The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-08-11


/ made note OF 1t.
upon examining the Farmers and
Merchants Bank July 2Sth, | found
that the above note had not been entered
OH their books at all. l asked Mr.. Dewey
in the presence of President Cutler what
re-discounts he had. He replied $3.50
In the National Bank of Commerce, Nor
-folk. l asked him If that was all. He
replied that it was. l then asked him if
he had any paper out that was guaranteed
by him as cashier. He Sald he did not.
81 then asked President Cutler if he had
guaranteed any paper. He replied en-
phaticaliy: No, sir l then said that
when examining the Bank OF Wayne-Mr.
Dewey then interrupted me saying: /
intended explaining that paper later ]
then asked him if he had any other such
paper out. He replied he did not.
Il proceeded with the examination and
found his books in perfect balance. HIS
general ledger showed right many thou
saEd interest, from one to fifteen thousand
dollars charged to other banks For in
stance, where he would send a deposit to
one of his correspondents for 500, he
would place in front of it when posted
in his general ledger, and it would appear
81 100.
Il asked him if this was not little ir
regular He replied that his books were
in perfect balance, and that his bank was
all right l replied that L could not tell
until heard from my inquiry.
Il then left the bank and took a drive
with President Cutler. / remarked to
him that the books of the bank were in
good shape, and ii the balances were true,
bis only trouble was the $4,000 note of the
Bank OF Wayne, unless there were other
notes OF like character outstanding. /
told him that l could not let HIM know
about the correctness of the balances until
i heard from my inquiries, which l woul''
mail that night l also told him that ]
thought it would be wise for him to get
some currency, as l feared that l would
lind shortage in the bank accounts. He
said he would and did go to Norfolk on
Friday thereafter and upon personal en-
dorsement of himself and others of his
directors secured $4,000 in currency.
Upon my arrival in Raleigh The Mon
day following / received a letter from the
Bank OF Wayne in reply to my inquiry
stating that Cashier Dewey's account Was
0serdrawn $S,9S4. Cashier Dewey had
reported to me when | was examining his
bank that he had a credit In the Bank
of Wayne $169. This showed a shortage
of $4,000. l Immediately took the
evening train for Goldsboro, and fearing
that there was some mistake / went to
the Bank of Wayne and found that the
shortage was true. Next morning !
took the train for New Bern, and upon
arriving at the Chatauqua Hotel sent for
President Cutler and Vlce-Presldent
Blades They came to my room and
informed them of the shortage.
''They Immediately sent after w. w.
Clark. their attorney. 1t then looked as
if the shortage would be small. We de-
cided that the best thing to do would ba
to get currency and continue to run the
bank. They wired for what we deemed a
sufficient amount We then sent tele-
grams to all of the correspondents, as fol-
lows:
What is our balance? Don't cash any
papers signed by II. w. Dewey, Cashier
the Farmers and Merchants Bank.
dated after August 3rd." This was signed
Il. II. Cutler. President Farmers and
Merchants Bank
Upon receiving replies we discovered
that Mr.. Dewey was considerably short IN
his other bank accounts, amounting to
1000. Mr. Cutler then called the Board
Of Directors and the stockholders togeth
er, and they decided to llqudate, request
ing me to take charge.
Upon taking charge | proceeded with
the investigation and found that the Mer
chants National Bank of Baltimore and