The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1915-02-17
FORGED NOTES
IN THE DEFUNCT
Central City Bank Are
Discovered.
PRESIDENT GREGORY In JAIL
At Greenyille and Declines
To Arrange Bond-N0
Securities Seen.
A CHANGE OF SENTIMENT NOW

~
Greenville, Ky, Feb, 12.-Eli II.
Gregory, president of the Central
City Deposit Bank. of Central City.
Ky, which was ordered closed re-
f, Gently because of certain irregular
tiles in its affairs, surrendered to
the authorities at Greenville to-day.
A warrant had been issued for his
arrest at the instance of the State
Banking Commissioner last night on
the charge of making a false state
ment to the banking department.
1t was proposed to take him be-
fore the court and arrange for bond,
but Mr.. Gregory refused to permit
this action and is in jail
He will probably remain in jail
until the next term of the Mullen
berg Circuit Court. which convenes
April 10.
Sensations in the Central City
bank failure came thick and fast to-
day.
1t developed that two notes bear
ing the alleged signature OF Mayor
C. W.. Wells, of Central City. We're
forgeries. One was for $3.50, the
other for $3.50.
1t is declared that there is other
forged paper in the bank, the whole
amounting to $4,000 or more.
II also developed that the Central
City school fund, amounting to So
900, is all gene,as Eli Gregory was
the treasurer OF the school fund. He
mad given no bond.
It. is known that one depositoT
placed 81. O31 in the bank on Friday
preceding the day of the closing OF
the bank. 1t is also said tina, anoth-
er deposit Of at least s1.So0 was
made on the same day. When the
bank closed there was between $500
and $500 on hand.
The Indebtedness of Gregory and
his family to the bank it now seems
will amount to $4,000, with nc'
securities. .s
These revelations made a COM
plete reversal in public sentiment,
which until the last forty-eight
hours has been strongly with Eli.
Gregory.
The Central City Argus, edited by
Cleburne Gregory. the bankers
brother. appeared to-day, saying:
''As soon as the bank got In trou-
BILE president Gregory and the mem
bers of his family began efforts to
raise money to take care of the de-
positors. Mrs. Eli Gregory went to
\ Cincinnati and arranged to borrow
$4,000, which amount was sent by
benjamin. strader. Cincinnati real
estate man. to Judge W., p. Sand
ige, attorney for Il. +. Gregory.
Mrs. Gregory went on to Pittsburg.
where she Is now attempting to
raise an additional sum.
ELI Gregory Immediately made a
deed of assignment of everything he
had In the world. real and personal,
to Attorney Cam Howard. of Green
VILE. for the benefit OF the bank.
when the check for the $4,000
from Cincinnati was sent out. Judge
sandige was asked to 0. X. the Sc
ourities offered, which included
president sGregory's q stock in the
Central City Deposit bank. AS the
bank il closed this. stock. cannot be
considered as collateral. SO arrange
ments must be made to either re-
duce the loan or pat up other Sc
curity.
"AH of these activities on the
part of relatives were based on the
assumption that there would be no
prosecution as the result of the
banks failure, President Gregory
having voluntarily assumed all re-
spopsibility for the affairs OF the
bank and exonerated everyone else
from ANYTHING the banking connie
sioner might consider irregular. But
Com'c'ss'orer Smith. who spent
f'-ee DAVIS here Investigating affairs.
fen thai duty compelled him to put
the matter into tho courts. He
therefore went to Greenvj'le We'd
nesdav afternoon and swore out b
warrant for President Gregory,
charging him with making false