The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-08-27
ORGANIZED BANK
WITHOUT MONEY
Its Only Assets Consist
of a Few Office
Fixtures.
NOW IT'S CLOSED
BY COMMISSION
After Doing Business for Several
Months, Colored Institution at
Basic City Got Only $375 in
Deposits = High Financ-
ing Showed Rather Poor
Results.

Banking without capital stock Is a
somewfat new pastime in Virginia, and
Its consummation remained for the fer
tzens of Basic City. The methods OF
the company might be appropriated by
masters of high finance with consider.
able success. II means can be devtsed
to get by the bank examiners. who arc
the results OFFS modern civilization.
Assistant Bank Examiner Charles s.
Hunter was the means OF the downfall
of the bank in question. He paid
little official visit to the institution.
This was the concern whose officers
himself TO be connected with the de-
partment had shortly heretofore pre-
sented himself at the bank and asked
to be allowed to examine 1t, but was
refused when he failed TO produce the
proper credentials
Gave Notes for Stock.
Its name Is, or was, THE Peoples
lSoathern Cent Savings Bank" and 1t
was incorporated several months ago
by the State Corporation Commission
with an alleged capital stock OF $4,000.
Thereby hangs the tale. About 5000
of this stock was represented by the
personal notes OF the officers and di-
rectors. In other words. those in con-
troll. without any money, elected them
selves to Office and started bank.
The only fly in the ointment was that
the concern did not have sufficient funds
to buy postage stamp. To relieve the
situation i, became necessary to sell
the other $1,000 OF stock TO outside
parties. This was done, and with the
$1,000 thus secured some Office furni-
ture was bought and the bank" start
ed business.
Considering the amount of ingenuity
put into the enterprise by the prasnot.
ers, its success WAS disappointingly
small. Ii was found that after several
months of operations the total deposits
amounted 10 the enormous sum OF about
s315. OF this about $3.50 had been
loaned out. Something more than 800
was In the banks vaults and safes in
actual real. hard. cold cash.
Bnsiness Wound Up.
The situation didn't look good to
Mr. Hunter He made his report TO
the State Corporation Commission,
which took hand at once. The loans"
We're called in. the deposltors paid in
full without the suggestion or a run
on the bank. and the institution discon-
tinued The hard-hearted commission
would not even stand for appropriate
ing sum of money to pay the ex-
penses of paying out 1916 in real money.
This is the first bank to be dealt
with sunmarily since the organi.a
ton OF the new department fol. the
purpose of examining State banks.
For the most part these institutions
lave been found to be in good condi-
1ion. But the Corporation Commission
lias declined to stand for banks run
by men who have not contributed a
fcent of money to the capital stock,
,nnd which is represented solely by
ftheir notes of hand.
Therefore the commission yesterday
Issued the following order:
Order Issued.
AN examination having been made
sof the Peoples Southern Cent Savings
Bank. doing business in Basic City. by
Assistant Examiner c. S. Hunter. on
August 2, 1910 in accordance with Sec-
ition 1859 of the Code. and a report
ihaving been made to the State Corpor-
alion Commissicn, 1t is now stated OF
record by the commission that in its
Judgment 1t is necessary for the pro-
lection of the public and Of the oe-
ipositors and creditors of the Peoples
,Southern Cent savings Bank, Incor-
1urated. that it should cease doing
business. and that receiver should
DE appointed by court of competent
s,JEriSoiEtioH 70 Atdke 5cHdr6e OF It's bus
liness Affairs and assets. and wind up
the same.
And 1t is ordered that certined
copy Of this order be transmitted to
the Commonwealth's Attorney for the
county of Augusta. in order that ap-
propriate action may be taken BY him
In the name Of the Commpnwealth or
Virginia. upon the application OF. or
jat the relation of the State Corpora.
tion Commission"
If receiver is appointed he will
proceed to dispose of the desk and
either furniture and divide the pro-
tceeds among the stockholders who put
up their money. 1t is not believed the
men who stacked up their notes will
set anything.