The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1917-02-09
BITTER CLASHES
FIGHT AGAINST
CIRCULARS ISSUED BY w: r..
COVERT BASIS OF DE-
TENSE ATTACK.
David McGary Relates Story OF Mine
Stock Purchase-CoVert Alleges
False Representation.

, False Representation.
Circulars published by W. R. Co.
vert. former HOWE Gold Mining Com
pany stock salesman for Smith II.
I3racey, over his printed signature
and that of David McGary and others,
formed the centre Of bitter clash
between Mr.. Covert, state witness,
and Attorney Frank A. O'Brien, OF
counsel for the defense, in the pre-
lininary hearing of Bracey before
Squire r. G. Hobbs yesterday. on a
charge of defrauding David McGary
Of $4,000 in a gold mining stock
deal.
! Through his cross-Questioning OF
w. r. Covert, Attorney O'Brien Is
attempting to establish the point that
MIR. Covert either testified falsely in
a statement made Of direct eXamina'
tion yesterday afternoon when he
said in substance that property adj
vertised by Braccy as worth $2000,CO0
was in reality worth but $4,000 at
! the outside figure, or else statements
in the circulars to the effect that
the North Carolina mining property
Of the company involved should. with
an expenditure of $4,000 or 100000
return 100000 4 year and pay off
the preferred stock in three years.
! Mr.. Covert at first refused to an
swer questions as 10 whether he had
made statements last July read TO him
from the circulars without being d.
rected to do so by the court, citing
the fact that he had been sued in
federal court at Martinsburg for al
legged libel against the mine property.
hnt a little 1afnr oftnr hninr Shnun
the circulars. stated that he did print
the assertions. He qualified his as
sertlons. however. by saying that the
circulars conditioned these state
ments on the expenditure Of 100000
or $4,000 to develop the property
and the probability that this devel-
opment should reveal paying ore in
the mine
| Not a Deposed Minister
Mr.. OBrien opened his cross-eIam-
,, ination Of Mr. Covert late yesterday
! with a line Of examination going into
his past history. One Of these ques-
lions was an inquiry as to whether
or, not Covert had been deposed as a
I minister of the Church of God. The
witness replied positively that he had
|! not been deposed in ~...O and that the
; attempt to depose him As an elder in
! the Church Of God of West Virginia
; North Is pending in the courts. He
came back at Mr. O'Brien with q bit
ted retort about serving as his at
torney, accepting pay for 1T and then
betrayine him. This led to the cross.
examination on the circulars which
was only we'll begun when Squire
Hobbs adjourned the hearing for the
day.
Owing to the fact that Prosecuting
Attorney D.. A. Mckee, who, with As.
SlStant Prosecutor Carl Bachman and
Special Prosecutor ]. 3. Sommerville,
IL conducting the States case, must be
in Criminal court this morning, the
hearing was adjourned until O'clock
this afternoon. A night session may
be held to complete the case to-day.
The preliminary hearing of Bracey
opened before Squire r. G. Hobbs in
the Criminal court room at. 10 o'clock
yesterday. and promises to be the
longest and most bitterly contested
justice court case ever held in Ohio
county.
mcGary a Chief Witness.
David McGary! victim Of the alleged
fraud was the chief witness for tho
State, teStifying that he purchased
20, 900 shares Of preferred stock in the
mine in North Carolina from Bracey
for $4,000, and was given $4,000
shares of common stock as a bonus.
All of this. he said, Bracey agreed 10
buy back at par at the end of year
McGary sprung a surprise when he an
nounced in his testimony that within
the past few days he has filed suit at
Baltimore to recover his money.
McGary became interested in the
gold mining proposition, he said,
through the prospectus setting forth
that the HOWE Gold Mining Company
owned property In Union county,
North Carolina. valued at S2.000,000,
and that the property was free from
liens. In truth. McGary said. he found
that the property is good only for farm
land, and could not bring more than
$4,000 for that.
Alleges False Statements.
w. r. Covert, in his direct testimo.
ment Bracey published in advertising
the mining property he had found.
through visits 10 the mining property
and investigation of court records. to
be false. He asserted in effect that
from his visit and Investigations from
experts. and through official channels,
that the property advertised at $1,000
600 is in reality worth only about $780,
900. For this properly Covert claims
Bracey paid but S23 900. Of which he
paid hut Sill in cash. Covert charged
that the property is mortgaged. that
Il receiver had been asked for. and that
Bracey owes miners approximately
$1,000. Covert said the first lie he
ever caught Rraccy in was in admis-
sion that he had taken $4,000 Of Nc
T. n rp'S mo n off inc +
gage.
The circulars involved on crOss-eX.
animation of Covert, which states
counsel have not yet been permitted
TO examine, are said 10 be circulars
through which Covert last summer at:
tempted TO reorganize stockholders
and devclope the mine on the claim
that If ore was found in the quaint