The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1903-08-11

note was Irrcgular%

moving tlaJ THIS nOJt WIS uIt6ulIi
| made a note OF 1t.
Upon examining the Farmers and
Merchants Bank July 2Sth. / found
that the above note had not been entered
on their books at all. l asked Mr.. Dewey
in the presence OF President cutler what
re-discounts he had. He replied $3.50
IL the National Bank OF Commerce, Nor
folk. | asked him if that was all. lie
replied that it was. | then asked hlm II
he had any paper out that was guaranteed
by him as cashier. He said he did not.
4 then asked President Cutler if he had
guaranteed any paper. lie replied en-
phaticaIly: No, SIR I then said that
when examining the Bank OF Wayne-Mr.
Dewey then interrupted me saying; 1
intended explaining that paper later l
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
sand 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 a 5 in front of it when posted
in his general ledger, and 1t would appear
s.. 100.
81 asked him if his was not a little II
regular. He replied that his books were
in perfect balance, and that his bank was
all right. | replied that | 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 We're III
good shape, and If the balances We're true,
his only trouble was the 81, 600 note of the
I4pk of Nvay,,a nplaS, thor, ,,g,va ,tl,g,.
notes of like character outstanding. l
told HIM that | could not let HIM know
about the correctness Of the balances until
| heard from my Inquiries, which | wouIa
mail that night. | also told him that /
thought it would be wise for him to get
scme currency, as | feared that / would
ind a shortage IN the bank accounts. He
SAID he would and did 90 to Norfolk on
Friday thereafter and upon personal en-
| dorsement of himself ana others of his
directors secured $25, 900 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
averdraWn $8.984. Cashier Dewey had
reported TO me when ! was examining his
bank that he had a credit IN the Bank
OF Wayne $3.50. This showed a shortage
VI PLCrECO ~ liit
evening train for Goldsboro, and fearing
that there was some mistake / went to
the Bank Of Wayne and found II the
shortage was true. Next morning
took the train for New Bern, ard upon
arriving at the Chatauqua Hotel sent for
President Cutler and Nce-President
Blades. They came to my room and /
informed them of the shortage.
They Immediately sent after ". W.
Clark, their attorney. 1t then looked as
II the shortage would be small. We de-
clded that the best thing to do would be-
to get currency and continue TO run the
BE- k They wired for what we deemed q
sufficient amount. We then sent tele-
grams to all OF the correspondents, a. fol-
lows:
What is our balance? Don't cash any
Papers signed by L. ". Dewey, Cashier
the Farmers and Merchants Bank,
dated after August Bird This was signed
L. H, Cutler, President Farmers and
Merchants Bank
Upon receiving replies we discovered
that MI. Dewey was considerably short In
his other bank accounts, amounting to
$4,000. MIR. Cutler then called the Board
Of Directors and the stockholders togeth-
er, and they decided to iiquidate, request
ing me TO take charge.
Upon taking charge I proceeded with
the investigation and found that the Mer-
chants National Bank of Baltimore and
the Glrard National Bank Of PhiIadeIphja
each held a note for 10000 Ike the one
discovered IN the Bank Of Wayne.
found a shortage of $1,000 in Tie stocks
and bonds, a shortage in cashier drafts
outstanding OF $4,000, a shortage in bills
receivable and cash OF $500, ana various
other shortages, bringing the total I'D TO
s125, 900.
Upon investigating the worth OF the
Southern Hosiery Mills Company and r.
Il. Pelletier, its treasurer. found them
bankrupt. Mr.. P~elletier was the attorney