Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1898-03-19

Keep them at the place or pldceS ueSlS-
mated by the Guarantee Loan and
Trust Company, and where they were
kept by this affiant. Afiiant further
says that the real purpose of this pros
ecution is the result Of a conspiracy
between J. B. Sommerville and HI. G.
Ogden and D. H. Taylor to get posses
sion of the notes given in payment OF
the permanent stock by the said Direc-
tors for the purpose of evading any
liability thereon, and that this affiant
is informed and believes that since he
has been arrested and detained in the
jail of Ohio county, that the said III. c.
Ogden went to Washington, ID. c., and
caused the safe containing the books
and securities of the said Company to
be broken open and among other prop
erty took into his possession the said
notes of the said Directors, and affiant
here points out that although the said
notes were taken by him to Washing
ton, D. G., along with the books, as
sets and other property of said Com
pany, that no charge is here made
against him for the ENLIGHTENMENT of
the said notes. Affiant further says
that the conspiracy between the said
D. H. Tayolr, j. B. Sommerville and
H. c. Ogden is intended to prevent
the said Guarantee Loan and Trust
Company from collecting the amount
due it upon said notes for the perma-
nent stock which would indemnify and
save harmless all depositors of said
Company"
All of which is very interesting.
The affidavit is accompanied by a
copy of an agreement between Lee j.
cambridge and f. G. Mathews, parties
of the first part, and David II. Taylor
and j. B. Sommerville, parties of the
second part, in which the latter agree
to sell to the former their permanent
stock for an amount equal to the ac-
tual amount paid by each of them
THE REPLIES.
Replying to the foregoing affidavit
of defendant, H. G. Ogden says, in sub
stance
That Reynolds never passed any con-
sideration for the permanent stock
claimed to be held by him; that he is
sued the said stock to himself with
out authority and without rendering
any value therefore; that he executed
his own personal note therefore, and
accepted the same himself. as secre-
tary, without the knowledge of the
Board of Directors; that the said Rey-
noldS was then and is now inSolyent,
and that the note never was of any
value whatever" Affiant further says
that it was never found necessary to
establish Offices in the city of Wash
ington or elsewhere; that the only au-
thority referred to by the defendant
~ -tn II ~ Mar
land. the proceeds to be accounted for
by Reynolds that to do this it was
not necessary to open any office in adj
dition to the one in the city Of Wheel
ing: that the Office opened by Reynolds
in Washington was in his own name
and was furnished by him without the
knowledge of the Directors; that Rey-
nolds repeatedly stated to members OF
the Board that it was his private office
and warned them from attempting to
exercise any control over it; that aft
ant lis not now and never has been
exactly informed Of the precise amount
of the permanent stock of the Com
pany subscribed and paid for and If
any false representations, either in
literature or otherwise, were ever at
any time made to the public In regard
to the amount of this particular kind
of stock, they were made by the sald
f. w. Reynolds himself as Secretary
and Manager, without any authority
from the affiant and, so far as affiant
is informed and believes from any
of the members of the Board of Direc-
tors Affiant further says that if the
Guarantee Loan and Trust Company is
insolvent, as is stated by the defendant
in his affidavit, said insolvency is due
to the mismanagement and embezzle-
ment of f. w. Reynolds, late Secretary
and Manager of the Company afore-
said, and that the said F. w. Reynolds
has concealed and continually does
conceal all these facts from the knowl-
edge of the Board of Directors of the
Company; that the said Board of Di-
rectors never had any intimation OF
the insolvency of the Company, and
that the said F. w. Reynolds studious-
ly concealed from them the true condl-
ton of the affairs of the said Company
by making false and misleading en-
tries on his books of accounts
After giving some allegations IN this
regard, athant says the Board OF Direc-
tors as Board" never authorized
Reynolds to make complete sale OF
the Company, but that aftiant did agree
to sell his permanent stock upon rep
reservations by Reynolds that citizens
of Maryland would put $4,000 into
the Company on condition that they
would be matte Directors; and aft
ant further states that his holding of
permanent stock is but small part
of his interest, and that he and other
Directors hold $1,000 of stock, for
which they paid par in cash, and that
at no time was Reynolds authorized
to dispose Of this stock, and that in
addition affiant and other Directors are
personal endorsers on the notes of
the Company to the amount of $1,000
in addition to the $1,000 of stock re-
farred to, and that they have either
paid i'll cash or have endorsed for the
Company ito the amount of over
$4,000, which is over fifty per cent.
of the entire sum that has been paid
into this Company on account of stock
Affiant alleges that Reynolds remov-
ed the books, etc, of the Company
from Wheeling without the knowledge
or consent of the Directors, and six
weeks before any member Of the Board
had authorized Reynolds to sell his
permanent stock. and that such re-
moval was in furtherance of con-
spiracy to secure control Of the Com
pany. 1t is further stated that Ger
tain minutes referred to by Reynolds
have never been approved or signed;
that he had no knowledge of the visit
Of D. H. Taylor to Washington about
the first of December last, and that
the said Taylor had no authority from