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

that per cent. redemption fund, because you,
at Washington, keep the account, and therefore
1t would De improper for me to investigate your
account; you are to attend to that Why did
he use the word fictitious in the March report
You remember that the March ID report was
made under peculiar circumstances. 1t was not
made for the government alone; it was not a
report in the ordinary run of the exam
| iners' business. 1t was a special report,
ordered by the government and committee of
| the stockholders were required to assist in max
ing that report, and the report was to be made to
the stockholders as much as TO the government.
That is the reason 1t became necessary and
sentia in order TO allay all excitement, and dis
trust and trouble among the stockholders, to
| make the statements of the report clear and
act, so that the stockholders would understand
them as we'll as the government. Therefore, the
committee called the loss, shortage in the
redemption fund fictitious" Not because it
| was made for the government, but because it
was made for the stockholders If that report
had been made by the examiner, in his usual
| course of examination, he would have made it the
same way he made the October report; because
| he knew that the government knew just what
was fictitious" about it, as well as he did, But
ne was making this report, and Holiday and
Bates were making this report with him. for the
oeneht of the stockholders, and, therefore, they
| said just what theysdid in regard TO the redemp-
ton fund. The redemption account proper
was kept at Washington. Mr.. Lynch could not
find out here anything about the facts in regard
to It. All he could find out here was what this
of its deposits to the credit of it's redemption
| fund; but he could not tell what the government
claimed against this bank by reason of having
| redeemed circulation sent IN by other banks, or
| by reason of mutiated or bad bills He there
fore states, in the 18th of March report substan-
| TALLY this: Il do not think it would besproper
for me to try to inves ugate further in regard TO
| the 5-per cent fund, because your agency at
| Washington controls that end of the account,
| and you know all about it without investigation
| by me-" This is as nearly the language as [ can
give it without reference to the report, which l
| will not take time to read
| Now, want to call your attention to strange
perversion. either accidentally or purposely made
| by Mr. Shepard with regard to exhibit "BB,"
| one of the most important exhibits in this case.
In his argument he handed you this exhibit
BBl and shook it in your face and said, You
don't find anything of Slaughter 3D."
took down the words they were uttered. Now,
| | wish you would look down in the corner of
| hibit "BB' and see if you don't find anything
| about Slaughter. Don't you see Slaughter"
$3.50. 00O;" ditto two lawsuits, $13, 900, perfect
| ly plain, making up part of the 500, 900
| that Morrison regarded as lost L sup
pose Shepard thought you would not look there.
| Remember, Mr. ketcham admits that "BB'
| was made by Mr. Morrison at early stage of
the Negotiations and Mr. Shepard says you will
not find Slaughter on "BB." but you found it
down III the corner, Slaughter, $50 900; ditto,
| two lawsuits, $l3, 0O0." What two lawsuits? How
did Morrison find out anything about the two
| lawsuits to enable him to write those words?
| We know what those two lawsuits were; one
was the suit l brought against tho bank in
October 1877, for Brown, Blair & Co., and the
| other was the suit brought by his honor Judge
| Walker, in behalf of the Mooresville Bank, for
| So 900. in which Mr. Claypooi afterwards dis
covered another So 00Q At that time there was
no knowledge on the part of anyone that there
| was anything more than So, 800 in the Moores-
| vile affair. The other item was discovered late
in 1878 or in 1879 Those the two lawsuits
that figure as the two largest amounts in what
ftC 1op,I
said the exhibit headed ''Lost"-exhibit ZEE
was made after March 6. Why did he say 500
Why, he says, that the item on it entitled
Salaries, taxes and rents" comes, to
13 is the earliest date ct which those
three items anywhere near $l3, 900.
| There are four items of expense on all these
| daily balance sheets One is taxes. one is rent,
| one is expenses and one is salaries and every
balance sheet those four items are regarded as
simply book keepers asset" No asset, il
fact. but put on the balance sheet to balance off
against earnings until dividend day, and then
it is charged out Every expense that accrues
| between dividend days is put into one of these
four items. The four are always considered
| together as constituting the expense account.
If you add UP those four items-rent, salaries,
| expenses and taXes-you will find they come
to ST., 927 on the 18th of February And now
| let me call your attention to another fact: He
says exhibit 'EE' made as late as March 6.
1 want to show you another thing. Look at these
is headed Lost" and on It, the fourth item
from the top. you will find the words Bills, say
one half, S., 800" Now look on ''BB" and you will
find these TS o s Loo Noh bills nots
another item on exhibit ZEE" Under the
head of miscellaneous" you find $1,000 Now
look on exhibit 'BB" again, and you will see just
where that So, 600 comes from. That is the
reason it is called miscellaneous" These COM
parsons show as clearly as two and two make
four that these are companion pieces; that one
was made as summary OF the other. an in
| complete summary at that Exhibit ''EEn was
never finished. The word judgments" appears
| twice in it, but no amount is given either time.
| Now there is another strange circumstance con-
| nected with these two exhibits 'BB" and ZEE"
On both, the amount of bills" is the same, ST.
600 On the 9th day of March, the day they say
! exhibit "EE' was made, we find the amount of
bills was SIG, $40. 65-that is not $4,000 Now
| let me show you that on the daily balance sheet
| of the 18th day of February 1878, the amount of
| "bls" is SIS, 902, hence Morrison did not get
the amount named on these exhibits from that
daily balance sheet Right in that connection l
want to call your attention to the fact that John
| c. New testified clearly that his best recollection
| is that Mr.. Morrison took away the daily bal
| ance sheet the SECOND time they went to the
| room, on East Washington street. to examine
| the assets-not the first time. l was little as
tonished at his recollection and asked him sew
eral questions with regard to it, and he stated
that his best impression Is that Mr.. Morrison,
the first day, did not take away with him the
daily balance sheet, and that he did take it
away the second day they examined the
assets. Now. gentlemen. the first day
| New and Morrison went to the on
East Washington street and examined the as
sets the 18th or 14th of February 1873. On
looking at the daily balance-sheets for those two
days, we find the amount Of bills was 81, OS5.
Now, 'tsay onehalf, SIS. 5O0,p and we have Just
what the exhibits "BB" and ZEE" contain
Now, gentlemen, those two statements show
concusively that this exhibit 'BB" as Mr.
Ketcham admits, was made by Mr.. Morrison
early in the negotiations and that this exhibit
| "EE,' headed Lost" was made at very nearly
| the same date, and was largely made from the
items found on exhibit "BB."
If this exhibit ZEE" was made on the 9th of
| March. what sense would there be in this part of
| IL IsNhat i+v2 D.,