f
®h:e ^^x^nklxn
anil
(Lli:e ^cttmxinn
Published eveVy Thursday by The Franklin Press
At Franklin, North Carolina
Telephone No. 24
'^he Qeehrim fourth
VOL, LI
Number 27
BLACKBURN W. JOHNSON...
EDITOR AND PUBLISHER
Entered at the Post Office, Franklin, N. C., as second class matter
SUBSCRIPTION RATES
One Year ’ $1.50
Six Months 75
Elight Months ' $1.00
Single Copy 05
— 1
Obituary notices, cards of thanks, tributes of respect, by individuals,
lodges, churches, organizations or societies, will be regarded as ad«er
tising and inserted at regular classified advertising rates. Such notices
vi/ill be marked “adv.” in compliance with the postal regulations.
An Official Explanation Needed
^HARCiKS by Ralph W. McDonald, candidate for governor, con
cerning a debt settlement made by Don S. Elias with the Central
Hank and Irust Company, of Asheville, under the approval of the
State Banking IX-partmcnt, warrant a full and official ex])lanation
without regard to political consequences.
1 he matter involves not only the interests of depositors and other
creditors of the closed bank, but also a question as to tlie policii-s
of the .State Banking Department, There may 'be a, sufficiently good
reason fiOT approval by the banking authorities of a settlem'ent of an
itidebtedness listed at more than three-quarters of a million dollars
for less than five thousand dollars. I’ossibly the records may have
been interpreted mistakenly. In any case, the public naturally de
mands and is entitled to clarification of the whole matter.
Publication of Dr. AIcDonald’s charges in a news article in the
Raleigh News and Observer on J.une 21 brought to- that newspaper
a formal notice from the Asheville Citizen-Tinies, through Charles
A. Webb, president, and from Mr. Elias, vice president pers/onally,
a formal notice that the McDonald statement was “false, libelous and
without foundation of fact.”
Replying pu.blicly in its issue of June 28^ the Raleigh .newspaper
said its right to publish political news freely and in good faith had
been challenged. It disclaimed for its own part any intention of infer
ring collusion or political favoritism, or of insinuating that the Elias
debt settlement was responsible for the opposition of The Citizen-
'I'imes to' the candidacy of Dr. McDonald. Reporting on the findings
made by staff members, assisted by a special auditor, in an examina
tion of official records, the Raleigh newspaper said:
“In the statement of Dr, McDonald, alleging favoritism, the total in
debtedness of Don S, Elias to the Central Bank and Trust Company
was listed at $743,000. The records show that it was $755,499,06.
“In the McDonald statement, the settlement approved by the State
liankins,^ Department, was referred to as $6,000—of which $1,200 actu
ally was paid. The court records show that the settlement of the
$755,499.06 obligation was for $4,800, of which $1,500 was paid.
“The News and Observer gladly makes these corrections.
“The proposal for the settlement as outlined aibove was contained
in a letter addressed to Judge Thomas L. Johnson by Oon S. Elias
under date of November 29, 1932, Judge Johnson was a member of the
Advisory Committee on debt settlements for the Central Bank and
Trust Company, other members of which were: Gilbert T. Morris,
and J.udge Junius G. Adams.
“The firm of Johnson, Smathers and Rollins, the Johnson of the
firm being Judge Thomas L. Johnson, were attorneys for tlie peti
tioner Gurney P. Hood. Upon petition of Commissioner Hood follow-
ing approval of the proposed compromise by the Advisory Conunittce
on Debt Settlement, together with the approval of S, J, Hinsdale,
local liquidating agent, the compromise was ordered accepted by
Sujierior Court J,udge P. A, McElroy on December 23, 1933.
“While Dr. McDonald’s statement did not mention Charles A. Webb,
president of the Asheville Citizen-Times Co., his name and the name
of his wife, Mrs. Jessie C. Webb, were brought into the article in
question by A. T. Burns, liquidating agent of the Central Bank &
Trust Company who issued a statement on behalf of (iurney P. Hood
and the Banking Department denying that the DepartnK'nt had been
guilty of favoritism.
“As to Charles A, Webb and wife, the records of the Clerk of
Superior Court of Buncombe County disclose total indebtedness to the
Central Bank & T.rust Company of $61,982.68 and a compromise of
this indebtedii'css for $3,400 paid in cash.
“It is of record that the Asheville Citizen-Times Company was in
debted to the Haywood Street office of the Central Bank & Tr,ust
Company in'the amount of $12,000, November 19, 1930, the date of the
closing of the bank. The indebtedness was composed of two notes,
both of which w'ere hyjio'thecated by the Central Bank & Trust Com
pany at November 19, 1930.
“Commissioner of Banks, Gurney P. Hood, is authority for the
statement that the notes are not now among the listed assets of the
clo.S'ed bank and he believes that they have been paid in full.
“The News and Observer accordingly is glad to retract that part of
the statement by Dr. McDonald, published in The News and Ob
server in the article complained of, indicating that the Asheville-
Citizens Times benefitted by the settlements referred to as well as any
statements or inferences that these papers were influenced in support
of any iK>litical group by these settlements. For the publication of
these inferences and statements herein retracted. The News and Ob
server expresses its regret.
“Among the other inquiries in his statement. Dr. McDonald chal-
langed the Commissioner of Banks, Gurney P. Hood, to testify to the
truth or the falsity of the allegation that T. L. Johnson r'cceived more
of the depositors’ money for assisting in this transaction than the
■banks actually received on Don Elias’ account.
“The News and Observer finds as a matter of record and from
reiK>rts submitted by Gurn'Cy P. Hood, Commissioner of Banks, the fol-
TWIS 15
WONDERFUL
SPEAKER'
THAT
G-EE-
V/RATA
Sock !
G-EE-
Tyis IS
TH' LIFE 5
Oil
y I WKAT A
SEE
TVO WHOLE
DAYS FOR A
HOLIDAY
heavemly
CMAPlw —«#
lowing payments made as attorneys’ fees to the firm of Johnson,
Smathers and Rollins, Asheville, N. C.;
“November 19, 1930, to December 31, 1931, $5,110.10; January 1,
1932, to December 31, 1932, $9,468.54; January 1, 1933, to December 1,
1933, $5,142,50; January 1, 1934, to December 31, 1934, $4,870,10; a
total of $24,591.24.
Ihe annual report of Commissioner Hood for the year ended D'C-
cember 31, 1935 in regard to the Central Bank and Trust Co, was
not available for examination in the office of the Clerk of Superior
Court in Buncombe County. The records of the Bankmg Commission
m Raleigh show that a payment of $25 was made to Thomas L.
Johnson and specifically listed as for services in connection with the
Elias compromise.
The News and 0.bserver, therefore, regrets the publication of any
amount, other than the fee of $25 as allowed Thomas L, Johnson in
the Ehas case specifically, and retracts such publicatitm as an error
ot tact shown by available records,
“Item 4 among the specifications of the McDonald statement in
volves the charge, the truth or falsity of which the Banking Commis-
s.oner was challenged to avow, that ‘Don Elias and his news“r
have been and are now supporting Clyde Hoey, the machme candidate
or Governor m return for the manner in which the State Ckine'
-ney of depositors who w^e ntr'::;:
tected by the Gardner ring for the special benefit of Don Elias ’
Since the S'ettlement of the indebtedness of Don Elias wa
accepted on December 23, 1932 before it ronlH V,. , T
eithpr ”^ve been known that
was ordered
g“:™oS.'p,”s “>' ■'»
for specifically disclaims
and
or agreement
for its own part retracts any suggestion of collusion
whereby the Asheville Citizens Time, n
the supi>ort of Clyde R, Hoey four years iTte^'
retraction, likewise, 'a
Item 5 of the McDonald to inferences in
Gurney P Hood’s department harby\'eaTs that
brought ‘the influence of machine i> eked T settlements
I.er„.l..ate ,h. Cariner-Ehri.^J-Hoey SSe?”"
This newspaper does not believe in unnr-Pc
business affairs; but this is a m tt ^ P^'y'ng into private
’ a matter of general
deserves full publicity, regardless nf , concern and
r 1 , ‘^garaiess of personalities
Why did the Banking Departm.ent approve th Pr
settlements? Was it under the imnre-
obtained, or, if obtained would not b"'''"'' =0“^ not be
tively paltry payments proffered by
for their indebtedness? Were snrh i settlement
the Central Bank without security? advanced by
Muse^s Coi
F rom Seei
Deep, deep in my soul con
An everlasting, burning
To go with spring to tt
To smell the rich plo«
To watch it yield
It’s fruits.
Far, far in the north lii
Rough unhewn bark andj
That call me, call me al
To come with spring as
To the forests margin |
Today.
Rich, rich is the man tt
A j)ifece of land, his ho
That he can plant and
He can rival natiire
And raise w'hat plants
From' seed.
—Edwin C«
87 West Harris St,,
Atlanta, Ga,
My Sunny S(
My Sunny South, whci
blue—
Of hand-clasps warm ai
true—
mountain:
authorities require that somethin/be^H banking
>^te? What were bank exaintrs^!;. 2 ^oo
ments have been permitted by the ^™'lar settle-
only to debtors of the Central Bank and T r ® department, not ■
debtors of other banks throughout the stat u- ^°®P“y but also to
These rndtrn^ott
throughout the state and questions arise in the minds f
ing of insecuritv tti the con! " 1
Banking Department eve^thT ^r aJ, “f
the full confidence of the publ ' itself '
satisfactorily answ^ered. '
Charges such as these ro
accusations of “mud-slingin.’-T dismissed
of li^^el action against new^^p ^^^Donald""^'
This newsiiatiPr -nipht , ° enough
thpsp • ’ ‘'^'^t^ot enjoy
‘hese questions have been
With mere
newspaper is might; to print^’thm^
andidate for governor who h‘s the ^orth Ca oH
his nature. And, too., we are glahh°“T
*na has a
^ situation of
of printing the np Reliable” still
^ ^‘thout fear or
I love your
vales;
Mongio'lias sweet, and »
I love your cotton-feW
Your blossom-soented,'
When .evening shadows
I hear again a bob-"’!'
Though through the .
grown apart.
You’re still enshrined
heart.
Oft in my dearms I
And from my heart g*
“Yes, Dixie-land, with s
All that they say of f
—Floren
Junction City, Calif-
TRAIN CRUSHES AS
Orange. Va, —So ^
watching .a basehal
si'tting on a railroad
Lohr didn’t hear the
until it was upon 1»W'
in tirne 1o save hi®*
arm was crushed.
KILLS FOX WITH H
Kinston, N,
tered her yard a*'
chicken, Mrs. D, T. J®
be'd ,up a hoe and
killing it. ,