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

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Indiana trustees conrregating there. Just as
was leaving two men from Warren and Fountain
counties were introduced to me as refugees, aud
more were expected. 1t will thus be seen that
this gigantic fraud is developing every day
into more astounding proportions and each
days additional revelations bring the greatest
consideration and dismay to the hearts of the peo-
pie In fact, it is the only topic under discussion
business circles. There is strong feeling among
many prominent men, continued Mr.. Billheim-
er, ''who have earnestly expressed the nope that
Governor Gray would appreciate the necessity
of calling an extra session of the Legislature to
act upon the matter and endeavor in way
to stop the swindlng and fraud that are being
perpetrated throughout the State. Grimsley,
Brown, and Clarke, of this county, preparing
to embark in the hardware business IN Canada,
and the American colony of fugiIives in Canada
IS swelling rapidly, and nine-tenths OF the State
not yet heard from. They have lots of sympathy
for each other, evidently, from their actions. My
flying visit to Canada was rather novel"
Il have seen scores of letters and kilograms
from all tie leading cities within 1000 miles of
here said County Auditor Lovele, land our
bank has been flooded with them the last two
days. / haye received many myself Chicago
and Indianapolis capitalists seem to be in the
most trouble, although large number of
rants have been sold III Pittsburg St Louis and
Cincinnati
Startling developments are daily expected
from other counties The one-tenth part of this
rottenness and corruption has not yet been told.
Additional township warrants on Davies county
townships that have come to light follows
John Z. FrenZel. Merchants Bank, indianapolis,
$4,000 Charles Leninger Seymour, 81, 500; Mr..
Davis, Shoals, 81 200 Bedford Bank Bedford,
$1,000; NJ. ID. Watson. Chicago, 81, 900; William
Meredith, ir., 81, 200.
A prominent attorney of Vncennes who is
regarded as one of the best authorities on law in
the State, has thoroughly investigated the mat
ter, and has exposed one of the most astounding
schemes ever concocted to ruin the State. There
were many innocent parties, however engaged
in the transaction who were unconscious of any
wrong. These innocent parties were the brokers
Of money lenders who were only anxious to Sc
cure safe investments for their surplus money.
The full particulars Of the transaction are as
follows: The market was full of township orders
on various Indiana townships, and syndicate
of Chicago capitalists, including some of the
most prominent and wealthy men of that city,
was formed with view of purchasing these
orders at heavy discount This syndicate ar
ranged for disposing of the same paper to
capitalists in Connecticut The syndicate
was composed of honest men, of undoubted
integrity, who would not engage in a
nefarious scheme TO rob the people; but
they had not investigated into the affairs
Of the township trustees and supposed that
avery warrant on the market was perfectly legit-
innate, and <the syndicate conceived the idea of
investing in them for pure profit Before invest
Ing, however, they sought legal advice, and as it
happened, secured certificates of recommended
ton from ex Senator Mcdonald, Senator Har-
rison, Senator Voorhees,, and Vice-presdent
Hendricks, testifying as to the eminent legal
ability of the attorney of this city aforemen-
toned and asserting as TO his personal integrity.
These certificates, signed by men OF national
reputation certifying as to the moral worth and
legal ability of the Vincennes attorney.
all that were needed to insure the instantaneous
disposition of all the township warrants they
could buy, as the Connecticut capitalists had
offered to take them, and let the warrants run
Indefinitely as long as the interest was paid.
After securing the certificate of the eminent
indianians the next thing to do was to see
the Vincennes attorney and secure his written
opinion that the township warrants were good
commercial paper, and that it perfectly safe
to invest in the same. Here is where this synd
cate of capitalists to a standstill, and they
proceeded no further voluminous CORE
spondence was carried on. and in each letter that
was written TO the Chicagoj capitalists the Vim
cennes lawyer declared that the warrants were
absolutely unsafe investments, and that the
only safeguard the purchasers had was the
integrity and honesty of the trustees. The
attorney regarded the warrants dangerous,
and, being urged by the Chicago firm, inves
tigated several trustees in various counties and
found rottenness and official corruption to such
an extent that many public exposures followed
the Daviess county cases being three of
the special instances. This Chicago syndi-
cate were especially anxious to buy these
warrants. and they may have purchased a
few. A school furniture house had secured
large number OF them, but found that salts
factory disposition of them was slow work. Thus
It that the matter was brought to the atten-
ton of the capitalists, who Immediately formed.
the syndicate. and completed all the arrange
ments to buy largely of the warrants and the
only instrument they lacked to complete the
transaction was the satisfactory opinion of the
attorney they had employed This was not
forthcoming to suit them, and it is understood
the matter was dropped. However. if the attor-
ney had declared over his signature that the
warrants were valid, there would have been
endless speculation in township paper. The
chool-furniture house would have gone to any
length by bribery and swndlpg to secure this
syndicate who had unconsciousy formed com.
pany to buy the paper that was issued by fraud
and conspiracy.
ut is the biggest swnde on record, remarked
the attorney, ''and the State would have been
almost bankrupted The rottenness and corrup-
ton liz the State among the trustees now are
amazing but it would have been worse had the
Chicago school furniture house been given full
and free rein. Why, they would take warrants
for school supplies payable in ten years, and
make a contract with the trustee to deliver the
goods whenever he ordered them The goods
were deliverable periodically in the future when
ever the trustee signifed, but were paid for in
advance by warrants drawing interest. The
idea of paying interest for goods not be deliv-
cred or used for eight or ten years! 1t is simply
preposterous and l put my foot down on it,
You haven't heard the last of the swndling
either The State is full of it,"
How the swindle is Worked.
Attica Ledger.
w fhn I,oHr hes