The herald and news. [volume] (Newberry S.C.) 1903-1937, 1912-04-05

siding Or pleSldlnS at Ihe u'.'e Ill INC
circuit in which such bank or banking
institution 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
it shall be his duty, and he is hereby
authorized and empowered to make
proper application u the courts for
the appointment Of himself or some
other person as receiver to wind up
and settle the affairs Of such bank
or banking institution
.FTavire knowledge of this provision
of the law, and some time since feel
ing that it was desirable to have the
affairs Of the Lexington Savings bank
wound up, I 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 rs IS referred 70 in the act, and
I knew of none such, that it would be
necessary to show Insolvency in order
that 2 receiver might be appointed or
that I might take charge Of the bank
under Tie provisions Of the statute
above referred to.
"The bank was net incorporated. It
was simply and solely the private
property and enterprise Of Mr.. w =,
Roof, and all of his assets were re-
sponsible for the debts and obligations
stances it was impossible to say
of the bank. Under these circum-
whether the bank was solvent or in
solvent. without knowing the assets
and liabilities Of Mr.. Roof outside of
the bank, that is, as to his mercantile
business, cotton mill farming and 9TH
er interests, aid having no authority
to ascertain these matters, it was i'm
possible to ascertain The real condi-
ton Of the bank. SO long as private
banks are allowed the examiner viii
be confronted with eases Of a nature
similar to this one.
Upon the examination Of the bank
on February last, it was ascertained
that its condition was very bad, and,
although the attorney general had adj
vised that the banking laws did not
contemplate the appointment of a re-
ceiver for a mercantile business, cot
ton mill and farming lands, and other
interests than the bank, I notified Mr.
Roof that he must give me a sworn
statement showing MS soIvency, 9TH
erwise after 80 days I would ask the
attorney general, with the consent Of
State treasurer, to take the necessary
steps for the appointment of a receiv-
er for this bank. After 80 days all
efforts Of Mr. Roof to arrange satisfac-
torily the financial affairs Of his bank
having failed, and he having pract-
cally admitted his insolvency, upon
my request, and with the consent Of
the State treasure, the attorney gen
eral took action for the appointment
of q rCceiyer, Mr.. Roof thereafter
consenting. Under this proceeding
Mr.. w. II. Townsend was appointed
receiver by Judge Prince, and he is
now in charge Of the bank and subject
to the orders of the court
81 vas advised at the time this ac-
tion was taken that the bank eXamin-
ers acts furnished a Wholly made.
quate and incomplete remedy in this
case and chat the creditors W Md no.
doubt put Mr. Roof in bankruptcy as !
soon as the contemplated action was
commenced. I am informed that NJ.
Roofs entire estate, bank, store, cot I;
ton mil? interests, farms, etc, are tof
be administered by the federal court
in bankruptcy, and that proceedings
to that end are now pending, the fed
eral court having taken jurisdiction
of the whole matter
THE law does not contemplate that
I, as a bank eyamine", shall give pub
lie funds on deposits higher consid-
GRAFTON than that Of private indivi
duaIs. bur that all Shall be considered
alike. Besides this, it was not ascer-
tanned until February last that county,
funds were Oh deposit in this bank.
However, as soon rs l ascertained
that the county treasurer had large
amount of money on deposit l called
the fact 70 the attention Of the attor-
ney general, and l am informed that
he conferred with the comptroller gen
eral aDo"t it. l had no information
that the State nenitentiary had money
on depos in this bank until | saw the
stateme~t in the papers prepared by
This i,,c form a.