The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-12-27
THE NET is DRAWN,
And in 1t Are Wripqlinu
Seven Bank Wreckers.
The Grand Jury Finally
Concludes Its Work.
indictments Are Returned
Against Seven Men.
THE TRUTH Is LAID BARE.
The Jury Uuravels the Sys-
temauc Looting Scheme
And Locates Criminality AT
Almost Every Turn.
Indictments Are Returned
Against Seven Men.
THE TRUTH IS LAID BARE.
The Jury Uuravels the Sys-
tematic Looting Scheme
And Locates Criminelity At
Almost Every Turn
r. 3. r. Peirce and Cashier
Rexford Under Arrest.

The Federal Grand Jury Returns In
dfctment- Against the HauEheys,
the Collins. BOOkkeeper Reed, IL. IL.
Il. Pcirce and Ex-Cashier Rexford-
The Latter Two when Arrested Inn
mcdiateIy Give Bond Theodore
Haushcy Indicted on Nearly Two
Hundred Counts-Somc Surprise Oc-
casioned by the Indictment of
PIERCE and RexfOrd-The Grand
Jury Dismissed by the Judge-Iis-
tory of the Bank Case-TnII<s with
Receiver Hawkins and Expert
Hayes.
The federal grand jury concluded its
work Thursday and was formally dis
charged by Judge Baker. In addition
70 the FIVE men, Theodore p. Haugn-
oy. Schuyler G. Haughey. Percival b.
Coffin, Francis 4. Coffin and Albert =
Reed. who have been under bond since
shortly after the failure Of the bank,
two more arrests were made Thursday.
The persons arrested were Robert Z.
u. PIERCE and Edwin Z. ReXford. The
warrants We're issued at about o'clock,
and shortly after O'Clock United States
Marshal Hawkins and Deputy United
States Marshal John Foley started out
in search Of their men. A telephone
message had been received from Otto
Frenzei at the Merchants national
bank stating that RexfOrd was there
and wanted 10 know if he had been in
dicted. Marshal Hawkins went immedi-
ately to the bank and placed his man
under arrest. Rexford gave continued
bond in the sum of $1,000 with the Nor
man S. Byram, Volney T. Malott, Otto
N. Frenzel, Fred FahnIey and Stoughton
j. Fletcher as sureties.
Deputy Foley found Mr.. Peirce at
about the same time in his office at 171A
S. Meridian-st. He expressed great sur
prise that he should have been indicted,
saying that it was altogether unexpected.
John s. Lazarus was called in and i'm
mediately signed a bond for his APP
rearance AT the trial. The one surety
was deemed sufficient in the case, as
Lazarus fled an affidavit setting forth
that he owned more than ten thousand
dollars worth of real estate and was
worth 500 over and above his lawful
exemptions.
Seven men are now under bond for
the wrecking of the bank. The other
five who had given bond at the time
OF their arrest. were not required 10
make new bonds Thursday, but Judge
Baker set Jan. II as the date when
new bonds must be furnished. 1t is sup
posed that no more than the seven in
dictments were returned. There were no
other warrants sworn out Thursday and
II others are to be arrested it was not
apparently known BY the officers who
have that to do.
Condition of Affairs.
The indianapolis national banks af-
fairs are now in a definite condition.
With the rlen charged with wrecking
st under bond for appearance before
the United States court for trial the
public and the unfortunate people who
We're caught in the failure are re-
lieved Of the suspense with which
they have been awaiting the develop
Iacnts in the case. Since the 18th day
OF last July: when the bank failed 10
open its doors FOR business. there has
hardly beer a week passed without
some new exposure, though ev-
cry effort has been made to
keep the facts from the public and from
the newspapers until after the grand
jury should have considered the case.
- was at first supposed that the
statement. posted on the door signed by
the president OF the bank. that the
bank had suspended temporarily on ac-
count ~ the stringency Of the times. was
true. so great was the confidence in the
man but 10y degrees the rottenness of
tie institution crept into public
print. and after cursory examina ton
b. Bank Examiner Young the comp
Iolier OF currency saw fit to appoint a
receiver and on the 4th day of August
Edward Hawkins gave bond and quail
fed as such receiver. The appointment
o. the receiver settled any doubt about
the sOlyency Of the bank, as it is not
the policy of the government to appoint
q receiver unless 10 wind up the bust
ness OF a bank
SIGH, and day did the receiver and
TIE examiner work to straighten out
ne tangled affairs OF the now apparent
~ looted bank. and IN a short time had
gained a sufficient amount of informa-
tioa To Justify the arrest of the first five
named above. This occurred Aug. Il.
II was then supposed that Edward L.
Sexford would not be indicted. as the
condition of affairs seemed to show that
while he was cashier OF the bank in
name he was really little more than
c.erk. as were al the other employees IN
TIE bank. Haugney attended to making
AL loans and discounts and simply
called upon his cashier to attest any
document which the law required.
Matters went on with an occasional
leak or exposure OF some Unlooked-for
development Of the Haughey methods,
until the meeting OF the grand jury on
the first Monday in November. II i'm
nedia.ely took Up the bank investea-
tfOn. and with intervals Of recess has
been engaged thereon ever since. COM
plotting its work Thursday afternoon IT
was one OF the longest sessions Of that
body ever held in this district and the
members Of the jury were publicly COM
plimented By Judge Baker for the pa
thence and faithfulness with which they
performed their work II after he
had examined the indictments TO see
that they were properly signed by the
foreman OF the jury that Judge Baker
said to the jury:
"xOsx sabo<z hsss ssan rRzeh more