The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1912-04-06

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 appn-
cation for said order. And 1t shall
be his duty. and he Is hereby author
lied and empowered to make proper
application to the court for the ap-
pointment of himself or some other
person as receiver to wind up and
settle the affairs of such bank or
banking institution"
Having knowledge of this provis-
ion OF the law, and some time since
feeling that 1t was desirable to have
the Affairs of the Lexington Savings
bank wound up. 1 consulted the at
torney general as to my duties and
powers in this respect and was ad.
vised that in the absence Of such
fraud or dishonesty as is referred
to in the act, and / knew OF none
such. that 1t would be necessary to
show insolvency in order that a re-
ceiver might be appointed or that I
might take charge OF the bank under
the provisions Of the statute above re-
ferred to.
THE bank was not incorporated. 1t
was simply and solely the private
property and enterprise of Mr. w. p.
Roof. and all Of his assets were re-
sponsible for the debts and obliga-
tions OF the banks. Under these cir
cumstances 1t was impossible to say
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 mer-
camille business. cotton MILL farm
ing and other interests. and having
no authority to ascertain these mat
tsrs, IL was impossible to ascertain the
real condition Of the bank. So long as
private banks are allowed the ex-
aminer will be confronted with cases
OF nature similar to this one.
Upon the examination of the bank
on February 5th last 1t was ascer-
tanned that its condition was very bad.
and although the attorney general
had advised that the banking laws did
not contemplate the appointment of
receiver for q mercantile business,
cotton mill and farming lands. and
other interests than the bank, I noti-
fed Mr.. Roof that he must give me
a sworn statement showing his SOL
vency. otherwise after 80 days / would
ask the attorney general. with the
consent Of the State treasurer, to take
the necessary steps for the appoint
ment Of receiver for his bank. After
80 days. ell efforts OF Mr.. Roof TO
arrange satisfactorily the financial af-
fairs OF his bank having failed. and he
having practically admitted his insol-
veney, upon M request. and with the
consent Of the State treasurer. the at
torney general took action for the ap-
pointment Of a receiver, Mr.. Roof
thereafter consenting. Under this pro-
ceeding w. H. Townsend was appoint
ed receiver by Judge Prince, and he
Is 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 act furnished a wholly inadequate
and incomplete remedy In this case.
and that the creditors would no doubt
put Mr.. Roof In bankruptcy as soon
as the contemplated action was COM
menced. am now informed that Mr.
Roofs entire estate: bank. store. cot
ton mill interests. farms. etc, are to
be administered by the federal court
In bankruptcy, and that proceedings
to that end are now pending, the
federal court having taken Jurisdiction
OF the whole affair.
The law does not contemplate that
i. as bank examiner. shall give pub
lie funds on deposit higher consider
alton than that OF private individuals,
that 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 large
amount Of money on deposit called
the fact to the attention OF the at
torney general. and i am informed
that he conferred with the comptrol-
Ter general about II. had no infor-
nation that the State penitentiary
-