The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-09-12
MIR. STANTON'S INVESTIGATION.
Result of an Inquiry Made by a Prominent
New York Banker.

Result of an Inquiry Made by Prominent
New York Banker.
A few months ago the firm of Coffin & Stan
ton, brokers. New York city, bought l,600, 900
of Indiana State bonds They deal largely in
Indiana securities of various kinds and are
better acquainted with the financial matters of
this States, county and township affairs than
perhaps are any brokers in the country. Mr..
Stanton is in the city, having just returned from
visiting a number of counties from which town
ship orders were issued, and has given time and
attention to the scrutiny of affairs, his nvesti-
cations having been for the purpose of protecting
his customers as far as he was able He
believes that the warrants his firm have handled
were given in exchange for school supplies
actually bought and delivered. In an interview,
yesterday, ne said
"Our attention first called to these securi-
ties about the 1st of last June by advertisements,
which another firm of New York brokers had
put in the papers, for their sale. Before hand
ling them We took every precaution to see that
they were genuine. We wrote to all national
banks in Indiana that were located near the
townships which were issuing the warrants, and
from them we received word that they were
valid obligations, which were in common circu-
lation and usually promptly paid Then we
consulted three of the leading legal firms of the
State, and from them received written opinions
that the orders were all right. Not satisfied
with this, we got an opinion from our New York
attorneys to the effect, and in almost every
case where We made sales the purchasers took
the same trouble to verify the genuineness of the
orders. In addition to this we had certificates
value of the taxable property of
the various townships, the indebtedness,
tax levy, etc. Our connection with the sale of
the warrants was simply as brokers, and all we
handled we got from reputable and responsible
brokers in Chicago, and simply placed them for
them. In fact, l had such great confidence in
validity that urged relative to purchase $l5.-
900 of them and myself bought 5000 as per-
sonal investment"
'How were your suspicious aroused that they
were not all rightl"
'It was in this way" replied Mr.. Stanton
After we had disposed of all that we had on
hand found out that some of the townships had
apparently issued more warrants than the legal
limit would permit, and after that, when we re-
ceived any offers or consignnents of them, they
were sent directly to Judge Viehe, of Vincennes
our attorney, who was instructed to personally
see the various trustees, assure himself that the
orders were issued for supplies legitimately
bought and delivered, and after that whenever
we offered to sell any it was with the assurance
that the transaction was not to be consummated
until Mr.. Viehe had indorsed each
certificate. Well, when he went around
to see the trustees he had difficulty in
finding some of them, and Others
whom he did find, eyaded his questions or did
not give satisfactory answers. We then declined
to take any more of the stuff, and have not sold
any since 1t was this estigations by Judge
Vieke for us that first caused the Dayiess county
trustees to become nervous and eventually to
run off to Canada. Further developments
showed that there were no more orders on the
market which could be properly certified to.
came directly to Chicago and there found cut
that jnst few days before they fed, Brown,
Clark and Gr:msey, the abscondng trustees.
had been there at the same time, and had
offered $4,000 of the stuff for sale giving it
their personal Endorsement / Fever saw Mr.
Pollard and never had any dealings with him of
any kind. In selling these warrants, as brokers'
of course we did not guarantee them, but simply
stated the facts as understood them to exist.
As An additional precautlon to those already
taken, we sent these orders to the various