The San Francisco call., 1909-11-10
MILLIONAIRE IS
GIVEN LIBERTY
ON $4,000 BAIL
Thomas Prather and Warren b.
English Give Themselves
Up to U. S. Marshal
Accused of Fraudulently OBJ
tanning Money From Union
National Bank of Oakland

Notified by United States Marshal
John Elliott that warrants had been
made out for their arrests on charges
Of wilfully misapplying the funds of a
national bank. Warren B. English, for
merly congressman from the third Cali
fornia district, and Thomas Prather.
former president OF the Union national
bank Of Oakland and one of the leading
men in financial circles in the state,
surrendered themselves to the federal
authorities yesterday. With their sur
render the indictments returned by the
federal grand jury were made public.
English was indicted on two counts
OF aiding and abetting Prather in the
misapplication Of the funds of the
Union national bank and Prather was
indicted on FIVE counts Of misapplying
the funds OF the institution.
RELEASED ON BAIL
Both men were Immediately released
on $4,000 bail each They will be ar
raigned before Judge de Haven Novem-
Der % English has for his attorney
Bert Schlesinger, and Prather the firm
OF knight & Hegerty.
Il am not guilty OF wrongdoing,'
said English after his arrest The in
dictment against me is wholly unwar-
ranted and wholly unjustifiable. Inn
mediately upon being notified of the in
dictment I hurried home from the east
10 meet the accusations.
i ask my friends to suspend judg-
ment in the matter until the facts are
known, and I assure them of my vindi-
cation. 1 do not know what the charge
is and am not conscious of having vio-
lated any law of the United States"
Prather spoke in a similar strain.
The indictments have been kept
secret" he said, and neither myself nor
my attorneys have had an opportunity
OF eNaming them. OF the charge on the
warrant. that Of misapplying the funds
or the Uhion national bank of Oakland,
am innocent Not having had an oppor-
tUnity Of examining the specific
charges, 1 can not discuss them Until
the facts are known / ask that my
friends maintain their trust in me and
not adJudge me guilty on the ground
OF the Indictment alone"
ACCUSATIONS IN INDICTMENTS
The first count in the indictment is
that November 8, 1906. Thomas Prather
as president Of the Union national bank
loaned Warren B. English s2,2O3.50 on
an unsecured note, well knowing that
the promissory note was below the
value OF the amount named on its face
owing TO the inability Of English to
pay IL back and it was in fact lost TO
the bank.
The second count charged that No
vember 10. 1906, English borrowed
sl,l00 from the bank on an unsecured
note under the same conditions as those
outlined in the first count
The remaining three counts in the
Indictment deal with Prather alone the
claim being that he fraudulentIy loaned
J. Harrison Clay $4,000 without the
knowledge Of the directors of the bank.
the loan being made for the purpose of
converting the money TO his own use
The other two counts hinge around this
transaction, the fourth being that. Of
the $4,000 thus loaned. he purchased
realty in the name of Clay. and the fifth
that while the deed of the purchased
property was in the bank as security he
transferred ii TO William Woodruff
Garthwaite of the Oakland Bank of
Savings by way of q mortgage TO Sc
cure loan OF 10000.
Speaking for Prather Attorney
Hegerty declared that the whole affair
was the result of aninaus long exist
ing between two factions of the bank
The bank passed into the hands OF
the Dalzel Brown crowd in 1906 in
splendid condition. 1t had assets
worth S2,000,00O and was sound in every
way. The arrest Of Prather is an out
ra &c and the direct result of internal
lighting in the mana cement of the
bank"
Neither Prather nor English seemed
at all perturbed over the situation
They shook hands with Marshal Elliott
on surrendering themselves and were
exceptionally pleasant and affable tc
all with whom they came in contact
Parather's bonds were given by the
Aetna surety company but English
produced Alex Hirschberg and M. J
L.aymance, two Oakland capitalists as
his bOndsmen.
Attorney Bert Schlesinger. represent
ing Prsther, declared he had not ex-
smined the Indictment and was there.
fore unable TO discuss the charges. 81
can state positively" he said. that
Prsther is guiltiess. The condition OF
the Union national bank after il was
pulled down with the wreck of the
California safe deposit and trust com
pany, left it in an extremely chaotic
condition and doubtless the charges
have grown out OF this fact"
DID NOT RUN AWAY
English said that the reports that
he was in British Columbia were moi
true II was in the east on imports nj
business" he stated, but no sooner
did I hear of the charges against me
than I returned TO face them"
Assistant United States District At
toT-ney George W. Clark. who is hand
ling the case for the government, said
1hst the trial would commence at the
earliest possible date.
The charges against English" he
said. ARE that he aided and abette6
in the misapplicatiOn of the funds OF
a national bank by borrowing money
from it which he knew he could not
repay The government also charges
that Prather was aware of the state
OF afai-- and was guilty of misusine
the funds by lending English the
money. English is not a director of the
bank and had no connection with it
except as a borrower"
OVerruleS Demurrer
Judge Van Fleet of the United States
circuit court overruled yesterday tn,
demurrer made by Thomas Prather
recently indicted for alleged juggIin,
OF the funds OF the Oakland unioI
national bank, in the suit brough
against Prather by the American suret,