Western Carolina Democrat and French Broad hustler. [volume] (Hendersonville, N.C.) 1913-1915, 1913-04-17

The States Trust company started
business under a formidable name. It
sounds as substantial as Standard Oil
and as conservative as the Hanover
National. 1t is as patriotic as Old
Glory, but on the first shy W-down, the
secretary treasurer lies in supine inn
potency in the city prison and the
granite structure, of Wilmington
sneaks into a lonesome alley.
Yesterday morning, one week ago,
C. II. BoWlds. the fearless member of
the mysterious corporation, stood be-
fore the State Corporation Commission
and offered to submit a financial
statement showing that his company
had $4,000 in assets. The commission
isn't certain whether the $50, 1000 was in
asses" or assets, but recalls the fig
ures as relating to property. The
company may have it, certainly Mr..
Bowlds hasn't it.
About four months ago there came
into the State three men who had had
experience in promoting questionable
| enterprises-Ector H. Smith, of Bir-
mingham, Ala: Tarver, of Augusta,
Ca, and C. H. Bowlds, of Fairfax, S. c..
Their plans were shrewdly made. and
took into account a full knowledge of
conditions and ambitions of the rural
communities and small towns, al well
as some knowledge of the ways of high
finance.
They invested $50 N a charter, put
in a supply of Autographed stationery
and typewriters, rented obscure quar-
tiers on the third floor of a building in
Wilmington. where they put out not so
much as a name plate on the door, and
they were ready to inaugurate their
campaign. Without further recon-
mendations or guarantee than this
their special agents were sent out,
asking that the people turn over their
surplus funds to the State Trust Com
pany to handle and invest for them.
And they were succeeding at a rate
that would have piled up for them a
half million dollars if they had been
permitted to operate till November 1st.
Not q Banker.
Please understand that the States
Trust Company was not in any way
engaged in the banking business. 1t
did not ask for deposits. Deposits
could be drawn out, n institutions
receiving deposits are subjected to ex-
and supervision. They We're
to sell to the people shares of stock in
the States Trust Company-a COM
pany whose name carried visions of a
brownstone front on Front and Mar
ket, whose stationery proclaimed 1T had
two hundred thousand capital, and
whose agents guaranteed eight per
cen and hen some.
But if no more than this had been
offered the stock would not have sold.
II they had been as conservative as
IIis prospective purchasers would have
investigated their character and stand
ing before investing. Make it SO strong
that the people will jump at it without
investigation. That's the game, And
they did. I
And besides, if there was nothing to
it. but TO cash in the money as fast as
their agents sold the stock, business ,
might be too dull. Make it pull
double.
Good Locations. +!
They selected with care localities
were beginning to have their
first visions of a local bank, but need
about five years growth before they
be able to support one. They
proposed to the best people in these
communities that If they would sub
scribe for $4,000 of stock in the States
Trust Company that that company
would itself establish in sixty days a
local bank with So, 900 capital stock
yet, the subscribers to this stock
need only pay Is per cent in cash and
notes for the balance. Bear in mind
that these people were not subscribing
for stock in the local bank, but for
stock in the States Trust Company.