Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-06
BANKER CONVICTED
ON FRAUD CHARGE
Rouers Caldwell Will Seek
RetriaI at Nashville, At
torneys Say.

Nv the Associated Press.
NASHVILLE. Tenn, July 6.-RogerS
Caldwell, former investment banker
was convicted by Criminal Court jury
TODAY of fraudulent breach of trust, ana
his punishment was fixed at not more
than three years in the State Peniten-
tiary.
His attorneys announced they would
dle motion for a new trial.
Denied knowledge.
The charge against Caldwell grew out
of the alleged violation of trust agree
ment between Caldwell's collapsed in
vestment house, Caldwell & Co., and
Hardeman County. Tenn. 1t was
charged that securities less valuable
than those specified in the agreement
were pledged as collateral on the trust
thus violating it.
Caldwell denied he knew of the irreg--
ularity until long after it occurred, and
he testified that when he learned OF IT,
he Immediately took every possible step
to correct the condition.
Opposes Testimony.
]. De Witt Carter, vice president
of Caldwell & Co., testified, however,
J0dU he CdllGu LIlC AAANSN
larity and other alleged violations to
Caldwells attention on many occasions.
A large number of the 4l-year-old
bankers friends were in the court room
as the Jury returned the verdict. The
Jurors received the case Saturday.
The charge on which Caldwell was
convicted was one of four brought
against him here. similar accusa-
ton relates to another Hardeman
County bond issue and two indictments
charge receiving deposits in an lnsol-
vent bank.
Caldwell is under Federal indictment
at Knoxville in connection with an al
legged transaction of the closed Holston
Union National Bank of Knoxville, in
which he was interested. State and
Federal charges also are pending
against him in Kentucky.
Outstanding in Finance.
Caldwell was one of the outstanding
financiers of the South. In the IA
years of his company'S existence, esti-
mates placed the number OF Southern
securities disposed of at between $780,
oo0.00 and $300,000,000.
Offices were maintained over the
Nation and the company engaged IN
financing in a wide and varied field
that included many large mills, hotels.
road building projects. bridges, office
buildings, hospitals. apartment houses
and insurance companies.
Caldwell has been prominent in
sports. especially in horse racing and
fox hunting He disposed of his rae
ing stable shortly after the crash OF
his business last November
Linked With Governor
During a recent legislative investiga-
ton of State affairs in Tennessee
CaldwellS name figured frequently in
the testimony.
Several witnesses told the investi-
gators the construction Of his half
million dollar home was financed by the
Bank of Tennessee and carried on that
institutions books for time as an
asset
When articles of impeachment were
presented to the House of Represent
several weeks ago, Caldwell was named
as one of these who conspired with
the Governor to manipulate State
affairs to their personal advantage in
exchange for political and financial
support
The impeachment movement was de-
feated by the House.
CaldwellS trial started June g.
His defense was that he travelled con-
Stantly as contact man" for the
banks and therefore did not have init
mate knowledge of their routine
He told Newspaper men today his
conviction came as a tremendous sur
prise and that he was confident of
complete vindication eventually"