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

forth the item of cash on hand, nor the item of
United States bonds, nor the item of bills and
notes; but he stacks up the debit side the capital
stock, the surplus fund, the profit and loss
count and earnings, and discount, and nothing
else and from that aggregate subtracts all losses
to this hour, and tells you that the remainder
measures the then value of the stock. Ii the
bank had had 81, 000, 600 of notes and million
dollars cash on hand, and had only owed $500 600,
ketchams exhibit would not show a cent of the
ST, 800 600 surplus assets That recapitulation IS
an absolute enormty, as shown by the evidence
of Mr.. English and Mr.. New. and everyone who
has testified regarding the value of bank stock.
Its value is not to be tested simply by subtract
ing all losses and bad claims from the aggregate
found by adding capital stock, surplus fund,
profit and loss account, and earnings and dis
count account, together, because there are many
items OF great value that are wholly omitted in
such an unjust and one sided computation.
am showing you the condition of this bank in
February, 1878, from its actual assets and liza
bilties. Second This bank had $3.50, 900 of
Per cent bonds, remember that, and right in
that connection, remember Mr. Ketcham's
euogy on per cent bonds. According to the
evidence of Mr.. English, those per cent bonds
were then worth $6S9, 600 in cash, but Mr.. ketch-
am makes all his computations on THE PRESENT
VALUE of what were then the assets of the bank,
and measures what the bank was worth THEN by
what its then assets are worth NOW Hence
have perfect right to count those United States
bonds at what they are worth NOW. Suppose that
Morrison had locked them up and kept them;
they would be worth to-day just $799, 500.
MR.. kETCHAM-Do you say that Mr.. English
said that in February, 1878, the bonds were
worth $3.50. 600!
Mr.. BUTLER-No. sir; say according to the
drift of his evidence.
Mr.. KETcHAM-He said they were worth that
on the day he sold.
Mr. BUTLER-Yes. sir; that the premium kept
growing instead OF decreasing. Mr.. English did
lot remember the decreasing.
MR. kETCHAM-Mr. Churchman fixed exactly
the time; he referred to paper and showed the
exact day.
about that. but am in doubt; and &henever Mr..
ketcham makes statement in regard to testi
mony from this time on | am in doubt about it,
because he has proved to be most grossly incor
had the opportunity to correr him.
l am not going to say he is right
or wrong about that; it is wholly immaterial to
the point under discussion. Do not permithi in
terruption to withdraw your minds from the fact
that the 5000, 600 United States bonds then held
by the bank worth $799 900 Mr..
ketcham measures wholly by values at the
PRESENT TINE. We will apply his rule of meas
urement to those bonds. If they had been
locked up from Feb. 3d. 1878, until the day Mr..
Ketcham made his speech in which he called
this rotten bank, they would have been worth
$199,500 in cash. That is another rotten timber
in this bank Now they had miscellaneous
assets, railroad bonds, tax certificates, county
orders, furniture, fixtures aud real estate, $780,,
1l3, from which plaintiffs now admit that
they cannot by any possibility subtract more
than ST., 900, and say to you that they can only
subtract 5000, because that $l7 500 is the
entire loss real estate from the year 1877
until the year 1884. Why, it IS in positive proof
that al the time of this sale the bank only held
$l0,l5O worth of real estate; how could they have
lost $l7.566 on that! Counting out the S., 900
lost on Mrs. Milers real estate, still leaves $685.,
lib of good assets. This bank had notes,
bills ard judgments ageregating 81, 086, 35G. Let
Us dissect that item. We know that $342. 700 Of
these notes were perfectly good, because Mr..
Miller and Mr.. Morrison assumed that much.
That is to say, they assumed 100000 of the
Hanna, Knefer, Hays and McCutcheon notes,
and they turned over to Mr.. New, out of these
notes and judgments, $97, 700, and they turned
over to Wright $50, 900. Add those together and
it makes $342 700 of undoubtedly good notes
and judgments. Morrison and Miller realized
that amount, out of notes and judgments, i'm
mediately upon their purchase of the stock from
New and Wright. That leaves SAG, 900 still to
consider of the notes, bills and judgments. OF
these the notes now left, in the shape of notes,
unpaid, by their own showing, only amount to
$40, S. and of these unpaid notes the re-
ceiver, Milligan, says that the East notes of
ST, 600 will be paid, and that one haf-he says
from 90 to 10 per cent, will put it one half-of
the Hanna debt will be recovered. That makes
$1,879-these two items still good, make So, $50
subtract this from the $40, 7l2 So and we have of
worthless notes, on their own showing $37 832 So.
l do not know how much OF that will be re-
covered; but let us count it as dead loss. Now,
on bills receivable account, exhibit ~" they
have put down as lost So. 72l.54 and on
miscellaneous bonds account, which is the same
exhibit $l7566 The main part of the So, 731
claimed to be lost on bills receivable account is
the tax the stock sold for the year 1877,
which, AS is in proof clear and positive, was to
be paid by Mr. Morrison. The exhibit showed
you, yesterday, proves that Mr.. Morrison had
that matter under consideration in the negotia-
tions, as an item that he wanted New and
Wright to pay, and that they refused to pay it,
and he then erased it. Don't you remember the
words Taxes 1877 on Stock" and the pen line
drawn across those words exhibit headed
last selection" which showed to you yester-
dayl That exhibit shows conclusively that Mr..
New and MIR. Wright were exactly correct when
they testified that Mr. Morrison, at the final
negotiation, agreed to pay the taxes on the stock
for 1877 When he so agreed, he took exhibit
'E, headed ''last selection, and scratched out
the words taxes 1877 on stock" Now how do
you suppose Ketcham got ST., 600 of loss on mis-
cellaneous bondsf In the first place they put in
evidence as lost on that account: Orme, SIS, 5l3
they now admit there will be about 81, 100 Of
that paid-and the Franklin Fire Insurance
Company stock $1,000, and that all.
Since the evidence closed Mr.. w. A Ketcham
has added i'll pencil on exhibit ~ $l2, TAO loss
on the Slaughter stock. Who proved it2 VINO
swore there was dollar Of loss to this bank on
the sale of the Slaughter stocks Mr.. Morrison
wrote to the Comptroller of the Currency: II
have sold the Slaughter stock" aud the proof
and the note book shows he sold it for So AGO.
Now, that was long after Morrison and Miller
bought New and Wright's stock. If Mr. Rock
wood did not pay his note, he was amply good
for it, and if this bank let Mr. lockwood get
away with their stock without paying for it, it is
not the fault OF New and Wright; so that say
TO you gentlemen, that it is simply scandalous
for Mr.. Ketcham, without any shadow of proof,
to undertake to say to this jury that there is a
loss chargeabe to us on the Slaughter stock Of
these notes and judgments thers was $1lO,64O
then in the shape of judgments Only one of
those judgments now remains unpaid, as set
forth in exhibit INA" The whole of exhibit
INA" contains only one judgment that was in
Judgment at the time this stock was
sold, and that is the Sturm iudg-
ment; and now, gentlemen, l propose
to show you that Mr. Ketcham has that same
Judgment in both exhibits, IN" and INA" thus
Duplicating it.