The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-01-25
.CtRT|f|ES CASE TO
STAUNTON GRAND JURY
Corporation Commission Would Have
Both Bond and Share and Guarantee
Bank and Trust Schemes Probed.
PRINCIPALS ON STAND
Both Kennedy and Wiley Testify As
To Plans of Their Organization.
Wiley Discounted Notes, Used Com
mission Only.

mission Only.
without passing upon the question
Of fraud in the activities of the VIZ
ginia Bond and Share Company
which, with it's president, Edward j.
Wiley. of staunton, was before the
State Corporation Commission yester'
day. Chairman Christopher B. Gar
nett, at the conclusion of the nearing
declared that sufficient evidence had
been disclosed TO warrant an investi-
CATION by the grand jury of the city OF
Staunton. of both that company q
organization and that Of the Guaran-
tee Bank and Trust Company, ana
certified all papers In the case to the
Corporation Court of that city. the
hearing took up all day yesterday ana
the tangled operations OF the com
panv were thoroughly aired before
the commission.
Mr.. Wiley. president Of the Share
COMPANY and J. A. Kennedy. OF
stanton, who brought Mr.. Wiley 10
that city 10 promote the Guarantee
Bank and Trust Company. gave testt-
mony that occupied most Of the atten-
ton of the commission. 1t was MT.
Kennedv's statements to the Corpora
ton Commission that led to the In
vestiEation by that body. These wit
nesses told of the history of the pro-
noting company, and the occurrences
that resulted in the disagreements
between them. Mr.. Wiley was repre-
sented by Judge Waller r. Staples, of
Roanoke, and Judge Julian M.
Ouarles. Of Staunton, Kennedy had
as his attorneys 8. D. Undertake, of
Staunton, and Henry c. Riley, of
Richmond.
Kennedy Tells His side.
Having made the charge OF irregu-
Iarities In the conduct OF the Virginia
Bond and Share Company, Mr.. Ken
nedy was asked by the commission
to make a statement, which he did,
starting with his meeting with Wiley
in Baltimore and bringing him to
Staunton to promote the trust COM
pany, to the time he severed his con-
nection with the Virginia Bond and
Share Company, when he was advised
nv John Crosby, an officer of the COM
many, that its business was not being
properly handled Both he and Cros-
by then drew out Of the company and
a son OF Kennedy was placed In the
position of secretary and treasurer.
Kennedy stated that he demanded
that Wiley turn over to him the
amount OF the subscriptions, but he
always refused.
As to Kcnnedy's Subscription.
II was brought out that Kennedy
had subscribed to $4,000 of the
stock in the Guarantee Bank and
Trust Company, but had never paid
for any OF the stock. He had, how |
ever. written letter to the stock !
holders Of the trust company. stating
that he had paid 5000 into the COM
pany. and calling a meeting so that
they could elect officers and get a
charter from the Corporation Com !
mission. This would, he stated. en-
able them to get the 100000 sub
scrtbed to the trust company. which
was In the hands Of Wiley person
he. considered improper to hold the
amount, The meeting was held, Ken
nedy being elected president, and the
commission granted the charter on
January 20.
When Wiley took the stand he also
recited the career of the Virginia
Bond and Share Company. He de-
clared that Kennedy did not live up
TO hs agreements. and did not pay
into the company n single cent for it's
conduct He asserted that he could
lIOl iidht Use VI tIlt pdlly lunSt
since he was In no way able to dis
burse them, this being solely a duty
OF Crosby while he was treasurer of
the company and later by Kennedy's
son
Had Used His Commission.
It developed that Wiley, being out
OF funds to continue the operations of
tho Share Company. did discount some
OF the notes for subscriptions to the
Trust Company. but he had only taken
the twenty per cent allowed for the
sale Of the stock, the balance being
put to the credit of the Virginia Bond
and Share Company. Wiley said that
on several occasions Kennedy had
given him personal checks for the
company, only to have payment of
them stopped Immediately. He de-
clared that he had been forced to
put up his own money in order to
pay the expenses Of the Share Com
pany. and the commissions to his
statesmen. some of which have not
yet been paid.
Wiley stated that Kennedy had told
him that ne did not want to be known
as having anything to do with the
promotion Of the trust company. He
at various times wrote letters to
Wiley. telling him not to approach
different people, as he would attempt
to interest them himself Kennedy
had made an arrangement with
Wiley that when they sold subscrip-
tons for the trust company together
they would divide the commissions
between them, but otherwise they
were to receive 50 for each share sold.
the balance going into the treasury
of the share company.
Books Not Properly Kept.
The books of the company were in
tangled condition, and appeared to
he merely a series of memoranda
rather than an attempt at bookkeep-
ing. In such a condition were they.
and 80 irregular the evidence. that the
commission ruled that the case be
referred to the Corporation Court of
stanton, with the recommendation
that an investigation before the
grand jury should be had into the
matter OF the organization and the
stock subscriptions of the Guarantee
Bank and Trust Company, OF Staun
ton. and also as to the organization
of the Virginia Bond and Share Com
pany, Inc.
When the commission opened the in