Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-11-09
Ex-U. S. Treasurer Charged
With Conspiring to Defraud.
OUTLINE OF PROSECUTION
Alleged That Worthless Companies
We're Guaranteed.
OPENING BY HUIDEKopER
Explains Details Of the Case Against
Trust Company omcers and Stock
broker, Jointly Indicted.

James y. Huston. former treasurer OF
the United States. appeared at the bar OF
Criminal Court No. / today with Harvey
NJ. Lewis and Everett Dufour. Jointly in
dicted on a charge OF conspiracy. After
an hour spent In examination Of talesuen
a jury was obtained. the opening state
ntnt for the government made and the
Introduction OF testimony commenced.
The defendants reserved a statement OF
their case until the completion OF the
governments testimony.
The trial is expected to be protractsd,
and will probably occupy the attention OF
Justice Wright and the fury for the ro-
mainder Of the month.
Huidekoper Opens
Assistant United States Attorney Huids-
koper outlined the governments charges
to the jury. He claimed Huston, ~
president, and Lewis. as general man
ager. Of the National Trust Company
prior to 1908 entered into an alleged con-
spiracy or corrupt agreement with
Everett Dufour, stock apd bond broker,
In his own name and also trading as Mu-
tual Securities Company, TO use the
United States mails for purposes OF
fraud. The Indictment also charged, he
said, that the conspiracy WAS TO defraud
whoever should apply for guarantees o.
stock and bond issues, which business
the Natioeai Trust Company. IL is Al
legged, held itself out TO conduct.
Alleged Distribution Of $4,000
The overt acts in furtherance Of The
alleged conspiracy consisted. he claimed.
in the depositing in the mails certain
letters, written to prospective applicants
for such guarantees. Lewis. the assistant
prosecutor said, charged q fee OF / per
cent Of any lot Of bonds or stocks that
he proposed to underwrite or qua. antee.
By this means, II is alleged, LEAFS 30
cured $35.OOO in eight months. A dis.si-
button Of this fund, IL is charged. was
made among the alleged consp.rators.
Denial by Huston.
Mr.. Illusions name, he said. appeared
on the literature OF the company. and Al
though he denied all intimate knowledge
vi the business, the soveinmsnt expects
10 prove that on one occasion MI. hus-
ION took a customer OF the guaranty COM
pany aside, aAa, referring 20 nis lifetime
Al the nHanclai wOrtd, iduued the COM
pany. .ar. huston ~ have totd
me companies, and was SuisoinE L.eAn
vi, as u monument which SHOULD last AFTER
ilc was gomez
air Iiu.uenoper said the government
viii SHOW Lnat Huston q Lewis were en-
sA.ed All opeTatiiis Tour ABSOLUTELY Value
lcSs COZ. Wor .nteeS con-
.eTns--LnUeiN. lung stoCns anu cVuds up
in the millions. an the assresAte. tns
scheme oeing TO set per cent or every
tn.ils< gualA..l.ed. Inns advance vaj-
ment, ne claimed. Huston a. Lewis Ovid
ed with DuIour and otner brokers.
What Government Expects to Show.
The assistant prosecutor stated hs e.
pecis to snow that these alleged fraud
uient representations OF abnlty 10 guar
antee ana sell guaranteed securities were
made by the defendants not few unes.
but sent broadcast ali over the country:
that ne would snow on the witness stand
men from al sections OF the country who
will say they were deIrauued OF large
sums OF money In this tasnton. he said
ne would a conviction II he showed
that the malls were used from uAy 90
day, week 10 weeA and month TO month
IN furtnerance or the alleged netartous
scheme.
Fifry,Five Witnesses Summoned
Fifty-five witnesses have been sum-
moned by the government from seventeen
states of the unson. OF these ten are
young women, formerly employed a.
stenographeis by Everett Dutous mere Ia
Baltimore ana eIseM mere.
Inc tlrst witness offered by the govern
ment Was Uoipnin b. Fletcher. from
wnom Lewis Is said TO have DOagnt
controlling interest in the Nationai Trust
Company. In the course OF u converse
ton WIN Lewis at the once or the wat
ness Mr.. Fletcher said Lewis ouliined q
proposition for suai a.iteeiug stVcks and
bonus, and said ne desired stronger
coinpany IMAM ne had.
IF the proposition outlined by him were
carried out properly" volunteered the
witness, the business would be abso-
lutely legitimate"
Witness Cautioned.
United States Attorney Wilson. who was
conducting the examination. interrupted
the witness. cautioning him that his optn-
ion was not desired. but he was 70 tell
what Lewis had told him.
Fletcher said Lewis wanted him to stay
in the company and offered to divide
I rofits, oue-third to witness ana ewo-
thirds for himself. Witness said he de-
to such an ARRANGEMENT ana was
told by Lewis that he had to divide his
share Of the profits with Mr.. Huston.
The witness was still testifying when
this report closed.
United States Attorney Wilson and his
assistants, r. s. Huidekoper and G. II.
Turner. are conducting the prosecution.
and the defendants are represented ny
Attorneys H e. Davis, c. II. Syme. Jonn
r Cuttings. George p. Hoover and ~. W.