The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-06-22
MIR. FAILEY ON FUNDS
IRON HALL RECEIVER CROSs-QUES-
TONED AS TO HIS DEPOSITS.
He Also Gives Details showing the
Large Quantity of Labor the Re-
ceivcrship Involved.


funds Of the Merchants National Bank
without consulting the wishes of the other
directors. The court and attorneys failed 10
represS smile when the receiver vOuch-
safed this information Prior to the
ceivers examination yesterday morning, at
torney Hawkins offered the record and petit
ton or the proceedings at Baltimore which
asked for per cent. allowance for the
receiver of that branch. Similar records
were read from other cities. The attorney
showed that the majority of the receivers
got per cent. for their services and some
of them per cent. The receiver at Cleve-
land handled $4,000 of Iron Hall funds and
was paid 5000 for his work. In New Jersey
the receiver got ST. log for disbursing $751; l2O5 80
i'm bonds and cash. Fourteen thousand dol
lars was paid the receiver in Massachusetts.
Receiver Failey's examination by attorney
Harris covered almost every act of his bust
ness life. He said he had lived in Indian
apolis since 1870. In 1874 he became one of
the owners Of the Woodburn wheel works.
Before that he worked in the capacity of
foreman and was promoted 10 the position
or superintendent. He built the Indianapolis
wheel works some years later. Five or six
years ago he formed partnership with
Aaron Blair. the father-in-law of attorney
Harold Taylor. the late Judge Taylor's son,
Tor the manufacture OF barrel heading at
Charlottesville. He was appointed to the
Iron Hall receivership by the late Judge
Taylor. He had talked with Judge Taylor
about the appointment two or three times
before. The latter told him that the work
would require a competent, cIear-headed
business man and promised that if he would
accept the position he should be amply COM
DeQGafp6 "a uffn Of
having solicited Judge Taylor in his inter-
estS. He hesitated some time about taking
the trust but Judge Taylor assured him that
ne believed him capable OF administering
~ properly. Since the appointment, the re-
ceiVer had had no time 10 look after his
private business. He had occasionally at
tended short meetings OF the Indiana Trust
Company and a director of the Mer-
chants National Bank had found time TO
attend half hour meetings OF the officers.
IL was his custom to so to his office at
o'clock in the morning. He would remain
there until or 8 O'Clock in the evening.
Mr.. Failey declared that his report TO the
court OF Iron Hall proceedings was correct
in every particular. He would stand by il
because he had signed ii after having veri-
Kept him busy continually. There was a
list OF about seventy questions constantly
coming up during the process of the litiga-
v0 and $1,000 claims, many of which were
repea ted Many claimants grew dissatisfied
and threatened to take his life. Some had
die Seventy thousand checks had been
signed up TO date. In looking over the books
OF the other receivers, the witness said he
had found where the work could have been
greatly shortened had the branches settled
directly with the home office The outside
receivers. had no books to guide them and
was almost doubled.
In order that the court might understand
attorney Harris produced proofs OF claims.
medical certificates and other documents.
The receiver detailed the work required in
where he found the papers in bad condition
and many OF the accounts incorrect. The
Pennsylyania receiver sent the money here
IN a Dulk and II was necessary for the wit
ness TO find out the amount of each claim
against the fund. This required much labor.
RECEIVER ROSS-EXAMINED.
On cross-examination Mr.. Failey went
over much of his former testimony concern
ing the general plan of the Iron Hall. He
admitted that he had $4,000 of stock in the
Merchants National Bank. When he was
appointed as receiver he engaged Harold
Taylor as his personal attorney. The latter
was son of Judge TAYLOR and the son-in-
law of the receivers business partner. He
employed Mr.. Taylor because the latter had
been a shorthand court reporter. and the re-
ceiver judged that he would NATURALLY be
familiar with litigation involving receiver
ships. Hawkins & Smith, Baker & Daniels
were also retained.
WAS anything said about the compensa-
ton OF Mr.. Taylor asked attorney Howe.
NO. there was not. think Mr. Taylor
suggested that there might be an objection
to his appointment because he was the son
of Judge Taylor who appointed me as re-
ceiver. told him nothing could be said
You kept Mr. Taylor with you most of
the time: what kind of work did he do?"
He looked after the legal business ana
the correspondence relating to legal mat
ters''
What were the duties of Mr.. Harris-'
The attorneys and myself held a meeting
and Mr.. Harris was assigned 10 the litiga-
ton in New York; MASSACHUSETTS, and New
England States. Hawkins & Smith had Mis-
souri, Pennsylvania. New Jersey and other
States. Baker & Daniels also had a terri
/ tory, and Mr.. Taylor had Indiana, Tonnes
see, Michigan and the Northwestern
How long after your appointment were
the funds turned over?"
within the next day or two I received
from Mark c. Davis about $500 900. / think
about $4,000 was in the shape of checks.
Assessment No. rs was outstanding and on
this / received about $4,000 in few days.
This was gathered without litigation
How much of this money was in the
Meridian S ss ion tbink There was
in Fletcher's Bank and about sl46,0OO in the
Capital Bank"
make with the Merchants National Bank
Il arranged TO have the claims paid
through the First National Bank of Chica-
&c; anu the am ~
did you make any effort to get interest
on your money!?
yes; made an effort to get an interest
on daily balances. l was informed by Judge
Taylor that if loaned the money 1t would
You had $4,000 in Fletcher's Bank. How
long did IL stay there
1T was checked down TO about $4,000 in
July 1898. have received interest from that
bank"
What was the arrangement there
IT had a talk with Mr.. Fletcher and he
was TO pay interest at the rate OF per
cent. per annum-
ibid you ask him TO take the whole fund
"Yes. and he refused to do it, He asked
me TO take the money out. think this was
in 1894 some time.
"What is the total amount of Iron Hall
money i'm the Merchants National Bank al
Figuring on the outstanding checks 1
should say there Is A65.OOo.
THE FRENZELS AND FUNDS.
"In the directors meetings did you take
| part in the discussion TO what should be
| done with the bank funds?'
"All questions OF that character were
usually decided by the Frenzeis without con-
sultation with the other directors"
| Mr.. Failey denied that the withdrawal OF
| the Iron Hall funds from the Merchants
! National at one time would have wiped
out about all the reserve FUND required by
| the government He admitted that he had
| received but about $1,000 I'm interest from
/ the various banks in which he had de-
| posted. He said that he tried to get
/ interest from the FrenZels and did receive
interest up till they shut II OFT. Ut one time
n -