Bank of Smithfield (Smithfield, WV)

Episode Information

Episode UID
1721270191285
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
172127019 hash
Start Date
January 5, 1907
Location
Smithfield, West Virginia (39.500, -80.562)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
a403a3d0190eddeb

Response Measures

None

Description

Closed by the state banking commissioner for alleged irregularities; receiver later appointed and wound up affairs.

Events (3)
1. January 5, 1907 Suspension
Cause
Government Action
Cause Details
Closed by the state banking commissioner due to alleged gross irregularities.
Newspaper Excerpt
banks at Horton and Smithfield were closed by the commissioner on account of the alleged gross irregularities.
Source
newspapers
2. May 20, 1908 Receivership
Newspaper Excerpt
the Bank of Smithfield which went into the hands of the receiver May 20, 1908, Cecil B. Highland was appointed receiver and The creditors were paid in full . (Article states receiver appointed May 20, 1908.)
Source
newspapers
3. September 22, 1908 Other
Newspaper Excerpt
CECIL B. HIGHLAND, Receiver of the Bank of Smithfield. NOTICE OF PUBLIC SALE OF VALUABLE NOTES On Tuesday, the 22nd day of September, 1908, ... the undersigned will offer for sale ... the following notes ... CECIL B. HIGHLAND, Receiver of the Bank of Smithfield.
Source
newspapers

Newspaper Articles (9)
1. January 5, 1907 Martinsburg Herald Martinsburg, WV
Article from Martinsburg Herald, January 5, 1907

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Article Text

AN INDEX TO BUSINESS. STATE BANKS REFLECT GREAT PROSPERITY OF STATE. Bank Commissioner's Report Will Show Unprecedented Prosperity Prevails Among State Banks. Banking Commissioner S. V. Matthews has prepared his report to the governor. Unprecedented prosperity among the state fiduciary institutions is disclosed, the deposits having climbed from $44,475,261 in 1903 to $50,172.070 at the close of bulness for the year 1906. This increase reflects the prosperity the people of West Virginia are now enjoying. The development of the state's resources and business in all lines has brought money Into the state 4 at a rapid rate. The net increase in the number of state banks during the year is shown to be an even dezen More than this number were anized, but some have closed their doors either voluntarily or at the instance of the commissioner. Commissioner Matthew: recommends several changes in the bank. ing lawa of the state, He points out the defect in the section which requires Only 40 per cent. of the capital stock to be paid in. He ays that $25,000 is the minimum which must be subscribed, it is possible to start a bank with $19,000, He suggests that it be required that 50 per cent. of the capital stock be paid in at the start and the remainder to be paid at the rate of 10 per cent. per month. All banks not now having their capital stock fully paid should be given one year's time in which to meet the proposed requirement. It is also recommended that state banks and Institutions should be limlted in making loans to individuals, firms and Corporations 20 per cent. of their capital stock Another one of his recommendations is that the commissioner, with the approval of the governor. have the power to place the affairs of any bank or institution under his jurisdiction in the hands of a receiver, the receiver to be ramed by the commissioner. The report shows several changes during the year. The Mutual bank, or Cairo, was absorbed by the Bank of Cairo, and the Little Kanawha bank of Glenville, was aborbed by the Kanawha Union bank of the same place. The Commercial bank, of Bluefield, went into involuntary liquidation and banks at Horton and Smithfield were closed by the commissioner on account of the alleged gross irregularities.

2. July 30, 1908 The Clarksburg Telegram Clarksburg, WV
Article from The Clarksburg Telegram, July 30, 1908

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Article Text

In an Effort to Straighten Out the Affairs of Smithfield Bank. NEW MARTINSVILLE, July 24One of the first suits to be filed for the Smithfield bank was filed in the circuit court by Cecil B. Highland, reciver of the bank, against H. L. Smith, of Smithfield, and at one time one of the largest and wealthlest independent oil operators in the county. The bill of complaint cites that Smith is indebted to the bank in the sum of $23,973.95, less $1,505.30, as endorser and guarantor ond principal for other debts and for which he is lable to the extent of $5,808.75, as evidenced by promissory notes. To identify and secure the Bank of Smithfield, which was forced to close its doors some time ago, Smith and his wife on September 12, 1907, made executed and delivered to the defendant, William Carlin, prsident of the bank, a certain deed of conveyance for the consideration of $1, and other valuable considerations to ten different tracts or parcels of land. The plaintiff would show that the said deed while absolute in form on its face, was in fact executed and delivered by Smith to Carlin as a mortgage for the purpose of securing and indemnifying the Bank of Smithfield against any loss that it might sustain by reason of the money loaned to Smith. It is cited in the deed that the property is conveyed for the sole and only purpose of securing the Bank of Smithfield in the payment of $10,500. Carlin was to permit Smith to remain in possession of the real estate and to collect the rents derived from agricultural and other leases thereon, and apply said rent to the discharge of said note and interest. Carlin was to sell all the oil produced from said real estate and apply said sales of oil to the payment of the notes. The land is now under lease to the South Penn Oil Company. and the oil has been run into the lines of the Eureka Pipe Line Company. Receiver Highland petitions that Henry L. Smith. the Bank of Smithfield, William Carlin, the South Penn Oil Company and the Eureka Pipe Line Company be inhibited, restrained and enjoined from delivering any of the royalty oil produced to H. L. Smith or William Carlin; that a receiver be appointed to take, receive and sell said oil and to hold same subject to the order of the court. The plaintiff understands that the land has never been sold or the profits from the sale of the oil applied to the discharge of the notes. Receiver Highland prays that a decree be granted against Smith for the amount of the indebtedness to the bank, that the mortgage be foreclosed and that the land be sold, or as much of it as will satisfy the claim of the bank. The tracts of land under mortgage are very valuable and have a number of producing wells upon them. Every effort is being made by Receiver Highland to straighten out the affairs of the closed institution and a number of other suits ar contemplated if the claims are not satisfied in the near future. It will be weeks before the bank will open its doors

3. September 14, 1908 The Daily Telegram Clarksburg, WV
Article from The Daily Telegram, September 14, 1908

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Article Text

SWEET MELODY FLOUR NOTICE OF PUBLIC SALE OF VALUABLE NOTES On Tuesday, the 22nd day of September, 1908, at 1 o'clock p. m., of that day, the undersigned will offer for sale, at public auction, to the highest bidder, at the front door of the court house of Harrison county, in the City of Clarksburg, Harrison County, West Virginia, the following notes, to-wit: Three notes of one thousand dollars each, dated May 25th, 1906, made by Wm. F. Baird, with interest on each thereof from date at the rate of six per centum per annum, two of which said notes are payable to Jasper S. Kyle and one of which is payable to Alber v. Van Osten, two of said notes being due and payable in twelve months from date and one in twenty-four months from date: all of said notes are secured by a vendor's lien on certain coal and mining rights and privileges, in payment of which said notes, were made. Terms of Sale:-Cash in hand on the day of sale. CECIL B. HIGHLAND, Receiver of the Bank of Smithfield.

4. September 15, 1908 The Daily Telegram Clarksburg, WV
Article from The Daily Telegram, September 15, 1908

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Article Text

SWEET MELODY FLOUR. NOTICE OF PUBLIC SALE OF VALUABLE NOTES On Tuesday, the 22nd day of September, 1908, at 1 o'clock p. m., of that day, the undersigned will offer highest for in the the court sale, City bidder, at house of public at Clarksburg. of the Harrison auction, front Harrison door county, to the of County, West Virginia, the following notes, to-wit: Three notes of one thousand dollars each, dated May 25th, 1906, made by Wm.' F. Baird. with interest on each thereof from date at the rate of six per centum per annum, two of which said notes are payable to Jasper S. Kyle and one of which is payable to Alber v. Van Osten, two of said notes being due and payable in twelve months from date and one in twenty-four months from date; all of said notes are secured by a vendor's lien on certain coal and mining rights and privileges, in payment of which said notes were made. Terms of Sale:-Cash in hand on the day of sale. CECIL B. HIGHLAND, Receiver of the Bank of Smithfield.

5. September 16, 1908 The Daily Telegram Clarksburg, WV
Article from The Daily Telegram, September 16, 1908

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Article Text

SWEET MELODY FLOUR. NOTICE OF PUBLIC SALE OF VALUABLE NOTES On Tuesday, the 22nd day of September, 1908, at 1 o'clock p. m., of that day, the undersigned will offer for sale, at public auction, to the highest bidder, at the front door of the court house of Harrison county. in the City of Clarksburg, Harrison County, West Virginia, the following notes, to-wit: Three notes of one thousand dollars each, dated May 25th, 1906, made by Wm. F. Baird, with interest on each thereof from date at the rate of six Deri centum per annum, two of which said notes are payable to Jasper S. Kyle and one of which is payable to Alber v. Van Osten, two of said notes being due and payable in twelve months from date and one in twenty-four months from date; all of said notes are secured by a vendor's lien on certain coal and mining rights and privileges, in payment of which said notes were made. Terms of Sale:-Cash in hand, on the day of sale. CECIL B. HIGHLAND, Receiver of the Bank of Smithfield.

6. September 23, 1908 The Daily Telegram Clarksburg, WV
Article from The Daily Telegram, September 23, 1908

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Article Text

SWEET MELODY FLOUR, NOTICE OF PUBLIC SALE 01 VALUABLE NOTES On Tuesday, the 22nd day of September, 1308, at 1 o'clock p. m., of that day, the undersigned will offer for sale, at public auction, to the highest bidder, at the front door of the court house of Harrison county, In the City of Clarksburg, Harrison County, West Virginia, the following notes, to-wit: Three- notes of one thousand dollars each, dated May 25th, 1906, made by Wm. F. Baird, with interest on each thereof from date at the rate of six per centum per annum, two of which said notes are payable to Jasper S. Kyle and one of which is payable to Alber v. Van Osten, two of said notes being due and payable in twelve months from date, and one in twenty-four months from date; all of said notes are secured by a vendor's lien on certain coal and mining rights and privilèges, in payment of which said notes were made. Terms of Sale:-Cash in hand on the day of sale. CECIL B. HIGHLAND, Receiver of the Bank of Smithfield.

7. January 28, 1909 The Daily Telegram Clarksburg, WV
Article from The Daily Telegram, January 28, 1909

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SPECIAL GRAND JURY Is Convened at New Martinsville in the Robinson Forgery Case. NEW MARTINSVILLE. Jan. 28A special grand jury was convened to day to investigate the charges of for gery pending against John S. Robinson. a prominent citizen of the county. who resides in the neighborhood of Smithfield. It appears that on the trial of the case of C. B. Highland, receiver of the Bank of Smithfield, against W. A. Lewis et. al., for a recovery of money on the bond of Lewis as cashier of the defunct bank. Mrs. L. G. Robinson desired to enter a plea denying her signature to the bond. The bond contained her name and J. S. Robinson's affidavit makes it appear that the signature was placed on the instrument by him. On motion of one of the attorneys, the court ordered him arrested and he was held under $5,000 to answer the action of the grand jury. A special grand jury was then ordered to be convened. as above stated.

8. January 29, 1909 The Fairmont West Virginian Fairmont, WV
Article from The Fairmont West Virginian, January 29, 1909

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Article Text

INVESTIGATING BANK FAILURE SPECIAL GRAND JURY IN WET. ZEL COUNTY MAY BRING IN INDICTMENTS. NEW MARTINSVILLE. W. Va. Jan. 29.-The special grand jury in the circuit court Is investigating the anffirs of the. Bank of Smithfield prior to its failure and will propably be in session IL day or two longer A large number of witnesses are being examined and the Investigation will he a thorough one. Judge Willis gave especial charges to the grand jury on the subjects of perjury, false swearing, forgery, making false entries in the books of the bank, etc., and drew special attention to sundry affidavits of John S. Robinson, one of which contains the statement that he signed the name of L. G. Robinson to the bond of W. A. Lewis as cashier of the bank without her authority to do so. This fact was brought out in the case of Cecil B. Highland, receiver of the bank, in an action for the recovery of money on. alleged shortages, Mrs. Robinson filing R plea that she did not sign the bond," and supporting the plea with the affidavit above referred to.

9. November 10, 1913 The Daily Telegram Clarksburg, WV
Article from The Daily Telegram, November 10, 1913

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Article Text

BANK CREDITORS And Paid in Full by Cecil B. Highland, Receiver of the Smithfield Bank. CHARLESTON, Nov. 10.-Banking Commissioner S. V. Matthews has returned from New Martinsville, where he had been looking after the affairs of the Bank of Smithfield which went into the hands of the receiver May 20, 1908, Cecil B. Highland was appointed receiver and during his service as such he has paid the creditors several dividends, and at present is closing up the final accounts against the bank. The creditors were paid in full and much credit is due Mr. Highland, who devoted his time to straightening out the affairs of the bank. It was placed in the hands of a receiver because of bad management and the fact that the oil business in that section of the state dropped suddenly.