The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-05-22

Its doors. The witness said the money in
these two items was received on July %
and subsequently paid out for labor 20 take
Up checks on the bank which had been re-
turned unpaid, and that 1913 that had been
deposited in the State Bank of Indiana
was turned over to the receiver OF the cab
met company. Then a detailed examination
upon the letters to and from London was
taken up, and the witness went into ex-
He said the company to be organized in
London was for the purpose or paying In
cash all the debt Of the cabinet company
to the bank and putting large amount OF
additional capital into the company. 1t
at the suggestion of the Alliance Trust
and Investment Company In connection
be organized, that F. A Coffin. John
Roberts and T. p. Haughey were named
as a committee of American managers.
in which p. u. Coffin was instructed to go
over the books and figure the inventory
on a different basis SO as to correct mis-
take OF about $4,000 In the showing of the
profits. He said that under the contract
with the Alliance company and the basis
TO be use1 the profits would be reduced
about $1,000. The witness produced reports
made by accountants empoyed by the AL
lance company for the years 1885 TO 1883 in
animation of the books. These reports
showed the profits of the business much
larger than had been testified to upon the
trial from the books OF the company. The
witness explained this by saying that in
the computation Of profits by the cabinet
company interest on borrowed money had
been deducted, while English accountants
included the interest and computed profits
on all the money invested in the business
He said contract for the sale or deDen-
lures had been perfected In London, bu
within a few months after he retur- cd TO
this country the London company, which
had charge Of the sale, failed and the con-
tract was not carried out
The question OF dividends was then taken
up in detail. The witness said that the
total amount of dividends actually paid by
the cabinet company duDing its entire ex-
istence was $50 900. The dividends actually
paid between Jan. /. 1891, and the date of
the failure of the bank the time covered
by the indictment, was $4,000. There was
but one dividend, that or Jan. Z, 1893, for
$4,000, declared during that time. One
third of the dividend was paid in notes
which had never been paid. He said the
the time of the failure representing money
actually received from the bank was $246,-
Co., and the balance Of the debt represented
unpaid interest He explained the large in
crease in the assets of the company in the
year 1889 to be due to the fact OF an APP
praisement OF the properly at It's actual
value at the suggestion or the persons In
terested in the organization of the Indian
apols Cabinet Company, Limited, of Lon
don, instead of the actual cost, as had
heretofore been done by the cabinet COM
pany. He repeated that the excess of
sent was $54,00137. He said he had not the
slightest knowledge OF what entries were
made on the books Of the bank ir refer
ence TO the transactions between the bank
and the cabinet company.
He was asked what relation Newton
Todd. upon whose application the receiver
was appointed for the company, and Re-
ceiver Hawkins, of the bank. sustained TO
the trust company, and answered that Mr.
Todd was a stakeholder and Mr.. Hawkins
a director Of the trust company. The court
then adjourned till o'clock.