Evening star., 1937-04-05
E.J.H|LL INDICTED
ONFRAUD CHARGE
Investment Firm Head Is
Accused of Pecu|ation
Covering 5 States.

that investors in the District and at
least five States were fleeced of some
$l44000 during 1888 and 1874 was re-
vealed today with the indictment OF
Frank j. Hill, head of Crumpton &
Co., on charges of using the mails to
defraud and violating the securities
act.
Assistant United States Attorney
Cecil Hef1in, who is handling the
case, said Nation wide search for
Hill has been in progress since shortly
after his disappearance in the Fall
of 1894.
Hills activities have been under in
yestigation by the Securities and Ex-
change Commission for almost two
years. In June, 1885, the commission
obtained an injunction to prevent
Hills office manager continuing his
business.
He is alleged to have obtained
Cities Service common stock from his
customers on the representation that
1t would be sold and the proceeds used
for the purchase Of Cities Service S6
preferred. Instead of buying the pre-
ferred stock. however, Hill is said to
have pocketed what he obtained from
the common stock sale.
Employed IS Statesmen.
During the l8 months he operated
here he employed about IS statesmen,
who worked in the District, Maryland,
Virginia, Tennessee, North Carolina,
New Jersey and other States, Hef1in
declared Offices of the firm were in
the Woodward Building. Most of his
customers were outside of Washington.
Hill is said to have come to WASH
ington in 1888 and established Crump-
ton & Co., which he described to
those with whom he dealt as an old
and reliable brokerage concern From
his Offices here he conducted a mail
campaign, proposing to prospective
customers that they trade in their
Cities Service for s6 preferred, the
indictment charged.
In order to stimulate sales, Hill
conducted or pretended to conduct a
prize essay contest on reasons for ex-
changing common stock for preferred
1t was alleged.
The voluminous indictment was in
10 counts, each alleging the sending Of
letter to a customer.
The only one of the alleged victims
named who lived in the District was
Mrs. Anna G. Bean, 1921 TunlaW road
"A Indictments Returned.
The Indictment was one of "a, COM
prising the last report Of the current
grand jury. A new jury will be Sc
lected tomorrow
Among the true bills was one
charging Charles B. Eliot former OFF,
cial in the Works Progress Admins
tration, with forging three check in
dorsements in connection with alleged
pay roll padding.
Eliot, who is Harvard graduate
and held position of considerable
trust in the Federal agency, is alleged
to have placed the name of a flcti-
tious person, ALEX Dubois" on the
pay roll over which he had supervi-
sion, and to have given instructions
that the pay checks be delivered to
him.
The indictment charges that he
forged the Endorsement on three
checks, one for s140 and two for $3.50,
and then passed them.
Discovery of the alleged peculation
was made during personnel check
up. Eliot was arrested by Justice De-
partment operatives and released on
bail after arraignment before United
States Commissioner Needham c.
Turnage.
Five men were charged with con-
spring to destroy private property as
result of the investigation into the
so-called barber shop union racket
here. They were Philip Cello. said to
be head of BARRIERS union; Sam
Graham Hambrick, business agent;
William J. Wise, Edwin Lowe and
Harry C. Crossley.
The indictment charged that the
five conspired to force non-union
barber shops to meet the union stand
ard by campaign of terrorism, which
included smashing of windows and
throwing OF stencil bombs" The
grand jury alleged in the true bill
that four windows were broken and
one stencil bomb" thrown.
Fund Misapplication Charged.
A charge of misapplication of funds
of the City Bank was placed against
Henry Berman, automobile dealer, of
the 2800 block of Georgia avenue, and
Robert A. Wrenn, 1900 block of Thirty
third street, who has been a teller
at the bank since March, 1884
Wrenn is alleged to have permitted
Berman to kite" two checks totaling
1900 February Z, 1886. after having
been instructed by the bank to refuse
to cash Berman's drafts.
Three homicide indictments we're re-
turned. In one, Albert C. johnson,
81, was charged with manslaughter in
connection with the death october q
of Lester C. Thomas, 40, at a house
in the TOO block of Sixth street, where
both men roomed Police said both
had been drinking. Thomas skull was
fractured when he struck his head on
bed, it was stated.
A flrst-degree murder charge was
lodged against Samuel Jones, colored,
73. who allegedly shot John w. Green,
colored, 54, February 81, in a store
in the 100 block of Seventh street.
Edward w. Culpeper, %, colored,
was charged with second-degree mur-
der in connection with the fatal stab
bing February 10 of Henry Hutton.
also colored. The Staying occurred in
the 1900 block Of U street.
Other Indictments.
Others indicted were Robert r.
Lovett, nonsupport Of wife and minor
child; Nelson N. Carter, John White,