The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-09-11

Sensational Incidents Attending the
Trial of Coffin.

lis National Bank. Many there are in this
city who recall the memorable morning of
July Is, 1898, when the collapse of the bank
burst upon the people. Ten days before
there were few who doubted the ability OF
the Indianapolis National to tide over the
approaching hard times. The half-hundred
struggling depositors who waited about the
banks doors or the morning Of July &c
made no particular demonstration when it
was announced that owing to the general
financial stringency, the steady withdrawal
Of deposits and the difficulty of converting
securities into cash the bank was obliged to
suspend.
No one was better known in the city of
indianapolis than Theodore p. Haughey.
the venerable president of the institution.
The news of the collapse spread rapidly
over the city and carried with it surprise
and alarm. President Haughey, the day the
bank closed stated that he was not aware
of the real gravity of the financial situation
until the Saturday night before. The de-
positors accepted the word of the president
as coming from a man of unblemished char
acter and integrity, and sympathy was ex-
pressed for him on all sides. There was a
tendency to absolve him from any blame in
the embarrassing condition of affairs. Later
in the week the special bank examiner ar
rived, but as yet there had been no hints Of
scandal in the affairs Of the wrecked bank
me appointment of Receiver Hawkins Aug.
4 by the controller of the currency proved
the bank insolvent beyond doubt, and this
was quickly followed by a suit against the
indianapolis glue works, of which Schuyler
Z. Haughey, son of Theodore Haughey was
president The suit was brought by the
Fourth National Bank of New York for
$4,000, the amount of q note executed May
20, 1873, and Endorsed by the indianapolis Ma
tonal Bank. Receiver Hawkins was sud-
denly called to Washington and returned in
a few da5s Then there were rumors OF
rascality. These rumors We're not found
to be groundless. 1t was alleged that the in
debtednesS of the Indianapolis Cabinet Com
pany to the defunct bank was 100000 that
Francis A. Coffin, the president, had been
loaned the sum of $4,000, and that Percival
b. Coffin, secretary, had secured a similar
amount. 1t was alleged that the interest on
these notes had not been paid in cash, but
that the amounts due had been paid by the
transfer of other notes and in overdrafts
ON Aug. several mortgages were filed at
the office of the county auditor by a repre-
sentative of the indianapolis National,
which was the first confession that there
had been direct violations of the national
bank law in loaning money at over the 10
per cent. limit.
FIVE MEN ARRESTED.
Soon there were loud clamorings for JUS
tice. The president of the wrecked institu-
ton fell i'll, but this fact did not subdue the
with others, be punished. Aug. q, about a
month after the failure of the bank, war
rants were placed in the hands of the
United States marshal for the arrest of
Theo. P. Haughey, Schuyler C. Haughey,
Francis A. Coffin, Percival B. Coffin and
Albert S. Reed. The prisoners were all
taken to the Office of the marshal, where
they produced bond in the sum of $4,000,
except Albert S. Reed, who was admitted
to bail on giving 5000 in Sureties The pre-
Iminary hearing before Commissioner Van
Buren, was set down for Aug. 49, and on
that date the prisoners were bound over to
the federal grand jury. Dec. 81 1893, indict-
mentS We're found against all these men, as
and r. b. f. Peirce, director, of the Indi-
arapolis National Bank. The indictments
against the two latter were afterward mol
lied.
Francis Coffin was twice tried in the
United States District Court. The first
trial, in which he and his brother were CEN
trail figures, began April TO- 1884, its progress
being interrupted by number OF sensa-
tional events. April 8, the day before the
case opened, Theodore T. Haughey, presi-
dent of the Indianapolis National Bank,
pleaded guilty to four counts in the indict-
ment against him, and the remainder were
nollied by the prosecution. Judge Baker
took the matter of punishment under adj
visement. and the bank president was not
sentenced until after the trial of the Cot
fins and Albert S. Reed: The case. pro-
eeeded until April H. when 1t was inter-
rupted by the shooting in his office OF Ad-
olson c. Harris, leading counsel for the de-
PENDANT, by William Copeland, of Madison
journment until Thursday, April "a, when
the proceedings were resumed. John =.
Duncan appeared for the defense In place
of Mr. Harris, and continued in the case.
April 25 the day following the second be-
ginning of the trial, another annoying and
somewhat sensational interruption occurred.
About II o'clock on that day Judge Baker
came from his chambers, where he had
been in consultation with the attorneys for
the defense, with the announcement that
the case would have to be withdrawn from
the jury. An hour later Jurors Alvin Arm
strong and FRANK Stannard were arrested
on the charge of conspiracy against the
governments interest. The charge was
made by Frank Coffin, who said he had
been approached by Stannard, the latter
offering to prevent q conviction through
Armstrong. Stannard gave bond, and was
cited to appear on the following day, while
Armstrong was kept confined. Stannard
defaulted his bond and did not appear.
Armstrong was tried and sentenced to the
states prison for eighteen months. May l
the case was again taken up and continued
twenty-siX days. The jury found both the
Collins guilty, after deliberatlng from Sat
urday afternoon until Monday morning:
the Collins and also pronounced sentence
upon Theodore p. Haughey. The sentence
of Frank Coffin was ten years in prison and
that of his brother five years.
ONCE RELEASED FROM PRISON.
The Collins asked that they be allowed to
remain here in the city until their appl-
cation to the Supreme Court of the United
States for a writ of supersedeas could be
determined, but the application was re-
fused, and they were taken to the Northern
Prison. After spending six days in con-
finement both were released on an order
from the Supreme Court, a writ of superse-
IDEAS having been finally obtained through
Justice Harlan. The Collins gave bond for
their appearance in court and left Indian
apolis March A. 1885, the Supreme Court
reversed the case, and it was again set
down for trial. May 81 was the date named,
but on account of a deficiency in the funds
OF the government the trial was postponed
until Sept. TO-
Wednesday morning, Sept, II, 1895. Fran
els and Percival Coffin were arraigned
for trial a second time. District Attorneys
Burke and Corr were assisted by John w.
Kern. The case dragged along for nearly
a month and finally went to the jury.
Thursday. Oct. 3, a verdict was reached,
after two days deliberation. The verdict
found Frank Coffin guilty, but declared his
brother PerciVal innocent. The original in
dictment against Frank Coffin contained
fifty counts, but the jury sustained only
seven of them. Six of the indictments
charged the misapplcation of funds of the
bank and the seventh with aiding and
morning Oct 20, Francis Coffin was called
into the United States Court and again
sentenced by Judge Baker. This time the
sentence was placed at eight years. Again
the attorneys for Mr.. Coffin We're able to
procure for him q. writ of SupersedeaS and
he was kept out of prison until several
months later. when the Supreme Court of
the United States again passed on his case,
sustaining the lower court. The trial of
SCHUYLER Haughey began Oct. 10. 1885, and
lasted five days On Sunday morning. Oct.
20. the jury brought in its verdict of ac-
quittal.