Bank of Mecklenburg (Boydton, VA)

Episode Information

Episode UID
2706074091300
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
270607409 hash
Start Date
April 4, 1908
Location
Boydton, Virginia (36.668, -78.387)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
f9f51bc83514485b

Response Measures

None

Events (2)
1. April 4, 1908 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure/embarrassment traced to large loans and exposure to East Coast Lumber Company and massive unauthorized overdrafts by the cashier (approx. $120,000).
Newspaper Excerpt
the Bank of Mecklenburg, which institution closed its doors this morning.
Source
newspapers
2. April 22, 1908 Receivership
Newspaper Excerpt
The receivers qualified yesterday and have taken charge of the bank.
Source
newspapers

Newspaper Articles (17)
1. April 15, 1908 The Washington Herald Washington, DC
Article from The Washington Herald, April 15, 1908

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VIRGINIA BANK CLOSES. Institution at Boydton Placed in Hands of State Officials. Special to The Washington Herald. Richmond, Va., April 4.-The State corporation commission this afternoon directed H. B. Boudar, expert accountant, to proceed at once to Boydton and Chase City to examine into the affairs of the Bank of Mecklenburg, which institution closed its doors this morning. C. J. Faulkner, president of the bank, yesterday telegraphed the commission, requestioning an examiner, but it was not then intimater that the embarrassment would necessitate suspension. It is presumed that the bankruptcy proceedings against the East Coast Lumber Company is the cause of the embarassment of the Bank of Mecklenburg. The report submitted to the commission by the bank, of February 4, indicated a healthy state of affairs. The Mecklenburg Bank, located at Boydton, operates a branch at Chase City, It is not anticipated that any suspicion of fraud will be attached to the proceedings.

2. April 17, 1908 The Pensacola Journal Pensacola, FL
Article from The Pensacola Journal, April 17, 1908

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HIS KINDNESS BROKE A BANK Cashier Permitted Firm to Overdraw Its Account For $100,000. Special to The Journal. Boydton, a., April 16.-An investigation by the board of directors of the affairs of the Bank of Macklenburg, suspended Tuesday, shows a shortage of $125,000. E. W. Overby, the cashier, has been arrested upon the confession that he allowed B. E. Cogbill, head of the East Coast Lumber company, which is now in bankruptcy, to overdraw his account with. out the knowledge of the president or directors for more than $100,000. The cashier explains that he did this as an act of kindness to Cogbill and without any benefit to himself. It is generally thought that the depositors will receive between 50 and 75 cents on the dollar. Overby has been released on $5,000 bail bond. Expert accountants are now making a thorough examination of the books of the bank. C. J. Faulkner and Lucius Gregory, president and vice-president, respectively, of the closed bank, and J. Edmondson, a merchant. have been appointed receivers for the embarrassed institution. Overby said the shortage had been going on several years: that he had let Cogbill have the money from time to time, hoping that each amount would relieve his embarrassment and he could then return it to the bank. Yesterday he confessed that he had concealed the matter from the president and the board and expressed great contrition for his act.

3. April 19, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, April 19, 1908

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MR. FAULKNER DECLINES Will Not Serve as Receiver of Bank of Which He was President. [Special to The Times-Dispatch.] BOYDTON, VA., April 18.-The expert accountants sent out from the Corporation Commission to examine the affairs of the Bank of Mecklenburg are still at work, and have given out no statement as to the result of their oxamination, and will not do so until they can communicate with the bank's correspondents and have their own statement verified. Mr. C. J. Faulkner, who was appointed one of the receivers of the bank. has declined to serve, and a petition has been numerously signed asking Judge Barksdale to appoint Mr. a. Haskins, who was the cashier of

4. April 23, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, April 23, 1908

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EXPERTS ARE STILL AT WORK. Have Not Tet Completed Examination of Books. New Receiver. [Special to The Times-Dispatch.] BOYDTON, VA., April 22.-There are no new developments in the matter of the Bank of Mecklenburg. The three expert accountants are still at work, and have not yet given out when they will complete their report. They are giving the books a thorough examination, and have been ever since last Friday closely confined in the bank building at work. Judge Barksdale has appointed Mr. C. T. Reekes, a prominent lawyer of this bar, one of the receivers. The judge appointed Mr. J. W. Edmondson last week. The receivers qualified yesterday and have taken charge of the bank.

5. April 24, 1908 Clinch Valley News Tazewell, Jeffersonville, VA
Article from Clinch Valley News, April 24, 1908

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RECEIVERS NAMED FOR MECKLENBURG BANK Circuit Judge Barksdale has named as the receivers of the Bank of Mecklenburg Messrs. C. J. Faulkner and J. W. Edmondson, who before the institution became involved by its dealings with the Cogbill and East Coast Lumber Company were respectively president and vice president of the bank, Both receivers are men of high stand+ ing and ability, and the interests of the stockholders and others will be safe in their hands. Messrs. H. B. Boudar, Thomas Boudar and Bertram Chesterman, the expert accountants sent by the State Corporation Commission to examine the books of the bank, arrived at Boydton Wednesday morning and are now at work. It will require several days for them to get at the true inwardness of the situation. though Cashier Overbey, now under arrest, already has admitted that he made unauthorized loans of more than $100,000 to B. E. Cogbill and the East Coast Lumber Company, with which the latter was subsequently connected. The Bank of Mecklenburg, which has a branch office at Chase City, was established by the late George B. Finch in 1872, and for years was managed with signal success. Its closing has caused great distress and the gravest apprehensions among all classes of people.

6. April 25, 1908 Virginia Gazette Williamsburg, VA
Article from Virginia Gazette, April 25, 1908

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RECEIVERS NAMED FOR MECKLENBURG BANK Circuit Judge Barksdale has named as the receivers of the Bank of Mecklenburg Messrs. C. J. Faulkner and J. W. Edmondson, who before the institution became involved by its dealings with the Cogbill and East Coast Lumber Company were respectively president and vice president of the bank, Both receivers are men of high stand. ing and ability, and the interests of the stockholders and others will be safe in their hands. Messrs. H. B. Boudar, Thomas Boudar and Bertram Chesterman, the e%pert Accountants sent by the State Corporation Commission to examine the books of the bank, arrived at Boydton Wednesday morning and are now at work. It will require several days for them to get at the true inwardness of the situation. though Cashier Overbey, now under arrest, already has admitted that he made unauthorized loans of more than $100,000 to B. E. Cogbill and the East Coast Lumber Company, with which the latter was subsequently connected. The Bank of Mecklenburg, which has a branch office at Chase City, was established by the late George B. Finch in 1872, and for years was managed with signal success. Its closing has caused great distress and the gravest apprehensions among all classes of people.

7. April 26, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, April 26, 1908

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IN THE DARK AS TO AFFAIRS OF BANK Boydton Institution' Closed Two Weeks, but Creditors Do Not Know Conditions. [Special to The Times-Dispatch.] BOYDTON, VA., April 25.-The meetIng of the creditors of the Bank of Mecklenburg. held here yesterday. accomplished but little, If anything, in the way of adjusting the tangled affairs of the bank. The plan of the creditors was to try and secure control of the management of the bank, through Judge Barksdale. and instead of the receivers, to substitute a committee of their own, who would undertake the work for less than the amount allowed the receivers, and then authorize the committee to employ counsel. at a contract price, and in this way to largely reduce the cost of administration and settle up the business at an earlier date: but there are so many creditors, who entertain different views, which must be reconciled. and, again. there are so many fiduciaries and public officers whose trust funds are in this bank, who do not feel authorized to make any concessions or compromises. unless it is sanctioned by the court. that it would seem at present impossible to accomplish the ends for which this meeting was called. The meeting appointed a committee of seven to confer with the creditors and get them to pool their Interests, and all work together for their common good, The most level-headed men among the creditors see the insurmountable difficulties in the way of carrying out this plan, and believe that, after all, it is best to let the regularly appointed receivers go on with their work under the watchful eye and supervision of Judge Barksdale, who has given assurance that he will guard closely the interests of the depositors and have

8. May 5, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, May 5, 1908

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COGBILL SUED BY COMMONWEALTH Bill Alleges That Former Treasurer of Mecklenburg Failed to Turn in All Revenue. Acting for the Commonwealth of Virginia, Attorney-General Anderson filed suit in the City Circuit Court yesterday against B. E. Cogbill, former treasurer of Mecklenburg county, and the American Bonding Company, of Baltimore, for $4,411.69, alleged to be the balance due the State for revenue collected in 1907 and still unpaid. Cogbill, the defendant, is president of the East Coast Lumber Company, recently placed in the hands of receivers by order of the United States Court. Following the receivership proceedings. the Bank of Mecklenburg. at Boydton, and its branch at Chase City, failed, the general statement being that they held a large amount of the lumber corporation's paper. It is alleged in the memorandum filed yesterday that the amount which the Commonwealth seeks to recover was collected and not turned in to the treasury.

9. May 6, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, May 6, 1908

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BANK'S LOSS HAS BEEN MADE UP Friends of Cashier Haskins, of Chase City Branch, Put Up the $27,000 Allowed Overdrawn. [Special to The Times-Dispatch.] BOYDTON, VA., May 6.-The shortage in the branch of the Bank of Mecklenburg at Chase City, amounting to about $27,000, caused by overdrafts of the Kershaw Manufacturing Company, has been raised by the friends of Cashier Haskins, and as far as the branch bank is concerned, the assets will pay its full quoto of the liabilities of the two banks. At the mother bank, which was located here, nothing has been done in the way of raising the shortage. The amount is so large that It looks as if Cashier Overby's friends are overwhelmed. The committee of seven appointed by the creditors, which met here last week, appeared to have some plan looking to a satisfactory settlement of the bank's matter, but they did not give it out, as their plans had not sufficiently matured. The committee will meet here again on the 11th of this month to report to the creditors any plan they may have to offer for the benefit of depositors. There has been little else talked about here but the bank trouble for three weeks. The people of Mecklenburg have acted most nobly during these trying times and they deserve much credit for their conservatism. There are some ten or eleven banks in this county, and there has been no attempt to make a run on any of them since the downfall of the mother of banks of the county. It is said that a few, under the spur of the moment, drew out their deposits, but since then have returned them to the bank.

10. May 12, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, May 12, 1908

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AFFAIRS OF THE BANK. Mr. Thorpe Suggests Plan to Displace Receivers and Settle Up. [Special to The Times-Dispatch.] BOYDTON, VA., May 11.-The committee of the Bank of Mecklenburg met here this afternoon, but owing to the fact that Mr. Boudar's report has not been made public, they were unable to suggest any plans. Hon. R. T. Thorpe, who is a large creditor, was present, and suggested, for the purpose of taking the matter out of the hands of the receivers and have a more economical administration, that the depositors relinquish their claims to the amount of 50 cents on the dollar; demonstrating to the court the solvency of the bank under this plan; that a committee of three of the creditors take charge of the bank with a president and directors to close the affairs of the bank and pay to the depositors all amounts realized pro rata, and whatever may be collected over and above 50 per cent. to be paid to the creditors, thus extending the debtor class time to raise the money to pay off their notes. Under this plan Mr. Thorpe thought the whole matter could be closed up in two years. The committee adjourned to meet again in this place on the 30 instant.

11. May 31, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, May 31, 1908

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CREDITORS DO NOT AGREE Affairs of Mecklenburg Bank Still Puzzle Creditors and Depositors. BOYDTON. VA., May 30.-The committee appointed by the creditors of the Bank of Mecklenburg to try and devise plans to save as much expense as possible in the administration of the bank's affairs, will meet here to-day. From those in a position to know it is learned that the committee is 50 far unable to suggest any plan likely to be adopted by the creditors. Indeed, the matters of the bank have been so advanced by the receivers appointed by the Circuit Court that it seems a difficult task to recommend any feasible plan at this late date. Special Commissioner Marvin Smithey has gone to Chase City to make a report for the Circuit Court on the af-

12. May 31, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, May 31, 1908

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PROOF OF CLAIMS AGAINST THE BANK [Special to The Times- Dispatch.] CHASE CITY, VA, May 30.-Commissioner Marvin Smithey is here get. ting proof of all claims against the Chase City branch of the wrecked Bank of Mecklenburg. James W. Edmundson and Charles T. Reekes, receivers, are also present. All of these gentlemen are courteous, industrious and well suited for their arduous task. Judge Barksdale made wise selection in appointing them. Many country creditors of the bank have been here, and they take the situation with a complacency that is as commendable as it is remarkable. It seems to be conceded that by good and economical management the assets may eventually pay 50 cents on the dollar to depositors. No one claims more, but it is all conjecture. The loss here will be small in comparison with the mother bank at Boydton. In fact, it is scarcely noticeable in the town. There are few debtors of consequence here to the bank. Business progresses as usual, buildings going up, granolithic walks put down, and new enterprises contemplated. Many say the Mecklenburg bank did not have all of the money in the county "by a long shot." Some expect a small dividend will be paid at the June term of court. but one who should know told The TimesDispatch correspondent that this was very doubtful. Report says that some depositors drew out their balances before the suspension, apprehending danger. and had an inkling of impending disaster from the Cogbill entanglements; so it did not come as "a flash of lightning in a clear sky." as once reported. There are many mysteries connected with the financial catastrophe.

13. June 5, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, June 5, 1908

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Mr. C. T. Reekes, a prominent lawyer of Boydton, and one of the receivare of the Bank of Mecklenburg, which recently failed, was in the city yesterday, and was a caller at the office of the Corporation Commission. Mr. Reekes said there were no new developments in the receivership matter. Prominent Southwest Virginians who

14. June 26, 1908 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, June 26, 1908

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Virginia News. Miss Mary E. Sangster, sister of the late Judge James Sangster, of Fairfax, died at Ashland, on Monday last. The conference of the High School and College Association of Virginia met at the University of Virginia today and will continue through tom rrow. W. J. Quick, who succeeded Prof. A. M. Soule in charge of experimental work at the V. P. I. st Blacksburg, has tendered his resignation to take effect September 1. Mrs. E. P. Winston, of Hanover county, sister of Mrs. General Thomas L. Rosser, of CharJostesville, died yesterday at the University of Virginia Hospital, where she had been under treatment for two weeks. A piece of white oak, weighing twenty pounds, cut near Jefferson's home, "Monticello," was sent by express to Mr. Bryan. From this piece of oak will be made the gavel which will open the democratic national convention at Denver. Miss Eliza Lippet, daughter of the late Dr. C. E. Lippett, was married at her home at "Elmington," near Berryville, Wednesday night, to Bertram Fox, of London, England. Owing to the recent death of the bride's father the ceremony was very quiet. After the honeymoon in Canada the couple 8 will sail for London, their future home. The grand jury of the county circuit court at Boydtown, Va., yesterday afternoon reported five indicuments against E. W. Overbey, former cashier of the closed Bank of Mecklenburg. The jury last night returned four indictments against C. Haskins, assistant cashier of the branch bank at Chase City. A shortage of $120,000 of the funds of the Mecklenburg bank is alleged. At Carter's Run Bapt'st Church, Fauquier county yesterday, Miss Lucy Marshall Holtzclaw and Mr. Lindsay Crawley were married. The bride's attendants were Miss Claude McLaughlin, of f Americus, Ga.: Miss Grace Jones, of Doe Hill, Va.; Miss Grace Brooks, of Leesburg, Va., and Miss Lily Powers, of White Post, Va. The best man was Dr. R. M. Grimm, of Baltimore, and the ushers were Mr. V. H. Kellam, of e Norfolk; Prof. Le Roy Buckingham, of Warren, Obio, and Prof. R. J. Brandeng burg, of Morgan, Md. Tne ceremony was performed by Rev. F. R. Boston. The bride is the only child of Mr. and r Mrs. C. E. Holtzclaw. Mr. Crawley is 8 president of the State Agricultural College of Georgia, The annual meeting of the Virginia Bar Association will be held this year at Hut Springs, August 4 to 6, inclusive, d Secretary of War Taft will make the annual address, but his subject has not yet been stated. Other speakers will be Wyndham R. Meredith, president of the association, on "Federal Control of Intrastate Commerce;" William Lindsay, former United States Senator from Kentucky, on "The Man and the Corporation; Holmes Conrad, of Winchester, on "The Old Virginia County Court;" A. C. Gordon, of Staunton, on "The Legal Foundations of Socialism," and H. C. McDowell, judge of the United States District Court for Western district of Virginia, on "Some Misconceptions as to Federal Precedent."

15. July 23, 1908 The Times Dispatch Richmond, VA
Article from The Times Dispatch, July 23, 1908

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SUE FORMER CASHIER Receivers of Bank of Mecklenburg Bring Action Against Overbey. [Special to The Times-Dispatch. ] BOYDTON, VA., July 22.-The receivers of the Bank of Mecklenburg have instituted suit against E. W. Overbey, late cashier of that institution, for the sum of $160,000. ,The writ tax alone Is $160. The institution of this suit would appear almost useless, since Mr. Overbey's property is all now heavily mortgaged, but the receivers have been advised by their attorneys to pursue this course, so as to get the business matters of the bank in proper shape and to require the holders of the mortgages to close them out and pay over any balance left to them, and also to protect the receivers from any liability in the matter in future.

16. January 11, 1910 The Times Dispatch Richmond, VA
Article from The Times Dispatch, January 11, 1910

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DIVIDEND TO DEPOSITORS. Bank of Mecklenburg Makes 10 Per Cent. Payment. Boydton. Va., January 10.-The receivers of the Bank of Mecklenburg are preparing to make another distribution of the assets of the bank. This time 10 per centum will be paid. One of the attorneys for the bank, when asked as to the probable amount the creditors would receive from the entire assets of the bank. replied, "About 40 per centum."

17. June 14, 1912 The Times Dispatch Richmond, VA
Article from The Times Dispatch, June 14, 1912

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Depositors Lose. Norfolk, Va., June 13.-By the decision of the Supreme Court at Wytheville to-day, the depositors of two failed banks, the Traders and Truckers, at Norfolk, an dthe Bank of Mecklenburg. at Boydton, Va., lost in actions brought against directors of the defunct institutions for alleged neglect of duty. In both cases depositors had sued the directors on their own account. The court held that suit should have been brought by trustees and receivers, respectively. for the benefit of the trusts, and that depositors had no right to sue personally until they had applied in court to have the trustees and receivers sue and the latter had declined so to do. In the case of the Bydton failure, It was said to-day that the statute of limitations would prevent any new suit.