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Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, December 04, 1932, FINAL SUNDAY EDITION, Image 5

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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
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
s“" $.49
Ruick . -
$••$**1 Studebaker 6.®7
Complete Service
5th & Elizabeth
Phone 1111
ment with mercy as much as you
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
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
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
•‘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
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
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
In by 9—Read\ by 4
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
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.
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.
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
Jack Moore has been tran ferrcd j
from Harlingen to Brownsville and
is working for the Goodyear com- :
pany here.
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
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.
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
(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
"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
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
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
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
Judge Yates then took up the
prospects of getting Mexican xm
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
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
Preparations will be made here to
entertain hundreds of visitors who
are expected to come from most j
parts of the state.
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
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
Co me with Your Hair Clean
One Wave.$3.50
Two Together.$5.75
Shampoo and Set included
One wave, $4.75 Two together, $8.50
Shampoo and set included. All Wave* Guaranteed.
A*k those who have had one.
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
This Great Value-Giving ....
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
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,

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