The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-05-29
DE PAUW'S FINANCES
Ex-TREAsURER RAY BELIEVES THE
JOURNAL MIssTATED FACTS.
HIS Denial RefutedJ by ,His Last Re.
+ port To Ia Trustees-Rev. II. A..
Goodwin's Explanation.

10 'he Editor of the Indianapolis Journal:
W. Z. DePauw died May Z, 1857. At the
time OF his death his wealth was variously
estimated to be five to seven millions but
IKE all large fortunes. exaggerated. When
his specific requests were set aside u Was
seen that the residuum. out OF which 40 per
cent. was bequeathed TO DePauw Univer-
sity' would be about fifteen hundred thou
sand dollars. making about six hundred
thousand dollars the probable 40 per cent.
among the provisions of his will he pro-
'iueu Ior sloo,Wo to be paid by his executors
ouC OF MS estate at the rate of $4,000 per
dhhum Tor ten years TO the university, on
winch the university was to pay a s@per
cent annuity to his heirs. to wit: His wife.
TWO sons and two daughters, the annuity
10 terminate with their respective lives.
Up to June, 1894, $4,000 had been so paid. on
which annuities were paid, instead of $780,
Co., on which $1,000 should be paid, as
stated In the Sunday Journal. The annui-
ties amount to 200.
he also provided for supplementing cur
rent receipts, to help pay current expenses,
etc. slW,Wo In all, to be paid 5000 per
annum for two years after his death, $500
ior each OF the next succeeding two years.
Slo,VW each for the next two years. $500
t"O Cdl dhl S1O,OO % the
next two years, making the entire amount,
as detailed. So. 1000, while the gross sum is
100000. In June. 1894, the books of the
university showed that the executors had
paid on this account 81. 150.32. while, as the
VIII reads, there was due S47, 800; overpaid
on this item, S23.650.32.
The sale of the land near Chicago was
concurred in by all the legatees, includ-
ing the DePauw heirs, DePauw College or
Methodist Home in New Albany, the trus-
tees of the United Charities in New AL
bany company and the university. The sur
viving DePauws did not get the cash and
notes for the sale, but the proceeds
nave belonged TO the estate and have been
properly accounted for TO the Floyd Cir
cult Court.
Any loss on account of the Music School
That occurred by reason of Dean Howe
did not fall upon the university, except
about 500 or SIPS. The loss that accrued
by reason of the Music School. up to two
lifetime. and after his death on his sons,
Newland I. and Charles w. DePauw, who
nobly took their fathers place. Two years
ago Dean Howe took the Music school on
his own account, and while so acting went
into debt about $500, for which the uni
versity. is not responsible. Every piano or
musical instrument bought for or by the
university was promptly paid for. None
were ever mortgaged by the university.
There is a loss of $500 and costs of fore
closure on a mortgage, not a land deal,
at kokomo, from which something may be
saved. The irregularities of this transac-
ton can be better learned from the mort
gagecr, but were not known by the invest
ing committee till too late.
The loan to the glue works. Endorsed
by Theodore p. Haughey, would have been
made by any prudent man. 1t is impossi-
BILE TO have omniscience in dealing with
mankind. and the true condition of bor-
rowers is often beyond the knowledge of
the lender.
The loan of SIS. OOo, secured by the ice
plant, was made to two young men, at the
time of the landing worth from c0 0nl tn en-
600. The plant had cost them $4,000 or more.
The. expenditure of $1,000 in the effort to
gain a crop OF ice would have resulted
most favorably, or the expenditure would
not have been made. Possibly the uni
versity caused the cyclone that overthrow
The suspended debts owing by the con-
Germs in which the brothers DePauw are
interested are proceeding TO settlement as
try will warrant. The New Albany wooden
mill has paid half it's debt and extended the
balance, securing by mortgage. With re-
such loss is in sight as indicated by the
headlines of the Sunday Journal.
The university did it's work for two years,
with its seven-per-cent. income on $40, 600
suspended, and no one said in print, or in
fact, that the trustees mismanaged the
finances. There are times in the financial
world that battle the shrewdest minds, and
II time has its patient work results not
dreamed of bring harvests where apparent
The books of the university show that
Washington &. DePauw, in his lifetime,
his family and his executors since his
death have paid out more money to the uni
versity than the entire Methodist Church In
Indiana have given to the university since
the year 1861. If there is mismanagement
the trustees for the past twenty-seven years
are not blamable. They did the best they
could with the material furnished by the
members Of the Methodist Church.; i'm fact,
were required to supply the demand of the
church for educational facilities, while pow
erty stricken from the beginning. Bear il
in mind. that w. c. DePauw agreed to pay
81 for every dollar contributed by the church,
even duplicating $4,000 then in the treasury,
and the church failed on its part. Some
members gave conditional notes. based or
raising $780, 900. and have awaited them
selves of this condition, paying nothing. Had
the church rallied to this proposition and
paid their 81, to be doubled by DePauw in
life. and his executors after death, the dis
sensions that seem TO he in the board of
trustees Ga new element in the university,
the welfare of this child of the church
would never have been disturbed.
June, 1894, is chosen for the date of this
statement, as the writer's intimate connec-
ton with the university ceased then, and
he is not aware of any material change
since July IA. 1891. when the books of the
university were turned over to his sue
cessor without a debt thereon.
t JOHN w. RAY.
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