Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-11-17
M'CRAy SAYSF0UR
. KNEW OF BIG LOAN
Members of Indiana Board Of
Agriculture Named in
"a Bankruptcy Suit.
nv the Associated Press

n the Associated Press.
INDIANAPOLIS. Ind, November II.
-Four members of the state board of
agriculture knew that he had bor-
rowed s155.O00 from the board. Gov.
warren T. McCray testified in fed
efal court yesterday at the hearing
Oh the petition of three Fort Wayne
banks before Harry c. Sheridan. ref
cree in bankruptcy. to have the gov
ernor adjudged a bankrupt. The
governor named Harry Moberly,
ngesident of the board: ]. Newt
Rrown. financial secretary; William
Jones and Thomas Grant. members,
al; the men who had knowledge of
the transaction.
Brown declared some time ago that
the money was handed McCray to be
placed on deposit in the Discount
and Deposit State Bank of Kentland
of which McCray was formerly presi-
dent Moberly. Jones and Grant have
disclaimed all knowledge of the
, transaction.
previously the governor testified
he had put up ss7.746.45 chiefly in
nptes as collateral for the loan and
later told of additional collateral in
tae form of personal checks which he
had given the board.
Personal Check PoStdated.
tWhen he obtained a loan of $4,000
from the board on July IS. McCray
personal check on local bank and
lu mad been postdated July %.
- was making ARRANGEMENTS
then" said the governor, with In
sHD0.000. The negotiations were
nearly completed and on the basis of
that l made the loans from the state
bpard." He added that after it APP
pool" fund of sS5o.000 was assured.
Brown asked him for notes to cover
the remaining money he had borrow
ed from the board.
w j. Vesey of Fort Wayne, chief
COUNSEL for the petitioners, the
governor said he had given the notes
requested to Brown, and continued:
Thrown did not want it to show
that / had as much money as I had.
lie understood. and all the board
members that had anything to do
with 1t understood. that I was bor-
rowing the money"
"a. Notes In Own Name.
The governor said he had signed
the notes in his own name and that
they were made out to the board of
agriculture.
."'who did you give the notes to-"
.N6SSy asked.
ITO the secretary
- .;.Who else was present."
i@Jones and" the governor
paused. IT couldn't say. At different
times Jones. MoberIy and Grant were
in: my office. That's my recollection
of'it."
ITO what was the $4,000 applied"
Vssey then asked.
ITO take care Of debts and items
due" the governor replied.
Owing to the illness of Frank
McNeely, member of the Marion
county grand jury which has been
Investigating the financial affairs of
Gev. McCray, the investigation was
adjourned this morning until next
Monday. 1t was not believed that
any witnesses were questioned today.
Gov. McCray was directed to bring
into court Tuesday morning. when
the hearing will be resumed, finan-
c1al statement, as accurate as pos
sfb1e, covering his transactions.
Uncertain of Liabilities.
The executive said he did not know
how much his liabilities outside of
the creditors included in the list
formerly prepared would amount to.
He said that he felt with all the ad-
rertising the case had received all
other creditors should have notice
of the case and would have checked
up JON the amounts he owed them
He said that he would try to prepare
a he oP n S