18658. Bank of Mecklenburg (Boydton, VA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 4, 1908
Location
Boydton, Virginia (36.668, -78.387)

Metadata

Model
gpt-5-mini
Short Digest
3a93b55a93803414

Response Measures

None

Description

The Bank of Mecklenburg at Boydton (with branch at Chase City) closed/suspended in early April 1908 and was placed in receivership. Closure was due to large unauthorized overdrafts/shortages connected to loans to B. E. Cogbill / East Coast Lumber Company and malfeasance by the cashier (E. W. Overby). There is no evidence of a full depositor run forcing suspension — some depositors withdrew beforehand, but the primary cause was bank-specific adverse information/shortage. The institution remained in the hands of receivers and was being wound up (no reopening reported). Dates are taken from contemporaneous reports (closure reported April 4, 1908; receivers appointed by April 15, 1908).

Events (3)
1. April 4, 1908 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Large unauthorized overdrafts and a reported shortage (~$120,000) due to cashier E. W. Overby allowing more than $100,000 in overdrafts to B. E. Cogbill/East Coast Lumber Company; insolvency/shortage forced closure.
Newspaper Excerpt
The Bank of Mecklenburg, which institution closed its doors this morning.
Source
newspapers
2. April 15, 1908 Receivership
Newspaper Excerpt
Judge Barksdale has appointed C. J. Faulkner, Lucius Gregory and J. W. Edmonson receivers of the Bank of Mecklenburg.
Source
newspapers
3. April 16, 1908 Other
Newspaper Excerpt
An investigation ... shows a shortage of $125,000. E. W. Overby, the cashier, has been arrested upon the confession that he allowed B. E. Cogbill ... to overdraw his account for more than $100,000.
Source
newspapers

Newspaper Articles (16)
1. April 15, 1908 The Washington Herald Washington, DC
Article from The Washington Herald, April 15, 1908

Click image to open full size in new tab

Article Text

VIRGINIA BANK CLOSES. Institution at Boydton Placed in Hands of State Officials. Special to The Washington Herald. Richmond, Va., April 4.-The State corporation commission this afternoon directed H. B. Boudar, expert accountant, to proceed at once to Boydton and Chase City to examine into the affairs of the Bank of Mecklenburg, which institution closed its doors this morning. C. J. Faulkner, president of the bank, yesterday telegraphed the commission, requestioning an examiner, but it was not then intimater that the embarrassment would necessitate suspension. It is presumed that the bankruptcy proceedings against the East Coast Lumber Company is the cause of the embarassment of the Bank of Mecklenburg. The report submitted to the commission by the bank, of February 4, indicated a healthy state of affairs. The Mecklenburg Bank, located at Boydton, operates a branch at Chase City, It is not anticipated that any suspicion of fraud will be attached to the proceedings.

2. April 16, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, April 16, 1908

Click image to open full size in new tab

Article Text

PLACES BANK IN RECEIVERS' HANDS Judge Barksdale Puts Messrs. Faulkner, Gregory and Edmonson in Control. EXPERTS BEGIN THEIR WORK Messrs. Boudar, After Conferring With Officials, Take Hold of Books. [Special to The Times-Dispatch.] BOYDTON, VA., April 15.-Judge Barksdale has appointed C. J. Faulkner, Lucius Gregory and J. W. Edmonson receivers of the Bank of Mecklenburg. The two former gentlemen were. respectively. president and vice-president of the bank, and Mr. Edmonson is the largest merchant in the county. AH three are fine business men and gentlemen of the highest character, who will doubtless be entirely satisfactory to a large majority of the depositors, as well as the stockholders. Nothing scarcely has been talked about save the bank matter in town for the past three days. The Experts at Work. Messrs. H. B. Boudar. Bertram Chesterman and Thomas Boudar, expert ac. countants from the Corporation Commission, reached here this morning and held a consultation with Mr. C. J. Faulkner. the president of the Bank of Mecklenburg. These gentlemen began at once to examine the affairs of the bank. It may take several days to complete their work, as the bank has been doing a heavy business with a very large number of depositors. and it will require time to carefully ex] amine the bank and assets, as well as the liabilities of the bank. The friends of the bank are still hopeful that conditions may not be as :bad as has been feared. The loss to the townpeople, as well as the citizens throughout the county, will seriously embarrass many and leave a large in number of women and children who I had their all deposited there in a bad 1 condition to live. t a CHASE CITY BRANCH CLOSED.

3. April 17, 1908 The Pensacola Journal Pensacola, FL
Article from The Pensacola Journal, April 17, 1908

Click image to open full size in new tab

Article Text

HIS KINDNESS BROKE A BANK Cashier Permitted Firm to Overdraw Its Account For $100,000. Special to The Journal. Boydton, a., April 16.-An investigation by the board of directors of the affairs of the Bank of Macklenburg, suspended Tuesday, shows a shortage of $125,000. E. W. Overby, the cashier, has been arrested upon the confession that he allowed B. E. Cogbill, head of the East Coast Lumber company, which is now in bankruptcy, to overdraw his account with. out the knowledge of the president or directors for more than $100,000. The cashier explains that he did this as an act of kindness to Cogbill and without any benefit to himself. It is generally thought that the depositors will receive between 50 and 75 cents on the dollar. Overby has been released on $5,000 bail bond. Expert accountants are now making a thorough examination of the books of the bank. C. J. Faulkner and Lucius Gregory, president and vice-president, respectively, of the closed bank, and J. Edmondson, a merchant. have been appointed receivers for the embarrassed institution. Overby said the shortage had been going on several years: that he had let Cogbill have the money from time to time, hoping that each amount would relieve his embarrassment and he could then return it to the bank. Yesterday he confessed that he had concealed the matter from the president and the board and expressed great contrition for his act.

4. April 18, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, April 18, 1908

Click image to open full size in new tab

Article Text

LOSSES OF MANY WILL MEAN ALL Men, Women and Children Had All They Possessed in Bank of Mecklenburg. INVESTIGATION BEING MADE Books and Accounts Being Gone Over by Experts-All to Fall on Stockholders and Depositors. [Special to The Times-Dispatch.] BOYDTON. VA., April 17.-There are as yet no developments in the matter of the failure of the Bank of Mecklenhurg. Mr. Boudar. his son and Mr. Chesterman took charge of the books and accounts of the bank yesterday, and are working on them. The depositors are still in the dark as to the final outcome, but enough is known to satisfy them that the bank has been fearfully wrecked and that their loss will be very heavy. The people seem dazed, and can hardly realize what has happened. Whatever may be the result of the examination by the expert accountants it will relieve the intense anxiety of those who are waiting to hear the result. Many Lose Their All. No financial crash within the recollection of the present generation has occurred in Mecklenburg, producing such intense excitement and distress. Many poor men, women and children had pretty well all their earthly possessions in this bank and felt perfectly secure, as they had the greatest confidence in the stability of this old institution, which had withstood for thirty-six years the monetary stringency and panics which have occurred during these long years. The president and directors are very heavy losers, nearly all of whom. not only owned a great deal of stock, but were large depositors as well. They believed they had the business of the bank well in hand, and did have it so as far as their knowledge went. Cashier Overby has been at his home since Monday. His brother, Mr. R. C. Overby, who resides in the South, reached here yesterday, and is still with Cashier Overby. Mr. B. E. Cogbill, who was in reality the principal beneficiary in this great transaction, and who, it is charged, brought ruin on Cashier Overby, was on Saturday last adjudged a bankrupt in the United States Court at Richmond. and Mr. Overby is hopelessly insolvent. It is, therefore, conceded that almost all, if not the entire, loss of $120,000 will fall on the stockholders and depositors. Mr. Overby was bonded in one of the trust companies for only $5,000.

5. April 19, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, April 19, 1908

Click image to open full size in new tab

Article Text

MR. FAULKNER DECLINES Will Not Serve as Receiver of Bank of Which He was President. [Special to The Times-Dispatch.] BOYDTON, VA., April 18.-The expert accountants sent out from the Corporation Commission to examine the affairs of the Bank of Mecklenburg are still at work, and have given out no statement as to the result of their oxamination, and will not do so until they can communicate with the bank's correspondents and have their own statement verified. Mr. C. J. Faulkner, who was appointed one of the receivers of the bank. has declined to serve, and a petition has been numerously signed asking Judge Barksdale to appoint Mr. a. Haskins, who was the cashier of

6. April 25, 1908 Virginia Gazette Williamsburg, VA
Article from Virginia Gazette, April 25, 1908

Click image to open full size in new tab

Article Text

RECEIVERS NAMED FOR MECKLENBURG BANK Circuit Judge Barksdale has named as the receivers of the Bank of Mecklenburg Messrs. C. J. Faulkner and J. W. Edmondson, who before the institution became involved by its dealings with the Cogbill and East Coast Lumber Company were respectively president and vice president of the bank, Both receivers are men of high stand. ing and ability, and the interests of the stockholders and others will be safe in their hands. Messrs. H. B. Boudar, Thomas Boudar and Bertram Chesterman, the e%pert Accountants sent by the State Corporation Commission to examine the books of the bank, arrived at Boydton Wednesday morning and are now at work. It will require several days for them to get at the true inwardness of the situation. though Cashier Overbey, now under arrest, already has admitted that he made unauthorized loans of more than $100,000 to B. E. Cogbill and the East Coast Lumber Company, with which the latter was subsequently connected. The Bank of Mecklenburg, which has a branch office at Chase City, was established by the late George B. Finch in 1872, and for years was managed with signal success. Its closing has caused great distress and the gravest apprehensions among all classes of people.

7. April 26, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, April 26, 1908

Click image to open full size in new tab

Article Text

IN THE DARK AS TO AFFAIRS OF BANK Boydton Institution' Closed Two Weeks, but Creditors Do Not Know Conditions. [Special to The Times-Dispatch.] BOYDTON, VA., April 25.-The meetIng of the creditors of the Bank of Mecklenburg. held here yesterday. accomplished but little, If anything, in the way of adjusting the tangled affairs of the bank. The plan of the creditors was to try and secure control of the management of the bank, through Judge Barksdale. and instead of the receivers, to substitute a committee of their own, who would undertake the work for less than the amount allowed the receivers, and then authorize the committee to employ counsel. at a contract price, and in this way to largely reduce the cost of administration and settle up the business at an earlier date: but there are so many creditors, who entertain different views, which must be reconciled. and, again. there are so many fiduciaries and public officers whose trust funds are in this bank, who do not feel authorized to make any concessions or compromises. unless it is sanctioned by the court. that it would seem at present impossible to accomplish the ends for which this meeting was called. The meeting appointed a committee of seven to confer with the creditors and get them to pool their Interests, and all work together for their common good, The most level-headed men among the creditors see the insurmountable difficulties in the way of carrying out this plan, and believe that, after all, it is best to let the regularly appointed receivers go on with their work under the watchful eye and supervision of Judge Barksdale, who has given assurance that he will guard closely the interests of the depositors and have

8. May 5, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, May 5, 1908

Click image to open full size in new tab

Article Text

COGBILL SUED BY COMMONWEALTH Bill Alleges That Former Treasurer of Mecklenburg Failed to Turn in All Revenue. Acting for the Commonwealth of Virginia, Attorney-General Anderson filed suit in the City Circuit Court yesterday against B. E. Cogbill, former treasurer of Mecklenburg county, and the American Bonding Company, of Baltimore, for $4,411.69, alleged to be the balance due the State for revenue collected in 1907 and still unpaid. Cogbill, the defendant, is president of the East Coast Lumber Company, recently placed in the hands of receivers by order of the United States Court. Following the receivership proceedings. the Bank of Mecklenburg. at Boydton, and its branch at Chase City, failed, the general statement being that they held a large amount of the lumber corporation's paper. It is alleged in the memorandum filed yesterday that the amount which the Commonwealth seeks to recover was collected and not turned in to the treasury.

9. May 6, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, May 6, 1908

Click image to open full size in new tab

Article Text

BANK'S LOSS HAS BEEN MADE UP Friends of Cashier Haskins, of Chase City Branch, Put Up the $27,000 Allowed Overdrawn. [Special to The Times-Dispatch.] BOYDTON, VA., May 6.-The shortage in the branch of the Bank of Mecklenburg at Chase City, amounting to about $27,000, caused by overdrafts of the Kershaw Manufacturing Company, has been raised by the friends of Cashier Haskins, and as far as the branch bank is concerned, the assets will pay its full quoto of the liabilities of the two banks. At the mother bank, which was located here, nothing has been done in the way of raising the shortage. The amount is so large that It looks as if Cashier Overby's friends are overwhelmed. The committee of seven appointed by the creditors, which met here last week, appeared to have some plan looking to a satisfactory settlement of the bank's matter, but they did not give it out, as their plans had not sufficiently matured. The committee will meet here again on the 11th of this month to report to the creditors any plan they may have to offer for the benefit of depositors. There has been little else talked about here but the bank trouble for three weeks. The people of Mecklenburg have acted most nobly during these trying times and they deserve much credit for their conservatism. There are some ten or eleven banks in this county, and there has been no attempt to make a run on any of them since the downfall of the mother of banks of the county. It is said that a few, under the spur of the moment, drew out their deposits, but since then have returned them to the bank.

10. May 12, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, May 12, 1908

Click image to open full size in new tab

Article Text

AFFAIRS OF THE BANK. Mr. Thorpe Suggests Plan to Displace Receivers and Settle Up. [Special to The Times-Dispatch.] BOYDTON, VA., May 11.-The committee of the Bank of Mecklenburg met here this afternoon, but owing to the fact that Mr. Boudar's report has not been made public, they were unable to suggest any plans. Hon. R. T. Thorpe, who is a large creditor, was present, and suggested, for the purpose of taking the matter out of the hands of the receivers and have a more economical administration, that the depositors relinquish their claims to the amount of 50 cents on the dollar; demonstrating to the court the solvency of the bank under this plan; that a committee of three of the creditors take charge of the bank with a president and directors to close the affairs of the bank and pay to the depositors all amounts realized pro rata, and whatever may be collected over and above 50 per cent. to be paid to the creditors, thus extending the debtor class time to raise the money to pay off their notes. Under this plan Mr. Thorpe thought the whole matter could be closed up in two years. The committee adjourned to meet again in this place on the 30 instant.

11. May 17, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, May 17, 1908

Click image to open full size in new tab

Article Text

FOR NEW RURAL ROUTES. Sanity of Young Uncertain-Effects of Bank Failure Felt. [Special to The Times-Dispatch.] BOYDTON, VA., May 16.-Mr. M. S. Plummer, United States post-office inspector, from Washington, has been here several days inspecting and measuring rural routes to be established in this neighborhood. He has determined upon the route west of here, by, and in the direction of, Skipwith Depot, on the Southern Railroad. He is surveying the route south of here to run in the direction of Cuscowilla post-office. The case of Frank Young, the convicted murderer of Taylor Young, who has been sentenced to be hung on June 5th, seems a puzzling question to the doctors to decide as to his sanity. Young continues to act like a madman. The doctors have examined him several times, but as far as known, have expressed no opinion. They have written to Judge Barksdale on the subject. It is too late now for a commission of lunacy to act, as the man is under sentence of death and only the judge of the court or the Governor can stay the execution. There is nothing new in the matter of the Bank of Mecklenburg. Those owing money in the bank are making arrangements as fast as possible to take up their notes, but owing to the fact that so much money is locked up by reason of the failure of the bank, the debtors have difficulty in finding parties who have money to lend. The creditors as well as the debtors are now more fully salizing their loss, as they begin to need money in the conduct of their business

12. May 31, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, May 31, 1908

Click image to open full size in new tab

Article Text

CREDITORS DO NOT AGREE Affairs of Mecklenburg Bank Still Puzzle Creditors and Depositors. BOYDTON. VA., May 30.-The committee appointed by the creditors of the Bank of Mecklenburg to try and devise plans to save as much expense as possible in the administration of the bank's affairs, will meet here to-day. From those in a position to know it is learned that the committee is 50 far unable to suggest any plan likely to be adopted by the creditors. Indeed, the matters of the bank have been so advanced by the receivers appointed by the Circuit Court that it seems a difficult task to recommend any feasible plan at this late date. Special Commissioner Marvin Smithey has gone to Chase City to make a report for the Circuit Court on the af-

13. May 31, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, May 31, 1908

Click image to open full size in new tab

Article Text

PROOF OF CLAIMS AGAINST THE BANK [Special to The Times- Dispatch.] CHASE CITY, VA, May 30.-Commissioner Marvin Smithey is here get. ting proof of all claims against the Chase City branch of the wrecked Bank of Mecklenburg. James W. Edmundson and Charles T. Reekes, receivers, are also present. All of these gentlemen are courteous, industrious and well suited for their arduous task. Judge Barksdale made wise selection in appointing them. Many country creditors of the bank have been here, and they take the situation with a complacency that is as commendable as it is remarkable. It seems to be conceded that by good and economical management the assets may eventually pay 50 cents on the dollar to depositors. No one claims more, but it is all conjecture. The loss here will be small in comparison with the mother bank at Boydton. In fact, it is scarcely noticeable in the town. There are few debtors of consequence here to the bank. Business progresses as usual, buildings going up, granolithic walks put down, and new enterprises contemplated. Many say the Mecklenburg bank did not have all of the money in the county "by a long shot." Some expect a small dividend will be paid at the June term of court. but one who should know told The TimesDispatch correspondent that this was very doubtful. Report says that some depositors drew out their balances before the suspension, apprehending danger. and had an inkling of impending disaster from the Cogbill entanglements; so it did not come as "a flash of lightning in a clear sky." as once reported. There are many mysteries connected with the financial catastrophe.

14. June 7, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, June 7, 1908

Click image to open full size in new tab

Article Text

SLOW PRESENTING CLAIMS Commissioner Delayed by Failure of Creditors to Report. Special to The Times-Dispatch. I BOYDTON, VA., June 6.-Mr. Mavin Smithey, the special commissioner appointed by the Circuit Court of Mecklenburg to Hettle the accounts of the depositors and report the entire 11abilities, as well as the assets, of the defunct Bank of Mecklenburg, has not completed his report as yet,' although Mr. Smithey has been busily engaged in his work for some time. He says that not half of the creditors have come in to prove their claims, and if they do not do so he will be compelled to report the deposits of such as fall as, the amounts appear on the records of the bank books. He has given proper notice to creditors by publication in the county papers. The creditors are still in ignorance as to what they will receive from the bank, as it will take considerable time to wind up its affairs. Considering the stringency of the times. the court will not force the debtors to an Immediate settlement, which would cause great distress, unless in the opinion of the receivers a claim might be lost by delay. In this event the claim would be pressed for collection. There will be no distribution of the funds now in hand at the approaching term of the court, which will begin here on the 22d of this month.

15. June 26, 1908 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, June 26, 1908

Click image to open full size in new tab

Article Text

Virginia News. Miss Mary E. Sangster, sister of the late Judge James Sangster, of Fairfax, died at Ashland, on Monday last. The conference of the High School and College Association of Virginia met at the University of Virginia today and will continue through tom rrow. W. J. Quick, who succeeded Prof. A. M. Soule in charge of experimental work at the V. P. I. st Blacksburg, has tendered his resignation to take effect September 1. Mrs. E. P. Winston, of Hanover county, sister of Mrs. General Thomas L. Rosser, of CharJostesville, died yesterday at the University of Virginia Hospital, where she had been under treatment for two weeks. A piece of white oak, weighing twenty pounds, cut near Jefferson's home, "Monticello," was sent by express to Mr. Bryan. From this piece of oak will be made the gavel which will open the democratic national convention at Denver. Miss Eliza Lippet, daughter of the late Dr. C. E. Lippett, was married at her home at "Elmington," near Berryville, Wednesday night, to Bertram Fox, of London, England. Owing to the recent death of the bride's father the ceremony was very quiet. After the honeymoon in Canada the couple 8 will sail for London, their future home. The grand jury of the county circuit court at Boydtown, Va., yesterday afternoon reported five indicuments against E. W. Overbey, former cashier of the closed Bank of Mecklenburg. The jury last night returned four indictments against C. Haskins, assistant cashier of the branch bank at Chase City. A shortage of $120,000 of the funds of the Mecklenburg bank is alleged. At Carter's Run Bapt'st Church, Fauquier county yesterday, Miss Lucy Marshall Holtzclaw and Mr. Lindsay Crawley were married. The bride's attendants were Miss Claude McLaughlin, of f Americus, Ga.: Miss Grace Jones, of Doe Hill, Va.; Miss Grace Brooks, of Leesburg, Va., and Miss Lily Powers, of White Post, Va. The best man was Dr. R. M. Grimm, of Baltimore, and the ushers were Mr. V. H. Kellam, of e Norfolk; Prof. Le Roy Buckingham, of Warren, Obio, and Prof. R. J. Brandeng burg, of Morgan, Md. Tne ceremony was performed by Rev. F. R. Boston. The bride is the only child of Mr. and r Mrs. C. E. Holtzclaw. Mr. Crawley is 8 president of the State Agricultural College of Georgia, The annual meeting of the Virginia Bar Association will be held this year at Hut Springs, August 4 to 6, inclusive, d Secretary of War Taft will make the annual address, but his subject has not yet been stated. Other speakers will be Wyndham R. Meredith, president of the association, on "Federal Control of Intrastate Commerce;" William Lindsay, former United States Senator from Kentucky, on "The Man and the Corporation; Holmes Conrad, of Winchester, on "The Old Virginia County Court;" A. C. Gordon, of Staunton, on "The Legal Foundations of Socialism," and H. C. McDowell, judge of the United States District Court for Western district of Virginia, on "Some Misconceptions as to Federal Precedent."

16. July 23, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, July 23, 1908

Click image to open full size in new tab

Article Text

SUE FORMER CASHIER Receivers of Bank of Mecklenburg Bring Action Against Overbey. [Special to The Times-Dispatch. ] BOYDTON, VA., July 22.-The receivers of the Bank of Mecklenburg have instituted suit against E. W. Overbey, late cashier of that institution, for the sum of $160,000. ,The writ tax alone Is $160. The institution of this suit would appear almost useless, since Mr. Overbey's property is all now heavily mortgaged, but the receivers have been advised by their attorneys to pursue this course, so as to get the business matters of the bank in proper shape and to require the holders of the mortgages to close them out and pay over any balance left to them, and also to protect the receivers from any liability in the matter in future.