Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1888-03-28
SKIPPED TO CANADA.
TWO BANK Bo0DLRRs OF RALEIGH,
NORTH CAROLINA.
Quilted tho State National Bank and Fled
Took a Eegro Along-0ther
Banks Safe.
tsreciaI telegram to tho pi.pstch.l

Especial telegram to tho Dispstch.l
BIETGH, n. c., March 27.-Late last
night rumors became current that Presi-
dent Charles L. Cross and Cashier
Samuel c. White, of the State National
Bank. had absconded with large
amount of the banks funds. Rumors
soon deepened into certainty. The di-
rcctors met and were in session until
nearly the midnight hour. The result Of
the meeting was the following announce
ment of the defalcation
RALEIGH, n. c., March &c, 1893
70 the TsbNc:
The Directors OF tho State National Bank
having reason 10 believe that the president and
tho cashier Of tho bank have abscondcd with
largo amount Of tho assets, have determined %
close re doors ana turn over is affairs TO the
proper officers n the United States Government
We are Raf 70 DO aDl0 20 assure the public that
tho other banks OF the city are not affected by
By order Of the Directors Y. X. sTAYTs,
Chairman pro tenn.
This was given to the local paper just
before midnight. Very few people knew
Of the affair last night, ard every at
tempt was made to insure secrecy. This
morning when the publication appeared
it was like thunder-clap. The people
here had never known anything Of the
kind in all Raleigh's history.
EXCITED CROWDS.
Crowds gathered on the streets and
the excitement was intense. The bank
was widely known. 1t was founded by
the late John q. Williams, and for years
had tho confidence and esteem OF the
business public Two years ago G. L.
Cross was elected president. lie had
previously been chief clerk in the Office
Of the State Auditor A few days ago the
stockholders of the bank met and elect
ell five new directors, making the number
of the latter ten. The old directors
were Mrs. NJ. G. Williams, +. r. Stamps,
". =. Primrose, $. G. White, and G. T..
Cross. The new ones elected in addition
were Rev. G. T. Bailey, Ed. II Lee, ID.
Is. Ayers, NJ. I. Norris, and q. e. Leach.
The new directors were assured that the
banks condition was admirable.
BADLY DECEIVED.
They were badly deceived, and to-day
they are gloomy. They had given no.
tico that they would to-day make an in
vestigation Of the banks affairs, and this
tended to precipitate the crisis. The
capital of tho bank was 100000. 1t
now appears that the banks condition
had for some time been shaky. Some
weeks ago President Cross went TO
Canada, Ostensibly to look after some
property for the bank. A fortnight ago
Cashier White went to Canada. The lat
ter returned 10 New York, and it now
appears while there rehypothecated a
large amount Of the banks securities.
They returned some days ago and last
Thursday felegraphed to banks in Rich
mond and Baltimore to send to the State
National Bank $4,000 each, and that
they would send a check on the Park
Bank, Of New York, for $40, 600.
MONEY BY EXPRESS.
Friday night money came by express.
White went TO the express Office, took
the package. and signed the receipt
for it. Saturday morning he went
back and paid the charges on it. lie
never deposited it in the bank at all, but
kept it. When the draft for $4,000 on
the Park Bank was presented it was not
honored, as the account was overdrawn.
Saturday afternoon White remarked in
bank that he was going to Chapel Hill
to see a sick relative Cross remarked
that he had never been to Chapel Hill,
and thought he would go there and
spend Sunday with White. So both
left on the o'clock train.
TIE JANIroB, TOO.
They wero accompanied by the negro
ianltor Of the bank. They did not buy
tickets, but paid the fare on the train.
Sunday morning early they we're seen at
Greensboro. This is the last trace Of
them. II was found to-day that they
had unquestionably gone to Canada, as
the wives of both said that last Friday
their husbands remarked that they would
be in Canada Monday. They took the
ianitor with them. They carried off in
cash S42, 900, your correspondent learns.
They left only Sl5, 900 in cash in
bank. One Of the directors says that
last night the following showing Of the
banks status was made Due deposltors,
$500, 600 due Park Bank, OF New York,
see. 600 due Citizens National Bank, Of
Raleigh, sl5, 000-total, $29S,O00.
1t was shown at the meeting that the
assets ought to be as follows 1924, 600
in notes and $4,000 in mortgages on
real estate. There was Just $4,000 in
cash OF the 1924, 600 in notes. There is
no telling how much has been hypothe-
Gated.
THE STATE DEPOSITOR.
The State of North Carolina was one of
the depositors, but had luckily checked
ont much of its deposit and only had
$4,000 of the general fund and s., 500
of the fund for the deaf, dumb, and
blind institutions on deposit. Besides
this there was deposited in the bank to
the credit Of the State Agricultural and
Mechanical College $1,000 received
from the Hatch fund. There Is,
therefore, no telling what is the
amount Of tho defalcation. One OF
the directors said this afternoon
he Thought it would be S200,000. The
current estimate is s250,000. This morn
ing a telegram was sent to Washington
by the bank officials giving notice OF the
affair. District-Attorney Busbee also
cave official notice of the matter, and
Bank Examiner Z. Med. Tate was or
dered here. lie will arrive tomorrow
morning.
WROUGHT UP.
There we're some large depositors, and
these we're wrought up Of course. There
were many stories Of people who had
lust saved themselves by checking out
One Wake-couuty farmer had $4,000
on deposit. The last quarterly state
ment of the bank was made February
l4tb. at which time there was $500, 600
on deposit subject to check. Although,
as has been said, some people thought
the bank perhaps a trihe shaky, the ma
iority regarded it as perfectly sound, and
had confidence in the president and
cashier The former is young man.
ostiye OF Gates county, this State, and
is a member of the First Baptist church.
He married a daughter of Mrs. Miriam
c. Williams, who was for years after her
husbands death president Of the bank.
The family was rich and influential. The
property was left by the late president
tobn q. Williams. 10 be divided among