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WALSH FLAYED FOR FRENZIED s FINANCE LOOTED BANK OF MANY MILLIONS, IS CHARGED Opening Address of Prosecution in Case Against Chicago Banker Scathing Arraignment of His Business Methods [By Morning Journal Special Leased Wire.] Chicago, Nov. 13.-The trial of John R Walsh ex-president of the Chicago National Bank on charge of misuse of the funds of that institution formaily opened today The jury was completed shortly after noon and Assistant District Attorney Fletcher Dobyns at the opening of the aftercommenced the preliminnoon session governary statement in behalf of the ment It is expected that Mr Dobyns will not conclude his opening address until late tomorrow The go vernment will attempt to show that Walsh took from the Chicago National Bank the Equitable Trust company and the Home Savings Bank $14,000,000. In his statement today Mr Dobyns declared that Walsh obtained the ownership of various large properties the without cost to hims by using funds of the banks He said Watered stock to the probable amount of $25,000,000 or $30 5.000.000 was issued. Mr Walsh, through his employes, voted the stock himself He then sold this stock to the banks, taking the money to build up his private enterprises. All of the stock so-sold by Mr Walsh was practically worth less The assistant district attorney then stated to the jury how Mr Walsh had induced various people to sign 'ac comodation notes for the bank 'Then,' said Mr Dobyns, "he signed the names of people to the notes Checks were made out payable to bearer and credited to the personal account of Mr Walsh. Bonds were made out to the same 'dummies names were on the notes and the whose credits were made to Mr. Walsh's account. In 1903 Mr Walsh was told by the bank examiner that the Chicago Na tional Bank was being loaded down with the securities of Mr Walsh's per sonal enterprises. The examiner or dered him to take these securities out. and Mr Walsh promised to do so In 1904 the bank was found in the same condition the warning was repeated and Mr Walsh again promised ex to remove the securities Another amination showed that the bank was in a worse condition than ever and it was then ordered closed. The government will show that Walsh's method was to buy from him self, fix his own price and put the money in his pocket As an illustration of Mr. Walsh's procedure in matters of finance the assistant district attorney cited the Peoria Gas and Electric company which he referred to as 'perhaps the least objectionable of any of Mr. Walsh's enterprises 'This company he said, "was or ganized in 1899 and the apital stock was fixed at $500,000 Two hundred it thousand dollars was paid in, and was all paid by others in the company than Mr. Walsh Mr Walsh was to hold $300 000 of the stock and issued certificates for bonds to that extent These were worthless, but he put them for in his banks and took out money them and built up the company An obje ection by the defendant's counsel at this point was sustained by the court and Mr Dobyns passed the considerati of the Southern Indiana Railroad company reviewing its history up to the time Mr Walsh pur chased for $175,000 Mr himself He had issued Dobyns said, $300,000 in bonds at the very time it was organized and those bonds had no value He put them into the Equitable Trust company selling issued another them at par then $100,000 of bonds and sold then at par. He took money from time to time from the Chicago National Bank and to from the Equitable Trust company develop this property depositing worthless bonds until he had deposited with the former $300 000 and with the latter $950.000. He tried to get the bonds listed on the New York stock exchange, but he was told to show their distribution and the matter was over laid Later he stated that they had been distributed They had been distributed In in his own banks at his own price. 1901 and 1902 the prosecutor told the jury, various amounts of money were from the banks with the unmarketable taken bonds as collateral until more than $3,000,000 had been removed from the personal use of Mr Walsh Mr Dobyns then took up transac tions relating to the Illinois Southern railroad and of Mr Walsh's enterprises. He declared that money to finance this road was advanced by the Equitable Trust company on receiver's certificates and that 136,000 of these certificates were afterward declared invalid. Mr. Walsh arranged with the bond holders for the purchase of the road, he said. and $800,000 of the com pany's bonds were voted to him. He put the bond in the Chicago National and his other banks About $225,000 of them were put in at 80 and later taken out at par. so Mr. Walsh had $1,400,000 of the company's stock without it having cost him anything. He intended to connect the road with the Southern Indiana, but found he needed more bonds, 80 the capital stock was increased to $5,000,000. and a bond issue for this amount was also made An attempt to market these in New York falled and they were put in the Walsh banks After several other similar details had been told the jury Judge Anderson interrupted the speaker and adjourned the court until tomorrow morning Italian Princess Born Rome, Italy, Nov. 13.- Queen Helena this morning gave birth to is the fourth child