11803. Farmers Bank & Trust Company (Hertford, NC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
February 11, 1922
Location
Hertford, North Carolina (36.190, -76.466)

Metadata

Model
gpt-5-mini
Short Digest
ed9f7f5f

Response Measures

None

Description

Bank was closed by the State Bank Examiner on alleged shortage/embezzlement (Feb 11, 1922). No article mentions a depositor run; Hertford Banking Company took over the accounts and depositors were protected. Cashier H. C. Sullivan was arrested and later charged with embezzlement; the bank is described as 'defunct' thereafter.

Events (3)

1. February 11, 1922 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Alleged shortage/embezzlement of between $40,000 and $60,000; cashier H. C. Sullivan arrested.
Newspaper Excerpt
The Farmers' Bank and Trust company of Hertford, N. C., was closed yesterday by State Bank Examiner Lathan, according to word received here, on account of an alleged shortage in funds reported to be between $40,000 and $60,000. H. C. Sullivan, cashier of the bank, was arrested...
Source
newspapers
2. February 12, 1922 Other
Newspaper Excerpt
The directors this morning arranged with the Hertford Banking company of Hertford for bond securities to protect depositors. ... the Hertford Banking Co. promptly taking over the accounts of the defunct bank.
Source
newspapers
3. April 14, 1922 Other
Newspaper Excerpt
The case of H. C. Sullivan, charged with embezzling more than $60,000 of the funds of the Farmers Banking & Trust Co. of Hertford, will come to trial in Superior Court in Perquimans County next week.
Source
newspapers

Newspaper Articles (2)

Article from The Birmingham Age-Herald, February 12, 1922

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Article Text

Ford Puts His Name To Eight Million Dollar Bank Check By Associated Press Detroit, February 11.-A check for $8,000,000, bearing Henry Ford's signature, was turned over today to Ralph Stone, receiver of the Lincoln Motor company, completing the transaction whereby Mr. Ford becomes owner of the Lincoln property, sold at auction last Saturday. Deeds signed by William S. Sayres, master in chancery, were given Mr. Ford immediately afterwards. The deeds, when filed for record by Mr. Ford, will bear $4,000 worth of stamps. Edenton, N. C., February 11-The Farmers' Bank and Trust company of Hertford, N. C., was closed yesterday by State Bank Examiner Lathan, according to word received here, on account of an alleged shortage in funds reported to be between $40,000 and $60,000. H. C. Sullivan, cashier of the bank, was arrested and later released on $25,000 bond. The directors this morning arranged with the Hertford Banking company of Hertford for bond securities to protect depositors. New York, February 11.-A few hours after the firm of Hellman, Straus & Co., wholesale dealers in lace, cotton and net goods, had been placed in the hands of a receiver yesterday, Clarence Hellmen, 47 years old, a member of the firm, shot himself in the right temple, according to the police. He died later in a hospital. Liabilities of the firm are stated to be in excess of $950,000. Its assets are said to exceed $1,000,000. Montevideo, Febrary 11.-The Uruguayan government has accepted an offer of a loan of 3,000,000 gold pesos (normally about $3,090,000) made by a group of American bankers. The loan will be effected by means of an issue of treasury notes, at par, payable in one year and bearing 6 per cent. Brunswick, Ga., February 11.-Edward H. Mason, president of the National Bank of Brunswick, and one of the leading bankers of this section, died suddenly at his home here today from cerebral hemorrhage. Washington, February 11.-By a : vote of 276 to 8 the House today accepted Senate amendments to the farmers' co-operative marketing bill and sent it to the President for his approval. The measure, long before Congress in one form or another, would permit organization of marketing associations among farmers for co-operative dealing. Mexico City, February 11.-Mexico's financial affairs will be settled by the end of next week, according to information given the correspondent by a high official of the treasury department. The settlement involves adjustment of the nation's foreign debt, a program of national rehabilitation and reorganization, and a definite understanding with the American oil men regarding oil taxes and their payment. Indianapolis, February 11.-The first joint meeting of the representatives of the railroadmen's organizations and the United Mine Workers of America will be held in Chicago February 21, according to an announcement made today by John L. Lewis, president of the mine workers, who called the meeting.


Article from The Independent, April 14, 1922

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Article Text

H. C. SULLIVAN GOES ON TRIAL NEXT WEEK Hertford Bank Cashier May Clear Up Mystery of Where Went the Coin The case of H. C. Sullivan. charged with embezzling more than $60.000 of the -funds of the Farmers Banking & Trust Co. of Hertford, will come to trial in Superior Court in Perquimans County next week. There is much spec= ulation as to the course to be pursued by the defendant. There is a rumor that he will involve other officials of the defunct bank. as was the case in Martin County where C. H. Godwin. cashier of the Bank of Williamston was recently acquitted of embezzlement when it was brought out that officers and directors of the bank had been playing fast and loose with the bank's deposits. This is not believed to be true of the Farmers Banking & Trust Co. and many close to the situation believe that Sullivan will enter a plea of guilty and throw himself upon the mercy of the Court. promising to pay out if judgement in his case is suspended. H. C. Sullivan was cashier of the Farmers Bank & Trust Co. He completely wrecked the bank. tho its depositors were spared any loss by the Hertford Banking Co. promptly taking over the accounts of the defunct bank. It was thought at first that Sullivan had sunk the money in the Eastern Peanut Co. of which he was the founder and president. An examination of the peanut company's affairs reveals that Sullivan had not paid for the property it occupied or for stock on hand. What went with the money is a mystery still unsolved.