The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-07-27
POLITICS BEHIND
RECESS OF JURY
Failure Of Ell Reno Bank
May Involve Many Can
didates for Office
SALE FRAUD BALkED
Exchange of School Bonds for
Liberty Bonds Misrepre-
sented, Says Carter

Special to The world
OKLAHOMA CITY, July 2G.--The
grand Jury which has been impnn-
olod ot III Reno for the purpose ~
Investigating the affairs Of the failed
Commercial bank. viii not begin It's
probe until August Z. II was called
at tho instigation Of depOsitors OF the
dcfunct bank, who organized for the
purpose of conducting nm investiga'
tlon Of their own. aud who, after
some preliminary inquiry, decided
that only - grand jury could serve
the purpose. In the meantime, they
asked tho state examiner and In.
spector to make an examination OF
tho banks records, ana Charles Al
cNandCr was detailed from parkln.
sons office to make tho audit. HIS
report In completed and IL expected
to be made public Wednesday while
engaged on the work. Deputy Alex.
andcr had a subpoena issued for
Frank EnEcl, son OF the president
0f the bank, who took exceptions
to the stnte's probe and accused Al
cNander OF trying to ruin his fathers
reputation. IL ~ related that Alex
andcr suggested that the records In
the bank had already accomplished
that. wheroupon. Engel nAsniled the
state probor with his fists and the
two went TO tho mat. They were
separated, but the probe went on,
and It's revelations are expected to be
startling.
Politics Involved.
The recess taken by the grand jury
until after the primary, In under
stood to be due To the fact that the
Investigation will involve several
public officials, somo OF whom are
candidates. Among these are Sec.
a. =. j. Shaw. OF the state school
land department. who exchanged
S97000 IN government bonds for
like amount OF El Reno school
bonds. payment Of which Ia being
contested on the ground of fraud.
bccrctnry Shaw maintains that the
bonds will eventually be paid; but
the fact remains that the interest Ia
long overdue, and the state has made
no effort TO collect,
In a statement recently. Secretary
Shaw snid that the deal had been
authorized by the school land com
mission. The record shows that the
commission approved the transfer
after II had been made by Shaw. II
tranepires that Shaw and w. r.,
lIightowcr an official OF tho Amer
lean National bank OF Oklahoma
City. visited members of the commls-
sion individually and represented
'Itl ltlbllbWfI WAN htllHE IOT NUt
lei Reno board OF education In re-
questing the exchange of bonds. II
has been the policy of tho commits
sion TO assist municipalities In such
matters, whenever II can do 80 con-
sistently. state Auditor Frank Car
ter. however, grew suspicious after
being visited by shaw and IIightower
and telcphonod Ia tho III Reno board
OF education asking II IL was MAX
n 90. a
that the board had nothing to do
with 1t. having disposed OF the
bonds, as was thought, to the III
Reno bank. Cartor then adressed
the following letter TO Shaw:
Letter 10 Shaw.
October II. 1911.
.ion. a. =. J. shaw,
Secretary school Land Commission.
Bulidins.
"neRr Siri
"Aa n member Of the hoard OF school
land commissioners ! wish to protest the
exchanging uf any III Reno city school
bonds for the Liberty bonds owned by the
state, Tor the roason that have been rolf
ably Informed that said school bonds are
now IN the hands ot bond broker.
When you and hr. Higntuwer were IN
my office on yesterday. 1 asked you the
question N these bonds were In tho hands
o. tho school district Either you or Mr.
the bank was simply holding the bonds
as custodian for the school dlstrict
As you wen KNOW ] hAN~ maintained
tho position that | would at all times
oppose the exchanging OF school bonds
for Liberty bonds when in the hands OF q
spoculRtur. | have always been In favor
of exchanging bonds with the school dis,
triets when the school district Is benefited
thereby, being In favor OF assisting any
mb.divisiOn of tho state At all times II
ssid bonds have not been exchanged, please
record me opposing namci or, " any
portion has been exchanged, please enter
my protest for tho exchange OF any more
OF them.
"If any portion OF these bonds has
been exchanged II was without meet