Congressional Record-Sen

1930 CONGRESSIONAL RECORD-SENATE 3277 rates of pension for Spani<sh War veterans; to the Committee tbe Federal intermediate credit bank could reach to get payment on the on Pensions. notes. Therefore, tbe question arose as to wbo· should be the loser-tbe 4280. By Mr. WAINWRIGHT: Petition of 26 citizens of the bank which held tbe notes and claimed they bad not been paid, or Mr. twenty-fifth congressional district of New York, urging the Mitchell, who, tbe plaintiff claimed, bad paid his money for tbe notes to passage of House bill 7825, to amend the World War veterans' the wrong party. act, 1924, to extend the date of service-connected disability The evidence showed tbat at the time tbe notes were rediscounted tbe allowance to January 1, 1930, to allow the benefits of compen Federal intermediate credit bank took over along witb said notes two sation to disabled veterans of the World War who develop crop mortgages and an agreement whereby Mr. Mitchell was to turn I active tuberculosis prior to the date of January 1, 1930; to the over his crops to tbe said Beaufort Truck Growers' Cooperative Associ ( Committee on World War Veterans' Legislation. a tion, which association was to market tbe crops and turn over tbe 4281. By Mr. WARREN: Petition of Jesse J. Piland and three money received from said crops to the South Carolina Agricultural / others, of Oak City, N. C., favoring increased pensions for Credit Co., which put the said Federal intermediate credit bank on Spanish-American War veterans; to the Committee on Pen notice as to how the money was to be paid. Therefore, tbe main ques sions. tion involved was whether tbe Soutb Carolina Agricultural Credit Co. 4282. By Mr. WHITLEY: Petition from Rochester, N. Y., wo.s acting as agent for tbe Federal intermediate bank or for tbe de urging passage of legislation to increase pensions of veterans of t'endant, Mitchell, in tbe handling of tbe money ; and after a hotly con the Spanish-American War; to the Committee on Pensions. tested case, mucb testimony being offered-some being admitted and a great deal ruled out by tbe court, tbe case finally went to the jury, and tbe jury, ~ter being out an bour and 40 minutes, rendered a verdict SENATE in favor of :Mr. Mitchell. The Federal intermediate credit bank, the plaintur in tbis case, was SATURDAY, February 8, 1930 represented by Messrs. D. W. Robinson, of Columbia, S. C., and Ran (Legislative day of Monday, Ja.nuary 6, 1930) dolph Murdaugh, of Hampton, and the defendant, Mr. Mitchell, was represented by Messrs. George L. Buist, a member of the firm of Buist The Senate met at 11 o'clock a. m., on the expiration of the & Buist, of Charleston, S. C., and W. J. Thomas, of Beaufort. recess. This case is of peculiar interest to tbe people of this community for FEDERAL INTERMEDIATE CREDIT BANK, COLUMBIA, S. C. tbe reason tbat a number of other farmers here bad dealings with the Mr. BLEASE. Mr. President, a few days ago, in the Federal Federal intermediate credit bank similar to those of Mr. Mitchell, and a court at Charleston, S. C., there was a case tried in reference Cew other suits similar to tbis one bave been commenced, but tbe suit to the Carolina Agricultural Credit Co. against the Federal against Mr. Mitchell was the first one brought, and Mr. Mitchell, intermediate credit bank at Columbia, S. C., and judgment through his attorneys, objected to the jurisdiction of the Federal court, was rendered for $9,000 against the bank. This is one .o! the taking the position tbat tbe case should have been brought in tbe State cases I have been trying to get the Committee on Banking and court, thus bringing the trial to Beaufort County. Tbe district judge CuiTency to investigate. All account of that trial appeared in held ·tbat Mr. Mitchell's position was correct, and ordered tbat tbe case the Beaufort (S. C.) Gazette. I ask that the account of the be dismissed in tbe Federal court. An appeal from this order was taken trial, together with the editorial appearing in the same paper, by tbe attorneys for tbe plaintiff bank to the court of appeals at Rich may be published in the REcORD. I hope that the m·embers of mond, Va. Tbere the order of tbe district court was sustained, but the Committee on Banking and Currency, to which I ask that from this decision tbe plaintiff again appealed to the United States they be referred, will read both of them. Possibly they may Supre~ Court, wbich com·t reversed the rulings of the two lower courts and held tbat the case should be tried in the United States yet save the United States Governm~nt several million dollars. district court. / There being no objection, the article and editorial were re ferred to the Committee on Banking and Currency and ordered Tbe case has been long drawn out and quite expensive to Mr. Mitchell, to be printed in the RJOOORD, as follows: but his attorneys have made a determined tight for him, and bave finally won a verdict in the case. [From tbe Beaufort Gazette, Beaufort, S. C., Thursday, February 6, We are not advised at tbis time as to whether an appeal will be 1930] made by tbe Federal intermediate credit bank from this judgment in >f CHARLES S. MI',rCHELL WINS CASE--TRIED IN FEDERAL COURT .AT tbe district court or not. CHARLESTON LAST WEEK-A1.10UNT INVOLVED W .AS $9,000-NUMBER OF OTHER FARM»BS HERE HAD DEALINGS WITH FEDERAL INTERMEDI [From tbe B eaufort Gazette, Thursday, February 6, 1930] ATE CREDIT BANK SIMILAR TO THOSE OF MITCHELL--0THEB SUITS THE MITCHELL CASE SIMILAR TO THIS ONE HAVE BEEN CoMME..'I'iCED--CASE HAS BEEN LONG At last one of tbe ·most interesting and important civil cases of DRAWN OUT recent years arising in tbis section has been brought to a conclusion. It will doubtless be of interest to some of our local friends to know It will prove to be a very far-reaching decision, too, as far as many that tbe much-talked·of case of Federal intermediate credit bank of Beaufort County farmers are concerned. We speak of the case of Columbia against Charles S. Mitchell, wbich came up for trial in tbe Federal intermediate credit bank against Charles S. Mitchell et al. } Federal court in Charleston last week, resulted in a verdict in favor This case grew out of certain notes given by Mr. 1\fitcbell to the South I of Mr. Mitchell. Tbis was the first case up for trial on Monday morn Carolina Agricultural Credit Association and discounted with the ing, and tbe trial took all of Monday and Tuesday, and a part of intermediate credit bank in conformity witb the Federal act seeking Wednesday. to aid the farmers. The notes were given for money used in producing / Tbis was a suit on two notes made by Charles S. Mitchell to tbe truck crops during tbe 1926 season. All bere too well know of tbat South Carolina Agricultural Credit Co., together amounting to $9,000, terrible year and tbe subsequent results, so we need not again mention given to raise funds witb which to finance bis truck-farming operations them. in tbe spring of 1926. The testimony developed tbat Mr. Mitchell, Mr. 1\litcbell, 'through his attorneys, Messrs. W. J. Thomas, of along with many of tbe farmers of this community, was financed Beaufort, and George Buist, of tbe firm of Buist & Buist, of Charleston, tbrougb the Soutb Carolina Agricultural Credit Co., their paper being among other defenses, alleged agency between the plaintiff in tbis discounted with the Federal intermediate credit bank of Columbia. case and tbe credit association. Following practically three .days of . The testimony showed that Mr. Mitchell was a member of tbe Beaufort stiff legal battles tbe jury returned a verdict in favor of tbe defendant Truck Growers' Cooperative Association, and bound to turn over bis wbich sustained his contentions, thereby settling the matter as to tbe truck crop to tbat organization for marketing, and that concern wus to question of agency. Thus another of the ugly matters growing out sell the crops and turn tbe money over to the Soutb Carolina Agricul of tbe failure of the Beaufort bank ha.s been settled, and on this tural Credit Co., to whicb company Mr. Mitchell lmd made tbe notes occasion in favor of a defendant. Heretofore the defendants have lost sued on, and tbe Soutb Carolina Agricultural Credit Co. was in turn in all but one of tbe legal skirmishes, in many instances being com to remit to the Feooral intermediate credit bank, witb wbicb bank tbe pelled to " pay notes a second time," and suffer large judgments to notes bad been rediscounted, sufficient of tbe funds to pay Mr. Mitchell's be filed of record. The holder of tbe notes and obligations has suc notes, and the balance, if any, was to be turned over to Mr. Mitchell. ceeded. But the plaintifl' in tbe M:itcllell case whiffed three times at It seems that Mr. Mitchell borrowed $9,000, and turned over to the the ball and was called "out" by tbe jury. Beaufort Truck Growers' Cooperative Association for marketing crops There are other suits pending on notes similarly given. Defenses of the returns-from whicb amounted to some $18,000, the most of wbich a. similar nature have been filed, and it is expected that the defendants was admitted to have reached tbe South Carolina Agricultural Credit will be equally successful.

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