The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-09-26


III after the bank received letter from
the Controller of the Currency. The effect
OF this was that all of the other banks
withdrew our credit and we were left solely
with the indianapolis National Bank The
negotiations with the Alliance Trust Com
pany were being carried on by my father
July, 1889, i went over 10 London in con-
nection with the matter. Here attorney
ness had written to his father in London)
Where was that letter when the cabinet
company made an assignment asked Mr..
1T was in private box of mine in the
omce." replied the witness. 1T was taken
oMr HsueSav ,ne o reosisu tho witness
was to be director of the English COM
pany. He agreed that I was to pay one
fourth of the cost of advertising the new
be about 5000. Mr.. Haughey agreed to
loan me my share of this amount. l was
ance Trust and Investment Company. We
had sent lot OF desks to England to be
exhibited and 1 had forwarded my $1,000
was lost to me. but succeeded in getting
hold OF the desks. I found that great deal
OF advertising had been done over the con-
had come in for desks Then decided that
we would open branch house in London ,
and turn 1t over to the Indianapolis Desk
stocked up. but in September the dock
strike began and we were unable to re-
us were badly damaged. / remained in Lon
don until May, 1890, and made an attempt
to sell mortgage bonds on the indianapolis
of being able to apply the funds to the
payment of the debt which we owed the
Witness was shown letter which the
government had introduced that tended TO
show that he advised his brother Percival
TO make some changes in the figures Of the
cabinet company's books. He had made
an arrangement, he said, with a firm OF
London brokers to form company and
issue 100000 of debenture bonds. The
brokers were to purchase the paper. They
were TO send an expert accountant to In
annapolis TO examine the books of the
The witness knew that the English system
or bookkeeping differed materially from the
American custom and he wrote to his
in the books as would enable the English
expert TO understand them.
A. G. HARRIS'S EXAMINATION.
The examination Of A. c. Harris was
conducted by the defense under protest
from the government. The witness had had
professional relations with the indianapolis
Cabinet Company for ten or twelve years.
and he was consulted by Frank A. Coffin |
shortly before the failure of that company. |
During the time he was attorney for the |
company he prepared one mortgage for |
sl5O,000 Theodore Haughey becoming |
trustee for the paper. He assisted in pre-
pairing another mortgage for s25O,OOO, of |
which Mr.. Haughey was also trustee. Ten |
days after the failure of the bank Mr.. |
Harris held long consultation with Frank |
Coffin. The latter told him that he thought |
he owed the bank about S250.0O0. and he |
believed that he would be able 10 pay the |
debt He had commercial paper obliga-
tions, he averred, amounting. to not over
$4,000. Mr.. Coffin further Informed the
witness that while he was trying to nego-
a in q had
the plant here appraised and that the value
OF the machinery and plant aggregated |
s25o, 600. Besides this they had on hand
$4,000 worth of desks and large quantity |
of lumber. Mr.. Coffin estimated the value |
of the material worked up into desks at /
$4,000. The witness suggested that Mr.. |
brother in New. York. 10 carry on the bust
ness. Mr.. Coffin replied that this could not |
be done. He valued the business OF the |
$4,000. He told the witness that each |
branch house had, its own sign over the |
door in addition to the sign, indianapolis |
Cabinet Company.
This interview with Mr. Coffin continued |
until late in the afternoon. Next morning |
when the witness saw him he asked If the |
branch concerns could be sold. Mr.. Coffin |
replied that they would not bring % cents |
on the dollar. He was asked if he had |
some friends who would buy the property. |
the New York branch to Air. Tufts. from
whom he had purchased it. The witness |
advised Mr.. Coffin TO sell the branches IL |
1t could be done The company, he thought,
might realize $4,000 on the sales. which |
would be on hand when the receiver took |
charge. He further impressed upon the |
mind Of his client the fact that the inter- !
ests of the bank and cabinet company were |
in common and suggested that he go at |
once to New York. and try to sell the |
branch there Mr.: Coffin promised to go. |
but came around the next day and was up |
braided by the attorney for his neglect. |
He did not go at ALL but sent his brother |
Percy instead. The witness declared that |
he was urgent in his advice to the Collins |
to dispose of the branches and have as |
much money possible on hand when re- |
ceiver should be appointed.
Mr.. Harris, on cross-examination, ex- |
planned that the receiver Of the cabinet |
company was appointed at the instance of |
Newton Todd The latter. he admitted, was |
created at a meeting of the witness, John |
p Frenzel and Receiver Hawkins. OF the |
bank After the receiver had been APP |
attorney should represent the trust CON-
pany He felt that his position would be |
embarrassing If he acted in the relation OF
attorney for the trust company and the
LAWYER CROSS-EXAMINED.
Mr. Burke-Did You advise Percy Coffin to
go to New York and Boston and sell the
New York house for $4,000 to clerk who
had been receiving a salary of SIS a week?
Witness-I did not
Mr.. Burke-And take promissory notes |
payable in one and two years, secured by |
a chattel mortgage on the property?
Witness-No, sir.
Mr.. Burke-Dd you advise anybody con-
nected with the cabinet company to take
shipping clerk out Of here by the name of
Pierce and go to Boston and make bill of
sale for that concern to a shipping clerk
here in Indianapolis and have notes exc
cuted Aug. 5. payable In from one TO twen-
ty-four months, in -various amounts. Sc
cured by chattel mortgages on the property
that was in the Boston house?
Witness-No; did not.
Mr.. Burke-Did you tell Mr.. Hawkins that
this concern was perfectly solvent. and that
it's physical assets were worth over half |
million dollars,' and IL permitted TO go on
for a short time it would liquidate its debts
to the bank?
Witness-I did not say that.
Mr.. Burke-Did Mr.. Coffin tell you that |
these New York and Boston branches did |
not have a dollars worth OF assets in the
world or fifteen cents worth of capital
stock paid in. that their place OF bust
ness was in Indianapolis?
Witness-No.
Mr. Burke-Did he tell YOU that he and |
Percy and his father-in-law and A. S. Reed |
were the organizers and the only stockholm
ers in these concerns?
Witness-No, sir.I
Mr. Burke--If he had told YOU that Mr.
Ha IRIS would yorr advice have baen tho |