The Washington herald., 1909-05-13

The findings OF the Federal grand jury
in the case OF John c. Davis and Martin
T Davis. charged with obtaining money
By false pretense from gulHble investors.
amounting TO about 10000, viii be made
public this morning. when the report IS
banded 10 Justice Gould in Criminal
Court No. !.
The expectation in legal circles is that
a. least one true bill viii be returned
against John c. Davis. charging embez-
Element The nature OF the case against
Martin Davis. secretary and general man
ager OF the Potomac Building and Loan
Association. gives room for doubt as 10
the finding with regard 20 him, as appar-
entity most Of the checks involved were
drawn by John c Davis, payable 10
self" and cashed by him.
AIexandrfans Tell Troubles.
Thomas A. Owens. whose financial
hacker Davis purpOrted 10 be. and who
claims TO have signed a number Of blank
notes for Davis, completed his story be-
fore the grand jury yesterday morning.
Testimony as 10 the operations OF John
Wilkens and ". Z. Sisson. Of that place
Il IS said that investors there were re-
heved OF sums aggregating $1,000 II is
said Mr.. Sisson told the Jury his reIa-
tions with Mr.. Davis continued 10 the
day before the latter's arrest.
That John c. Davis. by some strange IN
fuence. got money from investors who
have ceased TO believe in his schemes. is
the opinion now advanced by q number Of
attorneys whose clients are IN the long list
Of losers They say the peculiar. circum-
stances under which money was handed
over after the owner OF Il had decided
that Davis schemes were visionary. can
be accounted for only by some occult
persuasion
L has also developed that the crisis in
the operations now being aired in court
was brought about by a government Or
der transferring the clerks Of the fOres-
Try division from Washington 70 the
West One attorney who had a number
OF clients in the forestry division said
yesterday that when the order OF trans
fer came the clerks demanded full set
tlement- They got Il, said the lawyer.
but in paying them ne believes Davis
funds were so depleted that he was IN
able to keep up his ''kiting'' system. and
was deluged with the fatal demands that
suddenly accumulated
How John c. Davis disposed Of the
money he got is as much a mystery 70
the police and to United states Attorney
Baker. as It was when the expose was
first made.
suit Is Begun.
Facts purporting to lay bare one deal
by John c Davis, were contained IN a
suit brought in the District Supreme
Court yesterday by Miss Alice E Cara
her. She charges that Davis forged a
document pUrpOrting 70 bs an agreement
on her part 20 sell property at SD E
street southeast, for SO. 10 L. c. Miller
She declares he procured some woman
unknown TO her, 10 go before a notary
public. Joseph r. Fague. impersonate the
plaintiff. and execute q deed OF sale
dated August !. last.
The complainant says she never saw
Mr. FagUe until last Monday, ard that
she never executed or Acknowledged be
fore him, a deed Of sale of the property
involved
Subsequently Miller conveyed the deed
10 Homer a Sipe, from whom Il passed
10 the defendant in the case, J. Thomas
Kelley. il. The complainant SAYS Kelley
now threatens 70 eject her from the prop
erty. She asks an injunction restraining
Miller from selling or encumbering the
property, and asks that the deeds be
Cancelled.
Mrs Carraher further declares that
she loaned John c. Davis s. 90 OF the in
surance money she received from her hus-
band; that Il was all the money she had,
and that she is now unable 10 pay the
costs OF dOcketing the suit
Assistant United States Attorney
Proctor. who IS going over the testimony
IN the entire case against the Davis
brothers with the grand jury, said yes
terday that the suit Of Mrs. Carraher
would probably be taken up IN subse-
quent hearings Of the grand jury.