The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-09-15
More than $4,000 Of Fraudulent Bonds
Issued Against Three Townships, and the
Full Extent of the Swindle Not Known.
A Jennings County Bank Succumbs Be-
causeof Dealingsin the Bogus Paper.
The Law Governing Trustees, with Citations
Of Past Decisions-A Prospect for Long
and Stubborn Legal Contest.
A PROLIFIC TOPIC.

What the People of Daviess County Talk
About-Extent of the Frauds.
| Special to the indianapolis Journal
| VINCENNEs. Ind, Sept. 14-It would not be
an exaggeration to say that fully three fourths
of the business men. brokers, bankers and
SPECTATORS in Indiana are talking law, law, law,
| these fine September ays-law relating to the
| tremendous township trustee swindle that is
putting our best legal minds in a state of per-
plexity. The attention the swindle has at
| tracted from every quarter of the United States,
and especially throughout Indiana has not
diminished in any degree, and the legal points
| involved in this mammoth piece of rascaity are
| far from solution as ever. Hundreds, and
probably thousands, of capitalists are holding
bogus Indiana township bonds, and it is fine
| question in law as to who will foot the bill-the
honest, toing farmer tax payer, or the innocent
investor in this spurious paper. One the
other is sure to lose, but it is almost impossible
to get lawyer to say which.
| The pretty little city of Washington, Daviess
| county, town of nearly 5000 people, is the
| chief place of interest in connection with this
huge swindle. Her people will suffer most, and
they are bracing up to stand the test Hon. w. r.
Gardiner, of the law firm of Gardiner & Taylor,
is of the most positive men on the subject
| He says:
| 1.-THE bonds issued by Brown, Clark and
| Grimsley are not worth the paper upon which
they are written"
How much of such paper is out2"
"Oh, Lord! The amount will never be known.
think these rascals issued bonds until they run
out Of paper, and continued to sell them until
we made it so hot for them that they had to 60
| to Canada. Don't believe the purchasers will
ever be able to collect cent. We can prove
fraud, fraud, fraud, and the cases will! be so bit
terly contested that scores of these warrants
will never be presented for collection. That is
the reason why the full extent of their rascalties
| will never be known. The holder men-the
| heaviest losers-will fight the battle, and the
timid oneslwill remain in the background, unable
to gather strength enough to assert their rights
and finally many Of them will lose hope alto
gether, and quietly submit to their losses. The
chief reason why Brown and Pollard left be-
| tween two days was because some suits were
pressing the Washington township trustee, and
he and his co-conspirator became alarmed. The
others followed in quick succession"
| us the case complicated"
swell, l should think so; but that is all the
more reason why the lawyers will fight all the
harder Of course there is some good paper out
on these townships-paper that was issued in a
| perfectly legitimate way; just how the righteous
will be separated from the ungodly don't know.
| Our Board of County Commissioners however,
has already instructed the newly appointed trus-
tees not to pay out dollar, and of course they
will obey orders"
| Mr.. j. c. Bllheimer, the attorney, of Wash
ington, who followed the trustees to their new
| quarters in Canada and forced settlement out
| of them, is much perplexed.
II cannot express an opinion" he said II
have clients interested; but will say that there
| are several new legal points involved in this
| matter which will have to be settled by long
and bitterly contested trial before the Supreme
Court. Our people, Of course, mean business.
and don't propose to be swindled if they can
help it. There ia question as to q township
trustees power; question as to whether q trus-
tee surreptitiously issue paper even to
| the full extent of the per cent tax
There is also a question as to bondsman's
liability for trustees unofficial acts; also, a
|
commercial paper; Also very fine line to be
drawn between the legitimate township bonds
and the illegtimate. Endless trouble and ever
| lasting litigation is promised. Practice makes
| law, and this huge swindle will speedily put
| several new law-points in the statute books. Do
| think there is half million of this paper out?
Well, don't know; l hope not Nobody knows.
| 1t is all guess work. If ever people were
swindled bafled, abused. it is in this instance.
| 1t is discouraglng to think of it. heard one of
| the trustees say in Canada, that two of them
sat in an Indianapolis hotel day, filled out a
bunch of bonds, went cut in some direction on a
railroad. and returned in twenty four hours with
| 800 600 to 500, 900 in CASH."
did you reproach the trustees for their
villainy when you met thema" was asked.
II felt like doing some tall swearing. but
where would be the beneitl said this is bad
| business and they admitted it in a nonchalant
manner as though they had made up their
| minds to stand it. They feel, however, that a
| long life of misery and wretchedness awaits
them. was not there but few hours but
heard good story ION Grimsley. They were
riding along on Canadian railway, when sud
denly the train stopped at station called Grims-
! by and just at that moment two large men got
off the train, when one of them, glancing
at the sign bearing the name of the town,
went to the window where Trustee Grimsley
was quietly sitting, loudly exclaimed: by -,
here's GrimsbyP The coincidence was too much
and Grimsley thought sure his time had come
| lie quaked with fear. turned pale, and trembled
like an aspen leaf, as he thought the two men
were officers of the United States government.
1t was a long lime before herecovered his nerve.
1t was big joke on Grimsley and Brown and
Clarke made use of it. l don't believe" con-
tinued Mr.. Billheimer, "that Clarke has any