The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-03-01
Admits that His Bank and the In
diana Trust Company Hold $780,
900 of School Board Paper.
RICKETTS, PROPERTY VALUE
CONFLICTING TESTIMONY OF REAL.
ESTATE MEN.
John 5. Spann and William III. En-
gllsh Estimate 1t at S4O,OOO-Others
Say 1t Ii Worth 100000.

The investigation of the indianapolis
School Board progresses slowly. Last night
John P. Frenzel, for ten years a member of
the organization, and for long time its
president and chief fnancier, occupied the
attention of the committee two hours. Mr..
Frenzel was crafty and alert and as oily
as he ever was during the year he sat on
the miniature throne, He was chiefly ex-
amined as to the financial doings of the
board during his administration. He was
particularly adroit at parrying the pertinent
queries put to him, but was at all times
suave and polite In the extreme. Mr.. Fren-
eel left the room with a smile playing over
his features. None of the members of the
board were examined Four or five realizes
tate men talked about values in their line of
trade, and several garing discrepancies
were shown. The committee was unable to
say when the investigation would close.
Members of the School Board say they will
insist upon an opportunity of setting them
selves right before the public. Commission
er Russo said last night that he thought the
investigation would run a week.
Simon Yandes was the first witness
called last night. He testified as to the
value of the Ricketts, property recently
bought by the School Board. Mr.. Yandes
estimated the property. including the inn
provements at $4,000. He thought real es-
tate was higher in 1892 than in 1894, when
the purchase was made.
Charles Martindale, president of the
School Board. was recalled by Chairman
Moore. He admitted that he had, in the
capacity of attorney, served the Indiana
Trust Company, of which John p. Frenzel
is president. Mr.. Martindale said the Mer-
chants National Bank would take UP the
notes issued to H. H. Hanna. purchasing
agent for the training school,
who pays Mr.. Hanna 2" asked the chair
man.
the witness. Mr.. Hanna is a public
spirited citizen and his services are gratui-
tous."
Horace Mckay, who testified as to the
value of the property, a few nights ago,
asked to be allowed to make a statement
early in the session last night. Mr.. Mckay
had said that he could have bought the
Ricketts, property in 1892 for $4,000. Thomas
Moore. who negotiated the SALE had claimed
that Mr. Mckay made contrary statement
to him.
IT never made any such statement, to
Mr.. Moore" said Mr.. Mckay, s'or any,
thing like it. have memorandum here
in my pocket that was made in 1892, in the
y,
time / have shown the same to his son.
The memorandum is this One hundred feet
for $4,000; 1914 feet for $50, O00.' These are
the figures exactly as they were given to
me in November, 1892"
Thomas Moore then asked to correct
part OF his evidence. He said:
MIR. Mckay has asked me to correct a
settlement l made last night. Mr.. Murphy
Kay, but the latter asked Mr. Murphy if
ne would take that money for the property.
Mr. Murphy ply. said he would advise as to the
l had no intention of disputing the state
ment Of Mr.. Mckay"
John F: Frenzel, president of the Mer-
chants National Bank, president of the
Indiana Trust Company, and ex-president
of the. School Board. was sworn and ex-
was member of the board from 1882 to
1894. and was for two years treasurer Of
school fund deposits were divided equally
between two banks. Attorney Brown
pressed the ex-president closely as to the
MIR. Frenzel has the School Board ever
received interest for its money since you
Yes, sir; at one time the board got inter-
est I think at the time the Fletcher &
Sharp bank failed the board abolished the
the funds'-
:. You led the fight to break up up the inter-
II don't think that is the right way to
put it. The board abolished the custom"
MIR. Frenzel, We're you made an adj
defeated?''
Yes sir
You solicited position of that sort
mo; the first heard of my appointment
was through the papers"
did you always take a leading part in
the financial questions of the board p
II always tried to-
well, you did, didn't your
mo- sir; not always"
isn't it fact that you always controlled
the financial matters?"
Were you taking leading part in 1891
, when you y borrowed 100000 to build the
..Sayy ,,ort;c,,.r,y,,
You advised this step. didn't you, at the
time it was borrower"
as sir At the s tme the loan f was nns sde
that the Legislature had authorized the
board to borrow the money"
that money!
s'Five per cent, believe
''why was 1t the board borrowed the mon
ey so long before it needed it?''
lat that time the people and the press
of this city were unanimously in favor of
money The board issued bonds and sod
them at discount. The contract had been
begun and there was nothing else to do.
voted for 1t, as a plain member of the board,
TO save the organization from disgrace. 1
told the board that if it was going to con-
What steps did you take to advertise
the bonds for sale?"
II think we advertised in the Chicago pa
pers aside from the city papers"
Tell the committee what effort you made
to get the advertisement before the mon
eyed men of the East"
The assistant secretary sent notices
broadcast
Isn't it true. sir, that the School Board,
except on one occasion. never took steps
to inform the money centers that the board
wished to borrow money!
mo, sir; it is not true
How much of the School Boards loan
is held by local institutions?''
THE Indiana Trust Company holds $50
600 of the loan and the Merchants Ma
tional Bank holds $4,000 of the boards
paper. Perhaps in all about $250000
did you ever take steps to get con-
tractors 70 accept your paper at a lower
rate of interest than per cent? mean
for the manual training school?
"Eo. did not
TELL what you did to get other offers OF
Interest,"
There could have been no effort"
MIR. FRENzEL EvADES QUESTIONS.
Answer my question
II have answered 1t as well as it can be
answered.
Mr.. Petit interrupted at this point. Hasti-
ly arising he exclaimed heatedly:
II insist that if this witness Is going to
be contentious he shall be reported to the
House."
Attorney Brown, continuing: