Depositors in the Merchants and Farmers Bank of Princeton which failed on the 3rd of last February, received 10 per cent of their deposits last Thursday, October 22, the amounts being disbursed by the Farmers Bank and Trust Company of this city, receiver for the defunct institution. According to reliable information, the depositors will ultimately receive from 60 to 75 per cent of their deposits.
This bank which closed its doors last February was found, after the books were audited, to be short of funds to the amount of $52,319.64. Mr. George F. Woodard, cashier of the bank, and his daughter, Miss Lena Woodard, assistant cashier, were responsible for the shortage, the Grand Jury of the August term of criminal court returning five true bills against the two. Both the cashier and the assistant cashier were charged with accepting deposits knowing the bank to be insolvent and with making false entries. The case will come up in the December term of court.
Mr. Woodard was placed under $10,000 bond and Miss Lena Woodard, under a $2,000 bond which have been paid.
Mr. Woodard owned a farm said to be worth about $15,000, but soon after the failure of the bank, he filed a voluntary petition of bankruptcy.
The case has caused considerable comment particularly around Princeton and the outcome is awaited with interest. Counsel for the defense is E.S. Abell of this city and the prosecution will be assisted by E.F. Ward, also of Smithfield.
There were about 110 depositors who shared in the payment made by the receiver last Thursday.
From the front page of The Smithfield Herald, Tuesday morning, Oct. 27, 1925
newspapers.digitalnc.org/lccn/sn92073982/1925-10-27/ed-1/seq-1/
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