Lowndesville Banking Company - Lowndesville, SC

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: October 6, 1897
Location: Lowndesville, South Carolina (34.213, -82.650)

Metadata

Model: gpt-5-mini
Short Digest: 903fa5d9

Response Measures

None

Description

Article (1897-10-06) describes the Lowndesville bank as defunct, with a receiver in place and creditors suing stockholders. No run or panic is mentioned. The bank appears permanently closed and in receivership.

Events (1)

1. October 6, 1897 Receivership

Newspaper Excerpt: The case of the creditors against the stock-holders of the Lowndesville Bank will be argued tomorrow... The Master held that the stockholders were liable... The debts of the Bank aggregate about $15,000. The stock is about $20,000... Lowndesville has had her last bank. ... the stockholders lost every cent that they put in, and now are sued for about seventy-five per cent. additional.
Source: newspapers

Newspaper Articles (1)

1. October 6, 1897 The Abbeville Press and Banner Abbeville, SC

Article from The Abbeville Press and Banner, October 6, 1897

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Article Text

# THE LOWNDESVILLE BANK. Battle of Giants to Take Place in the Court House Tomorrow. The case of the creditors against the stock-holders of the Lowndesville Bank will be argued tomorrow morning in the Court Room before Judge Buchanan. The argument will be upon the adoption of the Master's report of the law and the facts of the case. That report was adverse to the interests of the stockholders of the defunct concern. The Master held that the stockholders were liable to the amount of their stock. The debts of the Bank aggregate about $15,000. The stock is about $20,000. If, therefore, the court sustains the Master's report, each of the stockholders will be liable to about seventy-five per cent. of the amount of their stock. That is to say: they will lose their stock, and will have to pay to the receiver about seventy-five per cent. in cash to settle the debts. If a man holds one share, or $100 worth, he will lose the share, and have to pay $75 to settle up the business. This editor is not a lawyer nor the son of a lawyer-neither is he a prophet or the son of a prophet, but we venture to give the opinion that the Master will be sustained, and the fact will be indelibly impressed upon many persons that there may be great danger in owning bank stock. The legal arguments tomorrow morning will be interesting and instructive, and the decision will be hurtful to one set of clients and greatly to the benefit of another class of litigants. Lowndesville has had her last bank. If a true history of that bank were written it would possibly surpass anything of the kind that has appeared in fiction. It started with only $20,000 of capital. In a few years it become insolvent. The stockholders lost every cent that they put in, and now are sued for about seventy-five per cent. additional. The speeches tomorrow are not intended to give a detailed account of the methods that resulted in this remarkable result, but they will contend for the great legal principle which has just been outlined, namely: That the stockholder may be assessed for a hundred per cent. of his stock, if so much be necessary to pay off the indebtedness. While the rule is a hardship on the stockholder it makes the credit of an insolvent concern good, and saves the creditor from harm.