The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-09-12


ment made up of T. A. w. Davses. Take the
corroborating circumstances and the action of
the two men on the witness stand. You remem-
Der Davis. as he sat on the stand when intro
duced exhibit ''BB" and showed it to him you
remember how he mouthed, how his lips moved.
how he whispered and mumbled to himself. Did
you lock at hint If you did you have photo
graph Of him that will last you as long as you
| live. Remember him as ne looked and acted
| when he saw exhibit ''BB, F" and mouthed over 1t
| and could not answer a question for minutes,
| Mr.. Ketcham argued that the tax resolution
| is clear proof of dishonest motives on the
| part of New and Wright Let us look into that
| tax resolution moment. 1t was passed on
the second day of February, 1877, recoilect that
| 1t was passed before New and Wright had any
idea whatever that they ever would negotiate
with DIR. Morrison for the sale of their bank
| stock 1t is beyond dispute that negotiations
with Morrison did not commence until the 18th
day Of February. 1873 and this resolution was
passed on the I'd day of February, 1873 Here
it is:
February I'd, 1878, at meeting of the board of
directors held this day, motion it ordered that
this bank pay the taxes the stock of the bank for
the year 1877 for State, county and city purposes,
and charge same as tax circulation and deposits
Now, that resolution was passed ten days be-
| fore the negotiations with Mr. Morrison began,
and both New and Wright explained to you
| why it was passed. They explained to you that
| there fifty sixty stockholders some of
them outside of the city, and some of them out
side Of the State, and that it was very difficult,
and always troublesome, to look after the pay
ment of their taxes; the bank always had to do
| it. The bank officers thought it better and
easier to take the money out of the earnings OF
| the bank and pay the taxes, and make the divi-
| dends that much less than to compel each indl-
vidual stakeholder to look out for his own taxes.
| Some of the national banks of this city have
always paid the taxes of their own stockholders
| and taken the taxes so paid out of the
| ings 1t is much the best way. That is the
reason this resolution was passed. All, but says
| Mr. Ketcham, they had made contract with
| Mr. English that they would pay the taxes
| the stock for 1877 and they were getting ready
to unload on Mr.. Morrison They passed this
| resolution ten days before the negotiations be-
| gan or were thought of. What difference would
it make to Wright and New whether these taxes
| on their stock were taken out of their earn
| ings and they only paid per
cent dividends, or whether they personally
| paid the taxes on their stock and got
| per cent. dividends 1t did not make particle
| of difference to them. 1t was not passed in the
| interest of the stockholders living here; it was
passed in the interest of those who lived in
| other States and in other towns in this State,
with whom it was difficult and often troublesome
| to make arrangements in regard to the payment
| of their taxes. But there is little exhibit in
| evidence that bears that subject; but before l
pass to the exhibit, l call your attention to
| the line written by Mr.. Morrison. 1t is these
words, in pencil, under the resolution: ''The
| three officers were the only directors present.
and MIR. Ketcham says that that is the protest of
| Morrison against the contract between English
and New, and against any assertion of a like
contract between Morrison, ana New and Wright.
That is what Mr.. Ketcham calls protest. Now,
gentlemen, there is no protest in those words.
! A bind man can see that that res
oution relieves nobody from paying
| taxes their bank stock That resolution did
not take copper of the banks money TO pay
| taxes. 1t simply provides that your tax on your
| stock shall be paid out of the earnings of your
stock. That is all. The bank was not giving
| away anything by this resolution. Mr. Ketcham
| says that this whole matter of John G. Wright
| and John c. New claiming that Morrison agreed
| to pay the taxes on this bank stock, is an after
! thought; he says, in other words, that they
| have sworn falsely about that matter. Now,
| strangely enough. happen to find some words
on one of these exhibits, that put fat contra
| dietion on Ketchams assertion. Here is an ex-
/ hlblt put in evidence by plaintiffs: it is exhibit
| e" 1t is headed ''ast selection" 1t states
| that New is to take certain notes and Judgments
| and Wright is to take certain notes, and then
| there are on it memorandum in Mr.. Morrisons
handwriting, showing that there other
| matters about which they were still negotiating
| One of these memorandum reads thus: '"Taxes
/ for 1877, on stock, and those words are erased
| showing that they had that matter under con-
/ siGeration, and that when they came to an
| agreement that Morrison should pay the taxes
/ for 1877 on the stock, Mr.. Morrison took his
4 pen and erased those words. You can see the
| erasure plainly.
/ Mr.. CLAYPooI.-I agree with you; that is cor
rect
Mr. BUTLER-It shows that the matter of the
taxes on the stock for 1877 was
under consideration. and after Mr.
| Morrison had put down memorandum
| on the subject calling for further negotiation,
| and when an agreement was reached it was
scratched off and erased. If they did not have
| the matter of the payment of this tax for 1877
| under consideration how did Morrison come to
| write that memorandum on exhibit sc I" and how
| did he come to erase the words if agreement
was made regarding the matter!
| Now, gentlemen, Mr.. Ketcham told you that
| exhibit 'E0 was the first paper on which the
| Hartford, Conn, debt appeared and that the
| proposition to pay $50 per share--exhibit "HH"
was made and presented before Morrison knew
of the Hartford debt. Now, it is admitted that
not later than the 10Th of February exhibit "CC'
was copied out by John l.. Ketcham and that it
| is one of the papers made early in the negotia-
tons If you win look the back of that
exhibit "CC, you will that the Hartford
$50, 900 is prominently mentioned. Among the
first items under John G. New" is Hartford,
$50. 000"
Now, let us take another exhibit in that con-
| nection. On the back of "HH" is Hartford
$50 OO.' That is the third item on the back
Mr. CLAYPooI.-Will you permit me to ask
you, as am in doubt about it, in whose hand
MR. BuTLER-That is chiefly in John G. News
handwriting
MR. CLAYPooL-The exhibit with the words
'Iast seectionW
Mn DCfLEk-EarI Oh III is III JOnn ~. New s.
and part of it is in Mr. Morrisons The memo.
randums on it are in Mr.. Morrison's.
Mr. Carbohydrates 1877 stock" is not
| in the handwriting of New, is itg
MR. BUTLER-No. sir. 1t is Morrjson's hand
writing Hence, you see, gentlemen. that the
| Hartford Conn, $50, 000' debt was known to
| Morrison very soon after the negotiations com
menced. We find it on three different exhibits
| each time in Mr. Morrison's handwriting Two
Of the three exhibits which it appears were,
| evidently, made in the early part of the negotia
| tions between Morrison and New and Wright
| There is another memorandum on the bottom
! of the back of exhibit ''CC' that is worthy of
careful attention. 1t is this: ''Ketcham
review these questions" 1t is in Mr. Morrl-
sons handwriting. Ketcham tells you he does
not know one single thing about any of these
papers; although he wrote them; although they
1 IL