Saturday, June 18, 2022

Investigation of Men Behind Failure of Citizens Bank and Trust Company of Raleigh, June 18, 1922

Special Term of Court

Governor Morrison today ordered a special term of court for Wake County beginning July 3 with Judge W.A. Devin presiding. This term of court was asked for by the county commissioners of Wake County for the purpose of trying the men under indictment in connection with the failure of The Citizens Bank and Trust Company of this city, which was closed by the State banking department several months ago with about $112,000 due the depositors. The bank was turned over to receivers and they have disposed of the furniture and fixtures for a price that approximates what the bank paid for them when it changed its name from the City Bank and moved into larger quarters following its reorganization. The bankers against whom indictments have been brought by the State banking department are R.G. Allen, former president and stockholder, president at the time the bank went under, and H.H. Massey, cashier of the institution under both administrations. Information is to the effect that Mr. Allen has made a proposition for the settlement of his indebtedness to the bank, which will pay about 70 per cent due the depositors. The receivers have been working on the Allen end of the tangle and so far have not done a great deal about the other two defendants, but they intend to push the prosecution of all three. Solicitor Herbert Norris does not feel that he can quash indictments now even if the men do pay the claims against them.

From the front page of The Charlotte News, Sunday, June 18, 1922

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