11714. Albemarle Bank (Elizabeth City, NC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 24, 1925
Location
Elizabeth City, North Carolina (36.294, -76.235)

Metadata

Model
gpt-5-mini
Short Digest
52a563ff

Response Measures

None

Description

The bank closed its doors Dec. 24, 1925 for lack of funds after a large embezzlement by cashier W. H. Holland was discovered. A receiver was appointed in early January 1926 and the institution remained defunct; articles describe liquidation, audits, and criminal prosecutions. No contemporaneous run (depositors gathering or panic withdrawals) is described — the closure appears driven by bank-specific adverse information (embezzlement/asset shortfall). OCR errors in some articles (dates/phrasing) were corrected for clarity.

Events (5)
1. December 24, 1925 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed Dec. 24, 1925 due to lack of funds after discovery of large embezzlement/shortage by cashier W. H. Holland (reported shortages $10,000–$30,000 and later liabilities much larger).
Newspaper Excerpt
closed its doors on Christmas Eve through lack of funds to meet incoming checks
Source
newspapers
2. January 7, 1926 Receivership
Newspaper Excerpt
appointment of P. H. Williams ... as temporary receiver. The State Banking Commission has taken charge of the bank's affairs.
Source
newspapers
3. January 15, 1926 Other
Newspaper Excerpt
audit of the bank's affairs shows ... Some of these loans appear suspicious ... liabilities will be around $115,000. ... cashier now in jail who won't talk.
Source
newspapers
4. June 18, 1926 Other
Newspaper Excerpt
trial of N. E. Hart, who was a teller in the defunct Albemarle Bank, for complicity in the embezzlement ... Hart was employed by the bank ... compicity in the embezzlement which resulted in the wrecking of the bank.
Source
newspapers
5. December 3, 1926 Other
Newspaper Excerpt
depositors get 20 per cent of their money: building remodelled for store ... Cashier Holland and his teller Hart are both in prison.
Source
newspapers

Newspaper Articles (5)
1. January 9, 1926 The St. Paul Echo St. Paul, Minneapolis, MN
Article from The St. Paul Echo, January 9, 1926

Click image to open full size in new tab

Article Text

BANK CASHIER IS HELD ON CHARGE OF EMBEZZLING Doors of Building Closed Because of Lack of Funds; Receiver Appointed. $30,000 Loss Rumored Cashier Returns From Vacation to Find Himself Placed Under Arrest. (Preston News Service) Elizabeth City, N. C., Jan. 7.-An audit of the financial condition of the Albemarle Bank which closed its doors on Christmas Eve through lack of funds to meet incoming checks, was being made Tuesday following appointment of P. H. Williams, president of the Savings Bank and Trust Company, as temporary receiver. Thus far, nothing definite has been disclosed as to the condition of the bank, or the extent to which depositors will be protected. Bank Examiner Visits. The appointment of Mr. Williams as receiver was made by Judge Henry A. Grady, presiding over the term of Superior Court now under way here after a survey of the situation by Clarence Latham, chief bank examiner for the state. As matters stand, a definite announcement as to the condition of the bank will await the outcome of the audit now being made by W. S. Coursey of the Frank A. Hill Company, certified public accountants of Charlotte. The State Banking Commission has taken charge of the bank's affairs. A final hearing on it is scheduled for Friday, January 8. Cashier Held. W. H. Holland, cashier of the bank, was arrested Thursday on a charge of embezzlement, and is held in jail in default of bond. The warrant for Holland's arrest was sworn out by W. S. Coursey of Charlotte, accountant, who began an audit of the bank's affairs Wednesday. Holland's arrest followed the discovery of a shortage of more than $10,000, according to P. H. Williams, temporary receiver of the Albemarle Bank. It is rumored that the shortage is in the neighborhood of $30,000, though hope is expressed that additional assets will be found in the course of the audit, and thereby the total of the shortage may be reduced. Holland returned from Evansville, Ind., having left for there the day the bank closed. His wife is said to be living in Evansville. "If I have done anything wrong, I'm willing to take my punishment," he is quoted as saying as he was being conducted to jail. The finding of a bank ledger and balance sheets bearing a number of accounts concealed in the bank vault, led to to the discovery of the shortage and to Holland's arrest, Mr. Coursey stated. Clarence Latham of Raleigh, chief bank examiner, was notified of the arrest and went to Elizabeth City immediately.

2. January 10, 1926 The Virginian-Pilot Norfolk, VA
Article from The Virginian-Pilot, January 10, 1926

Click image to open full size in new tab

Article Text

ALBEMARLE BANK RECEIVER NAMED P. H. Williams, of Elizabeth City, To Handle Affairs of Defunct Institution Elizabeth City, Jan. Savings Bank Trust Company here, and Albemarle Bank, ored closed doors Christmas named permanent by Judge Henry Grady, Superior Court, brief hearing. Judge Grady denied motion the defunct for out the tangled affairs of tution. The that Mr. was to hansituation, and expressed the would not hesitate assist him, the proceedings salvaging what might salvaged from the wreck the H. Holland, negro cashier the Albemarle arrested an embezzlement after He in jall for at the term 16, having failed give bond in the fixed hearing the Recorder's Court few days after his statement to Judge Grady, Mr. Williams today gave solvent assets $80,000 $85,000, against liabilities already aggregating and growing each day passbooks reveals discrepancies. The audit of the bank's affairs begun operations still is going with prospects that It continue through the coming week.

3. January 15, 1926 The Independent Elizabeth City, NC
Article from The Independent, January 15, 1926

Click image to open full size in new tab

Article Text

DID GANG LOOT COLORED BANK Findings of Auditors Arouse Suspicions-Depositors May Recover Their Money Was the looting of the Albemarle Bank, Elizabeth City's negro bank which closed its doors Dec. 24, 1925, the work of the cashier, W. H. Holland, or the result of a conspiracy upon the part of a gang? The auditors are on trails that may uncover a conspiracy The audit of the bank's affairs shows money loaned in Plymouth Durham, Portsmouth. Norfolk, Richmond, Washington and New York City. Some of these loans appear suspicious indeed, and if suspli clons are verified Holland, the cashier now in jail and who won't talk. was working with others to wreck the bank. The audit of the tangle mess is yet incomplete. but there is enough to show that the bank's liabilities will be around $115,000. Examinaltion of pass books show that many depositors were credited with deposits on their pass books and the deposits never entered on the books at all-not even on the secret ledger which Holland kept. The assets of the bank consist of about $80,000 in securties, some of which are known to be worthless; $10,000 collectable on Holland's bond and bank fixtures probably worth $1,500. It means that an assess ment will be levied against every stock holder in the bauk, each stock. holder being required by law to put up an amount equivalent to the amount of his stock in the bank. A list of the stockholders was pub. lished last week. The largest stockholder is Dr. E. L. Hoffler, holder of 35 of the $50 shares. Dr. Hoffler stands to lose a `cool $3,500 in the final settlement. P. H. Williams, president of the Savings Bank & Trust Co., who ha been appointed receiver for the do funct bank entertains some hope that the depositors will receive dellar for dollar. This is, of course contingent upon the validity of a major part of the securities listed among the assets. But it is going to go hrad with the stockholders: they not only lose what they invested in stock. but stand to lose an equivalent amount.

4. June 18, 1926 The Independent Elizabeth City, NC
Article from The Independent, June 18, 1926

Click image to open full size in new tab

Article Text

MANY COSTLY CASES IN THIS SUPERIOR COURT Hart Trial Underway on Thursday; Belhaven Man Fined For Embezzlement; East Lakers Freed Pasquptank County will entail much expense as a result of a numher of criminal cases on trial in Superior Court here this week. In one instance. the witness and mileage fees in the prosecution of a case amounted to $500 or more. this being the case of state against Joshua J. Davis formerly of Pasquotank. new of Belhaven. who was found guilty of embezzling his collections for all insurance company. and of selling insurance without a license. Judgement was withheld in the case, ending the repayment of $175 shortage. and his court costs. The trial of N. E. Hart. who was a teller in the defunet Albemarle Bank. for complicity in the embezzlement of funds. which resulted in Decthe wrecking of the bank last ember was taken up Thursday. Hart was employed by the bank for a leng time. he is a negro. of only ordinary perception. and only a few particularly believes he knew the actual conditions of the bank's affairs. This case requires many expensive witness, whose fees and mileage will run into many hundreds of dollars. Amos Bateman. and Leonard Twiof East Lake. who were capford. tured by Sheriff Carmine and Chief Holmes in April. in connection with some 55 gallous of Whiskey. while Bateman and Twiford were landing a boat down the Pasquotank River. were acquitted. The acquittal is considered remarkable. in spite of the strong testimony against the defendants, but there is no telling how a jury will view the evidence in a liquor case. The 53 gallons of liquor were poused down in:

5. December 3, 1926 The Independent Elizabeth City, NC
Article from The Independent, December 3, 1926

Click image to open full size in new tab

Article Text

CHAPTER CLOSING THE OF NEGRO BANK'S STORY of Get 20 Per Cent Depositors Their Money: Building Remodelled for Store A year ago. depositors of only the the section's Bank. Albemarle looked financial negro their Christreceiving forward to checks. The failure Savings mas due bank at of the and wild manthe carelessness to wrecked the the Cashier of agement lost their and depositors bank. bank closed its when the money had pitiful and many doors of the to depositors A notice them that week. informs bank this cent of their obtain 20 per they may the office of applying to deposits by Savings Bank in the the receiver Senator P. H. Trust Company. & receiver. The fact Williams is the crippled institution of the that out few cents on be realized even their may dollar will mean much to those time it was all. At one who lost doubtful if anything might be realized. Cashier Holland and his teller Hart are both in Prison. In the meantime. the old home of the defunet bank is undergoing building was bought The changes. and W. B. by E. and converting it owners are the new into quarters for a store. at cost has The vault about $3,000. of been torn down. and sold to the Inin its buildBank for use dustrial The floor will Main Street. ing on be lowered to the level of the street. footing of the negro the last and Street will be on Poindexter race lost. Thus ends the story of the atencourage tempt of negroes independence among thrift and members of their own race.