The independent. [volume] (Elizabeth City, N.C.) 1908-1936, 1926-03-19
NEGRO BANK DIRECTORS
WILL NOT BE INDICTED
"Would Do No Good" Says Judge Grady; Case
Throws BAD Light on Politics of Banking
System; Years for Holland

s Tor HOllanQ
There will be no Indictment
of the Is directors of the de-
fumct Albemarle Bank, whose
Cashier, w. Fl. Holland, was
sentenced to three years and
nine months in States Prison
this week by Judge Grady. The
testimony of Holland that the
directors of the bank had
known its condition for years.
will not result in any criminal
action. but doesn't bar any civil
procedure.
at would do no good TO indict
them" said Judge Grady. They
are men Of high standing in their
communities they have been hard
workers and good citizens. and althO
they may have proceeded largely In
ignorance. nothing could be accom-
plishad. 1t would humiliate them
and do harm TO them and their com.
munities"
And this will mark the end Of the
criminal prosecution Of the case. ex.
cept the hearing in June Of y. T..
Hart. who was employed as teller
in the bank. On the testimony Of
Holland. Hart was held this week
as an accessory, because some OF
the entries in the books were made
by him. and he is now in Jail in de-
fault of $1,000 bond.
DR.. T.. l.. IIoffIer. president of the
bank. declares Hollands testimony
untrue. and says every cent of stock
he subscribed to was paid I'm, 50 per
cent down, and the balance in in
stallments. DR.. Hoffler explains
that when the hank opened more
| stock had 10 be sold to comply with
state requirement. and that mu"k
Of this was subscribed to by the
directors. He states that a note
$4,000 was made by the director
to tide the bank over, and that Ho
land had no emergency to -meet. q =,
this score. DR.. HOifler insists thi
tie directors knew nothing Of IL
condition of the bank as repOrt
by Holland. and were ignorant
the state Cf affairs all along unit
the crash. lie expresses the belle
that Holland got the money.
The Politics OF Banking
But there were startling features
brought out in the case Of Holland.
Thousands Of hank depositOrs are
asking wOrrisome questions that will
demand action by banks of char
acter and standing that want to
hold their own with their patrons.
and the circumstances may result
in sGme effort for the improvement
Of regulations thrown around the
banking buSines; of North Carolina.
Hundreds Of people have asked,
what good is bavk examiner, lie
a bank could be ins0lyent for five
years, and the state authorities
never knew ii? What protection
! have we got! For all we know, any
! bank could pull the wool over the
! eyes of the examiners. If this negro
bank cashier could do IT.
Bank auditors defending them.
selves, against the pointed inquir-
ics Of the public insist that the tax
payers are unwilling to provide the
money to hire more auditors, insist
ing that the five or six bank exa-
miners in the state, have too much
to do to give the more than 800
state banks of North Carolina Il
thOrO examination. The fact Is, the
reports of the cashier. and their
statements, have been generally ac-
ccpted by auditors so called, thru.
out the state.
And then the sad fact about
this bank regulating business is its
dcplorable connection with politics.
appointment of auditors can be
made at the instance of some in.
! f!ucntial politicians, without regard
To actual qualifications. But worst
Of all. the Chief Bank Examiners
job is dependent Oh the influence of
politicians he must cater to them,
or does cater to them to hold it.
II will he noticed in this instance
that when Clarence Latham, Chief
Bank Examiner, came TO Elizabeth
! City. politics was played from start
to finish. The appointmentOf Sena-
tor p. II. Williams. as receiver OF
| the Bank and Of J. X. Wilson as
attorney for the prosecution were
obviously political measures in the
| interest of Mr.. Latham. Mr.. Lathar
has TO come up for reappointmen
and Mr.. Latham could have bee
taking care Of possible contingenci
If NJ. Williams were TO return
! the Senate, and Mr.. Wilson to
house. than Mr.. Latham might IL
! CONTINUED on Page Fiye)