The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-20
Bonds Shown to Be Held by ].
Walter Brown and Bank Pres
ident Brodrick.
AVALANCHE OF DEBTS
With a capitalization of $4,000,
Two Men, 1t Is Declared, Held
100000 Stock.
MUCH PAPER SECURITY
Hearing of Elkhart Financiers
Half Over, and Defendants Will
Introduce Testimony.

Attorneys conducting the trial in Federal
Court of Justus l.. Brodrick, late president
of the wrecked Indiana National Bank of
Elkhart. do not expect to conclude the
case until near the end of this week. AL
though it was expected that Brodricks s
trial would last but week, the evidence
is only half in. 1t was said last night by
attorneys that the case will be finished in
all probability by Thursday evening.
The trial of ]. Walter Brown, who is in
dicted in sixty-three counts for having
aided in the ruin of the Elkhart bank, was
set for tomorrow morning. but was post
poned yesterday until a week from Monday.
Only a half-day's session of court was
held yesterday and adjournment was taken
at noon i'm order to allow Juror Anderson to
attend the funeral of his sister, Mrs. Ar
thur Timberlake, who died Thursday even
ing
District Attorney Healing and his assist
ant, ]. j. NJ. La Toilette, who are conduct
ing the prosecution of Brodrick, said yes
terday that they have about half-dozen
more witnesses to introduce before their
evidence will be closed. The defense will
then present evidence and d day or two
will be given to arguments.
G. w. Fredericks. vice president of the
Elkhart Paper Company. was the new wit
ness on the stand yesterday Brodrick was
treasurer of this company, whose notes and
bonds figure so largely in the assets of the
bank. Former evidence showed that the
indebtedness of this company to the bank
was over $4,000.
Fredericks said that three months before
the bank failed a bond issue of 100000 was
authorized in the face of this gigantic in
debtedness and the bonds placed in the
hands of ]. L. Brodrick. After some prod
ding by the prosecution, Fredericks testified
that few days after the bank failed, $780,
600 of these bonds were placed in his hands
by either Collins or Brodrick to be held
in trust. He also stated that $4,000. of the
bonds are held by j. w. Ellis, president of
the Elkhart Paper Company who is now
IN California and that J. Walter Brown IS
the holder of $4,000 of the bonds while
$1,000 are in the hands of the defendants
attorney. Judge Van Fleet.
OF these bonds. thirty-five We're found in
the bank by the receiver after the failure.
They We're carried as assets. 1t is now
charged that $4,000 of the bonds were
placed there on the morning of Nov. is at 2
Brodrick, who abstracted at that time an
equal amount of notes. including those of
Charles II. Wright and w. E. Burris.
MORE STOCK THAN MONEY
Fredericks's testimony also brought out
that in 1902 Brodrick. in a plan to increase
the capital stock OF the paper company
from $4,000 to 100000 had issued to him
self $4,000 of stock in exchange for a note
of $1,000 executed by him. A similar trans
action. Fredericks said, was made by Col
lins. Although the capital stock of the
company was. never increased, the two
men held S66 900 of stock
Daniel G. Thomas, former teller in the
defunct bank, who is now the governments s
chief witness, was again on the stand yes
terday morning, and gave minute testi-
mony. by aid of the banks books, to en-
tries and accounts of the deposits and cash
Several other of Fridays witnesses were
also recalled yesterday morning. One of
them, Miss Emma Goard, an assistant
bookkeeper of the bank, identified entries
in the banks books.
The court adjourned at noon, and will
reconvene at O'Clock tomorrow morning.