Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-06
BOARD Of MISSIONS.
CANNOT PAY DEBTS.
BaDtists Unable to Meet Sal
aries Due to $1,000, 900
Shortage of Treasurer.

By the Associated Press.
ATLANTA, Ga, September 6.-The
Home Mission Board of the Southern
Baptist Convention today had an
nounced itself unable to pay current
salaries due to the discovery OF a
ST 100000 shortage in accounts OF Clin-
ton S. Carnes, treasurer. who disap-
peared August Is.
Developments piled high yesterday as
a special church committee headed by
DR.. C. w. Daniel of Richmond, Va,
dug deeper into the affairs of the board
and Carnes, before taking temporary
adjournment.
The committee was able to announce
the approximate size of the shortage
after 1t was found that Carnes Kept a
secret file in which were entered spe-
ciai loan transactions with more than
$50 banks in the South-transactlon
which never came under the scrutiny
of regular auditors or of the church.
Court Action Taken.
First court action was announced
~.
and lawyer intervening as church con-
tributor. obtained a temporary injunc-
ton returnable September 20 against
several possible sources of funds to re-
habilitate the board.
Criminal court proceedings were lndl-
Gated in the announced determination
of Assistant Solicitor General Ed A.
Stephens to begin grand jury proceed
ings against the mission treasurer as
soon as practicable. He began confer
ences with the joint church committee
for that purpose.
Meanwhile there was little to indicate
what Carnes could have done with the
money he allegedly obtained during the
period Of the accruing shortage, Whlch
was estimated to be several years.
possibly eight. Nor was there any word
of the missing treasurer, who vanished
after telling his chauffeur he would not
be at his home for dinner on August Is
because of business trip to Raleigh,
NC He was never seen at Raleigh or
elsewhere, so far as has been deter
mined.
Committee Issues Statement.
In statement to Southern Baptists
on the disappearance of the treasurer
of the home mission board" the joint
church committee gave inference on the
manner in which the $1,000,000 short
| age occurred:
1T has been the custom Of the home
mission board to give its treasurer au-
| thority to negotiate all needed loans
for current operations upon his own
| and sole signature y. The vast
| funds which Mr.. CarneS evidently ap-
| piled to his own account were secured
| nv the sale of notes of the home
mission board which he himself had
| executed and placed wherever he could
| find a market for them. None OF this
character of paper was placed with the
Atlanta banks. All the resources OF
| the board have been jeopardized by
Mr.. Carnes' transactions, together with
the other obligations of the board"
Meanwhile the home mission board
went about its reorganization with DR..
| B. D. Gray. secretary of the board for
| 25 years. acting as treasurer Tor 6O
DAYS following decision to relieve him
| of his duties as secretary. He will be
| made secretary emeritus without re-
! sponSibilitieS.
The Joint committee said 1t had not
vet found a way to rehabilitate the
home board, But believed that proper
c,rtailment of functions and other
steps would suffice for the present.
Immediate administrative reorganiZa-
ton will be necessary. however, the
committee decided. None of the obli-
cations incurred by Carnes will be re-
pudiated, the board stated.