Evening Star Newspaper, June 11, 1926, Page 3

FENNING IS DECLARED TO BE SUBJECT TO IMPEACHMENT Rankin Insists Commissioner Is Federal Officer. Acceptance of Bond Fees Held to Lay Official Open to Criminal Prosecution. (Continued from First Page.) in & number of cases, took out a so- liottor's license for the purpose of writing his own bonds is not disputed, and Mr. Fenning admits in his own testimony that he collected commis- slons on the premiums of these bonds in the case of World War veterans alone amounting to approximately $5,000, no part of which has ever been returned to their estates. “He thereby placed himself in the position in which his personal interest to write large bonds and getting the vremiums conflicted with his duties 10 his ward to keep down the size of the bond and thereby en the premium. In this situation Mr. Fen- ning was secretly in the service of the company, rendering valuable e 10 it and to himself at the ex- in the service of the opposite party while the agent is act- ing ostensibly for the principal only is a fraud upon the latter and a breach of public morals that the law will not permit.’ (Ferguson vs. Gooch, 84 Va. 1) * ¢ Questions Acceptance of Fee “It is a slenifi & on the character that though, up to 1915, he had handled the es of insane wards for 15 ears and had been collecting com missions on funds of his wards in vested by him, that after the decision £ the auditor, which was affirmed by ie court in the Hoff case in 1915, he did not return a penny of the money that he had received for 15 vears to any of the estates of his ward: cent collected by Mr. Fenning vears preceding the de auditor in the Hoff cas: uned by him, notwithstandin Auty to immediately ascer into_the estates of I pendents the money that he had mittedly tuken and notwithstanding the further fact that out of the estates of the insane World War veterans alone, for whom he is guardian, he received commissions approximat- ing $100.000 since 1920, for which the s rendered b act ¥ no personal service. roughout his entire service to his wards, by being the agent of the honding company which wrote h: bonds, he has been keeping in the position where his pers terests were antagoni: Tt having been_ admitted that sum aggregating $5.000 or more heen recefved by Mr. Fenning dur “lie past five vears as premiums on honds, which premiums were paid out the funds of his wards, the next uestion is whether he is guilty of lement under scction S41 of e code in appropriating that amount of money to his own “The Court of App Columbia in the of United States vs. Henry (47 Washington Law Reporter, 297) has held that any num- ber of scparate acts of embezzlement may be included within the same in- dictment. Quotes District Code. Section 841 of the Di code is as follow. Any executor, administr ardian, trustee, rece or other officer into whose po: money, securities, or other pr of the property or estate of 4 person may come virture own office_or employment fraudulently convert or the same to his own us vight or claim to an costs, and charges thereon be deemed guilty the entire amount or value of the money or other prop: so comin; into his_po: n and converted or appropriated to his own use, and shall be punis fine not exceeding 21,000 or by imprisonment not exceed- 10 years, or both.’ the code is similar ind there have been of the Court of sections o ation by fiduciari wards, uction put on these ¢ the Court of Apy triet of Columbia. the does not have to allege or prove guilty not his lielpless of the District trict of Co- of h who \ppropriate a number of Appeals_applying cases of of the fu the cons - | pal Jifference -hetween larceny and Call 50.” LOCAT, MOVING ALS ROOMS PAPERED WITH EMBOSS) C. A, MAID- Potomac 10160 M st sw. 11 Was 1 N Y 1 I\ll, l’)F Frl;‘NL New York. adelphia_or - mare. - SMITH'S TRANSFER AND STOR- and “Washington. a1k local moving ¢ TiiE 0K \oToR, EX: E "1 EVER DISAPPOINT PRINTING IN A HURRY BYRON S. ADAMS \gh Grade. but_not high pricod. o L SAUA “T1th Street N REMOVAL NOTICE! COLUMBIA OPTICAL CO. Now Located At 1410 G ST. N.W EDWIN_H. SILVER, Presider When You Need Printing—CONSULT This Millton Dollar Printing Plant The National Capital Press | -1212 D ST. N ROOFS PAINTED — this reliable firm are guaranteed st leaks or rust for several years. Whil sou're at it, get the best. Let us estimate. ROOFING KmN (‘OMPA;‘{Yi;thm Main 933 NOTICE Georgetown University School of Dentistry The Dental Infirmary will be closed for examinations and repairs until June twenty- first. It will reopen to the public Monday. Juns twonty-first. at 9 am. and will be open thereafter dally except Sunday from 9 am. to ! E Thro‘;aam*\}z“r Hands —and think nothing can be done to drive moths out of vour furniture. We can do It without taking the furniture apart and it will be as €ood as ever. Phone Main 3621 Tor information. Bedell Mfg. Co. 611 ST. N.W. WINDOW SCREEKS for ALL SIZE WINDOWS —made to measurs as you want them. Sts. N.B. Window Shades and Screen: m. _Phons Lin. 870 ROOF REPAIRING BY IRONCLAD -means better work for less money. North 26_or 27 for Roofers. IRONCLAD Call Company Sts. N.E. " | cas < | War vete himself | 119 3rd St. S.W. | Roofing _9th & Evarts | i . the defendant knowingly committed the act of embezzlement. * * * “In the case of United States vs, Fields (27 Appeals, D. C., 434), the de- fendant, who was a lawyer, was in- | for embezzlement of funds coming into hi: nds as a fiduciary, appoint- ed, like Fenning, by the court. He was deferded by Mr. Frank J. Hogan, and was convicted and sentenced ton tive yearsiin the penitentiary. In af- firming the sentence, the Court of Ap- peals sald that under the statute the Government did not have to prove a | zuilty knowledge, and that it was sufficient to allege in the indictment that the defendant at a certain time {and in the District of Columbia ‘un- lawfully and fradulently converted and appropriated the same to his own use and did then and there embezzle the same’ * * * Never Denied Fees. Fenning has never ot that when, for e id $40 of his ward’s money as the | premium on his bond as a guardian, | he knew that he was going to get | $10 of it back. He does not deny that | fn every such case he put the $10 in his personal pocket. He does not deny that he concealed this fact from the judges of the court, from wards, and _from the auditor amined and stated all his a | Mr. Fenning in all cases where he | paid 4 premium on bonds with money | of his wards got one-fourth of the {money back, and kept it. He always | knew when he paid the premfum with the ward's money that he was going to get that money back. He then filed with the court and auditor his ac count that he had paid $40, for ex- ampie, when he had only paid $30, | keeping the difference for himself. He did not do this in an isolated but it was his secret pr | covering a long period of years. * ¢ * “To show the want of good faith of Mr. Fenning and his deliberate at | tempt to deceive this committee, as | well as the Gibson subcommittee of the committee on the District of Co- lumbia and the committee on World ns' legislation, of which I |am a member, attention is called to the fact that he claimed that the Court t Appeals of the District of Columbia had decided in the case of Magruder Drury that it was lawful for him to put commissions on loans of his wards’ money into his own pocket, a ctice_that he had kept up for 15 He did not tell either commit- t the decision of the Court of of the District of Columbfa in the Magruder vs. Drury case had been reversed by the Supreme Court of the { United States in 235 United States, page 106. Being confronted by Repre- sentative Gilbe reference to this Supreme Court decision, he stated un der oath that he did not know the | Court of Appeals had been reversed in that case and did not know that the Supreme Court of the United States had decided that his retention of com- missions was unlawful. But reference to the report of the auditor of the Dis- trict of Columbia in the Adler case, filed on May 13, 1926, will show that in the case of Edward F. Hoff, an in- sane ward, Fenning was notified in July, 1915, that the Supreme Court of the Unite ates had declded fn M: ruder vs. Drury in 1914 that Mr Fenning’s taking of commissions on money of his wards invested by him was illegal, and the auditor of the Su- preme Court of the District of Colum- ia, on the authority of the deci: of Magruder vs. Drury, at that time stopped Mr. Fenning from collecting all the commissions of this character that were known to the auditor at the time. The auditor did not learn of these commissions Fenning was re- ceiving from the premiums on these bonds until May 8, 1926, as the record 1 show. Doubts Lack of Memory. “It Is unthinkable that Mr. Fenning, who was compelled by the auditor to return to the estate of his ward, Ed- ward F. Hoff, in 1915 commissions that he had abstracted on the author- ity of Magruder Drury, could have forgotten that decision of the Supreme Court of the United States. especially in view of the fact that Mr. Fenning is not only an educated man but is a lawver practicing at the bar of the| District of Columbia. * * * ! “In all cases of embezzlement the defendant comes lawfully in possession of the money embezzled. The princi- disputed mple, he | i embezzlement lies in the manner in which possession of the property is ed. In larceny there i3 a tres- accompanied by an intent to lement there is a fraudulent conversion of property the possession of which was lawfully ac- quired “Following this distinction, it is not | unfair to say that all the commissions acquired by Mr. Fenning prior to 1915, which he appropriated to his “Fifteen Minutes From F Street” Detached Homes for Folks of Taste Small Tots ‘Books Bought ‘Yots “Bring Them In” or Phone Fr. 5116 PEARLMAN’S, 933 G St.N.W. arge v Gall Qil Burner, I411'NY. AVE. ~ MAIN 6380 APARTMENTS 1661 Crescent P1. Adjolning 2500 Sixteenth VISIT THEM! es| i i1 Arranged for Entertaining 2548 Mass. Ave.N.W. Open Daily and Sunday Till 9 P.M. For Further Information See Your Broker Code of the District of Columbia has been in effect since the code was ap- proved on March 3, 1901. States (28 App. D. C. charged the jury that although they should find that the defendant had no jintent to convert the |own use, when he afterward failed to alone that he converted it to his own the Court of Appeals in that case, and things, that lay the venue in the District of Colum- {dicted under section 841 of the code |bia that the case was reversed Columbla that the question of intent to defraud s not a material element in tho crime that the Government is not required to prove an intent to defr time of the wrongful conv States (39 Appeals to the estates of his wards has been him to violate a pretended application of a section of the code r bates. ders (16 Howard, 642) dishonest and They had been lending on trust funds gains, for fear that the conscience of dulge trustees in such an obliquity of con: character, deals with the trust estate all the gain which he has made.’ ' THE EVENING S | own use and never has returned to the [ & Co. (Inc) and that he has been | estates of his wards, have been em- bezzled, because section 841 of the “In the case of Woodward Tnited 323), the court money to his return it to the owner, the jury would be justified in finding from that fact use. That principle was approved by it was only because, among other the indictment failed to ““Is is settled law in the District of of embezzlement, and ud at the sion of the atterson vs. United . D. (., p. 84). Answers Fenning Claim. “Mr. Fenning's persistent excuse for not returning premiums illegally held money. See that his conscience would not permit lative to re- In the case of Barney vs. Saun- negligent trustees had made a similar excuse for not paying certain us interests to the estate of their wards. irious at rious interest and keeping the usurious part of the interest for them- selve: The Supreme Court of the United States said: **They cannot be allowed to aver that the profits made on the trust notes should be put in their own pockets, because they were unlawful the cestul que trust should be defiled by the participation in them. To in sience would be holding out im munity for misconduet and an induce ment to speculate in trust funds and put them in peril. It is a well settled | principle of equity that where a trustee, or one standing in a fiduciary al profit, he shall for his own persol stul que trust for account with the c “It is pathetic that Mr. Fenning, who has plundered the estate of so many insane veterans, should feel u pang of conscience in returning to their estates money that he has un- lawfully taken out of premiums on onds which his wards paid for be- cause he might defile the conscience of his wards. * * * Sales to District Cited. “uPestimony has been given before this committee relating to purchases by the District of Columbia from | Rudolph, West & Co. of an enormous | quantity of supplies, which matter is relevant, because if these purchases are in violation of law (bmmissioner Fenning is as culpable Commis- sioner Rudolph, from whose firm the | purchases have been made. In the past year more than $72,000 | of supplies_were purchased by the District of Columbia from the firm of Rudloph, West & Co., under contracts entered Into with that firm by the Board of Commissioners, of which Mr. Fenning is a member. All com- peting contractors were unable to get contracts for more than $13,000 worth of supplies. Commissioner Rudolph has admitted that he owns one-third of the capital stock of Rudolph, W A BOOKLET that you shouldread before you decide on your vacation... Within quick access of the city by automobile or electric train is one of the finest vaca- tion playgrounds in America —the tidewater country along the Severn, South and Mag- othy Rivers and the Chesa- peake Bay. Qur new booklet, ‘““An All- Summer Vacation,”” tells about the charming summer colonies in this region of pine forests and salt water where, at moderate cost, you can buy, rent or build a cozy cottage or bungalow, and extend the pleasures of vacation through- out the summer. .« . The booklet is profusely illus- trated with pictures that show the scenic beauties and health- building pleasures that await mfld in this natural vacation A cog of the booklet will be mailed to you without any cost or obligation, if you will fill in your name and address on the coupon below and mail it to our Baltimore Terminal, Howard and Lombard Streets. WASHINGTON BALTIMORE & ANNAPOLIS ELECTRIC RAILROAD COMPANY of goods the firm sold to the District amounted to 20 per cent. ever since he took office this last time. | tion counsel. AR, WASHINGTO! had it in their power to prevent the payment for goods delivered under such contracts, because the above atute says that no payment shall be made thereon by the District or any officer thereof. “Mr. Rudolph continues to hide be- hind the alleged opinion and brief of the corporation counsel, but the cor- poration counsel appears never to |l getting one-third of the net profits of the firm since he has been holding the office of Commissioner, and there- fore he got one-third of the net profit made by the firm on the $72,000 worth of Columbia under oath He stated net profits last year. that these “As_evidence that Commissioner Rudolph knew that this practice was | illegal, it is a matter of common | Penal Code, which reads as follows: knowledge that he caused to be pub- | ; ’ lished in the Washington newspapers | Guilt Alleged to Both. when he was appointed Commissioner the first time that he had severed all connection with this firm, and under | that pretext he served four years a Commissioner, during, which time this practice continued and has continued tion, joint stock company of associa- | tion, and no member or agent of an firm or person, directly or indirect | interested in the pecun stock company, assoc Shall be employed or s an officer or agent of the United States for the transaction of business with | such corporation, joint stock com- | pany, dssociation or firm. Whosoeve shall the provisions of this section $2,000 years. Commi make these contracts alone issloner could enter into these con- tracts alone. It is only while sitting Board of Commissioners, yn an executive branch of the United States Government known as the District of Columbia, that these contracts made and approved by the Commis- | sloners, always ‘sitting as a. board “If Commissioner Rudolph is gullty, as he surely is, Fenning is just as | gullty, because if the Commissione sitting as a board enter into thes contracts in the absence of Commis. | oner Rudolph, then Commissioner | Fenning is compelled to vote on the question, and without Commissio Tenning these contracts could not entered into; and they are not only vold under section 32 of the Revised | Statutes relating to the District of Columbia, but they are criminal un | der section 41 of ‘the United States Penal Code. Charges Consplracy. “There can be no question in the mind of a reasonable man who hus heard or read the testimony in these various investigations but that there is a collusive arrangement amounting a conspirace between Commissioner e i New Apartments “Cresthill” 1430 Belmont St. Lowest Rentals 52.50 to $80. Large porches Elevator Service 42 rented; 6 left Moore & Hill (Inc.) 730 17th St. esmaeTL Scores Counsel Opinion. “He sought to justify the practice | in his testimony by an opinion, which | was put in the record, of the corpora- | The corporation counsel | comes under him, and is subject to his will. The opinion was prepared for the Senate committee when it had under consideration the question of the confirmation of Commissioner Rudolph the last time. It is an utter. ly frivolous opinion and shows a lack of knowledge of the United States penal code as well as a lack of inter. pretation of the revised statutes re-| lating to the District of Columl found on page 202 of the volume so | entitled. Under the provisions of the re vised statutes relating to the District | of Columbla, at page 202, the Com- | missioners sit as a board in making contracts, and the law as well as the | practice of the commission differen tiates acts of the Commissioners “as a board” from other of the Com- missione: of sald statute | is as follow: 1 “*“All contracts made by the Com missioners in which any member of the board shall be personally inter- ested shall be void, and no p shall be made thereon by the District or any officers thereof.’ “Commissioner Fenning has nlwa known, and Commissioner Rudolph has always known that he (Rudolph) is personally interested in all con- tracts made with Rudolph, West & Co., because he owns one-third of the stock and gets 20 per cent of the net profits of all goods, wares and mer- chandise sold to the District of (o lumbia, and these goods are deliv- ered and have been delivered ever since Commissioner Fenning has been | in offica to the Police Department and to the Fire Department. directly un- | der the control of Commissioner Fen- ning, and to the other departments | directly under the control of Com- sioner Rudolph, and Commission- tudolph is no more guilty of vio- | ing the law in this respect than | mmissioner Fenning, who is neces sarily particeps criminis in approv ing payments to Rudolph, West & violate No Com 1 Co. on contracts declared void by the statute; and both Commissioner Fen Better Built COMPLETE NEW SIX-ROOM HOMES Sample House Open Daily For Inspection th and Madison MERCHANTS! - ATTENTION | | Overlooking the Site of the New $2,225,000 McKinley High School We Are Building 72 New Homes at This Desirable, Convenient Location— 3rd 4th & T & U Sts. N.E. —and have reserved several lots for stores—if you are in the market for a business stand or good speculation—see us now and we will build to suit you at rock-bottom prices. Cars pass the door. R (25 H.R.HOWENSTEIN il INCORPORATED @ 1311 H STREET NORTHWEST m MR APARTMENTS FOR RENT PHILLIPS TERRACE 1601 Argonne Place Just North of Columbia Rd. at 16th St. WHO WANTS AN APARTMENT WITH LARGE PORCH OVERLOOKING BEAUTIFUL ROCK CREEK PARK? The answer to this question is, “I do.” Therefore, do not delay to inspect our apartments with these large screened. PORCHES. Many a hot Summer day can be spent in solid comfort on the PORCHES in PHILLIPS TERRACE. ALWAYS'A BREEZE FROM ROCK CREEK PARK i i A Appointments of one room, reqeption hall, bath and I\}I’llrphy bed to 5 rooms, re«v:epnon hall, bath and & PORCH. Unexcelled Service, Resident Manager William S. Phillips & Co. Incorporated 1432 K St. T R PR AR investigated Fenning and have heard of section 41 of the United ' n joint account, which the: Co. \White, Fenning has “‘No officer or agent of any corpori- | secret files of St. | which enabled 3 ry profits ov | touch with rel ntracts of such corporation, joint !in order to practice barratr. or firm, | is known as o by | various parts of ing out to them wha | which they | him. wall be fined not more than | is the only ud imprisoned not more than | plo had foner Rudolph could not | s | other attorneys. | to have guardians appointed, and in| CAFRITZ | 14th & K. D. C, FRIDAY, JUN ning and Commissioner Rudolph have | Fenning and Dr. V superintendent of pital, matters, has existed for. many t. Kl relative to these and that tF abeth's Hos.| carried or sent them to Dr. White, | guardianship! who signed them and returned them ! ngement | to him. He then presented them to| For in-| the court, and with each one presented | was being| an order for the court to sign ap-| years ago | pointing Frederick A. Fenning as, guardian of the person and estate of | e partners| the ward involved. vears in| “Out of the estates of t nd keeping | War Veterans alone M. till have,' been receiving comission: Loan & Trust!$20,000 a year for t, though Dr.| cuardian for these disabled veterans. | access to all the| It is shown conclusively, and is not | Clizabeth's Hospital, | denied, that he only visited the hos- | ined the information | pital about once every two weeks for | him to prosecute his| not more than two hours at a time | nd to get inland that during the last few years insane people, he had had on an average of 98 wards v and what in that hospital. | “capping the busi "' “The only other personal connection | solicitation of the slatives in he had with them, according to the | v hold. testimonv, was to write a letter twice | cear to Dr. White giving a lis of these wards and telling him to go would have in em to one of four business houses It s also shown that I Washington and buy them a few | person outside of the e | clothes for the season. | 1 beth’s Hospital who! “It js shown by every case of an | : cret records | insane World War veteran that we ind who enjoyed that advantage over | e enabled to get into the record that Fenning received more commis- (Continued on Page 6, Column 2.) White 20 D in 1me to his r “It is shown that the have been for ma huying second-trust not tance, when of abou it the Washington his services as It is shown th ind thereby ob dianship pi rag Be cautioned against use of Citrate of Magnesia bottles more than oncel Precaution prescribay EVERFRESH — sterfi.!y sealed in bottles use. BUT 0! At your drugglst’s MAGNESIA o enning to be the grest s of S “It 1s further shown that more than 00 of these applications, pos I hundred 15 confined in | were turned over to Fen. Procedure Is Described. | White petitioned the court! BUGGESTIONS The best-dress- ed men wear “Dr every case recommended ning be appointed. Mr. Fenning ad mitted on cross-examination that he wrote those petitions himself. were in his manuscript cover that Fen suits at least on alternate days. It promotes un- varying fresh appearance. SIDNEY WEST (Ine.) , which 500 LEETH BROTHERS Most Perfectly Equipped Homes A Summer Suit for EVERY Purse and Personality The largest variety in the history of this store. All are fitted with our most ex- acting standards, even more apparent in lighter fabrics. Palm Beaches Linens 15" 18" Mohairs Flannels 20" 28" Shantung Weatherweight Silks Worsteds Tripleweave Poplin Worsteds Silks 35.00 45.00 NEW fabrics—NEW models NEW to a nicety— most are Exclusively at i, in Chevy Chase In addition to those details of construction and equipment that are “Life- Time” features, every one of these Homes is fitted with a Frigidaire Electric Refrigerator Each of the many de- signs of Homes is distinct- ly artistic, combined with liveableness that will ap- peal to the ladies—Center Hall or Cottage type—one and two baths—and sepa- rate garage. $12,950 to $15.950 And accommodating terms Open 9 AM. 10 9 PM. Oot Wis. Ave. to one sqnare South of Bradley Lanc—opposite the | Eolf course of the Chevy Chase Club. | 2 &, Sidhe W@fi 14th & G Streets N.W. Owner and Builder of Communities M. 9080 | Vol. 1. No. 2 June 11, 1926 Lyon Village—A Community Lyon Village is now a growing community of about 100 families. The rapid growth of this high-class development has taken it out of the subdivision class and placed it among the enterprising civic groups now a part®of Greater Washington. It has an active citizens' association, pledged to progressive poicies— active in all matters pertaining to better social and housing conditions. Lyon Village Advantages The residents of Lyon Village enjoy several advantages not_found in any other develop- ment around Washington—free landscaping and a maintenance fund for public improve- ments. : This company is the fir: hood of Washington, and. vised, is the only one that h resident landscape architect, who puts in his entire time landscaping every home built, free of cost to the owner, and who is available to all residents of Lyon Village for advice on beautifying their homes. This assures every home attractive surroundings and outlook. The maintenance of the public improvements- sewers, cement sidewalks, water-bound ma- cadam streets, which have been installed by Lyon & Fitch, Inc., the owner of the prop- erty—is, in effect, guaranteed through the set- ting up of a maintenance fund which will ap- proximate $250,000. This fund also takes care of the expense of street lights and any legal fe incident to the enforcement of restrictions cov- ering: the property. in the neighbor- o far as it is ad- in its employ a The development of Lyon Village is natural, for the reason that it has the advantage of location (3 miles west of the \White House); highw r_which three bus lines furnish unexcelled service; street car service (18 min- utes to center of Washington) ; all modern im- provements; and, most important of all, re- strictions which establish the class of homes and residents—thus guaranteeing the invest- ment and protecting its future. ome of Mr. Karl L. Kerr. This home is an example of the landscaping done on every home in Lyon Village. An atmos- phere of Old England is given this modern house by following out the true English plan of land- scaping. R R R R R R R R R R R R R R SRR R R R AR YRR LR “Our Restrictions Are Your Protection” (