New Braunfels Herald Zeitung (Newspaper) - July 25, 1985, New Braunfels, Texas
Bank head resigns over bad collateral
New Braunfels Herald-Ze/ft/n^ Thursday, July 25,1935
DAINGERFIELD (AP) — Residents in this
as* Texas town are shocked over the resignation of a bank president, who bank officials said kept t lousands of dollars in counterfeit money as collateral on loans.
John Scott Jr., 33, president of the Daingerfield National Bank, quit a week ago, said Buck florence, majority stockholder and board chairman.
“We're in a state of shock.
He was a local sports figure in high school, he has always done real well, he s widely respected in this county,” Daingerfield Mayor Jerry Grainger told The Dallas Morning News. “We have all watched him grow up.”
Before working for the largest local bank, Scott had been president of the Daingerfield Chamber of
I don't believe it still. I love Johnny Scott,” Mariann Wood, office manager of the chamber of commerce, said. T’ve worked with him for four years, and Johnny is super. I just don't believe it.”
Scott had been bank president for the past 18 months, and he had worked at the bank for about eight years.
“I hand-picked him to be president,” Florence said. “Johnny Scott was part of my most inner circle.”
The bank executive committee, Florence said, discovered “considerable inconsistencies” with two loans involving a mother and son, whom he declined to identify.
“Mr. Scott had made loans, taking bogus money as collateral,” Florence said.
Scott told Florence the loans were covered with cash, but the money turned out to be bogus, Florence said. He did not say how much counterfeit money was involved, but The News reported it was $600,000 worth.
The loans were made over the past ll months, the last on July 12. The situation came to light last week, Florence said.
According to Florence, he confronted Scott when the bank president returned from a vacation, and Scott told him he had a large mount of cash he was holding as collateral.
Florence said he knew the money was counterfeit when he touched the bills.
“I reached down and touched it, and I instantly
knew it was bogus. It felt sort of like a sheet of paper that you’d run through a copy machine,” said Florence.
Using cash as collateral is “not a customary banking practice,” he said.
The bank may recoup a $75,000 building, and he said he expects remaining losses to be covered by insurance.
Customers have been curious about Scott’s resignation, but “we’ve had no significant withdrawals,” Florence said.
He said that a check of the vault revealed no other counterfeit funds and there was “no indication whatever that anybody else in the bank is a party to this.”
Scott could not be reached for comment by the Associated Press on Wednesday.
The Secret Service is investigating the couterfeit money case, The News reported.
Local law enforcement officicals are mystified about where Scott got the bogus bills.
“There is a lot to this story that remains to be unraveled,” said Morris County Sheriff Joe Skipper.
Assistant U.S. Attorney Jay Angelo of Tyler said his office was investigating the matter but he declined any further comment on the case.
Mom 8- Pop slayings
GRAND PRAIRIE (API - Police early today searched for a motive in the stabbing deaths of an elderly operator of a small grocery and his mother, whose bodies were found in the store Wednesday night.
George Grant, about 71, and his mother, Lillian, about 93. were found stabbed repeatedly in the back after police were notified of the slayings shortly after 8 p.rn at Grant’s Grocery Store, police spokesman Gaylord Hayes said A teen-age girl discovered the mother's body in the living quarters of the store Wednesday night, and the man s binh was found nearby
The Grant family had operated the store for at least 30 years Hayes said officers had not determined if the store was robbed late Wednesday night A small
amount of change was found in the store’s cash register.
"We don’t know what the motive was. whether it was a robbery or it was just a murder," Hayes said He said small amounts of money
usually were kept at the store.
Mrs. Grant was last seen after 5 p.m. Wednesday, and police believed that both she and her son had been dead about two hours before they were discovered, Hayes said.
Roy Holland, pastor for the Freetown Road Church of Christ, said the Grants normally would attend worship services on Wednesday night. But he said Mrs. Grants health problems occasionally kept her from attending services.
Holland said Mrs. Grant had to use a walker as a result of a stroke she
Neighbors said the Grants often extended credit to residents of the low income neighborhood where the store is located.
• They would have done anythingElderly couple found dead in family store
for anyone,” said Marie Mack, 23, a neighbor who grew up with the Grant family.
Police Chief Harry Crum said the store has been robbed several times, but there had never been any violence directed at the owners.
"This was a mom and pop operation” smaller than an average convenience store, Hayes said, adding that the store usually shut down about 5 p.m.
However, Grant had a practice of selling merchandise to neighborhood children who came by late, he said.
"They’d usually open the door and let them get what they wanted,” he said.
"There was no cause for anyone to kill somebody over food or something because they had tickets in there where people could buy on credit,” Hayes said.
Domestic car sales
In millions of cars, January-June
Chrysler Honda AMC
Chicago Tribune Graphic Source Industry sales statisticsSpring Hill, Tenn. likely Saturn site
;RTh TEXAS Scanned th) tut friday Loa* lorwgbf
SOUTH TEXAS Scut'rf'ed afternoon and tntstnny kb*.wet* for the ioAtrr Rio Grande Va-c, Hoi" ajtJ to hr H.d Country and Ed*jrdy l>.Alit •-gf t m the 60s and
.’Ok Hig»<* Fond* r ti-.,- HO* and 90k escept tor buriti rtidi ng* at >vr IOO rn the Rio Grande pum*
DRAW THE WEATHER SUBMITTED BY
PhiUip, Fifth Grade, Carl Schurz
Bob storms Carolina
Strong tt'underkturthk dumped -end or re * elf ri che* of rum ecrokk po T»:»jk South Plain* kerry Uiday
T fond*! kl or ms continued to rum! tire northAekt and (Mkterr) portions Terre* The strongest thunderktor detected along a cool front born neat VVrchda Fall* to iukt nor th of M-die->d
E'k**hete oa cloudk dotted the Ioa#i R.o Grande Valley and kouth central kechonk o* the Hale Abit* ta*' ss-es Aer# common rn the
eakl and along It* coastal watery High Cloudy were visible over the remainder of Tete*
A youth A-nd ut IO to IS mtiek an breezed a« Out the norther#*! Atren variable Ainu around IO mile* an hr common
eitideA* temper atule* ranged y rn the Panhandle to the low Silk to me ep koutt However mokl reeding* were to t- TO* Ai 4 a m Matte end Lubbock yhated e vt el ti * coolest reeding of 64 Af vie rf pus Chnyti trad Ore nighest reedittg at 64 The National Weather Service said yea) led thuirderyhoAer* are likely eofOkk tie •I west central and northeaytarn trunk of North Te*e* over much of Web! us j -J bon th Tete* bom the a , > h mde Veney northward .ow* tonight should be ar tire bu* and 70k
North Terra* No tarn it eapected High* 90* Loa* 70c
Thousand* of South Carolinians took refuge inland a* Hurricane Bob surged ashore early today drenching much of the state and southeastern North Carolina Aith heavy rams before it waned to tropical storm status
Flood watches com ' ued across much of North Carolina as wet) as across the eastern halt of South Carolina as ramta* totals were «spec ted to teach 4 to 8 inches across central and southeastern North Carolina and eastern South Carolina
Meanwnae a hurricane watch was posted tor the island of Hawaii as Hurricane Ignacio. with su st ai nae) winds up to 106 mph and gusts reaching 126 mph continued to mova west at about 12 mph some 600 miles east southeast of Hilo. Hawaii
Temperatures around the nation at 2 a rn COT ranged from 42 degrees at Meactgtm, Ore to 90 degrees at Phoeni» Aid and Las Vegas Nev
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fjSl MBankNew Bra lintels
A Momentum Bank
P. O. Box 961 Moi* Pl***, New Braunfels Texas 78130 512/625-8501
Memoer MCorp MPfiCT and EDIC
MINNEAPOLIS (AP) - A toplevel meeting of United Auto Workers union leaders was to begin Friday morning in Chicago to discuss the latest preliminary labor agreement for General Motors Corp.’s Saturn car project, the union’s president said.
The call for the meeting by UAW President Owen Bieber in Minneapolis Wednesday was the first indication in several weeks that the UAW and GM could be near to agreement on a letter of intent governing work at Saturn.
Bieber wouldn’t predict whether the union's ruling Executive Board would OK an agreement. However, he expressed confidence that it would.
GM has said it would prefer to have a UAW agreement before announcing where it will put the Saturn complex. A nationwide competition for the plant, including Minnesota's bid to lure the plant to Duluth or Cottage Grove, has gone un for seven months.
"If I was a betting man, I would make it (the announcement) after Friday,” Bieber said.
Meanwhile, the Detroit Free Press, quoting unnamed union sources, reported in today’s editions that Spring Hill, Tenn., would be the likely Saturn site.
“I’m 99 and nine-tenths certain of it,” one of the sources told the newspaper.
Kalamazoo, Mich., which also has been mentioned as a finalist, still was in contention, said another union source who would not comment on that area’s chances.
Mitchell said j Bieber didn’t know what sites were under consideration for Saturn. GM has maintained for the entire seven months that no states have been ruled out for the high-technology automaking complex.
Bieber said the union has no role in determining the Saturn site.
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