Evening star., 1932-05-31
Conspiracy to Loot Firm Of
$450,O00 for CoIored
Building Is Alleged.
TWO FORMER OFFICIALS
TESTIFY BEFORE JURY
Ten Overt Acts Are Specified by
Report Returned on National
Benefit Co.

An indictment charging a conspiracy
to loot the National Benefit Life In
surance Co. by embezzling S450000 OF
its funds and diverting the amount tC
the cost of completing the Coloreo
Masonic Temple at Eleventh and [
streets was returned today by the Dis
trict grand jury to Justice James M
Proctor against John T. Risher. former
president of the company, Mortimer
F. Smith, former assistant secretary
and Daniel M. Gary. an associate OF
Risher as a financial expert before
Risher became president of the in
surance company.
The National Benefit Life Insurance
Co. was considered the largest financial
concern of colored men in the world
before its recent troubles, resulting in
receivership.
Two Give Testimony.
Robert H Rutherford, former presi-
dent of the insurance company, and
Samuel w. Rutherford. former vice
president, mentioned in the indictment
as connected with the alleged con-
spiracy, appeared as Government wit
nessess before the grand jury. They
were not indicted.
The scheme to loot the corporation
as outlined in the indictment, dates
back to January l, 1929. and is said
to have continued through July 80
1880. The three defendants, together
with the two RutherfordS and others
to the grand jury unknown, are ac-
cused of conspiring together to take
S450000 of the insurance company's
funds and divert it to the completion
of the colored Masonic Temple.
Ten overt acts are set forth in the
Indictment as committed in further
ance of the alleged conspiracy. April
-, 1929, it is charged. contract was
drawn between the Most Worshipful
Acacia Grand Lodge of Free and Ac-
cepted Masons and Daniel NJ. Gary
and John T. Risher to refinance and
complete construction of the temple
building. April 80, 1929, Gary and
Risher, as agents of the Masonic lodge
entered into an agreement with Morti-
mer F. Smith to complete the build
ing. April 10. 1929, it is alleged, Smith
drew a check for $4,000 against the
funds of the insurance company pay
able to himself. May %. 1929. Smith
is said to have signed a contract with
the G. G. Loehler Construction Co. to
complete the building.
Premises Transferred.
May 90, 1929, Smith is alleged to
have caused the insurance company to
convey to him premises at 609 F street
1924 Thirteenth street and 1909 U
street, all belonging to the insurance
company. On the same day he is said
to have conveyed the properties to the
Loehler Construction Co. May 18. 1929
1t is alleged. Smith drew a check for
s42,500 against the funds of the in
surance company payable to the con-
struction company. May %. it is
charged, Smith caused a check for
S27500 to be drawn in favor of the
construction company.
Another check for S42 500 is said to
have been drawn by Smith against the
insurance company payable to H. w
Van Sender, and July 90, $780, Smith
is said to have drawn a check for
$4,000 against the insurance company
funds and caused the amount to be
paid to Risher.
The grand jurors declined to indict
Stein Williams, joy-riding; Harver
Avery, assault to rob; James T. SAWYER,
larceny after trust, and Roger L. Bark
er, violating white slave law.