The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-03-25
H|ATT'S DEALS
PILED UP into
BIG EQUITIES
Takes Original Poor $4,000
Investment and Runs 1t Up
to $660,000 Worth of Un-
desirable Securities.
GOV. BREWER TALKS


used by Edgar F. Hiatt, its deposed
president, for speculations that went
into large figures.
The $4,000 was used by him as an
original investment, which was traded /
and re-traded in Chicago property and /
southern lands until the total of these |
trading operations amounted to more |
than $660,000 of undesirable securities /
AS the trades were made from time |
to time it was necessary to use more |
money to protect the equity already in
the property, and it is alleged, that |
securities belonging to the trust corr
pany and money belonging to Hiatt /
personally. went into the trades in |
order to work out the original invest /
ment.
Bad trades and general business
conditions rolled up the investments !
until they reached the figures discov- !
cred by the state bank commissioner. !
Orders Note Returned.
Definite suspicion that something |
was vitally wrong arose about five |
weeks ago when note for SAL, 900 !
signed by Mr.. Hiatt, was presented /
for payment through a local bank. |
This note was made payable to an
indianapolis man and was ordered re
turned by Mr. Hiatt. who said he would !
arrange for its payment in that city. I
This note came at time when local !
banks were receiving many inquiries |
from different sections of the United |
States about the credit of Mr. Hiatt, !
indicating that he was attempting 10 !
borrow on large scale in number /
of places.
The investigation that followed re-
suited in the discovery of Mr.. Hiatt 5 /
irregularities in the Dickinson Trust (!
company and the closing of that inst |
tuition until its stockholders could
make good inadmissible assets in eA
cess of s660.000.
Deals Cover Wide Area.
Mr.. Hiatts operations seem to hnye
been confined to real estate specula
tions and their trail leads through In
dianapolis and other Indiana cities, to
Chicago, and through the south. Con
nected with Hiatt in his land deals
have been a number Of land operators.
one of whom acted as his representa-
tive in his trades and in his negotia
tions for loans in other cities. Mr..
Hiatt's operations extended from city
property to southern plantations.
Some of the land operators, who
have been connected with Mr.. Hiatt
in his extensive trades, declare that
If he is given time he can work him
self out of his present position without
any loss of the capital he has used.
Mr.. Hiatts trading operations COW
cred deals in the following cities:
Chicago.
Indianapolis.
Marion, Ind
Grand Rapids, Mich.
Muncie, Ind.
Hamilton, Ohio.
Clarksdale. Miss.
Greenvlle, Miss.
Somerset La
Anderson, Ind.
Dayton, Ohio.
Deal With Mr.. Brewer.
One of Mr.. Hiatt's transactions was
with Ex-Governor Earl Brewer of
Clarksdale. Miss. Mr.. Brewer holds Mr..
Hiatt's note on a transaction and
among the nadmissable assets turned
over to the trust company by Mr.
Hiatt was note signed by Mr..
Brewer.
CLARKSDALE. Miss. March Is
Ex-Governor Brewer said today he
knew all about Mr.. Hiatts dealings in
that section.
He said he had met Mr. Hiatt several
times in Chicago. the first time being
last November. He was introduced
TO Mr. Hiatt by Clyde l.. Peck who is
understood to be Mr.. Hiatts repre-
sentative.
In January of this year Mr. Peck
negotiated for Mr.. Hiatt with Missis
sppi bank an unsecured loan of
$4,000 Mr.. Hiatt owns about so
, mules implements and other personal
property connected with his land hold
ings, ALI of which have been attached
on account of Indebtedness. according
TO Mr.. Brewer.
Ex-Governor Brewer stated that on
March 20, a friend at Clarksdale re-
eeived telegram from Mr.. Peck, who
was then at the Hotel Astor. New
York. telling Mr.. Hiatts trouble at
the Dickinson Trust company and stat
ing that Mr.. Hiatt was personally in
yolved only to the extent of $4,000.
Mr. Brewer further said that Mr..
Hiatt was involved around Clarksdale
in deals and that he felt it would pay
the Dickinson Trust company to send
man there to investigate the situa-
ton.
INDIANAPOLIS. March 25.-A num-
ber of indianapolis men participated
more OF less directly IN real estate
transactions with Edgar F. Hiatt. for
mer president of the Richmond Dicl1in-
son Trust company, now closed by
order of Charles w. Camp, state bank
commissioner.
Some of the Indianapolis men we're
interested in deals by which Mr.. Hiatt
eventually acquired real estate securi-
ties which Camp ordered out of the
banks assets. The banks stockhold-
ers now are replenishing the assets by
assessments of $205 share.
The local connection came to light
with the suit filed by Robert A. Leavitt
an Indianapolis dealer in Mississippi
- lands. against George E. Meyers, an
" indianapolis and Marion land dealer
and G. B. McLemore. a Mississippian
in the superior court here this week
INQUIRY into the nature of the suit
led to the various connections with
Continued on Page Three)