Click image to open full size in new tab
Article Text
Both Sides Grooming for Fight To Get Control of Government
NASHVILLE, May forces and their opponents, headed Congressman Edward H. Crump, of Memphis, are grooming for fight finish for control of the government. May the report of its commitlegislature reconvenes tee that four months probing affairs, with reconvening the be earnest. The investigation resulted from the tie-up nearly $7,000,000 of state funds in administrathat failed. Supporters Gov. Henry H. Horton, anticipating drive by the Memphis leader support his intention an effort impeach the executive, have been busy strengthening their lines for the political reports today that the next would come from the Monday, the election meets to appoint election for in the state. The named two ago Crump Col. Luke administration political leader, compromised their differences. reports indicated that the administration expected at least be named to the board, giving the administration It known that effort be made by the "antis" to pass legislation the senate speaker office governor house charges, the that the governor under pending trial. Tennessee not have Should the house prefer articles of impeachment, both sides agreed the votes needed out of the the senate to oust execuive are doubtful this stage. Administration forces claim that the house not vote impeachment charges, although they concede close vote. bonds to the failure of the banks. the opinion that passed Horton affecting the fiscal polof the state was organized raid heard Nolan testithat Baker certain highway funas prevent republican governor from learning the deposits banks. Col the treasurer Baker and highway official sent several the Nolan The treasurer said he refused. Nolan Refused Hold Vouchers for Feb. state treasurer was again the camouflaging of state deposits in banks which he charged to Commissioner Baker, gave in detail the events conference Col. Lea's home before the election. He also told tempts Baker totaling until Briley. chief accountant the highway TreasNolan that he took the vouchtreasurer's office upon inand them. Caldwell, the insurance and banking department, failed records funds through office and that were the holes, desks, the office described by Mr. being Assessor Joe McCord, Davidson county, and deputy, testified that officials the Bank and Caldwell admitted that stitutions when turns filed. The officials financial requested nothing about the county ficials testified Feb. Hallum Goodloe, chief deputy in told the Knoxsuperior drawn against the Holston National bank for days before the institucollapsed. but them. some bonds, the the which the called veteran that he was assured Ramsey was wrong within few days failed doors. state impression' funding board resolution Aug. 1930. tended transfer all the bridge funds Tennessee said. action when Nolan drafted the resolution.
Liberty Bank Held Checks for Col. Feb. former cashier the defunct Liberty bank. told that President Donnell permitted Col. Luke Lea's "cold" checks, for much held the bank items. He also ing $80,000 worth of certificates of posit which Col. secured from the Central Bank Trust company, them his credit certificates, with. placing the Central bank honor the futile, related. Col. and his activities reached Liberty Col. secure loan same amount was deposited, said. Feb. Baker turned the witness blamed taking state's Caldwell the efforts transfer after the but Nolan backed up his ment. billions the money shifted banks quest committee. stitutions being members which securiwhen of fact they were the Col. departin discussing this Tennessee Road Buildmagazine, Tennessee Road Builders' when Baker became the learned the highway chief. Advertising tractors road building equipment dealers was freely in magazine from the derived from that Baker the notes executed upon the publicatold that Treasurer Nolan called conference against telling of the conference at Col. Lea's home. Carter Describes Methods Used By Rogers Caldwell. Feb. Carter, the lated business methods employed Rogers Caldwell financial Interoffice letters showing how Caldwell had been warned from time that he practices hypothecating funds, breaking agreements breaches, Caldwell with colonel called the before the examiners came on Sept. 25 advised Mr. Carter charge Rogers "gyped" Louispublisher banker, the deal. Brown, said, traded Caldwell without even amining balance sheet Caldwell After discovering the truth about transaction nullithe Caldcomplete the harder get paper Carter said opinion that understanding reached Lehman New and Rogers Caldwell, bankers, cashier the Bank he merely machine business Rarely there trust agreement made Caldwell Bank collatwhich ordered the bank Sept. Had the attempt collect Baker drew transfer money from the Bank have met the deRogers Caldwell was testified Cashier Goodloe building he house, Co., guarrelated attempts money made the Caldwell firms. the relation the Bank Tennessee Caldwell They entities, the ran them both and all policies from his Donovan testified. March appearing the second time, told the committee the syndicate money sale and deals, denied there Lehman Bros Caldwell Co. in the last March made Donovan Rogers Caldwell had short him bank which moved to Knoxville.
Trust Company Collapse Blamed Caldwell. March 6-Curtis Allen, former trust officer the Holston Trust company, made company Ramsey, Col. Luke and Rogers Caldwell. He blamed the collapse deals. said Ramsey more attention poliplained the trust The bidden tional bank records by federal March Fowler, attorney for federal threatened the After the adjourned meet Nashville following The Knox jury in afterpoon Ramsey the Trust company $250,000 March committee suspendpreliminary March report filed with legislature Luke Rogers Caldwell blamed critical conditions state. extended granted finish the commission, charged Horton swamp lands Reelfoot from Tom political friend testified, to not permit also testified spend $90,000 of highway funds an injunction from the state The of the Mr. Pardue tified. March Hall, former commissioner finance and member the commisPardue's testimony and Doty told meeting which which Tom Morris booster property. The governor invited the
Special Auditor's Statement That Surface Only Sratched Among Outstanding Results of Four Months of without disclosing the purpose meeting, they said. learning what Morris had mind, refused they charged brought his finance and taxation department said that him when asked for March EducaHarned all by the committee appear. The discuss advisability adopting textbooks for the next years. Commissioner testithe commission. He admitted kept headquarters summer Horton's from sent ganda to teachers over the state.
State Highway Funds Carried by March Briley related that Luke Lea, secretary, porters millions the state the streets Nashville the Commissioner Baker, Briley testified, him many times speed the various ahead other order date the Briley state employe the state The employe pay the the probe started. record showed. March Murrell, driving the the state the last mary. testimony sioner Baker examined concerning kyrock was reluctant about the road material department. Baker told the Lea roads questions tivities testiprinting with which kinsman Rogers contract for printing state They funding sold them, the April Davis, president of the American National Asheville, member the Caldthe deals, tified that these bonds result tween Lehman Both offered bids, through certain withdrew the Caldwell, Davis charged state keep contract. from syndibanks placed money banks actually which was appropriated, testified. deputy fire Gov. Horton pardoned Frank county poolroom offers furnish governor with votes primary campaign April described was for certain the O'Connell. West auditor duced check which certain material used state department. April testified Gov. Horbecause Lea Lea rectly the missing him, Bass said. Sheridan. material corrobothe day before the Grover Keaton. Parker dubbed Sheridan and again, related tried Lea get certain brand cement. Peay's and told the colonel Lea became said the witness said. Campaign funds would be forthcoming used, Col. was quoted as telling Commissioner April Highway Commissioner Berry Col. caused him testified had doubted Refusal build road college in West bridge the river Kelley's less Berry been the immediate his missal. Horton, Col. Berry wanted projects built standing them political campaigns. April timony feed the mills vored by
Advertised in Tennessean To Get State April Riddle, Jr., former truck salesman, told committee he entered into contract with Luke Lea, in which Riddle's would advertise the Nashville Tennessean to state. Lea failed Riddle's company refused for the advertisOther dealers concerning their state April president of the Negro Universal Insurance Memphis. testified that paid James the actuary in insurance banking department, work Commissioner Cash, told attempted from the state for his but failed. Fred Bryan. Chattanooga contractor, said contractors had feeling that kyrock they would have time their the highway department. April Klein, southern manager company, Frank the Signal Mountain Portland company, described by president Road sociation, fund the purpose retaining Commissioner office. Patton, proached them scription fund, which fused. purpose promote proposed road bond issue, April O'Connell told the committee that Albert Caldwell fees for acting for an which he, had diction. auditor Commissioner Caldwell cashed checks, the which longed the state, and converted the money When the ditors chief paid money the April former Insurance testified that Caldwell forced him to agree that Caldshould the Also, belief that missioner would company, Harris he the $10,000 fee for trustee. April Washburn appeared defend his collection fees from the Universal Insurance April Neal, former plained him day commissioner not looking after the politiinterests. said lifelong friend the governor, but when suggested that he that think Bass was later fired, Dr. Neal said.
Albert Caldwell Admits Irregularities. April 27-Commissioner Caldwell admitted several irregularities in office to the committee. He said he cashed checks belonging to the state, allowed conhad failed to collect by insurance companies. he had right to collect the fee from the company acted trustee. April former state ployes testified payroll foreman, Mims, bought and secured the the Many payrolls admitted by the employes, whom was immunity. orders pad the testified forged names to checks, declared read the other high state officials had ignored having printing done. auditor suffered financial loss the failure the follow the erning printing of state docuApril Brown. Warren and Cabbel, Nashville dealers, testified purchasing department ignored lower prices on standard almost Rubthe which higher price. May Coile, head the division, highway department, he ordered tires cut resold. Tires exhibited the hearing which had the the Cofle tires sold junk dealers the bead May H. O'Connell read several reports the favored dealers with 76 per cent. the business. former Genpaid commission on tires sell the state. The probe was closed several reports from highway and purchasing departments.
