The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-08
TRUST COMPANY's INTEREST.
Contractors Claim Assigned to It
Could Collect in an Equity Court.


The Journal has heretofore called atten-
ton to possible litigation growing out of
the sewer mess as it affects the assessments
for the work After the contractors began
the work it became necessary for them to
borrow money to complete the job. 1t was
procured from the Union Trust Company,
of which Mr.. Holt is director. He was
at the time a city official. He was park
commissioner. When the contractors bor-
rowed the money from the trust company
they assigned their claim against the city
The amount of money received from the
trust company is not known, but it was
quite a large sum. AS as the money
was loaned the trust company at once ac-
quired a large pecuniary interest in the
sewer Upon its proper construction and
acceptance depended whether it would be
paid for. Section of the charter prohibits
in very strong language any city official
from having any interest, direct or indirect
in any city contract, and provides that any
such contract shall be absolutely void"
AS director of the trust company Mr.. Holt
had an interest, at least an indirect inter-
set, in the completion of the work and the
collection Of the money.
An assignment of the claim of the Fulmer-
Seibert Company to the Union Trust Com
pany is in possession of Controller John
son. 1t is dated Oct. A. 1885, is signed for
the Fulmer-Seibert Company by L. A. Full
mer president, and George w. Seibert, Sec
rotary. 1t reads:
For value received the undersigned has
assigned and transferred its right to re-
ceive money and bonds in the matter of the
assessment for the construction OF a sewer
under contract entered into by it with the
Board of Public Works of the city of In
dianapons, on the 18th day OF September,
1856 to the Union Trust Company, of In
dianapos. Such assignment and transfer
were made by q contract entered into be-
tween the said Union Trust Company and
the undersigned on the 18th day or October,
1885.
'The undersigned requests and directs that
any and all money whatever collected I'M
der said assessments or received in the mat
ter thereof be paid to the Union Trust Com
pany. and that all bonds issued in the mat
ter of said assessment be delivered to the
said Union Trust Company
The contention of the Union Trust Com
| pany is that it does not have any interest in
the contract with the city. It's interest
accrued after the assignment was made.
John H. Holiday, president of the COM
pany, was at his farm when a reporter
called to see him yesterday afternoon, but
| Henry Eitel, vice president of the COM
pany said that his company had no in
| terest in the contract. He was not disposed
| to think that there was anything in the
| claim that the fact the company had loaned
| money TO carry on the work would effect
| its claim in any way on account of Mr..
Hollis connection with the city administra-
| ton
| If the courts were to hold that Mr.. Holt,
| the city official, had an indirect interest on
| account Of his position director in the
| trust company, and that the assessments
| were therefore noncolectible, it is said the
| companys recourse would be against the
| city 1t would have right that would be
| recognized as equitable and just. 1t is said
| that the city could not a sewer that
some one else has constructed and for
| which it has not paid.
| City Attorney Curtis said when asked
| about this point that the question was too
/ serious to give an offhand opinion on, es-
/ pecially as there has been talk of bribery
| and official corruption in connection with 1t.
| The attorneys for the contractors insist
/ that there is nothing in the point as the
| interest of the Union Trust Company was
| not in the contract, which was executed
| some time prior to the assignment Royal
! Robinson, secretary of the contractors,
said that it was a very customary thing
! for contractors to assign their claims for
money advanced to carry on the work, but
| he did not know whether the point in
volved-Mr. Hollis connection both with
| the assignee and the city-had ever been
| passed on. Controller Johnson has many
| assignments of claims made by contractors
! in his custody.