Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1912-03-29
AFTER THE BANK EXAMINER.
Governor Blease Calls for the Resie.
nation of Mr., Rhame.

naIlOn OF MT. hnaTHos
Governor Blease has written a warm
letter to Mr.. B. ]. Rhame, state bank
Examiner. because Of presumed dere-
lliction Of duty.
The Lexington Savings bank. pri-
vate institution owned by w. P. Roof,
and with a large line of deposits, was
forced into voluntary bankruptcy last
week by uneasy creditors. and It has
developed that the bank has been in a
shaky condition for several years.
Records in the office Of the state
treasurer show that two years ago,
Giles L. Wilson, the then bank exam
liner, made a report showing that al
though the bank had large line Of
deposits its resources were loaned up
to the handle on securities that were
more or less doubtful, and Mr.. Wilson
reported to Governor Ansel that the
situation was "scary." The records
show that Governor Ansel referred the
matter to Attorney General Lyon; but
there Is nothing on file to show that
Attorney General Lyon took any official
action. Additional similar reports
have been made by Examiner Rhame
lduring the administration Of Governor
Blease, but they have been made to the
state treasurer, and not especially to
Governor Blease. Governor Blease
L
the treasurer by calling for them, as
Ihe has a right to under the constitu-
ltion.
The report Of Giles L. Wilson on
March 10, 1910, called attention to
lquite a number Of loans exceeding the
lawful limit, as follows:
w. P. Roof ...... ........$ $4,000 90
w. P. Roof Joint with Allen
| Jones ..... ...... ....... 4o,OUU w
lW. P. Roof, demand ........ 1850 90
Allen Jones, endorsed by
Willie Jones, w. A. Clark,
ct al. ...... -. ... 4S,500 w
D. ]. Griffith ...... ........ 1903 ~
and others too numerous to be listed
here.
A report by Examiner Rhame. on
February 5, 1912; but not made to
lGovernor Blease, showed among other
loans exceeding the legal limit the fol-
lowing:
III. p. Barber ....$ b,69O 80
lJ. P. Clark, open ..... 80. 1000 90
CLARK & Clark ...... ...... 1883 90
lClaims, Lexington county
ID. j. Griffith .............. -: :. 1878 IS
Allen Jones, endorsed, Willie
Jones, w. A. Clark, joint
with w. P. Roof $4,000 90
Lexington Supply Co. ...... 3,101 81
palmetto Cotton Mills ..... 25,079 So
w. P. Roof and Allen Jones,
joint, open .............. 1l4,6b4 b1
Sam P. Roof, open ....... 1909 u
w. P. Roof and Bar Lumber
Company 2,600 OO
Sax -Gotha Mills. Allen Jones
W. P. Roof 80. 90. 80. 1882 At
Valley Falls Mfg Co., AL
len Jones, Willie Jones, w.
A. Clark. w. P. Roof :. 15,111 96
The information outlined above was
secured by the governor from Treas
lurer Jennings in response to letters
lasking for the same, and at the same
ltime the governor wrote Attorney Gen
leral Lyon with a view to ascertaining
what had been done by his depart
lment In the matter and what could be
done. While waiting for a report from
1.-THE attorney general the governor also
wrote Mr.. Rhame as follows:
March 26, 1912-Mr. B. ]. Rhame,
lState Examiner, Columbia, 8. c.
Dear Sir: I notice from reports filed
February 5, 1912; March 8, 1911; and
April Is, 1910. that the Lexington
trouble for some months. also no
ltice Mr.. Wilson, your predecessor, In
1910, says in one of his reports: Full
reports submitted to governor for re-
view and advice. Schedules B and c
lscare me-
"Will you please be 80 kind as to
advise me why you did not call my
Iattention to the condition Of this bank,
particularly when you and your as
Isistants knew that the superintendent
lof the state penitentiary had many
thousands Of dollars deposited therein
and also that the county treasurer OF
Lexington county had many thousands
Of dollars Of the county's money de-
posted therein. If you had called my
lattention to this matter as Mr.. Wilson
did Governor Ansels attention.
would have Immediately, upon the
filing Of your report on February 1.
l1911, ordered that proper proceedings
be instituted to protect the interests
of the county and state. I consider
lyour failure in this matter dereliction
Of duty, and unless you can give sat
lisfactory explanation I would advise
that you at once tender your resigna-
tion as state bank examiner, and save
lany further unpleasantness. We do
not want in this state carelessness or
negligence in office: ignorance Is no
excuse I would also be glad IL you
would advise me why you did not act
in accordance with Section 1881, new
lCode Of Laws Of South Carolina, when
lyou found the condition Of the Lex
lington Savings bank, one year ago.
Very respectfully,
| Cole l.. Blease, Governor"