7? f0 W' LETTER THROWS NEW LIGHT ON RANKING HEARING AT RALEIGH fv ?,v. ■KU 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 He had illegally and wrongfully withdrawn from it more -than its capital stock by setting up on -its books an asset of $70,000 covering ' an unconvened equity in an encum bered piece of real property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 $2,000, as the fertilisers would have cost that much mor*j] if they had been bought Individually i id on time, as had been the practice, yoday all supplies and equipment for t§| farm are bought indloidually and no j| on ' time, as had been the practice. fl The members hav® erected a ware house on a railroad Riding one-quarter of a mile from the |ble results. The intangible results a^s equally impor tfcan. tf "Soon after the establishment of the union, the. members Realized that they must . practice th» best farming methods if the greyest returns were to be secured from ifije money borrow ed. What kind of ^fertilizer should they buy—what variety of seed should they plan what thejs^ehould feed their hogs and where should they be mar keted^—were some ;^f the questions that arose. This Resulted in the credit union extensirji courses. Each winter the members Tattend a course ranging at length f i|>m ten to thirty lessons to study the? best methods of farming. The teaching in these courses is done by v$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 1 ■ 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** | ■ 1 © 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 [ . b- '• -