Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1911-01-14
SHIT AGAINST TRUST COMPANY

eat. Auditor Donahoe Files Petition
in the Corporation Court for the Ap-
Monument Of Other or Additional Re-
ceiyers for the Virginia Safe Deposit
and Trust CorporatIon-suit for Re-
coyery of sls,3O9.53 Belonging to
state and Deposited by City Treas
urer Thomas w. R0bins0n-President
Rixey and Directors Held Jointly Re-
sponsible.
Mr.. Samuel G. Brent, attorney for
Mr.. S. r. Donahoe, State Auditor, has
filed q petition in the Corporation
Court for the appointment of other
or additional receivers for the Virginia
Safe Deposit and Trust Corporation,
also instituting suit for the recovery
OF SIS, 3O9,53 belonging to the state
OF Virginia and which had been de-
posted with the defendant corporation
by Mr. Thomas w. Robinson, CITY
treasurer.
The petition sets forth that the Cor
noration Commission on the oth OF
December. 1910, advised the corpora
zion and directors that the securities
had been impaired and notified them
that unless the same were made good
within twenty days the commission
would take action and place the in
stitution in the hands Of receivers.
That the commissioner of insurance
had notified G. j. Rixey that the de-
velopments showed that the corporation
was not solvent and directed him to
issue no new bonds or renew others.
That G. j. Rixey and John S. Bar
bour we're unsuccessful in their efforts
to have the order withdrawn.
That the corporation was insolyent a
long time prior to December IS, 1910.
That its condition could have been
known from an examination OF It's
books.
That the law requires the cashier to
make statements every three months,
the directors to. examine the same anu
ascertain their truth.
The law had not been complied with
and everything turned over to c. J.
RiXey.
That said that C. ]. Rixey overdrew
his account $50, 6S3.33 and to secure
and make good the overdraft took
$500 OF the money and property OF
the corporation without giving note or
security; also that he had issued to him
S1O2, 700 worth OF the capital stock OF
the said corporation without paying a
dollar for the same, disposing of this
stock from, time to time until but 81
900 was left in his name.
That six per cent. interest was paid
investors in the corporation which had
made no such profits, which fact was
known or could have been known by
the directors.
That the bank examiner discovered
that Rixcy had wrongfully appropriated
and embezzled $50, 900 Of the money
and property Of the corporation and
communicated this fact to the direc-
tors November %, 1910.
That Rixey, acknowledged to COM
mittee Of the corporation that the entry
crediting him with $50, 900 was in bis
own writing.
The petition prays that Rixey
and the board Of directors Of the de-
fendant corporation be made parties to
the suit and should the assets prove in
adequate TO meet the states claim, that
they be made to pay the deficiency.
AS stated yesterday a special grand
jury has been ordered by Judge Barley
for Wednesday next when the matter
OF the closing OF the doors OF the Vir-
ginia Safe Deposit and Trust Corpora
ton will be invested This morning
large number of subpoenas were issued,
summoning various persons to appear
before the grand jury. Among those
summoned were: Jos. Button, commits
sioner of insurance; r. T. Wilson,
clerk corporation commission; c. E.
BarksdaIe, state band examiner; the
directors and clerks of the Virginia Safe
Deposit and Trust Corporation; Fred
erick Coates, bank examiner; City
Treasurer Robinson and others.
Nothing new has been given out to
day by the receivers of the corporation
and probably there will be no new
developments till after the meeting of
the grand jury.