The Washington times., 1910-06-10
Declares Double Pressure
Brought Ruin to Build
ing Association.
BANK ON ONE SIDE,
MEMBERS ON OTHER
Former Tmploye Gives Testimony
Contradictory to President
Wagner's Statements.

Panicky stockholders on the one hand
clamoring for settlement Of their invest
ments. and on the other the impor-
tunities of the Farmers and Mechanics
Bank Of Georgetown, caught the now
defunct First SO-Operatlve Building As
sociation between two financial fires.
This consumed all of the shrinking de-
posits which were being received. and
caused its financial ruin, according TO
the defense Of John Barton Miller,
former secretary and treasurer OF the
association. now on trial upon charges
Of having embezzled more than $50. 900.
The defense began strong tnis morn
ing Attorney Henry +. Davis did not
make an opening statement, relying on
the testimony Of J. Donald Miller a
brother Of the defendant. who has also
been on the stand as a Government Wit
ness. When placed on the stand Miller
testified that he had been in the en-
ploy Of the First Cooperative Building
Association for several years. during
most Of which time he served in a cle--
ical capacity, made the deposits Of
money in banks for the association, and
cashed checks.
His testimony offered throughout
practically direct testimony practically
in direct rebUttal TO that gi-en by Presi-
den- Wagner, Of the association, who
was on the stand several DAYS ago.
Donald Miller declared that scores OF
- riockhOlders had been paid the amounts
OF ther claims against the association
curing the last months 'Of it's life in
money taken out Of the cash drawer OF
the concern
prodded Ryy R,,L
He declared that the building asso-
ciauon several years ago borrowed
from the Farmers and Mechanics Bank
OF Georgetown an amount aggregaung
$4,000. and that al all times during mis-
employment by the association the bank
was urging curtailment
When the importuning Of the banE
became known TO the stockholders n
started a run upon the association
Which never ceased until the financial
crash came, he said.
When IL became apparent that some
thing would have TO be done 10 satisfy
the Withdrawing stockholders, witness
declared that the officers of the com
papy were forced 10 transfer many OF
the leans carried by the company iu
orde. 20 get funds with which 20 sal
iS,y he panic-stricken investors.
Be leying il eXpedient, In view OF he
demands Of the bank for curtaiIments.
and wishing TO protect the stockhOld-
ers as far as possible, the witnes de-
clared that Il was the cunstOm 10 keep
only small deposits al the bank and 10
pay The stockholders from the drawer
o. the association.
Deposits Covered Check.
Whenever a stockhoIder wished his
money in check. he said. the building
association drew an order for him on
the Farmers and Mechanics Bank, and
ther. hastened to deposit Just enough TO
cover that amount
Attorney John Laskey. counsel for
the defense, read into the record Of the
case several hundreds Of checks which
had ben so isued and cashed.
William +. Ambrose, who was ap-
pointed receiver for the company "a
June OF 1908, when the financial cOndi-
ton Of the association became knoEn.
was called to the stand as the closing
witness FOR the Government yesterday
He Cecounted TO the jury his appoint
meEt TO take charge Of the affairs Of
the association, and told Of his visit 10
the offices OF the association where the
safe. when opened. disclosed none OF !
the important records Of the association.
which since that time have never been !
found.
He told of getting a search warrant {
and of visiting the no emOf Miller, but I
declared that although he offered a re-
ward of $1,000 for the missing books ali 4
MS efforts 10 locate them proved fall /
lreS-