Washington Herald
Washington Herald
Contributed by barbara-dave

Description: Walsh Trial Page 3

Date: November 14 1907

Newspaper published in: Washington, D. C., USA

Washington Herald November 14, 1907 Walsh Trial Page 3

Farmers and Stock Raisers Will Decide Case.


Assistant United States District Attorney Charges that Head of Chicago Financial Institutions Organized Dummy Companies and Loaned Them Money.

Chicago, Nov. 13 - The jury which is to determine the fate of John R. WALSH, former bank president, accused of bank looting, was completed at 12:10 o’clock to-day and at once sworn in. It is practically a farmer’s jury, nearly every man in the box being either a farmer or a stock raiser.
The government began its opening address to the jury immediately after the resumption of court, following the noon adjournment. In his opening address Assisted [sp.] United States District Attorney FLETCHER DOBYUS charged WALSH with having organized dummy companies whose bonds were bought by the funds of banks under WALSH’s control.

Protested Against Action.

The assistant district attorney further charged that the dummy companies were made up of WALSH employes. Continuing, Mr. DOBYNS said he would show by evidence that the national bank examiner repeatedly protested to WALSH against the presence of so many bonds of the WALSH companies being listed as securities of the banks. The objections were met by the promise of Mr. WALSH that the bonds of his companies would be removed and other approved securities substituted.
The jury was told that the bank examiner would testify that when the bank was examined subsequent to the failure it was found that out of $14,000,000 deposits of the Chicago national Bank, $7,000,000 was loaned to WALSH railroads and subsidiary corporations; of $4,800,000 deposits of the Equitable Trust Company, $3,200,000 was thus loaned.

Will Call Bank Employes.

Before Mr. DOBYNS could finish his argument, Judge ANDERSON adjourned court until to-morrow. The first witnesses to be called for the government will be persons connected with the defunct WALSH banks, who had charge of the records of the institutions. They will be asked to identify the books that these may later be properly introduced in evidence.
It is expected the first important witness for the government will be Special Examiner MOXEY. He will be followed, according to present plans, by J. H. BOSWORTH, who took charge of the WALSH banks, after the failure, and during the time he was in control, was elected president. Another witness will be T. C. JACKSON, cashier of the Chicago National Bank.
First fruits of the government’s victory of Tuesday were apparent when the various officials of the WALSH bank appeared in court, bearing the 390 books they were ordered to produce. These book records will be used by the government against WALSH.

Submitted: 01/17/11

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