The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-04-06

w. II. DIod9ett, staff correspondent
investigation OF Z. r. Hiatt's specula-
tons. The appended article from the
News is one of n series'
RICHMOND, Ind, April 6.-The spe-
cial committee that is making an in
vestigation of the affairs OF Edgar +.
Hiatt, former president Of the Dickin-
son Trust company, which was closed
a short time ago by the state banking
department after it was revealed that
there was a shortage of 1861 900 In the
bank and which has now been reopen
ed, has found that HATS name did
not appear in many deals in real estate
the committee says he made with
money and securities belonging to the
trust company. This was particularly
true in his methods of handling apart
ment buildings 's-ss~--@as sass.sf-r
Mr. HATS plan, as set out to the
g.committee, was to use the money and
securities of the trust company to
finance deal for an apartment, using
land dealers to carry the deal
through. His plan. it Is said. was to
sorganize a stock company. for the pur-
chase of the particular apartment prop
tIly At ldu III lulllu. L llo COllPduy
would issue common stock to two or
three persons in the company that was
to take over the particular apartment
building that Hiatt was after. Then
certain amount of preferred stock
would be issued to the members of
the company, but this stock had no
voting power.
Payment Of Dividends
These shares of stock would be reg
istered through the Dickinson Trust
company and the stockholders would
have no knowledge Of the actual own
ers of the securities that we're used in
the deal. The investigating commit
tee asserts that not only would Hiatt
take money and securities from the
Dickisnon Trust company to finance
the apartment deals, but he would take
money from the Dickinson Trust COM
pany to pay dividends on the stock
that was to buy the apartment
Besides this, it is asserted by the
investigating committee that Hiatt
would use the money and securities
of the Dickinson Trust company to
repair and maintain the property. Al
different times Hiatt was interested
in the Glass block. at Marion; the
Brock block, at Anderson; the Wayne
apartments; at Richmond: the Maxim
building, at Newcastle. AS far as has
abeen learned by the investigating com
smittee Hiatt at this time has no equit
les in any of these properties from
which the stockholders of the Dickin
son Trust company can get returns
The deal by which Hiatt obtained
an interest in the Brock block, at An
jderson, was started by Albert Gregg
real estate operator in Richmond. Mr.
Gregg said that Mr. Hiatt asked hin
to look over the building at Anderson
and later told him to take a deed tc
the building and manage the property
After six months, Gregg says, Mr.
Hiatt said that the building had beer
turned over to the Brock Realty com
pany.
What Records Show
An examination of the records a.
Anderson by the investigating com
'mittee shows that Albert w. Gregg
of Richmond, bought the Brock apart
ment building from Frank Brock, o
Anderson, for sum of approximately
100000. At the time of the sale there
were two mortgages on the property
one for $4,000 held by the Providen
Life and Trust company, of Philadel
phia, and the other for $33, 900 held b.
the Citizens bank, at Anderson.
The Brock Realty company, Of An
derson, was organized with capita
stock of $225,OO0, which capitalization
was later reduced to 100000. TIL
stockholders and officers of the Brocl
Realty company were Albert w
Gregg, president; Robert J. Buck, see
rotary, and Edgar F. Hiatt The $33
600 mortgage held by the Citizens
bank, at Anderson, was released il
July, 1921, by an Indianapolis bank
The understanding is that Mr.. Broc
in disposing of the property accepte
about 100000 worth of notes for tn
building and that some of those note
have later proved to be of doubtful
value. This was in addition to $500
in mortgages.
The understanding of the commi
tee is that S13,500 was the consider;
ton for the property when it cam
TO the Brock Realty company. In o.
tober, 1921, Gregg with G.. w. McLt
more, whose home is said to be j