The Indianapolis journal., 1904-04-07
His Reserve Thrown to Winds,
Tale Is Told Involving Brown
as Arch Conspirator.
SECRET QUEST FOR GOLD
Vaults of Bank, Depleted to Sat
iSfy Loans, Were Filled
by Relatives.
BANK HAD FED FACTORY
Crash of One Meant Ruin of the
Other, According to Story
Told Witness.


lins. guilty cashier OF the wrecked Indiana
National Bank of Elkhart, yesterday gave
forth testimony in the Federal Court. every
statement of which seemingly carried dis
aster and damage beyond redress TO the
cause of Walter Brown. who for nine days
has withstood prosecution for being an al
legged conspirator in the Elkhart bank fall
ure. Held in allegiance as the prosecutions
strongest witness. Collins's appearance
upon the stand at . o'clock yesterday MORN
ing signalized the undemonstrative climax
of the Brown trial. while his testimony.
coming clear-cut and unweighed, far ex-
ceeded. in point of fatal import. expecta-
tions. which have awaited his disclosures
of Browns financial activities
Sparsely occupied at the reconvention OF
the trial yesterday morning. the courtroom
before noon crowded to standing room.
so. centered was the interest in Colinss
testimony. Throughout the long examina-
tion there silence in the court save for
the hard and Unconditional voices of attor-
neys and witness. Brown and his trio OF
attorneys made little remonstrance or
showed outward signs of nervous weak
ening under the rain of discriminating evil
dence. With practically no interruptions
press his case TO the last ditch.
BLAME ON BROWNS SHOULDERS.
Mrs. Walter Brown. who made her first
appearance in court Tuesday afternoon, was
not in court yesterday. although her son.
Gilbert Brown. attired in military suit, sat
during the morning session with other visit
ors outside the court railing. He was alb
sent at the afternoon session.
For almost five hours Collins was on the
witness stand testifying against Brown,
after which he was subjected TO a severe
cross-examination by Attorney w. A Ketch-
am, who questioned him until adjournment
OF court al o'clock.
In substance Collins testified that Brown
was heavily responsible for the wrecking
of the bank, being the leader in the mis-
management which wrecked the institution;
that he continued to contract debts with
the bank in the face OF warnings and objec-
tions by both Brodrick and himself: that
bank on the night of Nov. 10; that he fur
nished data for and was present when the
false entries were made tnat night on the
the night of Nov. is when the midnight
meeting was held: that he paid personal
debts With money drawn on the account OF
the National Manufacturing Company.
which he managed, one OF the debts being
the tuition of his Gilbert at Howe
v,
money from the bank by methods evading
knowingly the law.
STAR WITNESS Is BRIGHTER.
Collins presented quite different picture
yesterday from that he made when he tes-
titled so destructively i'm the Brodrick
trial. He spoke out boldly and firmly and
seemed in much brighter spirits than for
mery. He began his testimony by admit
ting the different crooked transactions that
were carried on within the bank. repeating
in part his testimony given in the Brodrie6
trial.
Mr. Healing however took a new tack
when he asked the witness if i'm 1902 the
bank was not i'm such critical condition
that In necessary To borrow money TO
tide over failure.
Collins admitted that such was the case
and that ]. l.. Brodrick. G. b. Brodrick.
Brown and himself borrowed $685. 900 for the
bank. Forty thousand dollars Of the money
was borrowed from the Fort Dearborn Ma
tional Bank through II. L. Bucklin. The
remaining $4,000 was secured from Collins
relatives in Knoxville, la.
What meetings did you hold at which
this loan of $4,000 was discussed?" asked
Healing
1--WE held a meeting at Brodrick's home
one evening" responded Collins. ''at which
We're Brown. Mrs. Brodrick and myself 1t
was decided that Mrs. Brodrick and Brown
should go TO my father in Knoxville and
see If they could set $4,000. They did so
and got the money.
Brown after he returned?
Brown met me on the street and said
that he had got the money. He said he got
il on notes OF the Consolidated Paper and
Bag Company the National Manufacturing
Company and the Elkhart Paper Company.
OF the $4,000 he got $1,000 from my father
and 5000 from my sister Prudence"
Was any OF the money repaid?" ques-
toned Healing.
The $l5.OC0 was repaid to my father di-
rect from the banks money but the re-
mainder is still unpaid.
BANK OFFICERS IGNORANT
'.Mr. Collins. was the $4,000 repaid from
the banks money also?'
Some Of IL was
WAS any record of these transactions
kept in the bank at the time it closed?"
There was not" answered the witness.
''Was the transaction carried on without
the authority and knowledge OF the other
directors of the bank"
Yes. sir"
Was anything said before Brown about
keeping the transaction mum p
Yes; We had a meeting In a room In the
RuckIen Hotel at which Brodrick, Brown.
Bucklen and myself were present. and
either Brown or Brodrick said we must
keep the Vaccinations secret. Bucklen
Piled You know me: I'm like an oyster.
Healing then questioned the witness con-
cernng the relations OF Browns two COM
panies 10 the bank-the National Manufac-
turing Company and the Consolidated Paper
and BAG Company-whose debts TO the bank
aggregated over S2o.VoO-
DEBTS CONTINUALLY INCREASE.
.Mr Collins" asked Healing. from the
time Brown began making debts TO the
bank up to the time the bank closed, was
he ever out OF debt?
''He was not" responded Collins.
Were his companies ever out OF debt?"
They were not"
Did all these debts increase as time went
on?"
'.They did.
did you and Brodrck and Brown ever
have meetings TO discuss these dcbts?
quite frequently. / often told Brown he
should get some money on his ifIdebted-
ness and Brodrick told him he SHOULD re-
duce his Indebtedness. but he always said
that he had some money coming But his
debts kept increa asing. We warned him no
would break the bank"
WAS anything ever said about shutting
down Browns factory
Yes but Brown said he didn't dare do
that as il would break him and the bank.
too. = - = .
SAYS "KITING' WAS .PRACTICED
.Did you ever talk TO Brown alone about
the bank anairs?" Healing asked
Very often. Brown would meet me on
CONTINUED on PAGE Q. COL 81