Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-10-26
LOCAL COURT
TAKES ACTION
Charges of Fraud and Con-
spiracy Against Bank Officers.
TWO PARTIES ARRESTED
Copies of Affidavit and Certificate of
Deposit Figuring in the Case.
FOLLOWS CONTROLLERS ACTION
Institution Recently Placed in the
Hands Of Receiver, Result
Of Investigation.
TWO PARTIES ARRESTED
FOLLOWS CONTROLLERS ACTION

That prosecutions in the local courts will
result from the failure Of the Aetna Bank
ing and Trust Company, 1922 street
northwest. the affairs of which institution
were taken up by the controller Of the cur
rency October 10, was indicated this after
noon. when a charge of conspiracy was
filed in the Police Court and warrants
were issued for the arrest Of E. w. Nc
COrmick, who has Office In the Cor
coran building; Raymond 8. Donaldson.
real estate dealer, with an Office at SD
10th street; B. E. T. Kretschmann and
John T. Hoag. the latter assistant cashier
Of the Aetna Banking and Trust Company.
which recently closed its doors. Detective
Burlingame of headquarters was called to
the Police Court early this afternoon, and
copies of the warrant alleging conspiracy
were placed in his hands for service.
Detective Burlingame late this afternoon
arrested Eveleth' w. Mccormick and es-
corted him to police headquarters. Bail in
the sum of $1,000 was demanded.
Miss Barbara E. T. Kritschmann was
also arrested by Detective Burlingame late
this afternoon.
The charge of conspiracy against the
four men named is the result of develop
mentS in the investigation of the affairs
of the institution which was closed last
week. The controller requested that the
attorney once make an 1nVoSll-
cation and to decide whether any unlawful
acts could be discovered. Assistant District
Attorney James NJ. Proctor and Jesse Ad-
kins have been busy with the investiga-
ton since that time, and this charge Is
the first resuG to become known.
Relation Of Defendants.
Mr. Mccormick. one of the defendants
Is engaged in the business of forming cor
porations. it is stated, and has been active
ly in business here for a considerable time
In June. 1905. 1t is alleged. he began the in
corporation Of the Illinois Securities Com
pany under the Incorporation laws of the
District. In order to get charter in the
District it Is necessary to have all the CAPT.
tai stock of the company subscribed to IN
good faith and to have 10 per cent of ths
capital stock paid in in cash and in the
hands of the persons named in the applica-
ton for incorporation as the first board OF
trustees. 1t Is necessary to satisfy the re-
cOrder of deeds of the District with whom
the application for a charter OF incorpora-
ton Is filed that these two requirements
have been complied with before charter
will be issued.
The Official Paper.
In order to satisfy the recorder of deeds
In the cases. Mccormick Donaldson and
Kretschmann filed an affidavit in which
they declared that these provisions have
been complied with. With that they also
filed statement from John T. Hoag, as
sistant cashier of the Aetna Banking and
Trust Company, stating that the three men
had 81 900, or one-tenth of the capital stock
of the Illinois Securities Company, on de-
post in the bank.
The affidavit and certificate of deposit are
as follows:
We. the undersigned. hereby certify that
all of the capital stock of the Illinois Sc
curities Company has been subscribed for
in good faith: and that not less than 10
per cent of the par value Of the stock has
been actually paid in cash, and that the
money derived therefrom Is in the posses
sion of the persons named the first
board Of directors of said company, as wit
ness the annexed certificate of deposit of
the Aetna Banking and Trust Company of
Washington, d. G"
The annexed certificate was as follows:
Il. John T. Hoag, assistant cashier of the
Aetna Banking and Trust Company do
hereby certify that there is on deposit in
said bank the sumo of one thousand dollars
to the credit of E. w. Mccormick, R. s.
Donaldson and B. E. T. Kretchsman, ..rst
board of trustees of the Illinois Securities
Company. John T. Hoag, assistant cashier.
Alleged Conspiracy.
1t Is alleged In the warrant that these
four men conspired to defraud the govern
ment of the United States. and in support
of that allegation it is further stated that
Mccormick, Donaldson and Kretschman
placed a false draft in the Aetna Banking
and Trust Company the day, June 49, when
the certificate of deposit was made by John
t. Hoag. and that the draft was taken out
after the certificate of deposit was made
by the assistant cashier.
The investigation of the affairs of the
bank is said to have developed the alleged
transaction with this draft. and led to the
investigation Of the Illinois Securities Com
pany.
The prosecution was decided upon, and
United States Attorney Baker directed the
warrant charging conspiracy to be drawn
up. and 1t was filed with Clerk Potts to-
day. Additional arrests in the case are
expected to be made at once.