The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-02-19
Cashier Haigh and Teller
Myrover Arrested.
SHORTAGE, $4,000
Bank Closed Doors Yesterday to Pre-
vent Run BY Savings Depositors.
Thought That It is Solvent.
Evidence Of Long Accumu-
lated OefaIcations.
Especial to News and Observer

Fayetteville, n. c., Feb. 18.--At nin'
o'clock this morning there developed
one of the greatest and most unex
pected sensations in the history of the
city, when the Bank of Fayetteville
closed its doors and announced tina
owing TO an already ascertained short
age of $4,000 in the accounts of tht
teller and cashier of the bank. botl
of whom have been considered to u
the community the corporation com
mission had been requested to take
charge of the assets.
The bank is considered to be fully
solvent as far as may be necessary tc
pay the depositors and it IS hoped
that a large percentage of the stock
may be paid and that the bank will
be re-organiZed.
The directors have evidence tending
to show that the Cashier. John D
Haigh, and the Teller, George My
rover. have for several years been fall
styling the accounts of the bank with
corresponding banks with which bal
ances were carried. These shortages
have been covered up at each exami-
nation and it was only at the last
examination made by Mr.. Ellington
that the irregularities were discov-
cred.
The directors at once took steps Sr
go TO the bottom of the matter and
TO that end employed Mr.. Mile!
Hughes. of the Commercial and Farm;
ers' Bank OF Raleigh to so over the
books as an expert. AS the result OF
Mr.. Hughes examination it was dis
covered that the accounts of the
cashier and the teller showed a short.
age of some $4,000 which was duo
to Irregularities extending over {
period of three wears or more. The
directors have since that time met or
several occasions and canvaSsed this
situation with the result that they re-
aueSted the Corporation Commission
to take charge of the bank pending
an application for temporary re.
ceiver
Cashier and Teller Arrested.
Soon after the doors closed this
morning warrants we're sworn out by
the board of dire ,ors and Messrs
HaiGh and Myroyer were arrested. Al
this writing Mr.. Haigh has succeeded
in giving bond in the sum of ter
thousand dollars, anu Mr.. Myroyer Is
still in custody. having SO far been
unable to give the bond required for
his appearance.
While the directors of the bank
state 1t to - their opinion that the
institution IS in reality solvent and
that there will in no event be any lose
to the depositors. the real reason for
the determination to ask a receiver
is based on the fact that there arc q
large number of savings bank deposit
tors who would probably create q run
on the bank as soon as it became
known that there was shortage in
volving the cashier and the teller. This
belief is enhanced by the standing OF
their being charged with embezzle-
ment being the greater for that rea-
son.
It is understood that the character
of the shortage is charged to be small
embellishments extending over o con-
siderable period. AS will be seen from
the complaint all irregularities occur
red in the corresponding banks, their
balances it is charged, having been
manipulated SO as TO make a false
showing in order to cover up the de-
falcations.
An Old Institution.
The Fayetteville Bank is one of the
oldest institutions in the State. having
been organized years ago as the Ma
tional Bank of Fayetteville. Several
years ago it was re-orGaniZed in "a
the Bank of Fayetteville. as a State
institution. 1t has weathered many
storms successfully and had come to
gain the complete confidence of the
people here. The president. Dr. ii.
w. Lilly. has for years been known as
one of the most prominent men III
Fayetteville and has the implicit con-
fidence of the people.
During the day the bank had sever
al offers of assistance from other
banks, but under all the circumstances
locality to the prejudice of the coun-
ty and the outside dcpositors it was
thought best 10 close the bank and
have its affairs Strengthened out by d
receiver.
Mr.. IL. T. Gray Receiver.
The Corporation Commission having
been requested to take charge of tbs
assets of the bank. Judge Ferguson,
came to Raleigh today and sat il
chambers at half past two O'Clock tl
hear the application for a temporary
receiver based on q complaint uSco
as an affidavit by the corporation com
mission. in an action begun yesterday
morning in the Superior Court o.
Cumberland county. entitled the Stat,
on the relation Of the North Caroline
Corporation Commission against ths
Bank of Fayetteville.
At the hearing the plaintiff wa:
represented by John G.. Shaw. ESQ. D
Fayetteville. of the firm of Shaw ant
Robinson. This action was taken a
the instance and request OF the direc
tors of the bank. as shown in tn
resolution which is set out in TIL,
complaint and printed below. There