The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-02-03
AG-REYNOLDS BOOKS
INTRODUCED TO SHOW THE PROFITS
AND LOSSES OF THE FIRM.
The Argument VIII he Heard To-day
Florida PhfIIips's Sentence
other Court News.

Practically all the evidence in the Krag-
Reynolds litigation is in. This morning the
bookkeeper of the defunct firm will be put
on the stand to show whether a book in
troduced in evidence yesterday was made
up year by year before the assignment. The
bookkeeper yesterday showed by a little
book that Charles NJ Reynolds had drawn
out some 900 the few weeks preceding
the execution Of the first mortgage, besides
which $S7, 600 had been paid out to him and
various other members prior to the execu-
tion of the mortgage. The $4,000 repre-
scented amounts he had put in the business
Nicholas McCarty Harrison was questioned
closely as to his knowledge of affairs. He
testified that at the time he surrendered his
stock and took the firms note in payment
he did not know that it was the intention
to make a mortgage to secure the note and
other claims and that the first intimation
he had of it was when the mortgage was
read to him in the Office of Duncan, Smith
e. Hornbrook, the attorneys who represent
him and Nicholas McCarty. Neither did he
know that the indebtedness to one bank
here was greater than the entire amount of
Indebtedness represented to him by Charles
M. Reynolds as owing to the firm. His
knowledge of the affairs Of the company
was impaired to him by Mr.. Reynolds and
he had not taken steps to verify his state
ments before the mortgage was executed.
The next day he learned from the book
keeper that the firm owed the New York
banks $150,000 Shortly before the mortgage
was executed Mr.. Reynolds had told him
that all mercantile accounts were discounted
up to within three weeks. He knew there
was an account at the Importers and
Traders National Bank in New York. but
had simply regarded it as a bank of deposit,
Mr.. Reynolds explaining to him that the
account there was to be drawn on in pay
ing claims. This method made a saving on
exchange charges. Mr.. Harrison denied that
he knew large quantities of merchandise
had come into the store few days before
the mortgage was made. He was not there
frequently and as the stock was brought in
through the rear of the store, he would not
notice unusually heavy receipts unless he
happended to be there. He had noticed that
there was a heavy stock of coffee but not
ususually, remarking that the sales on one
brand amounted to 1900 pounds day.
The bookkeeper asserted that there had
never been any efforts to conceal the books
from Mr.. Harrison or other members of the
firm and that they might have had access
to them. The last exhibit introduced was
ledger purporting to show the profits and
losses of the firm for the three years. 1t
showed $3.50 profit the first year and APP
parently a loss of $4,000 the second and $685.
900 the third. The attorneys were unable to
determine if the $4,000 was net loss for the
first two years and $4,000 the net loss for
the entire three years, or otherwise. The
bookkeeper will be further questioned
upon it.
The argument will begin this morning.
Messrs w. H. H. Miller and Charles w.
Smith will occupy the entire day