Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-03-04

the Impractical financial deals OF Stpe
Claude NJ Worley, special Investigator
for the Marion Criminal Court who Is in
charge of the Sipe case for the State. is
summoning witnesses before the grand
jury following an eight-hour statement
made by Mr.. Sipe at the county jail yes
terday.
1t is admitted by Mr.. WorIey "star-
Ting disclosures have been made by Mr..
Sipe in his lengthy recital to him, but he
refuses to make further comment. Ii is
understood Mr.. Sipe has named at least
one man who knew the source Of Sipe's
money was a trust money which was in
his keeping as a public fund. During an
interview with newspapermen on the day
Of his arrest, Mr.. Sipe admitted zone
man" knew the money which he was
using came from the trust fund.
STATE WILL GO TO
BOTTOM OF CASE.
The State, 1t is understood, is pre-
pared to get at the bottom OF this state
ment on the theory Mr.. Sipe during an
money was induced to use county money
on the suggestion of one man.
It is known Mr.. Sipe purchased other
stock in local enterprises In addition to
those mentioned In a list now on file in
the county auditors ONCE, showing the
certificates Of stock he turned over to
the Hartford Accident and Indemnity
Company. Certain alleged transact ons
are not revealed in this list tecause Sipe
was able to sell back certain certificates
of stock and IN this way was able to re-
imburse, it Is said, the depleted trust
fund before be admitted his gigantic
losses.
1t remains to be seen II Prosecutor
William P. Evans will probe transactions
Of Mr.. Sipe in addition to those indi-
Gated in the list Of certificates OF stock
turned over to the bonding company in
Sipe's efforts TO reduce possible loss to
the bonding company on his official bond.
! 1t is admitted b. 1me officials who have
aided in an IL stigation into Sipes
manipulations Of public money. It is diff
cult to draw the line between legal ex-
penditures and illegal manipulation Of
public money.
SELLS STOCK TO
COVER SHORTAGE.
That Sipe bought stock, valued at
1000, in a local enterprise during the
latter part of 1920 is known to a certain
county official. 1t is said Sipe loaned"
these certificates OF stock to 3 man whom
Sipe mentioned in his first public state
ment That stock later was recalled,
:
Sipe 10 cover up" his losses, 1t is said.
Investigation has resulted in the dis
coyery that shortly before Sipe admitted
his losses and submitted 10 arrest that
he attempted to obtain money by selling
his residence, in which be later signed
away his interests TO the bonding com
pany. Mrs. Sipe has refused TO sign any
papers conveying her share in che prop
erty to the bonding company.
The prosecutors office is cooperating
with County Clerk George V. Coffin in
obtaining certificates OF stock and SINH
lar certificates given to Sipe at the time
he purchased stock with county funds.
1t is the theory Of Mr. Coffin any In
dividual who obtained loans from Sipe in
money which was a part Of the county
trust fund, those individuals merely are
trustees Of such money and have no legal
right to IL. Mr.. Coffin has made demands
through his counsel for the return OF
the money.
Today is the last day Mr. Coffin will
wait 20 obtain such money and stock GER
tffcates as he intends to place all names
OF users Of money loaned. by sipe as
well g those who sold sipe stock in the
hands Of the prosecuting attorney. Mr.
Coffin has stated such Individuals must
return the money "or 90 to jail"
In the Circuit Court, John H Chand-
Ter has asked for the appointment Of 8
receiver for the Universal Air Compressor
Company. Chandler alleges the compan,
is indebted to him IN the sum Of S3O50
for services. ThisI is the company In
which Si3e invested heavily Sipe turned
over to Mr.. Ravens, certificates Of 4S7
shares Of stock. par value OF S24, 1870.
according to the list on file in the
auditors office.
The extent of Mr.. Sipe's manipulat!ons
Of public funds and his vast expenditures
: in stock only is limited at in the list of
holdings turned over 70 the bonding
company. Indications now are Sipe used
public funds for at leas; a year. Mr.
: Sire, at no tine in his public statements
has been definite In giving the date on
which he first forgot his oath and useo
he says. came running to him many
times.
PAY ROLL LARGER
THAN INDICATED.
Investigation also shows Mr.. Sipe's
pay roll for his office help was larger
than indicated in his orders given 70
Mrs Mary Gunter Bell, who was Sipes
cashier. 1t is known, in one instance at
least the pay roll showed a certain figure
as salary and slpe paid the balance out
OF his own pocket" Il is explained
! this unbusinesslike method was used be-
cause he didn't want the others in his
employe learn that he had increased the
salary of certain clerks
/ In his first public statement concerning
/ the method used in spending public
money, Mr.. Sipe stated his pay roll was
heavier than any ether clerk and that the
burden OF carrying 1t caused him much
concern IN meeting hi sobligations.
The Sipe case probably is the strangest
in the annals of the misappropriation Of
public funds. His gigantic losses were
not discovered until be had admitted his
J guilt Even when rumors last Monday
/ became so numerous his loss was heavy,
court house attaches and friends laughed
AT the rumors. Even during the trying
hours before he admitted his guilt, Sipe