Show t BANI BANK DIRECTORS VERY They Admit Leaving Affairs o oThree of Three Institutions to Walsh JOHN R. R DID DIRECTING P Prepared Statement Which i ey Sign ed With ou t Knowing Contents Chicago Deco 14 John John 1 John n. n Walsh W was as the Chicago lc lo National bank Walsh was absolute ruler of the tho millions de deposited de- de p po posited In In that bank the thin lome Home Sa Say Sav tc- tc i ings bank hanle anti and ant tIme the Equitable Trust company at as well wel tL an as cZ czar r of or tho the Southern Indiana railroad of 01 tho lilt 1111 11 note lols Southern railroad of the Bedford Quarries company of or the tw Michigan and Wisconsin railroad anti and of the countess countless other companies to Lo promote which ich tho the government now is 18 trying him ilm fur for using the tIme money of or the tho Chicago Chicago Chi Chi- cago enso Nal National bank Director after director of the Chicago Chicago Chi Chi- cago National bank today appeared on the witness stand In Judge A A. A D D. Andersons Anderson's An An- Andersons Anderson's dersons derson's court count and told the tIme amazing story o of Walsh's financial deals Noone Not No one of or them knew that Walsh was wa lending millions of oC dollars o of the do llo- do- do mone money to his own 1 0 railroad ani corporations not one of or them knew that Walsh was currying carrying hi his own notes as ns cash In the bank Director Didn't Not one of ot them in fact knew anything anything anything any any- thing at any time Um about tho time discounts the time loans Joans or the of th time the bank and amid the first they ever er heard o othe or of orthe the time famous ramous memorandum um notes b by which the government charges he ho looted looted loot loot- ed cd his imis bank was in the tIme newspapers The most Jost astounding admission b by bythe the time directors cLors was that when Comp Comp- called calet upon them t to prepare a statement of at the con condition of or the Chicago National bank and antI submit sub sub- mil mit It to them that they signed their names to a a. document prepared b by John JohnH John Joh H It Walsh the contents of oC which the they had no 10 knowledge knowledge and l eal and permitted It t togo to tn go to Lo Washington Lon as their statement o of the tIme condition cOulton of or the bank So great greaL was their faith in Walsh they testified that even cen now they believed absolutely absolute In his integrity honker Defied 1 Government t The tact fact that Walsh defied th the United States SLates government for years refusing to obey the tIme ot orders of th the comptroller of or the tIme currency wa was as brought out in tho morning session b by the time reading of or the letters leters Kent sent b by Comptroller Hll ely to Mr Walsh The Time comptroller again and again al almost almost almost al- al most once a month warned Walsh that that his bank banI was overloaded with wih rotten rotten rotten rot rot- ten securities and antI that unless he re replaced replaced replaced re- re placed them with good securities the department would be forced to act act- net Again As an anti and again as-aln Walsh promised to todo todo do dt this and each succeeding examination examina examina- tion showed that the bad lad securities were Inere Increased Instead of or lessened John M. M Smythe and William Best directors swore Swore that they knew nothing nothing noth noth- ing Ins as to tho the condition of the bank never ne cr made matte any investigation and signed the reports without question queston This testimony apparently nettled JU Judge le Anter Anderson on who seemed amazed at the statements of or the time witnesses and frequently put sharp questions to them I which directed attention to their I gence Tho The result resul of or the day was a big MG gain aln for Cor the government which recovered reco some somo of or tho the ground lost tile the previous da day |