20137. Peoples Bank (Leesville, SC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 27, 1912
Location
Leesville, South Carolina (33.917, -81.513)

Metadata

Model
gpt-5-mini
Short Digest
4e9f4661

Response Measures

None

Description

The People's (Peoples) Bank of Leesville suspended on November 27, 1912 due to bank-specific adverse information: large bad collections and the president's heavy indebtedness and illegal loans to himself. Newspapers report the bank as defunct and attempts to compromise failed; a receiver was discussed. Articles explicitly say no run occurred. Bank type not indicated by name; classified as unknown.

Events (1)
1. November 27, 1912 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bad collections/worthless paper and large personal indebtedness by President Dr. E. J. Etheridge (illegal loans to himself), causing funds to run low and suspension of business.
Newspaper Excerpt
The Peoples' Bank closed its doors on the 27th of November
Source
newspapers

Newspaper Articles (9)
1. December 3, 1912 The Times Dispatch Richmond, VA
Article from The Times Dispatch, December 3, 1912

Click image to open full size in new tab

Article Text

STATEMENT REFUSED Directors of Failed Leesville Bank Hold Meeting. Leesville, S. C., December 2.-Directors of the People's Bank of Leesville, which suspended business last week, met here to-day, but refused to make any statement at this time, An expert accountant is examining the bank's records. Nothing has been heard from Dr. E. J. Etheridge, president of the institution, who is said to be away on a trip in an effort to obtain funds to enable the bank to resume business. The institution's capital is $30,000.

2. December 3, 1912 The Herald and News Newberry, SC
Article from The Herald and News, December 3, 1912

Click image to open full size in new tab

Article Text

Defunct for Year? From the best information obtainable, it seems that the bank has been practically defunct for a year and that its condition was known to the State authorities. It is also stated on reliable information that the State bank examiner has not made an examination of the bank since last February. The failure of the People's bank is due, it is said, to bad collections, which means that the bank has probably taken a lot of worthless securities. The bank only has about $20,000 in deposits, according to the books of the institution. and it is probable that the depositors will be paid dollar for dollar. although since the closing of the bank has become known there has been much uneasiness among those who placed their savings in the bank's keeping. It is stated that Dr. Etheridge, the president, is indebted to the bank personally to the amount of about $20.000, and that his outside indebtedness will reach up into the thousands. Efforts to Stay Crash Fail. It is understood that since the condition of the People's bank has been known the National bank of Leesville, has used every effort to stay the suspension of its neighbor institution, with the hope that arrangements might be perfected whereby the People's bank might be liquidated. but the efforts were unsuccessful. The total liabilities of the suspended institution is said to be about $50,000. The directors of the bank are: Dr. F. J. Etheridge, Dr. L. B. Etheridge, W. Aug. Shealy, J. P. Able, Jacob Austin, Carwile Shealy, A. L. Eargle and J. P. Copeland. Dr. E. J. Etheridge is president and W. Aug. Shealy. cashier. Meeting Today. There will be a meeting of the stockholders and directors of the suspended bank held in Leesville tomorrow morning, at which time efforts will be made to perfect arrangements for the paying off of depositors. The People's bank has been organized only a few years ago, the capital stock being $25,000. This is the second bank failure in Lexington county this year, the Lexington. Savings bank, the oldest banking house in the county, having closed its doors in March.

3. December 3, 1912 The Herald and News Newberry, SC
Article from The Herald and News, December 3, 1912

Click image to open full size in new tab

Article Text

LEESVILLE BANK FAILS Bad Collections Cause Given-Liabilities $50,000-Depositors May be Paid in Full. Lexington, Dec. 1.-The People's bank, of Leesville, in this county, has voluntarily closed its doors, the suspension having been inaugurated on Wednesday last, when the funds of the bank ran so low that the cashier found it impossible to continue the business of the institution. Dr. E. J. Etheridge, president of the bank, has been absent from Leesville for a week, and all efforts to locate his whereabouts by his family and close personal friends, have proven futile. When last heard from, it is stated, he was in Orangeburg, from which place he talked to friends in Leesville over the long distance telephone.

4. December 3, 1912 Yorkville Enquirer York, SC
Article from Yorkville Enquirer, December 3, 1912

Click image to open full size in new tab

Article Text

TUESDAY, DECEMBER 3, 1912. SOUTH CAROLINA NEWS. - Senator Hall of Cherokee, proposes to introduce a compulsory education bill at the next session of the senate. D'Dell, pre- Petitions are being circulated in Spartanburg county asking for an election on the question of re-establishing the county dispensary. ontgomery. - Lexington, December 1: The Peodin. ple's Bank of Leesville, Lexington county, has closed its doors. Dr. E. J. Etheridge, president of the institution, is reported missing, is information received here tonight. Poor collections are said to be the cause of the bank's Carter. action. The bank's liabilities are said Thite. to amount to $50,000. The capital stock of the institution is $25.000. This Hardin. is the second bank in the county to Bays. close its doors within the past year, Phillips. the Lexington Savings bank here having suspended business last March. - Columbia, November 30: Henry A. Simons, former cashier of the Richland Savings Bank and Trust comCauthen, pany, was placed in the Richmond county jail tonight on the charge of breach of trust, with fraudulent intent. Officers of the bank said tonight that Simons is about $7,000 short Brock. in his accounts. He was arrested two days ago at Hamilton, Ohio, and Meyers. brought here tonight. He is well To be supknown here, having been connected with the bank for three years. - After litigation extending over MorE. several years, the Tennessee supreme court has ordered that C. J. Herbert be Shell. turned over to the South Carolina authorities; but Herbert has appealed to the United States court and secured a stay of thirty days, thus keeping out of the custody of Sheriff Coleman, of Richland county, who went to Tennessee last Friday after him. Herbert was indicted in Richland county three years ago on the charge of having BrunN. swindled the defunct Seminole Securities company out of $98,000. His indictment was at the same time of D. Guess, John Y. Garlington and James Stobo Young. Garlington is serving a sentence of three years in the penitentiF. ary. Young has been pardoned. - The case of B. R. Tillman, Jr., and his former wife, Mrs. Dugas, was before the supreme court yesterday. It League is a suit for the possession of the children which were given to Mrs. Dugas, then Mrs, Tillman three years ago. At Jones, prethe hearing last week affidavits were submitted alleging that young Tillman was drinking as late as last month, although he claimed the contrary. The hearing was postponed until yesterday in order that young Tillman might submit affidavits in contradiction. A number of such affidavits were submitted. The court left the children in the custody of Mrs. Dugas but reserved its final ruling. - Columbia correspondence of the News and Courier: Spea about the seizure of the beer consigned 10 use here at the Shriners' banquet, and HutP. which was released on the opinion of the assistant attorney general that beer ordered and intended for such McM. purposes was not a violation of the dispensary law, Governor Blease said after this beer had been seized it was reported to him that 12 cases of liquor had been ordered and shipped Conferhere for the Elks yesterday for use at the smoker they gave the Shriners, onference. but the governor said that after the North Caropinion of the assistant attorney general, of course, this whiskey was not conimore molested. He said that he believed this was a violation of the law, but from that if it was law he was going to recommend to the legislature that it from be changed, for he thought liquor and beer used for this and other purposes from ought to be purchased from the county dispensaries.

5. December 6, 1912 The Herald and News Newberry, SC
Article from The Herald and News, December 6, 1912

Click image to open full size in new tab

Article Text

declare directors able to realize from the president of the institution what he owes it the probability is that a reorganization will be effected and the bank will be continued. On the other hand, should they fail in this, the stock will be Siquidated and the directors and stockholders will pay off the depositors. The deposits of the bank amount to about $18,000. The bank has a capial of $30,000 of which $19,00 has been paid in. Hope to Avert Loss. The directors are all men of integrity and good business men in the community and are able to pay the depositors. Besides there are securities amounting to a large sum that are considered gilt edge and the directors hope that the affairs of the bank may be wound up without loss to either depositors or stockholders. B. J. Rhame, State bank examiner, wired the cashier today that he would be glad to come to Leesville and assist in any way to aid the bank officials in bringing about an adjustment of the bank's affairs and it is expected that Mr. Rhame will go to Leesville in the morning. According to the last published statement the bank September 14 had loans and discounts the amount of $61,430.37, the total resources being placed at $71,283.60. The liabilities, including certificates or money borrowed, were placed at $32,000. The People's bank was organized five years ago, having begun business November 1, 1907. The bank owns its own building on Main street and is commodiously furnished. Dr. Etheridge, the president, has long been identified with many business enterprises and is well known throughout the State. His integrity Whas never been questioned. He has lost heavily in the Etheridge Automobile company of Columbia, of which he was president. He owns what is generally termed the finest residence in Leesville, but there is said to be mortgage on this held by a Columbia bank for $15,000. He was chief promoter in the establishment of the Leesville Mattress factory and has been its president since it was put in operation some years ago. This plant was closed during the last few days and the superintendent said today that the plant would not be operated further until Dr. Etheridge's affairs were adjusted. Dr. Etheridge is an ex-member of the South Carolina legislature, having represented this county for two terms in that body. He was in the race for the State Senate in the campaign this year but was defeated. He is an ex-president of the South Carolina Dental association. He is a member of the board of trustees of the Lutheran college for girls at Summerland and was one of the prime movers in securing the college for his community. He is a prominent layman of the Lutheran church. His family is one 'of the oldest and most honoored in the Ridge section of the State. The books and accounts of W. Aug. Shealy, cashier, are said to be in excellent shape and he is held in no wise responsible for the failure of the bank. Mr. Shealy would give out no statement today further than that every effort would be made to secure the depositors. Not a single person today was seen to enter the bank's doors, other than the directors and stockholders, and the business of the town was progressing as if no failure had taken place. Inquiry at the National Bank of Leesville revealed the fact that no run was made on

6. December 7, 1912 The Watchman and Southron Sumter, SC
Article from The Watchman and Southron, December 7, 1912

Click image to open full size in new tab

Article Text

BANK PRESIDENT MISSING YET LEESVILLE BANK MUDDLE IN STATU QUO. Sensation Expected, if Missing President Does not Return, Says Report-Bank Officers Meet and May Issue Statement To-day-Bank Examiner Defers Action-Dr. Etheredge Was Seen in Columbia. Lexington, Dec. 3.-There have been no developments today in the investigation that is being made of the condition of the I oples' Bank of Leesville, which suspended business last Wednesday and whose president, Dr. E. J. Ethedredge, left the town and has not been located. State Bank Examiner B. J. Hhame has been in consultation with the directors of the institution today, having gone to Leesville this morning. The affairs of the institution are still in the hands of the directors, the State bank examiner having agreed, it is understood, to withhold action for a few days, the hope being that the relatives of the president or his friends will be able to make an adjustment that will be satisfactory to the directors. The directors would give out no statement today, but are in session again tonight, and will very probably make an official announcement in the morning. It was learned today from a reliable source that Dr. Etheredge spent Sunday in Columbia in consulation with his wife. He was seen on the streets of that city at about 11 o'clock, it is stated, and told a friend that he was going out of the city; that his train was due to leave at that hour. Just where he should have gone is still a mystery. It is said that he had a number of collections to make in different parts of the State, but all efforts to locate him have proved a failure. It is also stated today on reliable information that a sensation will be sprung within the next few days unless Dr. Ethredge is found. The nature of which, however, the officers do not feel disposed to give to the public at this time. There has been remarkably little uneasiness expressed by the depositors of the bank, since the directors have given their word that all depositors will be paid in full, although the stockholders appreciate the fact that they are wholly responsible to the depositors and that they will in all pro. bability lose heavily thems Ives. The relativés and intir e associaes of Dr. Etheredge still 15 to the belief that the missing I sident is making an honest effort to raise the funds sufficient to cover his indebtedness to the bank and that he will return to his home within a short time; others, however, believe that the missing man is fleeing and that he will not be easily located. The aged father of Dr. Ethredge, one of the best men that has ever resided in this section of the State, is said to be almost heartbroken over the disclosures that has wrecked the life of his favorite son, and has offered all of his possessions in order that the creditors of the bank of which his son was the president, might be paid in full.

7. January 1, 1913 The Watchman and Southron Sumter, SC
Article from The Watchman and Southron, January 1, 1913

Click image to open full size in new tab

Article Text

DR. etheredge AT LEESVILLE. Possible Settlement of Bank Affairs on Saturday. Lexington, Dec. 26.-Much interest centres in the meeting of the directors and stockholders of the Peoples' Bank. of Leesville, to be held on Saturday of this week. The Peoples' Bank closed its doors on the 27th of November, after its president, Dr. E. J. Etheredge, had absented himself from the town for several days. Dr. Etheredge owed the institution something like $20,000, it is stated, having violated the State banking laws in loaning to himself more than is allowed by the statute. For the loans he had secured Dr. Etheredge deposited with the bank a great deal of paper, much of which is said to be totally worthless. It is generally believed now that Dr. Etheredge is at his home in Leesville, where he remains secluded from the public, and where he has been making an honest effort to secure funds to square himself with the bank and to clear his other outside indebtedness. He has been addressing letters to his friends in different sections of the State, dating them at Leesville, but having them posted on the train. It is believed that, if the other indebtedness of the president-which is said to reach up into the thousands, far in excess of his obligations to the Peoples' Bank-can be amicably adjusted so that no criminal proceedings will be instituted against Dr. Etheredge, his relatives and friends will make good every dollar that is owing the bank. That is they will offer a compromise, the understanding being, however, that the bank will release Dr. Etheredge from further liability and agree that no action will be brought in the Criminal Courts. In the event that the stockholders and directors at the joint meeting Saturday refuse to accept a compromise, the next step will likely be to place the affairs of the bank in the hands of a receiver, and this step will be taken at once. It is an established fact that the depositors will be paid off in full, there being sufficient collateral held by the bank to raise funds enough for this purpose, besides the stockholders, under the law, are liable to the depositors. Whether the directors and stockholders will be willing to submit to a loss themselves, if any there be, and relieve Dr. Etheredge, remains to be seen.

8. January 1, 1913 The Watchman and Southron Sumter, SC
Article from The Watchman and Southron, January 1, 1913

Click image to open full size in new tab

Article Text

DR. ETHEREDGE AT LEESVILLE, Possible Settlement of Bank Affairs on Saturday. Lexington, Dec. 26.-Much interest centres in the meeting of the directors and stockholders of the Peoples' Bank, of Leesville, to be held on Saturday of this week. The Peoples' Bank closed its doors on the 27th of November, after its president, Dr. E. J. Etheredge, had absented himself from the town for several days. Dr. Etheredge owed the institution something like $20,000, it is stated, having violated the State banking laws in loaning to himself more than is allowed by the statute. For the loans he had secured Dr. Etheredge deposited with the bank a great deal of paper, much of which is said to be totally worthless. It is generally believed now that Dr. Etheredge is at his home in Leesville, where he remains secluded from the public, and where he has been making an honest effort to secure funds to square himself with the bank and to clear his other outside indebtedness. He has been addressing letters to his friends in different sections of the State, dating them at Leesville, but having them posted on the train. It is believed that, if the other indebtedness of the president-which is said to reach up into the thousands, far in excess of his obligations to the Peoples' Bank-can be amicably adjusted SO that no criminal proceedings will be instituted against Dr. Etheredge, his relatives and friends will make good every dollar that is owing the bank. That is they will offer a compromise, the understanding being, however, that the bank will release Dr. Etheredge from further liability and agree that no action will be brought in the Criminal Courts. In the event that the stockholders and directors at the joint meeting Saturday refuse to accept a compromise, the next step will likely be to place the affairs of the bank in the hands of a receiver, and this step will be taken at once. It is an established fact that the depositors will be paid off in full, there being sufficient collateral held by the bank to raise funds enough for this purpose, besides the stockholders, under the law, are liable to the depositors. Whether the directors and stockholders will be willing to sub: it to a loss themselves, if any there be, and relieve Dr. Etheredge, remains to be seen.

9. January 16, 1913 The Bamberg Herald Bamberg, SC
Article from The Bamberg Herald, January 16, 1913

Click image to open full size in new tab

Article Text

COMPROMISE PLANS FAIL. Affairs of Closed Leesville Bank More Muddled. Lexington, Jan. 11.-Contrary to all expectations no settlement was reached yesterday between the stockholders and directors of the defunct People's Bank, of Leesville, and its president, Dr. E. J. Etheridge, whose indebtedness to the bank is said to have caused the institution to close its doors on November 27 last. At a joint meeting of the stockholders and directors of the bank, held on December 28, a committee of three-J. Lee Etheridge, of Augusta; John P. Able, of Leesville, and W. E. Bodie, of Batesburg-was appointed to make a full and complete settlement of the bank's affairs. They were given until January to make their report. It developed yesterday, it is said, that the closed institution i. indebted to the National Loan and Exchange Bank, of Columbia, its correspondent, to the amount of about $15,000. Alleged Offer of Compromise. The relatives of Dr. Etheridge, it is said, have raised the sum of $8,000 and have offered this amount in the way of a compromise for his indebtedness to the institution, which, it is understood, amounts to approximately $18,000. It appears now, also, that the depositors cannot hope to realize more than 50 per cent. any time soon, and to do this it will be necessary for a compromise to be effected with the National Loan and Exchange Bank, of Columbia, which compromise is now being considered. While the stockholders are liable to the depositors to the amount of the stock held by each individual stockholder, under the State banking law, it is not believed that more than $5,000 from this source could be raised. The bank holds a great deal of gilt-edge collateral, but hardly enough to pay off the depositors and the other creditors, too. Receiver Possible. In the event that the compromise can be agreed upon, it is probable that the next step will be to place the affairs of the institution in the hands of a receiver, but this course, it is admitted, will prove disastrous to all parties concerned. Attorneys representing the bank and Dr. Etheridge held a conference in Columbia to-day, but the result of their efforts toward an amicable adjustment could not be learned. F. E. Dreher, of the Lexington law firm of Efird & Dreher, who has been retained by Dr. Etheridge's family, when seen to-day, stated that he had nothing to make public at this time. Dr. Etheridge, the president of the defunct bank, who absented himself from his home for several weeks, is now at Leesville and consulted with his counsel yesterday and is doing all in his power, it is stated, to raise sufficient funds to meet his obligations, not only to the bank, but to his other creditors.