The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-03-24
u. 5. TOPRESS
CLOSED BANK
COVERUP QUIZ
Senators Shocked by Plot
Charge, Involving Hoover
Justice Department.
MITCHELL Is RETICENT
Never Heard of Hartman
Case, Insists Former
Attorney General.

By Scripps-HoWdrd Nciesp0pcr AHichce
WASHINGTON March "a
Chairman Duncan u. Fletcher of
the senate banking and currency
committee today awaited a report
from his special investigator before
moving ahead with the proposed
inquiry into the closed Hartman
National Bank and Trust Co., of
New York. and the department of
justice
Ferdinand Pecora, special counsel
for the senate subcommitte that
has been investigating banking
matters, was to confer in New York
today with United States District
Attorney George q. Medalie.
Medalie'S statement that he with
{ held prosecution of Joseph w. Har-
rman, former president of the
closed bank, on orders of the de-
partment of justice and the comp
troller OF. the currency, pending re-
organization of the bank that never
materialized, shocked senators.
Meanwhile, it was believed that
the Roosevelt administration would
look sympathctically on the pro-
posed investigation, although the
acting attorneys general, Homer
Cummings, said he had no criticism
to make on his predecessors delay
in prosecuting Hartman.
Mitchell Pleads Ignorance
His predecessor, William D.
Mitchell, was quoted in press dis
patches from Charleston, S. c.,
where he, is vacationing, as saying
he had never heard of the Harri-
man case"
His further statement that IF the
treasury department requested delay
I suppose it would be granted,
turned attention to that department.
and the controller of the currency,
one of it's officials.
Il never heard of the Hartman
case" Mitchell was quoted az say
ing. 1T never was brought 10 my
attention. 1 could not say that a
subordinate did not order the prose-
cution suspended, but, personally, l
never gave any orders about the
case, for I knew nothing about it,"
The revelations of Medalie drew
immediate response here. Leading
senators have demanded an investi-
cation.
Senator Tom Connally Dem.,
Tex formally called the attention
of the senate to the case in a speech
on the floor, and at least one sena-
tor indicated he might demand Gre
alton of a special committee to
make the proposed inquiry if the
Fletcher group did not act.
Branded as Outrage
In addition to the statements of
Senators Edward P. Costigan Dem.,
ColoD. George w. Norris (Rep,
Neb), Burton K Wheeler (Dem.,
MontO, and others, Senator Royal
S. Copeland dem, N. ", said that
sit would eeem to DE in keeping with
the Shiny trail of The whole deviliSh
business" and Senator Kenneth
I Mcclellan (Dem., Tenn, said that
if the reports he read were correct
lit is an outrage
After corroborating Medalie'S
statement about the three month
delay in prosecuting the Hartman
case. Acting Attorney-General Cum
mings said:
Il do not care to create any false
impression. Things OF this sort
must be judged as the circumstances
we're then. and the impression was
that in view of the delicate state
of financial affairs, prosecution
safely might be deferred, as there
was no likelihood of the statute Of
!. limitations operating.
1t was an understandable policy.
and not a fair subject for adverse
Judgment in view of conditions
then. I, personally, have no criti-
ciSm of the action
Pushed by Roosevelt
Cummings also disclosed he was
scanning testimony given by bank
erS and stock market officials to
Senator Fletcher'S committee. He
took this step, he explained, to dis
cover if there was basis for prose-
cution of them on account of their
actions.
1t was Mr.. Roosevelt who recently
instructed the attorneys general to
proceed against any individuals
caught in the senate investigation
of banking and Stoc'' market affairs
And in this connection. it was re-
called that it was the President
who first suggested that Charles E
Mitchell resign as president of the
National City bank of New York
and it was on orders issued since
March that prosecutions OF
Mitchell and Hartman were begun
Mitchell is charged with evading