Now that the Peoples Bank is safe beyond doubt, the interest of everybody in Chapel Hill, in connection with the shortage that was discovered after the death of Ralph Andrews last week, is concentrated upon the question: What became of the money?
In view of the general knowledge that the assistant cashier and his family lived with the utmost simplicity and could not have used the money for household and personal expenses, of course the suspicion immediately arose that he must have been speculating. With this in mind, his brothers, as well as President Vernon Howell and other officers of the bank, have been seeking to learn of deposits he might have made in distant banks, or transactions that he might have carried on through brokerage houses in Durham or elsewhere. But thus far the inquires have brought no clue. They are still being pursued.
This notice has been posted on the door of the Peoples Bank:
ICE TO THE PUBLIC
This is to certify that the shortage discovered in the books of the Peoples Bank has been made good. The bank is solvent and should have the support of the Community.
CLARENCE LATHAM
Chief State Bank Examiner
The esteem in which Ralph Andrews was held, and the fact that he had been in ill health nearly all his life and believed that he had tuberculosis, tended to keep the citizens of Chapel Hill, when they heard of his suicide on Wednesday morning of last week, from suspecting that there was trouble at the bank The explanation that he had ended his life in a fit of despondency, growing out of illness, was readily accepted, and all during the day there was hardly a sign of fear on the part of depositors. It was not until night that the shortage was discovered.
This created an extremely perilous situation. The news spread all over town quickly, and it was plain that, if the shortage were not made good before the opening hour next day, the bank would surely have to close its doors.
Immediately the shortage became known to them, the three Andrews brothers—Homer, Clyde, and Charles—came forward and offered to turn over all they had toward making up the loss.
Vernon Howell, the president of the bank, heard of the discovery of the shortage at about 9 o’clock in the evening. He found that, over and above the amount for which the assistant cashier had been bonded ($5,000), and the total that the three brothers could put up, there remained still several thousands to e obtained in order to cover the loss.
The early hours of the night he spent in gathering together deeds and other documents, his own personal property, that would serve as collateral, and in executing mortgages upon them. At 5 o’clock in the morning he and W.S. Roberson and Homer and Charles Andrews went over to Durham, and at about breakfast time called upon President Holloway of the First National Bank. The required amount of money was obtained and brought to Chapel Hill, and at 9 o’clock the People’s Bank opened for business as usual with all its resources intact. W.S. Roberson joined in signing the notes which, backed by Mr. Howell’s collateral, were made to the Durham bank.
For three days, through Thursday, Friday, and Saturday, this money was put at the disposal of the bank, over and above what had been supplied by the Andrews brothers and by the forfeiture of the bond, stood as an advance from Mr. Howell. At the end of the week the stockholders held a meeting, and the liability was distributed among them.
If all or any part of the money taken from the bank is eventually recovered, of course the stockholders’ loss will be diminished.
In consequence of the extraordinary and successful efforts made by those in control of the bank, it is now in an unusually strong position with respect to cash on hand. The statement prepared by the bank examiner on Friday shows the item: “Cash, and due from banks, $99,546.”
From the front page of The Chapel Hill Weekly, Thursday, Jan. 22, 1925
newspapers.digitalnc.org/lccn/sn92073229/1925-01-22/ed-1/seq-1/#words=January+22%2C+1925
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