of n age form an interesting chapter in the history of Americans who have risen from front to power The three Walsh banks the banks the Chi Chicago 3 o National the Equitable Trust company and the Home Savings bank were closed h by the comptroller of the time currency gun cur ur rency reney on December IS 1005 1905 nearly nearh four years ears a ago o At that time Walsh nb 1 not only owned the these e institutions and th the Chicago Chronicle but owned alt all or nearly all nB of the stock tock of the following companies fl 0 His Extensive Holdings The Acme Gas company the Bedford BeMont Bolt Railway company compan the Bt Bedford Quarries company compan the tho tho Chicago S Southern South mth ern era na Railway company compau the Chicago Wharfing and Stora Storage o company compan the Indiana In In- Indiana Coal Coni the Illi Illinois diana Southern com company pan nois minis S Southern Railway company the time Lake Lale Michigan Iichi nn Car Ferry Fern Transportation tion company the Mount nt Olive and Stanton Coal company the Ohio Qu Quarries r- r ries ties company campan of Ohio Ohio Ohio- tho the Ohio Quarries company compan o of ol Illinois tho time Southern Indiana Indiana In Iii diana Coal company the Southern Indiana Indiana In In- diana Railway Rail company tho time Southern Missouri Railway company and the Wisconsin Wis- Wis co 8 Michigan Railway company According to tho the brief of the government govern govern- ment mont on the appeal all aJ of the tho were bankrupt or on tho the vergo of it when bou bought ht by b- Walsh 1 for little or nothing Their Thir securities were unmarketable and practically worthless Then it is alleged Walsh formed corporations to buy these companies ts t's from n himself taking in In payment stock of oC the new corporations corporatIon and enough h oi of their bonds to repa repay himself at their face value alue for the tho sums Bums he actually paid for them In this way according to the prose cution cation ho obtained for for- nothing stocks stock and ancl bonds to the face value of Dreams of Industrial Empire Walsh dreamed ln amed a great dream of a a. railway system ov to bo be pieced d together from Crom hi his w scattered purchases which would ouM reach ch from froni tho the Mississippi lippi to the tho Ohio through Illinois Indiana Wisconsin Wis Vi and Michigan tichigan lichi an to Minn and amid Superior Wis Vis The rho quarries nu and much ot of the coal mines mins were to furnish traffic To Tn obtain funds Walsh had hael recourse to the funds in his banks In covering up these lo loans nl it is iR alleged d pc he used memorandum l notes signed with the tho names of clerks who were not consulted in tho the matter There Thero was nothing on oct the books book to show that Walsh had re- re Fred Blount the tho loans Joans Even Eon the tho i is said to o havo been i on the tho For collateral deposited the tho securities of hi his various enterprises For Fo two years eus it was chU charged ed that Walsh i ignored the time deman demands s of the tho comptroller compo comp of the currency that ho place his hus banks janks on n ii firm foundation and aud when the he crash came camo it was wa discovered disco that I 1 66 50 per cent of the tho securities held were those hose of Walsh's ft properties Of tho limo deposits represented by tho the paper and securities of the h W Walsh tL TV fl II |