The state chronicle. [volume] (Raleigh, N.C.) 1883-1893, 1888-10-12
CAPT. E. R. STAMPS
MAKES A STATEMENT IN REGARD
TO THE STATE BANK.
He Reviews His Connection With the
Bank and Says He Was Guilty of No
Moral Wrong,

He Reviews His Connection With the
Bank and Says He Was Guilty of No
Moral Wrong.
The statements made by Mr.. Cross and
Mr.. White, late President and Cashier of
the State National Bank, in their trial at
the August term of our Superior Court,
and an appreciation of the good opinion
of my fellow citizens, as well as sense of
justice to myself, lead me to make this
publication. | have borne in silence the
unnecessary and unprovoked onslaught
upon myself and friends from feeling
that it might be improper to make state
ment until after the termination of their
trials in court. | can now see no object
for further delay.
Shortly after al official examination of
the State National Bank, made in April,
1888, letter was received from the Comp
troler of the Currency with such criticism
upon its condition that | was requested to
go to see him in regard thereto. | went
to Washington and had long, full and
free conversation with the Comptroller.
told him l thought if properly managed
the affairs of the bank could be adjusted,
and that if he would give me his aid, rot
requiring me to go too rapidly in charging
Off worthless paper, etc, but allowing me
to do so as l could ] would take charge
and do my best for the depositors and
stockholders of the bank. l told him if
be demanded that all necessary reforms
should be made Immediately and that all
bad debts should be charged off at once,
ETC., | would not accept the presidency and
he might as we'll appoint receiver at once.
got from the Comptroller the same day,
| think, letter from which | take the
following: II have carefully considered
the statements and explanations made by
you during your personal interview with
me this morning, and in accordance with
your desire shall express my views relative
to them in writing. 1t is very evident
that the condition of your bank demands
an IMMEDIATE and radical change in its
management, aud / must insist upon such
change being made, and the suggestions
and requirements made in my letter of the
cath ulto. being adopted. 1t appears from
what you say that Mrs. Williams is willing
to retire from the presidency and that you
are willing to take her place if an oppor-
tunity shall be given YOU IN which to place
the affairs of the bank in a satisfactory
condition. This Office is willing to afford
a reasonable time in which to accomplish
the improvements that are so necessary,
but it is expected that you will use every
endeavor to bring them about at the ear
liest day"
Thus it will be seen that ! took charge
of the bank with a full understanding
with the Department, and q consent on
the part of the Comptroller, in wise ex-
erciSe of his discretion. that might carry
for time the bank affairs as they were,
with a promise on my part to do my best
and charge off all bad paper as rapidly as
| possible. 1t is needless to detail the first
! year of my work further than to say, that
| finding matters even worse than | had ex-
pected, it was year of painful response
! bility and faithful effort to do all | could
| for the institution. In April, 1894, an
! other examination was made and on the
10th of that month | received another
letter from the Comptroller's Office in
which he says: ''The report of the exam
| inatlOn of your bank, made On the 9th
| inst, showed that there has been cOnsid
cradle Improvement in its affairs, and the
examiner states you are doing all in yOul
power to still further improve the condi
tion of the association" Another exami
nation was made after the present Comp
troller came in, and soon thereafter
special examination was ordered, at which
| the examiner and myself went over every
paper among the discounted debts, anC
there was not one that can recall, tina
was not carefully and specially considered
Among number of papers rled by the
| bank some were put down as entirely
worthless and some only estimated at
per cent of their face value. The matter
of charging them off was spoken of and
told him was doing so as rapidly as pos
| sible 1t will be remembered that in tn,
| times of which | write MONEY was tight o.
there was little chance for making money
so that with all my effort the improvement
of the bank was not as rapid as | hat
hoped it would be- In the summer O
1886 the Comptroller made a peremptor,
demand that matters should be mad
straight in three months or he would APP
point a receiver. 1t was about the end 0
this time, when we We're all much exer
cised at what might occur, that Mr.. Cross
sitting with me on one of the benches O
the Capitol Square, proposed that if b
were made President be would buy fror
the Williams estate $50, 900, or $50, 600
if so much should be necessary, of tn
stock of the bank at par and use the none
in taking up worthless paper in the bank
This proposition was startling to me O
two accounts In the first place doubte
his ability. on account of his youth AM
want of experience, to assume and direc
so responsible an Office, and in the secon
place could not see how he could carr
out his proposition l asked him how
could raise so much money. He told m
he could not raise the cash, but that hi
; father was worth about that sum an
would put in his notes endorsed by nun
: Der of the best people in his county. Th
notes, Mr. Cross said, he could have di
counted in Norfolk or elsewhere upo
their own responsibility. | told him
5 would resign at once and let him accel
the presidency. and for the purpose of e
. fecting this meeting Of the directors W;
called the next day, when the propositio
was explained, | resigned and Mr.. Gro
was elected President. At this meetiL
something was said of the kindnesH of NJ
Cross in coming to our help, when he r
S marked: q do not want it considered
t that light, but as a pure business transa
! ton" A We elk or SO after this the dire
I tors met in the rear room of the bar
d when asked Mr.. Cross if he had put
the notes He became somewhat indi
nant, and replied that a transaction
this magnitude could not be completed
n so short time, and that he would be COZ
PEELED to 90 to Gates to perfect 1t. Snort
after this another meeting was held
which Mr.. Gatling, whom Mr.. Cross to
me his fat her wanted for his attorney, W
present. and we were Informed that t
5, notes had been put in as stipulated. tt
h was afterward repeatedly affirmed by N
G. Gross and Mr.. White, while in fact it VI
1 never done in way to add one cent
W the assets of the bank, though it appear
N from the books that notes for the amOu