but the day before Porter was due to stand trial
on July 7, 1896, he fled, first to New Orleans and later to Honduras. While he was in Honduras, Porter coined the term "banana republic," subsequently used to describe almost any small tropical dictatorship in Latin America.
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 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.
Athol Estes Porter died on July 25, 1897, from tuberculosis (then known as consumption). Porter, having little to say in his own defense, was found guilty of embezzlement in February 1898, sentenced to five years jail, and imprisoned on March 25, 1898, as federal prisoner 30664 at the Ohio Penitentiary in Columbus, Ohio. While in prison, Porter, as a licensed pharmacist, worked in the prison hospital as the night druggist. Porter was given his own room in the hospital wing, and there is no record that he actually spent time in the cell block of the prison.
He had fourteen stories published under various pseudonyms while he was in prison, but was becoming best known as "O. Henry," a pseudonym that first appeared over the story, "Whistling Dick's Christmas Stocking," in the December 1899 issue of McClure's Magazine. A friend of his in New Orleans would forward his stories to publishers, so they had no idea the writer was imprisoned. Porter was released on July 24, 1901, for good behavior after serving three years.
Porter reunited with his daughter Margaret, then age 12, in Pittsburgh, Pennsylvania, where Athol's parents had moved after Porter's conviction. Margaret was never told that her father had been in prison, just that he had been away on business.
Flight and return