The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-10-16
THE GOVERNMENTS SIDE.
Outline OF What the District Attorney
Expects to Prove.

W
Assistant District Attorney Corr made the
opening statement for the government. be-
ginning promptly at 2 o'clock yesterday
afternoon. His remarks were brief, and did
not take up more than a half hour. He first
read the various counts of the Indictment.
which charge Schuyler Haughey with aid
ing and abetting his father in the misappli-
cation of the funds of the bank for the
of the Indianapolis Glue Company and
indianapolis Curled Hair Works in the sum
OF $4,000 The evidence would show, the at
torney said. that Schuyler c. Haughey was
familiar with his fathers operations; that
the young man furnished worthless paper
to carry out the plans of the father. Both
father and son knew that this paper was
Of no value. because it was never entered on
the books of the curled-hair or glue COM
pany. In May, 1880, the books of the bank
showed an overdraft of s27s, s95.S4. This was
not reported to the Controller of the Cur
rency, because 1t would have closed the
bank at once after it became known. In
discussing the financial transactions pc
tween the two companies and the bank. at
torney Corr referred TO the custom of the
haugheys in covering up the evidences OF
the debt with worthless notes and drafts.
The evidence will show" Continued the
district attorney, that people on whom
many or these drafts were drawn were alb
soiutely worthless. The last three years Of
the existence of the indianapolis Glue Com
pany that institution drew out more than
SsO,0V, and at the beginning Of that period
the books OF the bank sho we'd an overdraft
or $4,000. In addition TO that, the personal
notes or Schuyler c. Haughey for $34, 900 ap-
pear on the books of the bank. Three notes
were given by him while he was insolvent.
Inc notes OF the Indianapolis Curled Hair
company were all signed by him. When
the bank failed it had on hand the notes of
John f. White for $50, 900. White was i'm
some capacity connected with the curled
blank notes He did so. a and the
amounts were afterward filled in by
this defendant and deposited with the bank
to cover up the overdraft. Mr. White was
absolutely insolvent when he signed those
notes.
Glue Company for $4,000 and the notes OF
Charles Cess for $4,000. Mr.. Gelss was a
director in one of the companies. Mr.. White,
1t was supposed, was a director, but as a
matter of fact he was only a figurehead.
Geiss signed one hundred of these blank
notes at the request OF Schuyler Haughey
and his father. Schuyler took these notes
and deliberately filled them odt for the pur-
pose for which he waited them. When one
OF the Cess notes fell due " was not sent
10 him. IT. was taken out by Theodore
C. S~pruance. who was connected with tae
glue company as secretary, had $4,000 worth
OF notes In the bank. +. +. Cowper, il will
be shown. signed blank notes at the request
OF Mr.. Haughey. He was told b. the
Haugheys that the notes were TO be used
in purchasing material for the curled hair
works. Long before the bank failed Schuy-
Ter Haughey knew they were indebted to
the institution I'm a sum greater than $780,
600. He knew that the companies OF which
he was president were insolve1t, yet he went
on checking out money wear after year.
Schuyler Haughey kept the books OF these
companies, yet ne did not enter this paper
on his books. He did not -egard IL as valid
paper. and he knew that IL was to cover up
the immense overtrafts.
Gentlemen OF The jury. the character of
the business carried on by these Companies
and this defendant constituted q willful mis-
arplication OF the funds of the Indianapolis
National Bank"