The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1890-12-25
THE HOWARD CASE.
A Long Preliminary Examination Before
Mayor Fultz.

MAYOR
In response to a petition from direc-
tors of the Virginia Stock Exchange,
Richard s. Ker was appointed receiver
of that concern by Judge Grattan last
week. The preliminary examination
before Mayor Fultz drew crowd of peo-
pie to the Council Chamber last Satur-
day morning and afternoon, but a
smaller attendance at the Courthouse
during Tuesday and yesterday. There
were present through each session of the
examination. Capt. J. Bumgardner and
W. E. Craig, counsel for Howard; Com
monwealth's Attorney A. G. Gordon and
and H. A. Shepherd, the stenographer.
The testimony of John F. Landes, the
director by whom the first warrant was
sworn out for Towards arrest, occupied
most ofSaturday mornings session, which
lasted from 10 to o'clock. According to
his testimony he paid Howard $50 by
check Sept. 30th for membership certifi-
cate signed by the latter as president,
and he holds one share of stock issued to
him free by Howard The Staunton Of
flee of the exchange, which the charter
provides shall be the chief Office, was
marked as such by card signs on the
door and on the steps, and by large
bulletin board inside for stock quota
tions. He was never notified to attend
any meeting of directors or stockholders,
after meeting about Sept. Is at which
he was made director. He learned of the
Dec Is meeting from another stockhold-
err, and did not see the Argus notice till
afterwards The door notice of post
ponement was read to the court, signed
by Howard as president. The knocking
at thedoor and the talking over the tran
som was told substantially the same as
published last week. A few minutes af
ter that scene Howard talked with
Landes and M. M. Robertson on the
street, but would give no explanation of
his refusal to open the door and to give
an account of the business. One box in
the room was packed full of books and
papers and another was nearly full. The
drawers of the desk were empty, and a
roll of papers apparently valuable lay on
the desk A revolver with five loads lay
there also.
Mason Miller's testimony, taken with
that of Others, showed that no regular
meeting of stockholders or directors was
held after the meeting for organization,
held about September 18th. The ten
stockholders besides Howard, all of
whom live in Staunton, accepted their
stock, one share in each case issued free,
in order that Howard might organize
the exchange, and in response to solicit
tation from him. In some or most cases
it was stated at the time of signing the
subscription list that the signer could
not spare time to give regular attention
to the exchange. Howard agreed to at
tend to the business. The stockholders
expected no profit unless the sale of
memberships would in time provide
money for paying up the $25, 900 capital
stock. Holders of membership certifi-
Gates could derive benefit from the tele-
graphic stock quotations to be received
daily at noon.
In fact, however. as shown by the tes-
timony of W. J. Perry and others, no
practical use was made of the exchange
privileges. 1t seems that after purchas-
ing memberships the members found
that the license tax for stock brokers is
too high, about $3.50, and no buying and
selling was done in the exchange office
No witness that testified had been in the
Office more than three or four times. The
opinion of one witness, that all the
stockholders had made asses of them
selves by entering into Towards scheme
at first, was apparently concurred in by
all the prosecution.
The direct question as to who broke
in the Office door was overruled. The
prosecution knew nothing. except hear
s;ty' Of -S'-~-dalinate condition of How>
ards wife, and of her removal to New
Orleans, and knew nothing at all of his
intention to remove the exchange to the
office of P. E. Wilson & Co. There was
animation and determination in the de-
mands made upon Howard at the office
door and after he came out, and po-
liceman was there as a bystander, but
no witness knows that policeman was
summoned, that Towards person was
threatened, or that noisy intimidation
was resorted to. Some one shouted to a
policeman to stop Howard, but the po-
ticeman replied that he had no warrant.
Towards answer to all the demands was
simply that he was busy and would ex-
plain on January 18th or when it suited
him. The moving preparations, as seen
in the condition of the Office, taken with
Towards refusal to explain, aroused the
suspicious of dishonesty. The door no.
tice did not fix the place of the post
poned meeting.
On Dec. Is letter signed by several or
all of the directors whose designations
had been asked for, was sent to Howard,
in which the former declined to resign
until report Of the exchange business
could be given at meeting. No bylaws
were made, and there was no record
known except the minutes of the first
and only meeting, held about Sept. 18th.
W. j. Perry received about two hours
notice to attend three meetings of a COM
mittee of the exchange, but at the time
of the first he was out of town, the
second was not held for lack of quorum,
and the third he attended He was
never notified after Sept Is to attend a
meeting of stockholders or directors.
The John F. Landes $50 check, made
payable to W. j. Perry, Treasurer, was
Endorsed by Perry to Howard specially,
as Perry was compelled to indorse it thus
to free himself from liability. When How
ard brought this check to Perry for in
dorsement the former said he desired to
use it in paying for exchange office fur
niture from Wilkes & Co. and for carpert
from Witt, Lightner & Co. In answer
to Perry's complaint that if he could not
handle the money there was no use of
his being treasurer, Howard said that
the expenses of furnishing the room. etc,
had taken all the money received. How
ard distinctly told Perry at the Sept. Is
meeting that he (Howard) was to receive
no salary for his services during the first
year. Perry say no bills and knew of no
meeting OF the auditing committee.
About ten persons were elected men,
hers at the Sept. Is meeting, but none