Evening star., 1925-10-07
CALLSM'CL|NT0Ck
FRAUD R|NCLEADER
Prosecutor Arraigns Lawyer
in Opening of Trial at
Staunton, Va.
By the Associated Press.

BY the Associated Press
STAJNTON, Va, October One
OF the most noted legal battles ever
10 be waged under the Virginia "blue
sky" law opened here yesterday when
John McClintock, Philadelphia attor-
ney. termed by the prosecution "the
master mind" of the American Fuel
%. s alleged fraudulent sale of worth.
less stock, to which citizens Of this
section contributed nearly 100000.
was placed on trial. Indicted together
with Il other alleged representatives
"f the company, McClintock is charged
with defrauding G. D. Wine of
Churchville. this county, Of a $1,000
negotiable note.
nection with which twenty alleged Of
ficers and statesmen of the concern
we're indicted last November of Cir.
cult Court grand jury, following IL
day investigation, took place in 1920
and 1921.
Delays in Reaching Trial.
Trial of those indicted has been de-
layed from time to time due to the
insistence Of Prosecuting Attorney
Kerr that McClintock be the first Of
the defendants to go before the bar
and the inability of the State to pro.
duce him sooner before the court for
trial.
Convicted Man Star Witness.
William A Benjamin. also under
indictment, and who is now under
rhree-year sentence in Pennsylvania
on charge OF fraud. will be the star
witness Of tie prosecution in the trial
OF McCGntock. And it is upon him
that McClintock places the entire re-
sponsibility for the operations of the
now defunct American Fuel Co.
In his opening argument before
the court yesterday Attorney Kerr
said that Nirginians invested $198,00o
in the worthless stock Of the de-
funct company. lie stated that the
commonwealth would show that Nc
s.lintock was the master mind and
organized and put its stockselltng
scheme into operation: that the COM
panv never owned the coal lands that
il claimed in Braxton and Webster
Counties Of West Virginia. that the
lands which it claimed 70 own were
worthless: that the company was or
canzed in West Virginia in January,
1920. with a capital stock Of $500. 900.
and that three days later the stock
vas increased to S2.o00.C00; that in
February, 1920. the company made
application to the Virginia State Cor
itOraNlCn LOT d permit 10 Sell SlOch III
his State, which was granted April
II following.
Lawyer in Good Standing.
capt Greenlea d. Letciler Of Lex
ington Va. representing the defend
ant, characterized ATcClintock as a
lawyer in good standing and man
who had interests in numerous repu-
able coal companies.
He claimed that Benjamin came TO
McClintock il the interest OF pur-
chasing coal lands and that the de-
PENDANT greed TO turn over to him
1000 acres of land for saa al acre,
when Benjamin explained to him that
he vas going TO organize company
10 sell stock to finance the transaction.
Benjamin. the attorney pointed out,
turned over to the defendant only SS,-
30 in all on the deal and that Nc
Clintock was therefore unable to turn
over the land with 3 clear title. The
fact that McClintock did have coal
lands in West Virginia TO dispose Of
and that he did contract, 10 sal prop
Nrry to Benjamin was hfs o.ay con
lection with the defUnct american
Fuel Co. the defense argued in its
opening remarks.