Contemporary articles (Nov–Dec 1930) describe a heavy run on the Liberty Bank in mid-November 1930 that led directors to close and order liquidation; the state superintendent assumed charge and a receiver/inventory was later filed. The panic was triggered by failures/closures of nearby banks (Caldwell & Co., Bank of Tennessee, Holston-Union) and general 'hysteria', so the proximate cause is classified as runs prompted by other local bank failures. Dates taken from newspaper reports: run reported Nov 13–15, 1930; liquidation/closure announced Nov 13–15; receivership/inventory reported by Nov 20, 1930. OCR errors in some articles were corrected (e.g., Tennessee-Hermitage/Tennessee Hermitage National references unrelated to Liberty).
Events (3)
1.November 13, 1930Run
Cause
Local Banks
Cause Details
A cascading panic after failures/closures of nearby institutions (Bank of Tennessee, Holston-Union National, Caldwell & Co.) produced heavy withdrawals from Liberty Bank.
Measures
Police details were required to keep crowds in order; bank closed its doors and directors subsequently voted to liquidate.
Newspaper Excerpt
The run on the Liberty bank Thursday caused its doors to close yesterday and immediately thereafter the run started on the Tennessee Hermitage.
Source
newspapers
2.November 13, 1930Suspension
Cause
Local Banks
Cause Details
Directors ordered liquidation after 'recent heavy withdrawals' stemming from the local banking panic and runs on nearby banks; state superintendent assumed control for liquidation/administration.
Newspaper Excerpt
Affairs of the Liberty Bank Trust company, state institution, were in the hands of the state superintendent of banks today. The board of directors yesterday decided to liquidate.
Source
newspapers
3.November 20, 1930Receivership
Newspaper Excerpt
An inventory of the Liberty Bank Trust company which went into chancery court today ... Receivership ordered ... state deposits in Liberty Bank were reported in inventory; receivers were appointed to file an inventory (Nov. 20 reports).
Source
newspapers
Newspaper Articles (23)
1.November 15, 1930Danville Register and BeeDanville, VA
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NASHVILLE BANK WEATHERS PANIC
Checks Presented to Tennessee Hermitage National Bank Paid Promptly
NASHVILLE Tenn., Nov. Checks presented today by an everchanging line of demand and savings depositors in the Tennessee-Hermitage National Bank, following the closing of three banks in Tennessee within week, were honored in every instances. The bank closed for the day at 2 p. m., as required by clearing house rules and will open as usual tomorrow morning at o'clock, according to E. A. Lindsey, president. Mr. Lindsey announced today that the institution was prepared to remain open longer than regular hours but the rules were not suspended. At 2 o'clock line of persons extended about 100 feet from the bank's door. There was no disorder and the crowd dispersed quietly after the closing hour. Mr. Lindsey said he was unable tonight to estimate the amount of Charles C. Gilbert. a director, reported that negro who had drawn out his account was held up and robbed a short time later. woman also was reported to have lost $150 shortly after withdrawing. financial affairs continued to hold the spotlight today. A federal Lee Douglas, took over the affairs of Caldwell and Company, nationally-known banking house, and the superintendent of banks assumed charge of the Liberty Bank and Trust Company, state institution whose directors last night ordered liquidation. With funds of the state estimated by officials to total around $5,500.000 on deposit in the three closed banks, the Chemical Bank and Trust Company. of New York, the state's fiscal agent, wired Gov. Henry H. Horton an offer to place $5,000,000 credit at the state's disposal. Gov. Horton said he would not decided on the offer until after a meeting tomorrow of the funding board The Bank of Tennessee, fiscal agent and subsidiary of Caldwell and Company, went into receivership last Friday. Tuesday night the closing was announced of the Holston-Union National Bank of Knoxville, and last night the Liberty Bank and Trust Company here announced its decision to close. At Lenoir City today. M. J. Goodwin. state representative-elec issued statement advocating "a through and sweeping investigation of the f1nancial conditions of some of our state favored banks. The committee of bankers. handi- to assure crispness
(Using leftovers) 2 cups chopped cooked ham cup stale bread crumbs 1/2 teaspoon salt teaspoons paprika 2 tablespoons finely chopped ce-
4 tablespoon finely chopped onion tablespoon shopped parsley egg cup milk 2 tablespoons butter, melted Mix ingredients. Pour into greased loaf pan. Bake 30 minutes Unmold carefully. Serve warm, cut in ½ inch slices. Date Pudding.
2eggs 4 tablespoons flour teaspoon baking powder teaspoon vanilla 1-8 teaspoon salt cup chopped dates ½ cup broken nuts 2-3 cup sugar. Beat eggs and add other ingredients. Mix well Pour into greased pan. Set in pan of hot water. bake 25 minutes in moderate oven. Un. mold and cut in squares or crumble up and serve in glass cups.
2.November 15, 1930The Anniston StarAnniston, AL
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Merges With mitage National
NASHVILLE, Nov. 15. Bank of Nashville today took complete charge and control of the Tennessee-Hermitage National Bank the result of reached between the two banks and member banks of the Nashville Clearing House Association last night. The stood terrific run on the bank that lasted throughout the day Friday and the merger the two institutions was formed last night to guarantee the stability of the mitage through the strong influence of the and the backing of practically every bank in the city. With the assurance that the posits the the bank had let up this morning although hundred or more positors were waiting in line when the bank opened. The run on the Liberty Bank Thursday caused its doors close yesterday, and immediately thereafter the run started on the Tenrequiring special details of police to Keep crowd in order and to shows of violence as hundreds fought for places in the line that stretched more than city block outside the bank windows. Paul M. Davis, president American National now forming the second largest bank the South, announced the merger of the and Tenneslast night and assurthe of the stability the public institutions depositors did not continue the runs against the smaller institutions. Edward Potter. Jr., president of the Bank. bepresident of the merged incomes stitutions and will direct the operation of the beginning this morning. The banking warned formal statement last night that runs on the banks here would bring about economic disasted to the entire city. Such actions will force the banks to call loans to industry and cause the cessation of operations and the subsequent throwing of thousands out of work, Davis announced. of the two banks expected to bring close to the nancial panic that has swept Nashville with since the closing of the Bank of Tennesse on November
3.November 15, 1930The Courier NewsBlytheville, AR
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Commerce Union Takes Over Hermitage at NashToday.
NASHVILLE Tenn. Nov. Commerce Union bank Nashville today complete charge and control of the Tennessee Hermitage National bank result agreements reached tween the two banks and banks the Clearing House association Inst night. The Tennessee Hermitage stood a terrific the bank that lasted throughout Friday, and the the two Institutions formed night to guarantee the stabllof the through the strong Influence of the Commerce Union and the backing practically every bank In the The run on the Liberty bank Thursday caused doors to close yesterday and Immediately thereafter run started on the Tennessee Hermitage. special details of to the keep crowd order and to prevent shows Paul M. Davis, president of the American National bank. now formthe second largest bank in the south, announced the merger last night and Insured the public of the stability of the Institutions the public did not continue the run against the smaller institutions. The banking committee warned in statement last night that continued runs on the banks here would bring about economic disnsto the entire The the two banks expected to bring close the financial panic that has swept Nashville with increasing since the closing of the Bank of Tennessee vember
Jacksboro Bank Closes JACKSBORO TENN. Nov. County Bank and Company of Jacksboro, has decided close because has deposit in Holston Union National Bank of Knoxville which closed Winston Baird, president of the small bank, today. Depositors will be paid Monday nd Tuesday
4.November 15, 1930The Owensboro MessengerOwensboro, KY
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Nashville Bank Closes After Heavy Run Made Nashville, Tenn., Nov. 13. Affairs of the Liberty Bank Trust company, state institution, were in the hands of the state superintendent of banks today. The board of directors yesterday decided to liquidate. R. E. Donnell the president, explained that the action was taken because "due to recent heavy withdrawals, was found impossible to weather the raging financial storm." Mr. Donnell said that the officers and directors believe the stitution solvent that "with economical administration of the affairs, the depositors will be paid in full." In its statement of condition as of May 19, the bank showed resources of and liabil. ities the same. Deposits were given as The institution had paid in capital of $100,000 and surplus and undivided profits as of May 19 of $2,000.
5.November 16, 1930The Charlotte NewsCharlotte, NC
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$3,840,000 Is Missed From Bank's Assets from Page of applying them upon Its liabilitthe The disclosure climaxed two weeks of major developments in the banking circles Tennessee. which opened with committee of promibankers administer Caldwell leading vestment the South. developments Failure of the Bank of Tennessee. subsidiary. listing assets of proximately cash hand dollars and fifty cents) Failure the Holston Union of Knoxville, which Caldwell and Company held small interest. Merger the Fourth First Nashville, the American National Bank, into American National second largest Merger of the Tennessee NaNational and Tennessee Savings Bank Knoxville into the East Tennessee National. total resources. Failure and Company Fred which the replied inability obligations. Inventory has not filed. Voluntary liquidation of the Liberty Bank and Trust Company Nashville the announcement that heavy runs were responsible
6.November 16, 1930Miami News-RecordMiami, OK
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$3,840,000 Securities Missing From Bank
Tenn., Nov. Gen. Smith today that nothing of approximate$3,840,000 in securities depositby the-Bank Tennessee Sept. the demand the superinbanks, were found tendent the bank's when among receivership Cash hand Sept. the Sixth in excess of statement 000,000, was an examination the bank had closed to have been dissipated. The attorney general anthat state fund totaling were on deposit in the Bank of and the Liberty Bank Trust company, Nashville, the Holston Union National Knoxcille, closed. Smith said thorough examinabeing the affairs the Bank Tennessee for "purpose determining the methdisappearance such curities," but the examination had not progressed far enough for statement "with reference the probable result of same."
Receiver Has New Problem batinued from Page 1-A) Bank, Nashville, and the American National Bank of $85,000,000 capitalization, second largest bank in the Merger of the East Tennessee Na. tional, the City National and the East Tennessee Savings Bank at Knoxville into the East Tennessee National, total Firm Falls Failure of and Company petition of Fred Dean, creditor to which the company replied in answer admitting inability to meet its obligations. Inventory has not liquidation of the Lib erty Bank Nashville the announcement that heavy runs were Simultantous with these developments, there arose opponents of Henry H. Horton that State funds ex. cess of the legal of 25 per of paid in capital stock of any one bank had been deposited in the Bank of Tennessee and in the Holston Union Bank where more than $5.was on State Senator Elect Hal Clements former chairman of the State Repub Executive Committee nounced he would demand a Legisla tive inquiry convening of the Legislature State Representative he proposed impeachment of the Governor.
579,123 and resources of $16,300,000. Receivership Ordered Simultaneously, a considerable run started on the Liberty Bank and Trust company of Nashville, which closed two days later. Its assets were listed as $1,000,000, paid in capital of $100,000. A federal receivership for Caldwell & Co. was ordered. Lee Douglas and Rufledge Smith, were appointed receivers under bond of $50.000 each, and ordered to file an inventory. Bank closings occurred after the Caldwell crash in the nearby states of Kentucky and Arkansas. Public officials in Arkansas announced the developments were due primarily to "hysteria," while in Kentucky rumors of Caldwell control were denied by bank officials. It is estimated that in the 14 years before it went into receivership Caldwell and Co. handled between $300,000,000 and $500,000,000 in stocks and bonds. Some of the concerns it financed, or held an interest in, include: Memphis Commercial Appeal, Knoxville Journal, Union and Planters Bank of Memphis, Holston Union bank. Knoxville; Bank of Tennessee, Nashville; Missouri State Life Insurance Co., St. Louis: Southern Surety Co. of Des Moines (now of New York): Intersouthern Life Insurance Co.: Wesson Oil and Snowdrift Co.: Ciliigan-Shipley Co.
SIX BANKS CLOSE TEMPORARILY IN NORTH CAROLINA
Five Institutions Follow Central Bank & Trust Company's Action
LIBERTY INVENTORY
State Had $354,707.54 in Nashville Concern in Receivership
NOV Central Bank Trust company, largest financial Institution in tion, failed to open for business today and by noon other western North Carolina had closed their doors. Capitalized at $1,000,000, Central Bank Trust company on September had deposits of 000,000. Its was given as Other banks closing were the Biltbank, Asheville, including its branch the Oteen veterans' the First Bank Trust company of Hendersonville, the American Bank Trust company of Hendersonville, the Citizens National bank of Hendersonville, and the Bank of Lowell, of Lowell, out by the board directors of the Central Bank Trust company said the bank was closed in anticipation of heavy run. The closing of the three banks at Hendersonville left that city of approximately residents without banking facilities.
State Had Funds in Liberty NOV. An inventory of the Liberty Bank Trust company which went into chancery court today and showed deposits the state Tennessee totalling State deposits this and two other closed banks have been Attorney General Smith Four Others Close C., Four banks in western North Carolina, including the Central Bank Trust Asheville with deposits
10.November 26, 1930The TennesseanNashville, TN
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BANKS WILL PAY CHRISTMAS FUNDS
Approximately $450,000 to Be Paid 10,000 Shoppers; Dealers Rejoice
All Nashville banks, with the exception of the Liberty Bank and Trust Co., Tuesday were completing plans to deliver approximately $450,000 to more than 10,000 Christmas club members. A report from the Nashville Clearing House stated that the Christmas fund depositors the Liberty Ban will receive their money at the same time the regular savings and drawIng acocunt deposisors are paid theirs and that such action cannot possibly take place until far In 1931. The payment of the Christmas club acocunts will be big boost to business conditions throughout the city. While some of the ac- counts will be kept in savings accounts at the six principal banks, the larger portion of the $450,000, an amount reported to approximately equal to the holiday sav" Ings of last year. will pour into the channels of For the past several years the Nashville bankers have tried earnestly to teach their depositors the value of the systematic Christmas club saving plan and judging from the large sum of money to be thrown into circulation their efforts have not been wasted. From week to week throughout the year the depositors have made regular visits to the Christmas club windows, the deposits ranging from 500 up- Many people in the city now have savings accounts which were started by shares of their of Christmas saving club checks previous years.
NEW YORK BANK FAILS TO OPEN DOORS THURSDAY
Bank of United States Placed in Hands of State Department After Run.
New York that the was hands banking were posted the main office and the branches of the of the of the smaller and the regular opening time this action was taken after flurry of of lasting into the morning New Federal Reserve The has with the but cause action the States when the lower east side Present the new Had Rapid The in and panded total the with Wall only branch in the financial Notice on the door of the office New the United States. 535 Fifth (Signed) JOSEPH BRODERICK of
Large Deposits. On the basis its of September and deposits that deposits considerab duced since While total resources are amount to only one of the city's lead any The bank's officers include Singer, the and Mr. announced that though the was the New distress which closing these banks has offered claims the depositors the extent such claims, properly authenticated.
Laurens Bank Closes. Farmers bank to board of the the hands national bank was closed temporarily four aminer. but was Bryson president. The bank was capitalized
Paper Company and Bank ceiver File Action Companies.
CLAIM AGREEMENTV TED
Col. Lea Charged audylent Use of Liberty Bank Funds in Suit for $166,000. suit on file in chancery court day the celver Publishers. Inc., Nashville, holding pany for the of the MemAppeal, the Journal and Tribune company. necessary. the to the company its investigated. necessary that be named to Appeal, Inc., stock pledged to the Nashville Trust security for $1,500,000 bond Southern purby the Paper the The avers that the Southern violated its ment the trust involving the Southern the Memphis Commercial Appeal, in in said by trust. might could be hindered imperiled.
Col. Lea President. The Commercial Memphis Evening the company the Knoxville Col. Luke Les of Nashville is pres!of the Southern the the Journal and Tribon file today lishers the this the company filed by the MinnePaper company of sota the fair the property for benefit creditors. alleged has The paper 894,000 for newsprint sold the bill the Publishing against company for paper Charge Lea Used Funds Col. defendant filed yesterday by the receiver for of him against him and was that Col. had deposited of deposit had by Central and and then Asheville, to The petition the receiver. the bank. ventures own personal nancial gain and began to the (Continuedon Next Page.)
FRAUD CHARGE CALLED FALSE BY LUKE
Publisher Replies to Suit Filed By Receiver for the Liberty Bank.
NASHVILLE Luke Lea, defendant in the suit filed by Liberty Bank Trust Co. for recovery of $166,000, alleged claims of the defunct bank, denies strongly the charges of fraud and illegal nipulation of funds contained in the bill. Charges that $80,000 certificates deposit from the Central Bank & Trust Co., Asheville, N. were illegally deposited were branded as particularly false and letter to M. Preston of Chattanooga, cited in proof thereof, as follows: "All of the above certificates are regular and there are no conditions thereto except those mentioned the face of said certifiletter, signed by W. Davis, president of the Asheville Bank, said.
Lea's Statement
"Without disposition to arthe of law suit in the columns of nevertheless, feel obligation to allow directly made the of the Liberty Bank and his to go unchallenged. Lea said in formal statement. statements made in the bill, insofar as they allege any of mine, utterly Whether such honestly and fairly made, the public shall be the judge, when thru the evidence, facts shall supplant fiction.
"Dummy" Charge False" take exception the receiver's statement regarding the organization of 'fictitious or dummy corporations' with incorporators every instance being sons of financial means of any consequence and having absolutely no interest in the organization management of the affairs of such corporations. This gratutitous, unwarranted, and perhaps malicious reflection on the integrity and personnel of the various corporations which am connected; insofar as it refers corporations made defendants in this bill, is unqualifiedly false. 'With regard the allegations of the which do not charge fraudulent intent. am thoroly willing the issues be determined on the law and evidence.'
13.February 6, 1931Nashville BannerNashville, TN
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LEA'S BANKING DEALS DETAILED
Superintendent of Banks Says Publisher Was Dominating Figure.
CHARGES CHECK KITING
Liberty Bank Had State Deposits Far in Excess of Capital Just Before Failure.
EXPLAINS SUBSTITUTIONS of the connection of Col. Luke Lea Liberty Bank and Trust with Company Nashville, which closed Its doors in were given to the Legislative Investigating Committee by D. ant of Banks, in his testimony Thursday afternoon. Banking head the that heavy just to closing largely to He that days the the was $134,500 of general funds posit, but where only about was on hand when the crash
DOMIN FIGURE
After testifying that while R. Donnell the institution Luke likewise factor large sums from the He read of the he that fully entire capital owned or controlled Donnell and the latter's in which stood in the names of parties. also testified that he checks this these being Lea and the bill which Mr. Trust had filed against read Robert Committee fied that they the findings after the Mr. testified with referthe securities of up demand the State they were livered A. with the act being performed and pany one side and other, official of the not say who ordered the adjourned until 10 Friday after Robert son for about hour a half. HEARING RESUMED
The redent banks, chairman of the ertson's He said did at the He he was Memphis, was in appointment, he
Robertson said that when he saw Governor Faulkner asked the said the Governor told him and him the following White had told that would not be knew apBank was did not. did know last How much there of State on $3,580,406 of funds deposit. listed the various said he knew that the bank held about the amount the bank not find security for of agreed he knew that nothing with about his banking five years State other asked when he put know that as he said that Q. But not know that this was security when was not know that you should allow Why say this be bank unsafe? asked allowed for bond there that in the State and be as the bank was the putup denied that had the to keep these did not that to the of had this letter given stated the that these the he that could taken out taking bond could bond He was bond asked did that or make the Mr. was he its
Bank Cashier Tells Of Nashville Publisher's Alleged Bank Activities
IN CALDWELL FAILURE
NASHVILLE, Tenn., Feb. Luke Lea. publisher, soldier, political social lion, was pictured today bank cashier kiter of checks for millions and one who used his influence to obtain for bank heavy state deposits, which borrowed. and of which he failed to pay back $180,000 before the bank collapsed. In calm tones, Chappell, cashier of the broken Liberty Bank and Trust company, young wiry man, told the legislative committee state affairs from the bank failures, that his bank went out run and could not be organized because operations Col. Lea and R. E. president, who committed suicide after the crash TENSE Investigators and spectators sat glued in their seats this $280 cashier unfolded his story He he had been fired made $75 month and Donnell did not bucking against their methods. "The basis my objection Col. items,' declared. not for check for be drawn without any funds being Colonel Lea's because charged against him there funds and frequently issued against the uncollected Asked what would be the aggrethat kind of business in he said:
(Continued on Page Col. 3)
15.February 20, 1931The Herald-SunDurham, NC
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LUKE LEA ACCUSED OF KITING CHECKS
Manipulations Ran Into Millions Of Dollars A Year, Cashier Tells Committee
Colonel Luke Lea. publisher, soldier political and social lion, was pictured today by & bank cashier as witer of checks for and one who used his influence to obtain for & bank heavy state deposits, which he bornowed, and of which he failed to pay back $180,000 before the bank polcashier of the broken Liberty Bank and Trust company, & young wiry man, told the legislative committee investigating state affairs resulting from the loss of state monies in bank failures, that his bank went out on run and could not be reorganized of operations of Coinel Les and R. E Donnell, president, who committeed suicide after the crash of last November
Fired As Cashier Investigators and speculators sat glued in their seats as this $280 month cashier unfolded his story He declared he had been fired as cashier and made cashier in name only at $75 month because Colonel Lea and Mr. Donnell did not like his bucking against their methods. "The basis of my objection was Colonel Lea's items, he declared. "It wash't for check for $50,000 to be drawn without any funds being to the account. Coloned Lea's never was overdrawn because his checks were not charged against him If there were no funds and frequently cashier's checks were issued Against the uncollected funds Asked what would be the aggregate of that kind of business in a "It would be hard to estimate by the month but = would run into millions of dollars during the year "Did he ever engage in kiting checks?" asked Attorney Joe V. Willliams of counsel "That's what call kiting checks." replied the State Deposits Grew The witness said that when the bank was organized with capital stock of $100,000 it had small state funds, but that in 1929 the state depostis gradually began to grow from $15,000 up as high as $450,000. "Who procured those state deposits?"
"I understand they were procured through Colonel Lea." "Can you state that Les or anybody connected with him was the moving spirit In running those funds the bank?" have known parties from his office to ask If certain deposits came down after certain time." "Who asked that?" "Sometimes Luke Les, Jr., sometimes others,' the witness said Chappell said sometimes deposits would arrive "shortly after" conversations and the next step was to make "handsome loans' to Lea. Simultaneously with the receipt of state deposits, he said, Colonel Lea would Appear on the scene to borrow. He said he was sure Colonel Lea paid interest on the loans which constantly increased with the increase of state depostia, which was principally highway money.
merely passing through Tennessee haulloads freight on our highways, and that in other instances the safe and proper use of the roads our citizens being interfered with by the operation of vehicles long, too and moving at dangerous speed. There no doubt in my mind that we should take effective steps to protect and our highways from this sort of operation. were struck with the admitted fact that motor trucks for hire busses are now paying little or nothing the way of taxes the counties and cities through which they operate. of the cities in which hearings were held, called our attention to the fact that their streets were damaged costs by these vehicles from which they received no "Two strongly differing views were presented on the question of increased taxation for motor The truck and bus lines insisted that any additional would force out of business: the railroads that the motor lines were here to stay, but should pay additional taxes for the use of the public roads. It appeared. also, that present taxes freight trucks for much lighter than on passenger busses job the gather and consider the facts and to work out some system of taxation and regulation of these vehicles will equitable the peothat burden the the private motorists of the state by forcing them to pay more than they should for the extra wide and extra strong roads necessary carry extra large and extra heavy vehicles. and that protect the people's roads and the roads they own from abuse by operations Our task not easy. but know none greater importance before this legWe urge to favor us with information suggestion.'
PROSECUTOR AT CAPITAL DRAFTING INDICTMENTS
NASHVILLE Feb. 22 (P).-Opening the sixth week of probing by islative committee investigating state affairs found the investigators prepared drive hard down the various lanes information in the belief that it will result in indictments against some state officials and financiers. particular charge aimed at the state officials tion with the switching state tunds from bank to bank that resulted in more than $6,000,000 now being unavailable because of the failure four the banks. Violation of state banklaws the charge directed financiers actually who influenced the of the money Testimony during week to be an effort bolster these charges. Already the district torney has started work on the draft indicuments, but the information may withheld grand the committee gets farther along with Over week-end the committee virtually abandoned its plans transits inquiry Knoxville, where funds were involved the failure of the HolNational bank and the ston Trust company. The committeemen had their previous Asheville, to inquire into the late Central Bank and Trust company that has been charged before committee manipulations with the broken Liberty Bank and Trust company, of Nashville, and New York the ords Lehman who the two Tennessee bond issues $50,000,000. Final decision on the New York trip, however, has not been reached. Some members of the committee expressed the opinion that they can oball the needed information and vigorous steps that end during the next before must write preliminary report for the legislature. This preliminary report will be prepared the view furnishing the crux of the investigation on which the grand jury and the legislature may make their cases. During the first part of the week the highway department to OCcupy the center stage with its commisR. Baker, the leading actor. The commissioner, tall appointee of Gov. Henry H. Horton, opened his testimony but
ATKINSON GRANTED TIME IN LEA MORE INDICTMENT
Given Until Monday to Bring
JUDGE GIVES
NAMES
Select Another Gilbert to Attorney if Atkinson Fails.
Nashville, Tenn., July Charles Gilbert today gave attorney general Richard M. Atkinson, an extension of time until next Monday to bring conspiracy indictments against Luke Lea, Nashville publisher, and his son, Luke Lea, Jr., for transactions in the defunct, Liberty Bank and Trust company. Atkinson appealed to the court as it of people whom opened for names Judge Gilbert had in mind when he ordered the indictments. Gilbert named W. S. Chappell, cashier of the defunct bank, Briley, state highway department accountant, Cecil Sims, Nashville lawyer, representing the bank's receiver, D. Robertson, state banking superintendent, who is in charge of liquidation. He also referred Atinson to the sworn records of the Legislative Investigating Atkinson promptly formed Judge Gilbert he had conferred (Continued on page three)
ATKINSON GRANTED IN LEA MORE TIME MATTER INDICTMENT
Given Until Monday to Bring Charges.
JUDGE GIVES
NAMES
Select Another Gilbert to Attorney if Atkinson Fails.
Nashville, Tenn., Charles Gilbert today gave attorney general Richard M. Atkinson, an extentime until next Monday to bring conspiracy indictments against Luke Nashville publisher, and his son, Luke Lea, Jr., for transactions in the defunct, Liberty Bank and Trust company. Atkinson appealed to the court as It opened for names of people whom Judge Gilbert had in mind when he ordered the indictments. Gilbert named W. S. Chappell, cashier of the defunct bank, Briley, state highway department accountant, Cecil Sims, Nashville lawyer, representing the bank's receiver, D. Robertson, state banking superintendent, who is in charge of liquidation. He also referred Atinson to the sworn records of the Legislative Investigating committee. Atkinson promptly informed Judge Gilbert he had conferred (Continued on page three)
MONROE UP IN ARMS ATKINSON GRANTED OVER TAXI SLAYING TIME TO INDICT LEA of Charles Stoner. 50. Killed at Court Furnishes Names Wheel of Auto. Possible Witnesses.
Protests "Wholesale Immunity Given by Probers.
NASHVILLE July 13 Judge Charles Gilbert Monday given Richuntil Atkinson, district to draw conspiracy indictment Luke Luke Lea against connection affairs the closed Liberty Trust comorder directed the filing an indictment not later than tomorrow appearing in open court called attention judge's order structing the filing bill of indictment asked turn him information available which conspiracy charge might brought against the publisher and his
Judge Gilbert said that the court prosecutor's office an investigator but fairness" he from whom believe you get information had mind Gilbert named W Chapell Judge former cashier of the Liberty bank D superintendent of banks accountant state highway department Cecil Sims action against Leas and others connecaffairs Charlet the nessee Publishing auditor for the publishing details for that not Judge Gilbert Then referred heard the that Atkinson he had all the told the court referred the turning loose people had under granting immunity them the legiscommittee various without his Atkinson told the court Every one the Liberty bank turned loose adding that president bank subject investigation Judge Gilbert told the records agent would difficulty obtainfrom court subpoenas for Atkinson said he poenas until have got an actual Atkinson said that where the invesspent thousands dollars legislature had provided one the earnest these asked sufficient time recheck his He asked the court he had talked any witnesses but Judge replied did that said tioned only but on numerHe requested court to advise him any further he might have declaring this man being at length to these He called attention to the fact that one and the duty of the entire had fallen upon the office He ready Atkinson said on which In concluding took the recting the filing don't right of your honor enter direct to draw an he said.
Posse Seeks Joe Wright, 18. Named by Woman as Wielder of Pistol. county tonight the slaying Stoner taxi and former leadbody was found ing lonely road near here hastily posse the on road Spring City in search Joe Wright old Mandy 30 details killing Wright shot Stoner deputy sheriff under previous administration back of head when Wright prepared start motor of his Stoner and Wright had just returned the from cabin Black Oak when she had been drinking heavily all placed his pistol against Stoner's head and fired After killing Stoner Wright Mrs Plemons pulled body Stoner watch and demanded under threats of death that accompany Wright sped but near Plemons the woman wrenched and for his she jumped home There she her killing Officers moned and the body returned prepared The killing and from road olished from which town Wright said he Plemons whose this morning showed drunk said and the taxi ride that The woman held Wright lives with relatives few miles gradlast the Meigs CounHigh Decatur basket leading building When he retired from business and time law enforcement He created reputation honest fearless deputy and since widow Mary and son Buford Sweetwater
20.July 21, 1931The Commercial AppealMemphis, TN
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SUPPORTS JUDGE LEA
Atkinson Thwarted in Efforts Army Fliers Attempted to to Evade Indictment. Avoid Civilian Ship.
PICK PROSECUTOR TODAY TENNESSEAN IS VICTIM
Gilbert, on Criminal Bench, Suntained by Justice Cook, Appoint District Attorney General Pro Tem for Case. and Observer of Second Plane Able to on Hospital Grounds Hurt by Falling Ship. saying diligent investigations had failed to produce evidence substantiate such charge that was his duty both when when not
By The Associated Press. By The Associated Press. NASHVILLE, July NEWINGTON, Conn., July Court Judge Charles Gilbert United States army planes Cooling hit the tonight that he expected to appoint crashed over Newington today and district attorney general pro tem carried two men to their deaths their own and rising tomorrow draw conspiracy flight formation of six weather prevails the dictment against Col. Luke Lea planes maneuvered to avoid an Plains Luke Lea, Jr., in with civilian and Pacific states oncoming plane. the closed Liberty Bank & Trust Two other army fliers leaped to the middle Mississippi Ohio Company. safety with their parachutes. This action will follow the failure and Second Lieut. Benjamin Lowery reports of Attorney General Richard M. Hempstead, Y., formerly of Atkinson to comply with an order Ocoee, directing him to draw an indictCorp. Harold Strosnyder of WichWEATHER BUREAU. ment in his official capacity, since Temperature Kas., his observer, were burned Rainfall no private citizen had agreed to act death their ship. plunging too as prosecutor. Today was the final cloudy rapidly for them to jump, struck allowed for compliance, corner of the laundry of the CedarChallenged Authority. crest Tuberculosis Sanitarium. Atkinson challenged the crashed to earth and burst into court's authority to direct him flames. file an indictment for the grand Plane Fell Slowly. Lieut. also reserve of plane, Christi, David Spicer, escaped their fluttered earth out of control, they file indictments. able to safety Following the court's refusal their parachutes. While many revoke Atkinson sought patients the sanitarium in the supreme court descended. Lieut. today obtain writ removing the Kelley landing tree, Sergt. record to that tribunal and another Spicer becoming in telesuperseding the criminal wires. The army planes were en route Justice William L. Cook, in denyEast Hartford from Mitchel the writs, the authorField, Judge Gilbert authorize Angeles, One civilian casualty developed Atkinson prosecute ex-officio. from when Lieutenant did not determine the judge's plunging plane crashed authority control the discretion striking Petriuof the attorney general. celli, 21, of Meriden, the latter sufAnticipate No Violation. fered fractured cuts On this point the opinion said bruises. Petrucelli gone to the general suffered hospital apply for work. injury the court' ac- centered upon far the identity of civilian Parkersburg ticipated the trial judge fliers violate the action dashed straight toward their formay be taken him." mation, throwing them of their Neither Atkinson his attor- line flight and forcing them clear Felts, would comment an attempt to avoid opinion. Jack Lenox, deputy state aviation cannot be assumed that the witnessed crash. judge, before He said that flying and the him, intended by either of the collisorders direct and but could other civ. the official plane the near cloudy exercise of discretion of petitioner Said Ship Was Gray. district attorney.' Justice Cook Winnipeg. Lenox flying blue and silvHis opinion quoted auGround and that his was disthe tance the others, while level sumed that he in mind Charles Morris, state aviation limitations imposed exercise power in direct- late today said of district attor- gray neither of the of the army forfor Maximum any upon temperature degrees: Surviving army fliers early tioner, they mean or official that plane which property plunged toward them was painted humidity: a.m., 89; and silver, and no other Suffers No Injury. Maj. William "Since the petitioner has suffered rises Ryan, officer and sets his official capacity etions officer of Mitchell Field, cannot be anticipated the the trial judge will violate the law the crash, said that he had an Midnight any future action that may of the civilian pilot, but by him, the withprepared make charges. and the writs must Statements witnesses, he was During the recent legislative inplane the in THIS DATE LAST YEAR. cinity just before the temperature 93; minimum (Continued on Page Two) Jan. ficers of the flight, Major Deficiency BANS MEXICAN DIVORCE. that the army in flat when the civilian machine towards The dived, he said, The civilian plane dived. avoid Kelly's shot upward as though carried by of struck Lieutenant plane.
RECORDS CLOSED BANK PRESENTED ASHEVILLE TRIAL
Volumes of Detail Testimony Offered In Lea Hearing
AUDITOR TAKES STAND
Several Records Presented Over Objections of Defense details of transactions forming the for charges of conspiracy to defraud the now closed Central Bank and Trust Company of Asheville of more than one millon dollars were expected to be deve+ in the trial of Luke Lea, loped today Nashville publisher, and three co-defendants. The state today through R. Vance Brown, former assistant auditor of the bank as evidence several records of the closed bank over objection the defense. Brown identified of records of the bank account with the Liberty Bank Trust Company Nashville which failed last fall, as well the deposit ledger, cashier's check ledger, and check ledger records. W. Coursey, special investigator of the solicitor generals office, was to follow Brown on the stand to explain as an expert several entries the bank cords, whose validity is questioned by the
Volumnious volume of testimony regarding the manipulations of $1,300,00 in certificates of deposits, cashier's checks issued by the Central Bank to Lea compaines in which he was interested, is already befo.e the jury sitting in Buncome Court. On trial with County Superior Luke Lea. on the conspiracy to defraud charges, are his son, Luke Lea, Jr., Charlet, Nashville business associate, B. Davis, president of the and Central Bank whose failure last fall in-
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22.August 6, 1931Hope StarHope, AR
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Article Text
Probe of Bank Closing Is Opened at Nashville
NACHVILLE The county grand jury Tuesday began an investigation of the closed Liberty Bank & Trust company which Seth Walker, attorney general pro-tem, presenting witnesses before that body. Wulker was appointed prosecutor pro-tem by Judge Charles Gilbert when the regular attorney general, Richard M. Atkins. refused to comply with an order of the court that he file with the grand jury an indictment charging Colonel Luke Lea and Luke Lea. Jr., with conspiracy in con-
A Sinister Hand.
The sinister hand of the directing genius of revealed the ouster suit against Robertsuperintendent banks. not suspected that the signers of the ouster bill initiated the They have nothing gain by removal of Robertson and the appointment superintendent of more pliant nature. An indictment pending in David son County against itician for his connection with the wrecking the Liberty Bank. As receiver for the Liberty Bank devolve upon the receiver to provide evidence upon which depends conviction. furnish the The superintendent whom Horton would directed appoint, the event Robertson's ouster might withhold evidence from the criminal Doubtless he would sympathetic the individual whom owed his appointment. In order make out against Robertson it necessary to make worse case against the former head of the Bank Tennessee The ouster bill alleges the Bank Tennessee in "prohibited condition" May, alleges that the bank. and that Caldwell Company, who owned the Bank Tennessee, made loans officers and employes violation of the law.
It alleges that the bank borrowed per cent and loaned its officers directors at less alleges that Robertson negligent failing to discover that the bank did not have title to Brentwood Hall, valuable piece of estate which claimed title. sets out various and sundry claims of gross violation law by Bank Tennessee which insists that Robertson his examinations should have discovered. It alleges the bank illegally and fraudulently attempted prefer many of its depositors that the other depositors in the Bank would be secured in preference to the state of Tennessee. probably refers certain immediately to the officers certain withdrew and distributed among much as million dollars belonging to their concerns. The bill reveals desperate effort of one individual to save himself the sacrifice of friend and
Whatever may have been the lation between Robertson and those are moves oust him, he has performed his duty fatihfully since the wreckage. He has done an effort to salvage thing from
Authorities Harvard barred Aimee but they should not compelled to exercise strict guardianship their impressionable students now that the Los Angeles evangelist has an tirely husband.
