The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-08-06
A RECEIVER NAMED
Thomas Daniels to Handle
Banks Affairs.
Appointed by Judge Brown Yesterday Evening
shortage Amounts 10 at Least
$4,000.

Yesterday morning Mr.. ]. o. Ellington,
the State Bank Examiner, who had taken
charge of the affairs OF the Farmers and
Merchants Bank of New Bern, under dl-
rection of the Corporation Commission
and with the approval of the officers OF
the bank, reported to the Commission.
stating that the bank was insolvent, the
shortage amunting to at least $4,000, and
that the cashier, T. w. Dewey, was alb
sent and his whereabouts could not be
ascertaIned.
Upon receiving this report the Corpora
ton Commission, through Judge T. i.
Womack as counsel, applied to Judge
George H. Brown, who was in Raleigh
yesterday, at chambers, for an order ap
pointing a receiver. He did yesterd ~
evening, naming Mr.. Thomas Daniels, of
New Bern, fixing his bond at $4,000.
Mr.. Daniels was at once notified of his
appointment.
Judge womack will go to New Bern
this morning with the original papers
in the case.
WHAT IS THE DEFICIT?
There were many inquiries yesterday as
to the amount of the deficit. There was a
report in Raleigh that it was So; 900, but
a member of the Corporation Commls-
sion was quoted as saying that 1t would
reach 75,000-the exact amount OF the
capital OF the bank. A telegram was sent
to State Bank Examiner Ellington and he
sent this answer:
New Bern, n. c.. Aug. 5, 1903.
Jos. Daniels. Raleigh, n. c.:
"All accounts not in. Cannot state the
amount Will be large.
"JNO. O. ELLINGTON"
HOW 1T WAS DISCOVERED.
1t seems that one of the directors of the
bank had suspicious that the books had
been changed, and he wrote or te!egraphed
to State Bank Examiner Ellington TO
come to Morehead City TO meet am. En-
route to Morehead, Mr.. Ellington stopped
TO examine bank and said that 1t had
re discounted for the Farmers and Mer-
chants Bank of New Bern $1,000 note
for New Bern concern. He went on TO
New Bern and examined the Farmers and
Merchants In the exhibit and statements
given him there was no record OF this
s. 600 that had been rediscounted by the
last bank examined. The explanation did
not satisfy the Bank Examiner. In the
statement given him or examined by HIM
he also saw that there were claims of
proved that instead of some of those
banks being indebted to the New Bern
bank, that bank was in fact indebted TO
them Mr.. Dewey, an expert banker him.
sell, saw that he could not longer cover
up his shortage, and decided TO leave be-
fore the storm broke.
TCAD NONE OF HIS FRIENDS.
He left North Carolina without telling
n hot ha had
or appealing to them for help or sympathy.
He is a secretive and reserved man. He
has devoted friends and relatives who
would have advanced large amounts to
cover the shortage. He evidently de-
teTmined to bear alone the punishment o.
his wrong doing and not permit them to
know of the shortage until it was too
late for them to undertake to bear the
burden of his wrong-doing. He passed
through Goldsboro on Saturday night. He
did not let his brothers o1s relatives there
know of his plans, though he had doubt
less already matured them. He came 20
Raleigh that night TO see his wife who
was visiting relatives here. He told her
that he had been specializing with the
banks funds, had lost heavily, and must
leave at once. He left that night-no-
body knows where.
APRIL STATEMENT.
The following is the statement OF the
bank as given IN the report of the Cor
poration Commission at the close OF bust
ness, April 9th. last:
RESOURCES.
Loans and discounts ......... S13S, ) 1884, 90
Overdrafts :. :. =. :. :. -. 6,74I10
North Carolina State bonds -. $4,000
Banking houses furniture and
fixtures :. :. ;. :. ;. =. 100000
All other stocks. bonds, and
mortgages :. :. :. :. :. :. :. 100000
Demand loans :. :. :. :. :. -. 10000
Due from banks and bankers :. 76227.72
Cash items . . :. . :. :. :. :. 6,O37 3S
Gold coin :. :. :. :. :. :. :. -. 5000
Silver coin, including all minor
coin currency 1,114.0S
National bank notes and other
U. S. notes :. ;. :. ;. :. -. 9O23.Oo
Total Soe- 900 o.