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MISUSE BANK FUND ALLEGED AT CLEVELAND Jessee Loaned $23,000 to His Concerns Before Resigning, Without Knowledge Directors CLEVELAND, Va., May 15—E. F. Jessee's action in loaning money to concerns in which he was interested while he was cashier of the People's Bank of Cleveland, Va., without the knowledge and consent of the bank directors, led to the closing of the bank, and indications are that the affair will be settled satisfactorily within the next few days, it was learned this morning from S. H. Fletcher of Lebanon, who yesterday was named by Russell county circuit court to take over the bank's affairs. Receiver Secured M. E. Bristow, chief state bank examiner, yesterday asked the circuit court that Mr. Fletcher be made receiver of the bank. Mr. Fletcher said this morning that his understanding of the case was that Jessee, before he went to Big Stone Gap last week to answer Federal charges of passing counterfeit money, loaned approximately $23,000 of the bank's money to concerns in which he was interested. Directors of the bank were not consulted, said Mr. Fletcher. Mr. Jessee then resigned and directors learned of the condition. Mr. Fletcher said that the bank directors, prior to Jessee's action, had loaned the companies in which Jessee was interested as much as they cared to. May Assume Notes It was indicated that Jessee's father and other relatives would assume the notes. They were drawn little more than a week ago and are not yet due. Jessee was bonded for $16,000. The bank's surplus is $10,000. No loss to stockholders will incur, it is believed, even if court action is necessary. Jessee was indicted in Federal court at Danville in 1927 for the alleged passing of counterfeit money. His case was transferred to Big Stone Gap and last week was continued until the Abingdon term of Federal court in November.