The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1890-12-25

ance OF $151.19. H. A. Walker and Ma
Kinney testified regarding Howard
transactions with the National Vale,
Bank. He had in that bank balance O
$96.34 on Dec. 18th, not counting fou
notes from Roanoke and Salem aggre
eating $685. 08, left by him about Dec. 12tf
to be passed upon by the directors fol
discounting. Though the notes had no
yet been accepted December 18th, How
ards check for $500 would have beer
paid when he presented it, as he did
if the difficulty with the exchange
directors had not taken place at the
bank counter. In response to Howard's
solicitation, and in the absence of sus
| piciOn, the amount of the notes had
been entered in his pass book, by show
ing which he could have drawn the
money.
w. H. Hyer testified that furniture tc
the value OF $3.50 was paid for by How
ard with M. NJ. Robertson's $50 check
and G. r. Caldwell's note for $35. the
change being given in cash. Hyer re-
piled that he would give $50 or $50 for
the furniture, when asked for its value
Capt P. E. Wilson testified that about
Dec. 10 his firm agreed to buy the ex-
change furniture from Howard for $50
in response to his offer, and to post quota
tions on the exchange board to be kept in
their Office. The understanding was that
Howard was to be out of town most of
the time, and that what little work Will
son & Co. did for the exchange was to be
without charge. Signs bearing the words
Virginia Stock Excha nge were to be
placed outside the Office, and Wilson &
Co. were expecting removal of the fur
niture to their office at any time.
Henry WITT testified that the bill of
his firm amounted to $24.25 for carpet,
ETC., sold Howard Sept. 5th for the ex-
change. When the witness asked some
time afterwards for the money, Howard
replied that he had no money but ex-
pected to sell membership to Mr.
Lightner. On Dec. II statement was
received by Witt & Co. from Howard
charging $50 for a membership, credit
ing the $24.25. and stating that dis
count of ten per cent. would be allowed
for cash payment of the balance. Mr.
Lightner had said he had signed some.
thing, but that he was no member
J. F. Wheelwright and E. P. Botsford,
leading business men of Shenandoah,
Page county, testified that about Oct
~ they had paid Howard 800 each for
two individual membership certificates,
on being promised by him that they
should receive daily stock quotations by
telegraph, to be followed by letters Civ
ing the actual sales made at the office in
Staunton. They bought readily, con-
sidering the membership valuable, and
not having time to investigate tile mat
ter they relied on the judgment of long
list of members shown by Howard, of
prominent men whose signatures they
knew. But they received only two or
three kilograms or mail reports from
Howard. They understood from How
ard that no memberships had been sold
for less than 800.
Julius Prufer testified that for a per-
sonal bill of 1926 against Howard and
an exchange bill of 1925 he wrote by
Towards request one receipt for the two
combined, and following Howard's die
tation he receipted it Tin full of all de-
mands upon stock exchange" After it
was thus signed, Howard produced the
separate original bills sent him some time
before, and Prufer. noticing popularity
in the proceeding, receipted each bill as
paid with check of Ernest Howard. y
The words for stock exchange" written
with pencil on the separate receipted
bill for the 1925 personal account, were
not written there by Prufer, and he
knew nothing of them -
The testimony of Ernest Howard him
self occupied most of Tuesday afternoon.
He answered in a low tone of voice, with
much hesitatinn-and with esl,@>~aut eva
sion. 1t cannot be said that his testiino
ny had any positive effect toward con
vincing disinterested hearers that he had
given the exchange fair and honest ad-
ministration. His counsel laid stress
upon the neglect of the directors to at
tend meetings and to interest themselves
in the exchange, upon his necessary
travelling expenses in establishing branch
offices, upon his ownership of $40 of the
$50 shares, upon the sickness of his wife
December Is, and upon the door break
ing by the directors. The Common
wealth's attorneys answered by laying
stress upon the facts that meetings
were not called, that the directors were
not expected to give much time to the
exchange. that full account should be
given OF money received for the many
memberships sold, that holders of one
share had rights, and that Howard said
nothing about the sickness of his wife nor
gave them any satisfaction in their a ues-
tions and demands.
Towards statement of money transac
lions up to and including Oct. z, sup-
ported by bank books and receipts,
showed that on Oct. Y the exchange owed
him $10.96. His counsel were very tena-
cious in eontending that the examine
ton should not be carried beyond Oct. I,
which date included the time involved
by the checks that he was accused Of
stealing. They were partially successful
in their efforts to establish that limit.
But later on it was proved that Howard
resolved $50 cheek from Geo, G. Wal
tiers about p. IN. Oct. Z and had it cash
ed about 8 the same day and also that
Howard had left out OF his report to Oct
this Walters $50 and the 1925 paid
Stoneburner & Prufer in the one check
for $3.50. Howard said he wrote the
words "for stock exchange" across the
S9.25 bill because $3.50 of it was for en-
yelopes used in stock exchange business
The statement, Howard said, was made
principally from memory. Owning so
large proportion of the stock, he kept
no accounts, but relied on certificate
stubs, bank pass books, and receipts
When asked how many memberships
had been sold, he said it would be safe to
say twenty-five, at an average price Of
Slbn each. Snch memoranda as 'tpaid hi
fuH'' on the stubs of about sixty used
certificate blanks could not be construed
he said, to show that in every case the
act Indicated by the memoranda had
actually come to pass in the transaction.
He had made various prices, terms and