The Barnwell people-sentinel. (Barnwell, S.C.) 1925-current, March 10, 1932, Image 4
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THE BARNWELL PEOPLE-SENTINEL. BARNWELL. SOUTH CAROLINA
THURSDAY, MARCH
19S2
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EXCHANGE PLAN ASSURES
EFFICIENT LIQUIDATION OF
WESTERN CAROLINA BANK
F9ar. Adopted for Exctwnsre of Securities for Deposits Explained in Detail.
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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.
ADVERTISING ALL RIGHT;
TROUBLE WAS WRIGLEY
William Wrigley, Jr., who lost
three fortunes learning how to use
advertising correctly, used to say
that the trouble was not with adver
tising buj with himself. He claimed
hrs three failures were entirely due
to the fact that he had failed to use
the right media and methods.
Another time, when he was asked i
what his attitude towards advertising
would be f everybody in the world
had learned to chew his gum, he de
clared that he would keep right on
with as heavy, or an even heavier ap
propriation. Cutting off advertising
under those conditions would be just
the same as cutting off steam from a
locomotive. The business would soon
run down, he declared.
“There is nothing magical about
advertising,” he often declared.
“Obey its rules and it will deliver.”—
The American Press. \
ADVERTISE IN
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