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LETTER THROWS NEW
LIGHT ON RANKING
HEARING AT RALEIGH
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Lawyers Base Appeal Claims on
Letter Written by Chief
Examiner Latham
fried before Superior Court Judge
E. H. Cranmer, of Southport, in Ra
leigh, John H. Hightower, president of
the defunct Central Bank and Trust
company, was found guilty of receiving
deposits for his bank, ■nthen he knew
the institution to be insolvent, and sen
tenced to serve not less, than two aijd
one-half years and not more than four
years in the. state prison. H. H. Mas
sey, cashier of the bank and co-defend
ant, was acquitted.
An appeal was taken to the Supreme
court and the appearance bond was re
duced from $25,000 to $15,000. This
was signed by prominent business men
of Raleigh, who, it was said, did so to
Express their confidence in the inno
y. Ncence of High-tower.
f When the lawyers had completed
s their case Judge Cranmer called upon i
the defendant, who stated that in the
banking business he had acted in good
faith and that he thought he had pulled
the bank through; that he frequently
laid the whole situation before the
. bank examiner, offering to turn the
institution over to him at.any time.
The lawyers for the defendant based
their arguments as to the real condi
J tion of the bank on a latter written at
- torneys for Allen by Examiner Latham.
The letter in part follows:
•!The accumulated overdrafts of $33,
» 807.33 by R. GJ Allen. $17,436.31 in his
own name and $16,371.02 by R. G. Allen {
in the name of the Superba theatre,
...which have never been actually paid
!*.nd loans made by the bank to or on
account of R. G. Allen to the amount
Of $69,244.57 which were held by the
' bank in December, 1921, and which
have never been actually paid. •These
: amounts are in addition to the $W,000
of R. G. Allen notes now held by the
. bank. Elaborating more fully the spe
' ■/cfHcations of this paragraph now disr
•closed by the books of the bank, that
...the condition were as now in
■ November and December the Cen
■ tral Bank and Trust company was
practically a complete wreck, stripped
not only of it^ capital stock, but of
the larger part of Its assets by R- G.
.-■Allen while he 'held forty-five-fiftieths
of its capital stock and controlled its
-management. He had illegally and
wrongfully withdrawn from it more
-than its capital stock by setting up on
-its books an asset of $70,000 covering
' an unconvened equity in an encum
bered piece of real property on which
t-a $40,000 loss has been sustained. In
addition to this he had withdrawn prac
tically the entire deposits of the bank
in cash for loans and overdrafts to
himself and his enterprises, consider
ably'more than $100,000 without se
. purity, and more than 10 times
:as much as the law permits a
bank of its capital stock to loan to
one man even with security, . and no
cart of this loss and overdrafts have
actually been paid. Whatever the pur
pose and liabilities assumed by those
who took over the bank stock and
theatre property by R. G. Allen as they
contend in an effort to save it from
the .wreck- which Allen had produced,
• we cannot consent that R. G. Allen
has discharged his moral or legal ob
ligation to the depositors of that.bank
whose money we wrongfully and ille
gally took and used, by the exchange
of worthless stock in the bank which
he, had wrecked for uncollectible notes
for $49,000 that are now in the assets
of the bank in lieu of the money Which
Mr. Allen Illegally and wrongfully
. took from its vaults, and which he
owed every moral and legal obliga
tion to return. The depositors want
their money, Mr. Allen got it and has
. /‘I’M A HAPPY SOUL
—because I use the Harriss Ad
vertising Service (Direct by
Mail), and by their intelligent
planning and execution my ad
vertising not only costs me noth
ing, but has paid a big profit on 0
.its cost;.”
That’s the way our clients feel
when they entrust their problems
to us. " —
Harriss Printing and
Advertising Company
Direct Mall Advertising
v PRINTING -I- ENGRAVING
Rubber Stamps—Office Supplies
TRAVELING MEN PLAN
TO ERECT SANATORIUM
Grand Council in Session at Co
lumbus Favors Proposition,
Local Council Learns
The supreme council of the United
Commercial Travelers which has just
ooncluded its regular yearly session
at Columbus, Ohio, went on record' as
favoring- the establishment of a tu
bercular sanatorium, according to a
letter received in Wilmington yester
day by A. H. Smith, secretary and
treasurer of the Cape Fear council.
The local council has long been agi
tating the establishment of an insti
tution oif this character and the per
sonnel of the local organization are
delighted that the national body has
seen fit to approve of the idea and
appoint committees to attend to the
details of securing a location and erect
ing the institution. „
Just when the sanatorium will be
built is not known at present and while
it may be started in the next few
moiiths it may be a full year before
the buildings are erected.
The institution^wTU be located s°m®*
where in North Carolina and if it
proves to be a success it is thought
that the national organibation will
approve of the erection of two similar
sanatorlums to be erected in Arizona
and in the Adirondack mountains.
J B. McCall, of the Asheville coun
cil of the United Commercial Travelers,
was one of those who was in a great
measure responsible for the grand
councils favoring the idea as he has
been a strong supporter of the move
Other delegates from this section
who supported the movement included
Li. H. Burnett, of ’ the local council,
C C. Tavlor of the Greensboro coxa ail,.
L H- Craig, of the Greenville, to. C.,
com oil, md S. T. Held, of the Spartan
burg, S. C., council.___
SHELLISLANDKACH
GETS BIG PUBLICITY
Netgro Resort is Growing More
Popular Each Day—Special
Program Monday
Shell Island beach, the negro sea
Ide resort near Wrightsville is each
ay growing in its popularity. The
jland Is an especially popular place
n Monday of each week, for this oc
asion there having been arranged an
xtra program of music.
News of Shell Island has traveled
hrough the country and most favor
ble mention has been made of it by
he Charlotte Observer3 the Tuske
ee News, of Tuskegee, Ala.; The
ournal, of Pittsburgh, Pa.; and the
New York Times.
The foolish and unfounded rumor
which is now abroad to .the effect that
the white people are going to take
over the Island is positively denied
by the developers of the resort, It
being stated that the island is entirely
for the negroes of the south and this
section.
Offers to rent or buy locations which
have been made by white people have
been steadily declined, regardless of
price. There Is not now a white per
son on the beach, and the manage
ment of the place and its control hav
ing been left in the hands of the
negroes themselves.
SERVICES AT WRIGHTS VHXE
Divine services will be held at
Wrightsville Beach chapel tonight at 8
o’clock at 8 o’clock. The preacher will
be Rev. W. W. Morton, of the First
Presbyterian church.
not returned It, and now imposes as a
condition precedent to securing pay
ment of any of his liabilities, either
that we arrange to convey to him title
to property that he joined the bank
in conveying away, or that we require
an impossible bond from other parties
to secure liability for money Which
they did not take from the bank and
which R. G. Arten did.
“Whatever responsibilities rest upon
the other parties mentioned in your
letter, Messrs. Hightower and Massey,
were placed upon them by R. G. Allen
wehn he held nine-tenths of the stock
of the bank and whatever their sinning
may be, were themselves, victims of R.
G. Allen’s raid upon the vaults of the
bank. They have already made good
to the bank all of the ascertained
liabilities for moi^ey actually obtained
by them from the bank and if It shall
be ascertained' that they obtained any
other sums that have not been return
ed, every legal remedy will b& exhaust
ed to have it made good.
. “This letter is written by direction
of the Corporation Commission.’
Wolves are on the increase in Russia.
We thought the Bolsheviks had abol
ished competition.—Philadelphia Even
ing Public Ladger.
The rarest postage stamp in the
world Is- the one-cent British Guiana,
1868, which was recently sold to an
American collector for $38,000.
FOUNTAIN PENS
Before starting on that vacation let us help you se
, lect a Fountain Pen suitable to your hand. Avoid the
muddy ink wells and scratchy pens and make writing a
pleasure instead of a burden. We have a large stock at
all prices to select from.
C, W. Yates Company
, • 115 and 117 Market Street
*' 69-—'Telephone—60
Jf
DID YOU KNOW THAT
—we are not the ,-only cash-and-carry store In Wil
mingrtonT : ___
BUT
-t-tre are the only self-sprvtce store that handles
fresh, meats# You can flit ^our menu complete In our
’ , SELF-SERVICE STORE
—and thereby save time as vrell as money*
IT CAN BE DONE!
Be B; BRYAN CO., Inc
507 North Fourth Street
BIG CROWDS WITNESS
CITY LEAGUE GAMES
American Legion Defeats Bank
ers—^Light Infantry Wins
From Coast Line
In the two games of ball played .by
the City Leaguers at Robert Strange
playgrounds yesterday afternoon the
American Legion team defeated* the
Murchison Bank nine by a score of 5
to 4, while the Wilmington Light In
fantry captured the other game front
the Atlantic Coast, Line to the tune
of 7 to 3.
The first contest, between the
Bankers and the Legion men, was a
pitching duel between Corbett, for the
Bankers, and Watts, for the Legion.
Superior playing by the Legion men
was responsible for their victorq.
The second contest was a combina
tion of bad playing, good playing, hit
ting, squeaky fielding and a mixture
of pitohing. Gordon was on the mound
for the winners, wh(e the twirling
honors for the- Railroaders was di
vided between Bouschee and Gleschen.
Z. W, WHITEHEAD
DIED THIS MORNING
Paralytic Stroke Suffered Thurs
day Night Immediate Cause
Z. W. Whitehead, one of the leading
citizens of Wilmington and publisher of
the , Southern Truckers’ Journal and
Southern Lumber Journal, died at his
home, 212 Orange street, at 1:55 this
morning. He suffered a paralytic
6troke Thursday night, from the effects
of which he never recovered. He suf
fered a similar stroke two years ago.
Mr. Whitehead was 61 years old. Sur
viving are his wife, Mrs. Warren Smith
Whitehead, and two sons, Wiley White
head of Cleveland, and Thomas Ruffin
Whitehead, of this city. .
Funeral arrangements have not been
completed, but will probably be held
Monday.
The deceased was a member of the
First Presbyterian church.
The Credit Union of State
Is Explained by Miss Berry
1 (Continued from page 6)
farming and more satisfactory living
conditions.
“This credit union was organized in
January, 1916, and was the first co
operative short-time credit society to
be established in the south, under legis
lative sanction.
“The union began business with 30
members, $212 paid in on shares, and
$101.76 on deposits. Today it has 61
members, $1,326 in shares and $1,474 in
deposits. It is located in the open
country, six miles from the nearest
city. On adjoining property is the
agricultural high school, the commun
ity church, and the community fair
building. The members of the_ Credit
union own a quarter-acre plot of land
and a two-room building, where its
meetings are held and where the farm
supplies, which are bought co-opera
tively, are stored for distribution.
“Any man, woman or child, who is
thrifty and of good character, may be-,
come a member by subscribing for one
or more shares which are marketed at
$10 each. The officers serve without
pay.- The union is open for business
any time during the day or night. The
writer served as secretary-treasurer
for two years and frequently nego
tiated loans at night or at 5 or 6 o’clock
in the morning in order that a farmer
might have cash to buy a plow, a cow
or supplies.
"Loans are made only for productive
purposes and not for luxuries. For ex
ample, a farmer can secure a loan to
buy a mule tp cultivate a crop, but a
request for a' loan to buy. an automo
bile would* be refused. The loans vary
in amount from'$5 to $500 and most of
them are negotiated on a 12 months’
basis. All notes are secured by two
endorsers, or by collateral such as
livestock, or both. _A loan of $30 to buy
a plow, a hundred dollar loan to pur
chase feed and commercial fertilizers,
“The House by 4he Side of the Itfed”
at The
Center
John Morris,
Proprietor
When a fuse blows out—when
you need a new globe—when
you need your house wired—
when you need a new fan—in
short, when you need electrical
SERVICE, call 1033.
A. B. BLAKE
Corner Front and Grace
Streets
1033—Phone—1033
a loan or *4U to secme seed, cotton ana
corn—these indicatlgthe character and
diversity of the crfflit extended. Six
per cent interest charged on all
loans. '
“While only menfiiers of the union
may borrow, anybosy may make de
posits. Four per (lint interest, com
pounded quarterly, jj£» paid on all de
posits. Also an annual dividend of six
per cent Is paid onfall shares. Sixty
pupils of the Agricultural‘high school
are regular depositor's, having accumu
late dsums ranging*,jlrom $200 to $300
each. The operatingj cost of the union
has averaged a tijj/le over $26 an
nually. * jij
"Since the Credit ^Jnion began busi
ness it has made altotal of $43,000 in
loans without the logs of a single cent.
“A co-operative laying and selling
association has beeni^ part of the union
since its formation.*! The purchase of‘
$8,000 worth of conjlnerclal fertilizers
in the hpring of 19l|| was the first ef
fort at co-operativ4|buying. On this
order the farmers figure they haved
$2,000, as the fertilisers would have
cost that much mor*j] if they had been
bought Individually i id on time, as had
been the practice, yoday all supplies
and equipment for t§| farm are bought
indloidually and no j| on ' time, as had
been the practice. fl
The members hav® erected a ware
house on a railroad Riding one-quarter
of a mile from the <?jedit union build-,
ing, thus making it easy to handle car
load shipments. Tjjfe records show
that the union has vfbought approxi
mately $200,000 wort!*! of supplies in six
years at an estimated saving of $36,000
to the members.” i:
So much for tang>|ble results. The
intangible results a^s equally impor
tfcan. tf
"Soon after the establishment of the
union, the. members Realized that they
must . practice th» best farming
methods if the greyest returns were
to be secured from ifije money borrow
ed. What kind of ^fertilizer should
they buy—what variety of seed should
they plan what thejs^ehould feed their
hogs and where should they be mar
keted^—were some ;^f the questions
that arose. This Resulted in the
credit union extensirji courses. Each
winter the members Tattend a course
ranging at length f i|>m ten to thirty
lessons to study the? best methods of
farming. The teaching in these
courses is done by v$ie extension ex
perts of the state agricultural college
A library of a huntyed agricultural
books and three thousand bulletins has
been placed in the '■feadlng room of
the credit union thilding. On an
average half of th< ? books and two
hundred of the, bull4itns are in circu
lation all the time. jj_
"Better business, better farming and
better living is the feondltion that is
gradually being developed in the
community. The uf jon has met the
needs for a reasonable short time
credit for farmers; yt has organized
the financial and btMiness life of the
community; it has enabled many farm
ers to put their fuming operations
on a CcLSIl Ottoia LilCAwuj -—w
themselves escape from ruionius time
prices. It has effected a considerable
saving of dollars and cents to the com
munity and it has enabled many farm
ers to operate their farming activities
on a larger scale, to Improve, farms
and buildings, to purchase improved
farm machinery and to acquire home
conveniences.”
This story would not be complete
without a recital of the condition of
these people before the credit union
began its operations.
Mr. Thomas says in regard to this:
“The union was bom of necessity.
Practically all the farms were small
and were run on a one-crop basis,
either cotton or tobacco. In most
cases the farmers did not have cash
enough to finance their farm opera
tions for a year. On account of the
difficulty of securing loans from a
bank and the trouble of having the
note renewed every ninety days the
farmers were forced * to mortgage
their crops to supply-merchants in re
turn for supplies necessary to pro
duce the crops. Under this system they
j were doomed to failure from the be
1 ginning—a system which made them
vassals of the supply-merchant, who
charged them thirty-eight per cent
credit for their supplies and dictated
what they should buy, and when they
should sell their crops.”
According to reports of bankers in
fifty-four cotton producing counties
of North Carolina, farmers are re
ported to have received an advance of
approximately $30,000,00.0 from mer
chants in the form of supplies for
average of fifty-eight per cent of its
total value. Supplies bought on time
are reported to have cost on an aver
age 19.8 per cent more than those
purchased for cash. If these ac
counts run on an average for six
months or 38.4 per cent per year for
the crecfit with which they obtain?
supplies. The total cost' of this supply
store credit at this rate for producing
the cotton crop alone would be over
five and a half million dollars. At the
legal rate of Interest, of six per cent
this credit would have cost about
$876,000. Cotton' farmers would have
saved over $4,600,000 if agriculture
had as good a system of credit as
other lines of business In this state.
No business can prosper and buy credit
at such prices. A business which be
gins on this basis is beat at the start.
If this amount, in round numbers
$5,000,000 were saved, it would be an
income of £ive per cent on a new Jand
value of $100,000,000 whioh would be
added to the value of the land of the
cotton counties of North Carolina.
will buy one pound assorted nut
center chocolates and fudges
today
WARREN’S
i -- .. jt
Befoie You Invest—Investigate!
y
Our first mortgage security is attracting savers from
a large scoplfof territory—as every day is Building and
Loan Day ypf|h the
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MILLION DOLLAR
Caroling Building and Loan Ass’n
Lnrfeif fn^ Eastern Carolina—201 Princess Street
a T. TAYLOR,president L. W. HOORK. Secretary
If WE PAY THE TAXES.
\
M :
' ;Ti ■ ••
AUTOMOBILE BLUE BOOK
Brand new fc§ 1923. The complete guide for motor tour
ing—showing' up-to-date road information, points of
interest, hotel accommodations and much useful infor
mation. Prie| now only $3.00 each,
,f| _
Northaiifs Book and Stationery Store
p32 North Front Street
Air-deposits made on or before July 3rd will draw
Interest from *Jily 1st, and will receive Interest for five months
at our Decembfir Interest quarter.
Before yoi^"]leave on your vacation trip deposit part of the
money you havfi saved to spend while you are away and you will
have a good st^J-t when you return home.
Our certificates of deposits are an attractive and safe invest
ment, they pay|| per cent interest from date of Issue and are pay
able at any tin||. Give a thought to your vacation next year.
Howie Savings Bank
%
Cf pner Front and Chestnut Streets
f —— ... ———" 1
REg|jLAR INTEREST PERIOD!
Gur next regular interest quarter starts July 1, all de
posits madefwith us between now and, Tuesday, July 3,.
will draw ilfterest from July 1. We will be pleased to
number you "among our thousands of satisfied customers.
I Established 1900
TH| PEOPLES SAVINGS BANK
turner Princess and. Front Streets
We wish to announce a substantial reduc
tion in Goodrich and Diamond Tires;
See us before you buy
Hughes Sales & Service Co.
WILMINGTON, NORTH CAROLINA
2nd and Market Sts. , 11th and Market Sts.
(
We Print
Anything
—for anybody from a visiting card
to a history of the world, provided,
of course, it is all right to write it,
and it needs to be done well.
c ;c
Wilmington Printing Co.
Uptown Office
8-10 North Second Street
Phone 997
Plant:
Second «nd Greenfield Streets
885—Phones—886
“Printing—the Mother of Progress** |
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©
HI
Stop! Look! Listen!
That is what you must do at every railroad
crossing today if you are riding in an automo
bile or a Ford. If you do not do so you will
find “the difference.”
Buy Groceries FroimUs and Save
“The Difference”
The Grocerteria
“Wilmington’s First Cash and Carry Grocery
@ in ©
Take a Flashlight With You - -
-This is one of the handiest ar
ticles a motorist or camper should
include in his outfit. Take one of
our Eveready flashlights along
and have a good, dependable light
whenever you need it. We have
them in all popular models and ex
tra batteries to fit all sizes.
1 J. B. McCABE & CO. i
CERTIFIED PUBLIC ACCOUNTANTS j
WILMINGTO^, NORTH CAROLINA 1
Postofflce Box 1243 007 MnrcMxm Bnlldlag [
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