The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-09-05
HOW TOWNSHIP is ROBBED
The Affairs Of Steele, Washington and
Barr Townships, DaviesS County.
What Hon. Stanton ]. Peelle Has Learned of
the Manner in Which Trustees Have
Been Managing Their Offices.
Special TO the Indianapolis Journal.

WASHINGTON, Ind, Sept 4.-StartllDg rumors
regarding the conduct Of two township trustees
of this county have set the people of this city
and vicinity wild with apprehension and excite
ment. The trustees alleged to be involved are
John Grimsley, trustee of Steele township, and
Charles Il. Brown, trustee Of Washington town
ship. Washington, in which this city is stu
ated, is the largest and wealthiest township in
the county. It is impossible at this writing to
obtain a correct account OF the trouble, but
from the hundreds of flying rumors that are
abroad your correspondent has been able to
construct the following story of the matter,
which is probably about true:
Grimsley has been absent for one month, and
no one is able to locate him. Brown has been
away from the city for about the same length of
time, excepting a few hours spent here on
Monday Of last week. 1t is reported this week
that both have gone to Canada to escape trouble.
1t is alleged that the wife of Trustee Brown
received a letter a couple of days ago that bore
the post mark of a town in Canada. On Wednes-
day night she left the city on an Ohio & Missis-
sipi train with her infant son, and there is little
doubt that she is now on her way to join her
husband on tLe safe side of the Canadian border.
A superficial Investigation of the books of the
two townships reveals the fact that the current
funds are intact. The trouble is said to be that
the officers have been issuing an unlimited guam
tity of township orders and notes, which have
been converted into money through various
channels, the trustees getting a liberal slice of
the amounts realized. Large numbers of orders
have been issued to pay for articles for use in
the schools and on the roads. These orders were
drawn for sums largely in excess of the value of
the articles, some of them, it is claimed, being
sold for a profit of more than 1000
per cent. These orders were given to unprinci-
pied school furniture firms, who paid the trus-
tees a very large share of the amount. In addi-
ton to the order business it is alleged that the
trustees have been issuing notes without any
consideration whatever, which were negotiated
through brokers at Chicago and Indianapolis,
the trustees receiving the entire amount real.
lied, less, of course, the brokers' commission.
1t is impossible to get at the aggregate amount
of township notes and orders that have been
issued. Estimates place the amount at 5000, 900
in the two townships, and there is no doubt
shat the figures are between $75, 900 and
tie amount named above. These ugly rumors
affecting Brown and Grimsley, and other trus-
tees of this county, have been on foot ever since
a visit was made to this city a few weeks ago by
Hon. Stanton j. Peelle, who was here looking
after some township paper in which a client of
his was interested. The national bank in this
city has been flooded with inquiries of late rs to
the value of orders and notes on the townships
of Barr, Washington and Steele. The trustee
of Barr hes been implicated with the
others, but he is still at home. Browns
friends say he is absent on business,
and will show up before long. but their story is
not credited. Mr.. Brown has always borne the
best Of regulations for honesty and s~obriety.
He is a young man and well connected here.
He is quite popular, and was reelected last year
in a close township, by a majority of nearly 500
votes. No one seems to know anything about
Grimsley. He disappeared suddenly and has
not been heard from since.
LATER.-The county commissioners met to-
day and removed the three levanting trustees,
Charles III. Brown, of Washington township;
John Grimsly, of Steele, and John Clarke, of
Barr. New trustees were then appointed AS
follows: James A. Swick, James Heirbaugh and
James HI. Tanning. An investigation will! be
begun Immediately. 1t is stated that $20,0 600 of
Washington township paper is held by parties in
Indianapolis. The Jennings county bank has
So, 900, and large amounts have been disposed of
through Chicago brokers. Charles FL. Brown is
supposed to have in his possession about fifty
thousand dollars in bonds, cash, and other
valuables. A prominent Indianapolis jeweler
holds 81, 500 in orders, for which, it is said, he
traded diamond rings, and Brown is known to
have had a large quantity of jewelry Of this sort.
2. =. kI>G = 1A4:.~kz - doom mn =
divided among the three townships, is pretty
near correct. Prominent attorneys are of the
opinion that the payment of fraudulent notes
and orders can be successfully contested.
A Journal reporter read the foregoing special
to Mr.. Peelle and then asked him what was the
full scope of his visit to DaviesS county. Il
simply went down there" said Mr.. Peelle, ''to
inquire for a client of mine as to the amount of
Indebtedness existing against the three town
ships, with q view to ascertaining whether or
not I could safely advise a purchase of the
or~ders-whether they would probably be paid
when due"
"What information did you obtaing,
SIT was somewhat meager, but 1 returned
under the impression, from what I did learn.
that the constitutional limit of 2 per cent on the
assessed valuation had not been exceeded by the
trustees IN the three townships, but / was salts
fed that the Indebtedness, considering the valu-
alton of the property in the townships, together
with the levy made by the township trustees,
could not possibly be paid, as the Indebtedness
matured without favoritism on the part of the
trustees. From the best information l could
obtain, the Indebtedness of these townships was
on account of supplies purchased largely from
Chicago houses. | went into other counties
than Daviess, and | think from what I could
learn that certain school furniture supply houses |
in the city of Chicago have for years been sell |
ing large amounts of furniture and supplies to
trustees in nearly every county in Indiana, TAX
ing the obligations of the townships therefor.
In some instances / learn that articles were sold
for many times their value. / am inclined to
the opinion that some of the township trustees
have shared the commissions which were paid to
agents for making the sales.
What is there in the report that town