Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-01-13
PROBE TO Be USED
Grand Jury Will Investigate
Trust Company Closing.
SECOND FAILURE A SHOCK
Building and Loan Association Had
Many Depositors.
IMPOSSIBLE TO GET NEWS
Will Be Some Time Before Re-
ceivers Are Able to Furnish
a Statement.
IMPOSSIBLE TO GET NEWS
Special Correspondence of The star.

Special Correspondence Of The Star.
ALEXANDRIA, Va, January Is. 1911.
The affairs of the Virginia Safe De.
post and Trust Corporation, which in
stitution went into the hands Of receivers
December % last upon application Of the
members of the board of directors OF
that institution, will be probed by spe-
cial grand jury in the corporation court
for this city. beginning at 10 O'Clock
a jury was made to Judge Barley by
Commonwealth Attorney samuel g
Brent this morning and the judge grant
ed his request. q
A jury for that purpose will be sum-
moned within the next few days. The
investigation. it is expecte-. will last
several days Among those who will De
summoned to testify before the jury will
be the officers and directors Of the trust
company, together with the receivers and
possibly others. The searchlight of pub
licity will then be thrown on the entire
affairs Of the concern.
Consulted State oficials.
Mr.. Brent decided upon this action yes
terday following a visit to Richmond a
few days ago, where he had interviews
with . number Of state officers on the
matter. He decided yesterday that he
would take action against the concern.
although he did not announce until this
morning that he contemplated asking for
q special grand jury to investigate its at
fairs.
The Virginia Safe Deposit and Trust
Corporation was, December % last, placed
in the hands Of John S. Barbour of Fair
fax and Judge J. X. NJ. Norton Of this
city as receivers. A few days thereafter
they secured the services Of Frederick
Coates, jr., a national bank examiner,
and they, together with Mr.. Coates, are
now engaged IN the work Of going over
the affairs Of the bank. Up to the pres
ent time, however, they have not given
out statement to the public concerning
the affairs Of the company. There il
much speculation among the depositors
as to whether or not they will receive all
of their money. 1t has been asserted
thing. although the depositors have not
yet any definite assurance that such will
be the case.
This concern operated. In addition to iti
main ONCE here, a chain Of eight banks
scattered through the state. and the clos
the depositors' wherever they were 10
Gated.
Loan Associations Troubles.
ouglas Stuart, one of the receivers ap.
pointed for the Mercantile Railway Build
ing and Loan Association. which associa-
ton was placed In the hands of him and
Lewis HooR as receivers in the circuit
court for this city yesterday afternoon,
upon the application Of the board of d.
rectors Of that institution. said this morn
ing that II would be fully ten days before
the receivers will have anything to give
out.
The work of going over the affairs Of
the concern was begun this morning by
the receivers and will be vigorously push
ed to completion. Until this report Is
made nothing can be told as to the out
come.
An ofIlcer CT the concern said yesterday
afternoon that he was Of the opinion
that the depositors would not lose any
thing by the closing.
jolt yesterday afternoon when the an
Of the closing Of this concern
was made public. Hundreds of small de-
positors are affected. Many of the de-
posters called this morning on the re-
ceivers with hope of securing some in
formation as to the closing. 1t could not,
however, be given at this time.
Sequel to Trust Failure.
This failure is really 4 sequel to the
failure OF the trust company, according
to . statement given out yesterday after
noon by Gardner l.. Boothe. attorney for
the Mercantile concern.
Application for the appointment Of re-
ceivers was made yesterday afternoon in
the circuit court for this city. Judge j. b.
T. Thornton presiding. The proceedings
were signed by the following officers OF
that institution:
F. F.. Marbury, Lewis Hoon. John p.
Robinson. Laurence Stabler directors OF
the association. through Gardner l.
Boothe, attorney.
The closing OF this institution in no
manner affected any Of the other finan-
cial institutions in the city. Inquiry at
the various banks today developed that
there had been no run on any Of them.
II was predicted last night that the clos
ing Of this institution. being the second
In two weeks, might cause some uneasi-
ness amcng some Of the small depositors.
Such. however. was not the case. The re-
ceivsrs Of the association qualified by CIV
ing bond In the sum Of &2oOO.
The statement given to the press by
Mr. Booth concerning the building asso-
citation follows:
Building and Loan Association In the
hands Of receivers IL, to q certain extent,
q SEQUEL to the appointment of receivers
for the Virginia Safe Deposit and Trust
Corporation.
Discounted It's Notes.
1.-The building association discounted
number of notss of the Virginia Safe De.
post and Trus. Corporation, in the course
of its business, and some Of these are
now falling due. The holders OF these
notes are demanding payment In full
and the board OF directors of the building
association found that 1t would be impos.
sible to pay them at this time without
sacrificing its resources.
I'm addition to this fact, a number OF
stockholders have given notice Of with.
drawal and II these Withdrawals were
paid, the directors felt that some OF the
stockholders might receive preference.
I'm order. therefore, that the obliga
tons OF the association might be met
that all the stockholders might be placed
on an equality In sharing in the assets
OF the association. the directors decided
to ask for the appointment OF receivers ir
order that the assets might be realized
on a. soon as possible and disbursed In
accordance with the orders Of the court
The association was chartered In $50:
and had hundreds Of small depositors
The officers are well known bushes,