The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-03-31
hiatt Is SUED
FOR $225,OOO
IN MISSISSIPPI.
Alleged Failure to Fulfill Con-
tract to Underwrite $3.50,
600 Bond Issue on Cooper
ative Stores Basis Of Action.
EX-GOV. BREWER TALKS


dent of the Dickinson Trust company
of Richmond, Ind to fulfill his contract
to underwrite a s450,000 bond issue
on the Tchula Cooperative stores. was
the cause of the s225,000 suit now
pending against the banker in Wash
ington county chancery court, ex-Gov-
ernor Earl brewer told reporter to-
day. At the same time Governor
Brewer explained how the Indiana
bank happened to hold two notes for
$4,000 each, and which bear his name
Mr.. Brewer said: Hiatt agreed
last November to underwrite the bond
issue as soon as an abstract was fur
nished and the title passed upon. |
complied with my part of the contract,
but after the title had been approved
Mr.. Hiatt failed to fulfill his agree
ment. He kept putting me off from
time to time. and finally said that on
account of the money market and
financial conditions he would have to
make loan of s225,000 on the bonds.
The balance to be paid when condi-
tions became easier.
Advances $4,000
About this time | needed money to
advance me 10000 on my draft. Sub
sequenty | gave note for this
amount. The agreement / made with
Mr.. Hiatt was that this amount was
TO be deducted from the proceeds of
the bonds.
THE bonds were never taken. Mr..
Hiatt wrote from time to time, always
putting off the date on which he was
tn carry ont his
Regarding the other $4,000 note
which bears his endorsement, ex-Gov-
ernor Brewer said: Il bought piece
of property on which A. A. Denslow
had given a note for $4,000. Mr.
Hiatt agreed to take up this note and
hold it until the bond purchase was
consummated. 1t now appears that he
put his note in with the assets of the
bank
MIR. Peck wrote down here that of
the s660,000 worth of mortgage paper
held by the bank, Mr.. Hiatt owed the
institution only about $35 900.
"The suit for $225.000 is for breach
of contract for the failure of Mr. Hiatt
TO carry out his agreement to under
write the bonds" Mr.. Brewer con-
cluded.
The foregoing dispatch explains how
two notes : $4,000 each became part
of the undesirable assets of the Dick
inson Trust company, which Charles
w. Camp state bank commissioner
ordered removed when he closed the
bank on March Is, and which were re-
placed by admissible securities when
the trust company opened it's doors on
Wednesday of this week
In supplementary statement issued
on March 10. Commissioner Camp, re-
ferring to these notes, said:
"In connection with these trades he
fE. F. HAITI has taken the notes of
a. A. Denslow and Ex-Governor Earl
Brewer of Mississippi for $4,000 each,
which are carried on the books of the
bank at s14,453.52."
CLARKSDALE, Miss, March 81
The Planters Bank of Clarksdale.
Miss, is suing E. F. Hiatt of Rich
mond, Ind, for $4,000 on a note Mr..
Hiatt is said to have given the bank
in payment of trust deed on the
Napanee plantation of $500 acres of
delta land in Washington and Bolivar
or Sunflower counties. The place was
bought by Mr.. Hiatt with four mort
cages on 1t, of which the small one
held by the Planters bank was the
last.
During the last few days the bank.
according to Messrs. Johnstone and
Wilson, who are representing it, has
issued out writ of attachment on
any property Mr.. Hiatt may possess
in Mississippi, including his equity in
the Napanee plantation
Tho So5 000 mort 20 nwnad IN, a
Planters bank was transferred to that
institution by c. r. Smith c. l.. Peck
of Chicago had no connection with the
Napanee plantation deal, so far as is
known.
GREENVILLE, Miss, March 81. -
G.. l.. Peck of Chicago is interested in
the j. w. Cooke 1,760-acre plantation
in Washington county known as the
Camelia place, and also in a way in
the Napanee plantation bought of Ed
gar F. Hiatt. of Richmond. Ind. ac-
cording to the records of the chancery
clerk here.
The records show that Cooke sold
the Camelia property to C.. l.. Peck.
On this Mr.. Peck owes $4,000, subject
to a mortgage to the Maxwell Invest
ment company, and also $4,000. indi-
Gated by mortgage to ]. B. McLe-
more OF Cleveland. Miss.
The Napanee plantation was sold by
Corinne Smith McLemore and C. r.
Smith, in September. 1921. to Edgar
F. Hiatt. subject to an Indebtedness
of $66,400, due Earl Brewer, former
governor of Mississippi, also subject
to an Indebtedness of $S9,3435O to the
Planters bank of Clarksdale: also of
$S,33333 due Thad B. hampton; also
of $111,148 due to T. d. j. Okeefe end
Ed. G. Brewer
The suit against Mr. Hiatt is based
on an alleged promise of Hiatt to pur-
chase the bonds of the Tchula Coop
erative store for sum fixed at over
100000, which promise it is alleged,
was not kept.
Mr.. Hiatt owed c. r. Smith SEE, coo,
! the notes being sold or transferred to
the Planters bank of Clarksdale.
Three suits are filed against Mr.
Hiatt, one by the Planters bank of
Clarksdale, one by Earl Brewer, and
one by Malone and Hyde. the suits be-
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