Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1912-04-05

L
matters, 1t was impossible to ascertain
the real condition Of the bank So
long as private banks are allowed the
examiner will be confronted with cases
Of nature similar to this one.
Upon the examination Of the bank
on February 8, last, 1t was ascertained
that Its condition was very bad, and,
although the attorney general had ad-
vised that the banking laws did not
contemplate the appointment of a re.
ceiver for mercantile business, cotton
mill and farming lands, and other in
terests than the bank, notified Mr..
Roof that he must give me a sworn
statement showing his solvency, other
wise after thirty days would ask the
attorney general, with the consent of
the state treasurer, to take the neces-
sary steps for the appointment Of re-
ceiver for this bank. After thirty days
all efforts Of Mr.. Roof to arrange satis-
factorily the financial affairs of his
bank having failed, and he having
practically admitted his insolvency,
upon my request, and with the consent
or. the state treasurer, the attorney
general took action for the appoint
ment of a receiver Mr. Roof thereaf-
Mr.. w. H. Townsend was appointed
receiver by Judge Prince, and he 10
now In charge Of the bank and subject
to the orders Of the court.
II was advised at the time this ac-
tion was taken that the bank examin-
er's acts furnished a wholly inadequate
and incompetent remedy in this case
and that the creditors would no doubt
put Mr.. Roof in bankruptcy as soon as
the contemplated action was commenc-
ed. am informed that Mr.. Roofs en-
tire estate, bank, store. cotton mill in
terests, farms, ETC., are to be admins
tered by the Federal court in bank
ruptcy. and that proceedings to that
end are now pending, the Federal
court having taken jurisdiction of the
whole matter.
THE law does not contemplate that
/, as a bank examiner, shall give pub
lie funds on deposit higher consider
alton than that Of private individuals,
but that all shall be considered alike.
Besides this, 1t was not ascertained
until February last that county funds
were on deposit in this bank. How
ever, as soon as I ascertained that the
county treasurer had a large amount
of money on deposit l called the fact
to the attention Of the attorney gen.
eral, and l am informed that he con=
ferred with the comptroller general
about 1t. I had no information that
the state penitentiary had money on
deposit in this bank until I saw the
statement in the papers prepared by
the attorney general. This informa-
ton was not given me by the bank
when 1t reported as to the county
treasurer's deposit, and / am advised
that the attorney general obtained the
information as to this from the SUPER
intendent Of the state penitentiary. In
this connection will say that 1t Is not
the custom, nor Is 1t necessary to as
certain the true condition Of bank
for the examiner to inquire into or in
form himself as to the names Of the
individual deposltors, or as to how or
for what purpose their deposits are
made It Is only necessary to ascertain
the total amount Of all deposits, as the
condition of the bank can In no wise
be affected by the character or person.
ality Of the depositors.
I'm conclusion, I would advise that
this entire matter, so far as this office
Is concerned, was taken In hand by the
court upon my complaint, and with the
advice and consent of the state treas
urer; that l have not failed to dis
charge the duties imposed upon me by
law, and that have acted with re-
spect to the difficulties presented by
the condition of this bank under the
counsel and advice Of the attorney gen.
eral. Such being the facts Of the case,
I respectfully decline to resign the Of
flee of state bank examiner. Respect
fully, B. ]. Rhame,
State Bank Examiner.
Removal Proclamation.
The proclamation Of the governor re-
moving Mr.. Rhame is as follows:
State of South Carolina, Executive
Chamber.
Whereas, the general assembly, by
an act, provided. THAT the governor
of the state shall appoint competent
person to examine, from time to time.
as hereinafter provided, into the affairs
of all banks and banking institutions
conducted by corporations or persons
in this state: and,
Whereas, said act provides. That 1t
shall be the duty Of such bank exam
iner, and he shall have power to make
examinations into all the books, papers,
and affairs Of the aforesaid bank and
banking institutions, etc.; and,
Whereas the said act further pro-
vides, That If the state bank examiner
shall find any of said banks or bank
ing institutions are insolvent, or that
their business Is being so dishonesty
and fraudulently conducted as to jeop-
ardize the interests Of the depositors,
creditors or stockholders. he shall
have full power, upon consultation with
the state treasurer to take and obtain
possession Of all the assets and prop
erty of every description belonging to
said bank or banking institution, etc;
and,
Whereas, the said act further pro-
vides. That all institutions doing bus
mess in this state, in lending money
and receiving deposits, under acts OF
interpretations granted by the state are
hereby required, under penalty Of for
feiture Of their charter, to publish IN
the county wherein such banking instl-
tuition is located, when called for by
the state bank examiner, without pre-
vious notice, correct report OF the
conditions and business of such insti-
tuition, which report shall contain
statement, under oath. by the president
Of