Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1925-10-02
FAKE STOCK SELLERS
NOW FACING TRIAL
Men Who Mulcted Valley Investors
Arraigned In Augusta County
Got Thousands In Shenandoah

Fake stock promoters, alleged tt
have extorted approximately $196,
600 from Virginians during 1921 ant
1922 under the name of the Ameri
can Fuel Company. after many con.
tinuances, will be brought to the bal
of justice with the opening of Au-
gusta Circuit Court The docket
which was fixed Tuesday, cites three
of twenty men indicted last Novem-
Der for hearings.
The first will be that of John S.
McClintock, scheduled for October 7.
1t is expected three or four days will
be consumed in trying this individ-
ual, who is alleged to have been one
of the moving principals in the fraud
ulent operations of the now defunct
concern. McClintock is a native of
Pennsylvania, and at present is at
liberty under heavy bond given by a
surety company.
Jesse r. Cover of Elkton presum-
ably will be the second one to face
prosecution. Covers appearance will
give the proceedings an additional
interest in view of his connections in
Staunton. The third, it is expected,
will be N L. Shreckhise, of Staun-
ton The latter was a sales agent of
the company, it is understood, while
MaGlinfnaE o1lnond hn1 70
the West Virginia coal field, and
Cover were directors. Cover also is
credited with having written a letter
to the company expressing confidence
therein. copies of which were placed
in hands of agents and used to facili-
tate sales.
Many Spectators Expected
Bringing to trial these representa-
tives of the American Fuel Company
will draw scores to the scene from
Augusta, Roekbridge, Shenandoah
and Rockbridge counties, where re-
side many of those who were victim
lied by the fraudulent stock concern.
The interest in the hearing is not con-
fined to this section. Throughout the
State, the eyes of the public will be
on the court proceedings.
Twenty actual days of labor spread
out over a period of more than a
month, was spent by the county grand
jury which last November returned
"a indictments involving twenty men
Press comment heralded it as one of
the greatest steps ever taken to cur
tail operations in Virginia of fake
stock promoters.
Faces 76 Counts
McClintock stands indicted on 76
counts, 3S of which involve violations
of the State larceny statute, and the
remainder allege infractions of the
Virginia blue sky" securities act.
Cover faces as many and four more,
3S of each, and Shreckhise is named
in considerably smaller number He
faces 1S indictments, of which six
concern the blue sky law
simultaneously with the opening
of court, a grand jury will receive
three-score presentments for consid-
Grafton. Following rendition of true
bills, the regular docket will be ar
ranged.
Shenandoah Loser
Shenandoah County shared in the
losses incident to the sale of the stock
of the American Fuel Company to the
extent of thousands of dollars, and
at the March term 1923 of the Cir
cult Court of this county an indict-
ment for felony was found against
j. T. Hayden, one of the stock sales
men of the fake stock
Only one complaining witness ap-
peared before the Shenandoah grand
jury, although it was generally
known that several prominent citi-
zens had invested in the blue sky
securities.
The case at Staunton will be watch
ed with interest by several of this
county's substantial citizens who sus-
tanned losses.