The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-04-11
THE OPENING STATEMENTS.
Lawyers for the Prosecution and De-
fense Tell What They VIII show.

fense Tell What They VIII show.
Upon opening court in the afternoon
Judge Baker had the witnesses who did
not appear in the morning summoned for
instructions. In ordering them to refrain
from discussing the case he said they
were at liberty to answer questions that
might be asked by the attorneys in the
case outside of the court room. Mr. Sat-
terwhite. one of the directors in the de-
funct bank. came in after the crowd of
witnesses had retired and the Instructions
were repeated to him. The court then
asked if the prosecution was ready to
make its opening statement, and Mr.. Corr
stepped forward to address the jury.
Mr.. Corr began in quiet conversational
way to tell the jury what the government
proposed to show. He recalled the failure
of the indianapolis National Bank on July
"A, 1888, and described the investigation by
the government afterwards, wherein it was
found that about $4,000 of worthless paper
given by the defendants had been listed as
assets of the institution. All this paper
had been given either by the defendants
or by people connected in some capacity
with the Indianapolis Cabinet Company
For this paper, money had been paid out
by the bank, and the government insisted
and would show, that the defendants aided
and abetted President Haughey in making
false entries the book in order to un-
lawfully obtain this immense sum. Many
of the counts of the indictment charged
the defendants with aiding and abetting
the president in willfully misapplying the
funds of the institution. Other counts
charged them with aiding and abetting the
president 10 make false reports to the Con-
troller of the Currency. The federal law
requires at least five reports year of a
national banks condition in order that the
government may have proper supervision
over this class of banks. The story con-
Meeting the defendants with the bank rot
tennesS was long one, said Mr.. Corr, going
back as far as eight or ten years.
During the presentation of the govern
ments side Of the case, number of new
facts were brought out, facts that have es-
capped the public prints. The government
promised to show that, as far back as
drew more than the law allows any one
firm to draw from national bank whose
capital stock is only 100000. The company
was. in that year. indebted to the bank
stock of the bank. This became patent in
the report filed with the Controller at
dent Haughey that the national banking
law had been viola ted. Mr.. Haughey prom
ised TO see that the amount of the indebt-
edness was at once reduced and, upon this
promise, the Controller permitted the bank
to continue it's business Instead of de
debtedness steadily increased. The cabinet
company organized a number OF branch
concerns Mr. Corr stated, for the purpose
solely of bleeding the bank more freely and
to cover the violations OF the banking law.
These branch concerns were represented as
don, one In Boston, another In New YORK
and more in other cities. The London
branch was known as the Indianapolis
Desk Company that in Boston as the In
dence would show that whenever the cabinet
company had borrowed all that 1t could
obtain it would ,b 1gt me and @; Grg5nfe sSe fer an
there We're found in the bank, among the
other worthless notes, two obligations OF
Francis and Percival Cofnn, separately
signed and for $21, 600 and S27, 900 respective
ly Not a cent of the stock in the New
York branch had been paid in, said Mr..
Corr unless S175 in furniture could be con-
sdered as an equivalent for stock. The
capital stock consisted entirely OF good
will. and yet, in less than three months
after the company was alleged 10 De organ
ized II obtained SOL 900 from the bank. One
company was organized and given an office
in the building of the cabinet company
This was the United States Cabinet Com
pany organized on Feb. q, 1872 with an
alleged capital stock of 5000. In May of
the same year this new company nau thou-
sands Of dollars in paper in the bank A
scheme of the Collins to give substance 10
the shadow of a claim Of capital stock was
to sell to one Of the people connected with
the concern a patent for 81 in October and
then sell the patent to the new company
for $500 2. few months later. giving the
impression that the new company nad vaiui artd
Panel Company was organized and money
obtained in a somewhat similar manner
Both of these concerns were insolvent al
bank.
The concern in Boston was known TO the
world as a branch OF the company at IN
dianapolis although among themselves the
defendants had resolved that the concern
be known as the Indiana FURNITURE COM
pany One of the defendants went TO Lon
don i'm 1890 and tried TO sell that branch
there He wrote 10 President Haughey
from London telling him that he Cthe de-
fendanO was trying to dispose of the prop
erty so as to relieve the bank of the heavy
loan or at least part OF It,
NOTES ON THE FAMILY.
The defendants the government would
show bought the plant of the Wootten Dssh
| Company at Richmond. Ind, and changed
the name TO the wootten Office Desk Com
pany The defendant (Coffin) did not pay a
cent for this company. giving a note fol
| $500 which was never paid. This concern
| at Richmond owed the bank $4,000 wher
| the crash came. and although the Coffin:
! never paid FOR the plant, they used 1t tC
| borrow this large sum from the bank. The
! entire assets OF the Richmond plant are no
| worth over $4,000. The Boston branch con
/ tanned assets worth several thousand dol
lars at the time OF the banks failure anc
the New York concern contained assets
| worth about $1,000. The bank failed or
July q. and on Aug. the cabinet com
pany made an assignment. The day th'
| assignment was made the company sol
/ the Boston branch To a boOkkesDer VIII.
| had been earning about Sl6 week in tn,
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