The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-12-03
THE FAILURE OF BENJAMIN D. BROWN.
The IndianOla Elevator MOrtgaged to the
MiddletOWn Bank-BrOwn'S Methods.

The complications arising from the failure OF
Mr. B. D. Brown are becoming somewhat nu-
merous, and there is probability of almost end
less litigation over it. The county recorder yes
terday received for record mortgage dated
Nov. 10, 1888, made by the Western Elevator
Company, of this city, to David D. Houston and
Howard S. Conklin, of Mddletown, N. Y. The
property involved is the elevator in Indianola,
built originally by Brown & Boyd and by them
transferred to the elevator company, together
with all the machinery, buildings, appli-
anees, tracks, etc. and it is mort
gagged to secure the payment of
$50 900 due the parties of the second part which
is secured by bond or obligation of the elevator
company to the amount of $780, OOO This obi
CATION was due Nov, 10, 1888, and bore 6 per
cent interest, and was unpaid, and the mortgage
was therefore given at that time. The elevator
property does not include the land on which it
was built, as that was leased from the Indianap-
oils, Decatur g. Springfield Railroad Company.
Accompanying the mortgage is assignment
of it by Houston & Conkin to the Middletown
National Bank, of Middleton N Y, the nomi-
nal consideration being its face value i. e., $50,
900. This is the bank that became so involved
by loaning money to Mr.. Benjamin D Brown
that it was forced to suspend, an account of
which has already been given.
Apropos of Mr.. Browns business methods, the
following from the New York Times is of in
terest
The bonds which Benjamin D. Brown hastily
left in the Goshen National Bank on Friday
morning as security for $12, 900 loan were not
according to lawyer L. A. Gould, of this city,
property which he could have rightfully as
signed to the Middletown National Bank even
he diSnOSed n
may have done an injustice to somebody else"
added Mr.. Gould, but, so far that transaction
is concerned, can assure you that he has not
wronged the depositors of the broken bank. The
bonds were not his to assign"
Mr.. Gould said that he first made Browns
acquaintance about year ago when he went
West with him as attorney to look after some
property interests. Since then he had met
Brown several times, though he did not act
his legal adviser in any matters concerning his
assignment Mr. Gould said that the railroad
rebates which Brown had assigned over to him
were for a personal debt, and were assigned
before the Mddletown crash took place He
had the dispatch Brown sent to the In
dianapolis agents before it was sent Asked
concerning the nature of Browns transactions
during the past year or so, Mr.. Gould said:
II am confident that during that time he has
not been specuator in grain as that term is usu-
ally understood He was interested in great
many enterprises, involving a large amount
of capital. The panic last May was "a serious
DlOW 10 nlIL OuC he mas Uldu6 a brave struggle
since, and up to last week. l believe he could
have failed with an honorable name. AS to the
matters developed in his connection with the
bank, they cannot, of course, be justified, if
true, but believe that in part at least there is
another side to the story"
''Then you do not think, as has been surmised,
that Mr.. Brown has made any money by the fail
ureq"
Indeed I do not Mr. Brown came here on
Friday morning, and told that he had as
signed to the bank directors everything but the
rebates previously turned over to me for the ben
eft of the creditors. How much that will realize
| cannot give you the least idea. Mr.. Brown did
not make a statement of his assets and liabili-
ties, as | am not his legal adviser in the case"
did Mr. Brown say whether or not anybody
in the bank knew of his overdrafts but Presi-
dent King2"
He said that he had made certain arrange
ments with the bank by which certain things
were to be turned over to him when certain
other things were performed. That is as def
mite as l cap be now but hardly think such
arrangements could have been made with Mr.
King alone Mr.. Brown got as far as Buffalo,
and was going on to Toledo to complete the
agreement specified when he received the dis
patch from the bank calling him to Middle
town"
do you mean to say that the directors broke
an agreement with Brown and thereby precip-
itated the crash?"
II mean to say no such thing. I simply repeat
what Mr.. Brown told me. | have met Mr.. King,
and he personally expressed very high opinion
of Mr. Brown. He had been long at customer
at the bank, good one, and, until recently.
profitable one. OF late Mr.. Brown has been
very hard pushed, and in his general demorali-
cation and severe mental excitement may have
been led into desperate straits for raising
money"
''Do you know where he is nowr
81 do not He went away from here Friday
morning, and have not seen him since, though
he promised to communicate with me again.
gentleman in the city who knew Brown
and has talked with him since the crash, said;
'Mr. Brown is where he can obtain needed rest
and quiet. He has been under great excitement
lately. His father died only short time ago
and it was last week that he buried his mother
Then this trouble coming right on him proved
too much. When l saw him on Friday he was
completely broken down He is now under a
physicians care but when he Is all right will set
about Strengthening up his affairs. He is a
plucky fellow, whatever else be said of him, and
will do all i'll his power to get his feet again"
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