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IRREGULARITY CLOSES BANK AT CHARLESTON PRESIDENT YOUNG IN EFFORT TO SAVE D. & N. Former Officials Alleged to Have Made Bad LoansHad Million Deposits CHARLESTON, July 20.--The Day and Night bank of this city has been ordered closed by State Banking Commissioner James S. Hill, according to an official statement issued today. and the financial stitution will not open for business tomorro w morning. The bank: sioner charges that the for of the bank, President Gared are ashier J. F. Hudson. loaned money on had securities. and that other gross irregularities were committed U. G. Young who recently succeeded Gared as president of the bank, today Issued a notico that immediately after the bank's condition had been brought to his attention he had given bond of $200,000 to protect the depositors, for what he thought was the total amount loaned. However, it was divulged that other transactions had been completed and Young was unable to further aid in putting the bank on a sound footing. The Day and Night bank was established in 1914. Its deposits are thought to be approximtely $1,000,000. but no figures were obtainable tonight. A receiver will ba named later to carry cn the work of liquidation Governor John J. Cornwell and officials of all banks in Charleston concurred in Commissioner Hill's action. It is said Commissioner Hill's report to the governor will contain some interesting data, but the report has not been made public. This is the first time in the history a of Charleston financial circles that banking institution has ever become involved. and men financially prominent here today expressed themselves optimistically as to the chances depositors would stand in getting their money refunded. Hill's Statement. The following statement is given to the public by State Banking Commissioner J. S. Hill, and the banks of the city of Charleston, relative to the closing of the bank: "On the thirteenth day of May, 1919. Mr. Hill, the banking commissioner, and his assistant, Mr. George M. Weekly, made an examination of the affairs of the Day and Night bank. "That examination disclosed irregularities to such an extent that the banking commissioner demanded and obtained from J. F. Hudson. George F. Skidmore, S. A. Speck and Houston G. Young a bond in the sum of $200,000 for the benefit of the depositors, with the understanding and assurance from the directors that the affairs of the Day and Night bank would be put in a proper condition to meet the requirements of the banking laws and the approval of the banking commissioner. "A meeting was called later of the Charleston banks and the matter laid before them with the view of ascertaining whether or not any action could be taken that would take care of the situation and permit the bank to continue to do business. "The Charleston banks, after several conferences and after having gone very carefully over the assets, and liabilities. of the Day and Night bank with the banking commissioner, reached the conclusion that by reason of the gross irregularities committed by the past management of the bank it was necessary for the protection of the depositors and the public that the bank be closed immediately and liquidated. "After this conclusion had been reached by the Charleston banks. Mr. Hill. the banking commissioner. laid the matter before Governor John J. Cornwell, who, after going carefully over the report and the bank's condition concurred in the decision of the commissioner that the bank be closed and a receiver appointed."
