The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-07-18
ASHORTAGEOF OVER $500
A FEATURE OF EVIDENCE IN THE
BUILDING ASSOCIATION SUIT. q
Former Assistant Secretary Was
Short that AmOunt-Security ON
Which Loans Were Made.

The most important testimony adduced so
far in the trial of the case of the Union
National Savings and Loan Association was
the fact that there has been a shortage I'm
the accounts of the association amounting
to $31041, which existed when Nicholas En-
sley assumed active management in August
or September. 1893. Mr.. Ensley testified
yesterday afternoon that he found G. S.
Young. former assistant secretary. was
short in his accounts that amount when he
took charge of the books. a sum sufficient
10 cover up the shortage was transferred
from the contingent to the expense fund.
and the shortage was subsequently car
ried as cash on hands. Mr.. Ensley said. He
testified that the directors must have
known of the shortage. it was openly
discussed.
Oliver p. Ensley testified in the forenoon.
Mr.. Ensley was employed as inspector of
loans at salary of 500 month and $50
a month for expenses; this was afterward
increased to sl25 month and all expenses.
II was his duty he said. 10 inspect loans
and report on them. He testified that there
is a bylaw of the association which pro-
vides that property shall be worth double
the amount loaned. This bylaw was not
invariably complied with. When asked TO
identify certain reports he had made and
state whether the security was worth
double the money loaned. he replied that
he was financially interested in the asso-
citation and had been very conservative In
recommending loans. 1t had been his ex-
perience that local appraisers sometimes
favored their friends and had sometimes
lent money in excess of the value of the
property offered as security. In the after
noon O. Z. Ensleys examination was post
poned TO allow his father TO testify.
After teStifyfng as 10 IoungS shortage,
Nicholas Ensley was questioned by Mr.
Pickens as to the manner of making divi-
dends. He said that the dividends were
only declared when there were profits to
Justify them and they were paid out of
money in bank or in the tiils OF the asso-
cis ton. He said that there had never been
any dividends declared on the furniture of
the association nor its charter The min
utes of the association showed that in Feb
ruary 1856. a sum of money was trans
ferred from the furniture account 10 the
contingent fund. This not for the pur-
pose OF dividends. he said, but to balance
errors made by former bookkeeper. Mr..
Ensley said that he could not explain this
TRANSACTION as clearly the bookkeeper.
Ex-Judge Byron X. Elliott was called
into the case by the association yesterday
morning. He argued that no one but the
Announcement had authority to institute
building and loan association. IL some
such prote ction were not AFFORDED ne said
that associations would be subject to at
facks from irresponsible parties at all
times To this counsel for the plaintiff,
Harry l.. Gains. declared that this is not
10 remove the management or Its anairS
from the hands OF the present directors
The hearing of the case Will continue this
morning.