The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-11-18

satisfactory, were the only witnesses
this morning.
Mr.. Hughel admitted Pfaff g.
Hughel Inc. is now insolvent and
was several days before he signed
receivership papers on April 8.
His criticism of newspapers CEN
tered on published information
that the prosecution of former Of
ficers probably would result,
This caused collapse of an ar
Tangement previously worked out
with T. P. Burke & Co, another in
veStment house. whereby officers
and statesmen of Pfaff g. Hughel
were to work for the Burke concern
and so per cent of their earnings
were to go into a trust fund for
the benefit of the defunct firms
creditors.
Walter Pfaff is to begin MS testi-
mony late today or tomorrow, &C
cording to his attorney, Fred E.
Hines, Noblesville His defense is
to be that his only connection with
the firm during the last two years
was in the capacity of salesman, and
that he knew nothing of the alleged
mailing frauds complained of by the
government. Mr.. Hines said.
Gould Have Saved Firm"
Mr.. Hughel insisted he believed
that if a reorganization were per-
mltted he could have restored GUS
toner losses. He pointed to i'm
proved market conditions since COL
lapse of his firm as confirming his
judgment.
The witness went back to his
first dealings with the holdings of
Mrs. Georgia Crosley, capitalists
widow, who has testified to losses in
excess of 100000 through dealings
with the firm.
He said he talked with Mrs. Cros-
ley about holdings in the ABC
Brewery Co. that they had pur-
chased for her. She agreed, he tes-
tilted, that this stock should be
available to the firm for voting pur
poses for collateral and for any
other purposes that would enhance
its value.
He said Mrs. Crosley had asked
be paid $4,000 monthly on securi-
Ces valued at about 100000 that
she turned over. Mr.. Hughel said
this sum was paid regularly each
month until Jan. 2. January and
February payments were late and
the company was unable to make
the March payment. he testified.
Made other Payments
In addition, he said, the firm made
other payments to Mrs. Crosley. One
payment was for $4,000 Just before
the bank moratorium. Mr.. HugheI
said this was done although the firm
was having financial troubles due to
unsettled conditions.
The witness said he was elected
president Of the firm in September.
1884. The company had passed
through trying period and it was
felt Mr.. Pfaf, on whom the burden
had fallen, was in need of a rest and
should be relieved Of responsibilities.
After that time Mr.. Pfaff functioned
merely as a salesman, he said. Also
during this time, Robert Robinson.
former treasurer, acquitted by di-
rected verdict, relinquished active
interest in Pfaff & Hughel and went
to st. Louis to take charge Of the
ABC brewery in which the firm had
become interested.
He recalled that every economy
IN the conduct of the business was
practlced and that in the last six
months Of 1884 the company was
able to reduce its obligations by
100000.
Denies Card Charge
He denied Mr.. Burke. at the con-
terence at which a reorganization
OF the company was discussed. had
taken home customers cards be-
longing to Pfaff & Hughel. He said
Mr.. Burke took some personal
papers of his and that the custom
ers' records, later purchased at the
bankruptcy sale by the Burke firm,
were not among them.
Mr.. Hughes said that he did have
at home records and accounts Of
Mrs. Crosley and that he had stud
led these prior to the bankruptcy.
After the receivership he notified
Receiver Albrecht Kipp that he had
these papers and subsequently re-
leased them.
Transactions of the company were
recorded properly. letters sent
through the mail to customers ac-
curately reflected the company's
transactions and at no time did he
or anyone else enter into a scheme
TO defraud. he insisted.
Mr.. Hughel said ne sacrificed to
save the company. mortgaged his
home, marshaled credits, borrowed
on his life insurance and did not
pocket any of the customers money.