Peoples National Bank (Winston-Salem, NC) closed June 25, 1931 and a receiver (W. H. Spradlin) was appointed; articles describe liquidation, receivers' actions, suits to recover losses from employees and a guaranty company. OCR typos in some articles (e.g., People's National or missing words) were corrected when obvious. No contemporaneous run is described — the failure appears due to insolvency/misapplication of funds by employees and slow loan collections.
Events (5)
1.April 28, 1890Chartered
Source
historical_nic
2.June 25, 1931Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed June 25, 1931 after misapplications/abstracting of funds by employees and insolvency; capital stock small and alleged unlawful loans; slow loan collections to Federal Reserve notes worsened position.
Newspaper Excerpt
The complaint... The bank closed its doors June 25, 1931.
Source
newspapers
3.June 29, 1931Receivership
Source
historical_nic
4.July 18, 1931Receivership
Newspaper Excerpt
W. H. Spradlin, Jr., receiver, of the People's National... The receiver... determined to protect the depositors... to draw around himself an advisory of men direct interested on behalf of the depositors. (Jul 19, 1931 article).
Source
newspapers
5.May 25, 1932Other
Newspaper Excerpt
W. H. Spradlin, receiver of the Peoples National Bank of Winston, filed suit in federal court... to collect $25,300 from the United States Fidelity and Guaranty company... alleged abstractions and misapplications made by employees of the defunct bank (May 25, 1932).
Source
newspapers
Newspaper Articles (8)
1.July 19, 1931The News and ObserverRaleigh, NC
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Article Text
RECEIVER TO APPOINT DEPOSITORS COMMITTEE
Winston July 18.-A depositors committee, of men of mature judgment, will be appointed voluntarily by W. H. Spradlin, Jr. receiver, of the People's National The receiver, anxious to get every penny out of the assets in liquidating the bank. determined to protect the depositors far as is humanly possible. Therefore the determination to draw around bimself an advisory of men directinterested in ehalf of the depositors. He also announced that he had no plan to buy the bank, as reported
2.August 12, 1931The SentinelWinston-Salem, NC
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Article Text
RECEIVER READY FOR CLAIMS AT LOCAL BANK
Open Doors Defunct Peoples National Bank So Depositors May File Proof of Claims.
BEING LIQUIDATED
Claims Will Be Attested and Depositors Issued Receiver's Certificates, Which Are Negotiable.
L Bank be
Nabbed With Pal, Philpot, He Admits Holdup of Filling Station Man in Forsyth County.
OWES 29 YEARS
Convicted With Summerfield Martin for Murder of Automobile Dealer.
Prompt Co-operation Be Effective
Entrance of the Federal Reserve Bank as general creditor of the defunct Peoples National Bank came just at a time when the receiver, W. H. Spradlin, was about ready to issue dividends to depositors. But it should be recognized that, unfortunate as the situation may be, the claim the Federal Bank is legitimate one and must be given the same consideration as those of other creditors. By trading notes to the Federal Reserve Bank for cash, the local bank made itself responsible as debtor to the federal institution in event collection on the notes could not be secured. In number of instances these notes have liquidated very slowly, if at all, hence the federal bank has taken the only recourse open to entering the field as general creditor against Peoples National The receiver has achieved a remarkable record in liquidating the assets of the Peoples Bank thus having collected one-sixth of the loans due and thirteen per cent. of the total assets of the bank during the first three months. He states that borrowers on notes held by the Federal Reserve Bank will pay up their obligations immediately, the indebtedness to this institution can be liquidated. thus affording larger dividends to the depositors of the insolvent institution. Prompt co-operation with the receiver in effecting the liquidation of the reserve bank indebtedness is therefore essential. Certainly an honest effort to meet obligations in this respect can do the debtor no harm and will result in lasting benefits, not only to the depositors, who can III afford to lose their but savings, to the community as whole.
Bank Receiver To Sell Safety Deposit Boxes
All persons having safe deposit boxes at Peoples National Bank are asked by the receiver. W. H. Spradlin, call at the bank and the arrange contents at once. The receiver has received good offer for and sell them right is boxes rented arrange to having transfer their Mr. states that those Spradlin who are unable find place for their valuables may be lowed to use some other boxes available the bank. but this would probably apply only limited number. In all assets possible to cash, the or to the liquidating the bank the best interest of all creditors. The the safe deposit boxes of is step in this direction.
Bank Receiver Answers Suit
Liability for Loss of Money in Firemen's Relief Fund Denied yesterday to the of and Deposit Company of Peoples National til against wherein the denies any the part of the ank account for depositof by the W Holcomb to credit of the Relief and later withdrawn by him. The indemnity company the bank negligent in former $61 and for relief money belonging the The bank counters this of the in that the failed to properly supervise the of at conduct that these functionaries never the bank to the ledgers otherwise check part of the fund deposited in Bank Holcomb was accountable to the and were charged by of the fund. the Yet these trustees any treasurer the prepared attorney to receiver, that the ademnity provided bond treasurer of the pledging duties such. In further defense the answer more than three ntervened the filing of the the of Holcomb the treasurer's for the The Firemen's Relief consisted $23,000 amount deposited with cording to information
BankAidReady Says Hancock
Congressmen Peoples Bank Receiver Should Ask Loan
Is First Step
Will Expedite Application, He Says
By WALTER BROWN March Finance Corporation has assured Representative Frank the Fifth North Carothat it the aid defunct Peoples National Bank Winston pointed that action could be taken the filed with corporation its made application for and to pay the Hancock personally talked with officials and assurance of its given co-operate the the in giving relief the depositors. Absurd Haneock the statement made officials of the treasury by last week that dividend could be paid 60 absurd. He said under between with proper treasury the struction dividend could be the The North that of the appropriated marked" for specific purpose granting depositors have their funds tied secure aid from Finance by the bank the for just he steps to expedite proper much Dividend H It was learned the has written to Salem currency in department or five treasury dividend be paid the Collections short of and fallen reason divithe The bank dend has been on June The comptroller the (Continued on Page Twelve)
7.May 25, 1932The Greensboro RecordGreensboro, NC
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Article Text
SWIMMERS OPEN WOULD COLLECT CLASSES SOON SUM OF $25,300
Winston-Salem Bank Receiver Seeks to Collect From Fidelity Company
W. H. Spradlin, receiver of the Peoples National Bank of Winston, filed suit in federal court Wednesday to collect $25,300 from the United States Fidelity and Guaranty company. an amount claimed due because of abstractions and misapplications alleged to have been made by employes of the defunct bank The guaranty company, with main offices at Baltimore, Md., is being sued under the provisions of an alleged bankers' blanket bond indemnifying the bank to the extent of $50,loss the acts of dis000 against by honest bank employes bond was issued The indemnity March 1928. according to the complaint filed by Mr. Spradlin. former resident of Greensboro The bank closed its doors June 25, 1931. In Case. sets forth that the The complaint bank's capital stock was never more than $175,000. It calls attention to the federal laws making it crime for officials to lend any one person one time amount more than cent of the capital stock of per bank. The complaint recites that while the bond was effect Taylor M Simpson, an employe of the Peoples bank, collusion with other employes of the bank. fraudulently abstracted and misapplied funds the bank in making unlawful loans H. Spaugh. The complaint alleges that the in question were in excess of bank's instance and in others wherein the of
Registration For Free Swimming Lessons Already Started At Y. M. C.
Men and boys are now registering the M. for the annual free school which will get under way the M. A. pool starting Monday of next Special is called to the fact that two classes have been provided for men this year by the school. The instruction for this group will be given o'clock each night during the was pointed out that there were almost as many men in city who are unable to swim there are is estimated that per cent one in every four who have not learned to Confidence Method. The confidence method of teaching swimming will be used in all classes. This method of instruction has recognition in many parts the country, and has been adopted by many and camps. The advantage offered by this system that it produces confidence confidence produces the swimmer. Many have actually been taught to swim in one lesson by this method. Swimming one of the best forms of exercise and recreation that one use and is expected that the pool will be crowded each day next week with folks who are anxious to learn this useful Ten classes will be held each day starting Monday and the enrollment will be limited to 300
Made Parties To Suit Started By Bank Receiver
Judge Johnson Hayes signed motion federal court Wednesday making Spaugh Taylor Simpson, parties the suit brought by lin, receiver Peoples National bank Winston against United States Fidelity Guaranty company several weeks In this action the receiver sues the guaranty company and Spaugh and for recovery of because alleged illegal which Simpson, bank employe, made to Spaugh and others before the closed year. The guaranty company filed answer Wednesday denying liability.
