19870. Bank of Blacksburg (Blacksburg, SC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 18, 1927
Location
Blacksburg, South Carolina (35.121, -81.516)

Metadata

Model
gpt-5-mini
Short Digest
d6a7a59a

Response Measures

None

Description

The Bank of Blacksburg was closed by order of the state bank examiner in April 1927 and a receiver (Lieutenant Governor Butler) was appointed. Articles describe an audit (sealed) returned to court in June 1930 showing a shortage (~$29,690) and the receiver's subsequent resignation in Sept. 1930. No contemporaneous run is reported in the articles; the bank remained closed with receivers pursuing claims against Cherokee County, so classify as suspension leading to permanent closure/receivership.

Events (5)

1. April 18, 1927 Receivership
Newspaper Excerpt
Lieut. Gov. Butler appointed receiver for the bank failed in 1927. Butler was appointed receiver for the bank failed in 1927.
Source
newspapers
2. April 18, 1927 Suspension
Cause
Government Action
Cause Details
Closed by order of the state bank examiner (state action ordering closure).
Newspaper Excerpt
The Bank of Blacksburg ... closed April 18, 1927, order of Fant, state an attorney of Gaffney, elected 1926
Source
newspapers
3. June 26, 1930 Other
Newspaper Excerpt
The sealing of the report ... order signed Circuit Judge Mauldin under date of June 26 ... the sealed audit was returned to the court and today Lieutenant Governor Butler resigned receiver month is now in Union, under physician's care. The report the audit will presented to the next term Cherokee general court which convenes ... a shortage of $29,690 in the accounts of Lieut. Gov Butler receiver of the defunct Bank Blacksburg.
Source
newspapers
4. September 5, 1930 Other
Newspaper Excerpt
shortage found in accounts ... records of Lieut. Gov. Butler as bank receiver show discrepancy ... indicated shortage of $29,680 the receiver
Source
newspapers
5. August 23, 1932 Other
Newspaper Excerpt
Holds county is not liable ... claim by receivers of Bank of Blacksburg against Cherokee County ... transactions between the Butler and the late Gossett, receiver and county treasurer, respectively ... event occurred 1927.
Source
newspapers

Newspaper Articles (5)

Article from The Gaffney Ledger, June 28, 1930

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Article Text

REPORT ON BLACKSBURG BANK AUDIT SEAL FOR THIRTY TO PERMIT CHECKING FOR MISTAKES Judge Mauldin Issue Order Receiver for Examining. LIEUTENANT GOVERNOR IS THE RECEIVER No Hint Leaks Out as to Na- ture of Contents of Thick Report Auditors Turn Over. of the audit of the report affairs of Thos. B. Butler, ceiver of the Bank of Blacksburg, was filed under seal yesterday morning o'clock in the Clerk Court Caldwell the court house. The sealing the report rected an order signed Circuit Judge Mauldin under date of June 26, and which was served Erwin, of Charlotte, the auditor who compiled the and Spartanburg attorney who repreHall, Vassy and Dobson Dobson, Gaffney attorneys who represent certain other depositors consented to the and creditors, order. of the report, which more thick, was livered Lieutenant Governor Butler the clerk's office shortly after original was Public in 30 Days. the terms of the order the sealing of the report, Governor Butler Lieutenant granted reasonable time, exceeding thirty days from the date of said report within which the clerk court, to investigate and examine ascertain whether the report, to correct, and for same is true and the of proposing correcpurpose tions be found therein. errors Unless otherwise directed. the "the clerk shall order the original report part records this cause the public of thirty days the expiration from the delivery the same the him, shall remain under report Refused Service. Southard refused accept Mr. order, the docuservice of the officially served ment Spartanburg by The order was county constable. Auditor Erwin yesterserved minute two day morning office after he entered Sheriff Watkins. Mr. Southard Erwin by Bruaccompanied another auditor who baker, preparing report. sisted Goodson, Blacksburg and by the depositors mortician. one starting the action responsible for Judge Mauldin which the audit March. Southard. thought Mr. have read the auditor's report brought Mr. Erwin both house, and discuss the contents the document. Mr. Erwin he had spent the affairs 53 days Bank Blacksburg and compiling report. Started March. The Bank Blacksburg closed of 1926. The late the spring Ross was first appointed receiver, but resigned after short time and Lieutenant Governor Butler appointed succeed him. cent dividend last September. That the first and only date. When the March term of court opened here Mr. Southard. representing certain depositors, plied for order directing to the affairs and dite payment further Erwin for the work few days later. began the examination the latter March and spent better part two months here. To Determine Errors. The order signed by Judge Mauldin Thursday Greenville states issued for the purallowing the receiver check the report ascer whether contains errors subject to correction alterations before becoming Issued in the Albert Fant. state bank Goode, rectors the Bank Blacksburg, the order follows: March 1930, order this cause His Honor, Judge Mauldin, siding judge, directing that audit the books and accounts Thos. receiver the Bank of Blacksburg, made, designating Erwin has been made appear the court that the auditor work practically complete, and ready report,


Article from The Brattleboro Reformer, September 5, 1930

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Article Text

BANK RECEIVER Lieutenant Governor of South Carolina in Trouble CREDITORS DEMAND AUDIT OF ACCOUNTS Examination in Progress Since Last Resigned Receivership Month Ago and Now Under Physician's Care. GAFFNEY, Sept. audit made by the clerk of here revealed of $29,690 in the accounts of Lieut. Gov Butler receiver of the defunct Bank Blacksburg. Lieutenant Governor Butler pointed for bank when failed 1927. Its creditors last March demanded audit and ordered by Circuit Judge Mauldin. sealed audit was returned to the court and today Lieutenant Governor Butler resigned receiver month is now in Union, under physician's care. The report the audit will presented to the next term Cherokee general court which convenes The Bank of Blacksburg was capitalized $50,000. closed April 18, 1927, order of Fant, state an attorney of Gaffney, elected 1926 He counhis of coming candidate for because his present illness enter the state Democratic primary month.


Article from The Asheville Times, September 5, 1930

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Article Text

SHORTAGE FOUND IN ACCOUNTS OF S. C. EXECUTIVE Records Of Lieut. Gov. Butler As Bank Receiver Show Discrepancy. OFFICIAL REPORTED ILL Daughter Says He's In Serious Condition And Has Nothing To Say. GAFFNEY. S. Sept. Friday by the An here shortclerk court of the Lieutenant Butler receiver the defunct Bank of Blacksburg Lieut. Butler was appointed receiver for the bank failed in 1927. Its creditors last March demanded an audit dered by Circuit Judge Maul- The sealed audit was returned to the court Friday Lieut. Butler as last month and is now Union under care The report the audit will be presented the next term of Chergeneral sessions court, which November M. clerk of court, said any taken the of the cated have be instituted the bank's The bank Blacksburg cap$25,000. was closed by order of A. S state bank examiner. Butler, attorney of Gaffney, was Lieut. Gov 1926. county the He his intention of for governor. but because of his illness enter the Democratic primary of last month SERIOUSLY ILL Garner, daughter of tenant Butler, told the Associated Friday the lieutenant governor lies seriously her home here and would have statement make the reported shortage in counts receiver the defunct Bank of Mr. Butler and too talk the teleMrs Garner He will statement Mrs. Garner declared TO NOTIFY GRAND JURY Sept. -Solicitor Friday would call the the indicated shortage of $29,680 the receiverthe of which Lieut. Gov. Butler receiver. He said the matter would not go before the grand jury. however. before the vember term of court at Gaffney.


Article from The Gaffney Ledger, August 23, 1932

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Article Text

HOLDS COUNTY IS NOT LIABLE FOR MISUSE OF BANK OF BLACKSBURG RECEIVER AND TREASURER Dismisses Appeal from ComRefusal to Act. BASED ON CHECKS DRAWN BY BUTLER Holds County is Not Responsible for UnauthorizActs Unknown to Body. Cherokee county can not liable for the alleged maniof trust funds in which county treasurer may have articipated without knowlthe Cherokee county according decision Judge Sease, filed yesterday Bonebrake Blacksburg, herokee county Judge Sease's decision form order dismissing appeal of the receivers taken previously rendered county holding commissioners without jurisdiction Bank Blacksburg filed claim against Cher county for based transactions between the Butler and the late Gossett, receiver and countreasurer, respectively, petition filed Bonebrake Goodson, claimed two and the other for written Lieutenant Governor the Bank of Blacksboth drawn payable Cherokee county, that the were endorsed by Mr. county treasurer The petitioners contended this with interest from the its transfer should the Bank BlacksWhen the question was presented the county the ended proceedings deciding they pass An appeal from was taken to the circuit Sease's decision and sustaining the commissioners ollows: Bonebrake and receivers of Bank claimants, CheroCounty, defendant. matter came before consent of all parties, Spar tanburg, appeal the receivers the action of the of County Commissioners Cherokee county, dismissing claim filed by the receivers the county, the ground county commissioners had authority jurisdiction pass the claim. the hearing before record oral arguments made, and given leave to submit tvpewritten briefs in support respective contentions. careful consideration matter, reached the conthat the position taken county commissioners must sustained. Apparent Breach of Trust. from inspecthe claim, and from the testimony taken support of ordinary claim against the county. that arise out any contract transaction made authorized done by the county within the their statutory of what appears breach trust participated Butler. former receiver Bank and Gossett. former treasurer Cherokee county. the which they did and of which they notice knowledge the appointed investigate the former Bank of which report made in November more than three years after alleged transaction between former receiver of the Bank Blacksburg and the former treasurer of Cherokee county consummated. which event curred 1927. The claim first filed by present receivers against the county January, 1931. and the board clined consider claim. Nowas given the attorneys the receivers through attorney the of the and from action no stens taken receivers, either by appeal certiorari have the county subsequently action in the court mon


Article from The Greenville News, August 24, 1932

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Article Text

DISMISS Order Filed In Gaffney In Blacksburg Case, Involving Late Butler GAFFNEY Aug. order the Bonebrake and as receivof the Bank of Blacksburg, baschecks Lieutenant Governor Butler when receiver of that bank against has filed Clerk of Court The filed claim and interest from July 1927, the date the checks alleged have been drawn by Butler bank's count, payable to the late Gossett, treasurer of Cherokee county The were endorsed by the contended. Judge Sease, of Spartanburg, in the appeal of the ceivers an adverse decision rendered by the Cherokee county some time is also obvious from consideration the record that the transbetween the former treasurCherokee county and the former receiver of the Bank Blacksentirely with the county affairs by the county board of comThe not have the act on the part the county entirely beyond the scope their authority defined Moreover, the county treasurer received funds, intimated, for the purpose of purpose of his own, cover any defaults his own. the county would not be even though any part of said trust funds been the treasurer in satisfaction of county principle that creditor funds debt, not knowing the source from which funds and without any knowledge breach of trust the part debtor, not implicated the breach trust, and not liable an action to recover such funds.'