Evening star., 1934-01-08
Bates Warren, Counsel for
Bank, Jointly Accused.
Frame-Up Plea Fails.
CREDIT TO CONTINENTAL
BASIS OF ALLEGATION
Grand Jury Holds Money Was Ad-
vanced Unsoundly for Divi-
dend Payments.

Col. Wade H. Cooper, president of the
Commercial National Bank, and Bates
Warren, its general counsel, were in
dicted today by the District grand jury
for an alleged conspiracy to misapply
100000 of the banks funds.
A last-minUte effort by Col Cooper to
ward off the indictment failed when the
grand jury refused to grant his request
that he be allowed to appear before it
and explain the alegedly criminal
transactions. His request was con-
tained in letter in which he reiterated
his claim that the charge is the result
Of efforts of Treasury officials to dis
credit him.
Col Cooper. who was present when
the indictment was returned, was re-
leased after Milton Kronheim had
posted $4,000 bond for him: A sim
liar bond was posted for Mr.. Warren,
who was absent, due to illness.
Two Offenses Mentioned.
The indictment charged the alleged
conspiracy existed from January 10.
1880, to February 27, 1888. Two classes
Of alleged offenSes are set forth.
The first is that they unlawfully
and feloniously caused the Continental
Trust Co., which had been merged
with the Commercial Bank. to be
credited with sl05,000 on the books OF
the latter institution. This money, it
is charged, was used to pay dividends
on stock of the Continental Trust Co.,
both Cooper and Warren being large
holders of this stock
The other charge is that they caused
the Commercial Bank to lend the
Continental approximately 100000,
accepting notes of the Continental
Bank as security. This money aIlegedly
was used in buying stock of both in
StitutionS. The Continental Trust Co.,
at that time, is was said, controlled
the Commerciar Bank.
Bank Condition Factor.
The indictment charges that these
transactions were put through when
the financial condition of the Con-
tinental Trust Co. forbade its becom-
ing indebted to the Commercial Bank
in any sum-" 1t was also charged
that the condition of the Continental
Mr.. Warren extremely reckless, re-
sulting in great financial loss to the
bank" and that AL of these actions
were not for the good of the bank. but
for the personal benenL of Col. Cooper,
Mr.. Warren and others"
Col. Cooper IS alleged to have re-
ceived s18,696.50 in dividends and Mr..
Warren S18,472.50. The indictment set
forth total of 81 overt acts.
The indictment also charged that
Col Cooper caused the issuance of
five checks totaling $50, ,36819 to Y. E.
Booker & Co. The purpose for which
these checks were drawn was not set
forth in the indictment.
United States Attorney Leo A Rover,
who handled the case. said approx
to the Continental Trust Co. remains
unpaid
Calls Charge "Frame-Up."
The indictments were characterized
today by Col. Cooper as a "frame-up."
L spoke to Mr.. Rover a few months
ago about indictment Of Treasury off,
cials. December Is I wrote him let
ter. He replied asking for a summary
of the facts. 1 had a talk with Ralph
Goldsworthy, foreman of the grand jury
before Christmas. He stated he had
had talk->with Mr. Rover and that
as the holidays intervened prior to re-
tiring of the old jury December 20, he
thought best to take the matter up
with the new grand jury.
"Rover'S Office seems to have gotten
busy with Treasury officials, and run
Robert c. Baldwin, receiver of the Com
mercial and Samuel Simon of the De-
partment of Justice in as puppets of
the Treasury officials to drag a red
herring across the trail.
Instead of paying dividends in order
to receive them, I reduced the salary
Of myself as president Of the Com
mercial National Bank from S25 900 to
$4,000 and little later to $4,000, and
compelled reductions all along the line.
I refused to accept any salary from
the Continental Trust Co. Everything
in connection with this whole matter
Continued on Page 2. Column g.