0d96907cFull suspension, Books examined
Other: Receiver appointed and bank liquidated; large dividend paid to depositors later.
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SECOND BANK IN TOWN IS CLOSED AFTER RUN Only One Left in Cherokee CounSouth Carolina S. C., Feb. The First National bank Gafffailed for business second bank the close in The American State bank closed esterday With failure of the First National. Cherokee county. had only bank doing business Merchants and Planters which was successfully
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Second Gaffney Bank is Closed The First National Bank failed for second bank city to close its doors in two days. yesterday. With failure of First Cherokee County had only bank doing business today, Merchants and Planters which was successfully standing heavy late in President Lipscomb statement declaring make with chain caused the First failure.
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SECOND BANK CLOSES. Gaffney, First National Bank Gaffney failed to doors today, being the secbank in the city to close two The American State Bank closed Thursday. This leaves only the county, the Merand Planters National, which doing business against heavy today.
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TWO S. C. BANKS CLOSE DOORS First National of Gaffney and Bank of Chesnee Locked to Public. for and to take charge of the comb the to BANK CLOSES
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GAFFNEY S. C.. Feb. 14 (U. The second Gaffney bank to close in two days was in the hands of bank examiners tonight. The First National Bank of Gaffney failed open today. Yesterday the American State Bank closed The Merchants and Planters National Bank. the only one remaining open in Cherokee county had withstood a heavy run late today.
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FIRST NATIONAL FAILS TO OPEN FOR BUSINESS FIGHT IN PROSPECT Reductionists Expects to Assault Appropriations for Schools. Columbia, Feb. rapid made today the of the general propriation bill in the House of Representatives, with the bloc" its omy maintaining in virtually all cases and carrying its reduction amendments without difficulty in most of the sections of the bill. Apparently the supporters of the origibill have about reached the point of conceding that the ranks of the reductions virtually impenetrable. One the big fights the on appropriations, however, was today postponed until tomorrow, when the House approved proposal to carry over until then the section of the bill providing for appropriations for the office of the state superintendent of education. hard battle is in prospect amendments that are to be submitted to this section by the reductionist to cut the appropriation under the school by $200,000. The of this eliminate from the appropriation amounts that are now being expended for transportation school pupils, since the genthat the school contains for expenditure these state funds for transportation, the fund being only for the payment of teachers' salaries. Harley, Barnwell, of the leaders the reductionists, said today that the amendment that had been agreed upon group members, personally favor reducschool item by being the amount shown recent figures have been spent year from the state funds purposes. this effect offered. and Harley he would support and also favor the placsome definite provision in the bill bar use any these state funds for transportation purposes. Mr. Harley pointed out that the law does not authorize such expenditure from funds, and that by making the cuts as there would be reduction whatever that would be available for teachers' salaries, the only effect being that these charges then have paid local school instead being paid for by the state. Failure to Consummate Trade with Chain Forces Damaged Bank to Close Its Doors.
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COMPTROLLER IS ASKED TO TAKE OVER AFFAIRS President Lipscomb Says Condition Improved but He Declines to Predict the Future. Failure to complete trade with large banking chain resulted in the First National Bank of Gaffney remaining closed yesterday. stockholders meeting had been called for yesterday morning, but the directors Thursday night, after definitely learning that the contemplated trade could not be the bank not to open. Lipscomb, the president, telegraphed the comptroller of the currency Washington yesterday morning, requesting that representative of the federal banking department be sent here to take charge. Mr. Lipscomb declined to make any statement regarding the condition of the bank, other than to say that he believed it is now in better shape than month ago. So far known, the bank will have to be liquidated. Trouble Precipitated. The troubles of the First National were brought to head following the death January 14 of Maynard Smyth, the president, who was found shot in his garage pistol lying by his side. Federal bank examiners several days later found the bank had suffered loss of little more than $132,000, due, statement issued by the directors, to the checks and drafts." The bank did not close, however, and was named president with Dr. Jefferies vice president. Every effort made was improve condition of the bank during the weeks that intervened, according the offiThe statement of condition issued December showed plus $184,236.52 with deposits totalling The capital $150,000. Asked regarding the probable payment Mr. Lipscomb yesterday declined to press opinion. can't all he would say.
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ANNOUNCES FIRST NATIONAL TO PAY DIVIDEND FOR COURT CLERK OF 50 PER CENT ABOUT AUGUST COUNTY CONTEST OPENS MAKES THIRD ENTRY IN Receiver Has Sent Checks Totalling About $560,000 to IS RACE. Washington for Signing; Will Announce Exact PROCEEDING. Date of Payment Later. Insurance Man to Run With T. M. Caldwell and Conrad Jones for Clerk. Announcement yesterday of candidacy by M. Raymond Robbs, local insurance man, converted the race for clerk of court into three-cornered affair. Caldwell, the incumbent, Conrad formerly with the First National Bank and employed by Dixon, the receiver, have been campaigning for several weeks. Robbs entirely new the local political field, having made race against Mr. Caldwell eight years ago. At that time received handsome He did not offer four years and has sought any other office the meantime. Born 37 the Wilyears ago kinsville Mr. Robbs the late Robbs and Mrs. Mahala Robbs. He reared Gaffney, attended the local schools, obtained higher education the University of South Carolina at lumbia. serving in the army durthe war, returned to Gaffassumed connection the office department of the Board Public where remained two years. He then accepted position with the American State Bank, where worked until five years ago when entered Reports that Mr. Robbs probwould for the had been here several weeks, his announcement yesterday entirely unexpected. Checks for the payment of first dividend of 50 per cent First National Bank depositors mailed the first of this week Washington for signing the office of the the H. Dixon, the currency, ceiver, records in connection with bank be checked Washington, after which the vouch, will signed and returned Mr. Dixon for delivery the depositors. The checking opera tion Washington usually quires about two three weeks, Dickson expects position distribute the dividend, aggregating about the first gust, said yesterday. Definite announcement the exact date of delivery of the checks will be made in advance through The Ledger, Mr. Dickson stated. There for anyone call at his offices bethe date, he said The receiver pay dividends 2,260 proven claims, approximating at the rate 50 per cent, which amount $560,000. Mr. Dixon said that never his years experibank been so large first dividend. This fact speaks exceptionally well for the general financial condition here, opinion, such amount could have been secured for tribution promptly without good The First National Bank closed the middle of this year, less than six months Players Required to Qualify by Next Saturday for Flights Which Will Follow. Qualifying play in the annual Cherokee county golf tournament has been started. Scores must be turned in to some member of the committee not later than next Saturday night, it has been announced. committee consists of Carpenter, Charles Parrish and Allen. Members of the Hamrick and Isaak Walton clubs have access either club during All must pay green fees of 50 cents per day, the committee The tournament will be played flights, which will be arranged according to scores. The number flights will determined by the number entrants. rules require that each player's card be attested. Contestants who fail to qualify play by the dates ordered by committee will automatically eliminated, according the committee. Other rules outlined for the tournament include: "Players shall instruct caddies touch "Artificial tees on all fairways prohibited. 'Players are requested to port inefficient caddies. Prizes be given winners of each flight." footnote says: requested that players qualifying Sunday the Isaak Walton course play early the day possible order to congestion.'
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GAFFNEY BANK TO PAY PERCENT First Dividend For First National Totaling $560,000 To Depositors Today GAFFNEY, Aug. 6-A first dividend of 50 per cent will be paid the depositors of the defunct First National Bank tomorrow, C. H. Dixon, the receiver, has announced. The devidend checks will total approximately $560 000, he stated. Mr. Dixon has arranged for the checks to be delivered to depositors at the old American State Bank building on Limestone street. The First National bank failed to open February 14 of this year, exactly one month from the day Maynard Smyth, president for more than 10 years, was found shot to death. Mr. Dixon who is originally from Florence, has been serving as national bank receiver for several years. He said the dividend to be paid here is the largest first dividend ever declared for closed bank, so far as his knowledge goes.
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FIRST NATIONAL BANK DEPOSITORS TO RECEIVE 50 PER CENT DIVIDEND TODAY AT AMERICAN STATE BANK Ever New Road Largest First Dividend Blacksburg Construction Begins Paid by Broken Bank So Far As Receiver Knows. RECEIVER'S CERTIFICATE MUST BE PRESENTED More than Half Million Dollars Will Be Distributed to Over Two Thousand Depositors. A first dividend of 50 per will be paid depositors of the First National Bank C. H. Dixon, the ginning received has announced. For venience of all the dividend checks totaling approxiuted from the American State Bank building on Limestone street, Mr. Dixon stated. will be required to receiver's certificates receipts for the and checks, Mr Dixon said. distribution the The State Bank building American will continue through three days, from to By Sat afternoon expected urday that the majority the checks will The dividend were for pared in the office of the compof the currency about The vouchers were ago the receiver Tuesday, of the time announcement the dividend was made paying Record. Mr. many years and has been serving national siderable period. paid depositors the dividend He sound financial conditions which has enabled existing here make tions. State February the closed First National Major of under receivers Major Moore the American Dixon the to the National's buton dividend. Mr. fioor the First National the Peoples State Bank by South There entrance by means aratively Close and the opening could handled under the in the Trail of Disasters. Gaffney fact that each and Cherokee county city be escaping the and January Smyth, president First death with pistol by returned verdict his death was examiners found statement issued that First short about $132,000 of the alleged certain and nipulation by the Manufacturing Company of Mr. Smyth placed the petition of Bank American State Bank The closed during the morning 13. The First February the Mr open fatally wounded home Limestone March 30. Two other been blamed the have and several bank have followed. With the National Highway blocked by construction work, traffic Gaffney Blacksburg being routed by the Stacy ferry road. Grading of the new route from Gaffney Blacksburg has started by Jameson Son, contractors, awarded the by the state highway department weeks
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PAYS FOR BUTLER WILL SEEK TO RECOVER FUNDS. Company Blacksburg Bank Receivers Agree to Share Proportionately. The Maryland Casualty Company, of Baltimore, surety, paid $10,000 bond for Lieutenant Governor Thomas B. Butler, ceiver of the Bank of Blacksburg, resigned, to Goodson and B. Bonebrake, present receivers, Monday. Two orders and an agreement between the bonding company the receivers for the prosecution of certain suits with the matter filed Tuesday the office of Clerk Court Caldwell. directed the clerk to deliver the bond to Healy, auditor the Maryland Casualty Company, accept his receipt. specified that the "Maryland Casualty Company be, and hereby discharged from any and all on account said The other order directed the receivers to institute suits an effort recover funds alleged to have been paid by Lieutenant Governor Butler from the receivership Cherokee counthe First National Bank, the American State Bank, the Merchants Planters National Bank, "and possibly others." An agreement to the order directing the suits, entered into between the receivers the bonding company, provides receivers and the company shall share in proportion to the amount loss sustained by each any funds recovered. Lieutenant Governor Butler was reported $29,680.82 short accounts receiver audit filed the clerk's office some time ago. He resigned receiver, Mr. Bonebrake Mr. Goodson were appointed as his The order directing the suits for signed by Circuit Judge Shipp at Spartanburg Monday, follows: 'Whereas the Maryland CasualCompany of Md., surety on the bond of Thos. Butler. former receiver of the Bank of Blacksburg, Blacksburg, and Messrs. Bonebrake and Goodson, the present receivers of the said bank have tered the Maryland into an agreement whereby Casualty Company Baltimore, Md., forthwith to pay said receivers the of ten thousand and dollars, the amount their liability on the said bond Thos. Butler, by reason of shortage as reported their audit dated June 24, 1930, prepared order of court dated March 10th, 1930. The terms and conditions upon which said sum to be are set forth the original of agreement which hereto attached and made part of this order. on motion of /Wilson Wilson, attorneys for Casualty Company, Dobson, attorneys for consenting, ordered: That said contract and agreement of subrogation, hereto attached, be and the same hereby authorratified and approved. "It further ordered: That the are hereby instructand directed forthwith stitute suits they deem necessary against the county Cherokee, receiver of the First National Bank of Gaffney, the Merchants and Planters National Bank of Gaffney, American State Bank Gaffney, B. Butler, and any all other they may be advised for the recovery of any funds to which they may be titled such Copy of Agreement. the agreement attached the order follows: 'Whereas the Maryland Cas-
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FOR FIRST NATIONAL BANK Receiver Preparing to Pay 10 Per Cent More to De- positors Soon. H. Dixon, receiver of First National Bank, has checks general' office Washington for signing for the disbursement of divident to depositors. This will the second dividend since the bank closed February, the cent per been distributed months ago. The per cent will be the original amount claims, will total more than Mr. Dixon said notice will given through The Ledger when the checks received from Washington and are ready delivery.
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Bank Receiver On Stand in Trial Rock Hill. S. C., March 19 C. H. Dixon. receiver for the defunct First National Bank of Gaffney. testified in Federal court today that in his opinion the return of checks given by the Globe Manufacturing Company Bowling Green Spinning Mills and Blacksburg Spinning Mills was responsible for the bank's closing Dixon appeared as witness in the of N. Alexander and Stanhope Sifford, former of the mills. on charges of aiding the late Maynard Smyth. president of the bank in diverting approximately $130,000 of its funds to the mills.
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RECEIVER FOR FIRST NATIONAL BANK OF GAFFNEY ON STAND Considers Returning Of Mills' Checks Causes Institution To Close H. Dixon, receiver of the defunct First National bank, of Gaffney. testified today in the trial Alexander and Stanhope Sifford, former mill executhat. in his opinion, based the records of the First National bank. the return of checks of the Globe Manufacturing company, Bowling Green Spinning and Blacksburg Spinning of which the defendants officials, amounting to around $130,000, responsible for the closing that institution. Mr. Dixon further testified that the obligations due the First Na. tional bank by the Carroll estate, amounted $100,000 more, was not contributing to the closing of the bank. He said the obligations due by the Carroll estate are secured and being collected. Hanes, cashier of the defunet First National bank. testified that the return of these checks caused panicky feeling develop, which resulted the bank that resulted in closing. He also testified that the bank was solvent at the time the run.
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DIXON RECEIVER OF FORT MILL BANK Receiver of First National Here to Handle Both Banks. Dixon, receiver of First National Bank Gaffney, been appointed receiver the recently National Bank of Fort ment made by Pole, comptroller the currency. Dixon divide time tween Gaffney Fort alternating may be attend the business of the banks. His family will continue reside here, he will tinue make Gaffney his home. Dixon went Fort Mill yesterday to take over the closed bank. He has been in Gaffney little more than year and and paid depositors the First National Bank dividends totalling 70 per
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JOBLESS ARMY FAILS RECEIVER APPOINTED TO REACH PRESIDENT FOR CUDD PROPERTIES Police Block Entrances and Leaders Refuse to Send in Demands. Washington, 1,500 demonstrators which paradpeacefully about Washington today failed in its announced of presenting demands unemployment relief President Hoover and on the Senate floor. In fact, nightfall found their slow and their band had officially made either the House congress. At both places, their leaders send their demands police their entrance. committee did enter headquarters the American Labor filed quietly after President William Green emphatically represented Only leader paraders, Herbert that the Benjamin, committee did not return from the Federation building in "five minthe would turned the There the six reported the as Green had given them nunciation The committee protested the federation opposing federal unemployment leaders inspired not interested helpmarch are the working people solving Green their to overthrow replied. "They the and Soviet Union." ended the demonthe day informed by Pelham that and shelter police, would be provided them after morrow morning. Glassford added further that had been asked to leaders of town early tomorrow. Henry Cleveland Named on Application of Gaffney Bank Receiver. Dec. appointed receiver the properties and assets of Cudd, widely known farmer and capitalist of this county, in an der filed Monday morning with W. clerk court, later the day filed $25,000 surety bond with Mr. Miller, as required the order, for the faithful charge of his duties receiver. The order naming Mr. Cleveland receiver for Mr. Cudd. consent action. signed by Thomas Sease, circuit jurist, motion of Russell, attorneys for Dixon, receiver for the First National Bank of Gaffney, stigated the behalf himself and other credijoin and pay their portion the costs. Southard and Jesse Boyd, counsel for Cudd. The order vests Mr. Cleveland full authority the Cudd estimated 20,000 this nearby counties, control operate the lands during the period of receivership. further empowers him to may necessary for the tection, and liquidation the assets and properties the under the orders court and proper Mr. Cleveland further authorsecure funds operate the properties, to employ agents servants and make purchases for the operation lands, and conduct private sales of the Cudd properties and convey lands deeds and conveyance with the consent of the court. The order further restrains any creditors filing actions any against Mr. Cudd and others from pushing actions have already been filed during the pendency the receivership. Creditors further instructed their claims with Mr. Cleveland on before June 20. 1932 all such claims will be forever barred. Mr. Cleveoccasioned by the closing the Carolina National Bank and two Gaffney banks. The business men of this that the owned property by Cudd will bring much excess of soon some temporary difficulties are settled. the receiver will be charged.
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TAKES LOCAL FIRST NATIONAL Man Checks In Receiver, Succeeding Dixon. Campbell was checked Saturday receiver of the National here, Dixon, who transferred receivership First National Bank at Mr. Dixon here for the transfer. returned to Duryesterday afternoon. Campbell receiver of the Carolina National Bank Spartanburg and number other closed in the including National Fort which took over from Mr. Dixon also. Faces Trial. Philadelphia, Jan. debutante's bidden affair and brothslaying the suitor finds Eddie Allen prepared trial tomorrow indictment charging him with murder of Francis Donaldson,