The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-24
DEFENSE IN ELKHART CASE
CALLS J. WALTER BROWN TO
STAND FOR EXPLANATION
Story of Banker-Politician, Under
Ban of Indictment, Told in
Federal Court.
ACTS ARE JUSTIFIED
Assets Bolstered by Notes for
Thousands Signed by the
Stenographer.
OVERDRAFTS ALLOWED
Vaccinations for Good of Various
Enterprises Is Deduction from
WitneSS's Testimony.
OVERDRAFTS ALLOWED

Under the stress of prosecution for seven
days. directed inexorably against Justus L.
Brodrick, arraigned in Federal Court,
charged with sixty-five offenses entering
into the wreckng of the Indiana National
Bank of Elkhart, the defense. through its
attorneys, Spaan and Van Fleet, yesterday
began the task of unraveling the prose
cutors' net when it called to the witness
stand j. Walter Brown.
One of EIkhart's most prominent men,
both socially and financially. Brown was
a heavy stockholder in the disrupted bank
and himself is cited iii sixty-seven counts
charged with being partner to the bank
ing machination, to appear in court next
Monday. He welded controlling hand
in the financial management of the Ma
tional Manufacturing Company and the
Consolidate ted Paper and Bag Company firms.
to which. it is alleged, the bank made un-
proportionate loans.
Aside from the defendant j. L. Brodrick,
Brown is considered the most important
witness of the defense. He was called to
the stand at o'clock yesterday afternoon.
after the defense had introduced several
minor witnesses. and testified throughout
the remainder of the afternoon as to finan-
cial conditions of the National Manufactur-
ing Company and the Consolidated Paper
and Bag Company and their relations to
the bank. He will again take the stand
this morning, although j. l.. Brodrick the
defendant is expected to be on the witness
stand the greater part of the day. Attor-
ney Spaan said last night:
BRODRICK TO BE STAR WITNESS.
'Mr Brodrick is our most important wit
ness and will testify probably most of to-
morrow. / think our presentation of evil
dence will be concluded by tomorrow
night However, that will depend upon Mr..
Brodrick's explanation of matters 1t may
run into Friday
IT is evident from yesterdays proceedings
that the defense will rely principally upon
the testimony of J. l.. Brodrick; that they
will seek to establish the fact that the
values of the companies involved were
solvent and large enough TO warrant the
loans made by the bank, and that the trans-
actions between the bank and companies
were made on solid valuations From
Walter Browns testimony it is concluded
that Collins, who was uneXceptionaliy re-
ferred to. will receive the blame for the
crooked work done in the bank
The feature of yesterdays testimony was
Browns explanation of the Afford notes,
the b. NJ. Tousley notes and other notes of
the National Manufacturing Company ana
the Consolidated Paper and Bag Company
on which the prosecution presaed strong
accusations of false entries, embezzlement
and misapplication of funds.
He attempted to show that the Afford
and Tousley notes were accommodate ton
notes and that the companies behind them
were good Having shown by figures the
financial status of the companies Brown
was asked by Judge Van Fleet TO ex-
plain the repairs made in the Consolidated
Paper. and Bag Company to which the
Afford notes were applied.
"Mr. Brodrick and Mr.. Collins" said
Brown. ''came over one Sunday and looked
the plant over and then said to go ahead
on the repairs. They said we would draw
the money out of NJ Affords building ac-
count in the Indiana National Bank. The
checks were signed by Afford, contractor
who worked around the Consolidated plant.
, 1t was so arranged with the bank. Col
| Inns asked me if Afford would object to
| giving notes TO carry the account until
| i called Afford in and told him about 1T
and he signed note for $4,000 in Septem-
Der, one of $4,000 in November. 1901. and
| another of $4,000 in March. 1902.
ACCOMMODATION NOTES EXPLAINED.
what did you do with those notes?''
asked Judge Van Fleet.
~ took them to the bank" answered
| Brown.
what was said. Mr.. Brown. between you
and Afford in regard to signing those
notes?''
| IT told him that he would not be re-
| sponsible-that they were merely accommo-
| dation notes"
..Were those notes credited to anybody?'
| "yes. to the Afford building account.
| what was done with the money the notes
| represented"
at was drawn from the bank by checks
| signed by Afford and countersigned by my.
CONTINUED ON PAGE 6, COL. l.