The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-07-21
TIE FINANCIAL OUTLOOK.
Judge Robert N. Lamb Appointed Re-
ceiYer for Mr.. Harrison's Bank.
The Real Condition Of ITS Affairs Yet I'm
knoWn-The Proposed Plan for Reor-
ganizing Fletcher & Sharpe's,

/ PoAhUSN OuNSO y. 14dIup ISNSlNSI y AnE
rison's Bank, fixing his bond at 500, 900, a reduc-
ton Of 5000, 600 from the amount originally pro
posed. Judge Lamb consented to accept
the trust, and during the afternoon gave the
required bond, his ~sureties being /. n. Pattison,
N. N. Morris, w. G. WATSON, j. e. Robertson
and Ralph Hill. The appointment gives gen
eral satisfaction, for Mr.. Lamb is known to be a
man Of excellent judgment and ability. He is at
present receiver of the Central Bank, whose
failure was at the time thought to be most dis
%astrous. He managed its affairs so admirably
that he has already paid rs cents on the dollar,
and he is now about to declare an additional
dividend of 10 per cent.
Judge Lamb took possession Of Harrison's
bank Saturday evening. and an examination of
the vaults showed that the amount of cash on
hand was just 500. %, mostly in nickels and other
fractional currency. Mr.. Lamb will this morn
ing begin an examination Of the books and pa
pers, and he thinks he will be able to make pub
lie a statement of assets and liabilities by to-
morrow or Wednesday. Mr.. Harrison still de-
chnes to make any statement to the reporters.
MORE LEGAL PROCEEDINGS.
On Saturday afternoon an amended complaint
was FLED by Alfred Harrison in the superior Court,
reciting the facts set forth in the petition for
the appointment of a receiver and setting forth
in addition that he is the owner in his individual
right of certain real and personal property and
that the defendant, John G. S. Harrison, is the
owner in his individual right of certain real and
personal property, that the partnership assets of
the firm are not sufficient to pay their liabilities,
wherefore the plaintiff surrenders all his individ
ual property, saving the amount legally exempt
from execution, and asks the court to take pos
session OF the property by the receiver and apply
Tito the payment of the partnership debts in the
same manner as the receiver takes possession Of
the assets of the partnership. The complaint
further AYERS that the plaintiff is Informed and
believes that the defendant, John C. S. Harri-
son, is willing to surrender his individual prop
ertY for the payment of partnership debts Of the
firm, and the plaintiff asks that the defendant be
required to answer the complaint, and in case he
consents to such surrender Of his individual
property, the court to direct the receiver to take
possession OF the individal property of the de-
PENDANT in the same manner and for the same
purpose as that of the plaintiff.
70 this an answer was formally made by j. G.
). Harrison, admitting the allegations made.
Later in the day three mortgages were placed
on record by the Harrisons, conveying the resi-
dence property of Alfred and John G. S. Har-
rison and the Parker Block on North Delaware
street. They are executed to Charles Mayer,
William Haleisen, William Haerle, George W.
Stout and George Mannfeldt, ~SuretieS on John
c. S. Harrison's bond as receiver of the Indiana
Banking Company, for the purpose, as stated,
to secure and indemnify the mortgages
against any and all loss on account of their LA
bility as s~ureties of John G. S. Harrison, re-
ceiyer of the banking company, and to secure
the mortgages on account of any money they
may be required to pay as such sureties,a The
mortgage on the Parker Block is also ito secure
the mortgages against any Indebtedness Of
Alfred and J. G. S. Harrison
PROPOSED OF FLETCHER q
SHARPE.
Exclusive mention was made in the journal of
Saturday of the proposed scheme to reorganize
Fletcher & Sharpe's Bank, which is meeting
with much favor from depositors, and there now
seems to be a probability Of its consummation
The plan of reorganization is detailed as follows
in a circular sent out to depositors:
It is very desirable, and unquestionably to the inter
est Of all depositors III the bank of Fletcher & Sharpe.
that their affairs be taken out Of the hands of the
court, and the bank continue business, and to this
end it is now proposed to form a stock company,
under the name of Fletcher & Sharpe's Banking
Company, 7 each depositor being a stakeholder to the
amount of his or her deposit, and with limited iabil-
ity, Messrs. Fletcher and Sharpe holding all stock
above the amount due to depcsitors. This viii make
a bank with a capital of about 81, $50, 000 paid up
and out Of debt.
4he plan is as follows:
A. Fletcher s Sharpe convey to said company all
1 III real oolJbb6 u1Q Luf1l ON6f, EfSO, dll DOp6S, DlllS.
cash and other assets. now held by the receiver, esti
mated to amount to 81 100000.
2. The depositors hold stock to the amount due
them, being about 81 $4,000, leaving $3.50, 900 for
| Fletcher & Sharpe.
8. The said banking company to be managed by a
board Of directors, to be composed Of nine members,
four of whom shall be the members of the firm Of
Fletcher & Sharpe, who shall continue in charge of
the details Of the business. and the remaining five,
elected by the depositors, as their representatives:
this management to continue for five years.
The advantage of this plan would be;
]. Saving Of cost Of litigation, lawyers's fees, forcing
1 of real estate on the market at an unfayorable ti,aa-
and sacrifice Of asses. as IS always the case under q
receivership, because, the bank being entirely out of
debt, would have ample time to convert its assets,
instead Of being compelled to sell, in order to close
such alarge estate.
2. Each depositor being a stockholder, would be
interested IN the success of the bank, and by con-
tinuing his or her business at the bank, in which he
or she would then be interested, would be adding to
the profits of the institution, by providing funds
with which to make discounts and accommodate bor-
rowers.
8. The sales of real estate would be made at more
satisfactory prices, and money would thus be con-
large capital provided with which to carry loans; and
the larger the profits the more rapidly would the
stock appreciate in value.
A. Dividends on stock would be made in the fol-
lowing order, VIZ: That held by d~epositors would be
entitled to a dividend first; after that, the stock held
by Fletcher = Sharpe should participate, the deposit
ors' stock being considered preferred stock
It is believed that this is the best course to pursue,
as any one can see at a glance the necessity Of saving
the aSSerS, instead OF allowing them to be frltter6d
away through court and attorneys fees, and all the
attending costs of winding up so large a business. IL
is also believed that, within two years, dividends on
the stock could be made, and such as would make the
stock a very desirable investment for any one. With
in five years the stock would be worth its face. and
the strongest bank in Indiana would be the Fletcher
& Sharpe Banking Company.
The undersigned agree to the above arrangement,
and request a favorable response from you. Please re-
ply promptly, as it is desired to reopen the bank by
the 18th day Of August. This places in the hands Of
the d~cpositors the entire means of the firm and the
management Of the business, and there would, there.
fore, be no waste, but the entire benefit over the act
ual running expenses would go to the depositors, who
are then participating stockholders, as there would
waste of means, but all inure to the benefit Of depos.
itors, and, with the good will of the bank, a large and
prosperous business may be expected without delay
This would re-establish confidence in financial circles
here more than any other one thing which could b
done.