Bank of Blacksburg (Blacksburg, SC)

Episode Information

Episode Type
Suspension โ†’ Closure
Start Date
April 18, 1927
Location
Blacksburg, South Carolina (35.121, -81.516)
Bank Type
state
Routing Number
67-0234

Metadata

Notes

Audit revealed a large shortage in receiver's accounts and criminal charges followed against the receiver.

Events (4)

1. April 18, 1927 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank failed and closed on April 18, 1927, indicating insolvency or serious financial trouble.
Newspaper Excerpt
closed April 18, 1927
Source
newspapers
2. April 18, 1927 Receivership
Newspaper Excerpt
Lieut. Gov. Butler was appointed receiver for the bank when it failed last year.
Source
newspapers
3. June 26, 1930 Other
Newspaper Excerpt
sealing of the report ... exceeding thirty days from the date of said report ... audit of the affairs of Thos. B. Butler, receiver of the Bank of Blacksburg, was filed under seal yesterday morning
Source
newspapers
4. September 5, 1930 Other
Newspaper Excerpt
audit made public today ... disclosed shortage of $29,000 in the accounts of Butler as receiver of the defunct bank of Blacksburg
Source
newspapers

Newspaper Articles (13)

Article from The Gaffney Ledger, June 28, 1930

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REPORT ON BLACKSBURG BANK AUDIT SEAL FOR THIRTY TO PERMIT CHECKING FOR MISTAKES Judge Mauldin Issue Order Receiver for Examining. LIEUTENANT GOVERNOR IS THE RECEIVER No Hint Leaks Out as to Na- ture of Contents of Thick Report Auditors Turn Over. of the audit of the report affairs of Thos. B. Butler, ceiver of the Bank of Blacksburg, was filed under seal yesterday morning o'clock in the Clerk Court Caldwell the court house. The sealing the report rected an order signed Circuit Judge Mauldin under date of June 26, and which was served Erwin, of Charlotte, the auditor who compiled the and Spartanburg attorney who repreHall, Vassy and Dobson Dobson, Gaffney attorneys who represent certain other depositors consented to the and creditors, order. of the report, which more thick, was livered Lieutenant Governor Butler the clerk's office shortly after original was Public in 30 Days. the terms of the order the sealing of the report, Governor Butler Lieutenant granted reasonable time, exceeding thirty days from the date of said report within which the clerk court, to investigate and examine ascertain whether the report, to correct, and for same is true and the of proposing correcpurpose tions be found therein. errors Unless otherwise directed. the "the clerk shall order the original report part records this cause the public of thirty days the expiration from the delivery the same the him, shall remain under report Refused Service. Southard refused accept Mr. order, the docuservice of the officially served ment Spartanburg by The order was county constable. Auditor Erwin yesterserved minute two day morning office after he entered Sheriff Watkins. Mr. Southard Erwin by Bruaccompanied another auditor who baker, preparing report. sisted Goodson, Blacksburg and by the depositors mortician. one starting the action responsible for Judge Mauldin which the audit March. Southard. thought Mr. have read the auditor's report brought Mr. Erwin both house, and discuss the contents the document. Mr. Erwin he had spent the affairs 53 days Bank Blacksburg and compiling report. Started March. The Bank Blacksburg closed of 1926. The late the spring Ross was first appointed receiver, but resigned after short time and Lieutenant Governor Butler appointed succeed him. cent dividend last September. That the first and only date. When the March term of court opened here Mr. Southard. representing certain depositors, plied for order directing to the affairs and dite payment further Erwin for the work few days later. began the examination the latter March and spent better part two months here. To Determine Errors. The order signed by Judge Mauldin Thursday Greenville states issued for the purallowing the receiver check the report ascer whether contains errors subject to correction alterations before becoming Issued in the Albert Fant. state bank Goode, rectors the Bank Blacksburg, the order follows: March 1930, order this cause His Honor, Judge Mauldin, siding judge, directing that audit the books and accounts Thos. receiver the Bank of Blacksburg, made, designating Erwin has been made appear the court that the auditor work practically complete, and ready report,


Article from The State, July 27, 1930

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SECRECY PERIOD EXTENDED BY AUDIT Special to The for Erwin signed Judge court The order was Lieut of defunct The original the Erwin Charloste certified public was June with the audit affairs Governor This the ing report for days for the the which to propose The resignahereby my the Bank Blacksburg. effective the and qualifiesmy successor Attorneys representing various creditors and depositors the bank yet agreed upon perina but have decided the the ment of temporary receiver


Article from St. Louis Post-Dispatch, September 5, 1930

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SOUTH CAROLINA OFFICIAL SHORT AS BANK RECEIVER Audit Shows Deficit of in Accounts of LieutenantGovernor. Sept. audit made public today by the Clerk of Court here disclosed shortage of $29.000 in the accounts of Butler as receiver of the defunct bank of Blacksburg. Butler was appointed for the bank when failed last year. Its creditors last March demanded an audit and ordered by Circuit Judge Mauldin. Butler signed receiver last month and now under a physician's care.


Article from New Britain Herald, September 5, 1930

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Audit Shows Shortage In Accounts of Butler Gaffney, S. C., Sept. 5 (AP)-An audit made public today by the clerk of court here revealed a shortage of $29,690 in the accounts of Lieutenant Governor T. B. Butler as receiver of the defunct bank of Blackburg. Lieut. Gov. Butler was appointed receiver for the bank when it failed last year. Its creditors last March demanded an audit and it was ordered by Circuit Judge T. J. Mauldin. The sealed audit was returned to the court and opened today. Lieut. Gov. Butler resigned as re-


Article from The Brattleboro Reformer, September 5, 1930

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BANK RECEIVER Lieutenant Governor of South Carolina in Trouble CREDITORS DEMAND AUDIT OF ACCOUNTS Examination in Progress Since Last Resigned Receivership Month Ago and Now Under Physician's Care. GAFFNEY, Sept. audit made by the clerk of here revealed of $29,690 in the accounts of Lieut. Gov Butler receiver of the defunct Bank Blacksburg. Lieutenant Governor Butler pointed for bank when failed 1927. Its creditors last March demanded audit and ordered by Circuit Judge Mauldin. sealed audit was returned to the court and today Lieutenant Governor Butler resigned receiver month is now in Union, under physician's care. The report the audit will presented to the next term Cherokee general court which convenes The Bank of Blacksburg was capitalized $50,000. closed April 18, 1927, order of Fant, state an attorney of Gaffney, elected 1926 He counhis of coming candidate for because his present illness enter the state Democratic primary month.


Article from The Times-News, September 6, 1930

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BANK RECEIVER UNDER ARREST UNION S. C., Sept 6 (UP). Lieutenant Governor T. B. Butler of South Carolina, technically under arrest for a $29,680.82 shortage discovered in his accounts as receiver for the Bank of Blacksburg, remained in his sick bed at the home of his daughter here today. Warrants charging him with embezzlement were served last night, but bond of $5,000 was arranged. LINDBERGH WAS THE 67th MAN TO MAKE A NON-STOP FLIGHT ACROSS THE ATLAN. OCEAN! Ripley proved it in "Believe It or Not," the world's most popular appears exclusively in this newspaper.


Article from Evening Star, November 17, 1930

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INDICTMENT HELD UP Judge to Study Case Involving Carolina Lieutenant Governor. GAFFNEY, S. C., November 17 (AP).Bills of indictment charging Lieut. Gov. T. B. Butler with breach of trust as receiver of the Bank of Blacksburg today were withheld from the grand


Article from Standard-Speaker, November 17, 1930

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CHARGES AGAINST BANK RECEIVER GAFFNEY, S. C., Nov. 16. (/P)A bill of indictment charging Lieutenant Governor T. B. Butler, of South Carolina, with shortage of approximately $29,000 in his accounts as receiver of the Bank of Blacksburg, is scheduled to be handed the Cherokee county grand jury when court of general sessions convenes here Monday. When the warrant was served, Mr. Butler posted $5,000 bond. Should a true bill be returned against the lieutenant governor, the state constitution provides for his suspension from office.


Article from The Gaffney Ledger, November 20, 1930

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DECISION IN BUTLER CASE Judge Shipp Convinced Present Grand Jury Disqualified to Act. Formal decision to withhold the warrant charging Lieutenant Governor Butler with breach of trust from the present Cherokee county grand jury announced circuit court here yesterday by Judge Shipp after hearing arguments by Southard, 01 Spartanburg, attorney representing the receivers depositors of the Bank of Blacksburg. and licitor Sam R. Watt. Judge Shipp said he convinced it would be waste time have the present grand jury pass an indictment because the jury commissionwho drew the panel depositors in the Bank Blacksburg


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BLACKSBURG MERCHANT GOING IN BANKRUPTCY G. Lee Goode, President of Closed Bank, Has Papers Prepared. G. Lee Goode, well-known Blacksburg merchant, was in Gaffyesterday making preparations for filing papers in bankruptcy. Dobson Dobson, attorwere handling the matter for him. Mr. Goode dent of the Bank Blacksburg, when closed several years ago. He has been operating large mercantile business at Blacksburg.


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CHEROKEE SUED IN BANK CASE Receivers of Bank of Blacksburg Seek to Collect $7,800 From County. S. C., June has filed against Cherokee for the recovery of per cent 1927. Bonebrake and L. Goodson. co-receivers of the Bank of Blacksburg. complaint in the office the late Thomas B. Butler, former lieutenant while he the Bank of from the funds for the purpose taking personal gations. complaint charges the late county treasurer the two for the other for Batler, as receiver, the the receiver did the county


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BANK RECEIVERS TO COUNTY Will Ask Commissioners to Return Money Alleged Paid Irregularly. B. Bonebrake Goodson, Blacksburg, the Bank of Blacksburg, scheduled to take up the matter securing refund certain funds alleged have been irregularly paid the county by the late Thomas Butler, former special meeting of the county stated yesterday by Greene, clerk the board. The regular monthly meetthe will held today. Some of the county appear bemay fore the board with their salaries which the supply bill passed by the islature for this year.


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BLACKSBURG BANK RECEIVERS SEEK RETURN OF MONEY ALLEGED HAVE PAID TO COUNTY IRREGULARLY Claim Certain Transactions Between Butler and Gossett with Bank Funds Improper. IS CONTINUED MEETING IN MAY Absence of Auditor. Due to Illness, Prevents Completion of Probe Yesterday. hearing conducted yesterday the Cherokee county commissioners petition filed by the receivers of the Bank of Blacksasking for adjustment claims totalling $9,655.33 was tinued until the next regular the commissioners in May because of the absence of Yesterday's session special meeting called to hear the claims which are pased leged irregularities in transactions between the late Butler, receiver the Bank of BlacksLurg, and the late Gossett, Cherokee county treasurer petition filed GoodBonebrake, present receivers, succeeded Governor Butler when latter resigned some time beThe petition based two transactions alleged to have been check irregular, $3,000 and the other check $4,800, both drawn payable Cherokee county July 1927, endorsed by Mr. Gossett treasurer. The checks sued Lieutenant Butreceiver's account. The presreceivers asking for the are of this money with interJuly 1927. The receivers were represented hearing by Southard, Wilson Wilson Rock Hill, and DobDobson, Gaffney, torneys. Hall, county torney, Cherokee Mrs. M. Mullinax served taking down the testimony The hearing continued due the absence Erwin, of Charlotte, auditor for the firm Walter Charnley which made examination records of Lieutenant GoverButler receiver and which revealed reported shortage something over $29,000. Mr. could not be here on account illness, the commissioners were informed. He will asked attend the next which will be May resumption the hearing Attempts made yesterday trace the questioned transactions the testimony of connected the bank and former banks. did question the cross witnesses but objecttestimony not the rules The county had witnesses moned.