Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-09-10
AFFAIRS NOT MISMANAGED
Files Answer to Charges Preferred
by Receiver Ambrose.
HE SAYS PANIC CAUSED WRECK
Bought No Realty With Funds Of
First Cooper i've Building As
ISOLATION, He Declares.


of the funds of the First Cooperative
| Building Association of Georgetown is
given in the answer of ]. Barton Miller.
deposed secretary treasurer Of the ASSOC
citation. filed today. in response to the suit
| instituted by Receiver Ambrose against
| him.
He declares the legal proceedings re-
sulting in the appointment OF a receiver
for the association were not brought about
by any mismanagement on his part. but
by general financial uneasiness which
precipitated a run upon the association
which it could not meet.
The control and management of the as
ISOLATION, he says. has never been In his
hands, but the association was managed
by its board of directors, who authorized
all its acts. and that he, as the secretary
treasurer, was merely the agent to carry
out the will Of the directors.
He AYERS that he has been treasurer
only since June, 1906, and prior to that
time was not intrusted with It's funds.
and that he has regularly and accurately
accounted for all funds received by him
as such treasurer. and that his accounts
were audited monthly by a salaried audit
ing committee. which made Its report
monthly to the board of directors.
Books Left in Office.
In reference 10 tHe dlicSdtAoHS VI TIC
bill concerning the books of the associa-
ton. he AYERS that, through overwork
and consequent impairment Of health. he
found it necessary, June 10, 1903. to re-
linquish his duties as secretary-treasurer,
and that he remained continuously in his
room from that time until June 10, when
he took at S:15 o'clock in the morning a
Southern train for his destination in Viz
ginia.
The sole baggage Of his party consisted
of two dress suit cases and smali
satchel, containing only such personal be-
longings as were necessary during an IN
tended brief vacation.
He AYERS that he returned to Wash
ington on the evening of June y, his
health seriously impaired. and went d.
rectly to his home and remained there
Ill and under the care Of his physician
much of the time in subconscious state,
until August Is.
From the time he left the Office of the
association on June Is, he says. he has
left all the books. records and papers OF
the association were intact, to the best
of his knowledge and belief, and In the
company's office.
He admits that during the time he oc-
cupied the position of secretary treasurer
he received large sums of money belong
ing to the association, but denies that
he ever converted any Of that money to
his own use. He AYERS that all of the
moneys received by him treasurer were
properly filed and credited in the records
of the association in such manner as was
customary and authorized by its board
of directors.
On information and belief he alleges
that Receiver Ambrose has in his pos
session it's cash books for the entire
period during which the defendant was
it's treasurer. which show its monthly
gross receipts and its detailed disburse-
mentS.
Realty Transactions.
AS to the charge that he purchased real
estate with the funds of the association
and placed the title to the property In the
names Of his mother. brother and other
relatives, Miller enters an unqualified de-
NAL. He takes up in detail each parcel
of real estate described and AYERS that
in each instance, with one exception, such
property was acquired long prior to his
election as treasurer Of the association.
Miller goes into the particulars of the
purchases of each of these pieces Of prop
erty, gives the time of their purchase. the
persons from whom they were purchased,
and shows that in every instance but lit
tie cash was paid by him, the money to
consummate the transaction being raised
by deeds of trust placed upon the prop
erty.
Concerning lot 179. square 1874. the
home occupied by Miller and his family.
and which. the original bill alleges, was
purchased with the funds Of the associa-
ton, Miller AYERS, 1t was purchased by
him nearly ten years ago. and that more
than the full amount of the purchase price
was borrowed of client of the firm OF
Wescott. Wilcox & Hieston. With the
money SO borrowed the home was pur-
chased.
Funds From Own Business.
He denies that he purchased any prop
erty in the District Of Columbia or else
where with the moneys Of the associa-
ton. and AYERS that for many years past
the Miller-Shoemaker Real Estate Com
pany conducted a large and profitabl
business in the District of Columbia
from which he, as its president, general
manager and owner of large part of its
stock, derived a considerable income, and
that such purchases of real estate as he
has made were made with the moneys
derived from his own business and not
with the funds of the association.
He denies that he Is or ever has been the
owner of any stock in the Georgetown
Electric Machine and Gas Engine works.
He AYERS that a part Of such stock as he
holds in the Rock Creek Auto and Wagon
works Company was purchased with his
own funds, and that the remainder was
given to him in consideration of services.
He denies that he ever purchased or
owned any bonds whatever or purchased
any stocks or personal property with
moneys wrongfully converted by him
from the funds of the building association.
He AYERS that he never owned stock In
any corporation in any considerable
amount
Other Defendants Answer.
In addition to the answer of John Bar
ton Miller. there were also filed the
answers of Mary X. Miller. his wife; Eliza
Rhodes Miller, his mother; g. Donald
Miller his brother, and Agnes Kemper.
his sister-in-law. who were made parties
defendant to the supplemental bill filed
by Receiver Ambrose. wherein 1t was al
legged that John Barton Miller had con-
veyed property to them for the purpose
of concealing his assets.
Each defendant claims there was not
the slightest justification or excuse for
making them parties defendant to the
case and denies each of the allegations of
the receivers supplemental bill.
Mary X. Miller states that there was
never any property conveyed to her by
her husband. and that she is not now and
never has been the holder of any property
In trust for him.
Ii. Donald Miller asserts that the par
ticular piece of property mentioned as
standing In his name was purchased by
him as an Investment. small amount OF
cash being paid by him and the balance
| raised by deed of trust on the property.
He subsequently sold the property, en-
tirely for his own benefit. and says that
his brother had no connection. direct or
indirect, with the transaction
The defendant Eliza Rhodes Miller as
serts that she never held any property
in trust for her SON She denies that bar