Raleigh, N.C., Sept. 16—After deliberating for an hour and 10 minutes, the Wake county jury which since Friday morning has been sitting in trial of J.H. Hightower and H.H. Massey, officials of the defunct Central Bank and Trust company, charged with receiving deposits knowing the bank to be insolvent, tonight returned a verdict of guilty.
Judge C.C. Lyon following the verdict which came at 10:15 immediately adjourned court until 9:15 Monday morning when he will pass sentence. Under North Carolina statutes this cannot exceed a fine of $5,000 or five years imprisonment.
Tonight Hightower, who is a former chief state bank examiner, and Massey, co-defendant, are at liberty under their original bonds.
From the front page of The Durham Morning Herald, Sept. 17, 1922. The Banking Act of 1933, often referred to as the Glass-Steagall Act, established the Federal Deposit Insurance Corporation, which reimbursed depositors if a bank went bankrupt. Before that, you lost what you’d deposited if the bank failed, which is why these bank officials were on trial for continuing to take deposits after the bank had become insolvent.
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