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Peoples South to Carolina bank suspended operation close business December Pay 1931, and placed its affairs the hands State Bank under resolution To Its the board Depositors directors follows "Whereas
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States, $800,000 board and an estimated cost directors Peoples State Bank of liquidation for period South Caroof four reached the This left conclusion years. that the bank cannot safely Further deductions for tinue secured operate bill deposits, rediscounts interests other that the and preferred claims left bank closed thirty days provided law this was added order that To $200,000 which plans for be considered examiners estimated as the Now therefore from capital resolved stock assess- the state bank be ments. This gave the requesttake and retain estimated net total return un- and control of the and business the secured creditors and depositors State Bank South The bank capitalized at Carolina for period thirty days The in accordance capitalization with the increased to this figure from The examiners have 000,000 when the bank prepared late 1929 separate report the purchased the assets of the Peobond First National Bank and here and trust department the moved its principal place of bus- together with this report which from Columbia to Charles- analysis and dation the individuThe examiners, This in their consollidated an effort idated report, said large portion condense mass detail conthe assets purchased from the tained the branch Peoples First National Bank "eith- ports indicate their and reflect in original form or in their status the bank present status have proved attention the appraisal and valorder They also said that in their prepare this opinion "purchasing of various briefly outline banks from time time without the history this bank before properly appraising their assets dealing with its status. coupled apparent lack of pro- The records show that the Peoattention lines of credit ples State Bank and and the apparent inability of the formed the following manner Peoples Bank officers in charge to strengthen Columbia chartered November paper the underlying cause with capital of for condition and the present surplus of of the bank." signed Bristol The report said the audit indiwith cated the majority of the bank's Peoples First National Bank Charlosses in the main office leston. capital and $20.which Charleston. the bond department per cent prothe branches posed to and at Abbeville meet organization Edgefield Directors Florence, LexRichard Allison ington, Moncks Ridge Howard Springs, Bristol and Sumter Cary Method is Criticized James Farr In one section of the report, the James Murphey examiners said method Randolph Murdaugh the bank holding capital stock affiliated corporations subto severe criticism In other section, they reported Peoples Investment Officers Corporation President Jno Thomas holding company stock the Peoples State Bank and Chairman of board. R Rhett. carried in its assets 74,000 shares $880,000." Peoples Securities Company," the report Cashier Scheper On April 1929 an increase turn owned the common stock capital allowed from the Peoples Corporamaintaining the same tion and 12,372 shares of the and same State Directors The examiners said that William Barnwell found trust department of the Scheper, bank "well operated and properly Richard Allison conducted with two Blanton both of which appear the CharReamer. leston office." These exceptions W were discussed briefly in the conOn May 1929. merger consolireport. allowed The Peoples State Bank when comprising the following closed was headed Jerre Dowling, who elected presiHampton Banking Company. dent last November He had been Clarendon Banking Company president of New York Bank correspondent bank of the Peoples Bank Trust Co. State and succeeded Rhett, Farmers and Merchants Moncks Corner who was made chairman of the The State Bank, Dillon Peoples State committee Lamar Peoples Bank Rhett, was chairman of Peoples Bank of Darlington board. This allowed the changThe consolidated report of the ing from the Peoples Bank audit branch HRDL the Peoples audit of the bank and its branches South located Columalso capital from signed by assostate bank examiner, and On December 1929 capital Query and State bank examiners And principal place The receivers of the bank business South CaroWilliam Elliott. of Columbia, McDill and Robert M The following were directors: Rogers Gage, of Chester.
CHARLESTON April text of the report of bank the State Bank South Carolina, filed in federal court here follows Peoples State Bank of South South General Remarks Honorable Albert State Bank examiner Peoples State South Carolina, Columbia, South Caro-
Complying with instructions Albert State Bank submit report examination the Peoples Bank South Carolina December prinplace of business Charles- in general onomie conditions South Carolina and throughout the United and for the
Brown Bristol Samuel Want William Haynesworth Wulbern Morgan Rhett William Barnwell On December 1929 the board directors of the Peoples State Bank authpurchase the assets Peoples First National Bank Charleston and Peoples Bank South capital from result and changed business from South Carolina amendment was allowed February 27, called to Peoples curities Company and Peoples Investment these two porations hold shares capital the Peoples State Bank: Peoples Securities Company owning and the PeoInvestment Company owns 000 complete list of stockholders of the Peoples State Bank of December 1931 shown under dule IX directors elected the time merger were follows Bristol William Cary Mortague Crowson Alester Furman, Jr Geer The following officers were elect-
Bank of that time the capital the bank from an large portion of the assets either their origintheir present have proven and careful study the Peoples First National Bank the purchase would indicated numerous of these losses shown without value time of the For to general operation of this ence made the individual ports This will apply princito the other offices
Bond examiners have compiled separate and report of the department, which under vision of Wulregard to the the bond these appear proportion total had sound and ment been applied in conducting affairs.
Chairman of of Rhett Davis Bristol Wulburn. Billing. The executive committee of the follows: Thos Davis. Bristol general officers salaries chairman, annum per annum per cent of net clusive of excess of $250,plus per cent of said net earnings $300,000.00 and and of all net earnings Thos. per cent exclusive tween and and cent of net earnings clusive loses, excess of $300.Wulbern, vice president, per annum cent of exclusive tween and cent net earnings, exclusive excess of per annum paid executive office Scheper, per annum plus net of and cent of losses, in of See minutes and branch reports for salaries) From this point the Peoples State Bank South continued the purchase various banks and opening offices until fall The bank offices throughout the state, bond departtrust November the board of rectors elected Jerre Dowling president, for term of one salary and bonus of $10,000.00 all payable advance president and elected chairman the executive committee above information flected in minutes November 15. The balance sheet. schedule the general ledaccounts all offices mainand per statement shown from office supporting the consolidated sheet tails schedule VI being shown the individual report each office report of the appraisal of the assets branches shown schedule IV which has been set to indicate the losses timated various classes assets in each office and the time reflect the maining assets estimated this schedule noted that the losses majority indicated appear the following offices: The main offices in CharAbbeville, ColFlorence. GreenGreer Moncks and appears wise this point upon the manner these assets acquired and part the per Peoples State Bank South Main Charleston the principal assets contained this acquired by the purthe Peoples First Nation-
Trust Trust partment the under general sections the trust department located CharColumbia and Greenville, the report the Greenville trust department will found in the Greenville office the examiners preparseparate report the Charleston section, been consolidated with that of Charleston Examiners the Trust department well operated and conducted with two both of which appear the Charleston office.
The collateral security for uninvested funds the consisted principally of counsome these notes beat present and past due the time were cepted by the Trust officer (see contingent bility the form trust for secure loan, appeared but subject and examiners doubt validity an claim either the bank trust depart ment. to be determined receivers and the interested parties Subsidiary Corporation The Subsidiary corporation the ples State Bank are Peoples Company, Char-
Peoples Investment Investment Trust Charleston, Peoples Bond and Mortgage Corporation, Fidelity Trust and Mortgage ComFlorence, Agricultural Credit Association Statements of all these corporations on with the however. special directto the Peoples Investment corthe Peoples Securities corporation. Peoples Investment holding company for the stock the State Bank and carried in assets shares The Peoples Securities Company owned common stock the Peoples Investment Corporation 12.372 shares of the Peoples State Bank other principally holding except the Agricultural Credit
By referring to schedule of this report examiners applied their usual rule determining the value the assets process The total assets mated good being We have added 50 per the doubtful assets (schedule which gives total From this figure we deduct as follows: normal amounting to and $800. estimated cost liquidation period four years, which leaves net returns From this deduct which represents outstanding bills other This return of plus from capistock making Continuing under schedule X the total liabilare shown of January 1932 From this amount examiners deduct $2,418. cabital and surplus; secured claims certificates branches leaving due depositors Application these show return to the creditors and of depositors cent.
While the immediate cause of the this bank may due to steady deposits during the last four months the bank the for the condition in the reflected by reports the examination placed upon The ramifications of the bank and its four branches are that such responsibility cannot placed any one particular officer Howthe opinion the exampurchasing various banks from time time without properly appraising the assets resulted the general assets system large inadeand frozen lines of which the depossystem. This coupled with the lack apparent the lines credit the inability of the officers charge to this paper under'ving the condition and present status of the bank.
Relative to statutory violations noted attention directed the report of the Charwhich states that loans general officers section 4000. code South Carolina and the holding stock affiliated subject to severe
Respectfully submitted Fuller. Associate State Bank Assistant State Bank examiner Assistant State Bank April 15. 1932.
Alaska's production of gold in compared with $7,662,000 for
