Receiver for Galahad Press Takes over Records of ‘Shirts’
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Receiver for Galahad Press Takes over Records of ‘Shirts’

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W. Bowen Henderson, receiver in bankruptcy for Galahad Press, Inc., took charge of the records and moneys of the Silver Shirts and allied organizations upon instructions of George W. Craig, who last week was named special master in the matter by Federal Judge E. Yates Webb, Shelby, N. C.

Last week Judge Webb signed an order directing the Silver Legion of America, Silver Shirt Legion of America, Inc., and the Foundation for Christian Economics, Inc., to show cause why their records and moneys should not be placed in charge of the receiver for Galahad Press. The court order restrained these organizations from transferring or disposing of any moneys, accounts, records, mail or property until Special Master Craig had passed upon the matter.


A hearing scheduled before Craig was postponed due to the illness of one of the attorneys for a group of out-of-town creditors of Galahad Press.

However, Robert M. Wells and the law firm of Ford, Coxe and Carter, attorneys for the Foundation for Christian Economics, Inc., Silver Shirt Legion of America, Inc., Silver Legion of America and League of Liberators, gave notice that they would appear before Judge Webb at Shelby and ask him to vacate the order signed last week.


Attached to the notice was an affidavit signed by Harry F. Sieber, treasurer for both the Foundation and the Silver Shirts, who said that "the Foundation for Christian Economics, Inc., since February, 1933, has sponsored and financed and distributed" Liberation, the weekly magazine, "and is solely responsible for publication of the magazine other than that the Galahad Press, Inc., is nominally the publisher."

The affidavit further points out that "Galahad Press has not actually engaged in business, except as a nominal publisher of Liberation, a weekly magazine sponsored, financed and distributed by the organization…for more than twelve months, and was not at the time of the filing of the petition in bankruptcy carrying on any business other than the nominal publisher of said magazine."


It also explained that the foundation "sponsored and financed unincorporated organization known and designated as Silver Legion of America which organization was taken over by Silver Shirt Legion of America, Inc., after its organization in March."

The Silver Shirt Legion of America, Inc., was incorporated under laws of Delaware last March 17, and domesticated in North Carolina.

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