The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1905-07-13
DARLINGTON BANK FAILS
INDEPENDENT COTTON OIL COMPANY PUT
INTO HANDS OF A RECEIVER

INTO HANDS OF A RECEIVER
Bank Made Large Loan-DIfficulties Of the Inde.
pendent Cotton Oil Company Followed
by Closing Of the Darlington
Trust Company.
DARLINGTON, July 1.-TWO unexpected
occurrences startled Darlingtonians this
morning and this will extend to much
wider circle when the facts are known.
The first was the announcement that
the doors of the Darlington Trust COM
pany were temporarily closed; the second
was the statement that the affairs of the
Independent Cotton Oil company had
been placed in the hands of receiver.
THE NOTICE.
The first intelligence was gained from
the following notice, which was posted
on the closed doors of the Darlington
Trust company:
"Qwing to the financial troubles of the
Independent Cotton Oil company, the
directors deem it to the interests of the
depositors and the stockholders Of the
Darlington Trust company to close the
doors temporarily. The directors have
examined the books of the company and
assure all stockholders that they will be
paid in full.
"By order of the board of directors.
"E. c. L1DE, Cashier"
THE OIL COMPANY.
It will be seen by this notice that the
Independent Oil company was involved
and the news of receiver having been
appointed for this company followed
soon. Your correspondent wanted only
the most accurate information concern
ing the situation and what follows is
official:
Going first to Mr.. Bright Williamson,
president of the Independent Cotton Oil
company, and one of the largest stock
holders, the following statement was
secured from President Williamson:
MR.. wnL1AMsoN's STATEMENT.
"Ten days ago, because of the solicita-
ton of my friends, + accepted the posi-.
ton of president of the Independent Oil
company at special meeting. I at once
began Investigations and few days ago
I found some inaccuracies which I had
verified yesterday. I feared these were
serious enough to place the company in
the hands of a receiver, so called direc'
tors meeting by telegraph. Seven out OF
nine members were present, Mr.. Mach
man being in Paris and Mr.. Israel not
being able to attend. After hearing my
report these gentlemen were of the unan'
imous opinion that receiver should be
appointed and today an order from Judge
Watts appoints me to that position to
take charge at once"
1t is impossible to get any definite state
ment regarding the assets and liabilities
of the company.
The capital stock of the Independent
company was nominally 100000 and
the stock sold last week as high as rs per
cent. of the par value. The liabilities will
approximate $5Oo,0OO, so it is believed.
The Independent Cotton Oil company,
under the management of President R.K.
Dargan, has.had record and reputation
seldom equalled. When he took charge
of the one mill upon which the organiza-
ton was afterwards founded, the stock
was selling at so cents on the dollar.
Latterly the company has operated plants
at Charleston, Darlington, Mullins,
Kingstree, Timmonsville, Syracuse,
Efingham, Wadesboro, N. c., Cheraw,
Lamar, Homer, Lydia, Swift Greek,
Mechanicsville, Marion, Manning, Auburn,
Montclare, Davis Station, Summer
ton, and Packsville. These 81 plants are
still under the direct control of the Inde-
pendent Cotton Oil company, constitut'
ing its various branches.
Mr.. R. z. Dargan is president of the
Darlington Trust company, which was
organized April 1, 1905, with authorized
capital of 100000. The Independent
Cotton Oil company borrowed $4,000, 50
it is correctly stated, from the Trust com.
pany on demand loan. These loans were
called for yesterday and could not be
met, but it is authoritatively stated that
depositors and stockholders of the Trust
company will be paid in full and will be
paid at once.
Mr.. Bright Williamson, receiver, has at
once gone to work and says he will make
an official statement in few days, Just
as soon as all the necessary facts can be
ascertained. he has been receiving tele-
grams and messages over the long dis
lance phone all day from various Sec
tions sending substantial evidences of
sympathy and interest.
The circumstances are deeply regretted
by all and were freely discussed today.
A1