The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-05-27


be sufficient TO make the act or acts his
own, and 10 constitute the cffense De-
scribed in the statute. II an h snt sSow was
that a certain sum of money had teen
deposited in the bank TO the credit or
some person or corporation when IN trltn
and in fact no such deposit had been
made and such credit actually existed,
such entry II made with the intent 70 de-
ceive or defraud. would constitute a false
entry. So. If commercial paper known to
be valueless was knowingly and purposeiy
received and accepted by said Haughey
ity from its board of directors as solvent
commercial paper. he knowing IL TO be
valueless. and the person or company 50
rection be given cash credit en-
the books of the bank for the face
amount, of such vaiueless papr
such an entry Of credit would con-
stitute~a false entry. If the president of
rational bank in the sone.t exe,cise OF
out fraud. makes loans or discounts for
the actual or supposed adv2ntage or the
bank, there is no criminal liability. al-
though the transaction may be injndicious
and unsafe, and actually result in loss or
damage to the bank. But III SUCH oans
or discounts are made in bad faith for
other person or company, and not there
fore in the honest exercise of official dis
erection. the officer making them passes
the line dividing honesty and dishonesty
and his action is criminal and punishable
under the statute IL done with intent u
iniure defraud the banking association
Theodore p. Haughey, between the meet
ings of the board of directors had authori-
ty. by virtue of his official position as pres
ident of the bank, and by virtue Of the au-
thority given him by the board of direc-
tors to make bona fide loans of the banks
funds and to make discounts of paper Of
fered TO the bank for discount. and he had
authority to have the amounts of such
loans and discounts placed TO the credit Of
the borrower. But this authority to make
iran or me- inn 1oan and fS fa,-
tended only TO legitimate trans ctions. hon.
estly intended for the benefit of the bank
Loans or discounts made on credits given
in bad faith for the purpose of defrauding
the bank or to enable him TO convert the
moneys, funds or credits of the bank to
the use and benefit of another would be an
unlawful and criminal exercise Of authori-
ty. The form of a loan the giving of
credit upon the books of the bank may be
adopted as a cover and pretense TO conceal
a fraudulent transaction; and, when re-
sorted to for that purpose and the mon
eys, funds or credits of the bank are with
drawn by such means and converted to the
use of another person or company whereby
injury results to the bank he is guilty Of
criminal act
FORMS OF FICTITIOUS CREDIT.
A false and fictitious credit given to any
one on the books of the bank is, in judg-
ment of law, no credit at all. 1t confers no
rights in favor of the party to whom it is
given, nor does it impose any obligations
N.
action may take, the methods adopted to
reach the fraudulent ends, or the instru-
mentalities employed. whether consisting of
one act, a succession of acts, to accomp-
lish the fraudulent purpose. in no way
changes or alters the character of the act
The law looks through all forms, devices or
contrivances to the results No form of pa
per, and no system of bookkeeping, how
ever cunningly devised, can sanctify fraud
riV ictf ions
or fraudulent credits were given upon the
books of the bank 10 the Indianapolis Cabi-
net Company, it thereby acquired no right
to the funds of the bank represented by
such credits. A credit upon the books of
the bank to be valid and create the rela-
ton of creditor and debtor between the
indianapolis Cabinet Company and the
bank, must represent value received by the
bank in the shape of money, or what is
honestly deemed TO be the equivalent of
money. 1t must represent a bona fde in
debtedness of the bank. Such a credit on
the books of the bank. obtained by the un-
authorized acceptance of valueleSS paper,
or by credits fraudulently given, without
some valid consideration passing to the
bank at the time. is no credit in a legal
sense, and when the funds of the bank are
drawn out upon such credits, they are
wrongfully obtained.
Therefore if the Indianapolis Cabinet
Company obtained credit upon the books of
the bank by making and negotiating to it
notes, drafts or other paper which Haughey
and the defendants knew did not represent
actual values with intent to defraud the
bank, such credits gave the cabinet com
pany no right to moneys represented by
such credits Before you can find Theodore
p, Haughey guilty charged in the in
dictment, of wilful misapplicaton of the
moneys, funds and credits of the bank. or
of making or causing to be made false en-
tries in the books of the bank, you must
be satisfied that such willful msapplica-
ton and such false entries were made
charged, with intent TO injure and defraud
the bank or some officer or person as al
legged in the Indictment; and before you
find he dnfD don re crTrilf Sf
be satisfied that they unlawfully and
knowingly, with like intent. aided and
causing to be made such willfu misappli-
cations, and in making or in causing to
be made such false entries.
THE BRANCH CONCERNS.
If you should find from the evidence that
articles of association were from time to
time filed by the defendants in accordance
with the statutes of the State of Indiana
for the creation of corporations within such
State under the statute of the State, pro-
viding for the Incorporation Of manufacture
ing companies, then, as matter of law, such
corporations were thereby created, even
though you should find that nothing was
paid into the treasury of such corporation
as capital stock. and on such facts such
corporation would not be fictitious person.
But If such corporations were organized by
the defendants not for the purpose or le-
mentalities for the criminal purpose OF
wrongfully and unlawfully obtaining money
| from the Indianapolis National Bank for the
| use ard benefit of the Indianapolis Cabinet
| Company, then the fact that such corpora
| tons were organized with legal formality
| will not aid the defendants.
BY the statute of lmita tions the defend
| ants cannot be convicted of any OF the
| offense charged unless the same are shown
| to have been committed within the three
years preceding the time OF the nndinS
| and return of the indictment, which was on
| the list day of December, 1893.
Every person is presumed 10 Intend the
| natural and ordinary consequence OF MS
| own acts Hence, If the natural and or
binary consequences Of the acts or Haugn-
| ey and the defendants, as shown by the
| evidence were to injure and defraud the
| bank. or to deceive and defraud any OIL
| Ger of the bank, you will be authorized 10
| find that such was their intent, even
| though they may have been injured there
| by. i do not wish to be understood as
| meaning that the intent 10 lnJure,
deceive or defraud is concinsiveiy
| established by the simple proof OF
| the doing of the prohibited acts
| which result in injury. What ! do
| mean is this: That when the prohibited
/ acts are knowingly and Intentionally done,
] and their natural and legitimate conse-
| quences are to produce injury 10 the pank
| or TO benefit the wroagdoer. the intent 70
| injure. deceive or defraud is thereby SUM-
| GENTLY established to cast on the accused
the burden of showing that their purpose
| was lawful and their acts legitimate.
The Indictment contains charges that di-