The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1924-02-25
.M'CRAY IS HELD
BY GOVERNMENT
Continued From Page y

ment that, although the Discount and
Deposit Bank was a State institution.
ii was a member of the Federal Re
serve system and therefore was sub
ject to National banking laws.
The scheme by which McCray is
alleged to have defrauded banks
through the use of the mails is set
out at length. 1t is charged that
AcCray represented himself as the
owner of "cattle paper" which per-
sonal investigation had shown was
made by persons financially re-
sponsible, when such was not the
case; that he falsely stated the finan-
cial worth of makers of the notes:
that many Of these notes were made
and executed by him, names of
supposed makers being forged with
out their knowledge Of consent.
That he sent out false letters pur-
porting to be from supposed makers
of the notese, asking extension of time
for payment; that he gave as
4 collateral for loans notes which did
rot represent genuine business trans
ections, which were forged or had no
real value
That he invented company names
for farms actually owned by himself
and signed these names to notes to
make it appear these concerns were
indebted to him. that he dated notes
back thirty to sixty days and collected
the accrued interest from the banks;
that he changed the dates on some
notes and put them out a second
time; that he added his own indorse-
ment to these notes, falsely estimat-
ing his worth at more than II ,00O, 900,
and issued three financial statements,
dated Jan. 1, 1922; Jan. l, 1923, and
July 16, 1928, representing his prop
erty as worth more than it actually
was worth and placing his Liabilities
at a lower figure than the true one.
Alleged Illegal Acts
Counts of the postal indictment are
based on the following:
l. A letter to the Dale State Bank
of Dale.
@ a letter to the Farmers State
Bank Of Preble, recommending cattle
paper.
8. Letter to the Lincoln National
Bank Of Fit. Wayne.
4. Letter to First State Bank of
Dunkirl; recommending cattle paper.
3. Letter to Merchants National
Bank of South Bend, containing
financial statement of A. Messman
Company Of Joliet. H., and the Gov.
ernors financial statement of Jan. l,
1928.
6. Letter to Grandview Bank Of
Grandview, asking extension of time
of note of H. Reinhart Company.
l. Letter to North Side State Bank
Of Evansville closing with the words,
Have you received any State funds
.Jet?'
S. Envelope addressed TO Steuben
County Bank of Angola.
9. Letter to the Marion National
Bank of Marion.
Paper Recommended
10 Letter to w. H. O'Brien. for,
mer auditor of State. president of the
Peoples National Bank of Lawrence.
burg, beginning Dear Mr.. O'Brien,"
and recommending paper Of the Butte
County Land and Cattle Company"
They have purchased a lot of cattle
from Tie, the letter states. The Gov
enrmeLt contends this company was
nothing but a name invented by the
| Governor as owner of one of his
farms.
IL. Letter to Farmers National
Bank of Newcastle, representing that
A. Messman Company owned personal
property of $4,000, real estate worth
100000 and had liabilities of $4,000
also his own statement of Jan. 1, 1922.
II. Letter to Patriot Deposit Bank
of Patriot, saying the Morgan County
Stock Farm wished to pay 500 on a
note and renew the balance.
10. Letter 10 the Citizens Trust Com.
pany Of Jasonville asking for a loan
Letter dated Jan. 8, 1928. The bank
began business Jan. 8. 1928.
Bank Offenses Alleged
Counts of the national bank indict-
ments charge the following acts by
McCray and Morris:
/ Misappucation Of S29,013.5S.
/ 2. False entry in bank records.
8. False entry in report to Federal
Reserve Bank of Chicago.
4. and ). Misapplication of $50 in
each count.
6. False entry in bank records.
Z. MisApplication of $4,000.
s. False entry in bank records.
and 10. False report to Federal Re.
serve Bank of Chicago.
IL. Misapplication Of 100000
H. Misapplicstion of $22 ,0992S by
ovedraft.
49, Abstraction of notes aggregating
! $4S. 1878
IA Making false entry showing Gov.
ernor McCray's balance to be 1921
when there was an overdraft of
SAL ,O50S1.
! Is. Making false entry showing his
| balance to be s5924 when he was
ovedrawn 51,207SS.
16. False entry showing his bal
ance to be $2.01 when he was over.
drawn $27,459.59.
| II and IS. That McCray and another
| bank official conspired to violate ma
| tiOnal banking laws