The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-11-12
SHORT in HIS ACCOUNTS
A WARRANT Is ISSUED FOR THE AR
REST OF OLIVER III. HOvEY.
1t Is Alleged that He Defrauded the
state Capital Investment Associa-
tion-A Girls Orchestra.

for the arrest OF Oliver II. Hoyey, former
! secretary of the State Capital Investment
Association. Of this city, for embezzlement.
The affidavit was made by Ernest G. Cox,
who was made assignee OF, the association
for the benfit OF its creditors on Aug. last.
This Is the association OF which f. II.
Hovey, brother of Oliver Hovey. was pres
ident at the time of his death, in 1885, 1t was
known shortly after the assignment of the
association that Oliver Hovey was short in
number OF items In his accounts as secre-
tary. but his explanation to the assignee
was plausible and until recently it was be-
lieved that they involved nothing more seri-
Gus than clerical errors, or, at least, that II
money was due the association from Hovey,
there was no dishonesty connected with his
dealings.
The United States Fidelity and Guaranty
Company was on Hovey's pond for 5000,
but this bond was so drawn as to cover no
shortages except such as might arise
through the Intentional fraud and dishonesty
of Hovey in his capacity as secretary. 1t is
claimed that 1t was through close investi-
CATION instituted by the bond company for
the purpose of canceling the bond that it
was discovered that in a number of items
Hovey had not only been guilty of embezzle-
ment Of the funds of the company, but prob
ably or other things. The particular short
age for which the criminal prosecution is
instituted is an item of $50, which, II is
charged, Hovey took from the cash drawer
or the association on the day the assignment
was made.
HOvEYS EXPLANATION.
Hovey's first explanation was that this
was salary for the month OF August which
he merely drew in advance in good faith. ex-
pecting to serve out the month as secretary
and thereby earn the salary. He stated fur
Their that he had frequently drawn his salary
in advance with the consent of the direc-
tros, and that at the time of drawing this
money he had no knowledge whatever that
an assignment for the benefit Of creditors
was pending. 1t is charged, however, that
Hovey took this so after he had signed the
ne knew that his services as secretary of
the company were entirely ended.
another specimen OF Hovey's alleged deal
lngS with the association is a stock loan of
$500, for which he is still indebted TO the
association, II Is claimed. The association
not borrow money unless he had paid up
STOCK, and then could only borrow within 80
per cent of the amount he had actually
paid In. In July, 1897, Hovey had no stock
In the association. 1t is said, but on July
IA he took out one share of running stock
and paid the first months dues on it. On the
Of $50, On Dec. p, 1897. he borrowed an
other $50 and, it is claimed this loan,
aggregating 500, was entirely unpaid at
the time of the. assignment The to-
tai amount which Hovey had paid in
on this one share of stock III over a
year and a half was SO. it is averred. and
consequently this share of stock which was
paid up 90 the extent of $50 was the total
security which the association had for the
mitted another act of embezzIement by
writing withdrawal check for $50 to him
sef. thereby Withdrawing the only security
WHICH the association held for his $500 loan
TREATMENT OF HIS WIFE.
1t Is asserted that the worst feature of
Hoveys conduct was his treatment of his
wife with regard to money which she had In
the association. Mrs Hovey at one time
had between 500 and 5000 in paid-up stock
In the association. She made a withdrawal
or all but 1897. and according to her state
ment to the assignee she supposed she still
held her 1897 interest in the association at
the time OF the assignment. Some time
after the assignment Mrs. Hovey went to
Mr.. Cox, the assignee, and asked him as
10 the proper manner in which to file her
claim against the association for the bal
ance due her on her paid-up stock On look
Ing through the index Mr.. Cox told her she
no longer held any stock in the company,
~ having been previously Withdrawn. She
then stated that this must surely be a mis-
take, as she had never received any money
Oh account or IL ana had never withdrawn
1t herself nor authorized its withdrawal by
any one else.
Mr.. Cox then went carefully through the
DOCKS and withdrawal checks of the asso-
citation and found that all of Mrs Hovey's
interest had been checked out and with
drawn by Hovey himself. One or two of the
cheeks were drawn on the association in
the form OF withdrawal checks and were
regularly signed by the proper officers. and
were made payable 10 the order of Mrs Ho-
yey. On the back OF these checks the In
dorsement, Myrtle e Hovey." appeared
| IL Is understood that Mrs Hovey has stated
that she did not indorse these checks nor
authorize any one TO do so for her. 1t ap-
pears from other indorsements that one or
Two OF these checks were cashed at the
bank by Hovey. and others Were deposited
10 the credit OF the association. the with
drawal entries indicating that instead OF
getting the money on the checks at the
bank, Hovey took IL out OF the cash drawer
| OF he association.
MANAGING A GIRLS ORCHESTRA.
For some time Hovey has been making
tour Of the small towns OF the State with
an orchestra composed OF young girls II
| was supposed they would give a perform
ance at Roachdale last night, and Constable
Joseph Shepard and representative OF the
| United States Fidelity and Guaranty Conn
pany left for that place at II p. m to serve
| a warrant on Hovey. The girls in Hovey's
| orchestra belong in Indianapolis A repre-
sentative or the bond company says that If
on preliminary hearing before Justice
NickerSOn HoVey il bound over 10 the grand
| jury, all the facts concerning his alleged
dealings with the association will be fully
presented TO the grand jury with n view
| 10 obtaining indictments for both embeZzle-
ment and forgery. IL is claimed that Ho-
vey has by one means or another defrauded
the association out OF about $500. 500 of
which the bond company will have to pay
because the shortage, IL is alleged. is plain
ly OF fraudulent character. Hovey is
NtNS. ~f Nx-A