Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-06-06
Former Building Association
Official Accused.
ENLIGHTENMENT CHARGED
Prosecutions Case Stated by District
Attorney Wilson.
DEFENSE's SIDE IS RESERVED
William G. Wagner, Former Presi-
dent of First Cooperative Build
ing Association, Testifes. n

The trial Of the embez4Iement charge
against John Barton Miller, former sec.
retary-treasurer of the First Co-opera.
tive Building Association of Georgetown.
began in earnest this morning I'm Criminal
Court No. .. before Justice Stafford and
the jury. which was completed last Fri
day after an effort lasting four days.
United States Attorney Wilson made the
opening statement for the prosecution.
Attorney Henry f. Davis and John L.
Laskey representing Miller, reserved an
outlining of the defense until the COM
pletion of the testimony on the behalf Of
the government
The number of witnesses to be exam
ined and the stubborn opposition to the
introduction Of certain testimony which
Is expected to develop. will have the
erect of prolonging the trial for at least
TWO weeks. The case is the last to be
called In this court prior to the summer
recess.
Business Methods Outlined.
Mr.. Wilson in his opening statement
briefly outlined the nature and method
or business conducted by building asso-
Citations and by the First association in
particular. He declared the association
had been organized in 1882 and continued
in operation until July, 1905 when JUS
tice Wright appointed William E. Am.
brose receiver for the concern, on the
complaint of a number of stockholders.
He explained how the associations
customers were OF two kinds investing
stockholders and borrowing stockholders
The former merely deposited money for
the interest to be received, with the privi-
lege OF withdrawal on notice to the as
sociation. The latter subscribed to stock,
q 6aS adS nf
on the security of real estate, and for
the repayment of the money gave a deed
of trust on their property and executed Q
bond as an evidence of Indebtedness.
By the constitution of the association.
the United States attorney said. the Sec
retary-treasurer. which Office Miller held.
was empowered with the general conduct
of the business All moneys were paid
to him, and by the bylaws, he was re-
quired to deposit all receipts in the
Farmers and Mechanics Bank of George
town, and Ii was a violation of duty. the
prosecutor said. for Miller to expend the
money In any manner than by check on
the latter bank
Miller's Alleged Proposal.
In the spring Oh 1907. Mr. Wilson told
the jury, rumors as to the instability OF
the association became rife and reached
the officers of other similar institutions
in the city, who hastened to propose aiu
TO the concern. At a called meeting OF
officers of these building associations
Miller explained to them, he said, that
the stringency a he first company's Of
flee was caused by the increased number
of demands for withdrawal coming from
the investing stockholders Miller sug-
gested. said Mr.. Wilson, that If the other
associations would arrange to take over
the loans helu by his company the pro-
ceeds would tide over the run" of the
investors and the affairs of the George
town company would be righted.
Alleged Payments to Miller.
The association having assented to this
proposition. Mr.. Wilson said Miller Wis
tied thirty or thirty-five of the borrow
ing stockholders and secured their con-
sent to apply to the other associations
to take over their loans. Checks in pay
ment Of these transferred loans, Mr..
Wilson said the testimony would show,
were made payable to Miller: were re-
ceived by him; were not deposited by
him in the Farmers and Mechanics
Bank, and, as far as the government Is
able to show, no entry appears on the
companys books that 1t received the
money thus intended to relieve its needs.
Mr.. Wilson declared he expects to prove
that Miller appropriated this money to
his own use and that thereby he became
guilty of the crime of embezzlement.
Borrowers who made the exchange at
the request of Miller. he said, would 60
on the witness stand. The checks given
in settlement of these exchanged loans
would be offered i'm evidence aud the
books of the Georgetown bank would he
displayed to show that no such credit
appears on the company's account
Defense Reserved.
When Attorney Laskey had announced
the reservation of the statement for the
defense Assistant United States Attorney
Proctor called as the first witness Will
liam G.. Wagner, former vice president of
the First Cooperative Association for
many years and its president from June,
1907, TO June, 1908.
Miller Reported Solvency.
Mr.. Wagner testified that Miller to
the best of his knowledge. was the
only person who knew the combination
of the Office safe. He explained Mil
ler's duties as secretary-treasurer, and
read a report submitted by Miller tn
concern in June. 1908, just before the
crash came, in which it was shown the
association was solvent. Witness said
the funds of the association were kept
In the Farmers and Mechanics Bank,
and were drawable only on check
signed by the president and secretary
treasurer.
He said Miller attended to the affairs
of the association while the witness was
president, and always asserted to him
that the association was in good condi-
ton, and that the trouble was occasioned
by stockholders wishing to withdraw
their stock and the funds not coming in
fast enough.
Mr.. Wagner said that during 1907
stockholders could come in and give
thirty days notice and get their stock.
and while the association might receive
only $1,000 or 5000 in month, it might
receive notice of Withdrawals much in
excess of that amount, and the associa-
ton could meet the Withdrawals only
when the money came in.
when did you cease to be presidents?
June 4, 1905"
AT that rime what occurred? was
call issued for a meeting?"
Yes, SIR &
Meeting Of Stockholders.
Mr.. Wagner said the meeting was call.
ed for June 4, and that about 200 attend
ed. At that time. he said. Mr.. Miller sub
mitted his report, printed, showing that