Los Angeles herald., 1909-11-10
DENY
BEING GUILTY
INDICTED FlNANClERS SUR
RENDER THEMSELVES
MlSAPPLIcATloN OF FUNDS OF
INSTITUTION CHARGED
Arrest Due to Failure of Union Ma
tionaI Bank at Oakland - Both
Prisoners Released on $4,000
Bonds Each
fBy Associated Press.1

SAN FRANCISCO, Nov. 9.--As a re-
suit of the failure of the Union Ma
tional bank of Oakland, Thomas Pra-
ther, who was president of the bank
and former Congressman Warren Il.
English, a former director of the de-
funct institution, surrendered them
selves to the United States marshal
here this afternoon when they learned
he held warrants against them on in
dictments drawn by the federal grand
jury charging them with misapplylng
the funds of the bank.
The indictments were returned Sc
cretly several days ago, but no attempt
was made to serve the warrants until
today. The accused men were notified
they were wanted early in the day and
when they appeared at the office OF
United States Marshal Elliott they
were provided with bondsmen, who put
up $4,000 for the release of each of the
bankers.
The bank in which the alleged frouds
were committed was acquired in Aug
ust 1906 by the California Safe De-
posit and Trust company. and shortly
after that institution failed the Oak
land bank suspended business. At the
time an investigation was begun by
the comptroller of the currency, but
no formal charges were made against
the officials of the bank until the last
session of the federal grand jury Tor
the northern district of California.
When the jury adjourned at the end
oc October the two indictments against
Prather and English were returned Sc
cretly.
The two bankers are jointly indicted
on the charge of making various dunn
nv loans. The first count charges Pra-
ther with making a loan of $2,203.50
to English on insufficient security and
without the knowledge or consent of
the directors. The count charges that
Prather knew at the time the note was
not good for the amount borrowed, and
that the bank lost the sum loaned.
Notes Said to Be kited
The second count is a repetition OF
the first, except that the sum of Sf100
is involved. The third count charges
that Prather loaned $4,000 TO l. Har-
rison Clay on the agreement that the
money was to be for the use and in
vestment of the bank president. II is
further alleged that subsequently
without the knowledge or consent OF
the directors, he compelled the bank to
accept $4,000 and the promissory note
of l. II. Clay for $4,000 in full salts
faction OF the sum of $4,000.
When arrested Prather declined to
make a formal statement and content
ed himself with declaring he did not
know any cause for his arrest. After
he had completed the formality of CIV
ing bonds former Congressman Eng
lish said:
II am not guilty of any wrongdoing
The indictment against me is wholly
unwarranted and unjustifiable.
Immediately upon being notified OF
the charges / hurried home from the
east to meet the accusations. ] ask
my friends to suspend judgment u
the matter until the facts are known
and I assure them of my vindication
l do not know what the charge is and
am not conscious of having violated
any laws of the United States"
Both of the indicted men are well
known in financial and political cir
cles. English was elected to congress
on the Democratic ticket, and he has
been an active worker in the national
councils of his party. Besides having
held the presidency of the Union Ma
tional bank, Prather is connected with
some of the largest corporations in this
state,