Peter Graham Roach

While O. Henry was in Houston, the First National Bank of Austin was audited by federal auditors and they found the embezzlement shortages that had led to his firing. A federal indictment followed and he was arrested on charges of embezzlement.

Porter's father-in-law posted bail to keep him out of jail. He was due to stand trial on July 7, 1896, but the day before, as he was changing trains to get to the courthouse, an impulse hit him. He fled, first to New Orleans and later to Honduras. While holed up in a Trujillo hotel for several months, he wrote Cabbages and Kings, in which he coined the term "banana republic" to describe the country, a phrase subsequently used widely to describe a small, unstable tropical nation in Latin America with a narrowly focused, agrarian economy.

Porter had sent Athol and Margaret back to Austin to live with Athol's parents. Unfortunately, Athol became too ill to meet Porter in Honduras as Porter had planned. When he learned that his wife was dying, Porter returned to Austin in February 1897 and surrendered to the court, pending an appeal. Once again, Porter's father-in-law posted bail so Porter could stay with Athol and Margaret.