The Washington times., 1909-05-10
Alleged Swindler Bound
Over to Grand Jury by
Police Court.
BAIL FOR BROTHER
is PLACED AT $4,000
Petition Filed by Attorneys of
Creditors Asks Receiver for
Loan Company.

John c. Davis and Martin 7. Davis,
the Washington attorney and his broth
er, charged with fraud in connection
with the operations of the Potomac
Building and Loan Company, in the
Police Court today were held in $4,000
and 5000 bonds for the grand jury.
The larger amount was fixed for At
tOTney Davis because Of the charges of
embezzlement and conspiracy TO de-
fraud against him. The charge of con-
spiracy was the only one against his
brother, Martin T. Davis, secretary and
general manager of the company, and
his bond was therefore placed at 5000.
Shortly after noon DIR. William w.
Stewart. OF Sixth and d streets north
west, furnished bonds in the required
SUM for the release of Martin 7. Davis.
No bondsman appearing for John c.
Davis, he was taken 10 the District
While the Police Court proceedings
were going on. Walter A. Johnson and
W. Mosby Williams, attorneys for cred
itors OF the concern, were filing in the
Supreme Court petition for a receiver
for the Potomac Building and Loan
Company.
Examines Victims.
At the same time Assistant District
Attorney Proctor was examining a score
OF men and women who had trusted va
rious sums to the Davises for invest
ment, and who are now anxious to learn
what has become Of their money To a
Times reporter, Mr.. Proctor stated that
1t was unlikely it would be possible to
present any of the evidence to the grand
jury today.
These people have come here voIun-
tarily." he said. and we are going over
The case with the object Of getting it
lnto shape for presentation to the grand
Jury as soon as possible
Attorney Williams also stated to the
reporter that ne has good reason to be-
Eeve that, although they have not yet
been brought 70 light. the Davises have
a considerable Sum in money or securi-
ties in their possession he detaile1
conversations that he had as late as
Thursday with both brothers that
caused him to have this belief.
Made Promises
At noon OF last Thursday. said Mr..
williams, he saw Martin T. Davis, sec
retary of the company, and was assured
by him that the repeated demand made
for the payment OF certificates of The
company held by his clients, would
shortly be compiled with.
He informed me that the company
had ample assets in a safety deposit box
In the old Ohio Savings Bank building.
at Twelfth and G Streets" said Mr..
Two hours later I ran into John C.
cessfuily to reach for some time. / in
formed him what l had learned from
his brother about the safe deposit box,
and told him wanted prompt payment
OF the certificates in question.
Was Misunderstood.
"One hour later 1 was called up on
the telephone by Martin T. Davis. who
volunteered the information that 1 had
misunderstood him; that he had said
the cOunpauE used 10 have a safe de-
posit box in the building at Twelfth and
G. streets. But l am sure 1 did not
miSUnderstand him
In the petition for a receiver filed
today are two exhibits, one being a
copy Of letter to Martin T. Davis as
secretary OF the Potomac Building and
Loan Company, dated April "a re-
questing payment Of certain certif-
Gates aggregating 800. The second
exhibit IS a clipping from The Wash
ington Times Of Saturday May S. 1SJ5
giving an account Of the arrest Of the
two brothers and the latest develop
ments In the case.
Petitioners Claim.
The petitioners claim that the Po-
tomac Building and Loan Association
has a number of securities Of value
which they believe are in the possess
sion Of NJ T. Davis, It's secretary and
general manager. and in safe deposit
boxes, and that since the office OF the
association and the general manager
are in the custody Of the police, there
is no suitable person 10 obtain these
assets. For this reason the court is
asked to appoint receiver TO take
possession OF whatever assets may be
found and TO preserve, protect, and
dispose OF them under the direction
and contro, Of the courts
Alice 3. Duncan. one Of the COM
IL