Evening star., 1909-05-12
Grand Jury Ends Investigation
of John C. Davis Acts.
OWENS CLOSES HIS STORY
Testimony Given as to Operations in
Alexandria.
HYPN0TISM IS NOW ALLEGED
Investor Declares Only That Theory
Can Explain His Yielding to
Prisoners opportunities.

The grand jury today completed its IN
yestgation into the alleged irregular
financial transactions OF John C. Davis
and his brother Martin r. Davis. AS
sistant United States Attorney Proctor
declined to discuss the finding of the
grand jury in advance of it's report to-
morrow morning to Justice Gould in Grim
inal Court No. I.
Although nothing definite can be learned
as to the report of the grand jury. it Is
generally expected at the city hall that
a, least one indictment will he returned
against John c. Davis. Some doubt is
expressed as to the evidence given the
grand jury resulting in true bill against
Martin r. Davis.
The grand jury convened at 10 o'clock
this morning an hour in advance of It's
usual time, to hear the conclusion OF
the story of Thomas A. Owens, VINO
claims to have signed number or
blank notes for John &. Davis, to be
used. as he thought, in the course OF
business, as Davis was acting as the
financial hacker of Owens.
Dr. Wilkens of Alexandria and w. +.
Sisson of the same place also told the
grand jury how John &. Davis operated
in Alexandria, where, it is said. he OBJ
tained from investors various sums ag-
gregating $4,000. AS the concluding
details of some of these TRANSACTIONS
are alleged to have occurred In WASH
ington, the grand jury thereby acquired
jurisdiction to consider these cases
Mr. Sisson, it is understood. told the
grand jury that his relations with John
c. Davis continued up to the day prior
to the latter's arrest.
Theory of Hypnotism Advanced.
Hvpnotism is advanced by at least two
former clients of John c. Davis as the
means adopted by him for securing ad-
yances for investments from them. Ac-
cordjng to the statement of a prominent
attorney who represents several invest
ors two of his clients, whose names ne
declined to give. stated that Davis sue
ceeded in getting money from them after
they were convinced that his schemes
were visionary.
One of these investors said. it is report
ed, that he told John c. Davis That ne
didn't believe in his scheme. yet he de-
clared that before the interview with
Davis was completed Davis had the IN
yestor's check for 500. He asserted that
if it was not hypnotism he knew not VIVA.
made him grant the request OF LAWS anu
seek the investment
Another prominent attorney said yes
terday: Davis scheme might have been
working successfully yet and no one be
the wiser IL it had not been for the Order
of the government transferring the clerks
Of the forestry division from this city to
the west. The execution os this order
sounded the death knell Of the scheme
What Brought the Crisis.
The attorney proceeded 10 explain that
John c. Davis had q number of clients
in the forestry division. and that when
they were transferred they called on him
for the money invested with him. Full
settlement. the attorney said. had been
H. ..tor rkC md
the money received by Davis began to
fall off SO rapidly that he was unable
TO keep up the dividends to his clients.
and the opportunities for settlement
crowded upon him.
The district attorney and the police
are baffied so far in their efforts to find
how John c. Davis spent his money.
When his check books were seized they
expected TO CLEAN some information from
that source. but the evidence from these
books has only increased their difficulties.
Nearly all the checks, ii Is understood,
that were drawn by John c. Davis, we're
made payable to self and were cashed
by him. and the money disbursed.
A Charge Of Forgery.
A charge of forgery against John c.
Davis is contained in q suit in equity
filed today In the District Supreme Court
by Mrs. Alice f. Carraher of S12 E street
southeast, widow of John v. Carraher.
Mrs. Carraher. through Attorney G. I.
Thomas received permission of the court
TO nile her suit without prepayment OF
costs on her aff1davit that John {. Davis
secured from her for Investment not
only the 81 600 insurance money she re-
ceived on account of her husbands death.
but all the money she possessed.
Mrs. Carraher sues ] Thomas Kelley,
jr., who is named as grantee in deed
conveying to him her home, Si2 E street
southeast. She asks that the deed be set
aside constituting a cloud Oh her
title. She tells the court that August l.
to her unknown, to impersonate her and
who appeared before Joseph r. Fague
notary public and acknowledged q deed
which purported to convey Mrs. Car
raher's home to j.. {. Miller, whose name
appears on several notes figuring in the
Davis transactions.
Mrs Carraher declares the signature to
the conveyance is not genuine and AYERS
that it is forgery and that said forgery
was committed, your complainant is
informed and believes, by one John C.
Davis
Never Saw the Notary.
The widow AYERS that she never saw
Mr.. Fague, the notary. before last Mon
day. She says she did not learn until
long after the deed was filed of its exist
ence.
The property was subsequently convey
ed. according TO the record. from L. c.
Miller to man named Sipe, and from
him to MIR. Kelley, who is named de-
fendant in the suit