Bank of Aurora (Aurora, MO)

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PLANNING TO HALT STATE TREASURER'S IMPEACHMENT TRIAL

Continued From Page One. week. approved, some little time required prepare and adopt impeachment and appoint board managers house to conduct the senate. today predictthat the survey gram might banner Representative County, raised technical point order against the Brunk presenton floor the house. Whitthe held ex parte witnesses side the that such procedure violative rules erning hearings. the committee, valiant effort report, and speedy trial for Brunk in the

Little Work Has Been Done. Even without the complicating the impeachment Brunk, appeared today for the legislature complete by the regular adjournment Virtually of the assembly still are in committee rooms. Among these the survey corporation redistricting highway bus and truck committee was to hold hearing today the bills, the tax measures out favorably

PROBABLE.

County Prosecutor Sends Feb. Criminal State Larry Brunk in the cuit court County Attorney he has requestthe which terday recommended Brunk, evidence showing the state treasurer had knowledge the count," which money belonging state diverted in the closed Bank of Aurora

BILLS BEFORE COMMITTEE CITY Feb. the state commission farms and today their strength the means which considering the hours Wednesday the heard opponents and graduated tax merits the discussion before than busimen Louis, Kansas City, and other urban centers protest passage they termed "radical

BRUNK CONSULTS COUNSEL JEFFERSON Larry proceedings have been brought the house Kansas City today his John whether attempt will be answer the house the charges contained the report of the investigating committee.

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MADDEN BANK RECORD SHOWS SIGNS OF ERASURES for Larry Brunk Attorney Charges Alterations in Ledger Sheets of the Aurora Bank.

RECORDS EXHIBITED BY BANK RECEIVER

Number of Deposits Carried on Sheet Labeled "Contingent Fund," Says Young Lawyer.

By The Associated Press. Jefferson City, Mo., May amination of the first witnesses the impeachment trial in the Missouri Senate of Larry Brunk, suspended state treasurer, began today with Charles Becker, secretary state, and Cahill, Springfield, special deputy state finance commissioner, the first to testify. Becker testified merely as Brunk's election as treasurer 1928, his suspension Oct. 14 last, by Gov. Caulfield, his reinstatement Dec. 31 last, when supreme court held the suspension illegal, and second suspension May after the House voted impeachment charges. Told of Records. Cahill, who was placed in charge the liquidation of the defunct Bank of Aurora, the state depository Brunk's home town which irregularities in state deposit interest accounts are alleged to have been manipulated by Brunk and the bank officers, told the records he found when he took charge, the Brunk, and the alleged discrepancies in accounts. Ledger sheets, deposit slips, checks, etc., were offered exhibits. Cahill, who testified he was pointed by L. Cantley, state finance commissioner, who was named temporary treasurer by Governor Caulfield Oct. 14 last, when Brunk was first suspended, told of discovery by auditors of the bank of the Brunk rent account, into which state deposit interest money was alleged to have been placed to and of conference here about Oct. with Governor Caulfield. Brunk summoned and was "excited and Cahill said. Bank President There. At another conference the second day, Brunk and R. Adams, president of the Bank of Aurora, were present. Adams said, according to the testimony, that the Brunk rent account would "get us in trouble," when he learned of it, but said Easley assured him he need not worry, that was "fixed Cahill also testified that short time after he took charge of the bank, which closed June 14 last, Brunk came to Aurora and discussed his obligations to the bank and payment the notes. John Madden, Kansas City, Brunk's in his opening attorney, inferred Brunk statement yesterday, (Continued Page

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MADDEN SAYS BANK RECORD SHOWS SIGNS OF ERASURES for Larry Brunk Attorney Charges Alterations in Ledger Sheets of the Aurora Bank.

RECORDS EXHIBITED

BY BANK RECEIVER

Number of Deposits Carried on Sheet Labeled "Contingent Fund,' Says Young Lawyer.

Jefferson City, Mo., May amination of the first witnesses the trial in the Misimpeachment souri Senate of Larry Brunk, suspended state treasurer, began today with Charles U. Becker, secretary state, and Cahill, Springfield, special deputy state finance commissioner, the first to testify. Becker testified merely as to Brunk's election as treasurer in 1928, his suspension Oct. 14 last, by Gov. Caulfield, his reinstatement Dec. 31 last, when the supreme court held the suspension illegal, and his second suspension May 2, after the House voted impeachment charges. Told of Records. Cahill, who was placed in charge of the liquidation of the defunct Bank of Aurora, the state depository in Brunk's home town in which irregularities in state deposit interest accounts alleged to have been manipulated by Brunk and the bank officers, told of the records he found when he took charge, the by Brunk, and the alleged discrepancies in interest accounts. Ledger sheets, deposit slips, checks, etc., were offered as exhibits. Cahill, who testified he was appointed by L. Cantley, state finance commissioner, who was named temporary treasurer by Governor Caulfield Oct. 14 last, when Brunk was first suspended, told of discovery by auditors of the bank of the Brunk rent account, into which state deposit interest money was alleged to have been placed to and of conference here about Oct. with Governor Caulfield. Brunk summoned and was "excited and Cahill said. pale," Bank President There. At another conference the second day, Brunk and E. Adams, president of the Bank of Aurora, were present. Adams said, according to the testimony, that the Brunk rent account would us in trouble,' when he learned of it, but said Easley assured him he need not worry. that was "fixed Cahill also testified that short time after he took charge of the bank, which closed June 14 last, Brunk came to Aurora and discussed his obligations to the bank and payment of the notes. service has been A inaugurated betwen distance of 900 and Seattle, miles.

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10,000 Chinese Farmers Massacred by Red Troops

SEEKS CROWN

This of Miss photo Gunda Lee Selling, high school student, who represents Wichita, Kan., at the International Pageant of Pulchritude, in Claiveston, Texas, June 13-17.

When an effort was made to get him back here some time ago after he had been excused without being placed on the stand and house managers decided to examine state. abouts still remain unknown and many senators doubted if he would be found before the case ends. Throughout most of the day Brunk was by the house managers relative to details in connection with deduction of interest due on state deposits in the defunct Bank of Aurora. and its partial application on his notes: those notes: and Mrunk's relations with William H. Norwine, bond salesman. and Kenneth Edlin, Chicago security dealer and underwriter. with whom Brunk is alleged to have conspired to sell bonds of the Pierre Choteau apartment, St. Louis. to state depository banks for use as security to the state.

NOTHING IMPROPER'

The suspended treasurer firmly continued his denials. denied there anything improver or unusual in his relations with Norwine or Edlin: asserted he did not advise Norwine It would be best for him not to come here and testify: said Norwine "lied" in some of his statements before' the house investigating committee to the effect Brunk sided him in selling Pierre Choteau bonds: and explained the loaning of $10,000 to him (Brunk) by Edlin after the Bank of Aurora failed to pay on Brunk's notes. He reiterated: legitimate, and Brunk was questioned by several senators when his examination was finished. Senator Gordon asked Brunk if he did not think he should be responsible for the care of the taxpayers' money, and Brunk answered "yes, but don't think should be responsible for a mistake by a clerk in my office." The treasurer also was asked if he discussed the Brunk rent account and interest deductions with Easley after the disclosures were made and Brunk said he had several times urged Easley to come to Jefferson City and tell the governor he (Brunk) knew nothing about the account or deductions, and Easley said he would, but his attorney would not let him.

KNEW NOTHING OF IT' told me emphatically he knew knew nothing about it," Brunk said. Adams testified earlier in the trial that so far as he knew definitely Brunk had no knowledge of the account or manipulations, but that he assumed the treasurer did form what Easley told him (Adams) about Asked If he could get in touch with Norwine now, Brunk said he could not and did not know where Norwine was. The suspended treasurer also said

Many Cities Reported Besieged and Anti-Government Troops Slaying Farmers to Cover Advance

The Associated Press June slaughter of non-combatant farmers, used by Reds in Kiangsi Province as human shield to cover an advance against government troops, was told in dispatches today from Nanchang. It was estimated 10,000 persons were slain, Despite the reports of Red and bandit incursions, the government insisted its campaign against them was meeting with success and that Generalissimo Chiang Kai-Shek soon would establish headquarters at Nanchang.

MORALE SHATTERED

Hankow reports, however, said Nanchang itself might fall to advancing Reds as government troops, with morale, were offerIng only feeble resistance. The slaughter near Kiangfu took place when the Reds attacked 3000 government troops. Fearing to charge against haking machine gun fire, the reds drove non-combatants before them. Government troops, knowing the red attackers lurked behind the human shield. opened fire and moved down thousands. Machine guns overheated and jammed as the carnage progressed and the reds broke through to massacre the government troops.

SOLDIERS RETREAT

Overflowing from Kiangsi province, 40,000 other reds were reported descending upon Yenping in northern Fukien. Provincial soldiers treated before them and foreign missionaires fled to the seaport of Focchow. Then American refugees said the whole country about Yenping was overrun by reds. The city of Changshu was reported captured and Pucchow, ten kilometers from Nanchang, was beFor the moment. the brewing insurrection in south China lost importance in the face of destruction by red armies. The famous "silver bullet" of Chinese to have used Nanking.

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EASLEY PLEADS SEATTLE RECALLS GUILTY IN FAILURE MAYOR WHO FIRED OF AURORA BANK LIGHT PLANT HEAD

Cashier Who Failed to Appear at Brunk Trial May Get Two Years.

CASSVILLE, MO., July Easley, official the state the Bank of Aurora, guilty day to charges growing out of the bank failure Prosecutor Richard McPherson of Lawrence he has two-year sentence for Easley. Sentence deferred until the next term the Barry County Circuit Court, where the case was brought change of venue from Lawrence Easley's plea came as surprise after long battle have charges dismissed. also followed his plea of not guilty Monday. entered after Circuit Judge Emory Smith denied him further delay on the ground two defense witnesses could not appear in court now and on the ground his mother was ill.

Failed to Appear at Brunk Trial. Easley cashier the defunct Bank Aurora which carried the Brunk Rent Account. an important item the impeachment proceedings against State Treasurer Brunk. was scheduled to testify in the case but did appear R. Adams. vice president of the bank, testified that Easley had told him that (Easley) had taken money from the state interest count deposited it in the "Brunk Rent

Executive Removed From Office in Midst of His Second Term.

SEATTLE WASH. July Frank Edwards of Seattle has been recalled office by jority of 13,500 votes. The vote was 35,000 to the the second time that Seattle has removed mayor from office this mothod. Edwards the midst of his term when The recall came Frank Edwards. as the result action in discharging the mayor's muD. and light plant since nicipal power 1905. its Robert Harlan, labor leader and of city council. become president acting mayor. pending elecexecutive by tion permanent the eight other members of the council. Harlin declared will immediately Ross. The eyes the have been this inon Seattle volving public by encouragedenced Roosevelt ment from Gov. of New York and Gov. Pinchot of Ross, following his discharge from the city plant, retained by the State of New York the $220,000.000 St. engineer Lawrence River power project.

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AURORA BANKER PLEADS GUILTY

Easley Brings Trial for Receiving Deposits to an Abrupt End

July Easley, former cashier the defunct bank of Aurora, pleaded guilty in circuit court here today charge deposits while the bank insolvent. Easley's abruptly trial which opened after the jury had been selected. postponed until the term of widely attorneys for the state would Whether Easley used witness against Adams, former president the Aurora schedulfor trial next Easley Adams bitterly arraigned yesterday Arthur Curtis, Springfield. special counfor the state, outlined the prosecution's Curtis Easley and Adars appropriated $62,000 from state fund bank for their own that they transferred county deposit shortages other counts: that they appropriated on property ered by mortgage and turned instead of the that they took $20.000 bonds and other securities used security and transferred to other funds Curtis declared bank ficials took parts interest state's transferred the money to their own personal counts and later took out misused At time the vestication was being made and the bank considered. Curt's made signed confession of funds and existence various shortages The guilty plea former official the bank which figured the recent improminently trial State Treaspeachment Brunk Missouri Senate resulting charges failing the sufficient votes surprise The them. after trial Judge Emery Smith orderCircuit over Easley's councel tempts further continuance 80 had been Some case opened Katherine vesterday former employe Gardner stand identifying the bank the correspondence the failed pleaded for Easley's attorneys further the ground produce they be important mother is dangerousthat Easley's and Adams, Both Easley president the former Jefsubpoenaed beginning ferson Brunk were the House of Repremissed by the sentatives' decided use them when the managers nesses ater recall Easley decided not located could he had left the state. testified. claming deducAdams state accounts tions from Brunk's and the bank's credit had been arranged assumed Brunk Easley was with the alleged said he had the deal since Easley matter "fixed" when Adams discovered the deductions

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AURORA BANK CASE SET FOR TRIAL FRIDAY STOCK MARKET PRICES DROP Taken to Springfield on a Change of Venue AGAIN TODAY

MUCH INTEREST SHOWN

State Is Suing to Recover, Under Bond, Funds on Deposit When Bank Failed

(By The Associated Press) Springfield, Mo., July 15.-A suit by the state of Missouri to recover on the bond given by the defunct Bank of Aurora to secure state funds deposited in the bank, scheduled for trial in circuit court here Friday, today was attracting much attention. Among the defendants in the bank's bond case are M. T. Easley, cashier of the closed bank who pleaded guilty at Cassville yesterday to accepting deposits while the bank was in a failing condition and E. R. Adams, president, accused on similar charges and whose trial is set for November at Cassville. Other defendants include directors of the Bank of Aurora. The case was brought here on a change of venue.

(By The Associated Press) New York, July 15.-Wall Street was still dominated by the acute financial situation in central Europe today and nervousness increased in the stock market. Stocks broke sharply after drifting uncertainly yesterday and most of Monday, but more unsettled than stocks were the foreign exchange markets, where an abrupt decline in the pound sterling to the lowest level since 1925, was disturbing. The French franc was strong, in the face of weakness in most other currencies. After declines of one to more than six points in many prominent issues, the list stiffened a little in the afternoon and recoveries of about a point from the lowest were numerous. Rails were conspicuously weak. Issues selling off three to about six points included U. S. Steel, American Telephone and Allied Chemical. Cities Service, common, closed at

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CURTIS PLEA CONVINCING

Easley's Decision to Admit Guilt Follows Fiery Statement by Springfield Attorney For the State

The fiery opening statement made for the state by Arthur Curtis. Springfield attorney, today was widely credited with having won the plea of guilty entered in circuit court at Cassville yesterday by M. T. Easley, cashier of the closed Bank of Aurora. who confessed to bank fraud charges. Friends of Easley recalled today that throughout the opening day of his trial Monday he seemed nervous and unable to sit still. His nervousness reached a climax during Mr. Curtis' opening statement of what the state would prove. For an hour and a half Mr. Curtis talk ed. When he finished it was evident that the state had discovered great deal of fraudulent transactions in the bank which Easley had believed were still secret. Talks to Friends Easley's attorney had been prepared to explain some of the dealings charged against their client and E. R. Adams, former president of the Aurora institution who is stated to be tried at Cassville in November But they were not reads to answer the barrage of criminal charges loosed by Mr. Curtis. Before court opened for the second day of the trial yesterday morning. Easley was observed in low-voiced conversation with several friends He asked them if they thought It would be wise to plead guilty They said frankly that the case looked bad.

Two Years Probable Promised that Prosecutor Richand McPherson of Aurora would recommend a two-year prison sentence when he comes up for sentencing before Judge Emory E Smith next November, Easley

Interest turned today toward suit by the state of Missouri to TC. cover on the bond given by the Aurora bank officers to secure state deposits. This suit. against Adams and Easley and other bank officials, is scheduted for trial Friday in the Greene county circuit court. where it was brought from Lawrence county on a change of venue

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CHARGES FILED ON SALESMAN

Roscoe Matthews Accused as Guardian of Aurora Boy; Bond Is Arranged

Charged with embezzling approximately $2900 entrusted to him as guardian for a 16-year-old boy of Aurora. Roscoe Matthews of 502 South Florence avenue salesman employed by a Springfield investment company, today was free under $1500 bond pending a preliminary hearing August 28. Matthews formerly was employed in the collections department of the now closed Bank of Aurora He left the bank than year before its failure, and often has credited in banking circles with ing furnished information to the state finance department which resulted in the bank's tangled affairs first coming to light. Matthews reported to have been arrested here by Constable Alfred Pendleton of Aurora upon the charge against him in Justice D. L. Patton's court at Aurora uncle of Ward E. Newbold, Aurora youth, charged that Matthews had converted his own use approximately $2900 the residue of life insurance left the boy about 10 years ago at the time of his mother's Prosecuting Attorney R. K. McPherson of Lawrence county said today that he had filed the charge against upon an affidavit signed by Ward. After he left the Aurora bank. Matthews opened a motor agency of his own at Monett, but this venture was not successful. It has been reported that the Aurora bank about this time. abruptly foreclosed a mortgage against property owned by him, and that he then provided the tip which put state bank examiners on the trail of irregularities and fraud in the depository.

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ARE HELD IN AURORA

AURORA, Mo., March 21.-Simple funeral services, attended by relatives and intimate friends, were held here Sunday afternoon for M. T. Easley, 65, who died Friday aft. ernoon. Easley, former cashier of the defunct Bank of Aurora and former bank official at Fair Play, Mo., was to have appeared in Barry county circuit court Monday to be sentenced on plea of guilty to assenting to deposits in an insolvent instution. He also was awaiting trial in Lawrence county circuit court on charges in connection with the bank's failure. His nearest relative was his mother, Mrs. Jane Easley, 84, at whose home he died.