The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1924-04-25
MarShfieId (Ind,) Banker
Says Paper Was Purchased
Upon Information Given by
State Examiner, Who Later
Obtained 1t.
PHOTOGRAPHIC COPY Is
INTRODUCED IN CASE
Government Expects to Conn.,
pIete Evidence by Satur-
day Evening" District At
tOrney Says Legislative
Influence Is Indicated,

That the Marshfield 0nd) bank was
induced to buy a S1,25O-note, signed
a. E. HERMAN & Co." and Endorsed
by Governor Warren T. McCray. on
the strength of a financial statement
Of the company sent them by McCray
was the testimony of H. G. Chandler
cashier of the bank, today in the Fed
eral Court trial Of the Governor on
charges of using the mails to defraud
The note is one of those the Gov
eminent alleges McCray forged and
sent through United States mails.
Chandler testified he had no knows
edge of the makers financial condi-
ton except the statement, which he
said stated the concern was worth
s155,0OO in land, cattle and equip
ment.
The Herman Company was a
small road-contracting firm in which
Governor McCray was a partner. the
Government contends.
Official Bought Note
The note was bought from the bank
Oct. s. 1928. by Thomas D. Barr, dep
Auty State bank examiner, the witness
said. Barr took all the correspond
ence and the papers connected with
the transaction, including the fnan-
cial statement. according to Chandler
7 sold this note to Barr" Chandler
testified. He asked for all the pa
pers. letters and correspondence con
nected with it. He said he wanted
them to help him collect the note"
You don't know what became OF
that original statement, do you?
asked District Attorney Homer FL
lott.
only what I was told" Chandler
replied
You had Photographic copy
made. did you not?"
Yes"
The Photographic copy. with tbs
letter which accompanied the original
was introduced into evidence. Accord
ing to the Photographic copy, the
statement said that Herman & Co..
owned land worth $3.50, 900. equipment
valued at $4,000 and cattle worth
SIS. 600. totaling 100000. Deductine
debts Of S35. 900. the net worth Of tbs
company was s155.OO0. according &c
the photographic copy of the state
ment.
Barr Gave Note Information"
The witness testified that previous
10 the banks buying the note, Bari
had given him general information
on the character Of ''McCray notes"
After he received the information
from Barr. the bank bought the note
Chandler said.
. The witness was not allowed to an
IsEwer. A question as to the substance
of the conversation between Barr and
Chandler, Judge Albert B. Anderson
sustained an objection made by de
Tense attorneys.
Elliott said the Government might
complete its case Saturday.
Others who testified this morning
were E. F. Hadley. president Of the
Farmers State Bank of Mooresville
Walter Hungerford, secretary of the
SheIbyville Trust and Savings Com
pany: Henry H. Carson. farmer. OF
Kentland. and Frank A. Carson OF
Fowler, who said he was "a director
Of a bank"
Judge Asks Question
Correspondence between R. W
Aiken, cashier Of the Peoples State
Bank of Sullivan, Ind. and McCray
were introduced when Aiken took the
stand. One of the letters from Aiken
read:
Il am sorry we cannot use more
of your paper"
Are you sorry now?'' Judge An
dersOn asked.
The witness reply was lost in the
laughter Of bankers awaiting their
turn on the witness stand.
Another letter from Aiken stated:
1t would please all of us very much
If you could use your good offices to
increase the State deposit in our bank
70. say at least SIS. 1000"
The Governor owed the bank money
on notes it had discounted. Aiken said.
The Governors reply to the last let