Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-07-04
Smith Admitted
100000 Loan,
.Leche Says
Former |. S. U. Head
Pouses Here, Silent
On Charges
By the Associated Press.

BY the Associated Press.
NEW ORLEANS, July New
attention was focused today on a
statement by former Gov. Richard
W. Leche that DR.. James Monroe
Smith told him before Smith re-
signed as head of Louisiana State
University "he had done a very
foolish thing and borrowed 5000 900
without authorization of the (schooD
board"
This, with statement by a State
Supreme Court justice that he was
present when Smith resigned and
heard him offer ito make amends"
were among rapid developments last
night as State authorities prepared
TO meet Smith and his wife. being
returned under guard from Canada,
Gov. Earl K. Long, successor to
Mr.. Leche's unexpired term, an
nounced he had promised Federal
agents they would be given first op-
portunlty to question DR.. Smith
when he is brought to face the
States charge he embezzled 500 1000
from the university.
Leche Was "Flabbergasted."
Il was flabbergasted," the ex-Gov-
ernor said in a telephone statement
TO the Associated Press, and added
that he then did not realize the true
meaning of Smiths statement. He
explained he told Smith to go home
and rest up while he looked into the
matter"
He said he sent for Attorney Gen.
eral David M. Ellison and w. A.
Cooper, then supervisor of public
funds, and that Supreme Court Jus
tice John B. Fournet visited him at
the mansion in Baton Rouge at the
same time.
While these officials were with
him, Mr.. Leche asserted, Smith re-
turned and told him that in addition
to making unauthorized borrowings
he had opened little trading ac-
count on behalf of the university.
Mr.. Fournet, in an interview with
the New Orleans Times Picayune.
said Smith offered ito make amends
for his gambling losses" meaning
the money he lost in stock market
manlpulations. 90 but none of
those present considered DR.. Smiths
proposal"
Decided to RESIGN
Mr.. Leche explained he asked
Smith
We'll. Doc, do you want to do it
the hard way or the easy way?"
The former Governor said that
when Smith answered he would re-
sign, he told one of the attorney
generals assistants to write out
resignation for the president to sign.
Mr.. Leche declared Smith agreed
to sign. but added that he wouldn't
do 1t IF it contained anything else"
The Ex-Governor said he informed
Smith it would not and then the
middle-aged educator. who had
started life as a poor country boy,
signed it and left.
Had Free Hand.
Mr. Leche said that under the
system at the university there was
almost no checkup on DR.. Smith.
He had an $4,000 salary. a fine
nome, free gas and electricity, most
OF his food raised on the l.. S. U.
farm" Mr.. Leche said.
The former Governor said Smith
had such a free hand that he (Mr.
Leche) remembered going out to
the campus from time to time and
seeing new buildings here and there
He would ask Smith about them.
"'Oh, the board authorized that
at meeting last year." DR.. Smith
would say, and that would be that"
Mr. Leche added he could not saw
positively whether or not there was
truth in the rumor about a miss
ing building" at the university. a
track stadium supposedly appro-
priated for, but not constructed.
There's no such stadium, but
whether or not money went out for
1t is something that only the rec
OrdS might Sbouy ~ Mr. aoL. -oil