The Birmingham age-herald., 1913-03-19
SAYS OAKLEY APPROVED
WITHDRAW WING OF MONEY
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all the convict department funds, pay
ing to the Montgomery Savings bank in
terest on whatever money was turned
over to the former bank. In turn for
haroling the funds of the convict de-
partment, and for the interest to be paid
en- such money, the Montgomery Savings
bank had to pay a nominal rate of ex-
change for collections made by the for
mer bank. varying from 1s per cent to 1
per cent.
Large Deposit on March
One of the most sensational features
of the investigation Tuesday morning was
the statement by Mr.. Harold that Theo
Lacy on March deposited in his bank
checks and drafts aggregating s103, 3,S6S.92
At the time of making this deposit Lacy
informed Mr.. Harold that he wished him
to make collections on all of these checks
by the following Monday or Tuesday.
at which time he would draw on the bank
for the full amount of the convict de-
partment's account. According to Mr.
Harold, Lacy told him that he wished to
assemble all the currency he could gather
in order to turn it over to Treasurer
Purifoy, inasmuch as the examiner of
public accounts was going over his books
The arrangements by which Mr.. Harold
-assembled $4,000 of this money was then
explained; his bank furnishing $4,000, the
Montgomery Bank and Trust company
s5O,OO0 and the remainder being furnished
in drafts.
Went to Oakley After Seeing Lacy
Mr.. Harold said he went to see Mr..
Oakley at his home, after his conversa-
tion with Theo Lacy on Saturday, and
asked him if it were his desire that he
f,,rr 10 oil ha "a Sb
he could assemble. President Oakley told
Mr.. Hapold, according to the latter's
statement, that it was perfectly right
Mo honor Lacys check for whatever
amount he should demand, stating that
IL was his (Oakleys) wish that such be
done. Following this conversation with
President Oakley Mr.. Harold arranged
to assemble all the currency he could
gather in order to honor the department. IS
check when it was presented ON the fol-
lowing Monday or Tuesday.
The investigation in detail follows:
Harold First on Stand
The public investigation of the state
convict department began shortly after
10 o'clock, with Charles L.. Harold, pres
ident of the Montgomery Savings bank,
on the stand Mr.. Harold said the cap
ital stock of the bank was $4,000, stating
that w. A. Downing and E. Downing of
Brewton were the principal stockholders.
The stock, according to Mr.. Harold, is
apportioned as follows: d. Gillis, Brew
ton, two shares; w. A. Downing, Brew
ton, so shares; e. Downing. Brewton, 100
shares; ella D. Foushee, Brewton, so
shares; Mrs. w. A. Downing, Brewton,
SO shares; Ixalford Kreth, Montgomery
five shares; w. A. Downing, Montgomery
one share; Mrs. Eula Dawson, Marion,
three shares; r. F.. Hudson, Montgomery.
two shares; r. A. Lasseter, Montgomery,
two shares; Charles l.. Harold, Mont
gomery, one share, and a few other scat
tering shares.
Mr.. Harold testified that he was the
attorney for the bank as well as its pres
ident. He said he had been a member
of the law firm of Letcher, McCord &
Harold. but that the firm had been dis
solved.
Asked as to when the convict depart
ment had opened business relations with
the Montgomery Savings bank, Mr.. Har-
old stated that on August 80, 1912, Presi-
dent Oakley of the convict department
had deposited in the bank $17.316.47. He
said that no effort had ever been made
to secure the business of the convict
department, declaring that his relations
with Mr.. Oakley Mad been of a most
friendly nature. He said that Mr. Oak
ley carried no personal account with his
bank.
Mr.. Harold read deposit slips showing
how the convict funds had been placed
in his bank by Mr.. Oakley These de-
posit slips showed the following amounts:
August 90. 1912, s17.S16.47; September 4,
1912. 7,11S.1; December 8. 1912, SO, 1856 0S;
December Z, 1912, s27s2ti1; January II,
1918, $66lS. 40; January g. 1913, S. 11s 04; Feb
ruary 10, 1913. s1,OS7. As; March s, 1918, s1s,-
a31. IS. Total sl03.S6s. 81. The last deposit
was made by Mr.. Lacy in person, accord
ing to Mr.. Harold.
Opened Personal Account
Mr.. Harold said Mr.. Aacy opened n
personal account with the Montgomery
Savings bank in January 1913, at which
time he deposited 1896. He said that
Mr.. Lacy still had a balance in his bank
of about IS.
In reply to question from Attorney
General r. C.. Brickell Mr. Harold said
There was no definite arrangement made
by the convict department with refer
ence to drawing out funds from the bank.
| though he declared that Mr.. Oakley had
| consented to give his bank days notice
before withdrawing funds, and that when
| ever large sum of money was taken
| out deposit would be made by the
! convict department to take care of tbs