Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-09-22
UNDER BOND FOR HEARING
Accused Man Declares He Was Con-
Quoting Legitimate Business.
THAT OFFICERS ACTED HASTILY
Arrest Made by Post Office 1nspec-
tors-Defendant an Omcial OF
National Trust Company.

The free use OF the name OF ]. M.
Huston, former treasurer of the United
States, to attract customers. II Is alleged.
coupled with the fact that its assets were
far short Of what they should be and
other alleged peculiarities, according to
Post ONCE Inspector Keene, led to sus-
picion of the Nationa! Trust Company
of Washington and the arrest by the In
spectors of Henry NJ. Lewis, its secretary
and treasurer. at its Office. 1421 F street
northwest, yesterday afternoons
The charge made by the inspectors, at
the suggestion of United States Attorney
Baker. was that of using the mails in
the furtherance Of a scheme to defraud.
Lewis was arraigned before United States
Commissioner Arson S. Taylor, where he
entered a plea Of not guilty and gave
bond in the sum of $1,000 for his ap-
pearance at hearing set for next Mon
day. When Lewis was arrested the
books and papers of his concern were
seized. and they are now in the custody
of the inspectors.
The National Trust Company Of Wash
ington, according to the Post Office De-
partment. was organized January 4. 1900
by D. S. Fletcher, formerly president
of the Hartford Comm Mutual Life AS
ISOLATION. The original capital stock was
$4,000. divided into shares of 800 each.
This amount was afterward increased to
$5OO,OOO.
Fletcher, who says he has been in busi-
ness at the corner of Ninth and F streets
for twelve years past. sold the charter Of
the National Trust Company to Lewis
Since then the company has been Offering
to guarantee the stock of other institu-
tions upon the payment Of ] per cent
Of the stock guaranteed, and a further
Tee as the stock was sold.
!; Capitalized at 81, DOC, 900.
About year ago the National Trust
Company Of Delaware was organized.
with q capitalization of 100000. and
Lewis is claimed to have been its pro-
moter and chief manager, although the
name of j. NJ. Huston appeared upon its
literature as president. At the same time.
It is said, another concern was organized
by Lewis. known as the Enterprise Trust
Company Of Arizona. since said to have
become defunct.
The Cresco Corset Company of SPRING
field, Mass, made a complaint to the de-
partment some time ago against the Mu-
tual Securities Company Of Baltimore,
Md In investigating the complaint. In
spector Keene states, he found the Mu-
tual Securities Company of Baltimore
was sort of speaking tube connection
with the National Trust Company OF
Washington. and this led to an inquiry
into the business Of the local concern.
"A concern" he continued. which
would deal with the company here and
pay the 1: per cent required for guarantee
Ing It's stock would later find itself do
ing business with the Delaware concern.
h0 n1lrnnrfe6 m hQv0 81 OoO 000
paid-up capital. When we came to look
Into the situation we found the million
dollars made up OF 100000 worth OF
stock in the National Trust Company OF
Company and 100000 In the Washington
Trust Company Of Wilmington, the last
Just organized, but also said to be
Lewis enterprise.
Claim Made by Lewis.
Lewis claims to have paid in cash
$685. 600, but even 50 it would leave the
National Trust Company Of Delaware
still shy approximately $4,000 Of its
million dollars paid-up capital, while what
It actually claimed to have is understood
to have consisted Of stock in other Lewis
enterprises, the value of which Is doubtful
in the extreme. Yet last year the LEGAL
concern gathered in $4,000 in its bust
ness, and it or the National Trust Com
pany Of Delaware had guaranteed stock
to the value of 100000"
Most Of the correspondence, 1t is said.
was carried on by the Washington con-
Germ. When all the negotiations had been
completed for the guarantee OF stock, 1t
Is alleged. the clients OF the company
would receive from the Delaware COM
pany an indemnity bond to insure the
stock as actually sold. The rates OF the
company for bond which would mature
in sixty years. 1t is said, were 1851 per
cent Of the par value Of the stock: for
that which would mature in fifty years.
1896 per cent.
Voluminous Correspondence.
The trust company advertised extensive
ly in the newspapers and seht out numer-
Gus circular letters, seeking correspond
ence with corporations DESTROYS Of hav-
ing their stock guaranteed. According to
the post office inspectors the mail receiv-
ed by Lewis in Washington has been
enormous.
When seen by post office inspectors. 1t
is stated. Mr.. Huston said he knew little
of the transactions of the concern. He
had no money invested in 1t.
Fletcher, whose name appears on the
literature Of the local concern, told Star
reporter this morning that he had no in
terest in 1t. He said he had been made
vice president without his knowledge.
and his only connection was in a clerical
capacity, for which he received q weekly
salary. He admitted. however, that there
was an understanding that a specific
proposition for permanent employment
would be made him, but 1t had not yet
been made.
Claims Business Is Legitimate.
Mr.. Lewis declines to discuss the case.
but claims that he is conducting legit-
innate business. He charges that the In
spectors have acted hastily and without
thorough knowledge of the facts.
THE company here in Washington" he
declares. has violated no law and its
transactions are perfectly legitimate"
William d. Hoover. president of the
National Savings and Trust Company,
18th street and New York avenue north
west. states that his institution has no
connection whatever with the National
Trust Company Of Washington, whose
secretary and treasurer. Henry NJ Lewis,
was arrested yesterday on the charge Of
using the mails in furtherance Of a