The Washington times., 1906-10-31

Of Heinze was a good asset then. ss
Washington dep0sitors have family
hoped IL might be once more.
Report From Butte Bank.
Comptroller Ridgeley has received from
Butte the report ON the examination or
The parent bank there. II can be said
that IL Washington depositors get any
thing. it viii have 10 be squeezed out
Of the assets in Butte and the chance
is poor, Il VIII be held that the parent
bank and the two branches, in Washing
ton and New York, constituted a single
I. institution, and all assets and liabilities
VIII be pooled the same rate Of diri-
(. dend VIII be paid ia Washington as ia
Butte
Seemingly, the New York branch was
rather speculative agency than
banking house. Investigation in New
York located the office" but il consist
ed merely OF some desk space in an Of
nee. and a safe IT, ltained not a
single scrap OF pap, Lum, who
had been H. charg planned 10
otifr people IN the same Office room
that lie had discontinued All connections
with the Butte concern and returned
ais hooks and papers 90 Butte
Despite this. however the Butte banR-
oarr-ed a charge Of $4,000 on its books
against ln- NeW York branch. The
cvide-ce al points 10 Tie conclusion.
which the authorities are rot chary OF
expressing. that the Washington and
Butte Institutions were simply feeding
money into the New York Office, where
probably it was lost IN speculation or
stolen
The Butte bank likewise carried on
its books a charge of S4Z.0G0 against the
Washington branch But il was made
up of a number OF items, most OF which
were not really chaTEeablC - this
branch. Il was merely bookkeeping
device. and represented no -dyauce 20
the Washington concern. II seems thaE
charges and credits were made among
the three offices with such dfscrimina-
uon as might be enforced By the neces-
slty o. making each est4Diishment ap-
pear 10 be- sound
Hoag Merely a Figurehead.
John T. Hoag. manager Of the Wash
nston bTaEch. man OF more than sew
enty years slight, broken In body and
mind. seems 20 have been a mere figure
head, doins the things he was ordered
10 DO by his Butte superior. He took
charge Of the branch when il opened in
December. 1893. and apparently never
mad any real knowledge of the true con-
uluoE or affairs. His letters bear out
MS claim that he had been for a long
time trying 90 secure definite iufOrma-
tou about affairs at Butte, ano thar he
was feaTIu or conditions, bit the peo-
pie there gave him only the guest and
most unsatisfactory answers.
Authorities Are Reticent.
There is much reucence among. the
authorities regarding the time when the
process ot lootus the bank began. This
Is because the criminal prosecutions
must be based on the evidence. in large
part. Of me bank records. The bank
8 mas had a constantly shifting manage
inrnt since HeinZe left it. and Jhe au-
I1OTiues DO not want To- say. pending
procedures, who VIII be- accused Of be-
ginning the loot F. +. GaTside. man
aIer al Butte. IS Uucer arrest there. A.
. =, Clements and T. =. Street who sue
. cesslVely are supposed 20 have con-
uoIleu the Institution after ll passed
from HeiuZe's hands. are expected 20 bs
SUBJECTED 10 some very pointed ques-
/ The venue of prosecution is one Of the
ulcertalutes- For Instance. a transfer
I OF cash from the Washington branch
mi@ht have been ordered bv the Butte
concern HoaE, lu charge a. Nashiag-
ton would not He RESPONSIBLE unless il
/ could b. shown Dee was ga q conspiracy
I OF which The act was part of the eNecu-
ton. II the real crime WAS committed
I IN New Aork or Butte. The prosecution
+ would fal under State and not Federal
3 laws.
/ Cashier Hoag ArTaigued.
! John r. Hoag. cashier of the local
bank. who WAS 6 rrested Thursday in
4 Chicago ia connection with elarges Of
criminal conspiracy, involving also f.
/ W Mccormick. Raymond Donaldson,
and Miss Barbara r. n. Kretct Fnauu.
was today arTai gned Before the Police
Court on a charge Of conspiracy 10 de-
fraud
Through Attorney David r Anthony.
he pleaded not guilty, and waived the
preliminary hearing. Bond OF $4,000
was furnished.
Detective Burlingame. who made the
other arrests in the case. returned
with the prisoner from Chicago this
morning Hoag claims 20 be innocent,
and says he can prove il By papers
IL is said that on the stand HOag viii
make some startling revelations about
the Aetna. Detective Burl;nCane said
B lioag h1d implicated several superiors
and said what he did was at their be-
/ hest. Ho1g claims, said Mr.. Burlin-
+ game, 60 know nothing OF the Illinois
/ Security Company
/ TC add 70 the suffeEings of the aged
i prisoner he received a telegram this
morning which announced the death OF
I his sister in Philadelphia. Her funeral
viii be this afternoon, ana Mr. Hoag