Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-17
LEA INDICTED AGAIN
IN FAILURE OF BANK
AsheviIIe, N. c., Grand Jury
Accuses Tennessee Pub
Usher and Son.

BY the Associated Press,
ASHEVILLE, N. c.. March 17.-Col.
Luke Lea, Tennessee publisher; his son;
Luke Lea, r., and E., P. Charlet OF
Nashville and six officers and directors
of the closed Asheville Central Bank ~
Trust Co. were indicted by the Bun
conbe County grand jury yesterday on
charge of violating the State banking
laws.
The indictments marked the third
time sweeping legal action has been
taken as a result of the failure here last
wear of banks with deposits OF approx
mately $40 600, 900.
THOSE against whom true bills were
returned, in addition to the three Nash
Vile men, were Wallace B, Davis, Rus
sell c. Davis, DR.. j. A. Sinclair, G. N.
Brown. Sam A. Hubbard and Clarence
Rankin. officers and directors Of the
Central Bank & Trust Co.
Hearing Set April 20.
Solicitor Zeb v. Nettles said those in
dicted would be called to trial at spe-
cial term of Superior Court already
ordered for April 20.
Col. Iea's bond was set at $lO.OOO ana
that of Luke Lea, jr., and Charlet at
SIS 900 each. Solicitor Nettles said ar
rangements would be made for posting
Of bond without delay.
The Leas and Charlet, along with
Wallace B. Davis, are charged in an IN
dictment containing six counts WIN
conspiracy to defraud the Central Bank
g. Trust Co., and by means of the al
legged conspiracy with defrauding tue
institution of a total of $880,000 by the
issue of certificates of deposit on the
Asheville Bank payable to the Bank OF
Tennessee without money or its equiVa-
lent being deposited, and through
wrongful use of cashiers checks.
Six other indictments were returned
against Wallace B. Davis, president OF
the defunct bank. Two involved the al
legged issuance Of two 100000 certifl-
Gates of deposits to the Bank OF Ten
nessee at different times without recelV-
ing monetary consideration.
=, Davis. together with his brother,
Russell C. Davis, were two OF four
men named in Federal indictments soon
after the Central Bank & Trust Co
and. the American National Bank failed.
The four were charged with violation
or conspiracy to violate the natlonal
bank laws in connection with the trans
fer of funds between the State and
National Bank.
More than 100000 of public funds
were on deposit at the Central Bank
g. Trust Co. when it failed, and shortly
after the Federal indictments were re-
turned ID bank officials and city on-
Gals were named in a new series OF
indictments.
Lea Issues Statement.
Mayor Gallatin Roberts. one OF the
city officials indicted. committed suicide
shortly after the action was taken. j.
Charles Bradford, one Of the four named
in the Federal action, attempted to
kill himself by slashing his throat with
a razor, but Is now recovering.
At Nashville, Tenn, last night Col.
Lea issued a formal statement saying:
81 have documentary evidence that viii
conclusively establish our entire tnno-
cence"
The statement continued, 1.-THE full
facts regarding this transaction could
not have been before the grand jury
when these indictments were returned,
for If they had been I would not have
been indicted and z. P. Charlet and
Luke Lea, IT., two young men at the
threshold OF their careers, would had
nothing to do with the matter, would
not have been subjected to this cruel
and grave injustice"