Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1911-03-22
$50 ,Ni III
Grand total
S59T,qO4 o.


Even il the aboYe sim represented
all Mr., Rixey's personal transactions.
as it does not, for items only coma to
light from time to time. It by no
means represents the real loss to the
Trust Company. As Mr., Risey had
nearly half million dollars Of its AS.
sets in his private enterprises, which is
practically total loss, the company had
very little money left for its legitimate
business, and Mr.. Riyey discounted
great many Of its loans, partly for
the necessities OF the company, bit
also in part to get money, which he
would then draw ont for his own pir,
poses. He treated the bank stock men
toned in his assignment, as the
property Of the Trust Company,
borrowing large Sims on it, as collateral
in the name Of the Trust Company
had the LOANS placed to the credit Of
the Trust Company; and, in most
cases, would Immediately piltthe loans
to his personal credit, at the Trust
Company. He made no distinction 10
such transactions between stock stand
ing in his name and securities that lin
doubtedly belonged to the Tiust Com
pany. Sometimes he did not even go
through the form of borrowing in the
name Of the Trust Company, but would
borrow in his own name, and use Sc
curities of the Trust Company ms
collateral to secure his personal note.
We have not been able to make an
exhaustive examination into the matter
OF stock subscriptions, and as this
matter is covered in the decree OF
reference to 4 special commissioner, We
only refer to il in general way, so that
those interested may understand it, az
far as We are able at this time to state,
without going into detail.
All stock notes seem TO have been
paid in full, except tie notes OF Mr..
Rixey, above referred to. As stated,
his notes amounted. principal and in.
terest, to SS7 $4,000, and the books
show no payment that VIC can find,
though the day book has been gone
over. item by item, every day since the
Trust Company started business.
With ali the above transactions he
fore him and all Of them his own crea
tons. with full knowledge that the
Trust Cnmpany's funds and assets had
been used lly him in his personal mat
1ers; With full knowledge that it had
been absolutely hankrnpted by him on
March Is, 1910, Mr.. Rixey reported
to the stockholders in meeting assem-
bled that '1ha the past year has been
the most profitable and successful OF
any since the establishment Of the in.
stitution. the usual dividends of six per
cent. having been paid on the capital
stock, and in addition surplus fund
OF s700,00O having been laid aside
from the earnings.
And on August 10Th, 1910, Mr..
Ri1ey stated to the directors at the
meeting of the board, held that day,
that Whereas the profits OF the last
six months we're sufficient to pay the
usual semi-annual dividend 0! three
per cent and apply two thousand dol
lars to the surplus fund, he suggested
that one thousand dollars only he ap-
piled to this fund -
In the light OF the above transsc-
tons, every statement Mr.. Rizey made
TO the Corporation Com mission, under
oath, OF the affairs OF the Trust Com
pany, vas in several important aud es-
sential particulars incorrect, to say the
least,
While the receivers do not feel that
the; shoald attempt 70 make report
"a detail as t. asserts and liabilities.
as that IS TO &c reported Upon e: tie
special commissioner, 70 Tho.a this /
ca;iss has bsei; referred, they think !
that ths= should cali attention 70 ito
facts II connection nth tha report OF
Mr.. Coates, the expert examiner, VIZ:
First: Mr. Coates reports az assets,
note5 amounting 70 TIE sim OF s2l9,
352. %. We find at least $4,000 Of
these notes worthless
Second: Nj. Coates reports ind;7id- |
usl deposits subject 10 check, as
amounting to s36O,771.05, To this
must be added o7e1drafts amounting |