The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-16
Head of Wrecked Bank Is Shielded
by Blame Heabed Upon Cashle,

pany, 1881; Garden City Stationery Com
pany, S19,661; National Paper and Supply
Company, 5000; Elkhart Mercantile Com
pany, s9.S91; Buescher Manufacturing Com
These figures were taken from the report
made by Mr.. Bosworth in his examina-
ton of the bank after its failure, he having
been receiver of the institution. The testi-
mony also brought out that the Brod-
ricks, Collins, Brown and other directors
of the bank were in the majority of the
cases promoters of these companies. Bos-
worth also testified that ]. Walter Brown
was indebted to the bank to the amount of
$4,000, Mrs. Brodrick to the amount of
$1,000, c. B. Brodrick brother, to the
amount of $97O0, J. II. Brodrick. another
brother, to the amount Of 5000 on a
amount of $500. and his wife. Stella Col
Inns, to the amount OF 5000.
INDEBTEDNESS OF BANK
THE books OF the bank" said Bos-
worth, "show an outside Indebtedness of
100000 in promissory notes, Cancelled checks
and overdrafts.'
The testimony of Mcintosh exposed more
openly the loose regime of the bank and
threw bad light over W. L. Collins and
Walter Brown, while it was on dangerous
ground 10 the cause of Brodrick. Mcintosh,
who has made several Investigations of the
bank, testified that on his examination
in May, 1902, he was unable to reconcile
the accounts of the bank and was forced
TO return again in June by directions from
the controller of currency He then went
into an explanation of the items of the
indebtedness of the corporations to the
bank.
Attorney Healing asked him if he had
ever talked with the defendant about the
overloans of the bank. He said he had
and Brodrick replied that all the COM
panies TO which loans had been made were
good concerns and there no chance of
the bank TO lose. He was then asked if
he had talked TO Brodrick and Collins to-
gether about the condition of the bank.
TO which question he replied that on his
return to Elkhart in June 1902 he had
found Collins and Brodrick in a room to-
gether. He said Brodrick did not appear TO
want TO talk and Collins did most of il
Mcintosh said he asked Collins why their
accounts did not reconcile with their rat
ing in other banks. He replied that he
didn't know, as he checked up every month.
Mcintosh said that when he pointed out
that there was no record of the redis-
counts of the Fletcher National Bank the
Capital National Bank and the 5000 re-
discount OF the Chase National Bank of
New York, Collins said it was due to over
sight.
"where is the note of the Fletcher Ma
tiOnal Bank?" Mcintosh said he asked
Collins. He replied that he guessed il
was In the pocket of his other coat and that
1t had been there for several months"
MCINTOSH was tnen questioned to the
discrepancy in the transaction with the
Chase National Bank, of New York, and
here the testimony was against the dealings
OF Walter Brown. In December of 1900, .
said Mcintosh, Walter Brown brought a
draft for $500 TO the bank from a man
i'm New York. 1t was placed in the bank
10 the credit of the National Manufacturing
Company, which is controlled by Brown.
The draft was then sent 10 the Chase
National Bank. but the New York man
refused 10 make his deposit 10 that bank
and the draft was returned TO the Indiana
National Bank at Elkhart. but no record
OF its return was put upon the books and
hence IL appeared that the bank had a
deposit OF $500 in the Chase National
Bank. In the meantime. however, the New
York man sent the $500 direct TO Brown
BY having been credited WITH IL I'm the
Elkhart bank. Brown made $4,000 out of
the transaction"
The prosecution completed their ques-
tioning OF Mcintosh at o'clock when
the court adjourned. The defense will take
up the cross examination OF him at 9
o'clock this morning.