The San Francisco call., 1909-10-31
FACE
CRIMINAL COURTS
Former Union Bank Official Vio=
lated Federal Laws, Says
Grand jury
contlnuea From rage Il

Continued From Page il
file without the issuance of orders. for
the arrest of any one has rendered it
impossible to learn authoritatively who
is involved until the return of Judge
de Haven. I'VE have no knowledge OF
the persons involved in those indict-
ments not accessible to the public"
The case against Prather and Eng
lish has grown out of two loans ar
ranged nearly three years ago. Since
then the bank has been under the con-
troll OF ]. Dalzell Brown, and after his
disastrous administration it passed into
the hands Of George Roeth and James
de Fremery. They tried in vain to
place IL on its feet Last spring the
institution was closed by order of z. i.
Roreback, the federal bank examiner.
H. n Morris was appointed receiver.
Morris delved deeply into the books
and unearthed transactions that he
garded as questionable. These had oc-
CURED during the regime of Prather.
with whom were associated Edison f.
Adams and John Charles Adams, also
well known Oakland capitalists. Nor
ris called upon Prather to make good
losses sustained on certain loans.
AdNAACL lciQSSQ- 8s9ull Was D6S ui, DQN
II has not been brought to a conclusion.
In the meantime stock holders have
brought suit against Prather, but the
cases have never been pressed to q fin-
ish. Morris then placed the evidence
before the federal grand Jury and. the
indictments were voted.
The first Indictment against Prather
grew out of the l. II. Clay lean. 1t is
claimed by Receiver Morris that Clay
II ,3,,- ~ Toro he in,
real estate deal and that the profits
from the deal were DETECTED from the
bank. The bank advanced Clay $4,000
on his note. The note. it is charged.
was discounted for $4,000 and used as
part payment on a piece of realty at
Thirteenth and Grove streets The
total purchase price was $34 600 The
property, il is alleged. was then turned
over by Clay to w. W. Garthwai3e,
agent for the bank The property It is
charged, was resold at a profit. The
bank was paid the amount OF the note.
with Interest It is contended that il
was entitled TO the profit on the trans
action. Clay admits the use of his
name. but denies criminal intent or
knowledge.
The indictment in which Prather and
English are Joined had its origin in
loans 10 A. W. Burrell. a contractor for
the construction OF United States army
barracks at Fort Whipple, near Pres
cott. AriZ. It is stated that Prather
had arranged to finance the contract
for Burrel. After the first $4,000 was
advanced to Burrell there were differ
ences and nothing further was forth
coming. Burren brought suit claiming
that the matter had been arranged by
former Congressman Warren English
as intermediary Later when J. Dalzell
Brown obtained control of the Union
national bank, $1,000 more was ad-
vanced to Burrell on the unsecured
notes of Burrell and English. In the
midst of the litigation over the con-
tract Burrell died 1t is charged that
English in these transactions acted as
dummy agent for Pra
SUITS AND COUNTER SUITS
Suits and counter suits have marked
the progress of the banks affairs. the
stock holders seeking at one time to
force an accounting of the BurrelI
loans. The matter has now passed from
the civil into the criminal courts.
Prather and English have LONG. been
prominent respectively in the financial
and political affairs of the state. Pra-
ther was at one time connected with
the Drum interests in the ownership of
the Yosemite Valley railroad. He still
retains valuable holdings in the Mer-
ced river country.
Attorney Darwin e. de Cola was for
mally placed under arrest by United
States Deputy Marshal Brennan at his
home, 2219 High street. Fruitvale.
where the lawyer is i'll. De Cola had
been notified before the arrival of the
marshal of his indictment and had ar
ranged with a surety company to pro-
vide bond. He was represented in
the matter by his brother, Attorney |
George de Cola.
ESTATE DEAL QUESTIONED i
The indictment of De Cola grows
out of his connection with the settle
ment Of the estate of William ID. Whit |
more. who died in Oakland in 1905 The
attorney represented absent heirs and
has acted in such capacity for nearly |
five years.
The estate was valued at $4,000 and II
special letters of administration were
issued TO George d. Gray, then public |
of Alameda county The
heirs whom De Cola represented were
Otis Whitmore and Annie NJ Tucker of !
Boston. De Cola took up the search |
for absent heirs after the death of |
Whitmore and after making two trips |
to Boston located Otis Whitmore and |
Annie NJ. Tucker and was retained to |
represent them. According to con /
tract, De Cola said that he was to re-
ceive 80 per cent of the money he Sc I
cured for his clients. This arrangement |
was made, according TO the lawyer.
partly through mail correspondence.
De Cola obtained $4,000 for: the abb