21495. Mercantile-Railway Building and Loan Association (Alexandria, VA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 12, 1911
Location
Alexandria, Virginia (38.818, -77.082)

Metadata

Model
gpt-5-mini
Short Digest
06fc8f1c

Response Measures

None

Description

The association closed its doors in mid-January 1911 and was placed in receivership. No contemporaneous accounts describe a depositor run; receivers were appointed and the institution remained closed with receivers administering assets and paying dividends to creditors in subsequent years. The failure was closely linked to the collapse of the Virginia Safe Deposit and Trust Corporation and internal insolvency/mismanagement (indictments of the manager followed). Dates are taken from contemporaneous newspaper items (closing referenced Jan 12, 1911; receivership decree signed shortly thereafter).

Events (5)

1. January 12, 1911 Suspension
Cause
Correspondent
Cause Details
Closed following closely upon the failure of the Virginia Safe Deposit and Trust Corporation and because of lack of business/insolvency revealed in later examinations.
Newspaper Excerpt
THE closing yesterday of the Mercantile-Railway Building and Loan Association of this city
Source
newspapers
2. January 13, 1911 Receivership
Newspaper Excerpt
Judge J. B. T. Thornton ... had signed a decree placing the Mercantile-Railway Building and Loan Association in charge of Douglas Stuart and Lewis Hooff, as receivers.
Source
newspapers
3. September 13, 1911 Other
Newspaper Excerpt
Lewis Hooff, general manager of the Mercantile-Railway Building and Loan Association, was indicted by the grand jury this morning on nine counts of grand larceny.
Source
newspapers
4. June 13, 1912 Other
Newspaper Excerpt
Creditors of the Mercantile-Railway Building and Loan' Association, of this city, which was placed in the hands of a receiver in the early part of January, 1911, are to receive a dividend amounting to 30 per cent of their accounts.
Source
newspapers
5. January 6, 1913 Other
Newspaper Excerpt
The creditors ... will receive an additional dividend of 20 per cent ... The first dividend of 30 per cent was paid June 15, 1912.
Source
newspapers

Newspaper Articles (11)

Article from Alexandria Gazette, January 13, 1911

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ALEXANDRIA, VA. FRIDAY EVENING. JAN. 13 THE closing yesterday of the Mercantile-Railway Building and Loan Association of this city, following so closely in the wake of the notice which was placed on the front door of the Virginia Safe Deposit and Trust Corporation, was unfortunate. Both institutions have been the depositories of men, women and children who had but small amounts to invest, and such are naturally anxious nothwithstanding the assurances of the receivers that the claims of all depositors will eventually be met. Such occurrences in mid-winter, when numbers interested are unable to work, cause considerable gloom and bring about a timidity and a lack of confidence which more or less permeates the entire community. Money is the most sensitive of all thermometers, and apprehension is naturally caused among many who have money invested in institutions shown by bi-monthly exhibits to be perfectly sound. This should not be the case. The companies which have been compelled to close their doors from one cause or another will, of course, require time to settle their affairs, and until exhibits can be made it will doubtless be best to suspend judgment. The wheels of receiverships and courts move slowly, and the many interested realize that should the dividends declared eventually. meet all demands, it may be a long time before this reimbursement can be made While we all regret such occurrences, as over a third of a century had elapsed since the abrupt closing of a banking institution in Alexandria, it should be remembered that such collapses are common in the larger cities and that mobs of men, women and children are often seen surging around defunct banking institutions. Such scenes have always been rare in Alexandria, and the floating cloud which has settled over the city will, it is hoped, soon pass away.


Article from Alexandria Gazette, January 13, 1911

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THE MERCANTILE RAILWAY COMPANY. There are no developments today in the matter of the closing of the doors yesterday of the Mercantile-Railway Building and Loan Association. The receivers and the attorney are at work preparing a statement of the affairs of the association which they will submit as soon as possible. The affairs of the association extended over a considerable territory and many persons are interested to a more or less extent, a large number of whom are of limited means. The list annual statement of the financial condition of the association on December 31, 1909, published on January 28, 1910, showed: RESOURCES. Loans on real estate and stock of association and accrued $286,966 98 Office payments building, furniture and 6,102 00 fixtures, auxiliary banks 9,243 48 Cash in bank and office $302,312 46 LIABILITIES. Due stock class A-1, $59,304.04 6,053.28 $53,247 76 Less dividend paid. 15,597 00 Due stock class A-2 " " " 29,454 41 B " " 12,113 29 C 91,900 00 Due paid-up stock and bank $302,312 46 All dividends payable semi-annually in cash, save in class A-1 comulative.


Article from The Free Lance, January 14, 1911

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ALEXANDRIA CONCERN GOES INTO HANDS OF RECEEIVERS Sequel to Bank Failure. Following close upon the heels of the collapse of the Virginia Safe Deposit and Trust Corporation, Alexandria investors received another shock Thursday, when they learned that Judge J. B. T. Thornton, of the circuit court, had signed a decree placing the Mercantile-Railway Building and Loan Association in charge of Douglas Stuart and Lewis Hooff, as receivers. The proceedings resulting in the appointment of receivers were instituted by F. F. Marbury, Lewis Hooff, John P. Robinson and Laurence Stabler, directors of the association. The receivers appeared before Judge Thornton and qualified by giving joint bond of $25,000. Attorney Boothe gave out the following statement: "The placing of the Mercantile-Railway Building and Loan Association in the hands of receivers, is, to a certain extent, a sequel to the appointment of receivers for the Virginia Safe Deposit and Trust Corporation.


Article from Alexandria Gazette, September 13, 1911

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HOOFF INDICTED BY GRAND JURY Nine True Bills of Grand Larceny Brought Against Manager of Mercantile. Lewis Hooff, general manager of the Mercantile-Railway Building and Loan Association, was indicted by the grand jury this morning on nine counts of grand larceny. The grand jury, which is composed of John W. May, foreman, Courtney Actor:- C. Page Waller, T. C. Howard; W. B. Smoot, Charles H. Callahan, W. E. Bain, C.B. Marshall and A. S. Doniphan, has been in session since last Monday making an investigation of the affairs of the Mercantile, which closed its doors last January, following of the the failure Virginia Safe Deposit have and Trust Corporation. They had number of and this them, a large morning witnesses Harry before Kirk, of the and Trust bookkeeper posit Corporation, Virginia and Safe Doug- Delass were Stuart, cloistered receiver with of the the grand Mercantile, jury for several hours. The indictments were returned to one o'clock and at the same the of the jury the court time, at report the grand Mercanthe upon tile was were a upon presented. condition There only had few persons in court when the jury completed its labors and Mr. Hooff was not present. The indictments against Mr. Hooff are as follows: Feloniously stealing $600 of the funds of the Virginia Safe Deposit and Trust Corporation. Feloniously stealing $700 of the funds of the Virginia Safe Deposit aud Trust Corporation. Felonously stealing $1,500 of the funds of the Virginia Safe Deposit and Trust Corporation. Felonously stealing $250 of the funds of the Virginia Safe Deposit and Trust Corporation. Felonously stealing $500 of the funds of the Virginia Safe Deposit and Trust Corporation. Folonously stealing six shares of the stock of the Mercantile Company. Feloniously stealing nine shares of the stock of the Mercantile Company. Feloniously stealing thirty-three shares of the Mercantile Company. Feloniously stealing three shares of the stock of the Mercantile Company. The result of the investigation of the affairs of the concern is contained in the following report, presented by the grand jury "The grand jury finds that the 18th annual statement of the Mercantile Railway Building and Loan Association of Alexandria to the stockholders from 1909, the examined directors and dated approved December by Joseph 31, L. Durkin actuary of Philadelphia dated January 19th, 1910, based on information, furnished by the officers of said association and approved by the trustee was misleading and deceptive, as the evidence before the grand jury shows that the association was insolvent at the time said report was made. We also find the system of bookkeeping was entirely inadeuqate and confusing. We furthermore find that the directors were ignorant of the operations of the institution and the methods applied. relying entirely upon data furnished by the secretary from which they made their reports." Mr. Hooff has been summoned to appear in court tomorrow morning. when the date of his trial will be set. It is expected that it will take place on or about the 14th of November. It was stated today that Mr. Hooff was bonded in the United States Fidelity Co., of Baltimore, Md., for $20,000 to fulfill his obligations as manager of the Mercantile.


Article from The Washington Times, December 26, 1911

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WASHINGTON TIMES BUREAU, ALEXANDRIA, VA., DEC. 26. Preparations now are being made for the trial of Lewis Hooff, indicted by a grand jury in connection with the failure of the Mercantile-Railway Building and Loan Association in this city nearly a year ago, which is set for January 16, in corporation court. Hooff at present is at his home in Theological Seminary, he being at liberty under $10,000 monds furnished by his wife and sister. When the building association suspended last January it was announced that its failure was brought about princiaplly because of its lack of business, but was precipitated by the failure of the Virginia Safe Deposit and Trust Corporation, with which its affairs were closely involved, It was not until last August, after an exhaustive examination by the receiver, Douglass Stuart, and Special Commissioner H. Noel Garner, that Hooff, who was secretary and general manager of the concern, was suspected. His arrest and subsequent indictment followed. Just what portion, If any, of their savings will be recovered, will not be known to the depositors and shareholders until Commissioner Garner's report is filed with the court. This is expected in the course of the next few days. Mayor F. J. Paff stated this morning. that he had not taken action on the annexation ordinance, approved by both boards of the city council, and now in his hands for his signature. It is regarded as certain that the mayor will eventually sign the ordinance. Tomorrow will mark the first anniversary of the failure of the Virginia Safe Deposit and Trust Corporation. Since the concern was placed in the hands of receivers, 20 per cent of their accounts have been recovered by depositors. Another payment of 10 per cent will be made January 16. An unusually orderly Christmas celebration here was reported by the police. Practically no disorder resulted, and but four cases were heard in police court this morning. On a charge of disorderly conduct and resisting arrest by Officer Frederick Garvey, Frederick White received a fine of $10. Joseph Carroll, colored, was sentenced to six months in jail for an assault on Gertrude Jones. Fines of $2.50 each were imposed on Frank Ward and Frank Ford, both colored, for fighting. Funeral services for Lewis Edelen will be held from St. Mary's Catholic


Article from The Washington Times, January 27, 1912

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WASHINGTON TIMES BUREAU. ALEXANDRIA, va., JAN. 27. Another echo of the failure of the Mercantile-Railway Building and Loan Association will be heard in circuit court Monday, when a nubmer of the legal phases incident to the suit of F. F. Marbury and others against the concern will be heard. Judge J. B. T. Thornton will rule on the several exceptions filed against the report of H. Noel Garner, special commissioner. Among these will be that of the receiver, J. K. M. Norton; the Second National Bank of Culpepper, and that of Howard W. Smith, all of which relate to the failure of the commissioner to give them preference in his report. Another matter to be settled is that of Virginia Roxbury, who, through her attorneys, James R. and Harry B. Caton, has petitioned the court to set aside a decree, issued July 15, 1911, which provided that 10 per cent of the amount collected by Douglas Stuart, receiver, should be divided between himself and Gardner L. Boothe and J. K. M. Norton, and was to present the full amount of their services to that date. The petitioner alleged that at that time the report of the commissioner had not been filed, and there was no means of ascertaining what this sum would be. She also alleges that the attorneys were not entitled to payment out of the fund collected for the benefit of shareholders, as the latter had no voice in their appointments. Following a few hours after the death of her sister, Helen W. Collard, at her home, "Retirement," in Fairfax county,


Article from The Washington Times, March 1, 1912

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# LOAN ASSOCIATION AFFAIRS WILL BE ARGUED IN COURT Civil Suits Over Alexandria Failure Before Judge Thornton. WASHINGTON TIMES BUREAU, ALEXANDRIA, VA., MARCH 1. A number of civil suits incident to the failure of the Mercantile-Railway Building and Loan Association in this city over a year ago, and all present- ing interesting legal phases, will be heard in the circuit court for the city, which convenes next Monday, Judge J. B. T. Thornton presiding. Probably the most important of these is that of Virginia Roxbury, brought through her attorneys, James R. and Harry B. Caton. The petitionar seeks to have set aside a decree of the court entered July 15, last, providing for the setting aside of 10 per cent of the amount collected by Douglas Stuart, the receiver for the concern, to be divided between himself and the attorneys for the com- pany, J. K. M. Norton and Gardner I.. Boothe. This was to be in full set- tlement for their services to that date. At that time, according to the allega- tious filed in the bill, the report of the special commissioner appointed by the court to inquire into the firm's affairs, had not been filed, and, conse- quently there was no means of determining just what sum this decree would amount to. She further alleges that the attorneys appointed without her consent, as a stockholder, were not entitled to be paid out of the funds col- lected for the benefit of the stockholders. Several exceptions to the report of H. Noel Garner, special commissioner, will also be argued at that time. Among these are those of the receiver, Douglas Stuart, the Second National Bank of Culpeper, J. K. M. Norton, and Howard W. Smith. Most of these refer to the failure of the special commissioner to give their claims preference in his report. The suit of Seltzer against Tackett will also be argued at this term of court. Arrangements for a spring festival, to be held here for about ten days, commencing April 10, were made at a meeting of Alexandria Canton, No. 1, Order of Patriarchs Militant, held in Odd Fellow's Hall last night. Several committees were appointed to further pians for this event. One petition for membership was also received. J. Walter Hughes, of this city, trading as J. B. Hughes & Son, yesterday filed a deed of assignment in corporation court, naming G. Washington Lewis. Hughes conducts a plumbing business at 104 South Washington street. His lia- bilities are stated at $1,097.75, and most of his creditors are Alexandrians. Alarmed at the marked decrease in the collection of licenses in Alexandria county in the past year, a special grand jury yesterday began an examination into the matter. After one day's work that body was adjourned by the court. Many delinquents, it is said, paid up when they learned that an investiga- tion was pending. Judge J. B. T. Thornton yesetrday re-appointed Frederick B. Graham a mem- ber of the county school electoral board. According to the report of Nevell S. Greenaway, clerk of the courts, which was filed this morning, during the morth of February forty-two deeds of bargain and sale were placed on record in his office. In the same period thirty- six marriage licerses were issued, thirty-three to white and three to col- ored couples. The third degree of the order will be conferred upon five candidates at a meeting of Potomac Lodge of Odd Fellows to be held this evening. The social service exhibit, now in progress at King and St. Asaph streets, was viewed by several hundred persons today. Today the affair is in charge of the Council of Jewish Women, and the entire affair is under the auspices of the Men and Religion Forward Movement


Article from The Washington Times, March 31, 1912

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WASHINGTON TIMES BUREAU, ALEXANDRIA, VA., MARCH 31. Arthur Thrunold. a soldier stationed at Fort Hunt, was beaten and robbed near St. Mary's Cemetery in Royal street at about 8 o'clock last night. According to his story, his companions were three soldiers who said they were stationed at Fort Myer, and whose names he does not know. The four had been drinking. They were walking out i Royal street, he said, when the three jumped on him and dragged in into the underbrush. After beating him until he was nearly insensible, they relieved him of a diamond ring, valued at $50, and all the money he had, about $2, and left him. Besides numerous bruises about the body, Thrunold had an ugly cut on his right eye. He was taken to Alexandria Hospital, where his injuries were dressed, and returned to the fort this morning. The Fort Myer authorities have been notified, and search will be made for his assailants there. Judge J. B. T. Thornton, of the circuit court, yesterday afternoon announced his decision on the exceptions filed by H. Noel Garner, special commissioner, in the case of Marbury and others against the Mercantile-Railwa, Building and Loan Association. These exceptions were filed by J. K. M. Notton and Grander L. Boothe, attorneys for the receiver, and practically all of these were sustained by the court. All creditors of the defunct concern, he ruled, were entitled to preference in settlement. This includes notes given by the association prior to its failure and accounts in the savings department, held principally by children. The total sum of the notes due amount to about $38,000, and the sum due banks is about $13,000. Payment of these claims on a 50 per cent basis, it is said, will practically consume all the cash on hand, the stockholders receiving nothing. The decree has not yet been entered on record, but it is said that this will be done tomorrow. Funeral services for Col. Albert D. Marshall were held from his home, at Riverside, Fairfax county, this afternoon. The Rev. Edgar Carpenter, of Grace Episcopal Church, officiating. Members of Alexandria Lodge of Elks, of which the deceased was a member, attended. Burial will not be made until tomorrow, when the body will be conveyed on a special funeral train to Arlington National Cemetery. The board of fire wardens of this city having been abolished by act of the State Legislature, the members will retire from office during the month of


Article from The Washington Times, May 7, 1912

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WASHINGTON TIMES. BUREAU, ALEXANDRIA, VA., MAY 7. A technical point raised by the defense yesterday brought the annexation proceedings of the city of Alexandria to a summary termination: After the best part of the day had been spent in exhaustive arguments, Judge B. T. Gordon announced that he would dismiss the proceedings without prejudice, sustaining the move of attorneys for Alexandria and Fairfax counties. Their contention was based on an irregularity in serving notice of the suit. In the service of the papers in the case, it was shown that the city had made it to each member of the respective boards of supervisors as individuals, and not as a body. This was the cause of the dismissal of the case. While purely a technical point, it means that the entire proceedings will have to be gone over again. New papers will have to be served, and the matter can hardly come up again for action until late in the fall. That the action will be resumed, however, there is no doubt, for while a stumbling-block was placed in the path of the city in its aspirations, it will continue its fight for the coveted territory. While the dismissal was a surprise to the community at large, the city's attorneys state that it was not altogeher unanticipated. Representing Fairfax and Alexandria counties were former Gov. A. J. Montague, R. Lynch Montague, C. Vernon Ford, Crandal Mackey, and Moore, Barbour, Keith & McCandish. For the city appeared Samuel P. Fisher, Samuel G. Brent, and John M. Johnson. An important decree was entered under yesterday's minutes of the circuit court this morning. It relates to the suit of F. F. Marbury and others against the defunct Mercantile-Railway Building and Loan Association. Judge Thornton made several rulings on exceptions filed to the report of Special Commissioner H. Noel Garner. as well as ordering the sale of real estate, held as security for loans due, as well as the real estate of the association. One of the items of the decree, which is of paramount Interest to the many depositors in the savings department of the institution, is that which holds that they shall be rated as preferred creditors and share equally with certain named holders of notes in the distribution of any dividend. It is further ordered that the report of the special commissioner be amended accordingly. In the exceptions to the report of Special Commissioner Garner, filed by Virginia Roxbury, J. K. M. Norton. and Howard W. Smith, receivers for the Virginia Safe Deposit and Trust Corporation; the Second National Bank of Culpeper, C. T. Blunt, W. F. Webster, Alice Ballard, Grace Hunter, A. C. Bleight, F. M. Lyles, S. E. Deeton, W. H. Hampton, M. M. Davis, Alton A. Hampton, R. N. Davis, I. F. Davis, Thomas Fletcher, A. E. Woodward, A. C. Steele, Ada V. Laing, and Eugene Payne, the judge holds that all such exceptions which are based on the idea that the defendant had no authority to borrow money, be overruled. Further, that the exceptions of the Second National Bank of Culpeper and of the receivers for the Virginia Safe Deposit and Trust Corporation, be sustained, the court being of the opinion that notes aggregating $6,387.92, embraced in exceptions, be allowed as a claim against the defendants along with other notes, aggregating $30,301.86, which were allowed by the special commissioner. In reference to depositors in the savings account department, he holds that they are not stockholders, but creditors, and must be given preference. The public drinking fountain, commemorating the historic events of Alexandria, erected by Mt. Vernon Chapter, Daughters of the American Revolution, will be unveiled and presented to the city Thursday afternoon at 4 o'clock. The following is the program for the occasion: "America," by school children; music, "Medley of National Airs," Fort Myer Cavalry Band; address, Hon. C. C. Carlin; presentation of fountain, Mrs. W. A. Smoot, regent of Mt. Vernon Chapter; unveiling of fountain. by school children; "music, by Fort Myer


Article from The Washington Times, June 13, 1912

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WASHINGTON TIMES BUREAU, ALEXANDRIA, VA., JUNE 13. Creditors of the Mercantile-Railway Building and Loan' Association, of this city, which was placed in the hands of a receiver in the early part of January, 1911, are to receive a dividend amounting to 30 per cent of their accounts. This was ordered through a decree entered in the circuit court by Judge J. B. T. Thornton this morning, and will prove welcome news to the many creditors. The decree, it is stated. is not to be confused into extending any hope to the stockholders of the association, who, it is understood, will not receive a penny of their investments. In the report of H. Noel Garner, special commissioner in the case, which was filed January 2, creditors were defined as being those persons whose accounts were similar to those of savings depositors in banks. The mercantile association issued many small coin banks, retaining the key, and the savings thus accrued by the holders were placed to their credit at interest. These persons alone will participate in the dividend of three-tenths of their respective deposits. The case of Charles B. Marshall, representing J. A. Marshall & Bro., King street merchants, against Benjamin Abramson, was threshed out in police court this morning. Abramson was arrested on a State warrant, sworn out by Marshall, on the grounds that a show case belonging to the former, whose store adjoins his, projected beyond the building line, and interfered with pedestrians. In retaliation, Abramson swore out a similar warrant against Marshall, the steps of whose home, he alleges, are equally in violation of the law. Both cases were tried as one. Justice Caton reserved his decision. The commissioners of election filed their report on the recent general election with Nevell S. Greenaway, clerk of the courts, this morning. It showed a total of 481 votes cast. Certificates of election will probably be issued to the successful candidates within the next few days. Graduation exercises for St. Mary's Academy were held in the Opera House this afternoon, diplomas being given nine graduates. They were Christine J. Waggaman, Genevieve R. Crilly, Eva M. Crilly, Mary K. Quinn, Mildred C. Hellmuth, Helen C. Nugent, and Mary L. Hill in the academic course, and Helen M. Mayer, and Ethel C. Stover in the business course. The exercises were participated in by the undergraduates. The program included selections by Misses Katherine Brill, Helen Corbett, Bessie Davis, Myrtle Campbell, Christine Waggaman, Genevieve Crilly, Thelma Longfellow, Eleanor Nugent, Katherine Waller, Eva Crilly, and Mary Quinn. Mildred K. Hellmuth, Helen C. Nugent, and Mary L. Hill were the lead-


Article from The Washington Times, January 6, 1913

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WASHINGTON TIMES BUREAU, ALEXANDRIA, VA., JAN 6. The creditors of the Mercantile-Railway Building and Loan Association of Alexandria, which closed its doors two years ago following the failure of the Virginia Safe Deposit and Trust Corporation, will receive an additional dividend of 20 per cent within the next few days. A decree was entered in the circuit court of Alexandria today by Judge J. B. T. Thornton, ordering Douglass Stuart, receiver for the association, to pay the additional dividend. The first dividend of 30 per cent was paid June 15, 1912. The creditors are composed of a large number of persons who had small savings accounts in the savings department of the company. In all probability another small dividend will be paid before the final settlement of the affairs of the company takes place. The stockholders will not receive anything upon their shares. The suit of Mrs. Alice McMenamin and her husband against the Southern Railway Company for $7,500 for damages alleged to have been caused by smoke from the railroad company's engines, which has been tried in the Alexandria court on two occasions and has also been before the supreme court of appeals of Virginia, was settled today, so far as the Alexandria courts are concerned, by a decree entered by Judge Thornton in the circuit court of Alexandria, sustaining the demurrer to the evidence made by the defendant and placing the cost of the suit upon the plaintiff. More than a hundred men from all sections of northern Virginia were in Alexandria today to attend the January term of the United States District Court for the eastern district of Virginia, including court officials from Richmond, Norfolk, and other points. The court did not commence business until nearly 12 'clock, when the selection of the grand jury was taken up. Judge Edmund Waddell, jr., presided, and the Government was represented by District Attorney D. Lawrence Groner, of Norfolk, and Assistant District Attorney R. H. Talley, of Richmond. Today and tomorrow morning were to taken up by the grand jury. Tomorrow morning the trial of H. Linden Wheatley, a former clerk in the Alexandria postoffice, charged