The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-22
FORTUNES DISAPPEARED
Stock Sold at Bargain-Day Prices
by Investors, Who Later
Ran to Cover.
OFFICERS IN IGNORANCE
Calls at Institution Declared to
Have Been Infrequent, While
Books Were Never Examined.

agement CT the institution is the substance
of testimony given yesterday in the trial
OF Justus L. Brodrick, charged with hav-
ing been IN part involved in the wrecking
of the bank
Two members OF the board OF directors OF
the bank were called to the stand shortly
after O'Clock by the prosecution. They
: were Z. HILL vice president of the bank,
and DR. s. b. Short both of EIkhart. They
testified that they were not aware of the
insoivent state of the bank the artifice
by which it's affairs were conducted, They
declared that they were never consulted
as to the mana cement of the institution and
Z that further than calling from day to day
they took no part in its control
Mr.. Hill said that Brodrick had charge
Of the affairs of the bank. Mr.. Healing
then mentioned many notes signed by AL
ford. Miss Tousley and others. which were
described in court last week, and asked
Mr.. Hill If he knew that those notes were
carried in the bank as assets. Hill replied
that he did not.
''You did not know that any such notes
were taken from the bank then, did you?"
questioned Mr. Healing.
mo. sir. did not" answered Hill.
''Mr. HiIl.'' continued Healing, did the
board Of directors ever have meeting and
authorize the taking of such notes from the
bank?'
mo. sir, not to my knowledge
when did you know that those notes
were taken out of the bank?"
mot until L came up here" replied Mr..
Hill.
when did you know of the bank closure,
Mr. HIP"
'"The morning after IL closed"
FORTUNE LOST IN FAILURE.
Mr.. Keaiing then questioned Mr.. Hill
concerning the Elkhart Paper Company.
of which Hill was formerly heavy stock
holder. He testified that in May, 1901, he
owned $4,000 of stock. The financial end
of the company, he said. was run by J. l..
Brodrick-
did you ever. get any money from your
holdings" asked Healing
II did not" replied Hill.
What became of your money? Did you
Worse than lost it. I gave the Brodricks
$1,000 of my claim to take it off my hands, =
Mr.. Hill, who was also connected with
c the St Joseph Hydraulic ras; Company .bs of
asked about the $4,000 note due the Indiana
National Bank. Mr.. Hill said he did not
know the company was indebted by such "a
note Mr.. Healing asked
did you or the company have knowledge
of such note?"
..Did Mr.. Brodrick. as president of the
company. have authority to make such a
note?"
On cross-examination Mr.. Spaan asked
TIE witness il Mr.. Brodrick did not make
out $4,000 of notes he held. Hill answered
that such the case. kealing exhibited
the note OF $4,000 for the hydraulic COM
pany and Attorney Spaan picked II up and
demanded to know If that were not a re-
newal note.
mo, sir, it is a note" Hill said emphatic
ally.
newal notes. Mr.. Hill, and look after the
financial part of the companys affairs?"
Yes, sir" hesitated HILL
Mr.. Hill.' continued Spaan, did you
know to whom the bank was making
loans?"
DIDN'T VOTE FOR BRoDRIcK
'I did not. SIR
'sYou should have known. should you
not? You were director of the bank
Perhaps so. but l didn't know
Ibid you attend the meetings of the di-
rectors? Were you present at the meeting
when Mr.. Brodrick last elected pres
ident of the bank?'' asked spaan-
Yes sir
NO SIR did not. did not vote at ALL"
Mr. Healing then asked Hill what he had
ever said to- Brodrick about the loans. He
said that he had complained 10 Mr.. Brod-
rick that he was never consulted concern
ing the control of the finances.
Were you called in to a meeting of the
directors on the evening of Nov Is at which
Brodrick and Collins were present?'
Yes, but | was ill and tainted. and had
Mr. HILL" said Mr.. Kealing. rising and
showing the witness a note. lis that the
s12.5O0 note CT the Hydraulic Company that
was In the bank?
Il think IL is, said HILL
"And if / understand correctly Mr.. Brod-
rick had no authority given him for any
$4,000 note. did he?'
mot to my knowledge"
DIR. S. Il. Short. of Elkhart. another d-
stand. and was ques toned about the meet
ings in the bank on the few days before it
closed. In reply to the question whether
the board to take out notes from the bank
between Nov. is and is. DR.. Short said
that there had not.
Were you at the meeting with the bank
ers? DIR. Short was asked.
- was in the back room at the time.
Mr. Hill was i'll. When first came in MIR.
Brodrick told me that Hill was sick and
= We went into the rear room where he was.
Mr. Brodrick said that we could go home.
that he thought everything would come
out all right.
SHORT NOT a BOOKKEEPER.
What did Mr.. Brodrick say about the
affairs OF the bank?"
He said they would have to close down
unless they could borrow $4,000"
Dr. Short testified that although he had
sked several times 10 see the loans on
he bank books. he never saw them. On
REORGANIZATION Mr.. Spaan asked him if
books were not always at the bank at
fcess during the day. TO which ne re-
mat he guessed they were.
You had looked at the books you
have told anything, could you?"
admitted that he could not, since
W nothing or bookkeeping.
from the testimony OF the two di-
OF the bank the examination
|hout yesterday routine and dealt
totally with figures. relating TO the
assets and liabilities OF the various
nies involved in the bank tangle.
sses were mostly men who had made
sements of the property and real
of these concerns. the prosecution
ting 10 show that they had made
beyond their assets through the bank
Thomas T.. Cummings and James
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