11950. Bank of Tarboro (Tarboro, NC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
June 14, 1911
Location
Tarboro, North Carolina (35.897, -77.536)

Metadata

Model
gpt-5-mini
Short Digest
67455393

Response Measures

None

Description

Cashier L. V. Hart's large embezzlement/shortage discovered by the State bank examiner led officials to close (suspend) the bank in mid-June 1911. A receiver was appointed (June 22, 1911) and the institution remained in receivership with final distributions reported in 1913. No depositors' run is described in the articles; cause is bank-specific fraud/embezzlement.

Events (3)
1. June 14, 1911 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of large shortages/defalcations by cashier L. V. Hart (embezzlement), >$100,000 discovered by state bank examiner; assistant cashier arrested or confessed to thefts over several years.
Newspaper Excerpt
Following the exposure the affairs of the bank were placed in charge of State officials, and they immediately closed its doors pending further investigation.
Source
newspapers
2. June 22, 1911 Receivership
Newspaper Excerpt
Receiver Appointed For Bank of Tarboro ... Ed Pennington ... has been appointed receiver for the Bank of Tarboro ... The affairs of the bank were turned over to Mr. Pennington yesterday.
Source
newspapers
3. April 17, 1913 Other
Newspaper Excerpt
A report to the Corporation Commission by Receiver Ed Pennington of the Bank of Tarboro, shows that depositors will get 75 per cent, he having already distributed 60 per cent. The receivership was created June, 1911, and upwards of $212,000 has been collected and most of it distributed by the receiver.
Source
newspapers

Newspaper Articles (9)
1. June 21, 1911 Keowee Courier Walhalla, Pickens, SC
Article from Keowee Courier, June 21, 1911

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Article Text

SHORT CASHIER KILLS HIMSELF. Another Official of Bank in Jail on Charge of Misapplication. Tarboro, N. C., June 14.-Luther V. Hart, cashier of the Bank of Tarboro, is dead, and E. H. Hussey, assistant cashier, is in jail charged with complicity in the misapplica(101) of $50,000 in bank funds as a result of a visit to the bank this orning by J. K. Doughton, State bank examiner Hart died from a self-inflicted pistol Wound and the arrest of Hussey followed when Dank officials and Mr. Doughton made a hasty investigation of the bank books. This morning Mr. Doughton called at the bank for the purpose of making his regular inspection of the affairs of the institution. The examination was deferred until noon, and Hart remained at his post until the regular dinner hour. Going home for dinner, he went directly to his room, and a few minutes later his wife was startled to hear the report of a pistol. Rushing to the room, she found Hart lying across the bed with a bullet hole through his head. He died two hours later without having regained consciousness. The misapplication, it is believed, will not exceed $50,000. Hart had recently been involved in numerous business transactions, and it is believed a series of failures was responsible for his act. Following the exposure the affairs of the bank were placed in charge of State officials, and they immediately closed its doors pending further investigation. The institution is capitailzed at $20,000. Its deposits aggregate more than $200,000. Hart was about 35 years old, and was a member of one of the most prominent families in Eastern North Carolina. Shortage May Amount to $100,000. Tarboro, N. C., June 15.-J. K. atate bank examiner, reported to-day after a Cursury exemination that the shortage of Luther V. Hart, cashier of the Bank of Tarboro, who committed suicide yesterday, and E. H. Hussen, assistant cashier, who is in jail in default of bond, will probably reach $100,000 and may run considerably in excess of that sum. The bank is said to be practically NO will

2. June 22, 1911 The Commonwealth Scotland Neck, NC
Article from The Commonwealth, June 22, 1911

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BANK OF TARBORO SUSPENDS. Cashier L. V. Hart Commits Suicide and Assistant E. B. Hussey in Jail. THE SHORTAGE WELL OVER $100,000. Rocky Mount, N. C., June 16.--It is probable that the Bank of Tarboro will indefinitely suspend activities as a result of the shortage in the account of Cashier Luther V. Hart, who on yesterday blew his brains out rather than face embarrassment, and Assistant Cashier E. B. Hussey is now in the Edgecombe jail awaiting trial, because as yet he has been unsuccessful in raising a bond of $15,000. Around one hundred thousand dollars in the shortage that the bank examiner and his assistant have discovered and it now appears that it will require several days before the final statement can be issued. The assistant cashier has confessed to taking over twelve thousand dollars, though he has caused all his property to be given over to the bank, and weeping, states that he is "glad the suspense is over," and he knew it had to come. According to the confession of Hussey the larceny had been going on for seven years, but until Wednesday they had been successful in keeping the fact under cover. It now appears that depositors will realize only a small per cent and the stockholders are hit hard. This bank was closely connected with several manufacturing enterprises and the report is being anxiously awaited to note any embarrassment this heavy failure may cause. This evening at 4 o'clock the funeral of the dead cashier was held from the Methodist church, after which interment was made in the cemetery in Tarboro. The funeral services were conducted by Rev. McWhorter. It is said that the dead cashier has insurance to the amount of $35,000, or thereabouts, and that he was bonded for $10,000. Where this money has gone has been a matter of much speculation, though it is generally conceded that living beyond his income throughout the seven years over which the shortage extended has been the cause of the trouble. It is not generally thought that stock speculation played any part in the matter.

3. June 23, 1911 The Durham Recorder Durham, Hillsboro, NC
Article from The Durham Recorder, June 23, 1911

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Receiver Appointed For Bank of Tarboro Raleigh, June 22.-Ed Pennington, cashier of the Farmers Banking and Trust company, of Tarboro, has been appointed receiver for the Bank of Tarboro, the ccehier of which institution, L. V. Hart, shot and killed himself last week while the examiner was at work on the books and discovering shortages in his accounts. It is expected that the shortage will exceed $100,000 by a good margin. The affairs of the bank were turned over to Mr. Penuington yesterday.

4. June 29, 1911 The Commonwealth Scotland Neck, NC
Article from The Commonwealth, June 29, 1911

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Article Text

Receiver Appointed. Raleigh, June 22.-Ed Pennington, cashier of the Farmers Banking and Trust company, of Tarboro, has been appointed receiver for the Bank of Tarboro the cashier of which institution, L. V. Hart, shot and killed himself last week while the examiner was at work on the books and discovering shortages in his accounts. It is expected that the shortage will exceed $100,000 by a good margin. The affairs of the bank were turned over to Mr. Pennington yesterday.

5. November 24, 1911 The Wilson Times Wilson, NC
Article from The Wilson Times, November 24, 1911

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TARBORO LETTER. Splendid Meeting of the Masor Fire at Captain roxnalis-Negiro Dies on Train. Mrs. Nora Jenkins announces the approaching marriage of her niece, Sam Miss Sallie J. Dupree, to Mr. Quinley Carlisle, which will occur in Howard Memorial church, Wednesday, Dec. 6th. What might have been a disastrous started at eleven o'clock yesterday fire morning at the residence of Captain Foxhall in the county. About $400 damage was sustained. There was a slight accident when ladder broke injuring S. A. Nichols. a He was badly bruised but escaped without broken bones. John Williams, a negro, died on train No. 49 yesterday afternoon for about 1 o'clock. He had been sick a days in Tarboro and died on this side of His body was and placed in W. undertaking several few Mount. strong's train miles there shop; certificate taken South where S. off Rocky Arm- can the it will stay until a death made out, and arrangements made for be the sending of his body to Dunn, where he lived. Repairing the engine at the pow- the house necessitated cutting off instreet er arc lights last night. No pairment of the house service will are be made. The changes on the engine made to reduce the coal consumption and which is excessive at present will increase economy of service with out impairment of its quality. Seldom has any body of men held the such an enjoyable time as fell to lot of those present last night when A. Concord Lodge No. 58, A. F. & celebrated her 100th anniversary M. Lodge was organized in Tarboro hundred years ago to been true and through all sixty were present This just her More and one teachings has than faithful this last had when night time to the gravel fell and more chairs the be brought in to accomodate brethren. Two incidents which added pleasand enjoyment to the occasions ure the presentation to of Lord by Bro. Jno. on of Bro. A. B. of an were half presented of engraving Andrews, Cotton Edgecombe the Bro. Jr., Lodge Cot- beRaleigh. The speeches of of same and that Allsbrook in Mr. ton R. in G. presenting accepting was were that and the only regret gems Bro. Andrews was not present. Bro. Gus Heilbroner and J. P. Keech were in charge of the splendid banquet. As the Lodge was being to seated the orchestra commenced felt Auld Lang Zion and all Grace play inspiration of the occasion. and the was said by Bro. C. J. Austin then the supper was served. After this toast master R. G. Allsbrook called on several of the members for short speeches and remarks the were made by a good many of Brethren Past-Masters, J. W. Cotton, Bak- Geo. Howard, J. R. Pender and J. M. and made appropriate remarks then er a goodly number of the brethren talked of Concord Lodge and visiting lodges made remarks. Mr. Hugh Cobb has just accepted attractive offer from the Roberson will an Ruffin Co., and in consequence dispose of the stock in his present Mr. business. When seen yesterday offer Cobb said that he thought the was of the Roberson Ruffin people too good to pass by; and he was the therefore preparing to make change by the first of the year. Messrs. Wilson and Dawson Assign. The assignment of Messrs. Claude and Dawson, of Tarboro, conWilon a horse and mule business Wilducting the name of Dawson and Ree who leased the of Mill under the under Knitting son and firm announced. Wah name Wilson and Dawson is The liabilities of the two firms will about $75,000 and the nom- will aggregate inal assets of these two firms aggregate about $74,000. Mr. Henry Gilliam their attorney is that the embarrassment Tarannounces due to the failure of the Bank of boro. They have assigned all for the benefit of creditor's.

6. April 28, 1912 The Times Dispatch Richmond, VA
Article from The Times Dispatch, April 28, 1912

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# BANK LIABILITY # IS BASIS OF SUIT Appeal Involves Time of Settlement for Draft Drawn on Virginia Institution. One of those problems which arise as to liabilities when a bank fails is in issue in the Supreme Court, which yesterday granted a writ of error to Ed. Pennington, receiver of the Bank of Tarboro, N. C., in the suit of the Third National Bank of Columbus, Ga., against the National Bank of Commerce of Norfolk, and the Bank of Tarboro. The Law and Chancery Court of Norfolk gave judgment for $2,801.45 in favor of the Columbus bank. It appears from the record that J. B. Hoist & Co. drew a draft on the Tarboro Cotton Factory for the sum named, with a bill of lading for thirty-five bales of cotton attached. The draft, which was sold to the Third National Bank of Columbus, was sent to Tarboro for collection. The cotton company drew its check on the Pamlico Insurance and Banking Company of Tarboro, and the latter in payment gave its check to the Bank of Tarboro, on the National Bank of Commerce of Norfolk. The Norfolk Institution settled the next morning by a New York exchange, and at 2 o'clock the same day it received information that the Bank of Tarboro had gone into the hands of a receiver. The Columbus bank made demand on the Norfolk bank for the money, and later won its suit so far as the Tarboro bank is concerned on the ground that the draft had never been fully collected by the latter. In the petition it is claimed that the law should have been considered In the light of the North Carolina statutes and banking customs, since the entire transaction took place in that State.

7. March 14, 1913 The Times Dispatch Richmond, VA
Article from The Times Dispatch, March 14, 1913

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Spence, second wife of E. Ha Spence, to E. Harvie Spence, Jr., Miss Mary D. Spencer. Collateral h attacked the will, alleging undue fluence, without success. Altho the deceased was said to have appea in public enrobed in underclothing a linen duster, this was attributed the eccentricity of old age. In the case of Tisdale vs. the C monwealth, from Norfolk, the decis is affirmed. Tisdale was convicted conducting a gambling house, wl was raided and found to contain faro bank and crap outfit. Vari technical points were made by the fendant in attacking the proceedi by which he was convicted. Mrs. Charles I. McKee is required pay $550 to the Bunting-McNeal } Estate Company, of this city.. She I chased a lot in Boulevard Reside Park, a suburb of Richmond, wit proviso that she was to erect a ho to cost not less than $4,100, or else $550 more for the lot. It is held in opinion by Judge Buchanan that judgment of the Law and Eq Court, requiring that this sum be I because of her failure to erect house, is right and must be affirm Three Judges "Coneur." A most unusual procedure is had the case of William L. Card against the Norfolk and Western R way Company. from the Circuit Co of Carroll County. The opinion is Judge Cardwell, but there is also 1 what is called a concurring opin signed by Judges Buchanan, Harri and Whittle. These three, making majority of the court, say they ag in the judgment which reverses trial court. but do not agree in view of Judge Cardwell regarding practice of the court in ruling un section 3484 of the Code. This ma is treated by Judge Cardwell at o siderable length, involving the ext to which the court will go in review ing evidence supposed to have b already fully considered by a j Cardwell was given $5,000 dama which the lower court later set as He is now granted a new trial. Gertrude Jackson, illegitimate dau ter of William B. Williams, a pi perous Richmond negro huckster, given his entire property by a cision written by Judge Harrison. daughter born in lawful wedlock, I Mary P. Brown, loses the estate, wh was appraised at $23,830.28. The co finds that a will was in existence to about the time of Williams's dea in which he left the property to natural child, who had lived with h while his other daughter had not b associated with him for a long ti The will was missing after funeral. Bank Creditors Lose. An important case decided was t of Pennington, receiver, against Third National Bank of Columbus, This bank discounted a draft for 801.45, drawn by a Columbus conc on the Tarboro Cotton Factory, of T boro, N. C., with bill of lading tached, for thirty-five bales of cot The consignee paid the Bank of T boro, to which the draft was sent collection, by check on the Pam Insurance and Banking Company. the same town, which in turn paid Bank of Tarboro with a check on National Bank of Commerce in N folk, Va. The latter concern char the Pamlico Bank with the amount put it to the credit of the Bank Tarboro, which institution was t insolvent, a fact which was known the cashier and assistant cashier ale Judge Whittle, in rendering the de sion of the court, holds that cashier's knowledge is the bar knowledge, and that the money, I by the National Bank of Comme must be paid to the Third Natio Bank of Columbus, instead of be thrown in with the assets of the funct Bank of Tarboro for the ben of its creditors

8. April 18, 1913 The Times Dispatch Richmond, VA
Article from The Times Dispatch, April 18, 1913

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FINAL DIVIDEND FOR DEPOSITORS Loss Sustained by Creditors Breaks Records of Past Fourteen Years. SMITH FIGHTS EXTRADITION Solicitor Norris Will Go to Birmingham to Represent State's Interests. [Special to The Times-Dispatch.) Raleigh, N. C., April 17.-A report to the Corporation Commission by Receiver Ed Pennington of the Bank of Tarhoro, shows that depositors will get 75 per cent, he having already distributed 60 per cent. This is the bank in which Cashier Hart defaulted in the sum of $100,000 or more, and shot himself fatally, while Bank Examiner Doughton was there making the examination that brought to light his defalcations. The receivership was created June, 1911, and upwards of $212,000 has been collected and most of it distributed by the receiver. The final dividend yet, to be made is expected to be 10 or 15 per cent. It is interesting to know that the 25 per cent loss that the creditors of this bank will have to sustain represents more money than has been lost in all other State bank failures in the fourteen years the Corporation Commission has had supervision of State banking Interests. Solicitor H. E. Norris went to-night to Birmingham to represent North Carolina interests in the habeas corpus hearing of Ector H. Smith in his resistance of extradition to answer the charge by the Corporation Commission that he is guilty of false reports, false entries and conspiracy to defraud in the banking schemes of the State Trust Company, of which he was president. Attorney-General Bickett could not go on account of having to attend the conference of the legislative freight rate commissions and railroad officials here to-morrow, in an effort to reach an agreement as to concessions by the railroads to North Carolina shippers. Law Firm Retained. The law firm of ex-Governor W. W. Kitchin and former Judge J. S. Manning has been retained by W. O. Tarver, to defend himself, if he decides to come back to face charges, and probably Ector H. Smith and the others accused by the Corporation Commission in the States Trust Compally banking scheme, broken up during the past two weeks by the commission. Kitchin & Manning were retained by Mr. Pierce, of Augusta, some days ago, when he came here in the interest of Tarver, who, however, has not shown up since his attorneys looked into the charges that the com-

9. May 1, 1913 The Commonwealth Scotland Neck, NC
Article from The Commonwealth, May 1, 1913

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Depositors Will be Losers. Raleigh, April 17.-A report to the corporation commission by Receiver E. D. Pennington, of the Bank of Tarboro, shows that the depositors will get but 75 per cent, he having already distributed 60 per cent. This is the bank in which Cashier Hart defaulted in the sum of $100,000 or more and shot himself fatally while Bank Examiner Doughton was there making the examination that brought to light his defalcations. The receivership was created June, 1911, and upwards of $212,000 has been collected, and most of it distributed by the receiver. The final dividend yet to be made is expected to be 10 or 15 per cent. It is interesting that the 25 per cent loss that the creditors of this bank will have to sustain represents more money than has been lost in all other State bank failures in the 14 years the corporation commission has had supervision of the State banking interests.