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

$1,000
| day was too close too exacting.. Let me read
| few lines from another letter of Mr.. Morrison to
| the Comptroller, of April 10, 1878: Before my
connection with this institution, as you have
been advised by the examiner of the national
| banks, Mr. Lynch discovered"-now, Mr.. Shep-
ard read that shas discovered" What did he
read it so forl Mr.. Morrison did not write it
has discovered" but he did write that before
/ his connection with the bank, Mr.. Lynch
| discovered the fact of important losses having
been inflicted upon it by former cashier and
| teller
| Now, here is the purchaser of this stock and
the pre- sldent of this bank, writing to the Comp
| troler OF the Currency less than two months
after he bought this stock, and yet he does not
express particle of surprise with regard to the
Slaughter and Miller defacations Not a word
| OF complaint, not word Of surprise from him!
He simply writes to Mr.. Knox. saying to him:
You know that long ago, before | bought
into this bank, Mr.. Lynch dis
covered these defacations" Did not Mr..
/ Lynch warn him about them before ne
began negotiations with New and Wright If
not, and if he did not know about the defaca-
! tons until after he bought the stock, would not
| he have said to the Comptroller of the Currency:
Il have been greatly astonished since l came
into this bank to find out that there have been
defacations!' He did net say anything of that
kind He says ''As you are ware, the Bank
Examiner, before my connection with this bank,
discovered important defalcationS.n Gentlemen,
that letter of April 15 1873, is evidence enough to
| corroborate John G. McCutcheon and John c.
| New and John G. Wright in every word they
have said with regard to telling Morrison all
about the Slaughter aud Miller defalcations
before he bought the stock, ana you know it.
| Mr. Morrison the same as says to the Comp
| troer of the Currency: Il knew, before L
| became connected with this bank, that Mr..
| lynch had discovered these defalcations" IL
Mr.. Morrison had been so shocked by finding
corruptons and defalcations, as plaintiffs coun-
| sci, outside of the record and without any evil
| dence to support them, tell you that he was, he
would have said something to the Comptroller
about it.
| Permit me to read sentence or two from
! letter Of Mr. Morrison 10 Comptroller Knox,
| dated Feb 6. 1879. The Comptroller had been
accusing Mr.. Morrison of carrying certain notes
| In bank as stock notes, and had scored him for
| his ovERDRAFTS. and for the excessive loans to
Samuel Miller. In his answer Morrison writes
| 'as to the estimate of the loss reported by the
late examiner" l believe that examination was
| by new examiner. This letter was written
after Mr. Lynch resigned as examiner, and
| before he was reappointed.
Mr.. KEToHAM-It reads as though there was
| some other examiner
| Mr. BUTLER-I will read only a small part OF
this letter. AS to the estimate of losses report
| ed by the late examiner, assuredly say
| that the sum named by him is largely excess
| OF the actual losses sustained by this bank.
| estimate them Remember, this is in February
| 1879, year after Mr.. Morrison became president
| of the bank. 1--WE believe that we are III
| position TO determine with mere accuracy the
present condition of the assets Of this bank than
| anybody else. That is Mr.. Morrison's state
ment as to his knowledge of the condition of
| this bank Long before that letter was written,
in September, 1878, Mr. Morrison printed, pub
| llshed and circulated among the stockholders
and depostors a public statement carefully pre-
pared and signed by him as president of that
| bank. / commend this statement to your most
| careful consideration. In it Mr. Morrison com
pares the condition of that bank, as he then knew
| it to be, with its condition just year before
q hat e
| 1915 and he gives the condition of it Sept. 6,
1878. Did he know the condition. Every single
| loss had then been discovered that is now
| known When Mr. Morrison prepared and
ISSUED this statement Mr.. Lynch-the bad man
| Lynch-had become Mr.. Morrsons reht-hand
| man and the vice president of this bank. Let
me now ask you if Mr. Lynch had been false to
Mr. Morrison; if Mr.. Lynch had-as Mr.. Morri-
| son wrote the Comptroller in April, 1076-dis-
| covered, before Morrison's connection with the
| bank these defalcatons, and if Lynch had kept
| the knowledge of them back from Mr. Morrison,
| would Mr. Morrison have ever consented to have
Mr.. Lynch as vice president? If Mr.. Davis cousin
| Davis" had gone to Mr.. Lynch by night, and
Mr.. Lynch had deceived him as Davis now
swears he did, do you suppose Mr.. Davis if he
| had any interest in this bank would have ever
| permitted Mr.. Lynch to become its vice presi-
| dent under Mr. Morrison? Not very much Here
| is the statement. want to read it all to you.
| 1t is defendants exhibit Il"
FIRST NATIONAL BANK.
| INDIANAPOLIS, Sept. 8, 1873.
The undersigned offer to the stockholders and de-
positors of this bank comparative statement of its
condition the 9th day of September 1877 and the
| 9th day of September, 1878
In this connection we deem it proper occasion to
refer to and correct the wild and exaggerated
reports put into sensational articles through the daily
| press, concerning the Carey w. Miller defalcation
AT this time 1t is not possible to fix accurately the
| extent of the deficit in the Miller
With the available securities coming in, feel con-
fdent it will be small. We progressing as fast
possible in the work of gathering in and making avail
able the assets turned to the bank to the
Slaughter defalcation These together with the ex-
pected recovery on his official bond and the al.
ready charged out of the profits in May last, his
account will reduce the remaining deficit TO incon-
siderable Mr.. Slaughter left the bank in Sep
TENDER, 1877. and Mr.. Miller in January 1878.
The painful task Of dealing with two defauIting ex
officers of this bank has fallen upon the present
officers in charge of the interests of the stockholders
have DONE and are now doing whatever may be in
power to do to protect the assets and reduce the
and confident of the truth of the declaration
that the losses be borne in these cases will not
affect the responsibility and the increasing usefulness
| of this bank in the slightest degree.
RESOURCES SEPT. 6, 1877.
Loans and discounts $97494o.9l
| U. S. and other bonds 2lSO79 O6
Five per cent. redemp-
| ton fund with U. 5.
Treasurer ;.-.;,--- 2o.51669
Real estate, furniture
and fixtures expens-
and taxes paid. 500 Sc
| U. 5. bonds to secure
circulation $500 600. 90
U. S. bonds to secure
deposits 100 100000
Due from banks and
bankers ...... 1s1.41165
| Cash on hand. --...-. los, 1923 947597.9 so
Total resources..... s2,l94 LOT. Is
LIABILITIES SEPT 6, 1877
| Capital stock Observation-Disclosures. $500 600 90
Surplus fund ACKNOWLEDGEMENTS 2O0,O0000