Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1859-01-11
Prosecution of MIR. Deneale.

day evening last ahu resulteu III us coihiul1-
ment for further examination before the County
Court on the fourth Monday in this mouth
Mr.. d. was admitted to bail in the sum of 49,
900, aud has retured to his home in Rockingham.
The great interest felt in regard to the matter
induces US 10 present the facts OF the case more
at length. In doing so we shall endeavor toI
state fairly what is alleged against MIR. Deneale.
and also the view taken of the transactions in
question by the Counsel engaged in his defence.
1t seems that on the 18th day OF November
last, Mr.. Deneale came to Staunton, IN comPa-
nv with Mr.. L. A. Stands, for the purpose OF
arranging some matters of Importance with the
Valley Bank. Mr.. Stands had been to S'aun'
ton on that day attending to business OF hiS
own, and upon his way back met MIR. Deneale
at Mt Sidney, who stated his desire to consolidate
his Indebtedness to the Bank and solicited Shands
to return with him to Stauuton. Mr.. ShandS
complied with his request, and on that nighe,
conference was held at Mr.. Deneale's room at
the Hotel, between NJ essrs. Deneale and Shanos,
and Mr.. Taylor, the Cashier, and Mr.. Trout,
Director of the Bank. Mr. Deneale stated that
his object was to take up certain discounted
notes and acceptances of man named Hoover,
of Washington City, for which MIR. u. was
bound. Two of these were past due and protest
ed, and two of them had not mat0red-the whole
amounting to about nine thousand dollars MI
Allen @. Bryan, of Harrisonburg, was also al
endorser upon some or perhaps all OF these ac-
ceptapces. Both Mr.. Bryan and Mr.. shands
had been the general endorsers of Mr.. Deneale
in the Bank of the Valley and the Bank OF Rock
inghaln, and had implicit confidence in his in
tegrty Mr.. Deneale represented Hoover, who
had been his cattle merchant, to be in failing
circumstances, or that his property was so cover
ed up that the money could not be made out OF
him, but thought if he had the paper IN his
hands and made q visit promptly to Wash
ington, that he might arrange the matter with
Hoover and save himself-Hooyer owing him,
according to his statement, about seventeen
thousand dollars. Mr.. Deneale proposed to Ell
feet his purpose by substituting his own nego-
table note for nine thousand dollars, endorsed
by Alien @. Bryan and E. A. Stands, in lieu OF
the Hoover acceptances 1t was suggested at
the conference on the night of the 10th, that the
Bank would probably go into the arrangement
if Mr.. Deneale would execute deed of trust,
for the purpose of strengthening his endorsers.
This Mr.. d. protested his willingness to do, max
ing au exhibit of his property, from which both
Mr.. Stands and Mr.. Trout were satisfied of his
solvency. The next day 9th OF November
was the discount day at the Bank. Mr.. De-
MEALS proposition for the discount OF negotla-
BILE note of nine thousand dollars, endorsed by
BRYAN and Stands, to enable him to lift the
Hoover paper, came before the Board, MI
Deneale having blank negotiable note en-
dorsed by Mr.. Bryan in his possession. The
Board declined to make the arrangement unless
an additional endorser were given, or unless Mr..
Deneale gave deed of trust strengthening bis
proposed endorsers. The fact was communicate
ed to him, and he expressed his readiness to ex-
ecute the deed, either for the immediate benefit
OF the Bank, or for the security of Bryan and
Stands. The Bank preferred the latter arrange
ment, and Mr.. Deneale executed the deed to Mr.
Trout, conveying to him q tract OF land con-
tanning 1877 acres, four negroes, seventy head o.
stock cattle, eight head of horses and four mules
an amount of property deemed abundantly am
pie to secure the nine thousand dollars, ant
expressing his willingness to give additional
indemnity whenever it was desired. Mr.
Stands states that he did NOT, and did moi
intend to endorse the note until this deed was
executed. The deed given, the Bank made
the arrangement aud the parties returned. to
Harrsonburg, Mr.. Trout having delivered the
deed to Mr. Stands with the understanding that
it was to be recorded whenever Stands and
Bryan deemed that their interest or that of the
Bank required it. Upon reaching Harrison
burg Mr.. Stands learned that the negro wo-
man embraced in the decd bad been sold. He
conferred with Mr.. Deneale in regard to the
matter, who informed him that the woman did
not suit Mrs. Deneale, and that her place would
be supplied by another, but that there was an
abundance of property conveyed in the deed
without the woman; and Mr.. Stands became
satisfied in regard to the matter. Subsequently
rumors reached Mr. Stands, that MIR. Brock, the
| father-in-law of Mr. Deneale, laid claim to the
negroes, and to the cattle, and that he (Deneale)
had sold his home farm to Mr.. Brock. Mr.
Stands became uneasy, but Mr.. Deneale prom.
ised that all should be right, stating, as Stands
alleges, that the negroes were not his but Brooks,
and that he Cd was only entitled to the profits
on the cattle over aud above the purchase mon
ey. Subsequently Mr.. .Deneale did execute
second deed of trust to Mr.. B. F. Niche,
conveying all his property, and providing first
for the security of his endOrsers, Bryan and
Stands, and for the payment Of the debts
due to the Bank at Staunton. This second
deed, however, did not embrace the negroes,
but 80 of the cattle and the profits on the re-
maiuder. Mr.. Stands recorded the first deed
on the 2Srd of December; Mr.. Niche, the
second on the same day. The property en-
braced in the first deed is in the hands of
the Sheriff of Rockingham, claimed. by both
Mr.. Trout, the Trustee, and Mr.. Brock.
These are the allegations against Mr. Deneale.
The counsel for the defence contend, in the first
place, that there wss no false pretence; that Mr..
Deneale was the legal owner both of the negroes
and the cattle, and therefore had the right to con-
vey them in the deed of trust. They claim that
the true facts of the case ARE briefly theSe:-
That Mr.. Brock had advanced the money to buy
the negroes, with the understanding that they
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