The watchman and southron. (Sumter, S.C.) 1881-1930, April 06, 1912, Image 2
IHME WT IE DISMISSES.
BT ATI'. H \ s k KXVMINKK Kh
H HM TO RLC'tMiNIZL DIS?
MISSAL OF CJOVF.KNOIL
Conlrt>vcray llrouglit About ty Fail?
ure of Lexington Saviors* 'lank?
M?H HUited Iii lteply ot Official
?0??n to IVctdo Matter.
t'olimbia. April. 2.?"The gover?
nors act In attempting to remove me
from office h purely arbitrary, and
bin statement that the condition of
the bank wai not publliiheJ 1? falae.
I ?hall disregard hie order und shall
bold the office until ordered by the
??art to relinquish It.
Tht# statement was mad* yesterdiy
%y lt. J. h ha nie. *tat?, bank examiner,
feftowlnif the dl.Mnv.raal by the gover?
nor. Mr Khame yesterday made his
reply to th? chief executive on the
Lexington Savings bank.
Several dnyu ago the governor act?
ing under his contltutlonal right, de?
manded the r< port on the condition of
the Lexingtan Savings bank, which
hsd been rile! with the State treas?
urer by Mr. F.hame. The report was
turned over to the governor. The
governor st he name time wro-.e a
letter to Mr. Khame charging -lere
ltctlon In duty and threatened to die
miss him If he did not give n uatla
faetory explanation.
The reply o' Mr. Khame was sent
to the governor yesterday in ahlch
be declined to resign his position. Mr.
Rhame pointed! out In hla reply that
he had performed his duty In ac?
cordance with the law and that It
Was not neceamry for him to report
on the condition of banka to the gov- 1
eroor.
The governor upon the receipt of
the reply wrote a letter diamlsslng
Mr. I hams. I
The matter will very probaoly be
carried to the supreme court, for a
decision. It Ii said Usf? Mr. Rhame
haa employed W. F Stevenaon to de- j
tend nIf case.
The following la the reply of Mr.
Rhame to the governor as to his ac- ,
Hons with re'erence to the report i
on the bank:
MAcknowledgelng receipt of your ,
letter of the lath Inatant. In which
you request m? to stats shy your st- ,
tent Ion was ?not ealled to the condi?
tion of the Lexington Savings bank
when it* condition was ascertained In
1911, and asking for further Informa- (
ttsm 'jn 'he auftjeot, t will say. before
MV.** fhO statement herelnafl
fsyiesotosd, Ibai it Is appareri that
you are laboring under some wrong
Impression In tegsrd to this matter.
I shall not undertake to take up the ,
sarlesss mattem referred to In your
hatte? m the order In which you have
put thesn. but ?hall endeavor to give '
pea a asrratlvo covering those mat?
ters. In the Stent I have not fully
understood your communication and
rail In thla letter to cover anything
you may have In mind. I will be glsd
be give sny further Information In my
"The act of the legtalature to pro?
vide for the appointment of a bank
examiner, etc.. approved the 2 3rd of
February. Iltt. does not require the
examiner to report to the governor. |
On the other hand, section 2 of this
act empowers the examiner to ex?
amine State banka and requires him
to Als his reports In the office of the
State treaaurer. Thla I have done in
all rase? In accordance with thla law.
' I know of no exlntlns law; Indeed.
1 am aatlafied tnere waa never auch
a taw requiring Mr. Wilson, as bank
examiner, to consult with or report
to the governor with reference to thla
bank. While It appear* that governor
Ansel on behalf of Mr. Wilson, as
bank examiner, requeated the attor?
ney gen -ral to give an opinion, copies
of which are now o- 'e In my office.
I have not understood It to be the
law that the bank exsmlner should
requeat opinion or advice from the
?rtornev seneral threugh the gover?
nor's office, ?nd I know of no reason
why Mr. Wilson should have taken
euch course
Section MS, code of laws. 1902. vol?
onte 1. requires the attorney general
So renault and advls* with Stats offi?
cer* on questions of law relating to
their offices. 1 did consult and advise
with the attor*??*v general in thla case,
es 1 had in ref*r?-. . e to many other
leg*l point* In fOObt, and he ban al
wi- a given me written opinions and
oral counsel whenever I hnve called
upon him.
Section .'? of this a< t. the same bong
section 25-.M code commissioner's re?
port, pro*Ides th.
If the State bank examiner shall
nnd that any of the said banks or
bonking institutions are insolvent, or
that their htialness la being so dis
honestly ?.r fraudub-ntl> conducted a*
to leopnrdixe the interest of the de?
positors, creditors or stock holder?, ho
shall h.? ? full power, upon cnault
tatton with the State treasurer, to
take and retain possession ? f alt the
sasets snd property <-f every descrlp
lion belonclng to such bank or bank
tng Institution Provided, be shall
rtrst hav* applied for and obtained an
order to this effect from s < Ircult
1 judge either residing ur presiding at
the time, in the circuit in which such
hank or banking institution is located,
twc days' notice of such application
being first given to the board of
directors of Bald bank of the appli?
cant on for said order. And it shall
11 his duty, and he is hereby author?
ized and empowered to make proper
application to the court for the ap?
pointment of himself or some other
i person as receiver to wind up and
settle the affairs of such bank or
hanking Institution." |
"Having knowledge of this provis?
ion of the law, and some time since
I
feeling that It was desirable to have
, the ^f-airs of the Lexington Savings
bank wound up. I consulted the at
I torney general as to my duties and
powers In this respect, and was ad
\lsed that In the absence of such
fraud or dishonesty as is referred
to n the act. and I knew of none
such, that It would be necessary to
show Insolvency in order that a re?
ceiver might be appointed or that I
might take charge of the hank under
I the provisions of (.he statute above re?
ferred to.
"The bank was not incorporatod. Tt
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 It 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?
cantile business, cotton mill, farm?
ing and other interests, and having
no authority to ascertain these mat?
ters, It 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 a nature similar to this one.
"Upon the examination of the bank
on February 5th last it was ascer?
tained that Its condition was very bad,
and although the attorney general
had advised that the banking laws did
not contemplate the appointment of a
receiver for a mercantile business,
cotton mill and farming lands, and
other Interests than the bank, I noti?
fied Mr. Roof that he must give me
a sworn statement showing his sol?
vency, otherwise after 30 days 1 would
ask the attorney general, with the
consent of the State treasurer, to take
the necessary steps for the appoint?
ment of a receiver for his bank. After
30 days, all efforts of Mr. Roof lo
arrange satisfactorily the financial af?
fairs of his bank having faHe.l. and he
having practically admitted his insol?
vency, upon my 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. Towneend was appoint?
ed receiver by Judge Prince, and he
Is now in charge of the bank and
subject to the orders of the court.
"I was advised at the time this ac?
tion was taken that the bank examin?
er's act furntnhed a wholly inadequate
and inccmplete remedy in this case,
and that the creditors would no doubt
put Mr. Roof in bankruptcy as soon
as th* contemplated action was com?
menced. I am now Informed that Mr.
Roof's entire estate: hank, store, cot?
ton mill Interests, farms, etc., are to
he 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
1, as hank examiner, shall give pub?
lic funds on deposit a higher consider?
ation than that of private individuals,
that that all shall be considered alike,
lteddes this, tt was not ascertained
until February last that county funds
vs. re on deposit in this bank. How?
ever, as soon im I ascertained that
the I ounty treasurer had a large
amount of money on deposit I called
the fact to the attention of the at?
torney general, and 1 am Informed
that he conferred with the comptrol?
ler general about it. i had no Infor?
mation that the State penitentiary
had money on deposit In this hank
until I saw the statement in the pa?
pers prepared by the attorney general.
This information was not given NIC by
the bank when It reported as to the
unty treasurers deposit, and I am
advised that the attorney general ob?
tained the Information as to this from
the superintendent of the State peni?
tentiary, in this connection I will say
that it is not the custom, nor is It
soccssar) te ecoortstti tht true eondt
t on of a hank for the examiner to
inquire Into <>r inform himself as to
J tin- names of thC Individual depositor s.
111 .is to h ?w or for what purpose their
deposits are made, it |sj only neces
?v to ascertain the total amount of
all deposits, as the condition of the
hank ens oe in nowise effected by the
character <>r personality Of the de?
positors.
In core luslon 1 would advise that
this entire matter so far as this office
Is concerned %N;?* taken In hand b) the
court upon say complaint, end with
Ho advice and consent of the State
irer thai i ha\?? not failed lo
discharge the duties imposed upon
toe by law, and that I ha ft acted with
respect to iii?> difficulties presented by
the oonditlon oi this bank under the
counsel and advice of the attorney
general. Buch being the facts of the
ones l respectfully decline to resign
the office ,.f state bank examiner."
Remo\ ul IM? h ? la ma t i( in
Tin- pro? lamatlon of the Governor
removing Mr. Rhame is as follows: j
State of smith Carolina, Executive
('hamber.
Whereas, the General Assembly, |
by an Act. provided. ' That the Gov- '
ernor of the State shall appoint a
I
competent person to examine, from
time to time, as hereinafter provided,
into the affairs of all banks and bank- '
ing institutions, conducted by cor?
porations or persons in this tSate;
i
and.
Whereas, said Act provides, "That i
it shall be the duty of such bank ex- j
amlner. and he shall have power *.o
make examinations into all the books,
papers, and affairs of the aforesaid
bark snd banking institutions, etc;"'
and,
Whereas, the said Act further pro?
vides, "That if the State bank exam?
iner shall find any of said banks or
? anklng Institutions are insolvent, or
that their business is being so dis?
honestly and fraudulently conducted
as to Jeopardize the Interests of the
depositors, creditors or stockholders,
he shall have full power, upon con?
sultation with the State Treasurer, to
take and obtain possession of'afl the
assets and property of every descrip?
tion belonging to said bank or bank?
ing Institution, etc;" and,
Whereas, the said Act further pro?
vides, "That all institutions doing
business in this State, in lending mon?
ey and receiving deposits, under Acts
of Incorporations granted by the State
are hereby required, under penalty of
forfeiture of their charter, to publish
in some newspaper In the county
wherein such banking Institution is
located, when called for by the State
bank examiner, without previous no?
tice, a correct report of the condi?
tions and business of such institution,
which report shall contain a state?
ment, under oath, by the president or
cashier of such institution, of the
amount of capital stock paid in; de?
posits, discounts and liabilities of said
institution, etc," and.
Whereas, the said Act further pro
v des, "This section shall apply to
all private banking institutions,
whether chartered or not;" and,
Whereas, the said act further r?n
I sb\ The statement non required]
by Section 2,3-1 G, shall b < railed for by
said bank examiner at least four
times v.u<;u yvar i published in
some newspaper in the county where?
in such banking institution is locat?
ed."
Now, whereas, it appears by re?
port of Giles L, Wilson, State bank
examiner, tiled April 15, 1910, with
the State Treasurer, in which report
said Wilson states: "Full report
submitted to Governor for review
and advice. Schedules R and C scare
me;" and by report filed March 3.
1911, signed by B, J. Rhame, State
bank examiner, in which he says: "I
am worried over the condition of this
bank and have eilled Mr. Roof's at?
tention to these large excessive loans."
etc; and.
Whereas, by further report, filed
March 12. 11*12. and signed by T. (*.
IHinlap, assistant examiner, showing
the had condition of said bank; and.
whereas, each and every one of these
repOftl show that the said banking in
stltution was in bad condition; and,
whereas, H. J. Rhame. State bank ex?
aminer, did not have published, as re?
quired by law. said reports and state?
ments of said bank, thereby giving no?
tice to the depositors of said hank of
tht SerlOUS condition of said bank, in
Order that they might take such steps
as they may have deemed necessary;
and. whereas, by the said dereliction
and neglect of duty, the said R. .1.
Rhame, as State bank examiner, has
caused much loss to Individual depos?
itors and others, which would have
I ecu saved if the proper steps had
been taken when the report of Giles
I.. Wilson was tiled In 1910, or if
proper steps had been taken when the
said B, ?I. Rhame had filed his re?
port on February 1. 1911; and,
Whereas, in my judgment, the said
B. J. Rhame has been guilty of neglect
of duty and misconduct by not carry
inn out the provisions of said Act;
and.
Whereas, he has been guilty of
neglect In the discharge of his du?
ties ami shown himself thoroughly In?
competent to discharge the duties of
die said office, a> required by law.
Now, therefore, by virtue of the
power veeted in me by the Constitu?
tion of the state ot South Carolina
and the laws. I do hereby remove B.
.1. Rhame from the office or position
of state bank examiner and i here
by revoke and declare null and void
the commission of the said It. ?'?
Ithnme heretofore issued and under
which he is now acting, and declare
any further act or a? t* of his as -aid
state bank examiner to be null ami
\ old.
in testimony whereof I have here
unto set my hand and caused the
great seal of the state to be affixed,
at Columbia, thil 1st day of April, A.
D., nineteen hundred and twelve, and
in the "n ? hundred and thirty-sixth
year of the Independence of the Uni?
ted states of America,
SOME BLAME FOR OFFICIALS.
\?> Effort Made to Keep tin' Aliens
With Pistols Out of Court House.
Red Buck in Charlotte Observer.
I returned here last Thursday,
from HUlSVllle. where I had been for
The New York World and The Thar
lotte Observer. 1 was in Hllhtville
OOUnty from Friday morning, the
day alter the assassinations. until
Wednesday nicht of the following
week.
There are several fine lessons to
he drawn from the HUlSVllle shame.
The South is prone to he lenient
with lawless people. Pistol-toting is
more general and more common in
any of the Southern States than it is
In any State of the West. North or
Bast, I WO! surprised, when I
reached Montana, where I lived sev?
eral months In 1910-11. to find that it
is a rare thing to see a man with a
gun on his person. The quiet, calm
refined South ll the land of the pis
tol-toter. Oive a man well loaded,
self-acting gun and he will go out of
his road to take an Inoffiensive dog
by the ears. The trusty gun makes
many a man take offence where none
is Intended, or suggested.
Instead of disarming the Aliens
when they etered the court hotise
at HUlSVllle three, at least of the
court otlicials armed themselves. It
will be proven if the Aliens get a
fair trial, that one court officer who
had no more right to cary a revol?
ver than did any of the Aliens, boast?
ed that he had a new gun and more
than a hundred rounds of cartridges
to fight the Aliens with if anything
was started. Such talk, it is said,
was common about the county ?or
weeks before the shooting came. The
Aliens had heard it. They did not
like two or more of the court officers.
The authorities of Virginia tem?
porized with the Aliens for nearly
20 years. The courts were bullied
by Floyd Allen and hts gang. The
juries which were composed of Cat
roll county men. did not seem to hes?
itate if they thought an Allen was
guilty to say so. It was not the
Juror but the men higher up that
the Aliens ruled. Politics had a part
In It Th?? Allen firanar could vote as
Well as shoot and its l\ adSTS were
loyal to persons who helped tinn-..
Floyd Allen escaped prison for an
hour by the aid of a Virginia Gov?
ernor who remanded a sentence re?
commended by a Jury and approved
and given by a Judge. For some
kind turn one of the Aliens saw that
his township supported a former
Congressman at the polls.
The sheriffs of the county have
not tried to keep the Aliens from
appearing in court with their conceal?
ed weapons on their persons.
Some of the blood of the tragedy
in the Hlllsville court house rests
upon men who have had charge of
Carroll county affairs.
MARSHALL KILLS MAX.
"Long Henry" Moody Shoots John
VrDnnlel?Officer Seriously Wound?
ed.
Barnwell, April 1.?"Long Henry"
Moody, town marshal of Olar. shot
and killed John McDanlel. 25 years
old. of Fairfax in a pistol duel at Olar
yesterday. Marshall Moody received
serious wounds, one bullet taking ef?
fect In hts abdomen, while another
passed through one of his lungs and
broke an arm. McDanlel, who is a
native of Georgia, has been living in
this State several years.
Xews Notes From Wteocky.
Wisacky, April 1.?We have had a
few bright sunshiny days, and farm?
ers have taken courage and are rush?
ing with the farm work.
The oat crop is promising, but there
has not been much planted in this
s 't tion.
There has not been much work
done In the gardens.
The fruit crop is promising so far.
There has been very much sickness
in this community for many weeks,
Mrs. K. J, Williams has been very
sjek for several weeks, Bhe Is still
quite feeble.
Miss Sailie Ledingham has been
extremely ill for the past four weeks.
Tin-re is a slight change for the bet?
ter iu her condition at this time. Her
niece, Miss Bessie Qatlln of Conway,
is at her bedside.
Miss Run Ice Williams has complet
. ,i ;i course In stenography at the
business college in Columbia and vsill
leave todaj for Alcolu where she has
11 cepted a position.
Miss Margaret Law <>f Bllotts is
\ h itlng at the home .<i Mr. M. L Wll ?
Hams.
Mrs, Pcrclval Btuckey of Blshopvllb
accompanied b> Mrs. Qlbson and Mis;
lionise shit ei , visited her aunt. M > I
K i Williams end family yesterday
Mrs. Mars Parrot! and Mrs. Dei
Champs have I.it visiting our slcl
i ecenl iv.
MEXICO HARD UP. I
I
-
TREASURY SHOUT FOR FIRST
TIME 1\ TWENTY YEARS.
Congress Takes Steps to Replenish
Coffers by Levying Taxe* on i.*- - i
teries, Tobacco. Wine ami Li?
quors*
Mexico < ity. April 2.?For the first
lime in 20 years tii?* Mexican treas?
ury faces a deficit <?i* approximately
$1.740.000 fold In the estimates fur?
nished by the treasury department to
congress for the fiscal year of 191 2
IS. Probable expenditures by the
government for the next fiscal year
are estimated at $55.587,04:V40.
which may be balanced from existing
sourcei of revenue by a propectlve
Income of $69,878,7(0.
Congress today took measures to
mean the deficit by increased taxes en
lott'-ries. tobacco, wines. liquors.
>u'a';ue and petroleum.
. ho last fiscal year c- the Diaz
?. me left the treasury with a sur
?j l' til. lUIlt y activities
l the past year still in progress are
Big ed as the cause.
(kftftfJU No\ .
OswegO, April 1.?Fish are biting
new and we can't plough, so we go
ig, Prof. Lata ma heads the party
U d y and apologises to Irs many
friends in th?* city for his absence.
Walter IfcCoy, Charlie Cauthen
and the preacher attended the Cam
den horse show and entered two fine
carriage horses, but the pair refused
to stay in and drew a l> g crowd to
see their stunts on the ou'.side, which
were complete in every respect, for no
one was hurt, but all a.-t< nished. They
did not get a blue ribbon, but did get a
new red pole and set of harness,
ibid colds are epidemic here.
M. J. M.
CONDENSED STA IEMENT OF THE CONDITION OK THE
FIRST NATIONAL BANK
OF SUM TER.
At the Cleat of Kusine*?, let. Quarter of 1912. March 30th, IMS.
RESOURCES:
Loans and Discounts, Bond* and Securities. 514,866.81
Overdrafts. 5,884.28
Real Estate and Furniture and Fixtures. 3,842.61
Cash and Due from Banks. 84,543.10
$609,136.80
LIABILITIES:
Capital Stock. 100.000.00
Surplus and Profits. 105 387.78
Deposits. 343.749.02
Rediscounts. 60,000.00
$609,136.80
Prompt attention to all business entrusted to us.
Xelll O'Ronnell, Pres. lt. 1). I***, V. F. J. L. McCMIam. Cashier.
We Want You
to open an account with us by reason of the individuality of a
service all our own given every customer. A service that cannot
be described, yet is plainly evident. This service rests Largely up?
on the almost silent "little things" which have come to mean
greater thing! tu those who transaet their affairs aith this insti?
tution
The Peoples* Bank.
In every Department of
Banking
THE FARMERS' BANK & TRUST CO.
IS PREPARED TO SERVE YOU IN
A SATISFACTORY MANNER.
The Road to Success.
Save Your Money
The 2nd quarter starts on April 1st. Money
deposited on that date or up to the 10th of April
starts drawing interest from date.
Come in and see us.
The Bank of Sumter.,
GEORGE H. HURST,
UNDERTAKER LAND
EMBALMER
202 N MAIN STREET
Day Phone 539 :: :: Night Phone 201 j
sssssss ?irt^yfM"^'Frf^MirrK wa&