Evening star., 1911-01-19
GRAND Jury PROBES
Takes Up Affairs of Virginia
Trust Corporation. !.
CHARGE OF JUDGE BARLEY
Directs That Responsibility Be Placed
Where It Belongs.
STATE OFFICERS TESTIFY
Bank Examiner Barksdale Is the
First Witness-Apply for
Co-Receiver.
CHARGE OF JUDGE BARLEY
STATE OFFICERS TESTIFY
Special Correspondence Of The Star.

Special Correspondence OF The Star as
ALEXANDRIA, Va. January 10. 1e1l.
The public interest in this matter is
great. and justly so; not alone by those
who may suffer loss or Inconvenience
resulting from tying up OF their funds,
but the great masses OF depositors and
stockholders in financial institutions oil
over the state, as well as the public In
general. are vitality interested in seeing
that the integrity OF all such institutions
is fully maintained and tnat the person
or persons intrusted with their manage
ment are held to a strict accountability
Of their trust"
Judge Barley so declared in his charge
to the grand jury proDlng the affairs Of
the Virginia Safe Deposit and Trust Cor
poration. He also referred to the fact
that many rumOrs are afioat following
the appointment Of receivers tor the cor
poration. and he mad determined TO have
the concerns affairs investigated In order
that the court might be advised and the
responsibility for the present condition
of the company, IL any. fall where it
rightfully belongs. The court quoted al
length the law Of the state on matters OF
the kind under discussion.
A special grand jury consisting of six
well known business men, with Capt. w.
II. Sweeney, superintendent of public
schools, as foreman, shortly after III
o'clock this morning began the work of
investigating the affairs of the corpora
ton.
The institution was December 30 last
placed in the hands Of receivers at the
instance Of the board Of directors.
Barksdale First Witness.
C. c. Barksdale, state bank examiner.
was the first witness called. His ex-
animation had not been completed by
the jury when court adjourned for
lunch at / o'clock this afternoon. Mr.
Barksdale is regarded as u very i'm
portant witness. In fact. he Is one OF
the most important to be called before
| the jury, 1t Is said.
The examination of witnesses Is, as
usual In all grand jury cases. behind
closed doors. 1t is hardly thought that
| the jury will complete its deliberations
seventeen witnesses summoned. among
them other state ofhcials. the recetverss
directors and clerks. OF the corporation.
| The courtroom WAS filled with lawyers
and a number Of spectators. al interested
in hearing Arguments for the appoint
ment Of co-receiver. which began today.
When court convened this morning Judge
Barley announced that he had excused
Capt Herbert Bryant and r. w. Arnold
as jurymen.
Gardner L. Boothe. representing the
board Of directors asked before the jury
was sworn whether or not any OF the
jurymen were depositors In. the bank 1t
was stated that r. 8. Barrett carries
small deposit with the concern. Com
monwealth attorney suggested that as
long as Mr.. Barrett carried deposit he
step aside, as he wanted to be fair and
impartial
would disqualify Mr.. Barrett. he relieved
him from duty. This therefore leaves
the jury composed Of only six members.
who are as follows: James Bayne. &C
merchant; e. E. Lawler, merchant: w.
II. Sweeney, superintendent Of public
schools; c. j. w. Summers, druggist, and
d. r. Stansbury. clerk OF the city coun-
foreman Of the jury by Judge Barley.
Examination Behind Doors.
Judge Barley then read his charge 70
the jury, after which the jury retired to
its rooms. ana the work of examining
witnesses was begun.
A list Of witnesses follows: Joseph But
ton commissioner OF Insurance: c. c.
Barksdale, state bank examiner; r. T.
Wilson, clerk Of state corporation COM
mission; Thomas w. Robinson. city
treasurer; j. X. M. Norton and John s.
Barbour, receivers: Francis Coates. jr..
state bank examiner; John p. Robinson.
Henry Baader, c. c. Leadbeater, Henry
X. Field. George g. French. T. j. Fan
non, directors; George HI. Robinson. H.
D. Kirk. Samuel L. Monroe, Douglas
Boothe. clerks at institution; E. p. Do
herty and ]. A. Eggborn former clerks:
Leopold Ruben depositor.
Arrangements for the appointment OF
Moncure of the firm of Moncure.
Wampler & Cloth Of Alexandria coun-
ty. Mr.. Moncure said his firm repre-
sented clients whose deposits amounted
to about $4,000. He declared that in
terests may clash. hence he asked for the
appointment Of q co-receiver. The ex-
pense Of winding up the concerns affairs.
he said. was heavy. as 1t may be going on
for months. Depositors. he said, were
getting worried without reports.
Maj. McIntire Of Faquier county ar
gued in behalf OF the Remington
branch OF that institution. He pre-
sented to the court q list OF seventy
depositors. He asked that either a CO.
receiver be appointed or new 6nes
named by the court
Defends President Rixey.
Announcement is made by John J. JEFF
fries. legal counsel for c. J. Rixey. presi-
dent OF the corporation, that should legal
proceedings arise against Mr.. Rixey he
will have the assistance OF r. Walton
Moore. well known attorney Of Fairfax.
A statement made by Mr.. Jefrries fol-
lows:
"Mr Rixey has not been well for more
than month. and is now critically iii at
his home in Washington, 800 18th street
northwest. His physicians will not per-
NIT him to see any one, and his cOndi-
ton Is such that he cannot confer with
his counsel nor can matters of business
be brought to his attention at this time.
.sCharges of q very grave and serious
nature have recently been made against
him from certain quarters and widely
circulated through the press. Just what
a the purpose Of those giving out these
reports for publication, or what good can
result from these attacks upon Mr. Rixey,
especially at q time when he Is danger
ously Ill and by reason Of his illness il
temporarily unable to defeud himself, IL
Is dinlcult to conceive.
''As an instance Of the gross injustice
which has been done him, II has been
asserted that he subscribed for $4,000
worth Of the capital stock OF the Virginia
Safe Deposit and Trust Corporation. tor
which Ii II claimed he never paid any
thing and upon which he Is alleged to
have collected dividends. This report was
and Is wholly unfounded.
Paid in Full for Stock.
s.rhe fact is that Mr.. Rixey subscribed
for only e0s.0oO worth Of stso> os this
company. Tor which he ssttlsd IN gan. sn1