20233. Loan & Savings Bank (York, SC)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
savings bank
Start Date
July 28, 1900
Location
York, South Carolina (34.994, -81.242)

Metadata

Model
gpt-5-mini
Short Digest
d777842c

Response Measures

Capital injected, Full suspension

Other: Reorganization with new capital and directors; outside bank offered to advance funds to receiver/liquidator but did not itself act as liquidator.

Description

Bank closed/suspended on/around July 28, 1900 after heavy exposure to the Sutro Cotton Mill; contemporaneous reporting and later articles explicitly refer to a run. The bank was reorganized and reopened in early September 1900 with new capital/directors and resumed business.

Events (6)
1. July 28, 1900 Run
Cause
Bank Specific Adverse Info
Cause Details
Large loan/exposure to the Sutro Cotton Mill which was unable to meet obligations (mill owed bank $21,000-$22,000; large portion of bank capital tied up).
Measures
Stockholders/outsiders arranged new capital, reorganization under old charter; proposals to advance funds to pay depositors; directors elected to reopen.
Newspaper Excerpt
The Loan and Savings bank, that closed its doors two months ago because of a run upon it, has resumed business...
Source
newspapers
2. July 28, 1900 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Inability of Sutro Cotton Mills to meet obligations; mill owed bank majority of its capital, prompting suspension of payments.
Newspaper Excerpt
On account of the inability of the Sutro cotton mills ... to meet obligations, the Loan Savings bank closed its doors at Yorkville today. The bank has merely suspended payment.
Source
newspapers
3. August 1, 1900 Other
Newspaper Excerpt
Messrs James W Hart and W W Lewis are in Chester asking Judge Gage to appoint a receiver for the bank. ... The liabilities of the bank are about $35,000 ... depositors will be paid in full, very probably, but the bank has failed beyond hope of early reorganization.
Source
newspapers
4. August 8, 1900 Other
Newspaper Excerpt
National Union bank ... will agree to advance to whoever may be appointed liquidator or receiver of said Loan and Savings bank ... to anticipate such dividends to depositors of said bank as its assets will justify and secure.
Source
newspapers
5. August 25, 1900 Other
Newspaper Excerpt
Stockholders declined an offer; new capital and reorganization plans being negotiated; looks like receivership but outsiders intervened to recapitalize.
Source
newspapers
6. September 5, 1900 Reopening
Newspaper Excerpt
THE BANK IS OPEN. The Loan and Savings bank is open again. ... All were ready for business. ... deposits of the morning have amounted to something like $5,000. During the whole day not a single deposit was withdrawn.
Source
newspapers

Newspaper Articles (13)
1. July 29, 1900 The News & Observer Raleigh, NC
Article from The News & Observer, July 29, 1900

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Article Text

YORKVILLE BANK SUSPENDS. Inability of Sutro Cotton Mills to Meet its Obligations the Cause. (Special to News and Observer.) Charlotte, N. C., July 28.-On account of the inability of the Sutro cotton mills, Yorkville, South Carolina, to meet obligations, the Loan Savings bank closed its doors at Yorkville today. The mill owes the bank twenty-one thousand dollars, which is more than two thirds of the mill's capital stock. The bank has merely suspended payment. Geo. W. S. Hart is president, W. P. Harrison, cashier.

2. July 31, 1900 The Farmer and Mechanic Raleigh, NC
Article from The Farmer and Mechanic, July 31, 1900

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YORKVILLE BANK SUSPENDS. Inability of Sutro Cotton Mills to Meet its Obligations the Cause. (Special to News and Observer.) Charlotte, N. C., July 28.-On account of the inability of the Sutro cotton mills, Yorkville, South Carolina, to meet obligations, the Loan Savings bank closed its doors at Yorkville today. The mill owes the bank twenty-one thousand dollars, which is more than two thirds of the mill's capital stock. The bank has merely suspended payment. Geo. W. S. Hart is president, W. P. Harrison, cashier.

3. August 1, 1900 The Lancaster Ledger Lancaster, SC
Article from The Lancaster Ledger, August 1, 1900

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Article Text

Sutro Cotton Mill Fails. Also the Yorkville Savings Bank. All the Business Interests of the Town More or Less Involved in the Failure. Special to Charlotte Observer. Charleston, S C, July 28-A special from Yorkville to The News and Courier, says: The Sutro Cotton Mill has gone to the wall and taken with it the Loan and Savings Bank. The Sutro Mill, Mr. T R McClain, proprietor, has been understood to be shaky for several weeks, but the crash did not come until yesterday afternoon, when it became known upon the closing of the bank that its doors would not be opened this morning. The liabilities of the bank are about $35,000 in round numbers, and of the Sutro Mill $60,000. The nominal assets of the Sutro Mill are aboi t $115,000, but it is not at all likely that from these can be realized 100 cents on the dollar of indebtedness. It is not practicable to state the assets of the bank. Its capital is $36,000 and its de positors will be paid in full, very probably, but the bank has failed beyond hope of early reorganization. Mr. McClain will at once file a petition in bankruptcy. Messrs James W Hart and W W Lewis are in Chester asking Judge Gage to appoint a receiver for the bank. The president and board of directors have offered to give their services in winding up the affairs of the institution free of charge. There being but one bank here nearly all of the business interests of the town are involed. There are a few exceptions. There is not a great deal of excitement. The people are taking the situation as quietly as could be expected.

4. August 8, 1900 Yorkville Enquirer York, SC
Article from Yorkville Enquirer, August 8, 1900

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Article Text

MR. RODDEY'S OFFER. The action of Mr. W. J. Roddey, in offering assistance in the liquidation of the business of the Loan and Savings bank, was referred to in the last issue of THE ENQUIRER. Mr. Roddey's plan contemplated the temporary establishment in Yorkville of a branch of the National Union bank of Rock Hill, of which he is president, and the liquidation of the affairs of the Loan and Savings bank, through this institution. It further contemplated the idea of making the arrangement permanent, should the business interests of Yorkville, after having made a thorough test of the facilities offered, so desire. The proposition, however, was not accepted at once by the board of directors of the Loan and Savings bank, and at a subsequent meeting of the directors of the National Union bank of Rock Hill, it was withdrawn in the following resolution : That upon the advice of counsel, the National bank is constrained to decline the position of liquidator of the affairs of the Loan and Savings bank of Yorkville, offered by the board of directors of said bank. Resolved further, that the National Union bank will agree to advance to whoever may be appointed liquidator or receiver of said Loan and Savings bank, such sums of money as may be, from time to time, required to anticipate such dividends to depositors of said bank as its assets will justify and secure. Resolved further, that in the event of the party so appointed liquidator or receiver being approved by this bank as fit and qualified, and should he desire, during the liquidation of the affairs of said Loan and Savings bank, or until some banking institution shall be established in Yorkville, to conduct a banking business for the convenience of the citizens of Yorkville and vicinity, the National Union bank of Rock Hill will agree to advance to such approved party, a reasonable sum of money to enable him to conduct such banking business.

5. August 8, 1900 Yorkville Enquirer York, SC
Article from Yorkville Enquirer, August 8, 1900

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# STATUS OF THE BANK. The legal status of the affairs of the Loan and Savings bank are practically the same as on last Saturday; but it is likely that there will be some changes within the next few days. The attorneys representing different claims and who filed the bills which took the bank into court, agreed last Friday night, on a satisfactory adjustment of their respective contentions, and so far as they are concerned there seems to be no probability of future complications. After a number of conferences among themselves, the bank officials have about come to the conclusion that there was really no reason why the bank should have ever closed its doors. Some of them are of opinion that the securities in the vaults are sufficient upon which to raise enough money to satisfy depositors, and that especially with a little indulgence on the part of creditors, there is no reason why the institution should not be taken out of court and continue business as before. Judge Gage has been asked for an order allowing the directors of the bank to receive such outstanding assets as may be collected without suits at law, holding the same, however, pending further orders of the court. If a receivership order is finally signed, the probability is that Mr. J. S. Brice will be named as receiver, and Messrs. W. W. Lewis and W. B. McCaw will be his joint attorneys. As yet there have been no legal proceedings in the case of the Sutro Cotton mill. Its affairs remain in the same shape as on last Saturday. Those most deeply interested have strong hopes that the mill will be able to take care of itself. # DROWNED OFF CHARLESTON. The News and Courier of Monday tells a story of a sad tragedy off Charleston last Sunday morning, in which two men lost their lives. One of the victims was Mr. Walter L. Daggett, of Charleston, and the other was Mr. J. Lindsay Hope, formerly of Yorkville. The occasion was an excursion of the Fourth Brigade band to Kiawah island. There is no wharf at the island, and the landing had to be made by means of row boats. Two boat loads had been safety landed on the shore from the steamer; but the third boat was too heavily loaded. It commenced the trip with 14 men. Only 12 got safely to land. Shortly after it left the steamer, the boat began to ship water, and the occupants had to swim for it. It was a good long distance and the water was rough. Daggett and Hope went down. Mr. Walter L. Daggett was a printer and was among the best known of Charleston's young business men. He was about 34 years of age, and leaves

6. August 15, 1900 Yorkville Enquirer York, SC
Article from Yorkville Enquirer, August 15, 1900

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BRIGHTER AND BRIGHTER. The value of Loan and Savings bank stock is 100 per cent. greater than it was at this time last week, and many points higher even than when the sun went down Monday night. This is a fact because of the businesslike proposition that was made yesterday morning, and in part because of the good judgment of the stockholders in accepting that proposition. Mr. McClain owed the bank $22,000-$10,000 secured and $12,000 unsecured. Under the threatened bankruptcy proceedings, it did not appear that this debt was worth more than one-third its face. Mr. Lyles offered the bank people $18,000 of first mortgage bonds of the Sutro Mill company and the personal bond of Mr. T. B. McClain to the amount of $4,000 for the debt. He explained that the first interest payment in January next would fix the value of the bonds at 100 cents on the dollar, and that he would pledge his personal assistance in disposing of the securities at that price. He went on to show how each subsequent payment on the first mortgage gave additional value to the second mortgage, and he was so frank, clear and explicit.in all that he had to say, that every stockholder was fully convinced of the entire practicability of his admirable plans. All the stockholders agreed to the proposition. Although considerably demoralized at first, the stockholders of the bank are beginning to show signs of having recovered their heads. They got a handsome proposition from Columbia a few days ago that practically guarantees to the depositors every cent of their money within a very short time now. This proposition contemplates the reorganization of the bank under the present charter, but with new officers. The only hitch is as to the matter of appraising the present value of the stock of the present organization as it now stands suspended. The Lyles proposition, however, helps things wonderfully, and there seems to be but little reason now why the whole complication cannot be worked out to the entire satisfaction of all concerned. Just one more little lift in the case of the bank, such as Mr. Lyles gave the Sutro mill, will set everything right again.

7. August 18, 1900 Yorkville Enquirer York, SC
Article from Yorkville Enquirer, August 18, 1900

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Judge A. C. Haskell, of Columbia, is in Yorkville conferring with the stockholders of the Loan and Savings bank. He has submitted a proposition by which the depositors may get their money at once, if the stockholders accept. If the proposiiton is not accepted, then a receivership is practically certain.

8. August 25, 1900 Yorkville Enquirer York, SC
Article from Yorkville Enquirer, August 25, 1900

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# WITHIN THE TOWN. The King's Mountain Military academy begins work on September 5. A light shower cooled the atmosphere somewhat last Wednesday night. By resolution of the town council, Mr. Rawls will commence next Monday the work of putting meters on all public water consumers. The State Federation of Colored Women, in session at Detroit, Michigan, have adopted a memorial to Presiden McKinley in which they say that they would be glad to see a constitutional amendment providing that states may be expelled from the Union for permitting mob law within their borders. That is a pretty good joke. Ohio and New York have earned expulsion during the past week, and shortly after the passage of such a law, it is quite likely that a number of other states would be following suit. A Negro woman named Mary Lyttle was detected in the shop lifting act in the store of J. M. Heath & Co., last Wednesday, and after a race, was arrested. She had stolen quite a number of articles, all of which were recovered. The woman was sentenced to pay a fine of $10 or go to the chain-gang for 15 days. The fine was paid. Since the disposition of the case, it has developed that Mary has long been accustomed to having lots of finery, and there is no reason to doubt that she is a veteran offender. She lives in Bethel township. The stockholders of the Loan and Savings bank offered to sell their holdings to the Loan and Exchange Bank of South Carolina at 86 cents on the dollar. The Loan and Exchange bank came back with the offer to give 72 cents for the stock, minus all expenses that have been incurred since the commencement of the present difficulty, and to assume all liablity to depositors, paying them in full at once. At a meeting of the Loan and Savings bank stockholders yesterday morning, the 72 cents proposition was declined. The next step probable cannot be stated certainly; but it now looks like receivership proceedings. Dr. A. Y. Cartwright and Mr. W. Adickes, of the board of trustees of the Yorkville Graded school, appeared before the town council last Thursday night and reported that the board had received complaints from people who claim that they live within the corporate limits of the town, but are denied the privileges of the graded school because of doubt as to the exact location of boundary lines. The object of the appearance of the graded school committee was to ask the council to order a survey by which all such questions could be determined without further dispute. After consideration, the council decided to have a survey made at once and delegated to the street committee, consisting of Adermen McNeel and Propst, authority to attend to the matter.

9. August 29, 1900 Yorkville Enquirer York, SC
Article from Yorkville Enquirer, August 29, 1900

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renewed confidence in the situation. The meeting had no definite purpose in view. There was a feeling that inasmuch as the appraisement committee had said the stock was worth 86 cents, then 86 cents it should be whether the bank resumed business or its affairs wound up by a receiver. At least so a majority seemed to feel, and when this majority voted to decline the Columbia offer, it felt dead certain that it was doing exactly the right thing. The business men in the minority, however, at that moment felt that the value of their stock had suddenly depreciated to uncertain figures, and some made bona fide offers to sell at 50 cents. The non-stockholding depositors were thoroughly discouraged. After Friday it looked as if the receivership was now a certainty, and so it would have been had not certain outsiders taken- a hand. Messrs. W. W. Lewis, G. H. O'Leary and S. M. McNeel began to work together, and they arranged a plan whereby they would put in new capital, re-organize under the old charter and re-open the bank. None of the gentlemen had previously been. connected with the Loan and Savings bank except as depositors. They made proposals to the stockholdwhereby they agreed to consider the stock of the bank as worth the appraised value, and providing that stockholders could either subscribe the difference between that and par or sell and step out. This proposition was, after all, the most favorable that had been suggested, and it was accepted. At a meeting of stockholders last Monday night, the new arrangement was formally agreed to, and directors were elected as follows: D. M. McNeel, G. H. O'Leary, W. W. Lewis, W. B. Wylie, C. E. Spencer. Immediately after the adjournment of the meeting of the stockholders, the directors held a meeting and elected Mr. McNeel president, Mr. O'Leary vice president, and Mr. W. P. Harrison cashier. It was resolved that the bank be reopened at the earliest possible moment, and Mr. McNeel left yesterday morning for the purpose of getting the money with which to pay all depositors in full as rapidly as they can draw their checks. It is the outside impression that there will be but little disposition on the part of depositors to withdraw their deposits except where they stand immediately in need of the money; but the directorate will not presume on anything of the kind. The money will be at hand and depositors may take it or leave it alone as they like.

10. September 5, 1900 Yorkville Enquirer York, SC
Article from Yorkville Enquirer, September 5, 1900

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THE BANK IS OPEN. The Loan and Savings bank is open again. It opened its doors in accordance with the announcement published last Saturday, and during all of yesterday, at least up to the time THE ENQUIRER went to press, did a land office business. The opening was in accordance with the old routine, the same as if nothing unusual had happened. When 9 o'clock came President McNeel was seated at his desk, Cashier Harrison and Teller Dobson were at their windows, and Mr. Dunlap was working at his books. All were ready for business. The first customer was a well-known local business man. He came in about 10 minutes after 9 and made a large deposit. Within a few minutes he was followed by another on the same errand, and pretty soon there were as many as half a dozen men standing in the lobby waiting their turn at the cashier and all with cash to deposit. All the officers were kept busy all the morning. Cashier Harrison was especially busy, working with characteristic deliberation and precision. Whether it was a check or a deposit ticket, he disposed of one customer after another, each in his turn, and probably did as much business as during any one morning for quite a long while. But his work was mostly in the line of receiving deposits. The old customers of the bank were actually eager to get rid of the accumulations of the past month, and the deposits of the morning have amounted to something like $5,000. There was some little demand for money on the part of customers, and a few small checks were written and cashed in the ordinary run of business; but during the whole day not a single deposit was withdrawn. There was every indication that the business public is thoroughly satisfied with the sit-

11. September 8, 1900 The Lancaster Ledger Lancaster, SC
Article from The Lancaster Ledger, September 8, 1900

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At The Same Old Stand Yorkville's Bank Opened Again and Cotton Mills Running Freely. Special to The State. Yorkville, Sept 4-The Loan and Saving bank opened its doors for business this morning. A new set of directors was recently elected and Mr. S M McNeel was elected president. The utmost confidence seems to provail among the citizens as to the solidity of the bank and its management, and not a single case of withdrawal of deposits was reported on the other hand the account of deposits received was quite large. The former employes of the bank, Cashier W P Harrison, Teller Frank Dobson and Bookkeeper T C Dunlap were at their usual places and transacted business with their accustomed courtesy. President McNeel is a financier and business man of no ordinary capabilities and it is the universal opinion that the Loan and Savings bank will be conducted on a sare paying basis The Sutro Cotton mill has been running for some weeks, to ite original capacity. It has been re-organized as the Sutro Cotton Mill company, with T B McClain as president and general manager, Walton S Neil as secretary and treasurer, with Mr. W H Lyles of Columbia and J S Brice as directors. The electric light plant in connection with the mill which furnishes light for the town is in first rate running order. Everything now seems to be in "ship shape" order, so far as the bank and cotton mill are concerned. The second primary next Tuesday promises to be rather lively here, especially the race for clerk of court. Col Hoyt seems to be making new friends overy day, in this county. There is some disappointment about here that Hon CL Winkler did not get into the second primary, but a man of his high attainments and integrity cannot be kept down.

12. September 8, 1900 Americus Times-Recorder Americus, GA
Article from Americus Times-Recorder, September 8, 1900

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Yorkville Bank Resumes Business. YORKVILLE, S. C., Sept. 7.-The Loan and Savings bank, that closed its doors two months ago because of a run upon it, has resumed business with all the old employes at their posts. The Sutro cotton mill that was in trouble at the same time, has been reorganized with new directors, but the same officers, and is running full time.

13. September 14, 1900 The Union Times Union, SC
Article from The Union Times, September 14, 1900

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Yorkville Bank Resumes Business. YORKVILLE, S. C., Sept. 7.-The Loan and Savings bank, that closed its doors two months ago because of a run upon it, has resumed business with all the old employes at their posts. The Sutro cotton mill that was in trouble at the same time, has been reorganized with new directors, but the same officers, and is running full time.