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

such willfnl msapplication consisted in
cashing. discounting and paying for the use
Company out OF the moneys, funds and
credits of said banking association a large
bills of exchange drawn by and npon vari-
Gus insolvent persons, nrlnS, companies ana
and ana also n paying ~ s, out 11 tine
association a large number OF checks drawn
upon IL by the Indianapolis Cabinet Com
eee ons aor when said Cabinet company
had no funds on deposit in said bank upon
e @Gn 70 wns knoM n to be nsolvent
OF which said moneys, funds and credits
were SO willfully misapplied by the. said
and defraud said banking association. And
Ii Is charged. in substance. in each of said
Coffin and Albert S. Reed did unlawfully.
knowingly and willfully, and with intent
TO injure and defraud said banking associa-
ton. aid and abet the said Theodore p.
Haughey to unlawfully and willfully mis-
apply the moneys, funds and credits Of
charged in said several counts of the in
dictment The counts from the seventeenth
Tho sse from the seventeentf to the twenty
third, inclusive, charge the willful misap-
plication, of the moneys. funds and credits
means just stated to the extent of $4,000;
and those from the twenty-fourth to the
Multiplication sdel Of moneys. finds and cred
its OF the bank to the extent OF $S50,kD to
and for the use and benefit Of the d Ind-
counts of the Indictment, which relate TO
the willful misapplcation of the moneys.
funds and credits of the bank, sixteen in
number charge specific and particular acts
of willful misapplication. They are too nu-
merous TO be analyzed and noticed in de-
have the indictment with you when you
come to deliberate upon your verdict. and
you can then examine the several counts
in the indictment so far as you may find
II necessary TO do so.
MISAPPLICATIONS NOT CRIMINAL.
The willful and criminal misapplication
of the moneys. funds and credits of
tional bank by it's president, as defined in
Section 52o9, does not include every wrong
full or unlawful misapplication of such
moneys, funds or credits. There are some
unlawful misapplications of the moneys,
funds and credits of national bank which
are not made criminal, and which not
included in the statute on which the pres
ent indictment is based. For example, the
statute relating to national banks provides
that the amount borrowed from such an
association by any person, corporation or
company shall at no time exceed one-tenth
of the capital stock of such association
actually paid in and that no such associa-
ton shall make any loan or discount on the
security of its own capital stock, or be
the purchaser or holder of such shares, UNI
less such security or purchase shall be nee
essary to prevent loss q debt previously
contracted; and that no such association
shall purchase or hold real estate except
for certain specified purposes. Now, if the
directors of a national bank should permit
an Individual or company 10 borrow at one
time sum in excess of one-tenth of its
capital stock actually paid in, or should
purchase its own capital stock or real
estate contrary to the provisions of the
law, such acts and eNPen9ltureS would De
unlawful and unauthorized applications of
the funds of such association The RENE
dies provided by the law for such wrong
full expenditures or such unauthorized use
of directors, although made for the account
and benefit of the bank. are a forfeiture
of all the rights, privileges and franchises
of the association, and the personal liza
bility of every director who participated in
or assented to such use of the funds of
the bank, for all damages the association,
it's shareholders or any other persons may
sustain in consequence of such unauthor-
The willful misapplication OF moneys,
funds and credits of a national bank which
is made criminal by the above section of
the statue is a misapplication knowingly
and willfully made by the officer charged,
either for his own use and benefit or for
the use and benefit of some person or
company other than the banking associa-
ton whose moneys, funds or credits are
| misapplying the moneys. funds or credits
of national bank there must be wrong
full appropriation or conversion of the
moneys, funds credits of the bank by
the party charged-in this case the presi-
dent-either to his own use or to the use
of some person company other than the
banking association, with intent to injure
and defraud such association or some other
| person or company. In all the counts OF
defendants are charged with unlawfully
and knowingly aiding and abetting Theo-
dore P Hagghey the president .;,, Of the In
applying the moneys, funds and credits
| of said bank without the authority of its
board of directors, by converting the same
TO the use of the Indianapolis Cabinet Com
pany in the manner already stated, and
han In nrT n % Of
wilful misapplication by Theodore p.
Haughey it is not necessary that he should
| have been previously in the actual posses
| sion of such moneys. funds or credits
der or by virtue of any trust, duty
ployment specially committed to him.
The statute makes IL criminal offenSe
for the president of a national bank to
| wfllfully misapply its assets. Such willful
misappication may be either for his own
company person other than such bank
| ing association. 1t is not necessary TO the
commission of this offense that the officer
of the bank who makes the villful miSap
| plication should derive any personal benefit
| or advantage from the transaction. When
the moneys. funds credits of the bank
are unlawfully taken from its possession
and willfully misapplied by converting
other than the bank with intent to injure
and defraud, the offense described in the
statute has been committed. The criminal
acts charged against Theodore 2. Haughey
| may be done directly and personally by
him, or they may be done indirectly
through the agency of others.
IF THEY ABETTED HAUGHEY.
If Theodore p. Haughey had such con-
| troll, direction and power of manag sment
| by virtue of his relation to the bank as
to direct application of it's funds in
| such manner and under such circum-
| stances as to constitute the offerlse of
| willful misapplication, and he actually
made such direction. or caused such mis-
| application to be made, he is equally
guilty as If it was done by his own hand
| If. therefore, ii is shown by the proof be-
| yond a reasonable doubt that Theodore p
Haughey, as president Of the Indianapolis
| National Bank, did willfully misapply the
| moneys, funds or credits of the bank as
| charged and described in the several
| counts of the indictment relating to that
| subject, by cashing, discounting and ray
| ing for the use and benefit of the Indian
| apolis Cabinet Company. out of the
| moneys, funds and credits of said bank
| a large number of worthless notes, drafts
| and bills OF exchange known to him to be
| worthless, drawn by and upon various in
| solvent persons, firms, companies. and
corporations. and by paying out of the
| moneys. funds and credits OF the bank a
| large number of checks drawn upon il by
| the indianapolis Cabinet Company In
favor of divers persons firms and corpor-
atoms when said cabinet company had no
! funds on deposit against which TO draw