Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-14
EX-DEPOS|TOR SUES
HARRY v. HAYNES
Mrs. Louise T. Chambers
Charges Fortune Dissipated
by Former Bank Head.

ciHnies' National Bank. "dissipated
her entire fortune" through a series of
allegedly unauthorized financial trans
actions, Mrs. Louise T. Chambers of
Wardman Park Hetel this afternoon
petitioned the District Supreme Court
for an order compelling Haynes to re-
1mburse her.
Haynes resigned as president of the
bank ON September Is, 1928. and about
two weeks later the institution was
merged with the Riggs National Bank.
Mrs. Chambers alleges the improper
transactions we're effected for her as
longtime depositor OF the bank by
Haynes WHITE he was serving as 1ts
head
The court was advised by the plain
tiff that she was never Informed that
her money had been unprofitably in
vested or that any material losses had
accrued to her and was wholly without
knowledge that the defendant had
squandered and dissipated her entire
capital until october 3, 1925" more
than two weeks after Haynes resigna-
Mrs Chambers asserted that she not
only lest stock totaling In present
market value about $4,000, but was
induced to sign blank notes making her
indebted to the bank for $4,000.
Sine stated she is now left 'practi-
eally penniless," whereas HAYNES Is
living "en the same scale of life that he
had been living prior to his resignation
or dismissal as president Of the said
bank.
Alleges Notes Signed.
~atif;ay, ~ the na,srt
toilews, in part
'iThe plaintiff for great many years
prior to 1922 was depositor in and did
business with the Farmers d. Mechanics
National Bank, of which the defendant,
Harry " Haynes, was then, and con-
tinued until September Is, 1928, to be,
president. In the year 1922 the plain
tiff had fer safekeeping in the vaults OF
the said Farmers e. Mechanics National
Bank ten C10) certificates Of shares OF
the common stock of the Rogers Peet
Co., for 100 shares each OF the par
value of 500 per share, and OF q pres
ent market value of about $14o per
share. At about this time plaintiff pur-
chased an apartment house at 1725 H
street northwest, in the City of Wash
tngton, and approached the said de-
PENDANT for a loan of $4,000 to COM
plete the purchase of said apartment;
that at the suggestion of the said de-
PENDANT, and having every confidence
In his integrity, as president OF said
bank, the plaintiff Endorsed In blank
each of the said certificates OF the
Rogers Peet Co., the same being taken
from the vaults of the bank for that
PURPOSE, and after such Endorsement
returned to the vaults thereof, and OBJ
tanned from the said bank q loan in
the sum Of $4,000; that within q few
months thereafter the $4,000 loan was
repaid to the said bank, with interest,
but the said 10 certificates of the CAPT.
tai stock of the Rogers Peet Co, in
dersed as aforesaid, were still retained
by the defendant in the vaults of the
aaid bank.
Asked to Join Pool, She Says.
"Soon after the repayment of the
aforesaid loan of $4,000, the plaintiff
was approached by the said defendant,
Harry v. HAYNES. with the suggestion
that the pIStntlH Join with himself and
other direct0rs Of the bank In o pool
for the purchase of certain shares OF
stock on the New York Stock Exchange,
representing to the plaintiff that there
was an opportunity for profit In such
a transaction. Upon the solicitation OF
the said defendant, the plaintiff auz
thorized him to invest in this enterprise
for her a sum not to exceed $4,000,
and a pool was formed for the puf-
chase of certain stock, in which pool
the defendant, certain directors OF the
said Farmers & Mechanics National
Bank and other parties whose names
are now unknown to the plaintiff were
members.
by virtue of the investment In this
pool for the purchase Of said shares OF
1T
and thereafter from time to time the
defendant informed the plaintiff that
they had purchased for her account
certain shares of stock on the Stock
Exchange, and particularly certain
shares of Producers & Refners, few
shares of stock Of the Pierce-Arrow
Motor Co. and 500 shares Of the stock
of the Austin Nichols Co.
The whole Of plaintiffs transactions
and business with the said defendant
were conducted in and through the said
Farmers & Mechanics National Bank,
and such was the plaintiffs confidence
and trust in the business standing OF
the said defendant and In his probity
and integrity that she not only indorssd
In blank the shares of stock OF the
Rogers Peet Co., which constituted
practically her entire fortune and al
most the sole source of her income, but
signed certain bank notes, with the as
surance that the defendant was Look
ing after her investments and probably
investing her money.
Received Statements.
while from time to time the plain
TIL would receive from W. B. Hibbs d
Co. certain stater7en Of transactions
had with them IS boxers and bankers,
att xHvtkt n
them and not knowing anything about
the contents Of said statements, she ir-
variably transmitted such statements,
usually unopened, to the defendant for
his consideration and attention. as he
was managing the plaintiffs business
and investments.
"The plaintiff was never informed
that her money had been unprofitably
invested or that any material losses
had accrued to her and was wholly
without knowledge that the defendant
had squandered and dissipated her en-
tire capital until the Sd of October,
1928, more than two weeks after the
defendant, Harry v. Haynes, had re-
signed the presidency Of the said
Farmers and Mechanics National Bank
and upon the day that there was an
neunced Q contemplated merger between
the said bank and the Riggs National
Der, 1928, the plaintiff was hrst ia
formed that the blank notes which she
had signed payable to the Farmers d
Mechanics National Bank had been
Allied in to an aggregate of abeut sl40,-
900 and that she was alleged TO be
indebted to the said bank in about that
sum.
THE plaintiff was further informed
that the value OF the collateral held by
the said bank as security for these
notes aggregated only about $4,000
and upon that day she learned that the
remaining 500 shares Of the common
stock of the Rogers Peet Co., which
L. i.n lnfk Ia