Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1912-04-05
Htiseellaneolls &saaina.
RHAME AND THE GOVERNOR.
Bank Examiner Resists Order Of Re-
moval.

Bank Examiner Resists Order Of Re-
moval.
News and Courier, Tuesday.
Columbia, April 1.-The governors
act in attempting to remove me from
office is purely arbitrary, and his state
ment that the condition OF the bank
was not published Is false. shall dis
regard his order and shall hold the Of
flee until ordered by the court to relin-
quish," Is the statement which was Is
sued here late this afternoon by State
Bank Examiner B. ]. Rhame, when he
received the copy of Governor Blease's
proclamation removing him from the
office Of state bank examiner. This
means that Mr.. Rhame will refuse to
surrender his office until ordered to do
so by the courts, and that the courts
will finally have to decide the whole
matter.
This is the latest development in the
situation growing out of the incidents
surrounding the Lexington Savings
hank, now in the hands Of receiver.
The letter of State Bank Examiner
Rhame to the governor this morning,
in reply to the one the governor wrote
him last week, was followed by the
governors order removing the bank
examiner and the latter's refusal to be
removed until ordered to do so by the
courts. Governor Blease stated over
the telephone tonight that he had not
selected a successor to Mr.. Rhame.
Such being the facts Of the case,
respectfully decline to resign the Of
flee of state bank examiner" was the
concluding sentence Of the reply which
Mr.. B. J. Rhame, the state bank ex-
aminer, today sent to Governor Blease.
replying to the letter which the latter
wrote Mr.. Rhame anent the Lexington
Savings bank situation. The reply Of
Mr.. Rhame follows in full:
Rhame's Letter to Blease.
Columbia, s. c., April 1, 1912.
Governor Cole l. Blease, Columbia,
S. C.-Dear Sir: Acknowledging receipt
of your letter Of the 25th inst, In which
you request me to state why your at
tention was not called to the condition
Of the Lexington Savings bank when
it's condition was ascertained in 1911,
and asking for further information on
the subject, will say before making
the statement hereinafter contained,
that it is apparent that you are labor
ing under some wrong impression In
regard to this matter. I shall not un-
dertake to take up the various matters
referred to in your letter in the order
in which you have put them, but shall
endeavor a narrative covering those
matters. In the event have not fully
understood your communication and
fail in this letter to cover anything
you may have in mind, I will be glad
to give any further information in my
possession.
"The act Of the legislature-to pro-
vide for the appointment Of bank ex-
aminer, etc, approved the 23d day OF
February, 1906, does not require the
examiner to report to the governor. On
the other hand Section Of this act
empowers the examiner to examine
state banks and requires him to file
his reports in the office Of the state
treasurer This l have done In all
cases, In accordance with the law.
81 know of no existing law; indeed,
| am satisfied there was never such
law, requiring Mr.. Wilson, as bank ex-
aminer, to consult with or report to the
governor with reference to this bank.
While it appears that Governor Ansel
on behalf Of Mr.. Wilson, as bank ex-
aminer, requested the attorney general
to give an opinion with reference to
this bank, and that the attorney gen.
eral did give his opinion, copies of
which are now on file In my office. /
had not understood it to be the law
that the bank examiner should request
opinions or advice from the attorney
general through the governors office,
and 1 know of no reason why Mr.. Will
son should have taken such course.
Section 645, Code Of Laws, 1902
Volume /, requires the attorney gen.
eral TO consult and advise with state
officers on questions Of law relating to
their offices. 1 did consult and advise
with the attorney general in this case,
as I had in reference to many other
legal points in doubt, and he has al
ways given me written opinions and
oral counsel whenever l have called
upon him.
Section 5 of this act, the same be-
ing Section 2,351, Code commissioners
report, provided that:
IF the state bank examiner shall
find that any of the state banks or
banking institutions are insolvent; or
that their business Is being so dishon-
estly or fraudulently conducted as TO
jeopardze interests Of the depositors,
creditors or stockholders, he shall have
full power. upon consultation with the
state treasurer, to take and retain pos
session of all the assets and property
of every description belonging to such
hank or banking institution: provid-
ed he shall first have applied for and
obtained an order to this effect from
a circuit judge either residing or pre-
siding at the time, in The circuit IN
which such bank or banking institu-
ton is located, two days notice OF such
application being first given to the
board of directors Of said bank OF the
application for said order. And 1t shall
he his duty, and he Is hereby author
lied and empowered to make proper
application to the courts for the ap-
pointment of himself or some other
person as receiver to wind up and set
tie the affairs Of such bank or banking
institution
Having knowledge of this provision
of the law, and some time since feel
ing that 1t was desirable to have the
affairs of the Lexington Savings bank
wound up. consulted the attorney
general as to my duties and powers In
this respect and was advised that In
the absence of such fraud or dishon-
esty as is referred to In the act, ana
knew of none such, that 1t would be