Farmers & Merchants Bank (Henderson, NC)

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Run Causes Bank To Close; Depositors To Lose Nothing

Henderson, N. C., April 17.—(A. P.)—The Farmers and Merchants Bank of this city failed to open its doors yesterday. A notice posted on the door, which was signed by Clarence Latham, state bank examiner, stated that the institution was in the hands of the corporation commission.

Withdrawal of deposits, faster than the bank could realize on its loans was said by Mr. Latham to be the cause of the bank's closing. It was stated that the 1,500 depositors would probably be paid in full in due time. The bank's capital stock was given as $125,000, with a surplus of $50,000 and deposits amounting to $295,000.

JACKDAW MANIA

New York.—Miss Florence Morley, arrested for shoplifting, was likened to a jackdaw in court because she had a mania for taking vari-colored articles and piling them in heaps in her home.

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WITNESS STAND IN OWN BEHALF

Former Cashier Says He Helped Bank's Receiver Straighten Out Affairs.

AUDITOR

(Special Daily News) Henderson, June the stand in his own defense. after the state had rested shortly. after o'clock this afternoon, R. Crowdformer the defunct Farmers Merchants bank of Henderson, testified Vance county Superior court, where he trial charged embezzling more than $50,000 the banks funds, that he in the employe of the Bank Vance, the for months April during the the affairs of He further that there the slightest him question after the bank for alleged the state authority the bank's bank April the from the notes In the bank verified. The court sustained objection state testimony the witness relating December which sugges. that attorney which attended without reference made his bond. He testified various the replacing deposit form trust for loans for around resume the stand the night session of the court of W bank auditor, was morning session Alleged between and records the related which the defense the handthe the were made Hays, teller the They from the that had found evidence tempt transactions his criticism payment checks private purpose. He stated one 000 showed credit (Continued on Page Sis)

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Henderson Daily Dispatch Farmers & Merchants Bank AGAIN WILL Depositors Get Payment ECANDIDATE Five Percent Dividend To Be Distributed by Receiver on Friday of This Week; Makes Total of 90 Percent Can Do More for Paid; Rest Is Expected Year Hence Today Than Before Announcement was made today by asked to notice that the delivery of these checks will be for one day only, BECKHAM K. L. Burton, the receiver, that a diand all depositors are asked to bring vidend payment of five percent will their pass books as a means of identiMan for His Pledge of fication. be made on Friday of this week, DeHe Will Support cember 22, to depositors of the old The distribution Friday will amount the Limit in to Farmers and Merchants Bank. of to something over $12,000. When the Congress Henderson which closed its doors in bank closed its rdeposits amounted to April, 1924. This distribution makes a around $250,000. The 85 percent paytotal payment to depositors of 90 perE. W. Pou will again ments already made were distributed to succeed himself in cent, and Mr. Burton said there would to depositors within two or three years primaries of the be one more dividend payment before after the bank closed, and Included a June next next. That the receivreship is discharged, and he 100 percent assessment against the stockholders. contained in a letter hopes that one can be ten percent, which would mean 100 percent payC. B. Beckham. long The handling of the receivership by ment to the depositors. It will provorker in this county. Mr. Burton is considered one of the had written Mr. Pou bably be made late in 1934, he said. finest jobs in bank liquidation the port following tne anThe dividend payment Friday will State has seen. Very few closed banks week of the candibe made by checks, which, as a mathave ever paid depositors in full in ter of convenience to the depositors, E. Bailey, of Raleigh. this State, and this one will be in will be distributed at the Citzens Beckham, in part. as that class, if the final ten percent Bank and Trust Company, at the can be paid a yar hence, as is now an 1 will say that my Wyche street entrance. Depositors are ticipated.

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Announcement was made today by K. L. Burton, the receiver, that a dividend payment of five percent will be made on Friday of this week, December 22, to depositors of the old Farmers and Merchants Bank. of Henderson which closed its doors in April, 1924. This distribution makes a total payment to depositors of 90 percent. and Mr. Burton said there would be one more dividend payment before the receivreship is discharged, and he hopes that one can be ten percent, which would mean 100 percent payment to the depositors. It will probably be made late in 1934, he said. The dividend payment Friday will be made by checks, which, as a matter of convenience to the depositors, will be distributed at the Citzens Bank and Trust Company, at the Wyche street entrance. Depositors are

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F.&M.Bank Liquidation To End Soon Commissioner Hood in Raleigh Gives Assurance to Henderson Group Raleigh, April 25-(AP)- Liquidation of a bank closed for a dozen years may be completed within the next three months by the State Banking Department, Bank Commissioner Gurney P. Hood assured a delegation of depositors or the defunct Farmers & Merchants Bank of Henderson today. Mr. Hood said the bank, which closed its doors April 16, 1924, had dragged along in receivership until last month, when the State Department took it over under the Williams law, which required receivers to turn over all closed banks of which the liquidation was not completed by January 1, 1936, to the State department. Members of the delegation said they came to Raleigh "hoping something would be done about it now." The commissioner assured them everything possible was being done to expedite the liquidation and said he hoped it could be completed within the next three months.

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ANOTHER DIVIDEND LIKELY FOR BANK State Liquidator Expects To Pay Old F. & M. Depositors More Another small dividend will probobly be paid to depositors of the old Farmers & Merchants Bank of Henderson, which closed in April, 1924 and which is still in liquidation, it was learned today from the State Banking Department. The department advised that it expected to wind up the liquidation in the next 60 to 90 days. It has already paid 90 percent to depositors of record on the closing date. A few assets of the bank and some property held by it remain to be disposed of at a court sale, and this is expected to be arranged at an early date. For more than 12 years the bank has been in the process of liquidation. K. L. Burton, who was named receiver shortly after the bank failed, made quick work in paying dividends within a comparatively short time after the closing. An act of the 1935 General Assembly provided that completion of liquidation proceedings in all State banks in the State not already at that time in the hands of the banking department should the placed in its hands for the winding up of the affairs. B. H. Perry is attorney in Henderson for the State Banking Department in handling the final disposition of the old Farmers & Merchants Bank's affairs.

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REMAINING ASSETS OF BANK ON BLOCK State Bank Department To Sell Notes and Property of Old F. & M. Remaining assets of the old Farmers & Merchants Bank of Henderson will be sold at auction by the State Banking Department within the next few weeks, and formal notice of the sale will be given through the Daily Dispatch tomorrow. The face value of the assets runs far up into the thousands of dollars. They consist of notes, judgments and a few real estate sites. The bank closed in April, 1924, and has been in the process of liquidation ever since that time, more than 12 years. Under an act of the legislature of several years ago, the State Banking Department, under the direction of Gurney P. Hood, State bank commissioner, was instructed to take over the completion of the liquidation work for all State banks that closed before it came into being. The old F. & M. bank here was one. The liquidation period of 12 years since its close is one of the longest of any closed bank in the State that has not been finally worked out. Bank officials hope that the sale, together with other funds that might become available, will produce sufficient funds to make one more final payment on the liabilities to depositors of the old bank at the time it closed. Payments so far have amounted to 90 percent, which is considered a good record. Most of the payments were made within a comparatively short time after the close. Stockholders were assessed shortly after the bank failed, this supplying funds for the largest single payment to depositors.

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OLD BANK ASSETS BID BY M'DUFFEE Notes and Some Office Fixtures Bring $1,025 at Court House Sale Assets of the old Farmers & Merchants Bank, which closed April 15, 1924, were sold at public auction at the court house door here today by G. Harold Myrick, liquidating agent of the State Banking Department, and were bid in by D. P. McDuffee, attorney, for $1,025. The assets consisted mostly of old notes, but there was a trifling of office fixtures and two adding machines McDuffee started the bidding for the assets in a lump sum at $672, and they were run up to $1,025, at which figure the bidding ceased and the sale was made. Each item was sold separately, but in the aggregate amounted to much less than when sold in a lump, and the sale was ordered complete in the grouping. The bank was closed more than 12 years ago. In all, it paid depositors 90 percent under the receivership of K. L. Burton before he turned the matter over to the State Banking Department. While there may not be sufficient assets in cash to pay the remaining ten percent to the depositors, it considered certain that an additional distribution will be made before the receivership is finally completed and the procedure fully closed out.

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FINAL DIVIDEND ON F

& M. BANK PAID State Banking Department Sends Checks to Depositors Here IS LONG LIQUIDATION Bank Closed April 15, 1924, Nearly 13 Years Ago; Total Payment to Depositors Is Now 94 1-4 Percent Depositors in the old Farmers & Merchants Bank of Henderson, which closed its doors doors April 15, 1924, received in their mail today checks for their seventh and final dividend in the liquidation of the bank's assets. Today's checks represented a payment of 4 1-4 percent of deposits at the time the bank closed, and made a total of 94 1-4 percent paid in all, the 90 percent having been distributed some years ago. The checks received by depositors today were sent by the State Bank Department, which has been closing out the receivership for the past year or so. At the time the bank closed it had deposits of approximately $300,000 and a capital of $125,000. Its first receivership was administered by the then newly-formed Bank of Vance, which functioned for several years for the purpose of liiquidating the assets. That bank was voluntarily liquidated when it had served its purpose. Checks received today by depositors were payable on the Citizens Bank & Trust Company of Henderson and were dated November 2, 1936. After the close of the Farmers & Merchants Bank, April 15, 1924, a one hundred percent assessment was levied against stockholders, and nearly all of this was paid. A few shares were held by people who could not be found and a few by insolvent persons. Some contested the levy in the courts on the ground that it was made before other assets had been exhausted. They carried the issue to the State Supreme Court and lost, and most of them then paid the sums assessed. The liquidation, so far as depositors and stockholders are concerned, now is a thing of the past, and will be written up by the State Bank Department as closed as soon as checks are cleared and other formalities attended to. Lacking three months, the final closing of the liquidation comes thirteen years after the old bank ceased to do ibusiness.