Chatham Savings Bank (Chatham, VA)

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NEW DEVELOPMENTS IN CASE JONES REVOLT SPREADS AZORES JURY PROBES TO CHARGES MADE BLOCKADE Caswell Woman, 104, III DURING TRIAL For First Time In Life ORGANIZE NEW ESTABLISHED; Special Inquiry Into Slay(Special to The Bee) CARTER April ing of Malinda Caswell coun- PORTS man oldest living person this section, seriously home Whose Death, Negro

Receivers Make No Comment Relative to Depositors' Proposed Action

Receivers for the Chatham Savings bank had no make today when asked statement relative to the movement launched by its depositors to buy bank with purpose of reorganizing The receivers have received copies of the petition which directed the judge of Pittsylvania Circuit court but until they have studied they will have nothing to say. Some comment. however, may made during the course of next week. Ninety cent of the depositors per are represented in the petition to the court which signed chairman the committee 30 which has been endeavoring to store some order out of an admittedchaotic condition which bank's affairs were found after it had suspended operations committee in its petition alleges on behalf of the people repfor the assets of the resents pay Chatham bank such reasonas may ascertained sum and to all parties in interjust est after proper appraisal the assets by the court. provided the sum ascertained not excess the maximum approved the banking division of the state commission of Virginia The petition states that appears from the in that the Chatham Savings bank the beneficiary large number deeds of trust on real estate; that (Please turn page col.

Portuguese Insurrection Movement Grows More Serious With Islands Involved

LISBON Portugal, April decree establishing blockade and closing the ports the islands Sao Miguel and Terceira in the Azores published today by the Portuguese government. The decree was the first official admission that the revolt which began had ago apread the other eastern Atlantic Archipelago owned by Portugal The principal city in Bao largest of the Azores, Ponta gada, while Angra do capital of the Amores. the principal city on Terceira The garrisons both places Thursday sen: Lisbon that they severing lations with the government. The expeditionary force sent the Funchal Porto the islands of the group and about miles of Madeira. which Funchal They establishing there for the campaign Funchal Colonel ficer the garrison on the Island Fayal, has reported the observed trenches being dug places around Funchal and 8.5 centimeter guns being the hillsides about city early this said he believed the island to almost Noronha was aboard the steamer Araujo. which detained by the rebels when put in there Some cattle and in its con. fiscated before the ship was allowed to proceed. Colonel escaped by below deck most of the time the vessel port

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APPROVE PLANS

County Resolution Giving Official K.

Approval of the county Board Supervisors was the ganization put forward by positors defunct Savings Bank meeting of the in Chatham The board adopted resolution formally placing record proving plan to bank authorizing the county torney cooperate organielected by the positors last April. The follows in cember, 1930, the Chatham Savings Bank suspended payment doors closed by entered the State Virginia and subsequently ceivers appointed for bank are now engaged ministering the assets thereof under the court: and Whereas, time said pension the the bank was the board supervisors Pittsylvania county. approximately the sum hundred thousand dollars: and Whereas, the time of said suspension, board held security payment of debtedness various and sundry gotiable of various and sundry and chose actions, stocks and bonds, and ceded preferencial debt. secured collateral held in due course: Whereas, most of said still owing unpaid and the board holds collateral securing the same: and Whereas, the ninth day of committee depositors bank filed petiin the circu(s) gourt of Pittsylcounty forth plan which they organize medium the bank assets the the (Please Turn

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Bank Receivers To Get Hearing

The News N. E. Turnbull. of Lunenburg county, sitthe Pittsylvania circuit court at Chatham, heard further testimony in support petition filed by depositors the Chatham Savings bank which failed several months ago and which seeks permission for The court set Aug. 15 as the date which receivers appointed liquidate the bank, William H. Car. ter E. Clement, will be called to testify.

The News Leader covers Richmond like

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Round About the Old Dominion

Covington Data Soon Available Covington. industrial data and information on Covington as a site for industrial location will soon be in the files of industrial engineers of the entire Atlantic seaboard and west to Chicago, according to policy now being put into effect by the Covington Chamber of Commerce. Industrial engineering firms that select their own sites will be supplied with this information in full, according to B. C. Moomaw, secretary of the Covington Chamber of Commerce.

Named Forest Ranger. Lynchburg. -Appointment of L. R Smith as forest ranger of Glenwood district on Natural Bridge national for- est was announced Monday by H. M. Sears, forest supervisor. Mr. Smith succeeds Clare Carr, who has been transferred to Alleghany national forest in Pennsylvania, For three years Mr. Smith has been in charge of the Cheat River district of Monongahela national forest. Prior to then he served at Pisgah national forest, North Carolina, and he has also worked in western forests He is graduate of Pennsylvania State Forest School. ward. Miss Bickerman's head struck the top of the car.

Bank Receivers to Testify. Danville.-Judge N. E. Turnbull, of Lunenburg county, sitting the Pittsylvania circuit court at Chatham. heard further testimony in support of petition filed by depositors of the Chatham Savings bank which failed several months ago and which seeks permission for reorganization. The court set August 15 as the date on which receivers appointed to liquidate Waynesboro Girl Sustains Fracture. the bank, William H. Carter and N. E. Staunton.- Miss Mary Bickerman, 25, Clement, will be called to teacify. of Waynesboro, is in Staunton hos- pital where it was discovered she is Seek Beetle in Augusta, suffering from fractured skull. SunStaunton- scouts of the United day afternoon Miss Bickerman was returning in an automobile from Massa- States Department of Agriculture, plant netta Springs, where she had attended quarantine and control administration, the meeting as member of picnic in cooperation with the appropriate authorities of the state of Virginia, beparty of friends from Waynesboro. Between Harrisonburg and Staunton, it gan scouting operations for the Japwas said, the machine hi. hip in the nese bectle in Staunton on August One crew of foreman and three scouts pike, the occupants being thrown for-

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Chatham Bank Suit Moved To State Court

An opinion handed down Judge Henry Clay McDowell United States district court remand to Pittsylof county against Chatham Savings and the United Fidelity and GuarInc. Ramsey recover which alleged represented public moneys deposit when Chatham Savings Bank was ordered closed December an out of state concern the fidelity the federal for In returning the circuit Judge that only the fidelity company was entitled ask for hearing in federal court and since the other defendants must be heard the same time have tried in circuit court.

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Chatham Bank Suit Remanded

(Special to The News Leader.)Judge H. C. McDowell in the federal district court here has remanded the suit of W. E. Ramsey, treasurer of the county of Pittsylvania, against the Chatham Savings Bank, its ceivers. Carter Clements the United States Fidelity and Guaranty Company back to Pittsylvania county for trial. The suit was moved here by fidelity company. Baltimore corporation, but Judge held that the company was the only which had the right of removal, as the case would have to be together would have to go back to court

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rico County Court.

Charging that the Virginia Klan owes the sum $2,900, which rowed for the alleged purpose defeating the Short Ballot in 1928 and the candidacy Alfred Smith in the same year. receivers for the funct institution have instituted suit Henrico Circuit Court against Baskin, who said to have the Grand Dragon of the organization, for the recovery of the amounts the bank. The suit was to have been heard before said that an regarding the filing date on the pers made by court officer interfered maturity, but refiled and come up for hearing October that the first that Klan sued Virginia, claimed that the money from the bank the distinct that not the Grand Dragon for the the loan but that the knights and jointly ble This taken judgment confessed the members the legal will have and their to known In the been filed the court the suit conthem subject the note running dat October this also note dorsed by Baskin, while the which for $1,000. and payable the the Chatham Savings Bank receivers, William Carter and Clement thus claim that the Ku Klux Klan owes the bank of $2.900 with certain interest charges. While the notes in question bear the date the year 1930 two years after the ballot and presidential by the ceivers that funds for the purpose charged borrowed that (Please turn to page col.

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RECEIVERS VA. KLAN

Action Charges Ku Klux Borrowed $2,900 to Defeat Al Smith been instituted against Virginia Ku Klux Klan by eeivers for the defunct Chatham Savings Bank, who charge that the organization owes them $2,900 borpurpose of defeating ballot in and the canSmith for the presidency The suit, which was filed in the Henrico county court named Baskin, said to have been the Grand Dragon the Klan the time. The action seeks to recover the money which the claim owed the defunct bank by the Virginia Klan. The suit was to have been heard before said that error regarding the filing date the made by court officer interfered with its maturity, but has been refiled and will come for hearing on October 5th. believed that the first time that the Klan has been sued it is claimed that the Virginia, borrowed from the bank money with the distinct understanding that not only the Grand Dragon liable for the repayment of the but that the knights themselves were to severally jointly liable. This is taken mean that unless judgment confessed in the Henrico circuit court members of the organization under legal necessity will have to be unmasked and their Identity will have to become known. In the notice of motion which have been filed in the court the suit conthree notes. One of them dated September 17, 1930, for subject to credit of $100, the note running ninety days; another dated. October 1930, for this being ninety-day note and dorsed by Baskin, trustee, while the third note, which is similar, also for and payable to the order of the Chatham Savings Bank. The receivers. William N. Carter and Clement thus claim that the Ku Klux Klan owes the bank the of $2,900 with certain interest

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$50,000 Public Fund Is Paid In Pittsylvania

Chatham Savings Bank Receivers Hand Check to Commonwealth Attorney

[Special to The Times-Dispatch.] CHATHAM, April 2-A check for $50,000 was handed to Joseph Whitehead Jr., Commonwealth's attorney of Pittsylvania County, by William H. Carter and N. E. Clement, receivers for the Chatham Savings Bank, and was immediately passed on to County Treasurer E. Terry, who marked it for early deposit to the county's credit. The check represented settlement of the county's sinking fund account with the receivers of the bank and will be deposited as soon as an order entered by the Circuit Court of the county approving the transaction. The county had already received $60,000 from the defunct bank on this account, and was due a balance of $62,000.

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BANK RECEIVERS ARE

Judge Leigh Rules First National Bank Must Deliver Collateral

Judge Henry Leigh corporation opinion claring that the National Bank Danville, holder note the former Chatham Savings Bank $20,000 secured by the bank's not entitled preferential that the collaeral must be livered to Clement and Carter, of the bank. The opinion effect judgment favor the the former Chatham bank the chancery suit to the che National Bank here are ditor. Judge Leigh has delivered his counsel the case, the decree has not and entered. The First National Bank made the Chatham Savings through its former about year its the suit clear the of the and the signed by president. Counse. for the use of Chatham Savings collateral for the that not and proper that they entitled recover for distribution among the Judge Leigh's this Unless the opinion the the First will take its among the which closed doors 1931. The will impor tant bearing law coporate management in Virginia.

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Judge Leigh Holds Bank Head Must Secure Directors' Before Pledging Its Assets

First National Is Not A Preferred Creditor Of Chatham Savings Bank; Rules Receivers Can Recover Collateral Pledged By Reid.

Judge Henry Leigh of Corporation decree holdReid, former president of the Chatham Savings Bank not negotiate loan 20,000 from the First NaBan's Danville for the benefit of the because the loan was by the of directhe bank, and the First Bank alike with creditors the closed decree judgment Clement and W. Carter, ceivers the Chatham Savings pledged for entitles them to that has been collected by the First First National Bank from pledged, aggregating John Carter and Rutledge Clement represented the receivers the bank in the chancery suit and Harris, and Brown represented First National Bank. Judgment was suspended the court for sixty days pending appeal to the Virginia Supreme Court of Appeals noted the defendant. suspending the was given the defendant. Chatham Savings Bank closed in October, Counsel the receivers of the Chatham Savings Bank based their case contention that neither legal sound public policy permit the assets bank, pledged without the consent the board was sustained the making the pledging the collateral. In Judge Leigh point. that the the $20,000 loan made by the presiclosed had "enured the advantage of depositors creditors of the bank" and that the First Bank engeneral After the First National Bank credit for paid creditors the Savings Bank, the dethere balance due the from the First of ber 17, Counsel the First National that ferred "novel impresVirginia and the the Virginia Supreme Court of peals will be wide interest. The follows: appearing the Court that Edwin B. Reid, of the ChatBank, not empowered to the loan $20,000 from the nor to pledge the belonging said Chatham Savings Bank to secure the said loan in compliance with the and requirements Section 50 the Virginia Banking Act, and the the opinion pledge were therefore illegal, doth decide and adjudge. And further appearing to the Court that the Chatham Savings Bank received the proceeds of said loan derived benefits therefrom which enured to advantage the said bank, Court being the opinion that defendant should share general creditor of the Chatham Savings Bank in sum for money had and ceived said Chatham Savings Bank, doth adjudge and declare. And further appearing to the Court that defendant collected various notes illegally pledged to it, aggregating the interest collectfrom the makers, the sum of $13,767.20, and that defendant paid on June 23rd. 1931, of $177.35 in cash; and that all the other pledged have been by complainants, the Court of the opinion and doth adjudge that are entitled and have the defendant the total the together with Interest the various from the dates their subject credit $177.35 paid And appearing to the Court that the to the Bank for money on deposit with of the the sum of which sum off against claim aforesaid against Complainants, leaving probable claim in favor of defendant gen-

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PRIOR CLAIM

Decree in Court Renders With ChatLitigation ham Bank Receivers

The First National Bank cannot be creditor the viewed preferred Chatham Savings Bank, Judge Leigh held yesterday the corporation court handing down portant decree the case pending several weeks decision rendered in the The the bank against the the Chatham Savings receivers relative loan of $20,000 Bank made the Chatham bank from the Danville institution. Ahe court held that Edwin the Chatham bank had president right to negotiate the loan legal because was not approved by the directors the Chatham bank and of the Danville institution must that share alike other creditors and cannot given preferred status. Judge Leigh decree It the Court that appearing Reid, President of the Chatham Savings Bank, not empowered to of $20,000 negotiate nor to pledge from the collateral belonging said Chatthe ham Savings Bank secure ment of said loan compliance the and requirements Section 50 the Virginia Banking Act, Court being the (Please turn Page Col. 2.) the truck third negro who received parliamentary officials after the crash. The Hardran away in anxious effort to hurry ings taken the hospital and tion new government, treated for minor injuries but the year. the police could reach them to Leaders stunned the crushterview them they had left. the cabinet by ng was that the truck center majority surned developed some defect Sarraut his which made it impossible to control few program given him its support on

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HEAVY DOCKET FOR VIRGINIA'S COURT

Special Interest Centers in Test of Milk Control Law's Validity

RICHMOND. Va., Sept. 29. (AP)-A docket of eleven commonwealths cases, 75 cases on the argument docket and one corporation commission case, in addition to others which may be placed on the docket as carry-overs from the Staunton term concluded this week will face the state supreme court of appeals at its session opening here on November 7. Special interest will attach to the decision which may be given in the case involving a test of the constitutionality of the state milk control act, which was argued on the final day of the Staunton term. Among the commonwealth's cases docketed for consideration here are two murder cases, one appealed from the corporation court of Lynchburg and the other from Petersburg hustings court The Lynchburg case is that of Melvin W. Adams, young white man appealing from, conviction and eight year prison term imposed for the murder of Archie The Petersburg appellant is T. J. Hamilton, convicted of the murder of Leonard Morgan. Morgan's wife also was charged with his death after an autopsy revealed arsenic in his remains and it was discovered that the widow had collected insurance held on him and used part of the money to pay to T. J. Hamilton, from whom she had bought an automobile. Among the civil cases two from Danville hold especial interest. One is the city's appeal from a verdict allowing the Forest Hills Development Corporation $49,810.55 and accrued interest on a claim for $102,178.47 for improvements made to property which the city later acquired in annexation proceedings. The other case is the appeal of the First National Bank of Danville, which lost in a suit brought by Clement and Carter, receivers for the Chatham Savings Bank. The receivers were sustained in their contention that the Danville bank should return to them proceeds obtained from the sale of collateral given to secure a $20,000 note which, the receivers claimed, was illegally made since the directors of the now defunct bank did not authorize its president to negotiate the loan.