The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-08-19
1t Has 79S.59175 of Bad Paper, of Which
$462. .227 97 Represents the Haughey Con-
Germs and 1857 .32 the Cabinet Works
The Total Book Accounts, Good and
Bad, Amount TO S1,597,35S.75.
lntimations as to Who Will Be Prosecuted
Controller Declares the Sworn State
ment Of July II to be False.
ThE BANKS CONDITION.

ThE BANKS CONDITION.
Synopsis of the Examiners Report Fur.
nished the journal by the Controller.
Controller Eckels late yesterday sfter.
noon decided TO give TO the Journal readers
q synopsis of Examiner Young's report
upon the condition of the Indianapolis
National Bank. The Controller himself
prepared the synopsis. which. though
brief, gives the salient features of the re-
of the suspended bank. from whioh depos-
irors can calculate quite closely all there 10
in store for them. The statement prepared
by the Controller is as follows:
"The report Of Examiner Young relative
to the condition Of the Indianapolis Ma
tional Bank shows the book value of the
assets of the bank to be 81. .597. 35S.76. and
the bad debts therein included to be $685.
59l.75. or this amount. s462. .227.97 was
loaned to the Haugheys and their employees.
some of the employees being lsborers In
their various establishments. wholly with.
out means. The sum of S357. 46.32 was
loaned to the indianapolis Cabinet Com
panv and it's branches. The result of these
loans Is that the capital stock is wiped
out. the surplus gone. and the undivided
profits absorbed. In addition to these
losses there is still deficit of S350.0O0. The
management of the bank seems to have
been placed wholly within the keeping Of
President Haughey. who used the same to
keep his sons and others connected with
shem supplied with money. The directors
wholly neglected their duties. holding
meetings infrequently and apparently Civ.
ing no attention to the affairs of the
bank. The discount committee of three
never discounted nor examined. The re-
port of July IL. made to the Controller
of the Currency. was false. and the makers
thereof are criminally liable. To sum mp
briefly. it seems to be another Maverick
affair. The receiver has been instructed
to take every step necessary TO lay before
the district attorney all facts necessary to
punish all who have been guilty of crimi.
nal violations of the law"
II is not believed at the Office of the Con-
troller of the Currency that the depositors
will ever be paid in full. 1t is not believed
hat "A off hA alr bold dara III
result in half the revenue sufficient to meet
the demands of the depositors. Esti-
mates as to the percentage of the
deposits which will finally be paid
vary all the way from so to IS per cent
Some conservative men who have exam
ined this report believe that the depositors
may finally be paid as much as Is per cent.
of their claims by assessments from the
shareholders. IL is stated, however, that
tho payments upon deposits will be very
slow. and that il may be some years before
the final dividend Is declared to the cred-
itors of the bank. The first dividend.
amounting to q small per cent. of the claims
of the depositors. may be provided for
within the next few weeks. but the later
payments. which will come in installments
of 10 or Is per cent, will follow quite
slowly, as there is much ''slow" and not q
little absolutely bad paper held by the
bank.
Controller Eckels and also the officials at
the Department of Justice decline to make
any statement as to who among the officers
and directors of the Indianapolis National
are to be proceeded against under criminal
laws. 1t was reported yesterday afternoon
at Washington that United States District
Attorney Burke was In the city and was
receiving instructions from the Attorney
general as to procedure against certain
officers of the bank. but the Journal cor
respondent Was unable 10 lind any trace Of
MIR. Burke at the Department of Justice, at
the Treasury Department. or among his
personal friends. He Is still at Jefferson
Vile. 1t is known that he has received
full instructions from the Department Of
, Justice, and also that instructions have
been issued from the Controller of the Cur.
rency relative to procedure against the
officers of the bank. Controller Eckels
stated yesterday that the report made upon
tho condition of the bank. on the 12th OF
last month. and certified by the cashier of
the Indianapolis National. was wholly
false. and that it's certIfcation
was q crime which must be punished.
IL is broadly intimated that there was Q
laxity upon the part of the directors 20
perform their duty. and that pos
sibly they may be called to answer
for their alleged negligence. 1t is said
that tho directors. besides failing TO hold
frequent meetings and keep general su-
pervision over the affairs of the bank. did
not examine into the reports which were
made from time to time. but were sttested
by them. President Hsughey is roundly
scored in official circles at Washington for
the manner in which he has conducted the
affairs of the bank.
Some Guessing at Figures.
The synopsis of the Controller stillleav
the depositors in the dark as to the iiabil-
ities of the bank. According to the statement