A detailed newspaper account of the trial of J.D. Reid and Henry S. Stanback, who were charged with embezzlement and other crimes that led to the failure of Wilson’s Commercial Bank.
Wilson Daily Times, 12 February 1930.
Bank examiners closed Commercial Bank on 24 September 1929 after a suspicious fire. J.D. Reid was the bank’s vice-president, and Stanback, the cashier. They were indicted on six counts. One alleged that Reid and Stanback knowingly permitted others to make deposits to the bank, knowing it was insolvent, specifically these deposits: $66.50 by Alfred Robinson; $57.00 by Camillus L. Darden, treasurer of Saint John A.M.E. Zion; $10.00 by Ed Humphrey; $1100.00 by Edwin W. Fisher, North Carolina Mutual Life Insurance agent; $10.00 by John Clark for Saint Mark’s Episcopal; $400.00 by Jarrette J. Langley; $35.00 by C.E. Artis and Company; and $200.00 by Shade’s Pharmacy.
Reid and Stanback were defended by W.A. Finch, Bryce Little, O.G. Rand, Wade Gardner, and Pete Bell, “Plymouth negro lawyer.”
The State first called certified public accountant C.A. Bean, who testified that he had examined the bank’s records and books on behalf of the North Carolina State Banking Department. Bean testified that pages from the bank’s ledger January 1929 until it closed were destroyed by fire, as well as a number of deposit records. Some documents were found strewn on the floor. He believed the bank was insolvent for four months before it closed. Records shows the bank had $565.84 in cash and checks on hand when it closed, against $72,000 owed to depositors and more than $53,000 in outstanding loans. Bean also found duplicate ledger sheets and a number of accounts under various names controlled by Stanback and Reid (including that of the Wilson Colored Hospital.) Further, he found numerous checks drawn but not charged to Stanback’s account, and well as checks drawn by Stanback from others’ accounts from 1922 to 1928. Bean testified that Stanback told him one of the special accounts was set up for expenses related to operating the bank. Reid had similarly shady accounts. The bankers’ lawyers objected vigorously to the questions put to Bean.
The state next called several bank customers.
Alfred Robinson, secretary-treasurer of the “Grand Lodge of Negro Masons,” testified that he maintained a personal account and the lodge’s account at the bank. He made deposits in his personal account on September 17 and asked for balance statements for both. Stanback gave him the personal account balance, but said he was too busy to give the lodge’s. He put Robinson off again a few days later, then told him the fire had destroyed records before he could get the information. Robinson said Stanback and Reid told him rats and matches had caused the blaze.
The courtroom was packed with spectators — as many as five hundred, most African-American.
Ed Humphrey testified that he had traveled to Roxboro, North Carolina, with Reid to get a two or three thousand dollar check from Lee Clay. He said Reid offered him $25 to deposit $1880 in the bank, but Humphrey refused.
Edwin Fisher testified about deposits he made on behalf of N.C. Mutual and about a “bogus” deposit slip for $150 that Reid had given him to cover an overage at the bank.
Columbus E. Artis testified that his own balance sheets showed a balance of $1176.67, but the bank’s showed him $14 overdrawn. He further stated that once, when he had a balance of $1800, he had written a check for $500. Stanback had returned it to him unpaid, asking him “not to write such big checks as the bank was a little low on funds owing to the demands of farmers.”
Lee Clay, of Roxboro, testified that Reid had convinced him to transfer $2000.00 from a “white man’s bank” to Commercial about September 1.
Plummer A. Richardson testified in his capacity as officer of a Nash County fraternal organization. He testified that Reid and Stanback blamed the tobacco market for cashflow problems, and he had to make several trips to Wilson to get his checks cashed.
Coverage continued the next day under this headline:
Again, hundreds of dismayed African-Americans crowded the courtroom to hear witnesses pile on evidence against Stanback and Reid. Isaac A. Shade, an eight-year customer, testified that Stanback had explained discrepancies with his pharmacy’s checks as mere mistakes. Shade was later recalled and examined about the Commercial Realty Company, which he claimed to known little about. John H. Clark testified that, upon hearing rumors that the bank would close, he tried to cash out his account, and Stanback had told him that the bank was not open for business. John Melton had $860.00 to his credit when the bank closed. Nestus Freeman testified that he had $3100.00 in the bank when it closed.
H.D. Beverly, “colored superintendent” of a lodge called “Brothers and Sisters of Love and Charity,” testified that Reid came to his home in Ahoskie, North Carolina, to solicit him to deposit his and the lodge’s money in the bank. Among other things, he said Reid instructed him to allow Stanback to fill out his savings account book to avoid messing up Stanback’s books. He heard the bank was about to fail, but Reid assured him it was not. Andrew Tate also testified.
Marland Jones of Durham testified at length. Jones opened an account after Stanback “kept after him” to do so. “One morning he went after his money, and it was after the time for the bank to open. Reid came with a sack of money and witness asked what was the matter and if the bank was broke, and Reid said ‘Who said so.’ I wanted to draw out $172.00, and Stanback said that he was short on cash, and I said if you have trouble paying me $172.00, I want all of it.” Jones thought he got the money from Durham, as a Western Union boy came in the office with the money shortly after.
Bertie County depositor N.H. Cherry testified that he had opened an account at Reid’s request and had done so with $500. He later wrote Stanback two letters demanding return of his money. Reid showed up at Cherry’s in person, threatening to “jack up” Stanback for failing to respond and promising to pay Cherry $25 if he kept his money in the bank. Cherry never saw the $25 or his $500 either.
Oscar McCall and Ellen Tate testified about the bank’s shady practices, and Mr. Bean was recalled to testify about irregularities in Hattie Tate‘s account. The State rested, and the defense followed suit, calling no witnesses.
The case went to jury the next day. After just over an hour, they returned two guilty verdicts on the count of receiving deposits knowing that the bank was insolvent. Reid and Stanback were sentenced to five years hard labor, and the remaining charges were deferred to a later date. After abruptly withdrawing their appeals, Reid and Stanback entered state prison by the first of March.