Peoples State Bank of South Carolina (Columbia, SC)

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Bank Cash Is Moved To Columbia And Charleston

Remainder of Deposits of Peoples State Bank Concentrated For Safe Keping

Columbia, Jan. 9.—(AP)—Under guard of state highway patrolmen, cash from the closed Peoples' State Bank of South Carolina branches in the central section of South Carolina was being transported to Columbia today.

It was to be deposited in the Central Union Bank of South Carolina at Columbia for safekeeping, Albert S. Fant, State bank examiner, said.

Cash from the eastern section of the state already has been placed in vaults of the South Carolina National Bank at Charleston, Mr. Fant said, and he plans to place money from the western part of the state in a Belton bank next week.

The centralization of funds is to protect depositors from possible loss.

All deposits of the Peoples' Bank funds made in other banks "will be secured by government bonds, properly margined," according to the bank examiner.

"Other banks, both state and national, throughout the state will be given deposits from time to time on the same basis," he added.

"It is not intended to cast any reflection on depositary banks by obtaining proper security but only as a precautionary measure to properly protect the depositors of the Peoples' State Bank of South Carolina while the affairs of the bank are in my hands as state bank examiner."

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BANK SUIT HALTED AFTER AGREEMENT

MAY ALLOW SETTLING AFFAIRS.

Plaintiffs Withdraw Action Against New York Bank as Result of Peoples State.

Columbia, Jan. 23.-Withdrawal of a $10,000,000 suit against the Chemical Bank and Trust company of New York in connection with the closing of the Peoples State bank of South Carolina, will. in the opinion of Jerre L. Dowling, of Charleston, president of the closed bank, remove entanglements looking to settlement. Mr. Dowling, who returned to Charleston from Washington, where he had been in the interest of the reconstruction finance corporation act, expressed himself as much encouraged over the successful removal of barriers to obtaining assistance under the measure. Earlier in the day an agreement had been reached in Columbia for the dropping of the suit brought by Thomas, Lumpkin and Cain, Columbia law firm, in behalf of the Blue Bird Taxi corporation and S. W. Parham, of Columbia, and others who wished to make themselves party to the action. Mr. Dowling, named as one of the defendants, formerly was assistant vice president of the Chemical bank, correspondent of the Peoples State bank. Dowling said he could see no purpose to be served in "hamstringing" the closed bank in its efforts to settle the situation for the benefit of depositors. "I do not think." he said. "there is any question that the affairs of the bank can be so tied up in litigation as to make impossible for the bank to avail itself of any relief whatever from the reconstruction finance corporation." Attorney's Statement. The following statement was issued by Thomas, Lumpkin & Cain, attorneys for the plaintiff in the suit. "Officials and attorneys of the Chemical Bank & Trust Company of New York were in Columbia yesterday and, after long conferences, have reached with us a satisfactorv and agreeable plan covering differences concerning the closing of the Peoples State Bank of South Carolina and the recent suit brought thereabout. Represent Many Depositors. "We represent approximately $150,000 belonging to depositors who have notes in the closed institution. There are many hundreds of other depositors in like position in the state. "The primary purpose of this suit was to protect the interests of depositors in the closed bank. The proceeding and the rule to show cause issued by the chief justice was designed for the purpose of protecting the assets of the Peoples State Bank, and we now have satisfactory assurances that the collateral held by the Chemical Bank & Trust Company will be properly accounted for. "The Chemical Bank & Trust Company, through its officers and attorneys, and in the presence of representative depositors of Columbia, have agreed that in working out the indebtedness owed to by the closed Peoples State Bank of South Carolina to cooperate in every way possible with the bank or receiver, if one be appointed. "A conference was thereupon held with a large group of depositors who are deeply interested in this basic purpose of the suit in question. the plaintiffs named in the case being present and represented at this conference, and based on this assurance from the defendant Chemical and Trust Company, they believe that the principal purpose of the suit has been accomplished and that therefore, there will be no need to appear before the court in Charleston on February 1st to ask for a final order of the court to be made. "Mr. S. W. Parham. the main plaintiff in the case, feeling assured that the basic purpose in filing the action in the interests of the thousands of depositors having been obtained. has authorized his attorneys to end and dismiss the suit. Hope For Reorganization. "One of the further important reasons moving the plaintiff and the group of depositors who met last night in bringing about a dismissal of the pending action was desire on the part of the nlaintiff. S. W. Parham. and the other depositors at this meeting to assist in every wav in bringing about reorganization along the lines indicated by Mr. R. G. Rhett Sr., in the press during recent days: this especially in view of the fact that the reconstruction measure approved by congress vesterday. and aid may be obtained from this source. "Based on the conferences held vesterday. the plaintiffs in the pending suit have agreed at meeting last night with large group of depositors and their attornevs in this action that the nending suit will be dismissed by proper order of court. as the nrimarv result has been accomplished through these conferences." N. Baxter Jackson. vice-president of the Chemical Bank & Trust Company. said: result of the conference held this evening. the suit brought hv Mr. Parham and the Blue Bird Taxi against the Chemical Bank and others is to be withdrawn. I have felt quite certain

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BANK IN RECEIVERS' HANDS.

COLUMBIA, S. C., Jan. 27.-(AP)Federal J. Lyles Glenn at hearing here today placed affairs of the closed People's State Bank of South Carolina in the hands receivers. He appointed William Elliott. Sr., Columbia attorney, and Robert were M. Gage, of Chester, receivers for the 44-branch which went into pany's the hands of the state bank examiner January 2.

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PEOPLES STATE BANK RECEIVERS ARE APPOINTED

Gage And McDill Of Chester And Elliott Of Columbia Named By Glenn

FANT FIGHTS MOVE

COLUMBIA, Jan. 27-(AP)-Receivers for the closed Peoples State bank of South Carolina were appointed here today by Federal Judge Lyles Glenn. They are: Robert M. Gage, of Chester vice president and treasurer of the Commercial Bank of Chester and director of the Charlotte branch of the Richmond Federal Reserve bank. William Elliott, of Columbia, an attorney. N. M McDill. of Chester. president of the National Exchange bank of Chester. They were named despite protests of attorneys for Ablert S. Fant. state bank examiner, who questioned jurisdiction of the federal court in the matter GLENN'S DECISION In announcing his decision to appoint receivers. Judge Glenn said "As reluctant as this court is to take matter from state agency am compelled to believe that federal receivership is the best way to handle this situation The petition for appointment of a was made for an out-ofstate depositor Ira Krupnick Judge Glenn heard the petition Monday and ordered the Peoples bank which closed and the state bank examiner to why the receivers should not be appointed. The bank today did not oppose receivership. but in an answer to the rule show cause, presented by Alfred Huger of Charleston, held "it the only present method by which great and irreparable losses to its depositors and creditors may be by timely averted INSOL VENCY DENIED The bank, however, denied insolvency At the time of its last published statement, deposits of the 44 banks in the chain were listed as totaling more than $24,000.000 Deposits the time the closing were estimated at $18,000,000. In announcing his decision. Judge Glenn said of the men has taken part in South Carolina polities and none was closely connected with either officials of the Peoples State bank or large creditors Judge Glenn said he would make permanent his temporary order Monday suspending all court actions until affairs of the bank have been straightened. Numerous court actions in connection with the closing have been instituted. Attorneys for Fant. R E. Whiting of Columbia, and Stephen Nettles, of Greenville, argued the appointment of receiver is unnecessary since the bank examiner is receiver himself.

FANT TO APPEAL COLUMBIA, Jan. 27 Albert S. Fant, state bank examiner, tonight it was his intention to appeal from an order of Federal Judge J. Lyles Glenn appointing receivers for the closed Peoples State bank. Judge Glenn, on petition of an out of state depositor, Ira Krupnick, today named as receivers the bank Robert M Gage, of Chester: Elliott. Columbia, and N. M. McDill, of Chester The action was protested at the time by Mr. Fant. who questioned the federal court's jurisdiction in the matter. The bank examiner tonight set forth his position in formal statement. His statement in full follows: the 70,000 depositors of the Peoples State bank of South Carolina, it is my intention to appeal from today's order of Federal Judge J. Lyles Glenn, appointing receivers for the bank. made no criticism of the gentlemen who have been appointed by the federal court as receivers. The decision of the federal judge nullifies the laws South Carolina under the depositors select receiver of their choice The decision takes away from the depositors their right to select receiver or receivers. The only question is whether or not the depositors in state banks in South Carolina have the right to choose their receiver have felt and feel that the 70,000 depositors the 44 branches of the Peoples State bank of South Carolina have rights which should not be ousted by the federal courts "From the best information I was able to get and from the return made in the court, on an fidavit signed by Mr. R. G. Rhett, Sr., chairman the board, was convinced that this whole proceedbrought by an unknown plaintiff, was with the consent and at the instigation of certain interests who care more for their own interests than they do for their 70,000 depositors These certain interests did not want the depositors of the bank have any voice in the selection of receiver They did not wish the state courts of South Carolina to have anything to do with the winding up of the affairs of this state bank examiner, it is my duty to that those rights are protected. This duty shall perform. "The decision of Judge Glenn is too reaching (Signed) ALBERT S. FANT, State bank examiner."

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MORAL TURPITUDE ABSENT, JUDGE STATES

From lency given as yet no intimation of how he feels.

APPEAL FOR CLEMENCY WILL BE MADE TO GOVERNOR TODAY Raleigh. Feb. of John M. Brewer. former Wake Forest banker, to appeal direct to Governor Gardner an effort save the former member of the trustees from entering the serve the one three years imposed in Wake Superior court last June upon his conviction of violating state banking laws. formal arrangement had been made for the hearing tonight and no action had taken toward mitting Brewer prison as the certifled the Supreme opinion the conviction did not reach the Wake Superior court clerk's office until after office hours tonight it indicated that commitment papers would not served Brewer until Wednesday morning. Meanwhile large number letters clemency been received the governor and today petition clemency signed by committee depositors in the defunct Citizens Bank of Wake Forest, which president, presented to Executive Counsel Tyre C. Taylor.

Bank Receivers Named. Columbia, federal receivers the for People's today State bank of South Carolina appointed Royden Watkins. associate state bank examiner, agent and custodian closed 44 Robert M. Gage McDill, Chestheir ter. met to make plans to begin

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PEOPLE'S BANK SEEKS AID

William Elliott of Columbia announced last he and the other two of the People's State bank of South would appear before officials of the Reconstruction Finance corporation in Washington next Wednesday to ascertain what aid might be obtained for the closed bank. The receivers, Mr. Elliott said will be accompanied by their attorneys in the appearance before the Reconstruction corporation officials. The People's State bank, which closed the first of the year, had 44 branches in 41 towns and cities of the state.

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Bank Receivers File An Answer

Columbia, May federal receivers of the Peoples State Bank of South Carolina filed an answer an action against them individuals in the original jurisdiction of the state supreme court seeking to restrain them from proceeding to collect stockholders' The reply to the action contest. ing the recent proceedings against stockholders held that since they are duly qualified receivers of closed state bank it is right and proper that they should collect stockholders' liability.

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RECEIVERS STOCKHOLDERS

Peoples State Trio Insist Right is Vested in

Them.

Columbia, May contention and proper" they should sue for stockholders bility made the three receivers the Peoples State Bank of South Carolina turn filed today in the court. The return to show the court Monday they should be strained from proceeding against the stockholders closed collect statutory liability. Associate Justice John Stabissued petition the Biltrite Building company, Columbia, and other depositors. temporary restraining order against issued Justice Stabler. 1929 Act Issue. The issue court revolves around the of 1929 which provided that receivers closed bank shall elected meeting of depositors. The act gives the ceiver right proceed against stockholders for their liability. The group depositors ing contend that collect the stockholders liability would under the 1929 law On ground, they argue that Robert appointed Federal Judge Lyles Glenn, federal receivers cannot under state proceed collect liability. their the receivers in brief that the law say what can proceed stockholders liability, but any receiver take charge and proceed suits. In making the return to the state the forth that the action brought against individually they any wise but reserving which they may have the bank. Claim Right. They insist that qualified of closed "right and that proper should and for Saying will the whole their reply continues decision court firming the right these fendants conflict: will foreclose the fendant from setting such dilatory defenses purposes and collection from holders the benefit the secured depositors. The action in the supreme court another step series legal involving closed bank. The group of instituted action the Richland county common looking lecting liability from the stockholders. Court Judge Mann signed order restraining any others taking such step. following day, however, Judge Glenn filed order Charleston which federal authorized take action for enforcement of stock

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RECEIVERS ARE RESTRAINED

Court Order Prevents Collection Of Stockholders' Liability In Bank Case

COLUMBIA, Aug. The three receivers of the 44-branch Peoples State Bank of South Caroappointed by federal judge, today were under an injunction sued by the state supreme court preventing from collection of stockholders' statutory liability. Whether an would be by the receivers, William Columbia; Robert Gage McDill. of Chester, had not been decided. An order by Federal Judge Lyles Glenn had authorised them proceed with one for each dollar of stock owned of persons. By decision the court held right the stockholders' liability clearly not in the federal the reason that the only authorfor enforcement of this liability receivers is derived from the act 1929, which by refers not federal Over the the bank examiner and others, Judge Glenn appointed the receivers shortly ter the bank was placed in the hands of the state bank examiner in January.

A series of legal skirmishes has followed moves to settle the bank's affairs, with one group have done by state receivers. The case decided by the supreme court was brought against the receivers by the Biltrite Building company and other depositors. The injunction relates only stockholders' liability and will not interfere with other activities of the receivers. Associate Justices John G. Stabler and M. L. Bonham and Acting Justice W. Cothran concurred in the opinion. Associate Justice Jesse Carter and Actig Justice C. C. Featherstoe interpreting the act to apply to receivers."

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RECEIVERS JUDGE

$7,000,000 Collected Paid On $8,482,659 Of Secured Claims Certified

IN 'DEPLORABLE' SHAPE

COLUMBIA, Apr. ceivers of the Peoples State Bank of South Carolina reported today they had collected approximately $7,000,000 in stocks, notes and bonds and collections are being applied in secured debts the bank. of dividend to unsecured depositors and they depends on economic conditions. They pointed out large amount the bank's assets were tied up in real estate, and said "the outcome liquidation largely on the Carolina and the value of returned collateral 84 PER CENT CLAIMED "These, in turn," report continued "rest mainly upon the price cotton and other agricultural products, and cotton comes back and if land comes back, the receivers be able to dividend report said, 23,918 have been filed, about 84 per cent the total deposits.

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ALREADY SENT

RFC Makes Loan To Receivers Of 44 Closed Banks For 20 Per Cent Dividend

PAYMENT PREFERRED

CLAIMS MADE FIRST

Senator Byrnes Largely Instrumental In Securing

Money For Institution

COLUMBIA, Sept. 12-(AP)Receivers of the Peoples State Bank of South Carolina announced today they had mailed out approximately 30,000 checks totaling $2,600,000 to depositors in the bank's 44 units. The bank receivers sald they had notified loan from the Reconstruction corporation had been granted, and within an hour of receipt of the notice, the checks were mailed

BYRNES AIDS DEPOSITORS

Senator James F. Byrnes was largely instrumental in securing the loan from the R. From collections previously made together with proceeds of the loan, it was said preferred claims which have been adjudicated by the court and of 20 per cent to depositors and general creditors will be paid. A reserve has been made, they said, for claims. The said they pay 20 dividend they had and pay to holders of securities the bank pledged for money Payment of preferred claims, they said. was accordance with orders United States District Judge Lyles Glenn, heard arguments the claimsand orders the the money and payment of the dividend WHERE MONEY GOES The dividend distributed depositors the bank in CharColumbia, Greenville Abbeville. Allendale Anderson, Batesburg Bennettsville, Chesnee, Clemson College Darlington, Edgefield, Georgetown, Greeleyville Hemingway Kingstree Lake City, Manning Olanta, Ridge Spring, Seneca George Stephens Springfield, Summerton Summervi Swansea, Timmonsville and VarnThe bank closed January 2, 1932.

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HUGE DIVIDEND PAID BY BANK

R. F. C. Loan Enables People's State Bank of S. C. to Remit $2,600,000.

COLUMBIA, S. C., Sept. (AP) Receivers of the People's State Bank of South Carolina announced today they had mailed out approximately 30,000 checks totaling $2,600,000 to depositors in the bank's 44 units. The bank receivers said they had been not fied a loan from the Reconstruction Finance corporation had been granted, and within an hour of receipt of the notice, the checks From collections previously made together with proceeds of the loan, it was said, preferred claims which have been adjudicated by the court and dividend of 20 per cent to depositors and general creditors will be paid. A reserve has been made, they said, for unadjudicated claims. The receivers said before they pay 20 per cent div dend they had to collect and pay $8,000,000 to holders of secur ties of the bank pledged for money borrowed. Payment of preferred claims. they said. was in accordance with orders of United States District Judge J. Lyles Glenn, who heard arguments concerning the preferred claims and by orders authorized the borrowing of the money and payment of the diviThe dividend will be distributed tb depositors of the bank in Charleston, Columbia, Greenville, Abbeville, Allendale, Anderson, Clemson College, Darlington, EdgeGaffney, Georgetown, Greelyville, Lake City, Lamar, ngton, Manning. McColl, Moncks Corner, Newberry, Olanta, Ridge Spring, Seneca, St George, St Stephens, Springfield, Summerville, and Varnville. The bank closed January 2, 1932.

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PEOPLES STATE BANK PAYING 20 PER CENT

Depositors in Gaffney and Other Places to Share Dividend.

Columbia, the Peoples State Bank of South Carolina announced today they had mailed out approximately checks, totalling $2,600,000 to depositors the bank's units. The bank receivers said they had been notified loan from the Reconstruction Finance Corporation had been granted, and within of of the notice, the checks mailed. Senator James Byrnes largely loan from the R. From together with proceeds of preferred which have been per cent depositors and general creditors be been made, they said, unadjudicated The before they could pay dividend they collect anw pay holders securities the bank for money Payment preferred claims, they said, was in accordance orders United States Judge Lyles Glenn, who heard the prefer claims and authorized the borrowing the money and payment the dividend. The dividend distributed depositors the bank in Charleston, Columbia, Greenville, Abbe. burg, Chesnee, ClemGeorgetown, Greer, Hemingway, Kingstree, Lake Coll, Moneks Corner, Newberry Oianta, Ridge Springs, Seneca, George, St. Stephens, Springfield, Summerton, Sumter, Swansea, Timmonsville and Varn The closed January 1932.