The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-05-12
Sensational Revelations Fol
low Investigation Of AT
fairs of Wrecked Banks.
ACCOUNTS. .OVERDRAlVN
I'm MANY INSTANCES
Name OF cogbill Figures Con
spicuously in Transactions.
Financial Condition Of Two
Institutions at the Close
Of Business on
April nth.

IRECT and vigorous in It's lam
guage referring to the recent
operations of the two Mecklcn-
IL burg banks. now under investi-
cation by the State Corporation
Commission. the report OF Special Ac-
countant II. 3. Boudar. made public
yesterday, contains some sensational
revelations.
The conclusions OF the accountant
arc that the two banks have a surplus
OF 346,363.so. the total assets being set
down a. $45s.T6122, which. II perfectly
good and capable Of being realized
upon. would probably pay all indebted
ness and the expenses of the receivers
in winding up the affairs OF the de-
funct institutions. Here. however. is
the difficulty. for In these assets are
included old notes or long standing;
overdrafts, cash items and notes of
i. E. Cogbill amounting to sl7o.67+6S;
notes OF the Kershaw Manufacturing
Company for $4,000; notes OF other
parties for $4,000 and various notes
OF the East Coast Lumber Company,
.all embarrassed and the question of
their solvency not known
Had and Worse.
The report takes up first the Chase
City branch. and though conditions are
1Ound Dy Tie mere W pc
very bad he declares that those at the
Bank OF Mecklenburg are much worse.
Continuing. Mr.. Boudar declares that
C.. Hask:ns. Jr the cashier of the for
,ner institution, allowed various parties
TO overdraw their accounts and TO ne
rotfate loans without the knowledge
4 OF the board and that the report OF the
cashier To the head Office on February
IL. 1905. was falslfed to the amount
of $1,000. The accountant finds that
=. draft of the kershaw Manufacturing
r,ompany, dated January 6, 1907. was
not posted as IL should have been. to
The account of bills payable.
Many similar details ip' connection
with the branch bank are set out In
the report. and the accountant passes
TO the consideration OF the Bank OF
s Mecklenburg.
Reports Fnlsided.
Here the cashier. e. ". Overhey. al
lowed people to overdraw and nego-
tiate loans without the knowledge OF
the directors. and falsitied certain OF
his reports to the Corporation Commis-
sion The report alleges that on one
accession when the examining commit
tee was to look into the affairs Of tho
bank. the trial balance made from the
general ledger by the bookkeeper was
falsifed by the cashier.
1t is further alleged that he issued
a certificate for ten shares OF the stock
OF the bank to B. r. Cogbill withou,
consideration, and made false entries
on the books to cover the transaction
On November 3, 1906. the report
charges the Bank of Mecklenburg re.
ceiyed $4,000 from the Chase City
branch, and instead of crediting the
amount to the branch bank. 1t was
placed o.the credit of B. E. Cogbill.
Cogbill's account, 1t is contended
vas overdrawn at one time more thar
$4,000. and the account was not on the
individual ledger. 1t was opened or
this ledger by Clerk Barnes. but wa.
by him erased under the direction OF
the cashier. and left on an old ledger
this being the only account so treated
Cogbill's Part.
It is pointed out that cash advanced
by the cashier without the authority
of the directors and his personal in,
debtedness to the bank amount to ovel
s146.0o0. On July !. 1906, Cogbill. &C.
cording to the report, was overdrawr
$133,Sl6.13. and cash items carried fol
him amounted to s4l,Os6.51.
Mr.. Boudar declares that Cashier.
Overbey and Haskins both offered hin
every help in the work of the exami
nation, and rendered their services t
assist In any manner In making up the
statements.
B.. e, Cogbill's name runs prominent
~ through the entire report on TIL,
parent bank, and many of his transac
tions with the institution are set ou
in detail.
The history of the failure OF these
two banks, largely due. it is thought
TO the operations of CoEbil and the
East Coast Lumber Company, now ir
receivership. is well known to the
public, and the report OF the specia
accountant. made public now for the
hrst time, gives added interest to the
ease.
Shortly after the affairs of Cogbil
and the lumber company of which lie
was president We're placed in receiv-
srs' hands by Judge Waddll the Bank
Of Mecklenburg closed it's doors ant
requested the Corporation Commission
to make an examination of it's condi'
tion. A few days later the Chase City
branch failed. and Special Accountant
Roudar was appointed to examine botl
and to report to the commission Mr.
Roudar was assisted in his work by
his son and partner, Mr.. Thomas Bou'
& dar. and by Mr.. Bertram Chesterman
OF tho accounting department of the
commission.
Report OF Accountant.
Following is tho report Of tht
special accountant In full:
."In pursuance to an order by your honor
able body, I have, with the assistance of m;
deputy. Mr.. Thomas Boudar and Mr.. Rer
tram Chesterman, a clerk from your office
made an exhaustive examination into tn
Sffairs and conduct of the Bank of 4Mecklen
4 burg. at Boydton. Va, and of Its brancl
located at Chase City, Va.
"I find that the cashier of the Chase Cit,
hranch. Mr. G. Haskins. .lr.. has allowe,
various parties to overdraw their account
and negotiated loans to other parties With
put the consent or knowledge OF tho boar,
Sf directors. also find that there has bcel
8 fals!hcation OF his. report of February 4
!, IaoS, to the head office In Roydton, Vao@t
lcantinued on Second Page,)