The Washington herald., 1909-05-11

That the cases Of fraud against John c.
Davis and his brother. Martin T. Davis,
would be submitted 10 the grand jury to-
day and that indictments would be re-
turned on OF before Thursday was the
rumor circulated in police circles last
night Apparently broken in spirit, John
c. Davis. the attorney whose queer fnan-
cial methods have startled a score Of
creditors and mystihed the police. spent
his first night in the District jaa pacing
his cell.
Frightened by the numerous letters and
,zzteIegranns that flooded the Office of the
district attorney yesterday. several pros
pective bondsmen held aioof from the en-
treaties Of counsel for the defendant, and
his expected release from custody had
not materiaIized ar midnight.
Martin T. Davis. held on q charge OF con
spiracy 20 5efraUd IN connection with his
brothers operations. was released on 5000
bonds for the action Of The grand jury
Following Q brief hearing in the Police
Court the attorney was remanded 10
Jail in default Of S2a010 bail demanded by
Assistant United States Attorney Ralph
Given.
Receiver for Association.
Coincident with this hearing. Attorney
" Nfosby Williams was appointed re-
oeiver for the Potomac Building and Loan
Association. the operations Of which are
said 20 he entangled with the deals
manipulated by John c. Davis. Complain
ants aIlege the institution IS without
funds and unable 20 meet its obligations.
Tnoficially. il was fntimated By Dis
T-ct Attorney Baker late yesterday aft
er1con that the so-called defalcati0ns viii
total S2ao.oCa HIS Office and that Of AS
sistant District Attorney Proctor were
continuously crowded all day. and the
stories of attractive Inducements that
failed 20 materiaIze kept the officials
busv.
The authorities are reticent about Civ
inS out names Of d:sgruntled creditors.
and wiz only say that numerous other
complaints have been recorded from per
sons IN Norfolk and Fairfax. Va: Canton.
Fa-. Philadelphia. and other places.
The last telegram received yesterday
was dated Front Royal Va. and charged
The defendant with obtaining 5000 under
false pretenses.
L IS understood the majority OF the
victims were members Of the same reiig-
lcus denomination in which Davis uro-
feSSed great interest. In some cases the
funds were obtained in the same manner
as the thousands Of dollars alleged 10
have been gathered by him fifteen years
$50 in Wilmington. y. c.
VIII Go TO Grand Jary soon.
Judging from the remarks Of tbe dis
tTict attorney. he has sufficient evide7ae
10 warrant giving the matter 10 the
grand jury in several days Il is posi-
bic the charge viii be changed from,
false pretenses 10 embezzlement by the
grand jury.
Ihat AarJin T. Davis feared police in
reference became known last night wbe7
q business associate told OF his actions
several days before the arrest OF his
brother Il is said he borrowed SD. in
payment for which he gave a check for
mat amount on prominent Washington
bank On the day before lie was arrested
Tor conspiracy he teIeph0ned his friend
hoJ 10 cash the check and offered In r.sy-
MIN 8 on the note Immediately
v hile the United States authorities ara
busy r. preparing their case arai7s+ -. /
attorney, the police are diligently a7-
deaTorins 10 ascertain where ne invested Z
Ms IGnos- Zach day brings forth new
developments that ,Sy1d 10 enfanEIa D,avis /
l'ltt n IlS HaZs Of financial difficulty
NAlle some JCedenCe IS placed in The 4
lAeoIy mat ne borrowed money 20 meet
urgent demands Of some pressing cred +
nor Hl-ch importance IS placed in the /
Story that he invested the whole a-r,---,- 4
n some fantastic money .uaki-v srre--.
lnaI Ial-ed 10 produce expected dividends
sui another theory that is said I'd, -, 4
weight AZ the City Han. and ezDarfsr7-. 1
among members Of the bar. Is mar -bs 4
Dav-ses have a cOnsidera ole SIN, Of I
money and securities in their possession
attorney Williams i IS understood holds
this belief -o-''7
Declared He Had Ample Funds
Discussing the suit fled by him arsf7s.
the Potomac Building and Loan Aszo.s,-
Jion yesterday. NIr. Williams said lfs--t-,
/ Davis. the secretary. and. in so fa- a.
the creditors know. The only o.Hcfa1 os
tnat concern was approached bv hin,
Thursday last and urged 10 settle with
his clients
Davis replied" he continued. that
ne nad ample assets in a safety deposit
bank box at the old Ohio Savings PAM
q; twelfth and G streets. I impaired
this Information TO John c. Davis wbo--
I met tWo hours later. one bour 1.+..
l received phone message from 1rs-r5-
Davis. who volunteered the info-ratfr-'
that had misunderstood him -
positive did not misundersran5 him y
added the lawyer -'-i-
The petitioners for a receiver rar-a-
sented hr Attnrne-- r-il-t.-. -. =