Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1898-03-19
The INSIDE FACTS
10 the Embazzlement Case Of State VS..
+. W. Reynolds,

AS Ihey Appear From Afdavlts
Filed Thursday and Yesterday, in
the Circuit Court, by the Defend
ant and Those Prosecuting Him
"A Peculiar Omission in the Indict-
ment Against Reynolds : Elk
tracts from the Official Papers in
the Case.
Inc pending case of State vs. f. w.
reynolds, indicted by the last grand
jury OF the Criminal Court of this
county, for embezzling the books,
papers and real estate securities, deeds
OF trust, etc, and other property, val
ued at an aggregate of thirty thou
sand dollars, the property OF the
Guarantee Loan and Trust Company
is exciting much interest.
Reynolds, the Secretary of the Com
pany, was arrested six weeks ago. on
the charge of ENLIGHTENMENT and his
bond was fixed at $1,000 Later in the
same night, at about midnight, he was
re-arrested, and his bond was fixed at
$4,000. Defendant was Immediately
taken before Judge Hervey on an APP
plication for a writ of habeas corpus,
and his bond was then reduced to
$4,000. In due time he was indicted.
Counsel for defense, Howard and
Handlan, demurrer to the indictment,
and the Court announced that it was
ready to sustain the demurrer. This
would, however, involve the defend
ants remaining in Jail until new
grand jury convened, which would be
in the nature of an extreme hardship,
and being anxious for a trial of the
case upon its merits, counsel for the
defense yesterday withdrew the de-
murrer, bond was further reduced 10
$1,000, and the case was set down for
trial April !, on an indictment which
the Court was ready to annul.
On the motion to reduce the bond or
to release defendant on his own recog-
nizance. the latter being overruled, de-
Tense filed an affidavit by the defend
ant, which was replied to by Fl. c. Og-
den, editor and manager of the News,
and also by Dr. D. H. Taylor and Pearl
Reymer. The last named affidavit re-
lates merely to unimportant collateral
matters. but the affidavit of defendant
is full of meat, and the replies thereto
by Ogden and Taylor are interesting.
The substance of these several docu-
ments are here given:
In his affidavit, Nh Reynolds says:
That the Guarantee Loan and Trust
Company is a corporation organized, eH-
listing and doing business under ana ~
virtue Of the laws Of West Virginia that
laF
ization il has been engaged in doing Ce-
posting and loan business, accepting ana
receiving money placed III its care ana ~
suing 10 the depositors therefor ShareS ~
stock which carry with them the prom
Use to pay a percentage Of the earnings
of the Company as compensatory LOT
said deposits. That the money so dep0S-
tied was by said Guarantee Loan and
Trust Company loaned TO applicants
therefor and approved real estate secur-
itv taken by il to secure the repayment
Of such loan; that the stock of said COM
panv consisted of permanent stock ana
also of four other kinds OF STOCK; tnat
the permanent stock was an indemnity
against the loss of the principal sum
which any member of the company
might pay to it on account OF any oiht.
kind of stock which such member might
hold therein. and was also guarantee
for the faithful performance OF all the
obligations of the company. and GOULD hot
be withdrawn until all such onligations
have been discharged: that the holders OF
the pernanent stock were II. G. Ogden
j. r. Sommerville, w r. Taylor. D. IT,
Taylor and your affiant, OF Wheeling W;
j. T. Douglass, Of Welstburg, ". Va
that all these persons were the directors
of said Guarantee Loan and trust COM
pany. and that p + Taylor t was f Prg9t-
was Secretary and General Manager
thereof, and j. B. Sommerville was Cen
eral Counsel thereof: that prior TO Mafch
A. D. 1887. the business had been conduct
ed flr the city of Wheeling. State OF West
Virginia but at that time the manage
ment of the Guarantee Loan ana trust
Company found il necessary for the pro
motion of its business TO estaoilsh OIL
fees elsewhere, and with that purpose N
view an office was opened III the city OF
Washington. ID. g.. September !, 1871, ahd
Also one in the city OF Baltimore. and
State of Maryland. January !. 1898 that
the duties of the General Manager were
TO employ and contract with agents aIlu
exercise the general supervision over
agencies and local boards, and perform
such other duties as the Board of ol-
rectors may deem advisable; tnat the du-
ties of the secretary We're to keep ac-
counts with all members and employees,
and to have charge of the books ana seal
Of the corporation: that the permanent
stock owned by the persons hefelHpeloIt
mentioned amounted to $4,000, and that
each owned - shares. worth SlVO eacn'
that the aggregate sum Of $4,000, which
included all already mentoneG ana or rdy,
subscribers to permanent stock. was rep
resented to the public and to all persons
dealing with the Guarantee Loan and
Trust Company as having been tully pa!u
nm when i'm fact it was not paid up IN
full but that notes We're given by Inc
said owners of the said permanent stock
respectively for the sum Or SzZSV eacl;
ana that $3.50 cash, except IN the case OF
II c Ogden who has not given ms note
for said stock but promised to DO so, and
executing also in the case OF J. =. SOM
merVille. who did not pay $50 casn to
the said Guarantee Loan and trust COM
nanv. but he gave his note for the sad
sum of 81. go, and as to the balance con-
tributed legal services therefor, and which
said stock of J. Is. Sommerviiie has now
however been hypothecated TO the Dollar
Savings Bank of this city for the sum OF
- nG0. that the said Guarantee Loan and
Trust Company is now and has been for
some time insolVent, the assets OF sald
company being about $4,000 and the ma
hilities thereof being about $4,000, thar
the said Board Of Directors. realizing that
the said Guarantee Loan and Trust Com
pany was failing authorized thiss afhant
as Secretary and General Manager to so
ia the East to establish the offices as
aforesaid and to negotiate any business
in behalf Of the company of a financial
nature upon the strength Of any securities
or assets which it might have ana after
wards authorized this said atfiant 10
make A complete sale of the company. ~
pursuance Of the authority vested in this
affiant. the books, papers and part Of the
securities of said company, together WITH
tho notes of The Directors aforesaid, We're
taken by this affiant to the city of Wash
ington. in the District of Columbia. TO IFS
office there established. and deposited by
this afiant in the safe used for That pur-
nose. and another part of the securities
Of the Guarantee Loan and Trust Com
MANY by virtue of the power vested IN
This affiant by resolution of the Board of
Directors of the said Guarantee Loan ana
Trust Company. were taken to the town
Of Frederick, in the State of Maryland,
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