The Washington times., 1915-02-20
Modern Workmen Of World Of.
ficers, Convicted Of Embez.
Element, Want New Trial.
Fifteen COUNTS IN CHARGE
Motion Expected to Be Filed in
Few Days by Counsel for
Defendants.

|
Court No. on an indictment charging
the embezzlement Of trust funds aggre-
eating s13.7OO belonging to the Modern
Wortmen of the World. will appeal to
the Court Of Appeals If the lower court
does not grant a new trial.
| Attorney wilton j. Lambert. of coun-
sci for the convicted men. made this
announcement today. 1t is expected the
motion for a new trial will be filed
within 4 few days.
| Masters was president and Kinnear
secretary of the fraternal insurance or
| ganization. which was incorporated in
| Virginia in 1902 and had thousands Of
policyholdcrs throughout the Southern
States. Almost all the policyholders
| were colored
Fifteen Counts.
Fifteen counts were contained in the
Indictment. it being charged the two
defendants embezzled sums ranging
from $500 to $500
According to the evidence at the time
Of the organization Of the Modern
w
Virginia had no insurance department.
in 1908 an insurance commissioner for
Virginia was appointed and he made an
examination Of the books Of the COM
pany which revealed, it was testified the
fact that the defendants, Masters and
Kinnear, were taking the funds out Of
the Modern Workmen Of the World and
using them to finance hlgh-interest loan
l.. L.,
trict.
1t was further contended that $4,000
had been diverted through the pur-
chase OF bonds from one Of the loan
companies which they controlled. and
the money in question placed in the
Peoples Savings Bank, which had
failed. 1t was charged that Masters and
Kinnear. as officers of the bank. had
advanced $116,000 to the loan company.
the bonds of which had been purchased
by the Modern Workmcn of the World.
Testimony at the trial OF Masters and
Kinnear was to the effect that upon
the discovery of these facts the defend
ants were sufnmaned before the attor-
ney general for the State of Virginia
to show cause why their licenses should
not be revoked. Colonel Button, who
was the insurance commissioner OF
defendants gave the attorney general,
their pledge that II their license was
not Cancelled they would not offend In
a like manner in the future. and would
Immediately put back the money thcy'
had diverted.
False Entries Charged.
The defendants. according to the tes-
timony converted the money mentioned
in the indictment to their own use
through the instrumentality of false
entries on their books. according to
the Government contention, and made
the records show that some of the
funds in question had been loaned to
persons named who were. 1t is charged.
the clerks Of the defendants who had
ben used for their accommodation.
Other instances covered by the IN
dctment related to loans actually made
for which the defendants charged
commission OF Is per cent, and it was
testified. converted the commission
thus obtained to their own use not
withstanding the fact that each was
paid so week to transact the COM
panYs affairs.
The original investigation Of the finan-
cial affairs of the Modern Workmen Of
the World began as a result Of diff
culties arising from the consolidation OF
ance Company. OF the District. The su-
perintendent Of Insurance Of the Dis
trict. George w. Ingham. objected to the
consolidation. 1t was charged. because
he did not believe that the merger was
in good faith.
S. McComas Hawken Assistant United
States Attorney. was assigned by the
District Attorney in 1912 to probe into
the manner In which the funds OF the
Modern Workmen of the World had been
handled his investigation covering about
six weeks. The indictment on which
Masters and kinnear were convicted yes
terday resulted from this inquiry.
Indictment Attacked.
Attorneys for the accused insurance
heads made vigorous attack on the in
dictment. The two men were placed on
trial before Justice Stafford in 1918, and
were convicted and heavy fine was i'm
posed by the court. The Court Of APP
peals granted u new trial on "a technical
ity involving a ruling by the lower
court.
The second trial began January 25
last. and the case was submitted to the
jury at o'clock last night, and ver-
dict of guilty on seven of the fifteen
counts in the indictment was returned
at 10 o'clock.
Closing arguments of respective coun-
all day yesterday. Prosecutor Hawken
and Bolitha j. Laws. who assisted Mr..
Hawken in the case, argued for the
Government, while Attorney Wilton }.
Lambert. Henry T.. Davis and George
Norton each pleaded for the defend
ants. The case was one Of the most
hotly contested which has been tried in
1 ,,rtv IN,