Jasper County Democrat, Volume 8, Number 1, Rensselaer, Jasper County, 8 April 1905 — EXAMINATION OF THE McCOYS. [ARTICLE]

EXAMINATION OF THE McCOYS.

Bankrupt Bankers Examined On Various Matters Here Last Monday.—Their Memory Poor.

A, and T. J. McCoy, the bankrupt bankers, were examined before Referee Bowers at the court room Monday regarding several matters connected with the bank’s assets. The McCoy’s attorneys from Lafayette representing creditors were in attendance at the examination, as well as a number of local attorneys representing local creditors. One matter that was inquired into was three notes given by T. J. McCoy to the bank in February, 1893, of SB,OOO each, and which were entered on the bank's books as securd by mortgage. These notes never came into the possession of the trustee in baukruptcy and the mortgage was never recorded and is not in existence at this time, so far as known. E. L. Hollingsworth, who was at that time a partner in the bank, and who had made the entry in the books concerning the notes, was examined as to his knowledge regarding the execution of this mortgage. He remembered that a mortgage was executed; thought it was on the lands known as the Jordan township lands; did not know what had become of same, and could not remember description of the lands. Bert Hopkins, clerk in the,bank at that time, also remembered having seen such a mortgage ; said the notes for the $24,000 in question were kept by T. J. McCoy in his private box in the bank vault. - Alfred McCoy did not know anything about anything; didn’t know how much Tom owed the bank and knew nothing of any such mortgage. “Tommie,” Louie and Bert kept the books and run the bank. T. J. McCoy said that he had given the notes in question for money he owed the bank at that time, but had never executed a mortgage to secure them; said such a mortgage was drawn up by Hollingsworth but that he refused to sign it; told the latter that he didn’t think it was necessary; was positive the mortgage was never signed by either himself or wife; said these notes were kept with the other notes of the bank, were not in his private box and he did

not know what had become of them; said box was secured by a combination lock and was not opened by him until after Chapman was appointed trustee; was sick when the bank failed; opened said box in Chapman’s and Mose Tuteur’s presence, and Chapman took what papers he wanted from same and turned the rest over to him (Tom;) said J notes were carried as assets of the bank up to the time of its failure; did not know what had become of them and they had never been paid. Judge Thompson questioned Tom a little regarding some of his valuable jewelry, but the latter said that the jewelry they had belonged to his wife; denied having one piece that cost $3,500. Tom was quite defiant in answering the questions put to him by Judge Thompson, and carried the air of a much abused and persecuted pereon. Tom was kept on the rack about all the afternoon, and his testimony and that of the others examined was taken down by A. O. Reser, of Lafayette, who acted as official reporter at the examination. His telephone stock, he said, had been transferred to Delos Thompson along in the winter, previous to the bank’s failure, to secure a loan, and was now owned by the latter. - Asked regarding the Rensselaer Stock Farm matter, Tom said that the bank records showing the condition of said account was correct; the notes which the trustee has upon—mention of which is made in the report of new suits filed in another part of this paper —were unpaid and were in with the other notes of the bank, he supposed, when the bank failed; said Delos Thompson, one of the partners in the Stock Farm, had paid him $2,000 in January, 1904, and he had credited same to said Stock Farm account; the expenses of labor, stock, trotting campaign of horses, etc., and receipts of farm from all sources were kept in this acconnt; said that Rinehart had made some sort of settlement with Thompson regarding Stock Farm matter, but that he (Tom) as we understood him, had not made any settlement regarding same.