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~*r- THE BARNWELL PEOPLE-SENTINEL. BARNWELL. SOUTH CAROLINA THURSDAY, MARCH 19S2 "X b: EXCHANGE PLAN ASSURES EFFICIENT LIQUIDATION OF WESTERN CAROLINA BANK F9ar. Adopted for Exctwnsre of Securities for Deposits Explained in Detail. r Basis of Value Now Hein* Determined by Appraisel Committees and Liquidation FiRuren Soon to Become Available?—Plan to Be in Actual Operation Within Next Two Weeks, is Expectation.— Other Methods to Be Employed in Banks’ Liquidatirn. A vast amount of detail work is necessary to the proper and efficient liquidation of the Bank of Western Carolina, especially in these times and in view of prevailing economic con ditions, if the interests of the deposi tors are to he subserved to the best advaJUtaRO and every possible dollar secured for them, which is unques- tinimbly the purpose of the receiver. This fact is amply demonstrated by the far-reaching and painstaking work, that is now being done prelimin arily in ananging the machinery for liquidation according to the method which has been adopted. Mr. Tarver, the receiver, has had a great deal of valuable experience both in banking and in hank liquidation, and the ef ficiency he is bringing to bear upon the big job he has before him in Jjqtridaftjng the affairs of the Bank of Western Carolina is already proving a most valuable asset. That the Bank of Western Carolina will be liquidated, as the law pro vides and as is right and proper, atrictJy for the benefit of the deposi tors as the hank’s first creditors and who now, in effect own all the bank’s -assets, there is no room for doubt. This, as has already been made plain, can be done only through calling for aad enforcing the payment of stock holders’ liability as far as possible anil including this liability among the bank’s assets for distribution among depositors along with all other moneys realised from collections and sales of areal estate and securities. As has been stated, stockholders’ liability will be assessed in a short time. Before the actual liquidation pro cess tan be entered upon, however, in charge, to be able to realize more than T>0 percent, probably GO to 70 percent, for depositors. If, however, a basis of 50 percent should be determined by the appraise ment, the exchange cf assets for de posits would be made upon a 50 per cent basis—that is to say, a mortgage for $1,000 would hv exchanged for a $2,000 deposit—and^the small deposi tor who could not take advantage of the exchange arrangement would fee assured of 50 percent in cash divi dends as these dividends accrue through collections of notes, foreclos ures, stockholders’ liability, etc. First, however,, the appraisement of property and securities must be approved in the amounts determined upon by the couits and these amounts get for them. While any depositor has the right to sell or assign his deposit at his pleasure, and such a sale or assignment will be recogn|epd by the bank, the receiver states jbhat it will be well for depositors not to .sell at the present time and not until the valuation of the hank’s assets has been determined. The value of de posits will be anounced as soon as possible, and those who sell in the meantime for less than this valuation will be the losers. Regular assignmefit forms will bd. provided by the bank for proper transfers of deposits after the valuation has been announced. In point of fact, a mass of detail work has been accomplished during the past ten days and the progress being made toward liquidation is mc.-t gratifying as i 8 likewise the un mistakable purpose of the receiver to deal fairly and impartially with every body with no special favors or priv ileges extended to anyone. Next week, it is expected, an announce ment will be made as to the attorneys who will be retained to assist the re ceiver. In the meantime the salaries of all Mr. Tarver’s assistants at the home bank and the branches have been reduced, and they are working faithfully and overtime. Depositors are naturally desirous of knownng when they may expect the first dividend. It is impossible to state at thi s time just when this will be paid. When the bank closed about will thereafter becom e a definite and fixed basis for exchange, not subject i $800,000 of the bank’s securities were to compromise or bargaining with the receiver. — ^— The advantage of this arrangement, not only to the depositor who ex changes his deposit credit for a real estate ( mortgage or bonds held by the hank, for instance, but likewise to the small depositor, is self-apparent. The hank has a large numben of good siz ed deposits and at th e same time a good many amply secured loans. Un der the exchange plan, which is en tirely practical, the man whose de posit is large enough to enable him to take advantage of the exchange ar rangement will secure for his deposit an interest-paying investment. At held by other banks for loans or held as security for deposits. About a half million dollars of this has been paid off, th e bank having gotten back $he outstanding security, but about $300,- 000 more must be paid up. This in cludes the security held by Aiken County for its $135,000 deposit, and about $125,000 pledged to secure other public fund deposits. This will be paid off first, and should not require a great deal of time—and thereafter the depositors wdll be the sole owners of the hank and all its assets in real estate holdings, real estate mortgages, notes and securities, bonds and stocks and the liability of ^stockholders, the same time the liquidating cost will which is a moral and legal obliga- be reduced with each separate ex change that is made. In other words, through the exchange plan, the re ceiver will be able to accomplish as much within sixty or ninety days as there is an enormous amount of work would otherwise require a period of a be done in completing the setup, y ear or t w0 . tion for which their property holdings are liable.—Aiken Standard. ami this is progressing with all possi ble despatch. At the present time an audit is be- ing made and the assets of the bank are being appraised by committees aelreted by Mr. Tarver as a necessary peHhninary to determine the basis «ut which the adopted plan of exchange uf deposits for securities and other bank asset- may become operative. T^is audit and appraisement will also determine in large measure what per- centaKe the bank will be able to pay depositors, although a gieat deal will of course depend upoT^ business ccn- dition* during the period of liquida- Qaen. U is also necessary and essen tial in order that the receiver may be able to deal with large depositors and amaO ones on an equitable basis, which i* foremost in Mr. Tarver’s mind, for although through the exchange ar rangement the big depositors will, as ■ M matter of course, be settled with first—since they will accept securi- liKv fnr instance, for their deposits— fhr same percentage, so far as pos sible, must be paid in cash dividends to the smaller depositors. * Since the depositors in each section will naturally be more familiar with the value of assets of that particular branch, the plan is'to offer assets separately in each section, first to the depositors of that particular sec tion. Likewise are the assets being separately appraised in each section, a committee of three men at work upon the assets of each separate branch w^h five at work I on the as sets of the home barj:. These five men are Fiank P. Henderson, P. W. Townsend, J. B. Permenter, Wesley Johnson and R. G. Tarrant, and Messrs. Henderson, Townsend and Tarrant will constitute an exchange committee when the plan becomes operative. In order that there may be no ques tion cf unfairness or impartiality, the appraisal will be made a matter of public record, and any depositor who s o desires may take advantage of the .exchange plan. Already there is on fil e with the Clerk of Court of each ccunfty in which a branch of the Bank of Western Carolina is located a copy of the Bank Examiners’ 'elos- Soci&l and Personal News from Williston The work^)f aPP r ®isement will pro- ing report, showing the list of assets fee completed within the next which will-he offered, and it will he two weeks, and with its completion helpful if depositors who contem- pian is to calculate a percentage plate taking advantage of the ex- Mrs. W. C. Cunningham, of Willis- ^ _ , „ . „ _ . *^ on > an d ^ rs - EN® n Wise spent the isupoo which, with the court’s ap- change plan will familiarize themsel- 'Week-end with Mrs. W. H. Croghan, il, to make exchange of the banks to depositors or holders of ■uigned or purchased accounts. Into thl» calculation many factors will en- ves as far as possible with these lists. The exchange plan is of course only one phase of liquidation, although, as ha s been stated, a very important The method of procedure will one. This will in the nature of thing* he to set up a credit column the in-J come first and will be effected as trimir rather than the market value rapidly as possible for the sake of ef- the hank’s assets—for instance, not | ficiency. In the meantime, however, the present market value of a piece of collections will be pushed, and every pwpperiy, for it may have no market possible effort will be put forth to under present existing condi- pay an early cash dividend to depo^i- tions, hut its intrinsic value, taking tors' who do not participate in the into consideration the amount the exchange plan. Accounts and indebt- fenak Ihns loaned upon the property edness will be offset, and under the rand ihe interest the paper carries and law the receiver can offset only such wliich the depositor who receives this paper in exchange for his deposit will naAae from it in addition to its face raiar during the expected' period of fisjnidation. Having thus arrived at Abe amount of the hank’s assets, in- 'dtaafing real estate holdings, securi- eff all kinds, .moneys in hand, ritaekifeblders’ liability, etc., into the large an amount as may b e possible Aribft column will go all the bank’s from the Reconstruction Finance Cor- accounts and indebtedness as are in the same name. Stockholders’ liabili ty will also be called for, and this will bring in a larrre amount of money for distribution among de positors. In addition to these regu lar methods of liquidation the receiver will, at ithe proper time, borrow as Salifities—the total amount of de- potits, bills payable, the estimated mdt of liquidation, etc. If then, for Sfen&nrtioit, the assets should total njmpOO and the liabilities $2,500,- "iUL k win become apparent that the Ifcsfe of liquidation would be 50 per- the receiver confident- having gone into as tnorougnty poration on assets of the bank which have not been exchanged for deposits, and this money will likewise be dis- tributed among the depositors in cpsh dividends. The receiver hope* to be able to pay a cash dividend perhaps within th e next 60 days. In the meantime it is learned that a considerable number ef depositors as are selling their accounts, hi oaseg for anything they Williston, March 5.—B. C. Haynes, of S. H. and E. H. Frost, of New’ Yoik, was a visitor here Wednesday. Mr. Haynes stopped over while travel ing over the truck sections of the South. Mr. Kealin, of the Atlantic Com mission company, has opened offices here for the truck season. Miss Kate Kirkland and Mrs. Carey Smith were the >wek-end guests of the former’s sister, Mrs. Black, in Milletteville. Mr. and Mrs. R. W. McCarter and family, of Aiken, have moved into the bungalow owned by C. H. Trctti. Mr. McCarter is connected with the state highway department. Mrs. M. A. Smith has returned from Wagener, where she spent a few days with her father, who has been ill. Mr. and Mrs. J./k.. McCue spent a few days last week in Charleston. Mrs. M. M. Player left Tuesday for a visit of two weeks to her mother, Mrs. Wilson, of Rembert. Mrs. H. M. Thompson and Mrs. W. G. Thompson, Jr., spent the week-end in Charleston, the guests of Mrs. L. P-Anderuon.a- . Misses Anna Sams Clark and Med- rue Free were week-end guests of Mr. and Mrs. J. M. Lee in Waiter- boro. 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