National Republican. (Washington City (D.C.)) 1872-1888, 1886-02-27
THE LuMsDEN-K1Ne METHOD.

cihuons Tor All Their STOCKHOLDERS
Are worth-A Spicy Session OF the
Eleventh in Georgetown.
The stockholders OF the Eleventh Build
ing Association at their annual meeting at
Goddard's Hall, in Georgetown, Thursday
night came 10 the conclusion that the
financial condition OF their association was
in a most deplorable state; that their money
had disappeared without any accounta-
bility. As John w. Lumsden, now OF New
York, but formerly OF Georgetown, and
whose name figures in the manipulation Of
stock to an extent amounting TO over $780,
OOO, was present, II was thought that some
OF the confused transactions would be OK
planned, and the real status OF the associa-
ton established. But when that gentleman
did come forward TO make his statement
what he said mystined matters more than
before, and lead many 10 believe that he
knew moro about the doubtful dealings In
shares In which bis name had been used
than he cared to tell. He had a remarkably
nit him to tell the number Of original
shares Of stock taken out by him individ-
ually, and as an explanation what he said
entirely failed Of its purpose.
Immediately after VIM. Clabaugh, the
president, had called the meeting TO order
he read letter from Mr.. VIM. King, who
had been acting secretary. He stated that
II was impossible for him to furnish the re-
port as promised. When he assumed the
duties he thought II would be but short
time before the secretary could relieve him,
but his eyes were In such a condition that
all hope must be abandoned for the present.
He said he had examined the books and
found them In such state that II would be
amost necessary to open new ones and run
up-almost entirely new-each individual
account. In consequence Of his increased
private business aud an affection OF the
eyes he had been compelled to abandon the
work. With the return OF Ferdinand
Kings sight he thought much OF the con-
fusion In the accounts might be set right.
Mr.. John I. Leetch wished to make an
explanation before any business was trans
acted for the benefit OF the stockholders,
and then proceeded TO show how the finance
committee had examined the accounts OF
the secretary and treasurer.
While in the midst Of his explanation the
president had taken up the check book aud
was engaged In running pen through his
signature to number of blank checks In
the book.
II object to the president tampering with
books while the association is In session.
said Mr.. Small, who discovered what the
president was doing.
Mr.. Goddard did not understand what
Mr.. Small objected TO.
dent marking out his name to number Of
blank checks in the book. want the
books TO stand as they are.n
~ thought was doing right to do IT,"
said Mr.. Clabaugh.
"Then what did you sign them in blank
for" fred back Mr.. Gold ard.
~ don't think there has been president
OF building association in Georgetown
replied Mr.. Clabaugh, "who did not do II
and have to do It,"
Mr.. Leetch, getting chance TO go ahead,
said that the finance committee made their
reports from the records as they found
them, but the fact was the books were
changed after these reports were made. He
showed how the association, In the account
OF j. w. Lumsden IN 1888, had been de-
frauded ont OF s., 496 by charges, and later,
in the same manner, out OF $3.50.
Ut strikes me that this is forgery" put
in Mr.. Clabaugh.
~ am not here" said Mr.. Leetch "to
say what It is, but to stand by the reports
of the committee-as made"
He then took the check book aud showed
how j. W. Lumsden, by Ferdinand King,
trustee, had gotten out Of the association
$40,67l.s2, and with Kings personal ac-
count, allowing for all which had been paid
In, the two accounts together were short to
the association $31 900. II this money had
been properly used, the 272 shares OF stock
now. outstanding could have been can
celed at this time, with the allowance
of per cent. The accounts of King and
Lumsden were largely in arrears, not hav-
ing paid anything In since August, 1883,
but since that time King had bought
thousands Of dollars OF Of shares.
in September, 1884, King, as attorney,
paid In $3.50 to the credit of Lums-
den, and the records showed that
since then he has drawn checks through
King, as trustee, for over $4,000. The
committee had been asked why they had
not found out this trouble long ago, and
that could easily be explained. When they
inquired how loans were secured, they were
told by the secretary by stock In other asso-
Citations. The committee asked II this stock
was paid up, as they had no right to ex-
anime the books Of another association, and
the secretary, who was also secretary OF the
other association, would tell them that 1t
was all paid up.
sand not one dollar OF the stock paid
for,n interjected Mr.. Mcintyre.
"Who determined on the validity OF these
securities 81 inquired Mr.. Goddard.
"That was the work OF the board Of di-
rectors," answered Mr.. Leetch.
'"But who did IT," said Mr.. Goddard.
1--WE don't know who did it," replied Mr..
Leetch.
"That $13, OOO," called out Mr.. Lumsden,
"drawn out in the name Of John w. Lums-
den; what became Of 1t. Where did that
money goSn
swat until get the check book and
win tell YOU" quickly replied Mr.. Leetch.
1854, check to Ferdinand King, attorney
forJ. W. Lumsden, for $3.50, was drawn
4 and paid. There are several others all like
this, and all went the same way"
"What was the Endorsement on these
checker" asked Mr.. Lumsden,
"They are not here to show" was the
answer.
@. p. Williams inquired about the case Of
Miss Fannie Lowry, and when her name
first appeared on the roll book, and was in
\ formed In the year 1889.
show much money does the book show
\ that she got ?" he asked.
1.-TWO thousand two hundred and fifty
dollars, and that she never paid In but $60,h
II said Mr.. Leetch.
In reply to another question, Mr. Williams
4 was informed that she still held ten shares
and had never held more than fifteen.
Mr.. Williams said that under date of Dec
ID, 1855, a letter was received by gentle
man in which Ferdinand King said that
x "statements have appeared In the daily
y papers of this city with regard to Miss
Lowry's affairs in the Eleventh Building
Association which are, through some mis-
take, entirely erroneous. She has ten
shares in the association, has never received
any money In advance, and has every month
since she purchased her shares promptly
paid her dues TO the association
Mr.. Leetch took the books and showed
where Miss Lowry was charged with loan
of S2,250.
Mr.. Williams said that Mr.. King, by his
letter, admitted that Miss Lowry had never
received dollar Of the money drawn out
in her name and which was received by
Ferdinand King as trustee.
'If Miss Lowry did not get the money,
who did ~ asked a stakeholder.
difference will tell YOU" replied an
II other