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CONVICTION OF GREGG TRAGIC (Continued Prom Page One) ment. and on the other six count*. I will also sentence him to three years in prison, suspended for f.ve years, and will enter the order that the latter sentence will not in any way interfere with a parole when he becomes eligible. 'Tragic Case' “One thing is certain, this is a tragic case and has certain ag gravating and m tigating features. But the defendent did realize that he was violating the national banking act. “On the other hand, here is no question but this is clearly one of those cases where the person dia not actually intend to defraud anyone. He took the monev ana expected to nay it back and would h«vc paid it back had not the economic depression come to nass '* Judge W:Lson said. When court opened Saturday morning. Judge Wilson announced that "We have the matter ot sentencing John Gregg to attend to. Is there anything either siae has to sav?” Clarence Kendall of counsel for the defense, snoke up: "We feel that we have not done our duty by him. his friends and his relatives, unless we petition your honor to temper that Judg Motoring Costs Sensational SALE of Goodrich Commanders Each l> 4-4* 4 90 SI Pair. Ford .. _ ( h»*>nt.'i-w $4*2* 4<§*'S* Chevrolet 4«Sf < -hevrolet 4.7f-19 Smooth 5.12 Whippet DaSoto Oodt. s“" $.49 Pontiac Willy* Ruick . - $••$**1 Studebaker 6.®7 Complete Service STEVENSON MOTOR CO.f Inc. 5th & Elizabeth Phone 1111 *-J ment with mercy as much as you can.” Asst. U. S Atty. Albert Thomas then declared: "I have explicit confidence in your honor’s ability to handle the situation as best fits it. The gov ernment is not in the attitude of persecuting this defendant or any one else. And while I don t think that it should be necessary to have a long sentence imposed, yet the gravity of the case should be con sidered. ’ Gregg Is Nervous Said the judge: “Mr. Gregg, the jury has found you guilty as charged in the indictment. Is there anything you have to sav why you should not be sentenced? ’ Leaning on the desk of the clerk and appearing slightly nervous, the defendant spoke the first words he | has uttered since he came into the court room Monday morning. ”1 know of nothing.” he said in a steady voice. “I think you have been very fair to us.” Judge W.lson then asked the ef fect Greggs shortage had upon the condition of the bank. “The brightest hope of the re ceiver." declared Mr. Thomas "is to pay the depositors and creditors from 45 to 50 per cent on the dol lar. * Asst. U. 3. Atty. Carlos Watson of Brownsville, declared that he was familiar with the local situ ation and that the closing of the bank had caused a loss of confi dence on the part of the depositors and with their withdrawals, it woulo be impossible to open the bank. Then Mr Kendall declared that . the closing of the bank was not due so much to Gregg's misappli cations. as to the failure of the fruit crop in the Valley, the merg ing of the First National bank and other contributing element*. < By The Associated Pres) Judge Wilson assessed the three year sentence and the *10.000 fine on the first six counts, and the i three-year suspended sentence. I suspended five years, on the last six counts. Gregg Slump*. Gregg, sixty and white haired who leaned against a desk in front of the judges bench as the at torneys and the judge discussed ttie case before sentence was pass | seemed s lghtly to slump as I Judge Wilson delivered his judg ment. The judge said the evidence showed Gregg had no intention to "delraud anybody” but that he • the judge) was "one of those who believed u necessary to Vld bank officials u> a striat accountabil ity." The case, he said, repeated ly in summing up the evidence was a tragic one.” No announcement as to whethei the defense would appeal was made. It was understood the matter would be determined in a conference sometime later, of defense counsel Judge Wilson listened at lengtn to the suggestions and requests of counsel for both sides beiore pass ing sentence. Clarence Kendall of the defense opened the discussion telling the judge: •‘Inasmuch as your honor has given careful ath .tion to the testi mony, and inasmuch as that testi mony fully represented the physical and menial and financial condition of the defendant, we feel your holi er is fully able to determine the r.ia:»er. However, we feel we would not have discharged our lull duty unless we petitioned your honor to temper your judgment with all the mercy you can." Gregg limped forward at the time, and Asst. U. S. Dist. Atty. Albert Thomas responded for the govern ment: Ask Short Sentence “The government is not in the at titude of persecuting any defendant, but since the jurv has completely denied the defense plea «of insanity i we certainly believe the gravity of the offenses should be considered, though, due to the defendant's age, we believe he should not have a very long sentence. ’ Judge Wilson asked several ques tions as to whether or not the bank would have failed had It not been for Gregg’s peculations. Thomas re plied the evidence showed Gregg's ‘‘own individual accountability” was $^98,000 and that the "brightesi hope' of the receivers of the bank was that they would be able to pav ' 45 to «o cents on the dollar.” Mr Ke.idall replied that there was many circumstances involved in the failure of the bank and that it appeared to him "outside factors” contributed more to the debacle than did Gregg Gregg himself had been asked if he had anything to say and he re plied in a low voice: Gregg Says Judge f air ’’I know you (Judge Wilson) have been fair and just." Judge Wilson, in summing up his view of the case, said the view he took as an "officer or the United States government" quite probably would be different to the view he would take personally. Ot course I gave dose attention to the evidence,” he said, "and I agree with verdict reached by the Jury. The defendant's acts, of course, were admitted the only defense be ing that of the rnentai condition o» the defendant. In both words, i be lieve trom the evidence that he did have the mental Capacity to under stand the nature of his acts. On the other hand, however, I am thor oughly convinced that the detendant not only was in great physical pain from illness during the period in question but there likewise was, dur ing some of the period, an impair ment of his mind That impairment however, never reached the point where he was incapable of under standing that these things were wrong." As he went on with his talk Gregg looked straight ahead •Tragic Situation* ••Certainly." Judge Wilson pro ceeded. "the situation of the de fendant is tragic There are both aggra ted and mitigating features of this case. The aggravated feature is that the defendant did these things, as president of the bank, knowingly, and in all probability had he not done them the bank would have been saved On the other hand again, there is no question but that this is one of those cases where there was no actual intent to defraud anybody he expected he would be abie to pay it back and probably, but for the depression, ! he would have paid it back. Doubt less there are many bankers over the countrv who. if the facts were known, wolud be in the defendants situation. KODAK FINISHING In by 9—Read\ by 4 HARRY FOEHNER look’s News Stand. Agts. San Benito ! “And yet. though there was no intent to defraud anybody, the pub lic should demand of its bankers a strict accountability, and places consequei h of real and substan tial punishment. I’m one of those who believe in holding bankers to such a strict accountability. It 13 inconceivable what would happen unless such a policy was followed. ‘Sentence Reasonable’ This case is tragic for another reason, in hat the evidence indicates the defendant had been one of the outstanding bankers in the southern region of Texas. He has stood high in honor and integrity and good citizenship But now. if one may be lieve human witnesses, he is broken in health and without hope of re covery-old -n years and older in body than in years. Yes. it is a most tragic situation, especially when there is absence of an_ real crimin al intent. On the one hand, the case demands punishment. On the other it demands that these mitigating features be taken into account. •The sentence that I shall puss may seem severe, and yet I think it is reasonable." He then proceed ed to outline the sentence. Gregg half leaning, half bowed over the desk in front of the bench. City Briefs [ -——- i Announcing opening new curio shop featuring Mexican handwork and Mexican curios. 1152 Junco Building.—Adv. Mrs. Dons Smith and two chil dren of San Benito are spending the week-end in Brownsville with Mrs. Smith's parents, Mr. and Mrs. C- Ft. Tuggle. F R Homes and family and A E. Meyers of Kane. Pennsylvania are spending the week end in the city. J. H. Shaffer of Coleman arrived here Saturday for a few days visit. In Brownsville from Okianorna City, Okla.. are K. B. Hayes and Mr and Mrs. C. A. Cose. Fresh Sheephead at the Ru Grande Fish Co.—Adv. Fred Hyer oi Big Springs is visit- ! ing in the city for several days In Brownsville Sunday is J. E. Maddox of San Antonio. W F Myrick is here from Hous ton for a short time. W. F Fiuwilliamt is spending several days in Brownsville. He Is ' from Austin. Judge and Mrs. J. M. Kennedy of Houston are week end visitors in the city. Dickey s Oid Reliable Eye Water relieves sun and wind burned eyes. Adv. il>. Here from San Antonio for brief visits are Louis Melas and E. L. Brundidge. Houston visitors in Brownsville in clude Arthur Noodelman. J. M. Strickland and John N. Wheeler. H. H Lindhl of St Louis, Mo., is spending several days in the city. San Antonio callers are Louis Me las and E. L Brundidge. Jack Bailey who has been absent from the city for the past six weeks while working in Harlingen, has re turned to Brownsville and is em- ; ployed by the Goodyear company. | Mr. and Mrs. H H. Hornsby ol Dallas are week end visitors in Brownsville. Jack Moore has been tran ferrcd j from Harlingen to Brownsville and is working for the Goodyear com- : pany here. TOC) LATE TO CLASSIFY LARGE ENCLOSED van going *0 Indiana wants load. Bonded and in sured. McAllen Transfer and stor age Company. Phone 241. Shapir >’s Shoe Store go: ng s: iusiness SALE OF SHOES FOR THE ENTIRE FAMILY Still Going On All Men’s, Women’s and Children’s Shoes have been re grouped and the prices lowered to a new level. If vou have not already taken advantage of the tremendous saving on shoes at Shapiro’s Going Out of Business Sale you still have an opportunity to buy at less than half price. REMEMBER, THESE SHOES ARE NEW STOCK AND STYLES WHICH ARE NOW IN VOGUE SHOE REPAIRING AT HALF PRICE Check over your discarded shoes and bring them in. Never again will you be able to have shoe repairing done at such low prices. Shapiro’s Shoe Store 12th and Washington — Brownsville REASONS FOR PROJECT VOTE POINTED OUT (Continued from Page One) and Mr. Blanton to explain th^— to keep the record straight," Mr Cummins said. Should Get It He said he could not guarantee Brownsville the Mexican tonnage, but on the other hand there is no | reason why this port should not; get it. Taking up again his reasons for voting for r Brownsville port, he listed the first as “to enjoy the benefits of he Herculean efforts put forth m Washings a ior your project," and praised the Browns ville men -ho did that work "There are communities in Texas that would gladly pay a quarter of a million dollars for an endorse- 1 ment such — the government ha* given your roject." he said. "Second, the engineers have en dorsed it o»- condition that you fulfill certain ligations. They will not hold open these conditions forever. I am not making any threats to you. but there have been other instances where offers were made by the government, and not promptly accepted, and then with- 1 drawn. In most of those Instances ( it has been 10. 15 or even 20 years ! before the offers could be obtain ed again, because the government takes the attitude that if -ou are indifferent they will not spend the money.” Mr Cummins told of one port which failed to build terminal fa cilities as agreed after the gov ernment had spent a million dol lars dredRing a channel, and said as a result of this now the govern- , ment insists on terminal facilities planned and approved first before it spends money. -Respect to Gamer" He said the engineer- require these facilities to be ‘safe and adequate." before the chief of en gineers will approve them, and said he had considerable difficulty in getting the terminal facilities for the Corpus Christi port, costing $600,000. approved because the en gineers felt that Corpus Christi should spend more than that in view of the expenditure of a million dollars by the government on the channel. "Third, I would go ahead with the port out of respect to the man who more than any other one per son is responsible for getting ap proval of your port—a man who has always put aside other matters to give you his time and efforts. That man is John N. Gamer. ! speaker of the house of representa tives and the next vice president of the United States." "The lourth reason why I would vote for building the Brownsville port now is that there will be no time in the next decade or two when facilities can be built as cheaply as now ’* Mr. Cummins mentioned that in 1929, when he prepared estimates of the port cost, he placed the total at $3,500,000. whereas now it can be done for $2,000.'* *0. Dredging of the Brownsville channel will cost six cents a yard or less as against an estimate in 1929 of 12 cents, he explained. Prices Gcir* Ip But prices are beginning to go up. Mr. Cumnmis said, citing an example in Houston where he could not get work done recently at the same figure it was estimated in June. figure it was estimated in June. He gave as his fifth reason for voting for the Brownsville port th* larger number of md”strial sites that will be made available with the dredging of the channel. He pointed out that at least 10 miles of the channel nearest the turning basin will make fine indu *.n;» sites as soon as the channel is dredged. ' As soon as the depression is over great industries of the nation will be looking for sites for branch plants,” he said, and declared one of the reasons he knew this is that seme representatives of these ind ustries have been in touch with him and the members of the Browitsville Navigation commission only recently. "Sixth. I would vote for the Brownsville port because I know of no investment which would bring more income, direct and indirect, to Brownsville than a port.” In showing what ports have j meant elsewhere, the speaker gave , figures on the increase in valua- > lions of Harris county. From 1911 the valuatitons were $129,000. In 1920. when the Houston port open ed. they were $149,000. And in 1931 | they were $339,000. or an increase of 118 per cent in ten years. At Corpus Christi values have in creased 50 per cent in five years. He also gave population figures, showing an increase in Harns county of 93 per cent in ten years, and at Corpus Christi an increase of 185 per cent in five years. Lower Freight Rates His seventh reason for the port ‘s lowering of freight rates. "Nobody can say just what the rates will be after the port is built,” Oummm said. ' but wp reaped a benefit at Houston, and Corpus Christi got better rates after the port was built, and you will get lower freight rates.” His eighth reason is that "it would provide and immediate outlet for Lhe ores of northern Mexico.” Mr Cummins declared “you have been told that the port of Corpus Shristi is getting no ores from northern Mexico. Yesterday I call- 1 ?d from Mr. Richardsons office at Lhe chamber of commerce Coi Adams, manager of the Corpus Shristi port, and asked him how nuch the tonnage had dropped off. "He said there had been a dimi nution in tonnage, that the zinc con centrates are not moving now, but hat the lead ores are still coming hrough the port there, and that he zinc concentrates will start again is soon as the mines open, which t :he operators believe will be soon. "I believe Col Adams on this mat er." Mr. Cummins said. “I know he s an honest man ” He added that it is his belief that with the opening of your port here n 16 or 18 months there will be ome tonnage from Mexico read-/ o move.” The ninth and last reason which the port enigneer gave is the milling in transitj -ovision of freight tariffs, which will permit ore to be shipped into here from the mines, smelted here, and then moved on to its des tination without being re-shipped. This will undoubtedly result in the locating of smelting plants here, ne said. Mr. cummins left at 9 o’clock to catch a train back to Houston. Judge Yates in discussing a few angle* of the port situation after Mr. Cummins’ talk pointed out that “wc will build the port now when pnces are at the bottom, and pay for it later when times are better.” He declared that -one of these smelters alone will lower your taxes ’ by increasing the valuations. Judge Yates discussed Mr. Cum mins briefly, stating that he has t reputation for honestly, ability and conservatism. He quoted District Engineer Milo P. Fox as stating that the Brownsville port had all the ter minal and inland, land-locked har bor advantages over the Port Isabel project Judge Yates then took up the prospects of getting Mexican xm nage. He explained that the Mexican government is as anxious to make money out of the Mexican National Lines as it is to help its ports. If tlie Mexican government places a rate on ores from Monterrey to Brownsville the same as the rate from Monterrey to Tampico or from Monterrey to Laredo, the mines wiil move the ores to Brownsville, be cause of only one rail haul, when i compared to Laredo, for port ad vantages otherwise. Answers Charge* He then added that the Mexican National Lines and the Mexican government will maka about 100 per cent more on the haul to Browns ville than on the other hauls and said the governin'-nt will do noth ing to discourage this haul. In answering some of the charges made bv opposition to the ticket Judge Yates declared that "none of the men connected with the Browns ville Navigation district owns any land out there near the port. John G Fernandez doesn't own any land within five miles of it.” He concluded by declaring that . ‘if you don’t want this port built now. then vote against the old board, because I just talked to the commissioners this afternoon, and they have had tentative assurance from the Reconstruction Finance Comporation that their loan for the I port work will be approved." He added that this money will never come to Brownsville and be put in any Brownsville banks, but that Brownsville will merely be giv en a credit in some federal reserve bank, and the money paid to the (fowrnraent or contractor* as need ed. No interest will run on the money until it is actually spent, he added Excursion Rates To Valley Announced Both the Southern Pacific and Missouri Pacific railroads have an nounced a special low excursion rate to Brownsville from points in Texas as far north as Dallas and For Worth, over the New Year holiday. The rate will be $5 for the round trip. Preparations will be made here to entertain hundreds of visitors who are expected to come from most j parts of the state. EIGHT COUPLES I IN WALKATHON HARLINGEN, Dec. 8.—With It plainly apparent that some of the contestants will be eliminated soon, eight weary couples and one sok) continued to perform in the Walkathon Saturday night as the endurance event neared the 800 hour mark. Struggling for prize money, these couples have been competing on the floor since the early part of November. The field started with 13 couples and two solos. Since beginning the long grind a McAllen couple—E^ier Reeder and Harry Stevenson— lias filed its intentions to wed This couple is drawing a big share of attention from the spectators. They may. it is said, be married while the con test is in swing. Brownsville contestants in the event are Margy Thomas. Mark Miller and Done Selvers. The re maining solo is Bob Holland of I Rio Hondo The Walkathon is being conduct ed at the Casino Park Pavilion across the arroyo bridge on the Harlingen-San Benito highway. . Professional talent is furnishing entertainment. Iconodedis Rites Puneral service* were held at 4 p. m. Saturday for the 17-day-old son of Mr. and Mrs. Oeorge Iconodedis of 440 7th street. The baby died Priday at 5 p. m. Inter ment was In city cemetery with Delta Puneral Home In charge. Pre-Xmas Holiday Specials Permanent Wave* Steam Oil One wave.$1.95 Two together ..$3.75 SET INCLUDED Co me with Your Hair Clean DUART RINGLETTE One Wave.$3.50 Two Together.$5.75 Shampoo and Set included OIL OF TULIP WOOD One wave, $4.75 Two together, $8.50 Shampoo and set included. All Wave* Guaranteed. A*k those who have had one. GLADYS AGNEW is now connected with our shop and wishes to invite all her friends and customers to call cn her here. Mr*. Rice cordially aoliclta your patronare Your Satisfaction Our First Consideration PHONE 207 MRS. RICE’S WHERE BEAUTY BLOOMS IN BROWNSVILLE 14TH and ELIZABETH STS. I This Great Value-Giving .... Diamond—Watch-Silverware Auction has the entire Rio Grande Valley by the ears .... every one talking about the truly unusual AUCTION SALE, where one dollar will do as neat a job as it takes three or four to do ordin arilv. However, remember we are NOT GOING OUT OF BUSI NESS. You Can't Afford to Miss a Single Sales Session Take everything from the Dorfmnn Jewelry Store at your own price .... the entire stock must go at PUBLIC AUCTION. Two Sales Daily 2:30 P. M. and 7:30 P. M. BE WISE ftutY-.fe and buy now for Chri.tm.. „ 1048 ELIZABETH ST, Browhsvh.le.Tex.