Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1929-07-29
ROW LEADS TO
Announcement For Governor
Said To Follow Dis
agreement
Especial to The Herald)

AUSTIN, July 29.-Deadlock OF
State Treasurer W. Gregory Hatch
er and Banking Commissioner
James Shaw over which should
handle the refund Of none. to for
mer guaranty fund banks, climaxed
by their physical encounter this
week, was credited here with caus-
ing Treasurer Hatcher to announce
for governor, in c statement he is
sued while on a visit > Dallas.
Mr.. Hatcher promised admins
tration Of the banking department
fer half its present cost, to oppose
chain banking and to reduce the
number of bank failures, in his
campaign announcement.
Bankers disclosed that the refund
Of accessories o. the old guaranty
fund system, abandoned by the
state more than a year ago, = being
held up because D. the controversy
between Hatcher and Shaw as
members Of the banking board. At
torney Genera Claude Pollard,
third member of the banking board,
it is said, has sideC with MI. Shaw.
Disagreement v handling Of this
fund was credited with causing Mr..
Hatcher to invite Shaw outside
this week, during which spectators
said Shaw struck Treasurer Hatch
er.
Mr.. Hatcher left he same day for
Dallas, and Thursday surprised the
capitol here by his announcement
in Dallas for governor. He previous
IL had said he would be a candidate
for reelection as treasurer.
Treasurer Candidate
His change Of race opened the
treasureship race, with prospect
that several candidates may enter
it. Ed A. Christian of San An
tonic, former state treasurer, was
said to be a likely candidate.
Mr.. Hatcher said he will make an
active campaign until after Oct. 25,
when he closes his term as worthy
grand patron Of the Texas Order
of Eastern Star.
His sudden announcement, as re-
ported in news dispatches, created
considerable interest here; but the
interest appeared almost equally as
keen on the disclosure, following
the Shaw-Hatcher encounter, of the
subject Of disagreement in the
banking board, and the Withholding
of \any thousands Of dollars from
banks thereby.
Treasurer Hatcher's announce
ment statement, scrutinized by pol
iticians, said he will take his cam
pai~l ito the forks Of the creeks"
Mr.. Hatcher also was quoted as say
ing he regarded it as a public ne
cessity for someone to be elected
to the governors office who is not
afraid to speak out in the cause OF
the people"
Promises Economy
IF elected governor" his state
ment said, Il promise the people
that cost of government shall be
lowered from $50,O00,000 to about
$40 200, 900 for the biennium. Chain
banking will be an issue in the cam
paign. I will not appoint a bank
ing commission who would feed the
small banks to the chans. ! will
reduce the number Of failures in
banks by half
Treasurer Hatcher was given his
first nomination tJ the state eXecu-
tive committee after @. v. Terrell
had been nominated in the 1924
primaries as treasurer and resigned
to 60 on the railroad commission.
James e. Ferguson's influence was
credited with his selection.
Before the Inauguration, he had
broken with Ferguson, and carried
on a sharp controversy with the
Fergusons during Mrs. Ferguson's
term.
1t was recalled here that he best
ed Gov. Dan Moody in an argument
two years ego. He advocated a
lower tax rate to be fixed by the
automatic tax board of which he
and Moody are members, than
Moody decided upon. A few months
later Gov. Moody sought a way to
reduce the rate, but found it could
not then be changed. Treasurer
Hatcher's controversy with Com
missioner Shaw = Of recent origin.