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HENNES SCORES PRESTON AFTER PROBE REQUEST Calls St. Joseph Supervisor "Liar" and Refuses Apology (Continued from page 1) of these rumors. If you don't I'll call you liar to your face," Supervisor Hennes demanded warmly. "I can't do that," protested Supervisor Preston. "No, and why? Because you're the one who started the rumors,' accused Supervisor Hennes. "No didn't,' Preston insisted. "I think you did. You're nothing but a trouble maker here, anyway.' Preston Warns Hennes "Maybe am trouble maker, and I'm going to continue to make trouam watching you, and if you anything over this board, it will be over head,". Preston returned heatedly. "There hasn't been anything put over this board by me, and can watch me all you please," Hennes replied. Chairman Katzbach stopped the battle here. During the morning session yesterday, Supervisor Preston urged the of investigate why $436,000 of the $529,417 in county cash tied up in banks closed by the moratorium, was in the Farmers & Merchants bank. He said he had heard lot of ugly rumors that the judiciary committee was dominated over by some person, and that one of the of the judiciary committee was heavily obligated to the Pressed for "facts". he admitted what he had heard was only "rumor and hearsay. Supervisor Hennes told the board the judiciary had followed the dictates of the board in distributing the county's funds in he various banks on the basis of capital stock and surplus, and gave the & bank the floating account for checking of $100,000 Explains Policy He explained that the county had been piling up an account in the bank to meet approximately $318,000 worth bonds and interest due on March 15 and April because the other banks objected to having deposits of county funds made and then drawn out within few weeks. The governor's bank holiday followed the national bank holiday closed the Farmers & Merchants bank before the bonds and interest were paid. The discussion grew out of suggestion from Supervisor John Warman of Watervliet township, chairman of the finance committee, that the county lease or purchase one of the closed bank buildings, and move the treasurer's office out of the courthouse and make him custodian of all tax money collected. He suggested such an institution could handle all county, township, school and city funds, and the cost of operation split on the basis of the yearly deposits of each taxing unit. The county, he said, could join the clearing house association to enable the clearing of checks. Such system, he suggested, would protect the county from further bank closings. Harvey Explains Attorney W. P. Harvey, attorney for the Farmers and Merchants bank, rose in defense of that institution before the board this morning, and denied had influenced the judiciary committee in depositing county funds "I will say this, in view of statements which have been made, that upon my honor as an attorney and citizen. that never at any time has the judiciary committee called upon me for advice as to where it should place the county funds. did draw up the resolution for the committee apportioning the funds according to capital and surplus after it was decided this should be done. "Had been consulted about where to put the county's money, however, should not have hesitated to advise putting the money in the M. bank "I exercised no power or influence oover appreciate the compliment Mr. Preston pays me,
