Omaha daily bee., 1921-06-05
Federal Judge
Asks Pardon for
Sutton Banker
Omaha Attorney, Now at
Leavenworth, Is Really Re-
sponsible for Failure Is
Claim in Petition.

of T. H. Matters, Omaha attorney
in Leavenworth prison to serve tlvt
years for violation Of the national
banking laws in connection with the
failure of the First National bank OF
Sutton, Neb., Federal Judge ]. W.
Woodrough declared yesterday he
would endorse the application for
pardon received Friday from M. L,
Luebben, former president OF the
bank, now serving five years in the
same prison. -
II believe Luebben has suffered
enough" said the judge, who sem
fenced the banker August 7, 1920.
Luebben's application for pardon
will be forwarded to Washington
with endorsements by the judge, the
attorney who prosecuted him, Oma-
ha and Lincoln bankers and attor-
neys and former depositors in the de-
funct Sutton bank.
-Four Reasons Advanced.
In his application for clemency
Luebben reviews the events leading
up to the failure of the bank, his in
dictment and arrest, and his i'm
prisonment.
He offers four reasons why he be-
lieves he should be pardoned.
Luebben declares he reaped no
personal benefit from the actions
which led to his imprisonment, that
he did not commit them except at
The request of T. H. Matters and
hat he was made penniless when
he bank was closed.
Since the closing of the bank i'll
1914, he declared, he did everything
within his power to assist the gov
srnment, that he was determined to
plead .guiltysat once, but that he did
not plead guilty in the beginning at
the request OF the United States at
torneys. who wanted him to testify
as witness.
Wife Broken In Health.
Luebben is past 90 years old, he
states in the application, and is abso-
lutely necessary to the support OF
his family, because his wife has
broken in health and is no longer
able to bear the burden of support
ing herself and their young son.
He further pleads that while the
acts committed resulted in the failure
Of the bank, they were committed
without criminal intent and only |
through error in judgment and mis-
placed confidence, which resulted in
his ruin as we'll as the failure of the |
bank.
If pardoned, he declares, his sole |
ambition in life, next to supporting |
his family, will be to pay back to |
the depositors of the defunct bank
the money they lost, pleading that
his years are short and he must be
allowed to do this soon if he may
be successful.
Matters Is Blamed.
fLuebben, in his resume Of the case,
hlames the failure of the bank on
his appeals to Matters, then attorney
for the bank, to aid him in saving
the Luebben Baler company, which
was hard pressed for funds.
Matters had the reputation of be-
ing wealthy, he declared, and could
place him in contact with persons
who would produce funds to carry
the alfalfa baler company. |
He allowed Matters to draw on
the bank temporarily for several
thousand dollars, he declared, and
Matters, instead of paying the over
dfaft, began "kiting" checks for
large amounts.
Then one day Matters telephoned
him from Omaha to send his GER
ti6cates of deposits for $500, he de-
clared. and three days later for $34.
600 more made out in the name of
George B. Darr, Omaha capitalist.
He sent them, the application con-
tinues, with explicit instructions to
deliver the certificates only after the
had been deposited in an
Omaha bank. II
Then came the Grassland the peni- I
Tertiary. Il
Prosecutor Urges Pardon.
Howard Saxton, who was. assistant
Grired States district attorney at the
time of Luebben's trial. recommends
his pardon, closing his letter with
this paragraph: II
"He's an old man now, but has a
younger wife and boy probably 10 t
years old. He probably cannot live
through his confinement for the full $
term" II
Hundreds of people in and around t
Sutton wish clemency could be /
shown him." writes another endorser Y
Of the pardon plea. It
Letters recommending pardon are r
from l.. R. Stein. former resident of t
Sutton, now Of Hastings; Merton L. c
Corey, attorney and registrar of the
Federal Land Bank of Omaha; F.
NJ. Tyrrell, Jacob Fawcett and r. S.
Moekett, Lincoln attorneys.
Endorsed by Depositor.
Homer w. Gray, considered a $
heavy depositor i'll the. Sutton bank
1t the time of its failure, a witness
for the government against Matters,
and victim of several of the certih-
Gates issued on the bank, likewise
urges clemency for Luebben. {
Under a blanket recommendation :.
for pardon which states they believe
Luebben has been punished in the il
past seven years all that he can bear
and that further Imprisonment prob
IDLY will make him a physical wreck
and prevent his ever being able to
help himself or his family, appear
.hese names:
A. J. Sawyer, E. A. Groney, L. B.
Howay, H. H. Freeman, E. H. Null A
oway, w. w. Hackney, ir, w. IL.
Selleck, Lincoln bankers, and w. L.
Locke, who was foreman of the fed
.ral grand jury which returned the d
i b