Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1905-07-15
JEFFORDS is IN TROUBLE
WelI-known Politician indicted
BY the Federal Grand Jury.
CHARGE OF FRAUD IS MADE
Three Other Washington Men are
Also Mixed Up In the Affair
Details of the Case.

says:
The federal grand jury for the Dis.
triet of Columbia on Thursday re-
ported an indictment against Orrin @.
Staples, John l.. Fehr, Tracy l.. JET.
ords and Elisha Ii. Fitch, well.known
Washington business men, charging
them with conspiring to defraud the
United States government. The in
oictment alleges against the four men
both common-law conspiracy to cheat
and defraud and statuary conspiracy
for violation Of section $40 of the
revised statute of the United States.
The Indictment states that the de-
PENDANTS were the moving spirits In
the organization and partial operation
of concern known as the Interstate
Live Stock Insurance Co., which was
incorporated under the laws of the
District of Columbia in September OF
last year. The methods used by the
alleged conspirators 10 securing the
license from the commissioner of in
surance is the ground upon which the
indictment is based.
The laws governing the issuance of
Licenses to organizations such as the
Live Stock Insurance Company par
ported to require of the incorporarors
that they show legal reserve fund
sufficiently large to mature any and
all contracts with policy holders. II
is set forth in the Indictment that
the defendants falsely represented
that the company in which they were
interested had on deposit in the Wash
ington Savings bank, of which
Staples is president, 500, 600. the same
being the capital stock of the COM
pany.
ALLEGED CHECK JUGGLING.
The indictment charges that when
the charter was granted the corpora.
tion, neither Mr.. Staples nor the
Interstate Live Stock Insurane Co.,
had the amount of money claimed on
deposit in the bank. In pursuance of
the charge of conspiracy it is alleged
that Mr.. STAPLES at first made re-
quest upop his bank to issue him
certificate of deposit for I'll 500, 600:
that this was denied him, that he
then on October 8, 1904. drew check
on the Colombia National bank for the
hot hA .rsf
the Washington Savings bank and the
certificate of deposit WAS given him.
Stables, the Indictment further recites
then Endorsed the certificate of deposit
to John l.. Fehr, treasurer of the Live
Stock Insurance Co., and allowed Fehr
to make duplicate of the certificate
of deposit. with his indorsement
written on the back. This copy,
together with the original, was
presented at the office of Thomas Z.
Drake, commissioner of insurance,
and upon these documents permission
was given the company to do business
in the District of Columbia. The
duplicate copy became part of the
records of the office OF the superin-
tendent of insurance.
Fehr, il is alleged, returned the
original copy to Mr.. Staples, who
returned it to the Washington Savings
bank, and. it is recited, took up the
check before it was presented to the
Columbia National bank for collec
iion.
1t is not known exactly when the
men will be called into court TO
plead to the indictments. No arrests
will be made, the Arrangement being
to allow the men to appear volun-
tarily.
WELL KNOWN IN WASHINGTON.
Orrin G. Staples, the chief finan-
cial promoter Of the COMPANY. is
prominent in business circles in
Washington. being pronrietor OF the
Riggs House, and Tracy l.. Jeffords
member of the Washington bar aud
was formerly assistant United States
attorney for the district of Columbia.
His connection with the company was
that of counsel. Jeffords appeared in
court Thursday, and gave bond in the
sum of $1,000. his bondsmsn being
Henry M. Baker. John N. Fehr.
treasurer of the company, is 10
Europe. and Elisha H. Fitch. the pres.
ident. is in West Virginia.
Mr.. Jeffords is resident Of Harpers
Ferry, and vas prominent candidate
for the republican nomination for
congress in this district last spring.
He is we'll known in MartinsburG.
NEW TELEPHONE MANAGER.