19836. Bank of Western Carolina (Aiken, SC)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
October 15, 1931
Location
Aiken, South Carolina (33.560, -81.720)

Metadata

Model
gpt-5-mini
Short Digest
f105b281

Response Measures

Full suspension, Books examined

Other: Bank was put in hands of State Bank Examiner and later placed in receivership; deposits later exchanged for assets under court-approved liquidation plan.

Description

Bank experienced heavy withdrawals (a run) and was placed in the hands of the State Bank Examiner on Oct 15, 1931; it did not reopen as an operating bank — a receiver was appointed and the bank was liquidated/exchanged on a 50% basis beginning March 1932. Sources: Aiken Standard (Oct 16 & Oct 21, 1931), court/receiver notices Feb–Mar 1932. No evidence of reopening as an operating bank; liquidation proceeded.

Events (4)
1. October 15, 1931 Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals accompanied by shrinkage in value of securities and inability to make collections triggered depositor flight.
Measures
Bank directors, after consultation with State Banking Department and attorneys, placed the bank in the hands of the State Bank Examiner; notices posted on doors; branches did not open.
Newspaper Excerpt
Due to heavy withdrawals of deposits, the shrinkage of the value of securities...have placed this bank in the hands of the State Bank Examiner.
Source
newspapers
2. October 15, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed by directors/examiner due to heavy withdrawals and deteriorated asset values; state examiner took control to conserve assets and protect depositors.
Newspaper Excerpt
...have placed this bank in the hands of the State Bank Examiner...he stated he had taken over the affairs of the bank for thirty days.
Source
newspapers
3. February 16, 1932 Receivership
Newspaper Excerpt
TARVER ELECTED BANK RECEIVER By Depositors of Western Carolina. (Feb. 16, 1932).Aiken... elected T. G. Tarver receiver.Aiken, Feb. (The State).Tarver elected over James Peurifoy... (Aiken Standard).Fant... will now turn the affairs of the bank over the receiver. (article summary).1,500 persons attend the stockholders' meeting. (report).Fant...presided.Tarver...has been for several years... (details).Tarver an er. He has for several years the Citizens and Southern bank chain. (OCR-noise).T. G. Tarver, the receiver. (multiple articles).Receiver authorized to proceed with liquidation. (Mar 1932).Exchange of assets for deposits effective March 21. (Aiken Standard Mar 18 & Mar 20 1932).Liquidation on 50% basis. (Mar 18/20 1932).Many depositors trade their deposits for collateral. (Mar 23, 1932).Liquidation progressing. (1933). Please note OCR artifacts in some clippings. (consolidated). (This field is a single best excerpt in prior events.)
Source
newspapers
4. March 21, 1932 Other
Newspaper Excerpt
exchange of assets for deposits will become effective beginning Monday of next week, March 21 (Aiken Standard Mar 18 & Mar 20, 1932).Appraised value determined to be 50 percent; deposits negotiable on 50% basis. (Mar 18/20 1932).Liquidation/exchange plan in operation. (Mar 23, 1932).Approximately $2,000,000 in deposits have been cancelled either through sale or exchange for property or other securities. (Apr 1933). (This field is a single best excerpt in prior events.)
Source
newspapers

Newspaper Articles (13)
1. October 15, 1931 Brooklyn Eagle Brooklyn, NY
Article from Brooklyn Eagle, October 15, 1931

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Article Text

Merger Follows Closing of Three Youngstown Banks Industrial and Commercial Establishments Unite to Aid Youngstown, O., Oct. 15 (P)-Formation of a consolidated bank here to include the First National, the Commercial National and the Mahoning National was under way today following the permanent closing of the City Trust and Savings Bank and Dollar Savings and Trust Company today and the temporary closing of the First National. Closing of the City, Dollar and First, the latter two of which have been under joint management, was necessitated by heavy withdrawals during the last few weeks, officials said. The City Trust had resources of $18,260,000 and the Dollar's resources were $23,242,000 Sept. 29, according to bank statements of that Plans for the consolidated banks are expected to be announced in detail by the end of the week It will be reinforced by $2,000,000 of new capital which has already been subscribed. The Youngstown dis trict's principal and mercantile establishments and many leading citizens joined in the subThe First National will remain closee for two or three days. it was announced. until details of the consolidation worked out. Meanwhile the Commercial National and Mahoning National remain open. As soon as the consolidation plan is completed. all three will continue business under one roof. The Mahoning Savings & Trust Company. affiliated with the Mahoning National. will continue as a separate institution. Resources of the merging banks as of Sept. 29 were given follows: First National. $22,782,000: Mahoning National $7,925,000; Commercial. $9,284,000. Resources of the Mahoning Trust were given as $3,181,000. Jersey Bank Closed Toms River. N. J., Oct. 15 (AP)The Toms River Trust Company did not open its doors today. The notice of the bank's suspension was made public at midnight last night by President A. M. Then who said the heavy withdrawals of State and municipal funds forced the closing. The claims of depositors, President Then declared. would be paid in full. Pennsylvania Bank Fails West Newton, Pa., Oct. 15 (P)The Farmers & Merchants Bank of West Newton was placed in, the hands of the State Banking Department today. John D. Swigart, chief examiner of the department, said the bank was closed because of heavy withdrawa and to protect depositors. He said deposits totaled about $900,000 and were approximately $1,400,000. Small Banks Closed Trenton, N. J., Oct. 15 (P)-G. H. Markley. Deputy Commissioner of Banking and Insurance. announced today the Toms River Trust Company and the Wildwood Trust & Title Company had been taken over by his The Wildwood institution held deposits of $761,141 and the Toms River concern $163,591. Savings Bank Taken Over Tarentum Savings Trust Company was closed today and taken over by the State Banking Department. Examiner John D. Swigart seid the bank had deposits of about $1,800,000 and of $2,300,000. Harrisburg Failure Commercial Trust Company, one of Harrisburg's banks, was taken over today by the State Banking In its last statement the bank listed total resources of $1,606,000 and deposits of $686,000. 12 Southern Failures Columbia. S. C., Oct. 15 (A)Twelve in southwestern South Carolina failed to open their doors today. Albert S. Fant, State Bank Examiner, announced. The banks are the Bank of Western Carolina of Aiken and its nine branches North Augusta, BatesBarnwell, Blackville Lexington and Ellenton and the Bank of Williston and the Bank of Graniteville Assets of the Western Carolina Bank and its branches were placed by Mr Fant at $3,000,000. the Bank of Williston at $350.000 and the Bank of Graniteville at $150,000. Mr. Fant said collections in the banks had been anything but good' and that he advised last night that they not open today. Closing Stock Prices High High. Low High High. High. Close. 38% Fox Film Purity 1700 Un Freeport Tex 313000 Volume to 2:10 000.000 Yesterday's Sales Radio 9300 Gab Snub Low. High. Low. Close. Radio GenAsphalt Abitibi Baking Raybes 1.60 71% Adams Ex 600 Bronze Reading 22% Adams 100 Cigar Real 26 Wabash Rumely Elec Rem Rand 109% 2100 spl 60 Mot Walworth 10% Foods 10600 Ward Alaska 40 10900 GG&E 1800 Warner 2400 GG&E Reyn Met Warren Alleg Mills Reynolds WarrenF&P Allied Ch 9300 Mot ReynoldsTB 3814 Wesson Oil Allis Chalm 103% Mot Richfield West Amal Leather. 1200 Dairy Amerada 29% Western Pac AmBkNote GenR&U Rutland West Pac West Union C&Fdy Gillette Safeway WestghseAB Tiling Gimbel 30% Westgh AmEurope GimbelBr Weston E1 Glidden WestvacoCh Gobel Adolf Southw. Wheel AmHide&L GoldDust Schulte White Goodrich Seabd A WhiteRk Internat Goodyear Goodyr 2½ Wilson AmM&F Gould Nat In Wilson Co Servel Inc Woolwth Grand-Sil Worthington 24 AmP&L Grand Shatt 80% 50% Wrigley Grant Shell Un GtNorth Shubert Thea Am Republics 3% Yellow Truck. 600 6% 1% Grigsby Gru. Simmons 78 19 Youngstown 100 22 22 22 Simms Pet Saf Hackn Sinclair 1% 14 Zonite Pr 1300 Helme SkelO Smelt Sales later edition Hershey Hollnd Dividend. Ex-Rights. And Extras. And Extras AmSol&C Homestake7.80 able Stock. Including Payable Cash Stock Paid year Houdail-H rate. Lows close. South Dividend and Ex Rights deducted carried from net change. HouseF Houston Howe Snd Spaiding Hudson Spencer DAILY MARKET MOVEMENT 13½ 3½ Hupp Mot Spicer 132 112 Spiegel 1/2 ON N. Y. STOCK EXCHANGE 80% 10000 89 Central 1300 1/2 79 Std Indian Ref Wool Indust 1/2 The following table shows the number of advances, 8% 2% StdOCal Ingersoll 50 12% Anaconda StdOExp declines 1931 and the issues unchanged. together with new Inland Stl highs 36 2.40 and lows: Anchor Inspiration Archer Un- New New Sterling Armour Gain Loss changed Total Sterling High 2% Armour Oct. 21% Stewart 84 409 92 585 Interlake 14 29% Asso Stone&Web 98 AssoDG Studebak Oct. 10 203% Atchison Carrier 40% Superht Atchison IntHarvst 23% Oct. 9½ 2% Tenn Corp Powd IntMatch Texas Corp AuburnAut IntNickCa 193 Aviation Paper Tex Paper 27% Baldwin Third Balt 410400 10500 ThirdN1 Barnsdall 398 Interst 81 Beatrice 326 Investors Eq 100 Timken BeatriceCr pf7 181/2 18 Transam 80% Trans 36 Jewel Tea 30 29 29 Bendix Tri-Cont Johns-Man 12600 Tri-Cont 88 Trico 86 123% Kan City Knox 64 728 33% 3½ Twin 20% Kaufm Borden Kayser Ulen 30% 9% Kelly 3% Botany Mills. Kelsey 206 22% Kelvinator 155 24½ Briggs 10 Kennecott 190 69% Kinney Kresge 12(S) 27% 9300 UnTKCar 15 3% Bruns Balke. KrogerGroe 115 BrunsTerRy UnAir&T 20% Bucyrus 91 Biscuit Bucyrus Sept. Carbon Budd Mfg Lenigh 45 Lehigh UnitedCor Sept. 15% Bulova Lehman UnitedCor Sept. 15% Butte LigMyers 18 Butte Sup. Loco (S)202 69% 12% Byers Co Liquid Carb Inc Loose-W 11% 3½ Hec US&ForS Lorillard 16% Camplw&C USGypsm Lorillard 45 CanadaDry Lou-Nash (S) Can Pac Alcohol. 19 Ludlum su Case 36700 USPipe 36 McCallCor 25% CentAgur 51% McCrory 100 Rubber. Century McKspt USSmelting Cerro Cop McKess Cert McK&R Checker Cab. McLellan St 150 114 700 1231/2 Ches & O Mack Truck Chesap Macy Co British Reserve MarshallF ChiMSP&P Mathieson Store Shows Increase Maytag 35 Maytag 50 Melville London. Oct. 15 (A)-The weekly Miami Cop statement of the Bank of England City Stores Cont Pet. 22% Squip Minn M P. shows the following changes in Kan pounds: Pacific Total reserve increased 2,794,000: Pac circulation decreased 2,615,000; bulMonsan Mont Ward lion increased 179,000: other securities decreased 1,760,000: public deCarbon posits increased 3,847,000; other deMotor Prod ComCred Motor Wh posits decreased 9,329,000; notes re35% 20 Mullins 10 serve increased 2,734,000; govern34 Munsingwr 18% Murray Cor ment securities decreased 6,500,000. The proportion of the bank's re100% Com&So Nash 40% Mot 20 19 serve to liability is percent 14% 37% 20 Consol compared with 36.96 last week. Rate Bis 3% Cons of discount percent. NatCasnR 109% Consol Pr 107 Consol Dept French Bank Statement 15% Cons Distill 20 Parts, Oct. 15 The weekly 1% Radiator statement of the Bank of France 30 Steel shows the following changes in 3% Supply francs: 40 Cont Surety sellers Gold increased 726,000,000 sight Nevada Cp balances abroad increased 898,000.NYCentral 000; bills discounted home increased 778,000,000 bills bought Cont Motors. NYNH&H abroad increased 153,000,000 adCont NYNH&H Cont vances decreased 72,000,000: circulaOnt 86% tion increased 334,000,000 current 18 Coty Noranda 1200 20 Rate of discount 2% percent. 34% 25 CrC&C 217 Crucible Am 100 Curtis Am Grain and Provisions 118% CurtisPu pf Am 5% Curtiss Pacific 60% CHICAGO BOARD OF TRADE Curties Previous Ohio on 1400 Open. High Low. Close Close 23 Davison 5% Wheat Oliver 13% Deere Omnibus Dec 49% 50% 49% 50% 50% 93 Hud Otis DelLack&W Mch 52% 53 102 Steel 45% Den&RioG May 55 53% 54% 54% Detroit Corn Match Light 34% 35 35 6% Dome Mines Packard 37 36% 24 37% Dresser May 39 39% Dresser Oats 78% 42% Drug Parmelee Tr. Duluth 22% 21% 21% Pathe Dunhill Int. May 24% 24% 25 Pathe Dupont 26500 Patino Mines Rye 124% 109 Dupont db 110 Penick Dec. 38% 38% 39 38% May 41% 42 41% 41% 185% 93 Eastman 5600 108 103 Dix 21% Eaton Lard 69 149 Dec. 6.55 6.55 6.47 6.50 6.47 20 Auto 1% Co Phelps Phillips Pet Produce Exchange Stocks 66 Pierce 60% 16% 12900 High Pierce Pet 45% Admir Alas Pillsbury Pitts Coal Juneau 35% 18% EquitBldg Coal 39% 10% Erie Come Cumulative Engle Bird 49% 26 FedL&T Prairie Motor 7% Prairie Mining 30 FedWatS Imperial 63 = 2½ 10214 Tire Serv Western Tel PullmanCor TOTAL 18 FourthNI Oil 700 Stocks

2. October 16, 1931 Aiken Standard Aiken, SC
Article from Aiken Standard, October 16, 1931

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Article Text

WESTERN CAROLINA BANK CLOSES DOORS Entire Western Section of State Severely Effected by Failure of Large Institution. IN EXAMINER'S HANDS Directors Hold Meeting Yesterday Thorough Audits Will Be Made. F. & M. Bank Doing Business. Consternation and dismay reigned Aiken and Aiken County yesterday morning when the Bank of Western Carolina, with nine branches in Barnwell, Blackville, Salley, Ellenton, Wagener, North Johnston, Lexington and Batesburg and with total deposits of $2,641,211.12, failed to open its doors for business. The Bank of Graniteville, the majority stock of which owned by the Bank of Western Carolina, also failed to Posted on the doors of the head office in Aiken and of the branch banks was the following statement from W. B. Turner, president: "Due to heavy withdrawals of deposits, the shrinkage of the value of securities, the impossibility of making loans, and for the purpose of conserving our assets and protecting all depositors, I, W. B. Turner, as president of the Bank of Western Carolina. after long consultation with our local finance committee, with the State Banking Department, and with our attorneys, have placed this bank in the hands of the State Bank Examiner." Accompanying this was a notice signed by Albert S. Fant, state bank examiner, in which he stated he had taken over the affairs of the bank for thirty days. The news quickly spread about town and large groups of persons directly and indirectly affected, gathered to discuss the situation: Business, though temporarily stunned, soon began to move however. the first shock of surprise had passed. The Farmers and Merchants Bank opened as usual for business. and weathered a small run during the first two hours. Later in the day. however, with the general atmosphere less strained. the bank's business began to get back to normal. More money, it was stated. was taken in than was drawn out. as the business people and displayed their confidence in its solidarity. The Bank of Western Carolina directors held a meeting early yesterday morning. Two representatives from the bank examiner's office were present, and told the directors that a thorough audit would be made at once determine the exact financial status the parent bank and the branches, that in about two weeks a meetof the stockholders would be callbe presented the facts. he general consensus of opinion is' the Bank of Western Carolina should be able to liquidate and that situation may not be as bad as it seem. The entire western section of the state, however, has been severely eflected by the bank's closing, and word rom the other towns where the pranches were located was anything jut optimistic. Barnwell County was left without a bank. as the Williston bank, to protect its depositors. closed 0 avoid any heavy withdrawals. The statement of condition of the Bank of Western Carolina as of Sepember 29 appears in another column of the paper.

3. October 21, 1931 Aiken Standard Aiken, SC
Article from Aiken Standard, October 21, 1931

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BANK OF WESTERN CAROLINA CLOSED DOORS ON THURSDAY Failure due to Shrinkage of the Value of Securities and Impossibility to Make Collections. The Bank of Western Carolina, often spoken- with pride by the citizens of the city as one of the best banking institutions in the state, closed on Thursday, and with it went its branches at Barnwell, Blackville, Salley, Ellenton, Wagener, North Augusta, Johnston, Batesburg and Lexington. The failure has caused sorrow, and has brought ruin to many people. The Bank of Graniteville, the majority of which was owned by the Bank of Western Carolina, also failed to open. When the bank ended the day's business on Wednesday no one thought that that was it's last day's business. During the early morning the following notice was posted on the door, and soon attracted large crowd. The notice was signed by the president, W. B. Turner, and read as follows: "Due to heavy withdrawals of posits, the shrinkage of of securities, the impossibility of making collections, and for the purpose of conserving our assets and protecting all depositors, I. W. B. Turner, as president of the Bank of Western Carolina, after long consultation with our local finance committe, with the State Banking Department. our attorneys. have placed this bank in the hands of the State Bank Examiner." Accompanying this was notice signed by Albert S. Fant, State bank examiner, in which he stated he had taken over the affairs of the bank for thirty days. The statement published in the showed total resources of $3,606.353.75. and deposits of $2,641,211.12. The failure has been a heavy loss to this county with four branches and several thousand people have suffered The directors held a meeting on Thursday morning. They went on record as favoring an economical plan to liquidate the affairs of the bank. A resolution was adopted proposing to the depositors to cmplay n receiver nt $3,000 per year. and an attorney that was to be cmplayed by contract. In this way large sum would be saved the depositors. It was stated yesterday at the head office that possibly some statement would be given to the public next week. and ns soon as possible meeting of stockholders would be called to elect receiver. The bank was founded in 1887 as the Bank of Aiken. with capital of $30,000. In 1906 it consolidated with the Peoples Bank. retaining the name of Bank of Aiken. In the Bank of Wes tern Carolina with four branches. and it has stendily grown until it now has nine branches. F. & M. Bank Served Public The Farmers and Merchants bank faced this crisis in splendid style. There a small run on the bank Thursday morning but this continused only short President J. P. McNair prepared for any contingency. and had large surplus of cash on hand. The confidence in this bank is unshaken. and each day their deposits have increased and they are serving the public well.

4. January 19, 1932 The State Columbia, SC
Article from The State, January 19, 1932

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Aiken. An order of filed here and directors the closed Bank Western Carolina show cause The which here 25 before Judge DenJustice They went before Jus. the judge, Hayne the Rice of this circuit, was depositor have the time in which the affairs the bank might the hands plan of reorganization be worked out. Shortly before Justice Stabler's order was filed with the county clerk of court an order by Judge Ramage Saluda extendthe for the bank the hands of the examiner was The petition which Justice Stabler named Mr Fant bank the fol. and directors the closed bank B. Turner. B. Holley Albert Willcox. Frank HenW Muckenfuss, Edgar Brown M. Rutland and other directors unknown to petitionThe petition alleged that number officers and directors the bank and their interests are largeto the bank and that nothing has been done to protect the inthe and It has been the policy the bank and and stockholders. the alleged procrastinate and frustrate liq. uidation of said bank and they have from time court on parte hearings granting and extending further said bank examiner and said officers and directors in which maintain keep control and of assets and affairs of bank to great damage detriment and injury depositors and without their wishes the matter, that said Albert directors and stockholders the bank secure another from the court further continuing the which keep the bank and its affairs to the detand damage the positors law and equity and that the bank and stockholders have posed and undertaking to through and put over the deposilors creditors an unlawf and inequitable and unjust scheme and plan settlement with depositors and creditors whereby said directors and stockholders would avoid payment of their obligations to depositors and The petition also charged excessive during the bank has October and the Rea and pany of Aiken has prefer of the bank examiner and without depositors creditors to the amount $3,600. which and obtained parte directing payment same, although is deposiand creditors that unable to its financial also was alleged that 'certain names having been mentioned, have away their the bank closed and unless the court appoints retake petitionand others suffer irreparaand bank of Carolina. Alken had branches Wagener, Batesburg. Johnston and Lexington. Egypt increasing import duties on products SHOW CAUSE

5. February 5, 1932 Aiken Standard Aiken, SC
Article from Aiken Standard, February 5, 1932

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JUDGE PUERIFOY FOR RECEIVER Walterboro Banker Suggested by Steering Committee and Scheme of Bank Reorganization Presented. The name of Hon James E. Peurifor Waiterboro will be submitted to depositors of the defunct Bank of Western Carolina for consideration as receiver The steering committee of small bodies of depositors short time after the bank closed unanimously decided to recommeed the former judge of the fourteenth judicial circuit at a: meeting held here Tuesday afternoon, Judge is one of the most prominent citizens of South Carolina. now receiver of the American Bank and Trust Company of Columbia receiver of First National Bank of Walterboro. He in Aiken, where he has in the past presided over various terms of court. sub-committee from the steering committee composed of Edgar Brown of Barnwell, H. B. Barre of Lexington B. Salley of Aiken, interviewed Judge Peurifoy in Columbia Wednesday, and found him, it is stated, in receptive mood. He will, however, study the situation and reports of the state bank examiner fore making known his definite acceptance or rejection of the nomination as receiver. The depositors are to meet within short time for the purpose of electing a. reciver, and his availability will have been made known by that time. It was decided at Tuesday's meeting of the steering committee that no recommendation as to the attorneys for the receiver would be made to the depositors, it being proposed to leave their selection to the receiver himself and to the advisory committee which will be elected by the depositors to work with the receiver. This advisory committee would be composed of two members from each of the nine branches of the bank and of five members from the Aiken office. Although the steering committee determined upon the nomination of a receiver, the proposed plan for reorganization as presented at the stockholders' meeting January 15 has not been dropped and it was made plain at the meeting that efforts will be made toward the furtherance of the plan. The receiver, who will prepare his machinery for liquidation, will, it was proposed, be informed of the plan and will work toward its matermilization if there is chance of its success. and would possibly stand in line to head the reorganized bank or, at least, assume some important position. If liquidation is absolutely necessary, the steering committee is in favor of exchange of deposits for securities plan. and would limit the liquidation to two years. The salary of the receiver would be $5,000 year. A. proposed scheme for reorganization of the Bank of Western CaroJina which the steering committee went on record at the meeting held Tuesday RS favoring outlined in a resolution adopted, as follows: Whereas it is believed. to be to the best interest of the depositors, creditors, and all parties concerned with the affairs of the now closed Bank of Western Carolina, that it be re-organized and re-opened. and that such re-opening of the Bank will result in much greater savings to the depositors and creditors than a liquidation under present conditions, besides. it will furnish much needed banking facilities and conveniences to the people in the territory covered by the Bank and its branches. now. Be it resolved. by the unsecured depositors and unsecured creditors of the bank of Western Carolina. in meeting duly called and assembled at Aiken, South Carolina that we. such depositors and unsecured creditors, in order to make possible the popening of the Bank of Western CaroBlina and its branches. do hereby make the following proposition. (1) That percent of all amounts due all unsecure deposifors and unsecured creditors be charge ed off of their accounts new on the books of the Bank to their credit or that may he 'ue them the Bank as to make the Bank solv nt institution. or remaining balances of fifty percent left to their credit on the books the Bank. portion thereof of not less than 50 percent will be paid to unsecured deposttors and unsecured creditor as it can be available by Towing selling securities the Bank the recently ation. or other persons. firms porations, as hereinafter provided for, and that the remainder of the fifty percent be paid as funds accumulate for this purpose. but not sooner than one year from the re-opening of the bank. (2) That the holdings of all stockholders shall remain as they now are and the stockholders shall remain diable to the depositors for the full amount of their liability to depositors under laws of South Carolina. and this resolution is not to be construed ns releasing stockholders from said (3) That where depositors owe the Bank on notes. mortgages. or other obligations. their deposits shall be applied as payment on such obligations (Continued on page four)

6. February 5, 1932 Aiken Standard Aiken, SC
Article from Aiken Standard, February 5, 1932

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TWO MEETINGS OF DEPOSITORS TODAY This Morning 11 O'clock and Tonight at 8. Tonight's Meeting Called by Depositors Acting Indepentently Simultaneous with the call for meeting of the depositors of the Bank of Western Carolina by the steering committee to be held at the court house this morning at o'clock, a call for another and an independent meeting of depositors for tonight at o'clock has been issued by number of depositors. will also at the court house. The meeting this morning has been called in order that the mittee may make report of plans for liquidation or it stated in the call, signed by R. Gunter, Coward, R. G. Tarrant, Frank Henderson Salley the steering committee, that "a committee will be present take proxies for the meeting called by the bank examiner on February The meeting has been called night by a number of depositors act ing independently, and 'matters of vital importance will be discussed, stated. understood that certain,records of the affairs of the closed bank, including the list of loans. has been secured and be made public for the benefit of depositors who have not had access to this information. The call for tonight's meeting reads as follows: "To the depositors of the Bank of Western Carolina: "In view of what has gone on heretofore in regard to the affairs of the closed Bank of Western Carolina, we, the undersigned depositors, of the said bank, respectfully call a meeting of all the depositors including every branch of the bank and wheresoever residing, to be held at the Aiken County court house, on Friday, February 5. 1932, at 8 o'clock P. M., for the purpose of discussing and deciding matters of vital importance to the interest of the depositors of the said Bank. and to consider the selection of receiver or receivers for the said Bank. "We feel that each and every depositor should be present and you are urged to attend, in order that he or she may properly be advised in regard to certain matters which affect his or her interest relative to the liquidation of the Bank of Western Carolina, which will be fully discussed at this meeting. "This meeting is called independently of any committee or committees, officers or directors heretofore acting in the premises: and is for the purpose of deciding on matters pertaining only to the interest of the depositors. themselves. The call is signed by P. W. Townsend. T. G. Carpenter. W. J. Moseley. A. Carswell. Loomis, Fritz Schuthofer and G. W. Towner.

7. February 16, 1932 The State Columbia, SC
Article from The State, February 16, 1932

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TARVER ELECTED BANK RECEIVER By Depositors of Western Carolina. Aiken, Feb. the defunct Bank of Western Carohere today elected meeting Tarver Augusta (Ga.) banker, receiver, Tarver elected over James Peurifoy of Walterboro, former circuit court judge. After the election, steering committee the bank and suborganization plan liquidation should mitted the fail. for the banks the charging per cent. the deposits. The sponsors claim, the bank solvent, clear the way obtaining loan from Finance corporation enable the bank to reopen and pay an immediate dividend to depositors. Although the proposal was adopted viva voce vote, sharply opposed by of group the depositors. The tered the that the asked charge off per cent. their accounts, without the stockholders' being called pay their liability. Under the of recent legislative measure applying chain banks, advisory composed three members of the main office the bank here and from each its nine elected aid in reopening of liquidating the bank. was protested by Augustine the grounds that the law had been and that the passed notices dated January called for the holding the under the law then effect. overruled bert Fant, state bank examiner. presided. Fant he would now turn the affairs of the bank over the ceiver. Tarver an er. He has for several years the Citizens and Southern bank chain. 1,500 persons attendthe stockholders' meeting.

8. March 18, 1932 Aiken Standard Aiken, SC
Article from Aiken Standard, March 18, 1932

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Court Orders PETITION STATE OF SOUTH CAROLINA County of Aiken In the Court of Common Pleas T. Ernest Thorpe and P. W. Townsend. on Behalf of Themselves and all Other Depositors and Creditors of the Bank of Western Carolina Who May Desire to Come Into These Proceedings and Share the Expense thereof. Petitioners. Albert S. Fant. as State Bank Examiner of South Carolina. Bank Western Carolina. W. B. Turner. Holley. A. Willcox. Frank Henderson. Prothro. H. Hahn. W. W. Muckenfuss. D. K. Gantt. E. Brown and M. Rutland, as Officers and Directors of Bank of Western Carolina Other Directors of Bank of Western Carolina Unknown to Petitioners. Respondents. The petition of your netitioner spectively shows to this Honorable Court: First: That the Bank of Western Carolina and was at the times hereinafter mentioned. corporation. organized and exisiting under and by virtue of the laws of the State of South Carolina. and. as such. was engaged the banking business with (Continued on page

9. March 18, 1932 Aiken Standard Aiken, SC
Article from Aiken Standard, March 18, 1932

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Bank of W. C. Become Deposits Percent Basis Negotiable on Appraisal of the assets of the Bank of Western Carolina completed last week and the value, as compared with the bank's liabilities, determined to be 50 percent, Judge E. C. Dennis at Barnwell, authorizes the bank's receiver, T. G. Tarver, to proceed with liquidation on this basis. The order of the Court specifically authorizes the receiver, as the first step efficient liquidation, to ac. the appraised value of each asset, plus interest to date of the transaction, on assets, or to exchange these assets with depositors or owners or assignees on Accordingly, the exchange of assets for deposits will become effective beginning Monday of next week, March 21, and as preliminary all agents of the bank, located at the several branches throughout the section formerly served by the Bank of Western Carolina, will meet in Aiken this (Friday) afternoon, at which time the plan will be thoroughly explained. Since the bank has among its assets a large number of amply secured loans on real estate and farm lands as well as on other securities and many notes secured by splendid endorsements, all or any of which are available to the depositor on the exchange plan, it is expected that there will be an immediate demand for these interest-bearing assets. Through the exchange plan, it is believed. the receiver will be enabled not only to progress more rapidly with liquidation, but under this plan the hardships usually incident to liquidation will be avoided. Instead of throwing the bank's assets on an unfavorable and depressed market and foreclosing mortgages and selling out the property of mortgagors for whatever it will bring, thus realizing only a small fraction of the value of the bank's assets for the depositors, transfers of assets will be made on the basis approved by the court. the effect of which will be that the bank's liabilities will be reduced in like ratio to its assets, depositors will receive in exchange for their now dormant deposits securities which will begin immediately to pay them from 7 to percent, forced sales will be avoided and. mortgagors given time to meet their obligations, a much larger return will be assured. Although of primray importance since it is the first step toward tual liquidation and because it makes possible a larger return from the bank's assets. the exchange plan however, only one phase of liquidation. Any and all of the bank's assets are subject to sale or exchange and any particular asset may be selected by the depositor for exchange. It is believed that a very large portion the assets will be absorbed through the exchange arrangement within short period of time. Any depositor may participate in the exchange and the $100.00 or smaller depositor will be given the same attention as the $10,000 depositor. Heretofore the manner of determining the value of the bank's assets and the basis of exchange has been plained. In making the final audit the greatest care and the best of judg- low: ment have been exercised. The audit and appraisal has represented a vast amount of detail work. In one column has been placed the total of the bank's assets appraised at valuation based not/upon what these assets, any particular piece of property or other asset, would forced sale this time; but at the intrinsic value. Men who know have been ployed to make the appraisal. Together with the assets, after allowing for all losses, depreciation, etc., has been included the liability of stockholders, accrued interest, estimated cost of liquidation, etc., over a period of two years. Against the total of assets thus determined is set up in another column the total of the bank's deposits, less secured and preferred claims, Thus determined that, for purposes of liquidation exchange, the basis should be 50 percent, or $1.00 of assets for $2.00 of deposits. The 50 percent basis is not arbitrary, however. This does not mean, for instance, that small depositors who do not exchange their deposits for securities will be limited to 50 percent in cash dividends. It is quite possible that in the long run they will receive a little more than 50 percent. perhaps 52 or 53 percent, possibly little more. But the depositor who exchanges his deposit for an note, mortgage or other security, will be getting a return on his money from the day he makes the exchange, and taking this interest return into consideration he will receive approximately 60 percent against the possible 52 or 53 percent which it is expected will be paid in cash dividends in units of ten percent from time to time during the expected period of liquidation. For example, depositor has $2,000 on deposit. This he exchanges for $1,000 mortgage paying 8 percent. Should he hold this mortgage for three years he will receive, in principal and interest. $1,316.40, or a fraction more than 65 percent on his deposit. On the other hand, should he retain his deposit and does not sell or exchange. leaving it to remain until the final dividend is paid, which will certainly take three years. assuming that he would get 60 percent on his $2.000 deposit. he would only receive $1,200 instead of $1,316.40 as mentioned above. and SO would be the loser in the long run. The advantage of trading deposits for assets thus becomes self-apparent. Every depositor. however, will receive the same uniform treatment and no favoritism will be practiced. In the first place. every depositor will have the same opportunity to select such assets as he or she may desire to cure in exchange for his or her deposit. Nothing will be forced upon any one. There are notes and mortgages. stocks and bonds. and the bank's holdings in real estate from which the selections of assets be may made. And those who do not. for any reason trade their dewill receive uniform dividends posits, as the becomes available money through collections and sales. There are. however. several important points bearing on the exchange arrangement with which the receiver desires the public to become familiar in advance that there will be no misunderstanding Some The appraised value of assets has been approved by the court and in no is the receiver or his agents case mitted to accept less than this appraised value without an additional court order specifically applying to any particular asset. The appraised value is, therefore, not subject to bargaining and the ceiver or his agents will enter into bargaining of any assets. Direct offsets are to be allowed in accordance the law and the general custom of this state. All offsets have already been allowed ducted on the bank's books. These offmay mentioned, approximately $150,000 and all are direct offsets. Offsets claimed by endorsers not in accord with general practice which are in conflict with the general law of equity, the court's order specifically states, will not be allowed. There will be practically no offsets allowed to endorsers. The court order also provides that the receiver shall apply any dividends due endorsers to the liquidation, in part or in full, of any obligation owned by or owed to the bank on which the endorser is guarantor or surety The order also provides that the receiver shall not accept assignments of deposits owned by endorsers until the note or notes endorsed by them are paid or satisfactorily arranged. Every detail is now complete for putting the plan into operation on Monday of next week. The appraisals are mechanically fixed and not subject to negotiation. The nppraised values and the collateral supporting each and every paper are detailed. These appraisals are uniform at all branch banks. In addition. complete audit and recapitulation will be filed with the Clerk of Court for Aiken County as n permanent record. There is also on file with the Clerk of Court for each County and with each branch manager a list of the depositors giving the names and amounts of their deposits. This is public record. All transactions must he made at the local office or branch bank in which the obligation originated or in whose territory the secured proporty located. The home bank and all the branches will be prepared to deal directly with the depositors on the exchange basis beginning next Monday morning. The order of the Court establishing the intrinsic value Bank of Western Carolina deposits at 50 cents the dollar makes these deposits, which have been lying dormant since the bank closed on October 15th. available for use by the depositor on a 50 percent basis. Deposits now become negotizble. and through the use of regular signment forms which have been prepared and which will be furnished by the bank in any quantity desired. the depositor is enabled to make such of his as he desire. money may In this issue of The Standard apa advertisement of pears composite number of Aiken merchants who will accept assigned déposits in change for merchandise or in ment of and other merchants will probably join in the plan as has inaugurated. The advantage of the of assignments is The himself owe the may owes him. The may assign any part of his deposit to the merchant, receiving therefor either merchandise or credit on a debt, for instance. His deposit in the closed bank becomes immediately available to him to supply himself with the necessities of life or his obligations. The merchant who the assignment in the course of trade is likewise enabled to apply the same on his indebtedness to the the bank, he may trade the assignment another merchant or he may purchase obligations from the bank. This is the practical application of the court's order. While it should be remembered that the receiver and his agents are just as much interested in selling a $100 or smaller note as a Large note or mortgage, no one is compelled to ex. change. But there is advantage in the exchange plan in more than one way. For illustration, n person owes the bank $250.00. The bank holds his note for the same. He is unable at this time to pay the same and desires to pay it off at so much per month. In order to gain the time necessary to payment without embarrassment to himself. he may, if be so desires, arrange with friend or acquaintance to buy the note or exchange deposit for the same. In this case the bank would transfer the note to such a party. Either cash or deposits will be nccepted for assets. and a deposit nssignment on any branch in the chain is good on any other branch. Gunter & Wilder have been retained as attorneys to represent the receiver in the collection of stockholder's liability, which will be called for immediately. The assessment of stockholders' liability has already been signed and an order of the court making this offective in expected to be received this week. J. B. Salley. it is understood. will represent the recever as general and associate counsel. Other attorney* will be employed in collections and foreclosures and other activities. Within the past week new bank has been established at Barnwell, in the organization of which the receiver the Bank of Western Carolina has cooperated. To the new Bank of Barnwell the receiver has sold the building formerly occupied by the Barnwell branch of the Bank of Wes. Carolina and the new bank is now occupying this building The new bank begins life under the most favorable The receiver of the Bank of Carolina is working Laward the tablishment of other banks at additional points heretofore served by the Western Carolina chain. He has had long years of experience in handling rmall country banking and in spite of recent failures it is conviction that small banks can unquestionably be operated profitable basis. thought. in which many practical bank men that well-managed bank the must influence in the community. The function of a to first conserve with but to this money in gitimate for the of way and not the function of a invest in

10. March 20, 1932 The State Columbia, SC
Article from The State, March 20, 1932

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READY FOR LIQUIDATION BANK WESTERN CAROLINA Deposits in Closed Institution Become Negotiable on Fifty Per Cent. of Assets Begins Monday. Appraisal of the assets of the Bank Western Carolina, which closed last October, recently been completed the value, compared with the liabilities were determined per cent. The bank's receiver, signed Judge at been proceed with the liquidation of institution on this An the Aiken Standard, the the court and other in with the liquidation the bank, reads in part follows: filed with the clerk of court for Aiken county There file with the clerk court each branch list of the the and their deposits. This public All transactions must made the local office which the originated whose the located. The bank and all branches prepared deal directly with the depositors on the exchange basis beginning Monday morning. The order the court specifically the first step efficient cash for the appraised asset, interest to the ing to these aswith depositors basis of assets to $2 deposits. Accordingly, exchange of assets for deposits become beginning Monday, March Since the bank has among its large number amply secured loans real estate and farm lands other securities and as many notes secured by splendid inall which are any available depositor the change that for will the exchange plan, the enabled not only to more rapidly liquidation but under this plan the hardships usually incident liquidation will avoided. of throwing the bank's assets on foreclosand depressed ing selling out the property mortagors for whatever will bring, thus realizing only fraction of the value the bank's assets for the assets will be made transfers the approved by the court, will be depositors will ratio its assets, for their ceive mant deposits which begin pay them forced sales will avoided and mortagors given time meet much larger rebe assured. Although primary importance first toward tual and because possible larger return from bank's assets, exchange one phase liquidaall bank's sets are subject sale or exchange and any particular may the depositor for large the absorbed tion through period time. Any depositor the and the $100 or smaller the attention the final the greatthe judgment The audit and appraisal vast detail work. Men know values have make the gether the assets, after allowing for all losses, etc., included liability stockholders, accrued interest, estimated liquidation, period of years. Against the assets determined is set another the bank's offsets. Thus that for the basis should 50 per cent., $1 as$2 per basis is not arbiThis does not mean, for instance, do not their deposits for will limited dividends. possible the long receive more cent. or possibly more. But his deposit for an mortwill be getting return his money from the and taking return sideration will receive approximately per against sible per which cash dends units from time during expected period liquidation. depositor $2,000 deposit. This paying Should he for years he will principal interest, or fraction than deposit. On other should retain his deposit and does exchange, ing the final paid, which will that would get his $2,000 deposit, receive $1,200 instead $1,316.40 mentioned would be the Every depositor, however, will ceive same uniform and no favoritism will be practiced. In the first place, every will the to select such or she desire his her deposit. any There and gages, bonds, bank's holdings estate from be made. And those do for trade deposits, will receive uniform dends the money becomes available through the collections and sales. Every detail now complete for putting the exchange eration Monday. The appraisals fixed ject appraised the each and paper detailed. These branch banks. addition, plete audit and recapitulation will

11. March 23, 1932 Aiken Standard Aiken, SC
Article from Aiken Standard, March 23, 1932

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LIQUIDATION OF WESTERN CAR. BANK PR OGRESSING RAPIDLY Many Depositors Trade Their Deposits for ColCo-operating. lateral on On Monday the the Bank of Western Carolina began earnest. All during the day many depositors exercised their rights and exchanged deposits for good collateral. It is impossible to ascertain number of depositors who visited the bank on Monday, but the clerks were busy all day making the transfers. Mr. T. G. Tarver, the receiver, has worked out a perfect scheme to liquidate the bank on basis of exchanging deposits for securities on on the dollar. basis of cents An order has been secured from the Court authorizing this plan, and it is now working smoothly. set of bookkeeping has been set up that might have cost the institution several thousand dollars, but the receiver, reported to meeting of the branch managers last Friday, that the system was installed for less than $75.00. The Receiver wants it understood that everything in the bank is open to public inspection, and that no secrets are being kept from any audit, indepositor. complete cluding complete detailed appraisals, which includes complete detail statement concerning every debtor, the character and kind of his collateral, balance owes, and includes detailed list of the names of the depositors showing the amount of their credit, on file with the Clerk of Court of Aiken County and is public Court's orders and the Receiver's calculation are also on file with the Clork. In other words, every fact pertaining to the bank is on file in the Clerk's office. Copies of the Aiken appraisal were forwarded to each branch on This list not Monday. of loans, but complete only that stocks and bonds and all real estate owned by the bank. At the meeting of branch managers the Receiver referred to the Joint Stock Land Bank Bonds now owned by the bank. He said Bill introduced by Congressman Hare would authorize debtor of the Land Bank to concel his debts with the to the bank bank by delivering bonds of par value with the indebtedness. This means that debtor that owes the Joint Stock Land Bank, say, $3,000, can buy on the present market $3,000 of the bonds for about $1,000, and he would be able to liquidate his $3,000 debt to the Joint Land Bank for $3,000 bonds for which he paid $1,000. The Bank of Western Carolina has 145 $1,000 bonds of the Joint Stock Land Bank, on which the appraisers have fixed price of $450.00 per bond, and on basis of exchange it will require $900 in deposits to purchase $1,000 bond. If the Bank was still in operation the depositor would only receive $36.00 interest on saving deposits. If the depositor would exchange his $900 deposits for one of these bonds he would draw $50.00 year interest or $14.00 more than he would have bank as going concern. Options have al$20,000 of ready been given on these bonds. The depositors are invited and urged to trade. their deposits for collateral. A dollar now has as much purchasing power as $2.00 three years ngo. If depositors will they will practically make good their loses, and help in this liquidation. The stockholders have been notified to make payment on their linbility at once. The receiver has stated that no offect can be made in the payment of liability in any way, but must be paid in cash. This in the law of South Carolina, and the Receiver regrets that he can make no exception to this matter.

12. January 25, 1933 Aiken Standard Aiken, SC
Article from Aiken Standard, January 25, 1933

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STATE OF SOUTH CAROLINA County of Aiken Court of Common Pleas T. G. Tarver ns Receiver of the Bank of Western Carolina, Plaintiff. vs. Mrs. H. E. Pease and Mrs. Annie S. Yarber, Defendants. To the defendants above named: You are hereby summoned and required to answer the complaint in this action, of which A copy is herewith served upon you, and to serve a copy of your answer to the said complaint on the subscriber at his office in Aiken, South Carolina, within twenty days after the service hereof. exclusive of the day of service; and if you fail to answer the complaint within the time aforesaid. the plaintiff in this action will apply to the Court for the relief demanded in the complaint. Aiken, S. C., Nov. 30, 1932. HERBERT E. GYLES, Plaintiff's Attorney. To the defendant Mrs. H. F. Pease: Please take notice that the original summons. complaint. affidavit and order of publication, were on the 2nd day of January. 1933. duly filed in the office of the Clerk of Court for Aiken County and are now on file in said office HERBERT E. GYLES. Plaintiff's Attorney. THE RIGHT WAY TO TRAVEL is train. The safest. Most comfostable. Most reliable. Costs less. Inquire of Ticket Agents regarding greativ reduced fares for short trips. SOUTHERN RAILWAY SYSTEM

13. April 28, 1933 The Index-Journal Greenwood, SC
Article from The Index-Journal, April 28, 1933

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One Bank Receiver Cuts Down Deposits Muchly And Quickly AIKEN, April Journal and Standard says: The receiver of the Bank of Western Carolina yesterday filed with the clerk of court statement receipts and expenses for the past six months. The collection during the period about $65,000. The liquidation of the bank is progressing. When closed there was on posit. Nearly $2,000,000 in deposits have been cancelled either through or in exchange for property other securities. Accurately stated there is only $460,000 of deposits that not been traded or sold.