The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1925-06-29

company for the Hawkins SyN# 81. &
which could be put in your ov Il n
pocket easily. H.#
"Of these 104, only third
were ever opened. Stock wa q e
In many which never opened l \. z
doors or did dollars worth of < S.
ness. Only two Of the comb W
ever made a penny, a total of
81, 400, while the accumulated rs
of the others ran into hundre 81
thousands of dollars. The HAY b e..
Company carried all this W.
stock at par value on its own n
and at one time its books sh
$1,000, 900 of this stock that waa lIz
worth a cent.
Sales Pay Dividends #S
"Until 1923, cash dividends
paid on these welfare stocks ou
sale of more stock. An endless cl
was established. Stock was paid
pay dividends, in order to sell nd
stock to pay more dividends. WI
the Hawkins Mortgage Comps
finally got into bankruptc court
these chattel loan companies had a
deficit of about S1,000,000. Worse
than that, the Hawkins Company
took q hold out OF as much as so
per cent of the money from stock
selling in these companies, and this
money never reached the welfare
companies"
Elliott then san the Government
would show that the Rural Credits
Association which had real assets
Of about 100000 the Cooperative
League of America with assets or
81, 700, 900 and the United. Home
Builders with assets OF about $1,000
900 were absorbed by the Hawkins
Company, stockholders being de-
frauded into exchanging their hold
ings in these concerns for worthless
Hawkins stock.
Blind" Companies .
He also told Of the formation of
what he said were concerns created
to defraud the public, the Cincinnati
Bond and Investment Company OF
Cincinnati. Ohio, and Bankers Mort
gage Company of Portland. The
former concern he said was nothing
but blind to sell Hawkins stock,
it's market letters" being prepared,
addressed and stamped at Portland
and taken to Cincinnati for mailing.
The company had an audit made
OF its book and when the audk did
not suit the officers another firm
was employed whose audit showed
assets of about $10,OO0,000," Elliott
said When the crash came. Gov
eminent auditors found the COM
pany bankrupt, he said, and the
public defrauded out of from
S4,000,000.
Jacob G. Denny Of Portland and
the firm of La Follettet & Brill are
representing Hawkins.
Defense Statement
Denny reviewed the history OF the
Hawkins family and told Of the or
ganization Of the Hawkins Company.
In order to get liberality, the
corporation was formed under laws
OF the State OF Delaware, he said.
He pointed out that Hawkins had
lived in Portland all his life.
Uniform system of accounts was
furnished the thirty Welfare Loan
organizations which were controlled
by the Hawkins Mortgage Company,
Denny said Prosecution prevented
the further operation and organiza-
ton of ten additional companies
which were incorporated.
Profits Was Aim
Denny said evidence presented
would show Hawkins had no idea
except to make money for the stock
holders and investors.
The economic slump which followed
the war. interfered with the plan OF
the company, and merging OF ad-
ditional firms became burden
which resulted in the company be-
coming bankrupt, Denny said. He
stated Hawkins realized only a
nominal salary. He cited the fact
that Hawkins put every dollar he
Ildu III lAG StaAClAlS ttAiA <CN va 80 @1NNN
money of his mother, sister, and
other members of his family, "as
evidence of faith in the project"
THE defendent was born an
erratic excited person. easily
stampeded," Denny said explaining
why Hawkins jumped his bond.
First Witness
George L. Coffinberry, of Column
bus, Ohio, formerly controller Of the
Hawkins Mortgage Company. was
the first Government witness. lie
testified that the company marked
up its assets on its books, and a sur :
plus was created by this means. lie
said the company spent more than It
made, and the excess OF expendi-
lures over receipts grew larger as
time went on. He was a star Gov
eminent witness at the trial last
year.
Opening of the trial marked the
end OF a long spectacular fight on
the part OF Hawkins to avoid trial In
Federal Court here. Fourteen other
officials and employees Of the Haw-
lSins Company and affiliated con-
Germs were tried and covnicted~here
on the same charge last November.
Twelve defendants appealed to the
United States Circuit Court Of APP
peals, where their cases now are
pending.
Hawkins first evaded trial by
jumping his bond OF $500 and dis
appearing. Several months later he
was arrested at Dayton, Ohio. He
then launched legal battle to avoid
removal to Indiana. The case was
Ia A.. II..IA.-l