The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1923-11-23

cure a loan Of $40, 900.
That about the same time he
paid $4,000 to the Discount and
Deposit State Bank of Kentland
That on two occasions, once in
September and once in October he
paid 5000 to the Newton County
Cemetery Association.
That he paid $1,000 to the
Marshfield Bank of Marshfield.
Preference Charged
All these acts, the petition stated,
were done for the purpose of giving
certain creditors preference over
creditors.
Attorneys for the banks said the
purpose OF the amended complaint
was to show that bankruptcy had
been committed by McCray after he
had disposed of all farm property and
could not claim exemption on the
ground that he was a farmer or tiller
Of soil within the meaning OF the
bankruptcy statute
Representation was made by Gov
ernor McCray to persons who SUD-
scribed TO the Goodrich pool Of $780,
600 to meet McCray's most pressing
obligation that they were to receive
600 acres of land more than actually
was turned over to them, former
Governor James P. Goodrich, presi-
dent Of the National City Bank,
testified.
He said 1900 acres with a 800, 900
mortgage on them later were trans
ferred to the pool in place Of the
1000 acres. which were not to have
been incumbered with a mortgage.
Everybody understood the night
before we subscribed to the loan that
there WERE to be !, ,oDe more acres than
we actually received" Goodrich testi-
fed. Governor McCray represented
to us from the very first conference
that the McCray Farms Realty Com
pany owned $500 acres. That was
1000 acres more than the company
owned.
The hearing was adjourned at noon
until Dec. 3, when Referee Sheridan
will continue to take evidence here.
McCray Resumes Stand
McCray took the stand for a few
minutes at the opening of the session
today. He testified that between April
1. 1920, and May 1. 1921, he paid to
the Savers Grain Company OF Chi
cago. of which he was an officer and
which is now in receivership. $50, 600.
In the same period, he said. he re-
ceived $4,000 from the company. No
explanation of the payments was
made.
Goodrich then took the stand He
testified he has been president of the
National City Bank for one year, and
has been connected with the banking
business for twenty years.
Were you active in making up the
trust agreement we have been refer
ring to as the Goodrich agreement"
81 was"
when did you have your first com
munication with McCray on the sub
ject Of raising a fund.-"
Aid Asked in June
"I think it was in June. My best
recollection is he asked me to raise
some money to relieve his pressing OBJ
legations"
How many conferences did you
have?"
Il couldn't say. Conferences oc-
Cured every two or three days"
Did you have an opportunity to
investigate McCray's assets?"
mo, except as to those held under
our trust agreement"
Did you pay over for McCray, on
-
yes; $155, 900 to the Discount and
Deposit State Bank at Kentland;
S155, 900 to the Indiana board Of ag-
riculture; $4,000 to the Fletcher
American National Bank, and $40, 900
to the Aetna Trust Company, to pay
the expenses of operating the trust"
"How was the money transferred
to the board Of agriculture?"
"I don't know exactly. 1 was in
New York at the time"
"You took over 10000 shares of the
common stock of the Warren T. Nc
Cray Farms Realty Company for your
trust, did you not?"
Trustee Has Control
st think that was the amount. It |
WAS SllOu3A " 6AfC lAlO <ASbiAeI IL NOb
Company control as trustee"
"You also took sos shares of stock |
in the Orchard Lake Stock Farm
Company"
Eyes; all but the qualifying shares"
"What property did the Warren t. |
McCray Farms Realty Company |
have?"
-Four thousand two hundred sixty
two acres of land"
What value do you place on the
stock in the company, on Oct. 6,
1922"
twenty-five to fifty cents on the
dollar" Goodrich answered. There
"a no sale for it now."
"Would you place the same value on
It four months previous to Oct. 6?"
Yes
what was the nature of the assets
Of the Orchard Lake farn?''
Growing crops. feed. stock, agricul-
tural implements, etc"