11731. Bank of Fayetteville (Fayetteville, NC)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
February 18, 1905
Location
Fayetteville, North Carolina (35.053, -78.878)

Metadata

Model
gpt-5-mini
Short Digest
40ae5a51

Response Measures

None

Description

Bank was voluntarily closed by directors / state examiner to prevent a run after discovery of $28k+ shortages (embezzlement) by cashier and teller. Temporary receiver R.T. Gray was appointed Feb 18; bank reorganized and reopened April 10, 1905. No actual depositor run occurred—closure was precautionary and depositors were paid in full or protected.

Events (4)
1. February 18, 1905 Other
Newspaper Excerpt
Cashier John C. Haigh, and Teller George Myrover were put under arrest but later released on $10,000 bonds. The teller has confessed to embezzling several sums.
Source
newspapers
2. February 18, 1905 Receivership
Newspaper Excerpt
application was then made to Judge Ferguson ... appointing R. T. Gray, of Raleigh, temporary receiver. He will go to Fayetteville Monday to take charge.
Source
newspapers
3. February 18, 1905 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors discovered long-continued shortages/peculations (embezzlement) by Cashier John C. Haigh and Teller George Myrover totaling about $28,000-$31,000 and closed the bank to prevent a run and to allow examination and reorganization.
Newspaper Excerpt
a notice over his signature on the door of the institution stating that there was a shortage of $28,000 in the accounts of the cashier and teller and that the bank would be closed for an investigation
Source
newspapers
4. April 10, 1905 Reopening
Newspaper Excerpt
The Bank of Fayetteville, recently closed by State bank examiner, reopened to-day under reorganization. ... there was no run by depositors, more money being paid in than paid out up to date.
Source
newspapers

Newspaper Articles (19)
1. February 19, 1905 The Times Dispatch Richmond, VA
Article from The Times Dispatch, February 19, 1905

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RECEIVER APPOINTED. Believed That Cashier and Teller Can Clear Their Skirts. (Special to The Times-Dispatch.) RALEIGH, N. C., Feb. 18.-At the request of the directors of the bank. the North Carolina Corporation Commission to-day directed State Bank Examiner J. E. Ellington to take charge of the Bank of Fayetteville until a. receiver could be appointed. Application was then made to Judge Ferguson, who was in the city, and an order obtained appointing R. T. Gray, of Raleigh, temporary receiver. He will go to Fayetteville Monday to take charge. The arrests, as well as the bank's failure, have created a great sensation. The general bellef, though, is that both gentlemen will be able, to clear their skirts of the suspicion of criminality. Haigh Is a vestryman in St. John's Episcopal Church and Myrover an elder in une Presbyterian Church.

2. February 19, 1905 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, February 19, 1905

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OFFICIALS SHORT. Bank Examiner in Charge of Fayetteville, N. C., Institution. Charlotte, N. C., Feb. 18.-State Bank Examiner J. O. Ellington, took charge of the bank of Fayetteville, at Fayetteville, N. C., today, a notice over his signature on the door of the institution stating that there was a shortage of $28,000 in the accounts of the cashier and teller and that the bank would be closed for an investigation of the books by expert accountants. Cashier John C. Haigh, and Teller George Myrover were put under arrest but later released on $10,000 bonds. The January statement showed deposits of $318,000; total assets $520,000, and capital stock $160,000. The State commission says that there will be no trouble in paying the depositors in full, but as yet it is not known what will be the loss to the stockholders. The bank was organized in 1870, and has always ben regarded as an exceedRaleigh, N. C., Feb. 18.-Judge Ferguson, sitting in chambers here today, heard the application for a receiver for the Bank of Fayetteville and appointed R. T. Gray, an attorney-at-law of Raleigh. The evidence of irregularities showed irregularities for the past four years in amounts of from $10 to $3,000. these irregularities consisting in falsifying checks drawn on balance in correspondent banks. Moreover, the teller has confessed to embezzling several sums. The directors say the closing of the bank and putting it in the hands of a receiver was to prevent a run by local parties on the savings department,

3. February 19, 1905 Daily Press Newport News, VA
Article from Daily Press, February 19, 1905

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Regarded as Strong Institution. The January statement showed de posits of $318.000 total assets $520.000 and capital stock $160,000. The State corporation commission says there will be no trouble in paying the depositors in full but that as yet it is not known what will be the loss to the stockholders. The bank was organized in 1870 and has always been regarded as a strong financial institution: Receivers Appointed. RALEIGH N. C.. Feb. 18.-Judge Ferguson, sitting at his eambers here this afternoon heard the application for a receiver for the Bank of Favetteville, and appointed R. T. Gray. an attorney-at-law of Raleigh. The evidence of irregularities showed peculations for the past three years in amounts of from $10 to $3.000. these irregularities consisting in falsifying checks drawn en balance in correspondent banks.

4. February 19, 1905 The News & Observer Raleigh, NC
Article from The News & Observer, February 19, 1905

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Cashier Haigh and Teller Myrover Arrested. $28,000 SHORTAGE, Bank Closed Doors Yesterday to Prevent Run By Savings Depositors. Thought That It is Solvent. Evidence of Long Accumulated Defalcations. (Special to News and Observer.) Fayetteville, N. C., Feb. 18.-At nine o'clock this morning there developed one of the greatest and most unexpected sensations in the history of the city, when the Bank of Fayetteville closed its doors and announced that owing to an already ascertained shortage of $28,000 in the accounts of the teller and cashier of the bank, both of whom have been considered to 103 men above reproach or suspicion in the community the corporation commission had been requested to take charge of the assets. The bank is considered to be fully solvent as far as may be necessary to pay the depositors and it is hoped that a large percentage of the stock may be paid and that the bank will be re-organized. The directors have evidence tending to show that the Cashier, John D. Haigh, and the Teller, George Myrover, have for several years been falsifying the accounts of the bank with corresponding banks with which balances were carried. These shortages have been covered up at each examination and it was only at the last examination made by Mr. Ellington that the irregularities were discovered. The directors at once took steps to go to the bottom of the matter and to that end employed Mr. Miller Hughes, of the Commercial and Farmers' Bank of Raleigh to go over the books as an expert. As the result of Mr. Hughes' examination it was discovered that the accounts of the cashier and the teller showed a shortage of some $28,000 which was due to irregularities extending over a period of three years or more. The directors have since that time met on several occasions and canvassed the situation with the result that they requested the Corporation Commission to take charge of the bank pending an application for a temporary receiver. Cashier and Teller Arrested. Soon after the doors closed this morning warrants were sworn out by the board of dire and Messrs. Haigh and Myrover were arrested. At this writing Mr. Haigh has suceeded in giving bond in the sum of ten thousand dollars, and Mr. Myrover Is still in custody. having so far been unable to give the bond required for his appearance. While the directors of the bank state it to De their opinion that the institution is in reality solvent and that there will in no event be any loss to the depositors, the real reason for the determination to ask a receiver is based on the fact that there are a large number of savings bank depositors who would probably create a run on the bank as soon as it became known that there was a shortage involving the cashier and the teller. This belief is enhanced by the standing of the two men involved. the effect of their being charged with embezzlement being the greater for that reason. It is understood that the character of the shortage is charged to be small embezzlements extending over a considerable period. As will be seen from the complaint all irregularities occur-

5. February 19, 1905 The News & Observer Raleigh, NC
Article from The News & Observer, February 19, 1905

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were present at the hearing Messrs. J. G. Shaw, attorney. and Chairman McNeill, of the Corporation Commission. and Mr. Beddingfield, member of the commission. Judge Ferguson, upon hearing the complaint, made an order for the appointment of a receiver, naming R. T. Gray, Esq., of Raleigh, and granted an order directing the bank to show cause at Whiteville, on Thursday, March 2nd, why a permanent receiver should not be appointed. Closed to Avoid a Run. The close of the bank came as the result of an adjourned meeting of the board of directors which was held at the residence of the president, H. W. Lilly, on February 16th. at 8 o'clock, there being present W. H. Lilly. J. R. Williams, W. J. McDiarmid. A. A. McKethan and W. S. Cook. The president having reported that upon an examination of the books of the bank by Mr. M. C. Hughes, an expert accountant, a shortage in the accounts of the cashier and teller of about $28,000 had been discovered, the following resolution was unanimously adopted by the directors, on motion of President Lilly as follows: "Whereas, The official examination of this bank by the State Bank Examiner, verified by its board of directors, through an investigation by an expert accountant employed by the bank, discloses a shortage in the accounts of the cashier and teller of about $28,000 which, when charged off, will seriously affect public confidence in the bank and lead to a run by depositors which cannot be met on short notice on account of large savings deposits; And whereas, the directors are confident that the general as well as savings depositors will be paid in full, the loss finally to be borne by the stockholders. but desire that no one depositor shall obtain any preference over another; therefore, Resolved, That to prevent any preference and to protect all who have trusted the bank with their money, that the Corporation Commission be requested at once to take charge of the bank's assets pending a more complete exaimnation of its affairs and possible arrangements for a reorganization of the bank. The above resolution was posted on the door of the bank this morning as a notice and the arrest of Messrs. Haigh and Myrover follo wed shortly. they being taken into custody by the sheriff and waiving examination. Bond was required in the sum of $10,000 in each case, that of Cashier Haigh being given promptly while Mr. Myrover's bond was not arranged until late in the afternoon. While the news of the closing of the bank caused a profound sensation, there exists no apprehension on the part of the depositors as they rely implicitly on the statement of the directors that they will be paid in full. Indeed, there has been a general sentiment expressed that the bank might have weathered the trouble in safety, as it is believed that it is solvent, its surplus alone being more than the amount of the shortage so far ascertained and its cash resources being large in amount. The present bank of Fayetteville

6. February 21, 1905 The Semi-Weekly Messenger Wilmington, NC
Article from The Semi-Weekly Messenger, February 21, 1905

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run by depositors which cannot be met on short notice on account of large savings deposits; and whereas the directors are confident that the general as well as the savings depositors will be paid in full, the loss finally to be borne by the stockholders, but desire that no one depositor shall obtain any preference over another: therefore Resolved, That, to prevent any preference and to protect all who have trusted the bank with their money, the corporation commission be requested at once to take charge of the bank's assets, pending a more complete examination of its affairs and possible arrangements for a reorganization of the bank. In compliance with the above resolution the North Carolina. Corporation Commission ordered the Bank of Fayetteville Fayetteville, N. C., closed. I am in possession pending the appointment of a temporary receiver. This will be done as early as possible. If you desire any of them protested please return and I will have it done. Very respectfully, JNO. O. ELLINGTON. State Bank Examiner. Charlotte, N. C., February 18.-State Bank Examiner J. O. Ellington took charge of the Bank of Fayetteville, at Fayettéville. N. C., today. A notice over his signature on the door of the institution stated that there was a shortage of $28,000 in accounts of the cashier and teller and that the bank would be closed for an investigation of the books by expert accountants. Cashier John C. Haigh and Teller George Myrover are under arrest, but were released on $10,000 bond. The January statement showed deposits of $318,000; total assets $520.000 and capital stock $100,000. The state corporation commission says there will be no trouble in paying the depositors in full but that he has as yet not known what will be the loss to the stockholders. The bank was organized in 1870 "and has always been regarded as a strong financial institution. RECEIVER APPOINTED. Raleigh, N. C., February 18.-Judge Ferguson, sitting at chambers here this afternoon heard the application for a receiver for the Bank of Fayetteville and appointed R. T. Gray, an attorney at law of Raleigh. The evidence of irregularities showed peculation for the past three years in amounts of from $10 to $13,000. These irregularities consisting In falsifying checks drawn on balance in correspondent banks. Myrover, the teller, has confessed to embezzling certain sums. He and Haigh have been released on bond of $10,000 each. The directors say the closing of the bank and putting it in the hands of a reciver was to prevent a run by local parties on savings deposits, and to prevent any creditor obtaining a preference.

7. February 21, 1905 The Semi-Weekly Messenger Wilmington, NC
Article from The Semi-Weekly Messenger, February 21, 1905

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yesterday morning to learn that doors of the Bank of Fayetteville had been closed and that there was a shortage of $28,000 in the accounts of thee cashier and teller. The first that the puble knew of the affair was early yesterday morning when a notice was seem tacked on the door of the bank over the sigantures of state Bank Examiner Ellington, President H. W. Lilly, and A. A. McKeithan, secretary, stating that there was a shortage of $28,000 in the accounts and that the bank would be temporarily closed. The news of the bank's being closed created great excitement and a gloom was thrown over the city when it became known that John C. Haigh, the cashier, and George G. Myrover, the teller, had been arrrested. Both officers of the bank were placed under arrest yesterday morning by Sheriff Marsh, and carried before Magistrade Overby, who required a bond of $10,000 of each for their appearance at the next term of court. Haigh gave bond by eleven o'clock, but 'it was late in the afternoon before Myrover was able to give bond. The discrepancy in the books dates back for more than two years. The first the directors knew of the shortage was during laititer part of December, 1904, when Mr. Williams, assistant to state Bank Examner Ellington, who had been examining the bank's books, reported to the state bank examner that he had found false entrires, and on January 9th Mr. Ellington went over the books and found What Mr. Williams was right. The directors were told of the matter and an expert accountant was then put to work on the books and a few days ago he finished his work and reported a shortage of $23,000. When this became known a meeeting or the board of directors was held on Friday night at the home of the president. Mr. H. W. Lilly, with Messrs. J. R. Williams, W. J. McDarmid, A. A. McKethan and W. S. Cook, who compose the board of directors. present. President Lilly reported that an investigation of the books by Mr. M. C. Hughes. an expert accountant, showed a shortage in the account of the cashier and teller of $28.000. Thereupon the directors adopted a resolution requesting the corporation commission to appoint a receiver. A representative of The Messanger on vesterday interviewed one of the direc. tors. He stated that Myrover told the board of directors that he took $1.500 about two years ago and he said that Myrover told the directors that he went to Haigh and told him that he had taken $1,500, and he stated that Haigh Hold him that they would go over the books and fix the matter and that there was no use of reporting it to the board of direretors. The director stated that Myrover confessed to taking $3,000 durng July, 1903. No confessions, other than the above, have come to light. There is a shortage of about $6,000 which can be traced to a Philadelphia bank. It was not constidered necessary by those knowing the financial condition of the bank, for the doors to have been closed. The bank had a surplus of labout $29,000 and so far a shortage of only $28,000 has been found and it is beleived that this will cover the amount as the books have been thoroughly examined, both by the state bank examiner and also by an expert accountant. The directors were offered financial aid from the Wilmington banks but they thought it best 10 have a receiver appointed and allow the matter to be settled in such a manmer as for there to be no possible chance for one depositor to have the advantage over another. The directors say they will be able to pay dollar for dollar and that there is no reason for the slightest anxiety on the part of the depositors. On Friday night Mr. J. Victor Grainger, cashier of the Murchison National Bank and Mr. Joseph W. Yates, cashier of the Atlantic National Bank, went to Fayetteville to see if they could be of service, and, if desired, offer financial assistance. Nothing has happened in Fayetteville in years which has SO generally shocked the entire community. Both Haugh and Myrover are of prominent Fayetteville families and there were no men in the community who were more highly regarded. They are both men of families and have never lived in an extravagant manner. They were born and reared in Fayettevile and this makes the community feel a peculiar interest in them and causes a feeling of sadness to prevail. BANK EXAMINERS STATEMENT. Whereas the official examination of the bank by the State Bank Examiner, verified by the Board of Directors through an investigation by an expert accountant, employed by the bank, discloses a shortage in the accounts of the cashier and teller of about $28,000 which, when charged

8. February 21, 1905 The News & Observer Raleigh, NC
Article from The News & Observer, February 21, 1905

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MAY REOPEN DOORS Bank of Fayetteville Awaits Examiner's Report. Could Write Off Shortage Without Inconvenience. and Depositors Are Protected Dollar For Dollar. (Spcial to News and Observer.) Fayetteville, N. C., Feb. 20.-There seems to be the greatest confidence here on the part of the depositors of the Bank of Fayetteville that they are protected dollar for dollar. Apparently there is no uneasiness whatever and only annoyance at the delay and inconvenience. There is a strong sentiment that the bank will reopen as soon as the examiner can report. The National Bank this afternoon advertises to lend money on other bank deposits to secure the citizens against any inconvenience. They are carrying over $100,000 in cash, with as much more in easy call. The whole community is quiet, and are seeming to rest in the utmost confidence. If there is no further shortage the Bank of Fayetteville could without any inconvenience, write it all off from the surplus account and, on the report of the examiners, reopen its doors emporary receiver R. T. Gray, of Rateigh, left yesterday for Fayetteville to take charge of the bank.

9. February 21, 1905 The Times Dispatch Richmond, VA
Article from The Times Dispatch, February 21, 1905

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TELLER CONFESSED. Speculation for Three Years in Various Amounts. (Special to The Times-Dispatch.) RALEIGH, N. C., Feb. 20.-Judge Fergusson, sitting at Chambers here Saturday afternoon heard the applicuation for a recelver for the bank at Fayetteville and appointed R. T. Gray, an attorney at law, of Raleigh. The office of irreguInrities showed speculation for the past three years in amounts of from $10 to $3,000, these irregularities consisting in falsifying checks drawn on balance in correspondent banks. Moreover, the teller, has confessed to embezzling certain sums. He and Haigh have been released on bond of $10,000 each. The directors say the closing of the bank and putting it in the hands of a receiver was to prevent a run by local parties on savings department and to prevent any creditor obtaining a preference.

10. February 23, 1905 Goldsboro Weekly Argus Goldsboro, NC
Article from Goldsboro Weekly Argus, February 23, 1905

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SENSATION IN FAYETTEVILLE CAUSED BY FAILURE OF THE BANK. Shortage of $28,000 in Accounts of Cashier and Teller Disclosed by Expert Accountant and State Examiner. R. T. Gray, Receiver. Wil. Star. The Bank of Fayetteville, until a week ago, regarded as one of the strongesi financial institutions in the Cape Fear section, closed its doors Saturday morning and its affairs are now in the hands of State Bank Examiner J. O Ellington. Cashier John C. Haigh and Paying Teller George G. Myrover, the trusted employes and officials of the bank and among Fayetteville's most highly esteemed citizens, have been arrested and are now under bond of $10,000 until the responsibility for a shortage of $28,000, discovered by an examination of the State Bank Examiner and an expert a countaut, is fixed. It is claimed that the bank is perfeetly solvent and that depositors will receive dollar for dollar upon their deposits. The capit di sto Is of the bank is $160.00. The January statement of the bank showed deposits of $318,000; total assets, $510,000; surplus and profits about $26,000. The men arrested have many firm friends here, who still maintain the utmost confidence in their integrity. Raleigh, Feb. 18. -Judge Ferguson, sitting at chambers here this afternoon, heard the application for a receiver for the Bank of Fayetteville and appointed R T. Gray, an attorney at law of Raleigh.

11. February 26, 1905 The News & Observer Raleigh, NC
Article from The News & Observer, February 26, 1905

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REORGANIZE BANK Chances Against Going Into Hands of Permanent Receiver. (Special to News and Observer.) Fayetteville, N.C., Feb. 24.-From present indications the Bank of Fayetteville will be reorganized without going into the hands of a permanent receiver. Looking to a conference to this end notices have been sent out to the stockholders for a meeting on the 15th ult., when the question of a reorganization will be definitely determined. Pending this meeting Judge Ferguson has postponed hearing, of which notice to the bank was given to appear at Whiteville on the 2nd of March and show cause why a permanent receiver should not be appointed. Acting under the authority of an order of the court the receiver has paid in full depositors of the bank who paid in their money on the day before the doors of the bank were closed. It was known on that day that the bank would be closed and all deposits were kept separate by the officers of the bank. They have been paid in full with the exception of course of a charge off in cases of over-drafts on checks against balances. There is now no doubt whatever that all depositors will ultimately be paid in full and the general impression is that a re-organization of the bank is most likely.

12. February 28, 1905 The Semi-Weekly Messenger Wilmington, NC
Article from The Semi-Weekly Messenger, February 28, 1905

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PARTRIDGE WILL HANG. / No Appeal Will be Made-The General Society of the Sons of the Revolution to Meet in Washington. (Special to The Messenger.) Raleigh, N. C., February 25.-Gentlemen from Fayetteville who are here say that the Bank of Fayetteville, which went into the hands of a temporary receiver this week will be re-organized very soon. One of the gentlemen added: "If the lawyers would only let it alone." The Fayetteville people spoke about the conviction and sentence of Walter Partridge, who is to be hanged April 5th, and say their people were very well satisfied with the promptness for conviction and said no appeal would be made. Partridge was well defended. It is the second time that a trial for such a crime has been held there during the past five years, everything being done in the most orderly manner without any attempted lynchings. The police here were notified today of the murder last night at Osgood of a negro named Will Allen, by another negro Will Carrington. A pistol was used. Jack Allen, the father of the murdered man lives here and the police took him the news of his son's death. The regular trinnenial meeting of the General Society of the Sons of the Revclution will be held at Washington April 19th, 20th. Headquarters to be at the Willard Hotel. On Wednesday the members and their guests will go to Annapolis on a special train, and will meet in the Senate Chamber of the capitol there where Washington resigned his commission as Commanding Chief of the Continental Army. Afterwards the members and guests will be received by the governor of Maryland, luncheons will be served at Carvel Hall, in the afternoon there will be a special drill and dress parade by the United States Naval Academy cadets April 20th the members and guests will go to Mount Vernon, remaining there for several hours and on the evening of that day the general society will entertain its members and guests at a banquet at the Willard. Colonel Thos. S. Kenan is the president of the North Carolina Society and F. H. Busbee, Esq., its vice-president.

13. March 14, 1905 The News & Observer Raleigh, NC
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IN AND ABOUT THE CITY. Rev. Julian Ingle, who preached at the Church of the Good Shepherd on Sunday left yesterday for his home at Henderson. The friends of Mr. Tal. H. Murray regret to hear of his extreme illness. His condition was reported as very critical last night. Mr. Ashley Horne, of Clayton, was here yesterday. He says that the capacity of the cotton mill there has been doubled and all the machinery is on hand for this. Mr. R. T. Gray receiver of the Bank of Fayetteville, after spending Sunday here returned to Fayetteville yesterday. He says that the directors of the bank are to meet this week. State Treasurer B. R. Lacy returned yesterday from Wilmington, where on Sunday afternoon he addressed a large audience at the Y. M. C. A. The Wilmington papers speak in high praise of his address. Mr. O. M. Neal, who has been visiting relatives in Pittsboro, has returned to Raleigh. He was four vears in the army and two years in prison camp, a brave Confederate soldier, and his friends are glad to see him home again. Mr. J. S. Atkinson reached here yesterday from Louisiana, called home by the serious illness of his four-yearold daughter, Jean, who is very low with meningitis. The friends of the family are very greatly concerned over her sickness. AAn alarm of fire yesterday morning shortly after eleven was caused by the discovery of smoke from a flue in a room at the home of Mr. Klem Clements, corner Morgan and Harrington streets. Mr. Clements extinguished the flames and the fire department, which arrived promptly, was not needed. There was no ball game yesterday afternoon between the A. and M. and the Trinity Park High School team as the latter did not come, supposedly because of the bad weather. Capt. Neill S. Green, of that team, who spent Sunday at his home in Lillington, was here. With fair weather the team expects to play at Wake Forest today.

14. March 16, 1905 The News & Observer Raleigh, NC
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III on Early Reorganization STOCK TO BE SCALED The Institution Was Solvent and Surplus Sufficient to Pay Shortages of Cashier and Teller. Act of Directors in Shutting Doors Endorsed. (Special to News and Observer.) Fayetteville, N. C., March 15. a meeting of the stockholders of the Bank of Fayetteville, which was closed during February by reason of shortages in the accounts of Cashier Haigh and Teller Myrover, to the amount of about thirty thousand dollars, it was today determined to re-organize the bank with a capital stock reduced from $163,000 to $100,000. The re-organization will be completed as soon as possible and the bank will resume business within a few weeks at the latest. The institution has proved to be solvent and there have been offers of assistance from several important banking firms, which, however, will not be availed of. It is thought that in the re-organization the president of the bank, Dr. H. W. Lilly, will be re-elected. The stockholders met at the court house at o'clock, with Mr. H./MeD. Robinson in the chair and Mr. E. R. McKethan as secretary, 1,618 shares out of 1,630 being represented in person or by proxy. Dr. H. W. Lilly, the president of the bank, explained the purpose of the meeting and made a plain, frank statean ment and explanation but not apology of the action of the directors in closing the doors on the 18th of February, stating that while the bank was solvent and offers of assistance were freely made, the apprehension of a run by the depositors in the excited state of the community and of the disastrous consequences of such a run, had caused the directors after a care. ful discussion to take a step which seemed best to them and which, though at first criticised; had since been approved by nearly every pe son interested, both at home and abroad. He stated that the surplus and undivided profits would he suwflicient to meet the amount of the shortages, that the bank had a valuable managed, business, was conservative for lorge but that the capital was the amount of the deposits and urged a reduction from $163,000 to $100,000 in capital by a voluntary scaling on the part of the stockholders of their holdings. The remarks of Dr. Lilly, in whose integrity, prudence and business sagacity the people of this section have perfect confidence, were mainly, frank and straightforward and made a decidedly favorable impression, Temporary Receiver R. T. Gray, of Raleigh, made a statement of the condition of the bank up to March 10th, which, after charging off the losses, showed the result stated in Dr. Lilly's statement, and State Bank Examiner Ellington, who was present by request of the directors and with the permission of the corporation commission, confirmed the statement of the president and receiver except as to their estimates on doubtful paper, which he stated he considered that Dr. Lilly had estimated to be of too little value out of an excess of caution. An amendment to the charter auMr. S. H. McRae then offered a reso the thorizing reduction of the capital stock was unanimously adopted and Mr. S. M. Mc. Rae then offered a resolution providing for a reduction of the capital stock to $100.000 by voluntary scaling by the stockholders, and directing the board of directors to take the necessary steps to close the receivership and resume business early as possible. A stock vote being called for. only ten shares voted in the negative and it is understood that the holder of these will assent to the plan. Col. Chas. W. Broadfoot. with a few introductory and feeling remarks Cffered the following resolutions, which he had prepared without the suggestion of anyone and which were unanimously adopted 'The stockholders of the Bank of Fayetteville in special meeting duly called and held in Fayetteville, N. C., March 15. do resolve, That we heartily endorse and approve all that the president and board of directors have don in our behalf during the late trouble and we hereby tender them, each and all, our thanks and assurar.ces that we are ready. now and here to stand by them with confidence increased rather than lessened in their business capacity. fidelity and integrity: that we thank State Bank Examiner J. O. Ellington for his manly discharge of an unpleasant duty: that we thank the officers of the National Bank of Fayetteville for many courtesies extended to us and our customers; that we thank Messrs. Grainger and Yates cashiers respectively of the Murchiof son and Atlantic National Bank Wilmington for their midnight ride to Fayetteville with proffered aid most politely and cordially tendered; that we are profoundly grateful to the good people of our city and surrounding country for words of confidence, for their patience in bearing temporarily the locking up of their money, for their kindly forbearance of harsh critiour we are now our and cism the termined. go general of on, acts taking of good: and again here. that officers to reorganize place, taken sus- de- for pended but not forfeited, as a sound

15. March 21, 1905 The Progressive Farmer and the Cotton Plant Raleigh, NC
Article from The Progressive Farmer and the Cotton Plant, March 21, 1905

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STATE NEWS FROM CURRITUCK TO CHEROKEE. Items of Interest Gleaned from Our Correspondents and Exchanges. Mr. Andrew Carnegie has given $12,500 for a library at Livingston College, the colored institution at Salisbury. On the 10th inst. the Senate confirmed the nomination of Hunter Sharp, of North Carolina, as consul at Keobe, Japan. Governor Glenn has accepted an invitation to deliver the commencement address at the colored A. & M. College in Greensboro, April 27th. It is announced that the bucket shops or exchanges in various parts of the State have united in the matter of retaining counsel for the purpose of contesting the anti-bucket shop law passed by the recent Legislature. Raleigh dispatch: It was decided to-day by the building committee of the A. & M. College to have no interruption in the work on the agricultultural building. The contract had only been let for exterior work, but to-day a further contract was given for completion, so it can be equipped for the opening of the fall term. Fayetteville dispatch 15th: At a meeting of the stockholders of the Bank of Fayetteville, which was closed during February by reason of shortages in the accounts of Cashier Haigh and Teller Myrover, to the amount of about thirty thousand dollars, it was to-day determined to reorganize the bank with a capital stock reduced from $163,000 to $100,000. State Auditor B. F. Dixon finds that the cost of the Legislature just adjourned was $69,179.16, and there may be odds and ends yet to come in that will run it up to $70,000. The cost of the 1903 session was $67,000. Possibly a thousand dollars of the additional cost of the recent session was due to expenses connected with the Code Commission and the Code Committee. It is a matter of note that Republicans in the last Legislature passed a resolution expressing their thanks and appreciation for the courtesy and uniform consideration shown them throughout the session. This polite action is creditable to both Democrats and Republicans, and shows that when the political heelers are far removed men can meet one another in the open. After June 1, 1905, the standard weight of a bushel of corn meal in North Carolina shall be 48 pounds, and all bags shall contain two bushels or one bushel or one-half bushel or one-fourth bushel or one-eighth bushel respectively, each bag to be marked whether the meal is bolted or unbolted, the amount it contains and themic 1

16. April 4, 1905 The Progressive Farmer and the Cotton Plant Raleigh, NC
Article from The Progressive Farmer and the Cotton Plant, April 4, 1905

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STATE NEWS FROM CURRITUCK TO CHEROKEE. Items of Interest Gleaned from Our Correspondents and Exchanges. Strawberries are reported to be growing finely in the trucking sections of Eastern Carolina. Carnegie adds $10,000 to his gift to the Charlotte library for the enlargement of the building. Active work has begun on the new Charlotte depot. The building will be completed by September. The City National Bank, of Greensboro, will, about June 1st, move into the finest bank building in North Carolina. The dispensary fight. in Asheville is getting warm. Both sides are claiming they will win next Thursday in the election. Henry Gassaway Davis, the Democratic candidate for Vice-President last fall, will visit Asheville next week. He is 84 years of age. The report of the Audubon Society shows that much progress has been made during the past year in protecting the birds of our State. The case against Bynum, for the murder of Alford in Raleigh about January 1st, came up in Wake court this week and was continued for the second time. It goes over to the July term. The report of the Census Bureau issued Thursday shows that 743,404 runing bales were ginned in North Carolina in 1904. This was equivalent to 697,452 bales of 500 pounds, as compared with 528,707 bales ginned in 1903. Andrew Carnegie, the multi-millionaire and philanthropist, announces that he will donate $50,000 toward the erection of a library building for the North Carolina State University provided a like amount is contributed by our own people. Dr. C. A. Misenheimer, a Charlotte physician, has been bound to the Superior Court on the charge of violating the Watts law by giving prescriptions for whiskey to persons not under his care for treatment. A colored physician of Charlotte has been bound over on a similar charge. The Bank of Fayetteville, which was closed recently on account of shortages in the accounts of the cashier and teller, will resume business April 10th. Mr. J. O. Ellington, present State bank examiner, will be vice-president and general manager, and Miller Hughes, of Raleigh, will be cashier. Charlotte Observer: It is learned that the sales of fertilizer tax tags by the Department of Agriculture this year are about what they were two years ago, showing a falling off of about 20 per cent, as compared with the great sales of last year, when the total reached the great figure of $97,000, that of the year before having been about $80,000. Statesville Landmark: People who patronize blind tigers have their troubles. A Greensboro paper tells that in that town last Sunday a young white man was approached by a negro and asked if he didn't want some liquor. The young man did and he promptly handed the colored man a dollar and sat down to wait

17. April 11, 1905 The Times Dispatch Richmond, VA
Article from The Times Dispatch, April 11, 1905

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Bank Reopens. (Special to The Times-Dispatch.) FAYETTEVILLE, N. C., April 10.-The Bank of Fayetteville, recently closed by State bank examiner, reopened to-day under reorganization. H. W. Lilly, president: J. O. Ellington, vice-president; C. M. Hughes, cashier; John Hightower, teller. There was no run by depositors, more money being paid in than paid out up to date.

18. April 14, 1905 The Semi-Weekly Messenger Wilmington, NC
Article from The Semi-Weekly Messenger, April 14, 1905

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FAYETTEVILLE BANK OPENS Business Going On as Usual-Laying Corner Stone of Church-A War Story-Home Marriage. (Special to The Messenger.) Fayetteville, N. C., April 10.-The Bank of Fayetteville, recently closed by State Bank Examiner Ellington, reopened for business today under the reorganization: Dr. H. W. Lilly, president; J. O. Ellington, vice president: C. M. Hughes, of Raleigh, cashier; John Hightower, teller. There was no indication of a run by depositors, about $8,000 paid in, and only $300 paid out in first three hours. The bank building had been renovated in the interior and repainted on the exterior for the reopening. Very interesting exercises took place at Holt-Morgan Mills village at four o'clock yesterday afternoon, the occasion being the laying of the corner stone of the New Coloney Methodist church. The address was delivered by Rev. D. H. Tuttle. pastor of Hay Street Methodist church of this city, and a very excellent song service was given by the choir of the village, led by Mr. A. A. Cain. A prominent society woman of Wilmington, who has been paying a visit in this city, tells a good war story. Colonel J. W. Atkinson, of Wilmington, was captured during the war and c.mfined on Johnson's Island, having, among the few possessions of a prisoner, a pair of remarkably fine field glasses. One day a Federal officer, attracted by their superiority, asked to look at them, and, after examination, remarked with the brutal coolness of one in authority, "I believe I'll keep these: "Don't you mean," asked Colonel Atkinson, "that you intend to anpropriate my property?" "That's it," replied the other, with a triumphant leer. "Well," said the Confederate prisoner, "the Union soldier, with a star on his collar has turned thief, it seems," and he gave way to sundry other strong language-but bis keeper retained the glasses. The other day Colonel Atkinson 1eceived a letter from this officer in a some northerntown, reminding him that when on Johnson's Island he had given to the writer a set of glasses, which he wished to return. Colonel Atkinson's reply was emphatic, prompt and to the point: "I did not give them to you; you stole them. Send back my glasses!" Mr. Byrd, of the Wooten Grocery House on Gillespie street, and Miss Ellen Sedburry, youngest daughter of the late Bond E. Sedberry, will be married at 8:30 o'clock tomorrow evening. at the home of Mrs. Bond E. Sedberry on Person street, Rev. Dr. D. H. Tuttle, pastor of Hay Street Methodist church, performing the ceremoney. Miss Sallie Cazeaux, of Wilmington, is the guest of the Misses Hart on Coo! Spring street. Past Grand Chancellor J. W. Atkinson has been elected representative to the Grand Lodge Kinghts of Pythias, at Charlotte, in June, from Cumberland Lodge, No. 5.

19. November 22, 1905 The News & Observer Raleigh, NC
Article from The News & Observer, November 22, 1905

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O RESTITUTION OF PART When Case Was Called the Bank Joined With Solicitor in Asking for Suspension "of Judgment. Bonding Company Pays Bank $17,500. (Special to News and Observer.) Fayetteville, N. C., Nov. 21.-Messers. John C. Haigh and George Myrover. formerly cashier and teller of the Bank of Fayetteville, plead guilty to the charge of embezzlement in the Superior court today and judgment was suspended on payment of costs, restitution having been made to the bank. Hon. Fred Moore, Judge presiding had the forlowing order entered in the several cases: North Carorina, Cumberland County, In the Superior court. Nov. Term. 1905. State vs. John C. Haigh and George Myrover. The defendants, J. C. Haigh and George G. Myrover came into court accompanied by their counsel and plead guilty to the bill of indictment pending against them and it appearing to the court that restitution has been made, upon the recommendation of the Bank of Fayetteville, the private prosecutor, and by the consent of the solicitor, it is ordered that judgment be the same is hereby suspended upon the payment of the costs of this, action to be taxed by the clerk of this court.' Immediately after court met this afternoon the argument. of counsel in a petty larceny case was stopped and the case of Messrs. J. C. Haigh and G: G. Myrover. charged with embezzlement was called. N. A. Sinclair, Esq.. of counsel for Mr. Haigh, addressed the court and entered the plea of guilty. He said a settlement had been arrived at whereby the bank and the Bonding Company were satisfied and that the ends of justice would be met if judgment was suspended on payment of costs. Judge Sutton made a like statement in behalf of Myrover. Hon. John G. Shaw. of counsel for the Bank of Fayetteville, said a thorough investigation had been made and a conference of those interested had been had and that he thought the ends of justice would be met if this was done. Solicitor Lyon gave his approval. The amount restituted was $17,500. the total amount of the trust company bonds. Mr. Haigh was represented by N. A. Sinclair, Rose and Rose and H. L. Cook: Mr. Myrover, by Judge Sutton; The Bank of Fayetteville, by Robinson and Shaw and S. H. McRae: and the Trust Company by Edmond Watkins, of Chattanooga, Tennessee. A great sensation was created last February by the closing of the doors and the appointment of a receiver for the Bank of Fayetteville upon the discovery that peculations had been going on for some time by the cashier and the teller, both of whom had long been trusted officers of the institution. On application of the bank Mr. R. T.Gray. of Raleigh, was receiver and the doors of the bank pending investigation were kept closed until its reorganization a month or so later. A thorough examination of the books showed shortages in the atcounts of the two men involved, which amounted in the aggregate to about $31,000. which was fully covered by the bank's surplus. The re-organization was effected with a reduced capital. so as to provide a surpius fund which had been seriously impaired by the embezzlements, The settlement by which the bank obtains from the Trust Company $17.500. will strengthen the institution. although the expense of closing the doors, of the receivership, counsel and expert accountants' fees was of course heavy. The teller of the Bank, Mr. Myrover. made soon after the closing of the doors a full and complete statement of his connection with the shortages, which he stated had been going on for several years. chiefly by manipulation of accounts with corresponding banks. Cashier Haigh for a whiie contended that he was not criminally responsible and it was thought that he would resist conviction.