The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-05-23
A. s. REED AGAIN.
He at Least Remembers Some OF the
transactions.


Transactions.
Upon the reconvening of the court, yes
terday morning. A. S. Reed was still on
the stand. He said he made a daily report
of the business to F. A. Coffin. showing all
goods shipped and ready for shipment,
amount of collections and deposits, and con-
dition of the bank accounts. He said he first
learned that he held shares in the Wooten
company afte. the failure of the cabinet
company when some certificates of stock
were handed him. but he did not know what
number of shares He said he was car
ried upon the pay roll. He denied having
anything to do with sending the two items
TO Chicago for collection after the failure
of the bank. As TO why the insurance
check, which was one of these items, was
not entered upon the date of receipt, he
said he frequently held collections for sew
eral days and deposited them upon the day
he drew the pay roll check. This was done
under instructions, and was the universal
custom. He knew nothing of the attempt
TO organize the Indianapolis Cabinet COM
pany, limited of London. He knew nothing
definite about the sales of the Boston and
New York branches. He saw very little OF
the correspondence. save that relating 10
collections, which was turned over to him.
He knew nothing of the condition of the
bank as to its solvency, and he had no
intention to aid or abet Haughey in de
ceivtng any agent OF the government, de-
frauding the bank or aiding him in max
Ing any false entry or report. The witness
said he had the utmost confidence in both
Mr.. Coffin and HaugRey.
Mr. Winter then asked the witness a few
questions on the accounts. He turned to
the accounts of the American Desk ana
Seating Company on the cabinet company S
fl st.x
shipments to the Chicago company during
the months of June and July, and showed
that the notes. aggregating $2,9sl.S6, which
were sent to the cabinet company on July
90 1898, had been sent in settlement of the
June shipments. He said the returned
drafts taken up at the time of the deposit
of the $4,000 were returned drafts which
had been drawn against value upon GUS
toners. Some of them were afterwards paid
drafts drawn and the proceeds were depos-
tied in the bank. The entries relating to
the bonds were then taken up, and the wit
ness said that at the time of the entry
of the last issue of bonus, $4,000 in the
bills payable account were transferred TO
the bond account. In answer to questions
by the court he said the effect of these
entries upon the general books was to
show that the bills payable had been paid
by the bonds. He added. i'm explanation of
kept, in one of which was carried the bills
payable secured by the bonds. and in the
other all other bills payable.
examination by Mr. Burke. The witness
was asked why notes and drafts were car
ried, on the books of the cabinet company
as bonds, and answered because he had
been told that bonds to secure this paper
had been deposited with the bank
Mr. Burke-These two bills payable books
were the complete records of the bills pay
able of the cabinet company. were they
not?
Witness-Yes. sir
Mr. Burke-Now turn TO those books and
show us the entry of that $4,000.
Witness referring to the books)-It was
II was then shown that on the page pre-
ceding the entry OF this $4,000 of May 6
were entries of the months of June and
July.
Mr. Burke-Did you know that the bank
was insolvent on July 10?
Witness-No. sir.
Witness-I thought it was solvent.
Mr.. Burke-Yet you knew that your COM
pany had $4,000 Of the banks money.
Witness-I knew IL had about $3.50 600
The witness said he did not know the
amount of the capital stock of the bank,
and knew nothing about the legal limit
OF loans OF banks, except towards the end
OF the business, when Haughey told him
the limit had been exceeded. He said he
did not know what Haughey meant by the
limit till after the failure He was an
officer OF the Boston company, the cabinet
company, the plow company. and for a few
months of the United States company. He
admitted that he knew the condition of
accounts between the cabinet company and
It's customers and branches.
Mr. Burke-You knew IL when you drew
and accepted drafts, did you not?
Witness-I did, or might have known.
Mr.. Burke-You knew II when you depos-
tied this $4,000, which was to make good
an overdraft and take up returned drafts7
Witness-Yes, sir.
Mr.. Burke-These returned drafts were
upon customers, were they not, for money
owed the company. and for which it had
received credit?
Witness-Yes. sir.
Mr.. Burke-Were not most of these re-
turned drafts afterwards paid to the COM
pany?
Witness-Yes. sir. and the proceeds de-
posted I'm the bank.
Mr. Burke-I don't care what was done
with the proceeds When the proceeds were
deposited didn't the cabinet company get
credit for them on their account againss
which they checked?
WitnesS-YeS, sir.
Mr. Burke-And they had received credit
before when the drafts were deposited?
Witress-Yes, sir.
The witness said this was also true OF
the transactions OF Jan and July Is.
The five-minute recess was had at this
point. and at its end the witness was asked
a few questions relating TO pay roll checks
and the absorption of the United States
company by the cabinet company.
and drafts upon the American Desk
and Seating Company were held by
the receiver OF the bank at this
time. and admitted that the drafts
We're IN his handwriting He said
that the desk and seating company drafts
OF July Is and IL for 81. 1913 and - $50. ~
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