Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-01-20
COURT HINTS FRAUD
Judge Threatens Further
Probe by Grand Jury.
ASKS SOME EVIDENCE FIRST
Refers to Mercantile Railway Build
ing and Loan Association.
INVESTIGATION Is CONTINUED
Affairs Of Virgins Safe Deposit and
Trust Corporation Still
Under Fire.
INVESTIGATION Is CONTINUED
ecial Correspondence Of The Star.

Special Correspondence Of The Star.
ALEXANDRIA, Va, January 20. 1911.
III the court can get anything tangible
to work on ] will get this or some other
grand jury to investigate the entire af-
fairs Of the Mercantile Railway Building
and Loan Association
The foregoing statement was made by
Judge L. c. Barley in the corporation
court this morning to @ correspondent for
The Star. The reason for Judge Barley
making such statement was owing to
rumors in circulation alleged to be reia-
tive to the concern which is now In the
hands Of a receiver. The Mercantile
Railway Building ind Loan Association
was placed in the hands Of receivers
January IL last, two weeks following the
failure OF the Virginia Safe Deposit and
Trust Corporation.
Attorney Douglas Stuart is the sole re-
ceiver for the Mercantile Association. and
is now engaged in going over the affairs
of the concern. Absolutely no irregulart-
ties have been discovered by him up 10
the present time regarding the affairs
Of that concern, he says. It - expected.
however, that 1t viii be fully ten days
or two weeks longer before he completes
his work. at which time he Will present
his report to the court.
The grand jury which Is examining into
the affairs OF the Virginia Safe Deposit
and Trust Corporation LIS this afternoon
engaged In going over the books OF that
concern. the jury room presenting the aP
pearance Of a banking concern. The
books were ordered brought before the
Jury by Judge Barley. 1t Is thought that
the Jury may complete Its laborS either
tomorrow afternoon or Monday.
More Witnesses Called.
&. c. Barksdale, state bank examiner,
was called before the jury again this
afternoon. His examination this morning
was brief.
Francis Coates, a bank examiner. whs
is engaged in going over the aRairs OF the
concern for the receivers, was next called.
judge J. X. M. Norton was eubse-
auently called before the jury. after
which Mr.. Coates was again called. 1t IS
not thought any more witnesses Will De
examined this afternoon.
A number Of lawyers heard the final
arguments before the court signed the
decree appointing Howard W. smith as
co-receiver. among them being John L.
Jefrries. representing c. Jones Rixey.
president Of the trust company.
w ucl Tue SVhN0tSN eAAao 'IA'o
Judge Barley read 10 them section 313O OF
statutes of state relative to banks and
banking laws. 1t follows:
III any officer or clerk OF any bank or
Joint stock company make. alter or omit
to make an entry in any account kept In
such bank Or by such company with in
tent In doing so to conceal the true state
of such account or to defraud the SAID
bank or company, or to enable or assist
any person to obtain money to which he
was not entitled, such officer or clerk shall
be confined in the penitentiary not less
than two or more than ten years"
Order Bank Books to Court.
Before the jury retired to its room
juryman asked the court whether It
would be best for the court to visit the
trust company's ONCE for the purpose OF
looking over its books or whether they
should be brought into court. The court
ordered the books brought to. court.
Before court adjourned yesterday after
noon Francis Coates, who is examining
the affairs OF the concern, read report
he had prepared on the finances OF the
corporation as far as he had gone In the
matter. which, Of course, was incomplete.
The Grand Jury yesterday afternoon also
heard the testimony OF r. Wilson. clerk
Of the state corporation commission, and
Joseph Button, commissioner OF insurance