EVERYBODY
BOOST
I.OUISBUIIG
The Franklin Times
AN ADVERTISING
MEDIUM THAT
BRINGS RESULTS
A. F. JOHNSON. Editor and
The County, The State, The Union
SUBSCRIPTION ?l.SO Per Ye
VOLUMN LXD.
LOUISBURG, N. CAROLINA, FRIDAY, AUGUST 28, 1981
(EIGHT PAGES)
NUMBER
LEAS AND DAVIS
FOUND GUILTY
Luke Lea Gets 8 to 10 Years
Davis 4 to 6 Year*? Lea, Jr. Fin
ed $20,000 ? Charlet Is Acquit
ted.
Asheville, Aug. 25? Luke Lea, Ten
nessee newspaper publisher and Cor
ner United States senator, today was
xentenced to serre from six to 10
yeara In North Carolina state prison
lor defrauding the Central Bank and
Trust company here of 11,136.000.
Luke Lea, Jr., convicted along with
his father In the conspiracy trial
which has been under way here for
more than tour weeks, was fined $86,
000 after Solicitor Zob V. Nettles had
iaad? a plea for him on the grounds
of his age ? 23 ? and the fact that he
was merely doing as instructed by
his father.
Wallace B. Davis, president of the
bank, who already faces a five to
seven-year sentence in connection
with Its failure, was given four to six
years in prison.
E. P. Charlet, business associate of
ihe Leas, was acquitted by the jury
and discharged by the court.
Tried On Six Count's.
They were tried on six counts of
- conspiracy to defraud the bank and
one count of misapplication of its
funds pursuant to the conspiracy.
The Leas were convicted on four
counts, and Davis on three, but Judge
M. V. Barnhill, who presided over the
special term of Superior court called
by Governor Gardner to try them, set
aside the verdict on the count in
which the Leas alone were convicted,
u*. It charged conspiracy, of which
t-iey could not have been guilty ex
? f.ept in conjunction with an officer
of the bank. ?
rney were sentenced as ionows:
First count, charging conspiracy to
misapply $300,000 worth of the bank's
lertiticates of deposit ? Davis, two to
tt ree years; Luke Lea three to tire
years; Luke Lea, Jr., fined $10,000.
Fourth count, charging conspiracy
in misapply $100,000 more of certl
- ficates of deposit ? Davis two to three
years, to be served at the expiration
i<t the first term;. Luke Lea, three to
live years, to be served likewise;
Luke Lea, Jr., to pay Buncombe coun
ty $5,000 toward the costB of the case.
Seventh count, charging actual mis
application ? Davis four to six years,
to be served concurrently with first
two sentences; Luke Lea, 6 to 10
years to be served likewise; Luke
Lea, Jr., fined $5,000 and ordered to
pay $5,000 toward court costs.
Fifth Count Set Aside.
It was the fifth count, charging
misapplication of $100,000 worth of
cashier's checks, on which the Leas
wife convicted alone, on which the
verdict was Bet aside. Returns of "not
f.uilty" were made upon the other
counts.
Included. In the bill of particulars
. on the seventh count were loans by
the bank to Lea totalling $572,000;
city of Ashevllle notes worth $45,000
delivered to Lea for which bank nev
er received payments; $241,000 worth
of the bank's bonds delivered to him
for which the bank never received
payment, and a portion of the cash
ier's checks and certificates of deposit
mentioned in the first six counts.
Loans totaling $253,000 which had
originally been listed In the bill were
deleted by the Judge when evidence
failed to show their proceeds went
to Lea.
The story of the trial was wrapped
i' round last fall's financial collapse
:n the south when Caldwell and com
pany, Nashville banking firm with
which Lea was closely Identified, fail
ed and carried down with It banking
institutions in several states. It was
a story of how two men ? Lea and
Devis ? fighting desperately against
being griped out, combined forces to
Kid each other, only to be caught by
the crash in the midst of what state's
attorneys described as an orgy of
"frenzied finance." Evidence of gi
gantic "kiting" operations was intro
? duced, along with word of plans form*
ed by the two to organise a great
banking combine from which they
would be able to withdraw enough to
stem the tide.
Dr. Bayiies To Lo
cate in Louisburg
Dr. W. R. Baynes, a Veterinary
Sufgeon, who haa been located at
Enfield the pait seven yeara, has
moved to Louisburg and will locate
here to practice his profession In
Franklin County. Dr. Baynes Is a
graduate of State College and of Ohio
State University, and may be remem
bered by many of our people while
doing tuberculosis test work in
Franklin County for the State about
?ght years ago. Mrs. Baynes is a
daughter of Mr. and Mrs. A. 8. Sher
rid of near town.
Dr. Baynea enjoys a very enviable
reputation, among his fraternity and
the people around Bnfteld.
He will be welcomed to Louisburg,
where, no doubt, he will meet with
SUCCtM.
An American Warwick
j ? ? -fii 1
Colonel Edward M. Home, at 73,
b back at hh old trick of Preti
deat-roaking. 4 He ii now busy pro
noting Governor Roosevelt a* a
findVfatfi /
CHECKING UP
ON THE BISHOP
Nye Says Evidence Shows Cannon
Diverted Funds To Own Account.
Washington, Aug. 26.- -The Senate
campaign funds committee today
searched through .bank accounts
m olnl A fn n/1 U a q V* g-t TdM AO ^QnimVI
nit niittiiifu uy Diofiop jBiura Lannun,
when tie headed the anti-Smith com
mittee pf Virginia in 1928, and after
tracing the scores of checks, Chair
! mm Nye charges the Bishop with
transferring political funds to his per
sonal account, ? ? ? ? ? ; ? ?
"When you see this all pdt togeth
er," commented Senator Nye, a Re
publican, of North Dakota, after the
long day's examination, "it reveals
not alone the shifting of money from
uccount to account, bat it reveals ac
tual diversion of campaign money to
his personal account"
Four Virginia bankers related how
Bishop Cannon had paid off personal
notes during the 1928 campaign and
just after it. They identified checks
?cring into his personal account and
Chairman Nye said the bank records
showed that some of these were drawa
on the "political fund" maintained by
Bishop Cannon In the Continental
Trust Company of Washington.
, Changed Account
Senator Dill, Democrat, of Wash
ington, complained that Bishop Can
non had drawn $5,300 from his ac
count in the Continental Trust Com
pany, "Bishop James Cannon, Jr.,
chairman," in November, 1928, and
deposited the check to set up an ac
count "Bishop James Cannon, Jr., ex
ecutor," In Crewe, Virginia. The
Bit hop was executor of the estate
of Mrs. Mary C. Moore, who died in
1924. He later changed the ''executor"
account to a checking account.
"Why should an account carried as
executor," asked Senator mil, "be
made up from a political fund 7 We
have seen here the strange business
,of starting new accounts on defunct
affairs."
Six checks deposited by Bishop
Cannon between October IS, 1928, and
January 30, 1929, in his personal ac
count in the Ameiican National
Bank, of Riohmord, Virginia, were
identified by Perry C. Seay, vice
presidenUof the now American Bank
E.nd Trust Company, as being checks
drr?wn on the Continental Trust Com
pany, of Washington.
Senator Nye raid these checks, to
taling $9,500, were drawn from the
"political account" of Bishop Cannon
in the Washington bank.
Buys Stock
In Creamery
President R. O. Bailey, of the
Franklin Creamery, Inc., announced
i Ills week that he has sold an Interest
In the creamery to Messrs. E. A. Eng
iar and George Selby, proprietors of
ihe Quality Ice Co., and that begln
lng September 1st, they will become
actively connected with the creamery.
He also stated that both of these gen
tlemen were reared on a farm In
Maryland and gained a lot of ex
perience In the Dairy business undet
?heir fathers who were successful
dairy men. This Is considered quite
an acquisition to the Creamery and
with the present prospects it Is ex
pected that the Creamery will meet
with greater success as It grows old
er. At present it cannot supply the
demand for butter and Is urging the
renders tg bring It butter tat In any
quantity.
Tim ? I borrowed my roommate'*
patent leather slippers.
81im? Why T
Tim ? Because the patent expired on
mine.
Hit 37th Birthday |
' PreiMeat Hoover yielded to the
cameraman and ttood for thlt nboto
eapb th? day before he celebrated
i birtWay oo August Id ?
Stock Bring*
Good
Tepper Bros., of Appalachian V?..|
Purchaser For F. W. WkeleM
WwSr
The P. W. Wheless stock of men's
and ladles' furnishings being closed,
out under bankruptcy proceedings
by Mr. John C. Matthews, o f Spring
Hope, as Receiver, was sold at auc
tion on Thursday afternoon of last
week to Tepper Bros., of Appalachia,
Va.. for $7,500.00. The stock In
ventoried, Including futures }lt,
933.50. The sale was promptly ap
proved by the referee and Monday
the purchasers were busy moving
the sto<^ and fixtures to Virginia.
This is considered an exception
ally good sale by those who examin
ed or knew the stock remaining.
Jones Talks Feed
ing Prisoners
Mr. W. A. Jones, member of the
Board of Commissioners of Frank
lin County, and about as well in
formed man on general and prac
tical matters as the County can
boast of, in talking about feeding
the jail prisoners' at the County
home expressed himself strongly in
favor of it. He says they can be
fed at the County home for $4.37
a month or 14 cents a day, and a
great deal better than any individ
ual can feed them. To prove his
position he gives an example which
he says there is not a person , in
Franklin County that can consume
It in twelve months and it will be
seen he allows pretty fair prices for
his different articles of food. His
example is as follows, which is based
of course on the supplies for one
person:
2 barrels of flour .... 110.00
5 bushels of meal .... 5.00
200 pounds of meat . . 20.00
50 pounds of lard .... 6.00
24 pounds of coffee . . 2.40
100 pounds of sugar . . 5.00
Miscellaneous Items . . 5.00
ToUl $52.00
Divide this amount by twelve and
It will give $4.37 per month and
then divide that by 30 and it will
give you 14 cents a day. He says
further that the entire cost of the
meat items can be saved, because
the inmates of the County home
cannot eat the meat with which the
vegetables are seasoned therefore
it could be utilised In the diet for
the prisoners. He also takes the
position that the County has to raise
vegetables, chickens and meat and
maintain the cooking force and
utensils for the Inmates of the home
and can utilise the surplus at the
jail making a saving by usllng what
would otherwise be wasted.
Mr. Jones wants It understood he
has nothing personal towards any
one in this question, and is only
viewing the matter from a stand
point of saving money to the County.
He also thinks the County can save
$800 a year additional by doing
away with the $26 per month salary
of the Jailor. He thinks the turn
key fees are enough for this when
the Jailor Is furnished a Janitor and
is not required to live at the jail.
Mr. Jones thinks the Commission
ers can save the County around
$1100 to $1800 a year tn this one
department, by adopting his plan.
Doremtfa? Was it successful ?
gaging that ex-burglar as your chauf
feur! ?* ?
Solnldo? Rather! I've never found
? finger mark on the car yetl
ONE-THIRD BOYS
TO ATTEND
I.oulnburg College To Open 8eptem
bor Otb ? Students Enrolling Sat
isfactorily.
Or. A. D. Wilcox, President speaking
to the TIMES reporter about the Col
lege the past week dU4. "Louisburg
College open* 8^pt6ifi5vr t. ? Just two I
more weeka until the big event at
i.oui?burg College begins. In these
tiays of hard times and short money
'.l>e people ot Loulsburg and Franklin
.County have an exceptional oppor
tunity Jo educate their young men
and young women for almost nothing,
"he number ot day students already
enrolled ia twice the number enrolled
laet year, but there are tw'ce as many
yet who ought to be coming to Louls
burg College from Frankllg County.
"The introduction of a new course
for students is mechanics, civil and
ilectrical engineering, the organiza
tion of athletics for men? football,
baseball, basketball ? have made
Louisburg College attractive to all
l)jys and young men of college age.
"One third of the entire enrollment
ui' to date Is composed of young men.
'1 his shows that the boys will not be
'lonesome" at Louisburg College.
They will have one of the best dor
mitories. " They will be associated
with skilled basketball, baseball, and
ieoihall players. There_willJ?e plen
ty of pep and plenty of fun In addi
t.on to plenty ot hard work.
"Louisburg College has already r??
severed from the fear of a shut down.
The present enrollment guarantee*
its continued operation. There -tr wr
lonser any sound reaaon why the
citizens of Franklin County should
send their sons and daughters of col
. lx n n 1 1 ri a In * w
HRO lO ally uiucl Svuuui in uT3
State.
"Louisburg College can take care of
all students for two years of standard
college work and do it well. In Mu
s.c it can take care of them all for
four years of standard music work.
\i'e are discovering that there la no
Junior School and nd Music School
~n North Carolina that surpasses
Louisburg College and the Southern
Conservatory of Music. So, why pay
five times as much money ? in these
times ? to tend your young people to
schools which can not give them five
times the benefit nor any greater
benefit than they may secure at home.
"We have more than thirty Frank
lin County students. We want 75.
Come and se?us. Find ont how reas
onable are the rates." "
Recorder's Court
Capt E. F. Griffin, Prosecuting At
'orney, was back on his job Monday
?and assisted Judge Malone in the dis
position of the following docket:
Joe Mann Whelees was ordered dis
1 oharged upon payment of $25 fine and
costs.
Presley Kearney was given 60 days
on roads and ordered not to drive a
car for 90 days upon pleading nolo
contendere to a charge of operating
automobile intoxicated. The jail sen
tence was suspended upon payment of
costs good behavior.
Matilda Hayes was found guilty of
violating prohibition law, prayer for
judgment was continued.
Lontfie Bullock was fo'und not guil
ty for assault.
To Move To
New Location
The Seaboard Store Co., will move
its stock of goods to the store room
on Main street formerly occupied by
the Spot Cash Co., the coming week.
This Is by far the most conveniently
rr ranged building in this section for
Jie general merctantllto business, es
pecially in, the heatr I'hes. It was
designed and built by the Messrs
McKlnne, who are also in charge of
the Seaboard Store Co.
First Open Cotton
Qlenwood Hill, of near Hfckory
Rock, brought in the first boll of
open cbtton from the 1931 crop on
Friday morning. The boll appeared
to be full of a rather good staple.
At The Louisburg
Theatre Next Week
The following Is the program at
the Louisburg Theatre, beginning
Saturday, Aug. 29th:
-Bat. Auft. 29? Richard Arlen in
"Gun Smoke," 'with Mary Brian,
William Boyd and Eugene Pallette.
Also Chap. No. 2 "Finger Prlnta"'
and a M-G-M Comedy.
Monday and Tuesday, Aug. SO and
Sept. 1st ? Constance Bennett '' in
"Born To Lore."
Wednesday, Sept. 2nd? "A Good
Feature" Plus Mickey McGulre
(Himself) In "Mickey'* Rebellion."
Thursday and Friday, Baft Srd
and 4th? Marie Dreasler and Polly
Moran in '?Politics." J
On Way Around World
"Slim" and Anne, who started for
Tokyo, found traveling so good
they changed their plans and intend
to fly around the world, crossing
the Atlantic East to West
WOMEN'S CLUBS
HOLD MEETING
Ma. C. C. Pippin Presides, Mrs. Oli
ver Perry Made Report ? Elects
OMcci's Others Take Part In
Exercises.
The Franklin County Federation of
Women's Clubs held a meeting at the
Mills High School In Louisburg on
Saturday August 23, opening at 10:30
a. m. President Mrs. C. C. Pippin,
of Bunn,' presided over the meeting.
A report of the Curb Market .con
ducted by the Federation was on*
of the main report* and topic ol dis
cussion of the morning session. Mrs.
CVllver Perry gave the report giving
the report covering June and July.
All the women who have produce to
&ell at the market were urged to get
in touch with MIsb Anne Benson
Priest, County Home Demonstration
Agent under whose supervision the
Market is operated. It was thought
fhT discussed that if th? Clubs would
pool their produce, it could be sold
to the College upon its opening in
the near future and during its ses
sion.
A nominating committee with Mrs,
Mac Mullen as spokesman submitted
the following names for the office*
tor the Federation for the ensuing
year who were unanimously elected
by the members: Mrs. T. C. QUI,
Epsom, President: Mrs. John Mltch
iner, Mitchiners, Vice-President; Mrs.
J. W. Denton, Harris, Secretary and
Treasurer. The new president, Mrs.
T. C. Gill, appointed Mrs. M. M. Per
son as Food Chairman for. the next
year, and Mrs. John Mitchiner, Chair
man of the Program Committee with
Mrs. J. W. Strange and Mrs. J. A
"Vhite.
A group of Club Women who at
tended the Shot t Course in Raleigh
recently, gave an Interesting demon
stration,; Mrs. M. M. Person demon
strated the preparation of a Fruit
Charlotte, Mrs. Oliver, the preparation
of Cheese Biscuits, and Mrs. Jim
Mitchiner. the making of Fifty-Dollar
Cookies.
Mrs. Cornelia Morris, District
Agent, gave an Interesting talk on
North Carolina Crafts displaying
lovely rugs, baskets and pottery. Also
Miss Rose Elwood Bryan, Home
Agent in Durham County, gave an
exceedingly interesting demonstration
on the making of silhouettes. Dr. D.
T. Smlthwick spoke briefly on the im
portance of observing the Bi-Centen
ntal celebration of Washington's
birthday to be held during next year.
At noon a delicious picnic dinner
was served.
Rebel Chief Caught
Mtmt President Vuto O. HS
Mt ? ?M (AdHoa mv under w?jr,
?*??. set1 Pm^m{
SCHOOL TUIT
Ll ionrulings
SPHCIAL CHARTER SCHOOLS
CHARGE TUITION
Attorney General Gives Pretty Clear
View mm to Tuition Ctargn? Dow
NM Rnle on Tuition to Cover
Debt Service or Capital Out Lay
The State Board of Equalization,
struggling over the problem of malt
ing 115,700,000 do the work of
$20,600,000 last year In providing
?lx months school terms, breathed
a sigh of relief yesterday when It
received from Attorney General
Dennis Brummitt rulings on contest
ed portions of the 1931 school law
which will insure saving to the
State of approximately $550,000.
The Attorney General Interpreted
the law on teachers' Increment ac
cruals as applying to the present
year, thus saving the State $400,000
that would have under the old sys
tem gone into Increases of salaries
for teachers with one or more years'
experience. Between three and four
thousand teachers who will also suf
fer 10 per cent pay cuts, will be af
fected by this section of the law.
Through the Attorney General's
ruling on the law affecting disburse
ments to teachers, requiring that
teacher's vouchers be handled
through the county board instead of
the money being tuned ever to
special charter districts as formerly,
a saving to the State of aproxlmately
$150,000 Is looked for, but compli
cations will be added for the special
charter districts, most of which have
d!?erent systems of payment.
that no district participating In
State aid funds may collect addition
al tuition from children attending
six months schools.
The board yesterday continued Its
work on the budgets, giving much
attention to transportation costs.
The budgets are expected to b? com
pleted before late Saturday.
The Attorney General's ruling fol
lows in full:
"Tou submit to me certain inquir
ies which I undertake to answer as
follows:
"1. Does the law require that the
voucher in payment of the monthly
salary of the teacher employed in
a special charter district shall be
signed by the chairman and the
secretary of the county board of ed
ucation?
"Yes.
"2. Where children are trans
ferred by the county bo.ard of edu
cation from rural territory into a
special charter district.
"(a) Can the Board of trustees of
such special charter district charge
tuition or demand additional com
pensation for these children, either
from the State, the county, or the
parents of the children
"Not for the six months term.
"(b) Where such special charter
districts participate in the tax re
duction fund, can they charge tui
tion or demand additional compen
sation for the two months extended
term?
"No, except as modified by the
answer to 2 (c).
"(c) When such children coma
from local tax territory, can the
board of trustees of the special char
ter district make a demand upon the
local tax district for tuition or any
addition compensation?
"Where the children are so trans
ferred under section 29 of the
school machinery act, moneys there
tofore allotted from the tax reduc
tion fund to the particular district
may be withdrawn and allotted to
the district to which the children are
transferred. This principle in the
general law as expressed in sections
73-2 (5), 78 and 150 is naturally
tad equitably brought forward into
the 'present act with^respect to the
tax reduction fund. The present set
dobs not disturb the right to make
these readjustments and transfer of
funds from one local tax district to -
another as authorised under section
150 of the school code, where chil
dren are so transferred from such
district to another.
"(d) Can the special charter dis
trict authorities demand tuition
from any source for the ninth month
of school in the event it is operated
for that period?
"I am of the opinion that special
and other local tax districts hare the
right to demand tuition for the
ninth month where children from
without the taxing district attend
that school for this additional month.
As the State does not contribute to
the support of the school for this
ninth month, It cannot be supposed
that the General Assembly intended
that Children from non-special tax
territory may attend such school
without payment from some source
tor this seirlce.
"3. Is it the dnty of the State
Board of Equalisation to appro re
the object of general control in the
bmdget of the special charter dis
tricts?
"No. Heretofore nothing has be*?
(Continued oa Page Three)