The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-18
President Brodrick Quoted as Tell
ing Employe to Keep Silent
on PaSsbooks.
SENSATION IN COURT
Collector Recites Discovery of Pc
culiar Transactions and Non
chalance of Officials.
SECRET MEETING HELD
Proffer Of Aid Conditional on
Expose of Conditions and
Twas Refused.

Testimony given yesterday In the trial OF
Justus l.. Brodrick. late president of the
dissolved Indiana National Bank of Elk
hart, charged with having been a party TO
the financial ruin of the institution, reached
a sensational climax shortly after o'clock
last evening when John Krau, collector of
the wrecked bank. was placed upon the
stand. District Attorney Healing pressed
the prosecution rapidly and sharply and
Krau's replies were the most damaging evil
dence against Brodrick that has yet been
heard i'm court.
Krau's testimony, coming just as dusk
darkened the crowded courtroom, gave a
dramatic turn TO the legal proceedings,
which had become somewhat monotonous
throughout the day. and caused a stir
among court visitors.
AT the time of the failure of the Elkhart
bank Krau was employed as collector in
the institution, and also attended to bal
ancing the passbooks. He told of the visit
OF Brodrick to his home shortly after the
bank failure and the latter's warning that
he had better not say too much about the
passbooks, and other remarks that passed
between them. He also quoted Brodrick. as
saying. when he found glaring discrepancies
ferences were all right and were understood
by him.
SHOWS SHORTAGE OF $4,000.
Krau was employed in the bank during
the three years previous to its failure. One
of his. duties was TO balance the accounts
of the passbooks with those of the bank
ledger. Attorney Healing handed him
passbook and asked him to turn TO the
records of Oct. Z. 1903 and read the balance.
He read the amount of $10,296SO as an over
draft.
Should this amount correspond to tn,
figures on the ledger" asked Mr.. Keal-
ing. Krau replied that it should. He was
asked TO turn TO the same date on the
ledger and read the balance. 1t was $29S.SO
Did you call Mr. Broderick's attention
to this shortage?" questioned the prosecu-
tion.
Il did at once" Krau replied
What did he say?''
"He said: That's all right: you balance
up the books as the checks showed We un-
derstand it.
did such differences occur often between
the passbooks and the ledger?" asked Mr.
Healing.
They did. quite often" Krau answered
did you ever call the attention of Mr.
Collins TO these differences"
II did and he referred me to Mr. Brod-
rick
home after the bank failed?" asked the
prosecution.
Yes, sir. He came to my home one
evening a few days after the bank closed
He said the bank failure was a, bad thing
but he believed they would find everything
all right except the checks, which they
might criticise. He said that he always
tried to do right" Krau emphasized the
word tried"
BRODRICKS WARNING OF SILENCE.
did he say anything about the pass
books?" questioned the government coun-
sell
Yes. He said ''You had better not talk
too much about the passbooks.''
Mr.. Healing asked the witness If Brod-
rick had been in the habit of calling upon
him or had ever called upon him at his
home. Krau replied that Brodrick had
never come to him at his home.
Another feature of the prosecution yes
terday evening emanated from the testi-
mony of Frank a. Sage, assistant cashier
of the ST. Joseph Valley Bank of Elkhart,
who told of the meetings at the bank on
the two evenings of Nov. IL and Is. Mr..
Sage, with several other bankers. were
called in for assistance by the directors of
the Indiana National Bank. He said that
j. Walter Brown was not at the meeting.
Collins and Brodrick. he testified. did the
talking. but definite assistance was rem
dered. That was on the night of Nov IL.
On the next night another meeting was
held. at which w. II. Knickerbocker, cash
ier of the First National Bank, represent
ing the other bankers, offered a loan of
$4,000 to the Indiana National Bank.
LAS securities" said Mr.. Sage, several
notes were laid out before us. Mr.. Knicker-
booker told Collins and Broderick that they
would have to show the banks assets be-
fore they would accept the security and
loan the $4,000.
SECRET CONFERENCE HELD.
'sBrodrick and Collins then withdrew to a
front room' he continued. land held con-
CONTINUED ON PAGE 9, COL. 81