Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-06
CITIZENS INDICTED
Charged With Fraud by Local
Grand Jury.
AN INSURANCE CASE
MISREPRESENTATI AND CON-
SPIRACY ALLEGED.
Interstate Live Stork Association Cause
INSURANCE CASE
Interstate Live Stock Association Cause
for All of the Trouble-Not
in the City.

The grand jury today reported an indict-
ment for conspiracy against Orrin G.. Sta
pies. proprietor of the Riggs House and
prominent as resident and business man
of this city: Tracy l.. Jeffords of the local
bar. who formerly served assistant
United States attorney for the District of
Columbia: John l.. Fehr and Elisha H.
Fitch
The indictment alleges against the de-
PENDANTS common law conspiracy to cheat
and defraud. and statutory conspiracy.
under section $40 of the Revised Statutes
of the United States
1t is charged that the defendants unlaw
fully ccnspired to cheat and defraud. by
means of false pretenses. the citizens of the
District and Others by falsely representing
that the Interstate Live Stock Insurance
Company of the District of Columbia had a
apital stack of slOooO and a legal reserve
fund sufficiently large to mature any and all
contracts with policy holders: that the COM
pany had paid up capital of 100000. and
that the same was in money on deposit in
the Washington Savings Bank.
In pursuance of the alleged conspiracy, 1t
Is set forth in the Indictment, Col. Staples,
October last. obtained from the Washing
tor Savings Bank a certificate of deposit
for s1GD.toO in exchange for a certain false
ard fraudulent check" drawn by Staples
on the Columbia National Bank for 100000
Staples. ii is added, Endorsed the certificate
of deposit To John l.. Fehr. treasurer of the
Interstate Live Stock Insurance Company
and allowe1 Fehr to make duplicate and
copy of the certificate of deposit, with the
Endorsement written on the back. Further.
II is charged that Fehr the same day in
dorscd the certificate, making the same
payable again to the order of Staples on
demand. Staples, it is asserted thereupon
surrendered the certificate to the Wash
ington Savings Bank and got back the
! h,1 a. no
lumhia National Bank
In addition. 1t is set forth that before the
company could conduct business a license
was required. to be issued by the s,Iperin-
tendent of insurance of the District of CO.
lumbla. Before he could issue a license
however, it was the duty of the superin-
teudent 10 ascertain whether the capital
STOCK required by the charter and articles
of Incorporation of the company had been
actually paid up In cash. or had been
invested in property with not less than the
nun amount OF the capital stock required by
me charter and articles of Incorporation
Fehr. Fitch. who was president OF the
company; Jeffords and Staples it is de-
CARED, conspired to obtain from the SUPER
lntendent of insurance a license authorizing
the interstate Live Stock Insurance Com
pany to transact business under the false
pretense that the company had a capital
stock OF Slo0C0o, actually paid up in cash,
on deposit IN the Washington Savings
Bank 1t IS added that Fehr obtained a
license october last. against the form of
the statute in such case made and provided
ana against the peace and government of
the United States"
In support of his alleged representation
that the amount of the capital stock had
actually been paid up in cash, it is set forth
in the indictment. Fehr filed with the SUI
perIntendent of insurance "a certain false
and fraudulent paper writing in the form of
an atfldaFlt with Il certain false and fraudu-
lent duplicate and copy of the certificate Of
deposit, described in the foregoing.
In :. md
company DID not have a paid-up capital
stock of 100000: the statements as set
forth in the paper writing were. false and
fraudulent; the duplicate and copy of the
certlfcate OF deposit was a false and fraud
ulent duplicate and copy; the company
did not then and there have any certificate
of deposit. and the Endorsement was false
and fraudulent one. made by Staples with
the intent to defraud and to effect the
object of the alleged unlawful conspiracy
all of which Fehr. Fitch, JefTords and Sta
pies well knew
The witnesses in the case who appeared
before the grand jury were w. j. Clay,
Thomas c. Drake, superintendent of insur-
ance; Daniel Curry, NJ 2. Kehoe, Clara NJ.
Haslup. Charles II. Davidge, James II.
Person Joseph n. Alexander. Halle Fry
Edward Hail. Byrd Watson, Samuel Hoover,
Fred Beal and Clarence Corson.
Information received by the United
States attorney IS to the effect that Colonel
Staples az present is at Thousand Islands,
that Fehr is in Europe, ard that Fitch is
in West Virginia. AIr. Jeffords is In this
city. Colonel Staples and Mr.. Jeffords, it
is understood. Will be permitted to appear
in court and give bond at their conven-
fence.
Further action in the case will not be
taken prior TO next fall.
Other Indictments.
The grand jury today also reported in
dictments against the following:
William Harris, for assault to kill
Mildred Campbell, for procuring mis-
carriage.
Benjamin Coleman. for larceny
Louis Briclser, for housebrea king
Wellington o Bannon, for assault with a
dangerous weapon.
The grand Jury today took a recess until
September II next