Evening star., 1939-06-28

BATON ROUGE, La, June 28-
A spreading series of Investigations,
centered today on Louisiana State
University, kept this State in tur-
moil while police of the Nation
hunted the schools former president
who is accused of issuing invalid
notes totaling half a million dollars
AS the new Governor, Earl K.
Long, promised complete investi-
cation of L. S. U. and other State
institutions, police lost the trail of
the missing university head, DR..
James Monroe Smith, at Memphis,
Tenn.
Today the search for DR.. Smith
centered in the Detroit area, after
an Illinois Central ticket agent at
Memphis reported man iden-
titled as DR.. Smith purchased two
. tickets early Monday at Memphis
for Detroit. DR.. Smith was accom-
panied by his wife when he fled
Baton Rouge Sunday night.
The grand jury here, under the
guidance of Attorney General David
M. Ellison. settled down to thor
ough investigation" of L. S. u, but
the Federal grand jury, in New Or
leans for an inquiry into alleged
w. P. A. irregularities in the State
and the p w. A., began checkup
of its own.
Fight With Banks Seen.
Observers, meanwhile, anticipated
q fight between three large banks
and the State administration-or the
university-to determine who should
stand the loss of the $500,OOO which
Mr.. Ellison said DR.. Smith obtained
The attorney general said that Dr.
Smith had obtained 100000 from
one New Orleans bank. 100000 from
another in the same city, and $780,
600 from Baton Rouge bank.
Mr.. Ellison said the banks would
have to stand the loss because the
notes were accepted by the banks
without the authority of the State
Bond and Tax Board, as required by
law.
Insisting the transaction was le-
gal, however, Oliver G.. Lucas, presi-
dent of the New Orleans National
Bank of Commerce, said:
"(HiO bank holds note of the
Louisiana State University for
100000. This represents a loan
made to the university on the au-
thority of duly adopted and certi-
fed resolution by its Board Of Su-
pervisors. We regard this loan as
valid and binding obligation on the
university"
Newspaper Denied Books.
Meanwhile representative of the
New Orleans Times-Picayune, at
tempting to see the boards books
was reminded by Supervisor of Pub
lie Accounts Frank S. Shattuck that
under State law records of the board
ito further protect the faith and
credit of the State and its agencies
and to prevent its impairment by
unfavorable and misleading pub
licity shall not be subject to
public inspection"
Mr.. Ellison did not discuss what
use the bald, mild Smith might have
made of the money, but a broker
age firm reported he had been a
heavy looser on the wheat market,
but closed out his account with two
checks, each for 100000.
United States District Attorney
Rene A. Viosca, scheduling Friday
a Federal grand jury investigation
of w. P. A., revealed one of the first
witnesses would be Paul Hansen
chief of the agency's Investigators
for this district. Hansen, now in
Washington, was here last week
while the agency began an inves-
tigation behind closed doors.
Check on p. w. A. Projects.
Grant l.. Fritz, P. w. A. auditor,
was ordered here to check up on
five Public Works Administration
projects under construction at the
L. S. U. campus and branch schools.
His trip admittedly was brought
about by Smiths disappearance, but
the P. w. A. Office at Fort Worth,
Tex, said 1t had received no COM
plants.
Mr.. Ellison said one of the main
witnesses at the grand jury in
vestigation here today would be
j. Emery Adams, nephew of DR..
Smiths wife and former manager of
the L. S. U. book store.
Brig. Gen. Louis F. Guerre said
Adams, now under IS 900 bond, told
him he drove DR.. Smith and his
wife to Memphis Sunday, shortly
after he turned in his resignation.
1t was learned last night that
the Smiths, under the name of
"Mr. and Mrs. j. M. Southern" had
registered at Memphis hotel early
Monday morning, but departed with
In two hours.