Bank of Hope Mills - Hope Mills, NC

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: October 14, 1910
Location: Hope Mills, North Carolina (34.970, -78.945)

Metadata

Model: gpt-5-mini
Short Digest: 5919a207

Response Measures

None

Description

The bank was closed by order of the North Carolina Corporation Commission (state authority) on Oct 14, 1910 for impaired capital and bad loans; a receiver was appointed later. No run or depositor panic is mentioned in the articles.

Events (2)

1. October 14, 1910 Suspension

Cause: Government Action
Cause Details: Closed by order of the state Corporation Commission due to severely impaired capital (bad loans); state bank examiner took charge.
Newspaper Excerpt: The Bank of Hope Mills, Cumberland county, was closed yesterday by order of the Corporation Commission, on account of unsatisfactory condition of its finances, Bank Examiner Doughton taking charge to hold assets until a receiver can be procured.
Source: newspapers

2. October 22, 1910 Receivership

Newspaper Excerpt: J. H. Hightower as receiver and he will take charge of the defunct bank at once. ... The bank of Hope Mills was closed by the state bank examiner because of impaired condition of the capital stock, the whole of the $15,000 capital being all involved In bad loans made by the bank.
Source: newspapers

Newspaper Articles (3)

1. October 15, 1910 The Times Dispatch Richmond, VA

Article from The Times Dispatch, October 15, 1910

Click image to open full size in new tab

Article Text

BANK'S CAPITAL STOCK IMPAIRED Institution at Hope Mills Closed by Order of Corporation Commission. [Special to The Times-Dispatch.] Raleigh, N. C., October 14.-The Bank of Hope Mills, Cumberland county, was closed yesterday by order of the Corporation Commission, on account of unsatisfactory condition of its finances, Bank Examiner Doughton taking charge to hold assets until a. receiver can be procured. The statement of the commission was that the $5,100 ca ital shows an impairment of about 50 per cent. on account of loans on paper on which the bank must stand losser. A. fuller report from Examiner Doughton shows probably a complete loss of capital stock. L. C. Gilbert is president and L. B. Fleming cashier, the latter having been with the bank, however, only a short time. The name of the former cashier was Lashley. The last report of the bank showed $29,362 resources, with loans and discounts, $16,358; overdrafts, $567; banking house furniture and fixtures, $5.44357.. The deposits, savings, demands and certificates aggregate $15,620. The probable loss of depositors can not be estimated, but stockholders will be assessed to the limit for the benefit of depositors. Flag at Half-Most. The State flag on the Capitol building was at half-mast yesterday, on account of the death of Adjutant-General J. F. Armfield, of the North Carolina National Guard. Quite a party left for Statesville to attend the funeral. which was held this afternoon, with military honors. In the party were Brigadier-General B. S. Royster, former Adjutant-General T. H. Robertson, General Macon, Colonel Alfred Williams, Colonel W. G. Gary, Major R. M. Albright, Major Leigh Skinner, Major R. M. Coburn, Captain Baxter Durham, State Auditor B. F. Dixon, Jr. A special statement from the State Department of Education to-day says the Wilmington public schools are taking a forward step in health matters, in that the dental society of that city has arranged for the examination of the teeth of all the public school children free of charge, a report of the condition of the teeth of each child to be sent by the teacher to the parents. The eyes and ears of the children were examined last year. in accordance with suggestions from the State Superintendent of Public Instruction, through a school health bulletin. The statement adds that Superintendent John J. Blair is interested in this phase of his work, and he and his committee are pushing it. The North Carolina Midland Railroad from Winston-Salem to Charlotte, via Mooresville. is being inspected by Corporation Commissioner H. C. Brown, who left here last evening for that purpose. He will also look into the matter of better depot facilities at Mt. Ulla.

2. October 20, 1910 The Durham Recorder Durham, Hillsboro, NC

Article from The Durham Recorder, October 20, 1910

Click image to open full size in new tab

Article Text

WORSE THAT ANTICIPATED BANK OF HOPE MILLS STOCKHOLDERS MAY LOSE ALL Raleigh, Oct. 14.-Later reports from the state bank examiner as to the condition of the Bank of Hope Mills, Cumberland county, closed by order of the corporation commission on account of unsatisfactory financial condition, indicate that the condition of the bank is worse than was thought at the time it was closed. When the bank was closed it was thought that the impairment was such as to eliminate probably 50 per cent of the capital stock. Now, however, it looks like the worthless or depreciated paper the bank has on its hands will be equal to about the whole of the paid in capital stock, $100,000. It still looks like, however, the depositors will be saved the full amounts of their deposits. This can only be done though by assessing to the limit of the law the stockholders of extra stock, they being liable under the state banking law for double the amount of the holdings in stock in the event of a failure such as this. It is expected that a receiver for the bank will be announced today in Fayetteville.

3. October 27, 1910 The Durham Recorder Durham, Hillsboro, NC

Article from The Durham Recorder, October 27, 1910

Click image to open full size in new tab

Article Text

MR. ELLINGTON TOO ILL J. H. HIGHTOWER NAMED FOR RECEIVER NEW HOPE BANK. Raleigh, Oct. 22.-J. O. Ellington, of Fayetteville, having found it impossible to assume the dutles of the receivership of the Bank of Hope, owing to the fact that he will have to go into a hospital at once to under go an operation for appendicitis, the corporation commission has procured the appointment of J. H. Hightower as receiver and he will take charge of the defunct bank at once. Mr. Hightower is assistant cashier of the Fourth National bank, of Fayetteville, Mr. Ellington being the vicepresident and cashier of this bank. The bank of Hope Mills was closed by the state bank examiner because of impaired condition of the capital stock, the whole of the $15,000 capital being all involved In bad loans made by the bank.