The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-07-29
A TEMPORARY RECEIVER
COURTS RULING IN UNION NATIONAL,
8. AND l.. ASSOCIATION.
Some Damaging Evidence and Amda-
Wits in the Governor
Matthew's Stock Was Carried.

attorneys engaged in the suit against the
Union National Savings and Loan Associa-
ton by announcing late last evening that
he would appoint a temporary receiver for
the association. Messrs. Pickens and Cox
were directed to prepare a formal entry,
which will be placed on record this morn
ing. when the appointment will be made.
Counsel for the defendant association an
nounced that they would give notice of an
appeal and prepare to carry the case to
the Supreme Court at once. By giving an
appeal bond the affairs of the association
will remain under the control of the pres
ent management until the Supreme Court
has passed on the case. The officers of
the association hope they may be able to
stave off bankruptcy by this course of
action.
Judge Hammond decided to take this ac-
ton, after some peculiar evidence was adj
duced yesterday. w. r. Noble, now secre-
tary of the Marion Trust Company, for
merly manager of the loan department and
one of the directors of the association,
testified that while he was connected with
the association Governor Matthews was
credited with holding stock on which he
paid no dues. In order to keep the stock
alive the dues on the stock were paid by
the association out of the contingent or
expense und-he was uncertain which
and dividends were credited thereto. He
also testified to alterations having been
made in the associations books. for what
purpf Sc he was unable to state. 1t was
holders residing in Berne, Ind, came TO
investigate the books Before their ar
rival figures were changed by Mr.. Noble at
the direction of Nicholas Ensley. The
learned that good dividends
were being paid on their stock and re-
turned home satisfied. Subsequently the
9r.-2 -.ro ~- rot a 49,
amount of dividends reduced. Mr.. Pickens
Undertook TO show by Mr.. Noble that Mr..
Griffin. A. 3. Gates, Nicholas Ensley and
other heavy stockholders had filed blank
notices of withdrawal, so that they might
take out their money when the association
became too shaky. Objections TO this tes-
timony were sustained by the court. Mr..
Mcbride stated that counsel for the plain
tiff was drawing differences upon false pre-
symptoms. He admitted that Mr.. Ensley
had filed notices or withdrawal at a time
when he expected TO use the money for a
specific purpose, but afterwards voluntar-
lily waived his right To withdraw. Then
Mr.. Pickens asked permission TO file two
affdavits. To this counsel for the associa-
ton also strenuously objected, stating that
the court had begun the case with the I'M
derstanding that only oral evidence was to
be introduced. Mr.. Pickens replied that no
such rule had been entered and that the
association had the right 10 file counter
evidence. Against their protest, the court
allowed the affidavits to be filed. Before
they were read the defendants attorneys
demanded time to read them. Mr.. Mcbride
and Mr.. Elliott retired for a consultation
with the officers of the association. After
some time they returned and again OBJ
jected TO the Introduction of the afidavits.
4 but they were overruleu by the court and
the affidavits were read. 1t was upon the
allegations of the afldavits that the order
for the appointment OF the temporary re-
ceiver. taken In connection with the evil
dence already introduced, was made. Tho
sworn statements are made by w. A.
Pickens. one of the attorneys for the plain
,;f- a,1 Sarnral AIovrtsnn IN A0okLao.or
who recently made an examination of the
books.
SOME SERIOUS CHARGES.
In his affidavit Mr.. Pickens recites that
various plaintiffs have been induced to
withdraw from the suit by the officers of
the association, or emissaries sent by them
TO the different plaintiffs for hat purpose.
He says that several new plaintiffs came
into the case after the suit was fled, but
that since the adjournment two weeks ago
the association has succeeded in procuring
the interest of four of the plaintiffs. He
says that he believes none of the stock
has been purchased by individuals for their
own use, but that il has been bought UP by
the association He also charges that eff
forts have been made to purchase the in
terests of other Plaintiffs. so that the suit
might die for want of prosecution. and
allow the officers to avoid an Investigation
He says further that If the association Is
tCAA III SNN o'Ai4S VI t-S AtstA liAS
they will have opportunity TO borrow large
sums OF money in the name of the associa.
ton for the purpose Of paying the with.
drawals of their own stock. with the pur-
pose of making an assignment for the ben.
eft of creditors, placing the association fl
the hands of some person friendly to their
own interests. He says that by reason OF
these facts an emergency exists for the i'm.
mediate appointment Of a receiver.
Samuel Morrison swears that stock was
| issued TO Claude Matthews Upon which due.
were paid by the association: that the otfi.
! GERS anticipated and counted as cash IN
! hand counts receivable 10 the amount o.
$1s1.10 when the dividend of July. 1894, wa.
declared: that deiinQuencies amount TO 2
per cent. of the loans. that there is q
shortage of 81. $50 u i'm the loan account du,
to misapplication of funds. and that officer.
are now trying TO make up shortages b,
declaring dividends or dead stock; that tn,
cash account was overdrawn to pay tn.
withdrawal of a. Il. Gates. one OF the man
ayers of the association. and that IN.
shortage of Charles Young. another officer
was carried as cash. that the association
! Il In danger OF insolvency under the pres