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SUITS FILED TO RECOVER FOR DEFUNCT SPARTAN BANK
Receiver For Dollar Savings Suing Former Officers For $389,000
SPARTANBURG Sept. 17-Charging that gross mismanag and neglect on the part of officials brought about the closing of the Dollar Savings Bank last December Luther K. Brice. receiver. yesterday filed suit in Court of Common Pleas to recover sums aggregating Defendants listed in the complaint are W. S. Glenn. Wirron Willson H. B. Carlisle, N. Cudd. A. D. Cudd and A. Sloan officers and directors of the defunct Judgment is prayed in the folNowing sums: 1. For $90,000 as loss on deposits of the Dollar Savings Bank in the Bank of Spartanburg. with interest from December 28, 1929. 2. For $50,000 as the loss involved in the purchase by the Dollar Savings Bank of 500 shares of its own stock, with interest from October 17. 1927 3. For $25,275 08 due the bank by the Spartanburg Baseball Club. with interest from December 28 1929. LOANS TO FAMILY 4. For $61,799.92 due the bank on loans made to Wirron Willson. cashier, and members of his family, together with interest from December 28. 1929. For $12.775 as loss on loans made to A. Geilfuss. his wife, and two corporations with interest from December 28. 6. For $150,000 as damages for other loans and for bringing about the downfall of the bank through alleged mismanagement. Mr. Car- lisle was president of the bank, Mr. Glenn vice-president, Mr. Willson cashier, and N. Cudd, A D. Cudd and Mr. Sloan were directors. The complaint charges that the institution had been insovlent more than three years before its doors were closed. and that the directors were fully aware of its condition They had repeatedly been notified of the condition by the state bank examiner. it was said. Officers of the bank, Mr. Willson. Mr Carlisle and Mr. Glenn, are charged with gross carelessness in the making of loans. the complaint alleging that loans were made to persons who were without financial responsibility and without security, or upon grossly inadequate security. Many of the loans it was said, consisted of discredited notes and securities transferred by the Carolina National Bank for the benefit of that bank and to the great disadvantage of the Dollar Savings Bank COLLECTION ON LOANS Further, it was stated the officers were negligent and careless in the collection of loans due. with the result that they are now in such condition that only small part is collectible. Directors are held responsible in this connection by the receiver for not inspecting the loans and failing to take reasonably necessary steps to collect them. The complaint concludes: "That by reason of the matters and things hereinbefore set forth and by allowing the funds of the bank to be tied up in frozen loans made to its officers and directors and insolvent parties. and upon inadequate security and by their gross and negligence as aforesaid. the defendants herein caused great losses to said bank and finally caused the wreck and ruin of said bank and the loss of practically all its assets. The paper sets forth that the bank's indebtedness when it closed was $408 483.96 including two notes for a total of $47,226 made few days before the close one to the Carolina National Bank for $24,000. secured by collateral notes aggregating 373 and the other to W. S. Glenn for $23,226.1 10. secured by collateral notes aggregating $45 584 37 OWED TO COUNTY The remainder of the indebtedness totaled $361,239.86. including $61 due Spartanburg county: $33,967 67 belonging to the City of Spartanburg: $2.882 due LeRoy Moore master and $307.76 due R. Burton Hicks, probate judge. The receiver claims the officers and directors of the Dollar Savings bank in disregard of the law. continuously made large and excessive loans to themselves. these loans at times aggregating more than the capital stock and sometimes more than 50 per cent of the total assets of the bank Several loans to officers and directors cited in the complaint were B. Carlisle. president. Glenn. vice president and dicashier and director. $46.787 48; N. Cudd, director, *40.625: O. L. former director $71,748.66: and C. L. O'Neale. former director. $24.002.64
