Past Potentate Acquitted

When, in April of 1927 (TIME, April 11, 1927), the Adair Realty & Trust Co. of Atlanta went into bankruptcy for $38,000,000, great was the shock to Atlantans, to Georgians, to Southerners. It was an Adair who was the conductor of the first railroad train that ever entered Atlanta (1845). It was an Adair who was prominent in the rebuilding of Atlanta after Union troops burned the city during the Civil War. Forrest Adair Sr., present head of Adair family, is a Past Illustrious

Potentate of the Shrine (social organization of 32-degree Masons). Thus the failure of Adair Co. was the failure of a great institution.

Last week, however, this failure was at least freed from any suspicion of fraud. Forrest Adair Sr., Forrest Adair Jr., Frank Adair and E. A. Erwin, officials of the bankrupt firm, were acquitted of using the mails to defraud in connection with the building of three southern hotels which never were completed. Stockholders in these projects lost nearly $3,000,000. After a month's trial, a jury decided that the Adair failure was legitimate.