The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-04-24
No Disposition Exists to Provoke
Revelations In Court That Might
Be Unpleasant.
NEGOTIATIONS IN PROGRESS
MIR. SHERRICK EXPECTS To GET
BACK FULL Loss OF $4,000.
Real Status of the Bruce Carr Loan
statement from John ID. Cock
rum-Details.

If negotiations which are In progress be-
tween State Auditor Sherrick and borrow
ers from the Indiana University endowment
fund that forfeited their security to the
State go through the State may come out
even on all college fund loans which now
show a loss. 1t developed yesterday that
effort is being made by certain of the
States creditors who forfeited lands TO
compromise the claims out of court Au-
ditor Sherrick believes that an agreement
will be reached with all those against whom
the State purposed to file suit by which
accounts will be balanced so that the col
lege fund will not lose cent on the loans
made during the past fifteen years.
You can say that in all probability COM
promises will be made with those who for
feited lands to the loss of the college fund
whereby all sums due will be recovered
said Auditor Sherrick yesterday. There Is
a strong probability that these matters VIII
be settled out of court to the satisfaction
of Indiana University and to the State.
What we want is to get hack money that
the auditors office lost in former years IN
making loans to persons that forfeited Sc
curity afterward. II we can recover
amounts due without seeking recourse IN
the courts it will be preferable. think. AS
IL looks to me now we are going to settle
up all these doubtful accounts with q
cleanly-baIanced sheet"
CONFER WITH sHERRICK.
The probability of compromise is some :
what surprising turn Of affairs, but the
reason is easily found. During the past Il
days several borrowers from the coll
fund who permitted foreclosure on the lam
they offered as security have visited N
state auditors office for the purpose o
sounding Auditor Sherrick as To whethef7
the State would consent TO settle the cases
without litigation. They were informed by
Mr.. Sherrck in every case that the State
would consent to such settlement, pro-
viding that the accounts showing a loss to
the college fund were cleanly balanced by
payments sufficient to wipe out the deficit
The answer IL Is stated, was satisfactory,
and the negotiations now being conducted
are for the purpose OF ascertaining in de-
tail just how much in cash is due the col
lege fund from all those that allowed fore
closure instead of keeping up interest and
paying the principal.
I'm round numbers said Auditor Sher-
rick yesterday, I'VE expect TO get back
about $4,000 which now stands on the
wrong side of the ledger The amount OF
the deficit Is slightly more than that, but
$4,000 about covers ,, 1t; II the compromises
out long and tedious litigation, which would
be necessarily expensive to the State well
as to the defendants. 1t seems TO me that
this Is a much more satisfactory method OF
settlement
KERCHEvAL MAY SETTLE.
Samuel Z. Kercheval was one Of those
that called at the auditors office yesterday
to confer with Auditor Sherrick A COM
promise will be made with Mr.. Kercheval,
! il is stated. whereby the State will receive
a sum from him large enough to remove
the loss which the college fund suffered in
making the loan on Mr.. Kercheval's Spen-
Ger county land. Financial Agent Hicks. OF
Indiana University. was present at the
conference. and IL is said the agreement
| reached was eminently satisfactory 10 him
| as the representative OF the university On
the Kercheval loan the State lost ss.07s.5s,
! il is estimated. If the agreement between
! Mr.. Kercheval and Auditor Sherrick Is con-
| cuded satisfactorily approximately that
| amount will be paid into the college fund.
1t is understood that the suit against Mr..
| Kercheval I'm the Spencer Circuit Court
win be withdrawn as soon as the compro-
mise Is reached In the meantime no more
suits will be instituted while the negotia-
| tions between Auditor Sherrick and the
| others concerned are being carried on.
There are certain excellent reasons why
it would be wiser to effect settlement OF
at the Statehouse yesterday who is deeply
| interested in these matters. While no
/ charges OF fraud have been made w any
| one, IL is nevertheless true that these loans.
many of them, were made loosely without
proper investigation OF local appraisers re-
| ports. 1t would serve good end TO pro-
| woke revelations in court which might be-
| smirch the probity OF honored citizens dead
or living. This phase OF the situation Is
4 realized at the auditors office as well as
by those who borrowed from the fund"
BORROWERS ARE WILLING
] 1t was said at the state auditors Office
yesterday that no objections have been
/ made by any of the borrowers toward set
Ting the cases without the Intervention OF
4 the courts. Although many OF those in
! terested declare that the recent Law passed
| by the Legislature would not hold water
| since a statute passed for the purpose OF
| reaching back Of transactions closed by
/ forfeiture would be unconstitutional yet
| they realize the advantages OF closing up
these accounts without airing tne details OF
liz Is said that an agreement will be
reached I'm the matter of the Wheatley loan
\ by which the deficit will be removed John
/ Il Cockrum sister OF Ella c. wheatley. OF
4 Gibson county, TO whom the State loaned
$4,000. said last night that he has not con-
sented TO any compromise Yet. He said:
.'The security offered by my sister was
amply equal TO the money she secured
| With my father assisted in negotiating
/ the loan, and / know what / talking
| about The land Is good land. and II the
/ States loses any money on IL IL will be be-
cause of bad management and not because
! of any defects In the property The loan
was made in good faith, and anybody who
saws IL was not is a liar.
Mr. Cockrum did not say that he would
not consent TO a compromise. and IA IL un-
! derstood that the Wheatley case Il being
] considered in that light with all the rest
/ Part of the Wheatley land has been sold
| at a loss and considerable portion vet
/! remains for which the State IL looktn~ f~~