The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-04-11

plant in Boston, were taken. The plant in
New York was sold to another employe
as that of the Boston bookkeeper and the
price was $4,000 Notes were also taken
in this instance secured by chattei mort
gage Mr.. Corr said the books of the cab
met company were falsifed so as TO make
1t appear that these sales were made on
Aug. /. a week before the cabinet COM
pany assigned. The notes obtained were
not used to apply on the companys IN
debtedness to the bank but were sent TO
New York by the defendants. where they
turned up at an auction sale and sold at
the ridiculously low price tof 5000, although
on the New York and Boston plants. Mr..
Corr insisted that the government would
prove that some one connected with the
Collins had bought in the notes for The the
benefit of the families of the Coffins. The
assets Of these two branches would bring
Mr.. Corr then began a review of the
counts in the indictment The first hfteen
charge the defendants with aiding and
and the sums specific. Counts from
sixteen to twenty-eight refer to general
misapplication, thirty-six to forty-six refer
to the false reports and counts forty -elght,
forty-nine and fifty refer to the part the
Collins and Reed took in abetting the false
reports. The object Of these false reports
to deceive the Controller. and this was
a criminal offense.
TIE first count is to be supported by evi,
%as dTa%n BY 'haf the IN 1ndanap6s
Company upon the indianapolis Desk Com
pany of London. and that this draft was
signed by Reed as treasurer of the COM
pany The draft was accepted by Francis
Coffin and indorsed by Percival Coffin IL
put i'm the bank to the credit of the
company and check drawn against the
amount and the money taken out or the
bank The government contends that there
draft. and that it was never sent to Lon
don: 1t wa was kept It. in the the bank & to appear appear
come along and find overdue paper he
would become suspicious. When this draft
became due it was therefore taken up ,,,,tc by
draft was put in the bank last June and
is still there and of no value whatever.
The second count charges the misapplca-
ton and the accompanying aiding and
abetting of 5000 which was paid to the
cabinet company on a check when the cab
net company had no funds on deposit. The
company w. then insolvent Most of the
drafts on the London branch, said Mr.
Corr. were accepted in this city and re-
cern. These drafts were accepted by
Francis Coffin and were never sent on for
collection
ALWAYS SHORT OF MONEY.
The evidence supporting the third count
would be to the effect, said the assistant
district attorney, that in December. 1892
draft on the London company was accept
ed by Elijah Coffin, the manager of the
London branch, and an uncle OF the de-
PENDANTS Qhe Coffns). This draft was nev-
er paid. 1t was returned in 1892 marked
mo advice" Yet President Haughey, after
this paper was returned, accepted drafts
on the concern. Count involves the with
drawal of over $1,000 without putting in
paper as security. Worthless stuff was
afterwards given to the bank as security.
1.-The cabinet company" said Mr. Corr,
did not make enough money even TO meet
it's pay rolls, and for years the Indianapolis
National Bank was accustomed TO furnish
ing it with money TO meet these rolls.
Count 6 covers one occasion when the bank
advanced over $1l, 900 for this purpose The
company at that time had no money in the
bank, and owed the limit and more. AL
though the company was getting In worse
condition every month, yet it continued to
declare Dig dividends. One year ii declared
a dividend of 20 per cent, although at the
time il owed thousands OF dollars TO the
bank Even in January, 1893, the company
declared a dividend of 20 per cent. when
it was unable to meet observation-disclosures
draft
pany?" interrupted Judge Baker.
1T was at first S1l0G00," replied Mr..
| Corr, but afterwards increased TO
| $4,000, and the increased amount was paid
| in notes which were deposited in the bank.
Coffin was drawing $7.C00 year as salary
| as president of the company, and yet an
overdraft of $4,000 was standing against
| him in the bank. He gets the directors to-
| gether and declares a dividend of 20 per
| cent. His share of the dividend is $4,000,
and this is used to wipe out in a large
measure the overdraft against him at the
bank.
On May l francis Comm brought TO the
| bank $4,000 in alleged commercial paper.
Haughey expected the bank examiner to
| make his appearance i'm a few days. ard
| he sent a message to Coffin to come down
| was paid with this paper and $1,000 in
| other paper was taken up. The evidence
| there was some willful misapplication of
| funds, and that the only thing the bank
| received was worthless. paper. The $4,000
| in paper was put in the bank simply to
enable the report of May 8, 1885, to be fall
sified If the transaction had been valid il
| would have appeared on the cabinet com
pany'S books, but this was not done until
| the day of the companys assignment. An
| other batch of paper of the fictitious value of
| N2COO did not appear on the books until
the day of the assignment.
In 1886 the Collins and others met. They
| knew their paper was going to protest and
| they devised means to meet IL. Notwith-
| standing this condition Of affairs, they
tried to make IT appear that they Were
| directors by telling them that the interest
was being paid when II was not. One of
| the trusted employees Of the bank. we will
cellarway Of the bank and warned MIN
aga against the Coffins He told him the Cof-
| knowledge was brought to Haughey he still
allowed the Collins to draw out money"
| There some objection by Mr.. Harris
| to Mr.. Corr telling the jury of a conference
| or of a conversation which the defendants
| did not hear. but the court permitted Mr..
| Corr to continue.
| MIR. HARRISS STATEMENT.
| The opening statement for the defense
was made by Mr.. Harris. He talked in a
| slow and deliberative manner and illus
| trated all Of his points by practical COM
| PARSONS. When he stepped before the
| jury he had a copy of the Indictment
| against the defendants in his hand, and
| during the course of the statement referred
to it frequently and read several Of the
| counts. He said:
| ''OEe story of an event or certain trans
| action is always good till the other side
| has been heard. This is true of the state
| merits of counsel we'll as the evidence
| in case. OF course you will not make
| up your minds in this case until you have
| heard all the evidence on both sides -
| Continuing, Mr.. Harris referred to the re-
| latiCns that had existed between the de-
| PENDANTS and Mr. Haughey and the In
| dianapolis National Bank, which he said
| would occupy the attention of the jurors
for several days. He referred to the bank
| the city up to the time of its failure and
10 the cabinet company as one of the wid-
| est known industries of the city. He said
| it ownsd a large building in the northeast
| ern part Of the city, large quantities of
| lumber stock. both manufactured and In
| process Of manufacture. machinery, etc.
| He described the plant in detail. Then he
| went into the history Of the Collins con-
| nection with ii since 1880 He spoke of
| the number of employees and the large pay
| roll.
During all of it's history ne said. it had
| transacted its business through the In
4 al IL