Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-09-04
Defense Begins By Max
ing Attack on Receiver
Cavanagh.
SEEKS TO PROVE
"BlG FIVE" BACKING
Quarton Also Tries to Show Cavan.
aeh's Bank is Backing Attorney
General Havner in Private Deals
Politics and High Finance involved
in Messengers Manipulation of
Packing Notes.
Special to Times-Republican.

Special to Times-Republican.
Des Moines, Sept. 4.--An effort was
made In the Associated Packing Com
many hearing in Judge Mccal1s
court here today to show that Re-
ceiver John Cavanagh, of the COM
pany had financial interests to serve
In acting as receiver Cashier John
Hogan. OF the Des Moines National
Bank. with which Cavanagh Is con-
nected, was called to the witness
stand by attorney w. B. Quarton and
asked whether or not the bank had
loaned money to the big Five"
packers. He said not to his knowledge
He was also asked If the bank Mad
loaned money to Attorney General
Havner or business concerns in
which Havner was interested. The
court ruled that this was outside the
present inquiry, and he was not re-
qutred to answer
So the stock statesmen Went hack
and showed him how Armour. Nor
ris. Swift and others Of 4he "gip
rive" We're declaring stock dividents
equal to 100 per cent a year on par
value. and sold him $4,000 more.
He fell so easily the second time
that they went back again. This time
It was harder shedding, Mr.. Hibbs
mad invested about all the loose
money he had.
So this time they told him that
1hey would take notes, which would
De renewed year after year as long
as ne desired. and in the end Asso-
clated Packing dividends would pay
poth interest and principal on the
for $1,000.
That wasn't the end. The stock
statesmen went back a fourth time.
Mr.. Hibbs had become suspicious.
They weren't killing at the Asso-
lated Packing plant yet. But the
statesmen had still another trick in
their bag. They told Hibbs that If he
would subscribe to $4,000 more, and
mold 1t little while, they would re-
sell all or any part of it for s125 a
snare, and If he would hold 1t a little
longer they would get him $50.
Ihey agreed to stipulate upon his
application that, II he ever wanted 70
get rid Of his stock. they would take
1t OF his hands without loss to him.
MI. Hfbbs fell still another time.
Politics and High Finance.
me mixing Of politics, state Office
ana high finance in iowa will be
laid bare when George Messenger.
former banking superintendent. Is
placed upon the stand in the Asso-
clated Packing hearing now on he-
fore Judge Mccall.
Questions which the state u,,,
probably hurl at Messenger when ba
takes The witness stand will str,n
the stockselling stage in Iowa of ali
It's scenic effects. and leave exnosed
upon the stage set Of wires ona
might view did he go behind the pro-
tectlng cover of the Punch and T,dv
show. wy
Messenger. at the time Of hts ra-
slgnation from the office Of bankin.
superintendent Informed the write,
That he was to engage in no snecia,
business, although I have several at
tractlve offers" When pressed furthe,
at that time Messenger said: Tan
going to buy commercial panar fo,
while. Will have an office II the
Mechanics Savings bank. T. mad.
100000 buying paper this past year,
(1919). -
| Big Money For Messenger.
That Messenger made 100000 Is
probably true, as further investiga
ton of his part in Midland Packine
| and Associated Packing notes. ar.
credited him with making $4,000 fol
his part in Iowa's stockselling game
Not only did Messenger help clea,
notes given by farmers for Midland
band Associated Packing compan,
stock, but he further informed bank.
ers. that certificates of deposits 6b-
tanned thru discounting stock notes
were good paper" for them to carry
Messenger stepped along even taste,
| than the mere recommending Of such
notes and certificates of deposit tc
Iowa banker. In certain instances he
accompanied bankers to Sioux City
and with them inspected the Midland
| Packing plant, in order to show them
that the Midland stock notes were
well secured.
Messenger apparently used his sell.
ing ability as well as his office ir
helping clear the stock sales notes
given by farmers of Iowa, to high
pressure statesmen employed by the
Midland and Associated companies
as fiscal representatives.
| Messenger was we'll informed as
to the banks in Iowa that had a
surplus on hand. With his assistant
banking examiners, Miller, Rowe
and Morrisey out on the road, send
Ing in a daily report on banks here
and there, Messenger was keenly
alert to the money situation in Iowa.
kand held full knowledge Of just what
banks could afford, from his view
point, to take promotion notes and
stock sales paper.
Effective Combination.
Over Millers signatute there ex-
lists letters today, showing that he
informed bankers that Rowe would