Chatham Savings Bank - Chatham, VA

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: October 1, 1932*
Location: Chatham, Virginia (36.826, -79.398)

Metadata

Model: gpt-5-mini
Short Digest: f55590e4

Response Measures

None

Description

Articles indicate Chatham Savings Bank closed and receivers were appointed. No article describes a depositor run. Receivers were active by April 2, 1933 (check delivered to county), and later litigation in Nov 1933 refers to the bank having closed in October (likely Oct 1932 or Oct 1933). To be conservative, I record the closure as October prior to receivership; the exact year of the October closure is not explicitly stated in the snippets, but receivership activity is documented on 1933-04-02. Cause classified as bank-specific adverse information (insolvency/closure leading to receivership) based on receivers being appointed and litigation over assets.

Events (2)

1. October 1, 1932* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank closed (suspended operations) in October; later receivers were appointed and receivers pursued assets and settlements in court.
Newspaper Excerpt: Chatham Savings Bank closed in October
Source: newspapers

2. April 2, 1933 Receivership

Newspaper Excerpt: a check for $50,000 was handed to Joseph Whitehead Jr. ... by William H. Carter and N. E. Clement, receivers for the Chatham Savings Bank, and was immediately passed on to County Treasurer E. Terry ... The county had already received $60,000 from the defunct bank on this account, and was due a balance of $62,000. (Richmond Times-Dispatch, 1933-04-03, describing April 2 action).
Source: newspapers

Newspaper Articles (4)

1. April 3, 1933 Richmond Times-Dispatch Richmond, VA

Article from Richmond Times-Dispatch, April 3, 1933

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Article Text

$50,000 Public Fund Is Paid In Pittsylvania Chatham Savings Bank Receivers Hand Check to Commonwealth Attorney [Special to The Times-Dispatch.] CHATHAM, April 2-A check for $50,000 was handed to Joseph Whitehead Jr., Commonwealth's attorney of Pittsylvania County, by William H. Carter and N. E. Clement, receivers for the Chatham Savings Bank, and was immediately passed on to County Treasurer E. Terry, who marked it for early deposit to the county's credit. The check represented settlement of the county's sinking fund account with the receivers of the bank and will be deposited as soon as an order entered by the Circuit Court of the county approving the transaction. The county had already received $60,000 from the defunct bank on this account, and was due a balance of $62,000.

2. November 24, 1933 Danville Register and Bee Danville, VA

Article from Danville Register and Bee, November 24, 1933

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Article Text

Judge Leigh Holds Bank Head Must Secure Directors' Before Pledging Its Assets First National Is Not A Preferred Creditor Of Chatham Savings Bank; Rules Receivers Can Recover Collateral Pledged By Reid. Judge Henry Leigh of Corporation decree holdReid, former president of the Chatham Savings Bank not negotiate loan 20,000 from the First NaBan's Danville for the benefit of the because the loan was by the of directhe bank, and the First Bank alike with creditors the closed decree judgment Clement and W. Carter, ceivers the Chatham Savings pledged for entitles them to that has been collected by the First First National Bank from pledged, aggregating John Carter and Rutledge Clement represented the receivers the bank in the chancery suit and Harris, and Brown represented First National Bank. Judgment was suspended the court for sixty days pending appeal to the Virginia Supreme Court of Appeals noted the defendant. suspending the was given the defendant. Chatham Savings Bank closed in October, Counsel the receivers of the Chatham Savings Bank based their case contention that neither legal sound public policy permit the assets bank, pledged without the consent the board was sustained the making the pledging the collateral. In Judge Leigh point. that the the $20,000 loan made by the presiclosed had "enured the advantage of depositors creditors of the bank" and that the First Bank engeneral After the First National Bank credit for paid creditors the Savings Bank, the dethere balance due the from the First of ber 17, Counsel the First National that ferred "novel impresVirginia and the the Virginia Supreme Court of peals will be wide interest. The follows: appearing the Court that Edwin B. Reid, of the ChatBank, not empowered to the loan $20,000 from the nor to pledge the belonging said Chatham Savings Bank to secure the said loan in compliance with the and requirements Section 50 the Virginia Banking Act, and the the opinion pledge were therefore illegal, doth decide and adjudge. And further appearing to the Court that the Chatham Savings Bank received the proceeds of said loan derived benefits therefrom which enured to advantage the said bank, Court being the opinion that defendant should share general creditor of the Chatham Savings Bank in sum for money had and ceived said Chatham Savings Bank, doth adjudge and declare. And further appearing to the Court that defendant collected various notes illegally pledged to it, aggregating the interest collectfrom the makers, the sum of $13,767.20, and that defendant paid on June 23rd. 1931, of $177.35 in cash; and that all the other pledged have been by complainants, the Court of the opinion and doth adjudge that are entitled and have the defendant the total the together with Interest the various from the dates their subject credit $177.35 paid And appearing to the Court that the to the Bank for money on deposit with of the the sum of which sum off against claim aforesaid against Complainants, leaving probable claim in favor of defendant gen- (Please

3. November 24, 1933 The Bee Danville, VA

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Article Text

PRIOR CLAIM Decree in Court Renders With ChatLitigation ham Bank Receivers The First National Bank cannot be creditor the viewed preferred Chatham Savings Bank, Judge Leigh held yesterday the corporation court handing down portant decree the case pending several weeks decision rendered in the The the bank against the the Chatham Savings receivers relative loan of $20,000 Bank made the Chatham bank from the Danville institution. Ahe court held that Edwin the Chatham bank had president right to negotiate the loan legal because was not approved by the directors the Chatham bank and of the Danville institution must that share alike other creditors and cannot given preferred status. Judge Leigh decree It the Court that appearing Reid, President of the Chatham Savings Bank, not empowered to of $20,000 negotiate nor to pledge from the collateral belonging said Chatthe ham Savings Bank secure ment of said loan compliance the and requirements Section 50 the Virginia Banking Act, Court being the (Please turn Page Col. 2.) the truck third negro who received parliamentary officials after the crash. The Hardran away in anxious effort to hurry ings taken the hospital and tion new government, treated for minor injuries but the year. the police could reach them to Leaders stunned the crushterview them they had left. the cabinet by ng was that the truck center majority surned developed some defect Sarraut his which made it impossible to control few program given him its support on The impact snapped off the fire the tobacco scant four after he formed which swept forward through the Edouard and

4. September 30, 1934 Bristol Herald Courier Bristol, TN

Article from Bristol Herald Courier, September 30, 1934

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Article Text

HEAVY DOCKET FOR VIRGINIA'S COURT Special Interest Centers in Test of Milk Control Law's Validity RICHMOND. Va., Sept. 29. (AP)-A docket of eleven commonwealths cases, 75 cases on the argument docket and one corporation commission case, in addition to others which may be placed on the docket as carry-overs from the Staunton term concluded this week will face the state supreme court of appeals at its session opening here on November 7. Special interest will attach to the decision which may be given in the case involving a test of the constitutionality of the state milk control act, which was argued on the final day of the Staunton term. Among the commonwealth's cases docketed for consideration here are two murder cases, one appealed from the corporation court of Lynchburg and the other from Petersburg hustings court The Lynchburg case is that of Melvin W. Adams, young white man appealing from, conviction and eight year prison term imposed for the murder of Archie The Petersburg appellant is T. J. Hamilton, convicted of the murder of Leonard Morgan. Morgan's wife also was charged with his death after an autopsy revealed arsenic in his remains and it was discovered that the widow had collected insurance held on him and used part of the money to pay to T. J. Hamilton, from whom she had bought an automobile. Among the civil cases two from Danville hold especial interest. One is the city's appeal from a verdict allowing the Forest Hills Development Corporation $49,810.55 and accrued interest on a claim for $102,178.47 for improvements made to property which the city later acquired in annexation proceedings. The other case is the appeal of the First National Bank of Danville, which lost in a suit brought by Clement and Carter, receivers for the Chatham Savings Bank. The receivers were sustained in their contention that the Danville bank should return to them proceeds obtained from the sale of collateral given to secure a $20,000 note which, the receivers claimed, was illegally made since the directors of the now defunct bank did not authorize its president to negotiate the loan.