The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-01-28
MR.. PATTISON'S BIG DEFICIT.
The City Asked to Rebate the Amount
of Money Lost in the Broken Banks,
In Which Case the Bondsmen Guarantee the
Payment of the Balance-The Statement.
Made to the Council Finance Committee.

The deficit of ex.City Treasurer Pattison was
again considered by the financial committees of
the Council and Board of Aldermen. In re-
Spouse to the urgent invitation extended through
the city attorney, some of the bondsmen were
there either in person or by attorney. n. S. By
ram Otto Hasselman and John J. Cooper were
the only three of the sureties present,
but Judge Claypool and A. G.
Harris appeared on behalf of others.
After the meeting was organized, with Mayor
Denny in the chair, no one seemed ready to
speak. 1t had been expected that the bondsmen
would present the talked-of agreement signed
by every one Of them. and that little would be
done, except to arrange the details Of the
wished-for extension. But when a few minutes
of silence elapsed Judge Claypool said he ap-
peared for some of the bondsmen and spoke for
all of them. He did not know how definite the
proposition he had in view could be made at
present. Every one present had, no doubt.
heard of Mr.. Pattison's giving over his property
in trust for the city; but, even with this,
the securities did not have a comfortable
position in regard to the bond. Only four, per-
haps five, of the sureties out OF the eleven be
counted on, and it may be that some of the five
can't pay much. Even at the worst these few
are entitled to consideration, mercy and tender
ness. 1t is best to deal frankly, and he spoke in
that spirit. The sureties have been advised, and
they have strong convictions thereon, that it is
doubtful if the bond can be enforced against
them. The bond has not been acknowledged,
and other questions relating to it arise Law
suits, as every one knows. have two sides,
nd vph ha fnr inn will
be. It is best to avoid suit when the interests
of both sides may for long time be placed in
doubt and considering the deleterious effects
that would probably follow For this reason the
bondsmen propose that. if the city will rebate
the amounts lost in Fletcher's and Harrson's
banks, the bondsmen will as speedily as possible
settle the rest. It may not be at once, i'll cash,
but the debt will be put in such shape that it
will be perfectly safe. The sureties will ask the
city to allow them to take the property Mr.. Pat
tiSou has, or is about to turn over to a trustee
Mr.. Thalman-Do you know what the trust
comprehends!
Judge Claypool-I understand that it includes
everything Mr.. Pattison has-everything of
value pertaining to his property interests. The
bondsmen will, at best. suffer. If the city takes
this property, It may, under the most favorable
conditions, not realize more than SIS, 900 out Of
it. Besides, is there not a little equity in con-
sidering that of the eleven sureties only four
or Ave can pay? This is the only proposition
are able to present fit is not accepted, litiga-
ton must follow. They do not come to you in a
threatening way. but as any body Of citizens
would do who have fair business transaction
in hand"
Mr. Pierson-Do you know what Mr.. Pattison's
tile-works interests amount to?
Judge Claypool-He bought claims against the
works and had taken judgments on some of
them. Their value depended upon what the
Supreme Court would do as to the question
lating to the validity of the tile-works receiver
ship.
Mr. Harris said that he had but little more to
say in addition to what Judge Claypool had pre-
scented ted. There was view Of tbs
Cured to every one present. The
law required bond of the treasurer but the
policy of the city has been to compel the treas
urer to use the city's money and get interest on
Harrison's Bank lost AS other money was, be-
cause the depositors had confidence in It, Hence
neither Mr.. Pattison nor his sureties can be
charged with neglect 1t was misfortune and
came as cyclone storm, or lightning would in
destroying property. The bond was given by
eleven persons. Mr.. Browning is one of them, but
there is no hope in his instance; 80
with others; and the burden must be borne by
few. This is something no one could anticipate.
The taxpayers don't want lawsuit Many of
want it settled in business way, and this prop
osition is to that end. Mr.. Pattison has turned
over everything to the trusteeship. He has
nothing left; but he said to-day if it became
Mr.. Pattison's position depended greatly upon
the Supreme Court decision as to
the validity of the tile works re-
ownership. What that decision will
be no one can tell. 1t would come to such pass
that only men of magnificent financial position
could take responsible Office and give the re-
ouired bond. have always found the first offer
to be the best, and that litigation always less
ened its value.
Mr.. Thalman said the proposition was so diff
ferent from the one reported that that he
did not know what to think. Before this
he thought everything was in shape
for an early settlement, when the
city would get every dollar OF its
claim and leave Mr.. Pattison something. Now
the proposition is to settle for about 60 cents on
the dollar Had Mr.. Pattison come in, supported
by his bondsmen, announcing that he had turned
over everything in trust for the city, that would
have been business transac ton. The bondsmen
must come forward and admit that they owe the
debt. and are ready to assist Mr.. Pattson in his
fireworks plan. by which no one of the suretes
he believed, would have to pay dollar. He was
opposed to litigation, if the matter could be
settled in any other way. He willing to
grant an extension. He was not prepared to
take GO cents on the dollar, but favored time and
leniency. However, he wanted the affair in an
other shape.
Mr.. Hawkins, in the course of remarks with
which the public are familiar. explained that the
mortgage on the Parker Block, tile works, real
estate and building, and 500 900 other property,
amounted to 500, 900. There were $206 900 in
claims against the works. Mr.. Pattison con-
trolled $40 600 in judgments and $15 900 in other
claims against the works. Twenty eight thou
sand dollars of his claim had precedence, and his
balance with the claim of the Nauch Chunk
bank ranked next He said if Mr.. Pattson and
his bondsmen arc compelled TO pay the bank
losses, it would be the first instance of the kind
in this county. The township trustees had been
relieved by law guardians and administrators
had been relieved, and the treasurers of many
corporate bodies were not compelled to account
for their losses by these banks.
The committee then went into executive ses-
sion, and, after consultation of half hours du-
ration, decided to meet again Friday evening to
receive the proposition of the bondsmen in writ
ing. If it is not accepted, the committee will
prepare a proposition in turn and give the bonds