The Washington herald., 1911-01-20
HOWARD W. SMITH IS NAMED
Young Lawyer S1cceeds John s. Bar
bOur, NOnresident of Alexandrfa.
Attorney Moncure, n Counsel for
DepositOrs, Argues for Appoint
ment Of CO-receivers.

Late in the afternoon Judge Barley re
moved John S. Barbour, one of the re-
ceivers. and appointed in his place How
ward w. Smith, a young lawyer and
member of the city council Mr.. Smith
will probably assume his duties to-day,
after giving bond. A decree prepared by
Attorneys Moncure, Wampler, and Cloth,
moving for a cO-recever. will be signed
by Judge Barley to-day, This makes
Judge J. X. NJ. Norton and Mr.. Smith
sole receivers.
No Reflection Intended.
In removing MIR. Barbour as receiver.
Judge Barley said he intended no re-
Election whatever upon HIM, but as he is
not resident of Alexandria he could not
give his attention to affairs of the cor
poration.
Judge Barley also declared tho deposf-
tors should have a representative as one
of the receivers. He directed the at
torneys to prepare a decree appointing
another receiver. which he will sign this
morning. Attorney John Y. Jeffries,
counsel for c. Jones Rixey, president of
the corporation, asked the court not to
sign the decree until to-day. in order that
he may consult his client.
Opening arguments for the appointment
Vi q were UN SttOIHty
z. c. L. MonCure, who set forth that
his firm represented deposits aggregating
$4,000. Mr.. MoncUre declared that in
terests may clash and that depositors are
getting worried.
Maj. Mcintyre. of Warrenton. Va. IA
vored the appointment of a co-receiver or
new receivers. He presented list OF
seventy depositorS in the Remington
branch of the Institution, whom he rep
reSentS.
Oppose Other Receivers.
Attorneys Bernard Miller, r. L. Grims-
ley. and c. d. Waite. all of Culpeper. op-
posed the appointment of additional re-
ceivers. Attorney John l. Jeffries, OF
Norfolk, 4 representative of Mr. Rixey.
said he could say with authority that IL
other interests render il necessary he
would not object to the appointment of
a co-receEer.
a history of conditions leading up to
the appointment of receivers was given
by Commonwealth Attorney Samuel c.
Brent. who told the court that the con-
Germ only two months ago paid Mr..
Coates S4G0 for examining the books of
this institution.
Judge Norton, one OF the receivers, eN-
planned that he and Receiver Barbou:
had been hampered by the motion pend
ing for the appointment of core
ceiver
In the opinion of Edmund W Hub
bard. OF buckingham. Va. each branch
should have separate receiver and its
affairs cleared up separately.
Left to Corporation.
A personal statement was made TO the
court by John S. Barbour, one of the
receivers, who explained that c. Jones
Rixey was i'll and had left his personal
estate at the disposal of the corporation.
He related a conference with members
OF the State corporation commission.
RiXey. he said. had turned over about
500, 600 worth of securities, and toward
the last, when demands had been made
for large sums on deposit. relatives of
Rixey had pledged between $500 and
5000 to meet such demands. but wanted
the indorseDent of the board of direc-
tors
EXauI1er Coates read a statement he
haG prepared. which says: so far as
his limited investigation of its affairs
will admit that the confused and in
complete resources of the corporation at
the home Cffice in Alexandria. as we'll
as in its eight branches, and the general
chaotic condition and constant interrupt
tions to the receivers, have made it i'm
possible to complete the investigation.
He announced that the resources, ver-
ified in process of verfication. and un-
verified, are placed at $,S6, Sj25; liabili-
ties at sia. I2.4S. Continuing, the report
says: practically all the loans opened
on the discount register as being un-
paid have been accounted for. How
ever. there exists a discrepancy of ap-
proxima tely s3S7.OO0 In the resources is
the item of soOS, ,5l.T. securities turned
To Lo !, ~
Six on Special Jury.
The jury is composed of Capt. William
II. Sweeney, foreman; Z. f. L.awier. d.
R. Stansbury, ]. W. May. C. J. w. Sum-
mers and James Bayne.
In his charge to the grand jury. after
the latter was sworn in, Judge Barley
said
Il deemed it for the best interests Of
all parties interested that the court
should intervene, appoint receivers. and
have the affairs of the institution wound
up under the direction of the court.
THE institution was large one, espe-
cially for small community, and its
burdens bear heavily on many of our
citizens; nor! are they alone, for Its
branches and their operations extended
throughout many counties of our State,
and similarly affected a large number of
its people. So many are the people who
are in one way or another affected by
this failure that it is a public misfor-
tune.
Following the appointment of recev-
ers. many rumOrs were soon af1oat
charging the executive head OF this in
stitution with criminal mismanagement
of the corporations affairs and other Of
fenses contrary to law. AS to the truth
of these statements 1 know nothing: but
at once determined, as soon as praCti-
cable, to have your body investigate fully
this company's affairs and furnish to the
court the result Of their Investigations. to
the end that the court might be advised
and the responsibility for the present
condition of the corporation. if any. fall
where it rightfully belongs"
Witnesses Called.
Immediately after Judge Barley read
his charge the jury retired to its rooms,
where the examination of witnesses was
begun c. c. Barksdale, State bank ex-
aminer. was the first witness called His
examination was not completed until
after o'clock this afternoon. r. T.
Wilson. clerk of the State corporation
commission, was examined and Mr..
Barksdale was recalled. He was fol-
lowed by Joseph Button. commissioner
OF insurance. who was also examined.
Court adjourned at $50 o'clock. Mr..
Barksdalc will again be called before
the jury this morning. He will be fol-
lowed by Francis Coates.
A list Of the seventeen witnesses sum-