The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1890-12-18
A Charge of Embezzlement.

conduct on the pdrG Oh ErneSU uoWteIut
young man who came to Staunton last
June from Louisiana. Suspicion was
aroused among those associated with
him in the Virginia Stock Exchange.
On a charge of having embezzled $50
paid by John f. Landes for membership
in the exchange, young Howard was ar
rested by Policeman Newman and taken
before Mayor Fultz, by whom he was re-
leased on giving bond of 800 to insure
his appearance at 4 O'Clock the same day
for examination. But to make surer
work in what they deemed just prose-
cution, the directors of the stock ex-
change had him arrested second time
on a charge of having embezzled $50 paid
by VIM. J. Perry for membership i'll the
exchange This second arrest was made
by Policeman Fretwell, who kept the
prisoner in charge until his appearance
before the Mayor at o'clock.
A partial examination took place, the
result of which was that further exam
ination of the case was postponed to
next Saturday at the court house,
bail being given in the amount OF ST.
000 with defendants cOunsela as suretles.
The chief cause of the postpOnement
was the inability of the prosecution to
produce the stock exchange charter,
which had been sent to the secretary of
state to be recorded. 1t had been pre-
viously recorded in the office of the city
clerk of Staunton, and it is expected to
arrive from Richmond in time for next
Saturdays examination. A. G. Gordon
appeared in his official capacity as COM
monwealth's attorney, and W. E. Craig
and Capt. James Bumgardner appeared
as counsel for the defense. The account
of the case given by the prosecution is
about as follows.
Directors and members of the ex-
change to the number of about dozen
gentlemen gathered at the office of the
exchange, over DR.. Wayt & Bros drug
store, to attend an exchange meeting
called by the president, Mr.. Howard
Finding the office door locked, and no
tice upon it stating that the meeting had
been postponed to January 18th, those
present in the hall began to realize the
force of advice given some days before
by one of their number, to the effect
dissolved. One or two attorneys that
were present, or who happened to pass
i by. stated that the directors had right
to demand and to obtain an explanation
! of the presidents conduct, no regular
meeting of the directors having been
held since the organization of the ex-
change. On discovering in some way
that a person was in the locked office,
Mason Miller, vice president and direct
or, looked through the transom above
the door and saw Howard sitting at the
table with papers, books, etc., partially
packed up as if he were preparing to
move away. At first he gave no answer
to Mr. Milier's demands for an explana-
ton, but on seeing the latter looking di-
rectly at him from the transom, he calm
Iy replied that he would explain when
he was ready but not then, or something
to that effect. After Howard had passed
out of the room, locking the door, the
party outside broke open the door to
examine the books, etc. themselves, and
the warrant for the first arrest mention
ed WAS sworn out.
From a hasty examination of books
and papers in the room, made by direct
ors or others in the party, it appeared
that Howard had received for the COM
pany about $4,000, and that he had de-
posits, all to his own personal account.
in the two banks of Staunton and in
three other banks-at Buena Vista, Rich
mond and Luray. The directors imme-
diately attached his deposits in the Ma
tional Valley Bank. His deposit in the
Augusta National Bank had already
| been withdrawn.
The Virginia Stock Exchange was or
ganized several months ago through the
efforts of Howard with nominal CAPT
tai OF 5000, in shares of 800 each.-
He owns ninetenths of the stock and
has had the exchange completely in his
own hands. The other members of the
company have known very little about
it. Most or all of those in Staunton hold
bat one share each. In some cases How
ard issued the one share simply to gain
the name and influence of the holder,
with no payments from the latter. In
other cases, it seems, the one share was
! issued for $50, $50 or irregular sums less
than the 500 par value. 1t seems also
that Howard has been disposing of the
exchange stock in various ways in diff
ferent parts of Virginia. Open opposi-
ton toward him from the directors and
i members was started last week by his
peremptorily demanding the resignation
OF Treasurer w. J. Perry, Secretary c..
Il. Caldwell and Director B. B. Eskridge.
in order, he said, that he might elect di
rectors from other cities. w. J. Perry,
treasurer has never had one dollar of
The exchange funds to take care of. The
Office broken open was furnished at the
/ expense of the exchange, and was con.
sidered all along the public office of the
company. Howard had packed up his
1 property at the Mozart House, and had
told his clerk that he intended to move
the exchange office to Richmond, but
had takea. rooms at the Virginia Hotel.
The three paragraphs above form a
synopsis of a complete account of the
case given by the dozen or more gentle
men of Staunton interested in the pros
ecution. By the defense the matter is
of course looked at in somewhat differ
ent light Mr.. Howard's conduct, in the
opinion of the defense, is justified or ex-
tenuated by his ownership of mines
tenths of the stock and the sickness of
his wife Oh the day set for the meeting.
The legality of the exchange charter
was also contested. Mr.. Howard has insti-
tuted suit against W. j. Perry and J. F.
Landes for $4,000 damages in each cage,
for malicious arrest and false imprison.
ment. Forcible entrance into his pri-
vate room may be taken as basis for
further action: It is said that other suits
are likely to be instituted soon.
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