Elizabethtown, Aug. 14—Indictments against Hugh McAllister, who was its president, and J.A. Pickens, its cashier, and six directors have been returned by a grand jury in Bladen county following the crash of the Bank of Councils, an institution which was allied with the new defunct First National Bank of Lumberton.
McAllister was vice president and cashier of the larger institution, which went to the wall a few days ago. Thomas L. Johnston, state senator, who was active in the passage of the more stringent laws enacted during the last legislature, was president of the Lumberton bank.
The indictments against McAllister, Pickens and the six directors were found last Monday, but no information was available until today. The clerk of the court in Bladen said that Mr. McAllister would not be arrested but that he had been sent a bond in the sum of $6,000 with instructions to sign and return to the court for the records. Cashier Pickens and the six directors are to give bond, the clerk at Elizabethtown stated today, in the sum of $5,000 each.
The directors are: D.J. Priest, E.B. Council, J.K. Nicholson, J.M. Meshaw, J.C. West and J.L. Hammer. H.H. Clark of Elizabethtown is receiver for the Bank of Councils and is the chief witness against McAllister, the cashier, and directors. The Bank of Councils is a small state supervised institution which was a country correspondent of the larger bank at Lumberton. The Lumberton bank was closed by federal bank examiners and it is reported that among its liabilities to stock holders and depositors is $400,000 of questionable paper.
From the front page of The Concord Daily Tribune, Saturday, August 15, 1925
newspapers.digitalnc.org/lccn/sn92073201/1925-08-15/ed-1/seq-1/
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