The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-12-22
STORY OF THE BANK.
General Surprise at the Failure and
Subsequent Exposures.

subsequent Exposures.
The repreherSible acts and palpable
frauds that led to the Indictment of the
men have been made public since the men,
orabe morning of July &C. when the news
of the collapse of the bank burst upon the
people Of this city. Many there are who
bitterly remember the date. Although the
published statement Of the bank officials
on July 16 was not calculated to reassure
persons whose doubts were doubled by the
uneasy condition of money affairs, there
were few who doubted the ability Of the
Indianapolis National to tide over. The
half hundred struggling depositors that
waited about the banks doors at the hour
of opening made no particular demonstra-
ton when it was announced by placard
that owing to the general financial strin-
gency the steady withdrawal of deposits
and the difficulty of converting securities
into cash the bank was obliged to suspend.
1t was understood that since the suspen-
sion of the Capital National drain on the
funds of the Indianapolis National had be-
gun.
The president, Theodore =. Haughey, on
Monday preceding the disaster. laid before
the clearing house the crippled condition
of the bank. He appealed for help and Sc
cured $4,000 from the local banks The
amount was exhausted by Tuesday night,
and at midnight the aged official knew that
the dawn must precpitate the ruin. At
o'clock Wednesday morning Cashier Rex
ford admitted to a Journal reporter that
the bank must suspend. The news of the
collapse spread rapidly over the city, and
carried with 1t both surprise and alarm.
President Haughey, later in the day, made
a statement in which he said that he was
not aware of the real gravity of the fnan-
cial situation until the Saturday night be-
fore. The depOstors accepted the word of
the president coming from man of I'M
blemished character and integrity and SYM
PATTY was expressed for him upon all sides.
The growing excitement and alarm occa-
stoned by the suspension OF the Haughey
bank was not lessened when it was also
known that the Bank of Commerce had
closed its doors Every bank in the city at
once fortified itself against a heavy run,
but before night the uneasiness was al
layed. Even the depositors in the Indian
apolis National went home with a feeling
of security. Theodore =. Haughey had been
at the head Of the institution since 1869. and
there was expressed unlimited confidence
in his bank. There was tendency TO alb
RAISING condition of affairs. unless, per
chance. he may have been censured for his
shOrt-siCntedneSs.
Just previous to the failure the state
meut had gone abroad that the resources
of the indianapolis National were $2,313,-
1886. This with the alleged belief of the
bank officials that dollar for dollar would
be paid the depOsitors, had the effect Of
further quieting the fears of the patrons
of the insolvent concern 1t was known
that there was some heavy depositors.
II International Typographical Union
claimed TO have $50 600 of their funds tied
up in the bank. The Grand Lodge. of In
diana Odd Fellows Mutual Aid Associa-
ton it was understood owned n snug per
cent. Of the deposits. Four thousand dol
lars OF the funds of the Indianapolis post
office were also in the banks custody.
That the bank had enjoyed the confidence
of the largest enterprises of Indianapolis
for years past was eVinced by the diSaS-
trous failures of several firms which were
unable to secure the amount OF their de-
posits. The arrival of Special Bank EX-
aminer Young was welcomed by the de-
positorS. but that official was noncommit-
TAI. except that he announced that his in
StructionS were TO pay out no cash, but 10
collect all maturing notes. AS yet there
had been no hints of scandal IN the affairs
of the wrecked bank. The SpotleSS life of
the president was held up To the citizens
of Indianapolis by his friends. and 1T was
not even admitted that there had been
miSmanagement, much less dishonesty, in
the operations Of that official
The appointment of Receiver Hawkins on
Aug by the Controller OF the Currency
proved the bank insolvent beyond doubt.
and this was quickly followed by the suit
In the United States Court against the In
dianapolis glue works, OF which Schuyler
brought by the Fourth National Bank, of
New York for $4,000. the amount of
note executed on May %. and Endorsed by
the Indianapolis National Bank. few
days later Receiver Hawkins was called to
Washington, and his return a stupen-
douS exposure was on the eve of an erup-
ton. Rumors Of rascality and surprising
rottenness on the part Of the bank ofIi-
Gals daily grew prevalent. These rumors
were not found 10 be groundless, and as
subsequent events show were clearly verb