The Roanoke times. (Roanoke, Va.) 1897-1977, 1897-10-13
INDICTMENTS AGAINST FIVE.
Grand Jury's Report on the Lynch
burg Traders Bank.

The Lyuchburg News; The grand
jury of the corporation court completed
at Il late hour last night their inyestiga.
ton of the Traders Bank failure Their
deliberations resulted in the Indictment
of Tuomas +. Stearnes, eX-cashier of the
bank; James Hancock, president; b. E.
Hughes, vice president; w. p. Roberts,
one of the directors and n member of the
finance committee, and L. e. Connell,
acting cashier.
There are four indictments against Mr..
Stearnes. He is charged with making
false statements as TO the financial condi-
ton of the bank to the auditor of public
accounts, and of publishing the same in
the Lynchbnrg News. The first indict-
ment against Mr.. Stearnes charges him
with swearing to statement on July IA,
1896, in which the resources loans and
discounts were placed at Sid, 800 10,
when it should have been only S4O2,-
S30.75, and swearing to false statement
on the same date in placing the drafts
and checks on other banks at Sc, 1928. Al,
when the bank had none at all. The
second Indictment charges him with
making u false statement on February
2S, 1876, in placing the liabilities of the
directors individual and firms) Rt $780,
S96 when they should have been $780,
24D.11. The third Indictment charges
statement in giving the amount OF legal
tender notes and national bank notes at
$l4, 2?6, instead of $40, 2G6. The fourth
Indictment charges him with making Il
false statement as to the directors liabl-
tiles on October 6, 1896. The indictments
each charge ldr. Stearness with felonious.
ly, knowingly, and falsely making false
statement MS to the financial condition Of
the bank.
The indictments against Mr.. Stearnes
were the first brought in, having been
decided upon by the grand jury on last
Saturday, but not having been finally
drawn up until yesterday.
AS stated, it was AT late hour last
night when the grand jury completed
their labors and finished what is probably
one of the mosU sensational Investigations
that has ever taken place in the COURTS of
Lynchburg. All day yesterday people CT
the city were awaiting with impatience
the result of the jury's work, and numer-
GUS inquiries were made of those WHO
were supposed 10 know.
Three indictments were returned bv
the grand jury last night against James
Hancock, the president Of the defunct
bank; B. e. Hughes, the vice president;
w. p. Roberts, IL director and a member
of the finance committee, and Il. Emmett
Connel, acting cashier. The Indictments
were all of n similar character and charge
each of the four persons named with al
lowing deposits to be made knowing the
hank to be insolvent. The first inlict-
ment charges that on the 9TH of January,
1897, they received deposit from John
ID. Langborne; .+hess second. that on the
18th of january, 1897, they received y
derosit from Samuel Payne, and the
third that on March, 1897, they received
deposit from +. D. Miller.
The Virginia Investment Company was
organized in 1889. On December s. 1890,
Thomas F. Stearnes was elected secre-
tary. John Hancock was elected presi-
dent in March. 1890. On December 80,
1891, the company was changed to a
bank and was given the name Of Traders
Bank, and Mr.. StearDes was elected cash
Ter, and Mr.. Hancock president. On Jan
uary l, 1897, Mr.. Stearnes resigned his
position OF cashier, and B. T.. Hughes,
the vice president, took charge of the in
stitution. while Il. Emmett Council filled
the position of acting cashier. About the
time of mr.. Stearnes' resignation, and
for several months thereafter, numerous
rumors began to circulate as to the weak
condition of the bank. ard for some time
before the final crash cames the worst
was expected. The Traders Bank made
an assignment on May 18th. 1897, and
the investigation Of the grand jury and
their action is a sequel to the banks
career.