Enterprise Bank (Charleston, SC)

Episode Information

Episode UID
67001371462
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
6700137 routing
Routing Number
67-0013
Start Date
October 1, 1921*
Location
Charleston, South Carolina (32.777, -79.931)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
9edfe168c30f4c78

Response Measures

None

Description

Closure followed an examiner takeover, temporary reopening under pledges, then permanent liquidation; some dates (reopening/permanent closing) are imprecise in articles.

Events (4)
1. October 1, 1921* Run
Cause
Correspondent
Cause Details
Bank of Charleston ceased clearing for the Enterprise, impairing credit and triggering withdrawals
Measures
Sought loans from local banks; W. King McDowell loaned $10,500 to tide over withdrawals
Newspaper Excerpt
The run on the Enterprise Bank started, Harvey said, when a woman depositor withdrew a large amount, being followed quickly by others
Source
newspapers
2. November 1, 1921* Reopening
Newspaper Excerpt
After an investigation the examiner authorized the reopening of the bank, most of the depositors having signed pledges not to withdraw their moneys for a year in order to give the bank an opportunity to re-establish itself.
Source
newspapers
3. November 1, 1921* Suspension
Cause
Government Action
Cause Details
Board decided to close and called the state bank examiner who took charge (examiner suspension/close)
Newspaper Excerpt
State Bank Examiners are Busy at the Enterprise Bank, Auditing Books of That Suspended Institution.
Source
newspapers
4. November 1, 1922* Other
Newspaper Excerpt
When the year was nearly up the bank was closed permanently and the process of liquidation begun. So far the liquidating agents have arranged one dividend of 5 per cent. for depositors.
Source
newspapers

Newspaper Articles (9)
1. November 10, 1921 Cheraw Chronicle Cheraw, SC
Article from Cheraw Chronicle, November 10, 1921

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DREAT TRUCK FARM NEAR CHARLESTON AN AMERICAN FRUIT GROWERS COMPANY PLANS TO PLANT EIGHT HUNDRED ACRES. THIRTY GOVERNORS EXPECTED State Bank Examiners are Busy at the Enterprise Bank, Auditing Books of That Suspended Institution. Charleston. - Announcement was made that the American Fruit Growers, Inc., planned to plant 800 acres in truck at Daniel's Island, near Charleston, this spring. Of this extensive area, 500 acres wil be used for early potatoes, 250 for cabbages and 50 for cucumbers. Local arrangements are being made for the entertainment of the governors at their convention here in December, and Governor Cooper, the official host, will be accorded every cooperation on the part of the city and chamber authorities in entertaining the distinguished visitors. Some 30. governors are expected, and as many or more others in the party. State Bank Examiner J. H. Craig, with three assistants, was busy at the Enterprise bank, auditing the books of this institution, which closed its doors. No statement is yet available on the condition of the bank, but strong hope is held by its many depositors that they will be largely reimbursed. A total registration of 5,275,275 for the municipal elections has been made, this combining the registrations of 1919 and 1921.

2. November 25, 1923 The Greenville News Greenville, SC
Article from The Greenville News, November 25, 1923

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J. O. U. A. M. TO HOLD MEET TODAY Mendenhall To Address Get-Together Meeting At Brandon. A get-to-gether meeting of the Junior Order, United American Mechanics at which Greenville, Pickens and Anderson counties will be represented will be held this afternoon at 3 o'clock in the Brandon Methodist church. The meeting will be marked by the address of L. D. Mendenhall, of Greensboro, N. C., past national deputy councilman of the order. Mr. Mendenhall recently addressed the Butler Council of the order and his speech was so enjoyed that members persuaded him to return and address a larger gathering. It was said yesterday that a number of high state officials would attend the meeting. An open invitation is extended to all members of the order. fecting his assets. Until October 1921, he had not considered the solvency or the insolvency of the bank he said. He discussed the method of doing business through the Bank of Charleston. Thursday, October 27, he asked the Bank of Charleston for a loan of $10,000 but that this was denied. General Henry Schachte, president of the Atlantic National and Savings Banks also refused to make a loan on the collateral Harvey had with him. R. Goodwyn Rhett, president of the People's National Bank, and W. King McDowell, president of the Exchange Bank and Trust company extended aid, Harvey said. Harvey said that he had received a letter from the Bank of Charleston, a duplicate of that sent to other banks, in which the Bank of Charleston said that it was no longer clearing for the Enterprise. This letter Harvey said, seriously impaired the credit of the Enterprise Bank. The run on the Enterprise Bank started, Harvey said when a woman depositor withdrew a large amount, being followed quickly by others, many checks for Enterprise Bank deposits being drawn through other institutions. He then sought to get immediate funds to tide over the run. W. King McDowell made a loan of $10,500. This sufficed through other banks. In the evening he consulted with McDowell and Rhett, deciding to see whether the run had stopped. Tuesday morning a board meeting was called and the decision reached to close the bank and call the examiner to take charge. He said that it was believed that the Enterprise Bank could have been reestablished but for other bank failures here. R. Goodwyn Rhett, president of People's National Bank and former president of the Chamber of Commerce of the United States, said, on the stand, answering a question by Solicitor Stoney, that the federal law on bank examining was stricter than the state's and that the federal had stronger teeth in it.

3. November 25, 1923 The Index-Journal Greenwood, SC
Article from The Index-Journal, November 25, 1923

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TOWNSEND CHARGES NOT SUBSTANTIATED OFFICER DECLARES General Hines Refutes Allegations as to Veteran's Bureau Washington, Nov. 24.—Charges of efficient administration and favoritism in personnel appointments filed by Dr. M. L. Townsend, former medical officer at the Charlotte, N. C., sub-district office against M. Bryson, district manager of district No. 5 of the Veterans' Bureau with headquarters at Atlanta, Ga., were declared today to be unsubstantiated and without foundation by General Frank T. Hines, director of the bureau. An investigation of the conditions in the Charlotte office was recently made by a representative of the inspection service. Dr. Townsend, who preferred the charges, the director said, was discharged from the Veterans' Bureau last May on account inefficiency in that he had permitted excessive medical expenses to be incurred, and that his services were generally unsatisfactory. Dr. Townsend's statement that veterans suffering from tuberculosis wasted valuable time before being admitted to hospitals, also was declared to be unfounded and Dr. Townsend or any one else has not presented to the bureau any specific case of neglect. Jury Clears Cheek Of Murder Charge In Anderson Court Anderson, S. C., Nov. 24.—There was an affecting scene in general sessions court at 9 o'clock tonight when, after three hours deliberation, the jury found Frank Cheek, a young man of Portman Shoals, not guilty of the murder of Lacey Fuller. T. R. Cheek, father of the defendant, to whose assistance young Cheek went at the time he felled Lacey Fuller with a heavy iron bar last October, as soon as the words "not guilty" saluted his ears, cried out, "come here Frank." He then embraced his son and wept freely. The few spectators present when Deputy Clerk Bogue Young received and read the verdict were also visibly affected, and some of the jurors, with whom the elder Cheek shook hands, were seen to wipe their eyes. The trouble which led to this killing arose over damage to the crop of T. R. Cheek by a hog owned by Lacey Fuller. Hot words over Fuller's proffered money settlement led to an exchange of blows. Testimony showed that an iron bar, which Fuller had picked up was knocked from his hand by Mr. Cheek, and he was reaching for another similar weapon when Frank Cheek ran up, picked the bar which Fuller had dropped, and struck the latter over the head. Fuller fell dying into the arms of his mother, who was trying to separate the fighters, and she was bespattered with his blood. Frank Cheek, who took the stand in his own defense as the last witness heard, made his plea to the jury that he acted on the spur of the moment in defense of his father, whom he believed to be in danger of his life. Trinity Blue Devils Win Over Newberry Durham, N. C., Nov. 24.—In a game marked by hard fighting throughout, the Trinity Blue Devils closed the home schedule for the football season this afternoon by defeating the Newberry College team by the score of 20 to 14. The game was slowed somewhat by a muddy field. A run of 58 yards by Shipp, for Trinity, gave the locals a seven to nothing lead over the visitors in the first quarter. The visitors failed to score until the fourth quarter when they scored two touchdowns. They took advantage of the slow passing of Trinity and this enabled them to stage their rally. Convicts Eight Men On Whiskey Charges Savannah, Ga., Nov. 24.—Eight men charged with conspiracy to violate the national prohibition law were found guilty by a jury in the United States court here late tonight. The convicted men will be sentenced next week. They are William H. Haar, Fred H. Haar, Fred H. Haar, Jr., Carl Haar, Charles Mell, Charles Barbour, Buck Walker and Johnny Harris. Notre Dame Gets Game. Pittsburgh, Pa., Nov. 24.—Notre Dame's famous football team made Carnegie Tech its victim at Forbes field today, the final score being 26 to 0. The visitors scored one in each period and scored the extra points after the first two touchdowns. HARVEY JURY UNABLE TO AGREE ON VERDICT Charleston, S. C., Nov. 24.—At 11:16 o'clock tonight Circuit Judge I. W. Bowman discharged the jury in the case against former Governor Wilson G. Harvey charging him with accepting deposits when the Enterprise Bank of which he was president was insolvent, and declared a mistrial, the jurors having failed to agree. The jury retired at 5:35 o'clock to deliberate. The jury came down about 6:30 o'clock for instructions from Judge Bowman and for information with respect to W. King McDowell's testimony. About 7:30 o'clock, County Sheriff Joseph M. Poulnot escorted the jury to supper. When the judge declared a mistrial, Harvey was in the courtroom, attended by counsel. He was released under bond. It is probable that Solicitor Thomas P. Stoney's successor will name the time for the next trial of this case. It was announced tonight that Harvey and his brother H. Lee Harvey will be tried Monday in the court of general sessions on charges of loaning more than ten per cent of the capital and surplus of the Enterprise Bank in which the former was president and a director and the latter a director to a concern in which they were interested. Harvey, the defendant, took the stand, in the afternoon, giving a history of the Enterprise, of which he was president from 1904, having been cashier before that time. It had grown from a small institution into an influential one, being in the high tide of its success in 1920. He discussed the methods of the State Bank examiner's office. After receiving the bank examiner's report in 1920, Harvey said, he remarked that past due amounts were placed in a doubtless column and then transposed into a worthless column. Harvey labeled this as ridiculous. Having received no letter from the bank examiner, Harvey said that he presumed that the examiner also felt that the report was misleading. Harvey said that loans to the Consolidated Auto and Truck Company were made after the practice of banks throughout the country, saying that the automobile business was the second largest in the United States. After the 1920 report, Harvey said that curtailment of deposits came with current depression and that in the fall of 1921 he borrowed $30,000 from the Bank of Charleston without affecting his assets. Until October, 1921, he had not considered the solvency of the bank he said. He discussed the method of doing business through the Bank of Charleston. Thursday, October 27, he asked the Bank of Charleston for a loan of $10,000, but that this was denied. General Henry Schachte, president of the Atlantic National and Savings Bank, also refused to make a loan on the collateral Harvey had with him. R. Goodwyn Rhett, president of the People's National Bank, and W. King McDowell, president of the Exchange Bank and Trust Company, extended aid, Harvey said. Harvey said that he had received a letter from the Bank of Charleston, a duplicate of that sent to other banks, in which the Bank of Charleston said that it was no longer clearing for the Enterprise. This letter Harvey said, seriously impaired the credit of the Enterprise Bank. The run on the Enterprise Bank started, Harvey said, when a woman depositor withdrew a large amount, being followed quickly by others, many checks for Enterprise Bank deposits being drawn through other institutions. He then sought to get immediate funds to tide over the run. W. King McDowell made a loan of $10,500. This sufficed through the following day. The Monday following, he saw that many had drawn on the Enterprise through other banks. In the evening he consulted with McDowell and Rhett, deciding to see whether the run had stopped. Tuesday morning, a board meeting was called and the decision reached to close the bank and call the examiner to take charge. He said that it was believed that the Enterprise Bank could have been re-established but for other bank failures here. R. Goodwyn Rhett, president of the People's National Bank, and former president of the Chamber of Commerce of the United States, said, on the stand, answering a question by Solicitor Stoney, that the federal law on bank examining was stricter than the state's.

4. November 25, 1923 The Sunday Record Columbia, SC
Article from The Sunday Record, November 25, 1923

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EX-GOVERNOR'S JURY UNABLE TO AGREE AFTER FIVE HOURS; IS 'HOPELESSLY DEADLOCKED' Judge Bowman Ordered Mistrial at 11:10 O'clock Saturday Night—Case Was Given to Jury at 5:30 P. M.—Harvey, on Stand in Afternoon, Reveals Details of Events That Led Up to the Failure of Enterprise Bank — Explains Loans Made to Auto Company and of How Efforts to Meet "Run" on Bank Failed (Special to the Record) Charleston, Nov. 24. — A mistrial was ordered in the case of Wilson G. Harvey at 11:10 o'clock tonight when after being out for approximately five hours the jury was called in by Judge I. W. Bowman, presiding, the foreman announcing that it was "hopelessly dead-locked." In Hands of Jury Charleston, Nov. 24.—The case of Wilson G. Harvey, who, as president of the defunct Enterprise Bank of this city is charged with having violated state banking laws, in that he is alleged to have allowed deposits to be received knowing the bank was insolvent, was placed in the hands of the jury at 5:30 o'clock following a 20 minute charge by Judge I. W. Bowman of Orangeburg, presiding. A Russell McGowan, assisting Solicitor Thomas P. Stoney, opened the argument for the state at 3:30 o'clock, when court reconvened after a short recess for dinner. J. N. Nathans representing Mr. Harvey, then went into a lengthy and exhaustive argument for the defendant and Solicitor Stoney made a brief, but energetic, closing argument. Judge Bowman, in his charge, read the indictment and the section of law under which Mr. Harvey was indicted and also the requested charges. Mr. McGowan, in his argument, stated that the fact that Mr. Harvey was a former governor of the state was not to be taken into consideration; he declared that Mr. Harvey had received but ignored a report from the state bank examiner, that his examination showed that there was approximately $211,000 worthless paper, and stated that while he Harvey would have made it appear that he kept the bank open on the advice of local prominent bankers, all had not been told these bankers. Mr. Nathans summarizing his case, brought out that the defendant kept the bank open on the advice of other prominent bankers until the run became too strong, and that he was not aware of the fact that he bank was insolvent at the time, the specified deposits were received. Argument by Defense He also brought out that Mr. Harvey had turned over $50,000 of his own estate to the credit of the bank, before it was reopened by the state bank examiner, and stated that Mr. Harvey was not coming before the jury as a former governor or man of prominence in the city and state, but for a square and fair trial. He asked why, if in 1920, as according to the testimony of W. W. Bradley, heard yesterday, the bank was then insolvent, was not action taken or a letter written to the directors of the bank by the bank examiner. He pictured the economic conditions of the time the bank failed, the unrest, and general feeling among the banks, the effect the letter from the Bank of Charleston as testified yesterday, would have on the Enterprise bank, and asked the jury to do justice and return a verdict of not guilty. Mr. Stoney then launched into his argument very energetically, asking that the jury take the exhibits offered in evidence to the jury room and judge according to them. He stated that he believed the grand jury had done its duty; that he had attempted to do his and it was now up to the petit jury. Judge Bowman then charged on the law. Quizzed on Loans During Saturday afternoon's session Solicitor Stoney went into the affairs of the Consolidated Auto and Truck company bringing from Mr. Harvey that he was secretary of the firm, which he said was practically owned by his brother, Lee Harvey. Mr. Harvey stated that he resigned as an officer of the firm on July 1, 1921 and that the automo- (Continued on Page Seven)

5. November 26, 1923 The Item Sumter, SC
Article from The Item, November 26, 1923

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MISTRIAL IN FIRST CASE OF HARVEY Judge Bowman Dismisses Jurors, After Failure to Agree. Trial of Two Harveys on Another Charge Begins Monday. Charleston, Nov. 24.—It was announced tonight that Wilson G. Harvey and his brother, H. Lee Harvey, will be tried Monday in the court of general sessions on a charge of loaning more than 10 per cent of the capital and surplus of the Enterprise Bank, in which the former was president and director and the latter a director, to a concern in which they were interested. to other banks, in which the Bank of Charleston said that it was no longer clearing for the Enterprise. This letter, Harvey said, seriously impaired the credit of the Enterprise bank. The run on the Enterprise bank started, Harvey said, when a woman depositor withdrew a large amount, being followed quickly by others, many checks for Enterprise bank deposits being drawn through other institutions. He then sought to get immediate funds to tide over the run. W. King McDowell made a loan of $10,500. This sufficed through the following day. The Monday following, he saw that many had drawn on the Enterprise through other banks. In the evening he consulted with McDowell and Rhett, deciding to see whether the run had stopped. Tuesday morning a board meeting was called and the decision reached to close the bank and call the examiner to take charge. He said that it was believed that the Enterprise bank could have been reestablished but for other bank failures here. R. Goodwyn Rhett, president of the People's National bank and former president of the chamber

6. November 27, 1923 The Gaffney Ledger Gaffney, SC
Article from The Gaffney Ledger, November 27, 1923

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MISTRIAL RESULTS IN CASE OF HARVEY JUDGE ORDERS DISMISSAL OF THE JURY. A Dozen Witnesses Were Heard, Testifying Deposits Were Made Just Before Bank Closed. Charleston, Nov. 24.—It was announced tonight that Wilson G. Harvey and his brother, H. Lee Harvey, will be tried Monday in the court of general sessions on charges of loaning more than 10 per cent of the capital and surplus of the Enterprise Bank, in which the former was president and a director and the latter a director, to a concern in which they were interested. Charleston, Nov. 24.—At 11:16 o'clock tonight Circuit Judge I. W. Bowman discharged the jury in the case against former Gov. Wilson G. Harvey, charging him with accepting deposits when the Enterprise bank, of which he was president, was insolvent, and declared a mistrial, the jury having failed to agree. The jury retired at 5:35 o'clock to deliberate. The jury came down about 6:30 o'clock for instructions from Judge Bowman and for information with respect to W. King McDowell's testimony. About 7:30 o'clock County Sheriff Joseph M. Poulnot escorted the jury to supper. At the afternoon session of the court J. N. Nathans, for the defense, and Solicitor Thomas P. Stoney made their arguments to the jury. Circuit Judge I. W. Bowman of Orangeburg charged the jury just after Mr. Stoney finished. The opening argument was made by A. R. McGowan, assisting the solicitor, just before the dinner recess. Harvey was on the witness stand in his own behalf. He seemed very nervous, but answered all questions in a clear voice. He looked very much fatigued from the ordeal of the trial. The court room was crowded with spectators. It was the second day of the trial, the case having been opened yesterday morning at 10 o'clock. Twelve witnesses for the state were heard yesterday, including four men, who claimed that they had made deposits just before the failure of the bank, and W. W. Bradley, state bank examiner, who inspected the Enterprise bank for the then State Bank Examiner J. H. Craig, in 1920 and in 1921. In November, 1921, the Enterprise bank closed its doors and called the state bank examiner. After an investigation the examiner authorized the reopening of the bank, most of the depositors having signed pledges not to withdraw their moneys for a year in order to give the bank an opportunity to re-establish itself. When the year was nearly up the bank was closed permanently and the process of liquidation begun. So far the liquidating agents have arranged one dividend of 5 per cent. for depositors. Harvey's indictment came after a special presentment by the grand jury at the previous term of court, the grand jury considering evidence found in an investigation by a committee of depositors. Two true bills were returned in his case, the other relating to loaning more than 10 per cent of the capital and surplus to a concern in which he was interested while he was president and a director in the Enterprise bank. He has not been tried on this charge yet. Manager Cross-Examined. At the morning session of the court today, Eugene Johnson, manager of the local clearing association, was recalled for cross-examination by the defense. He explained the operation of the clearing house and said that the Bank of Charleston, N. B. A., had acted in this capacity for the Enterprise bank until the Bank of Charleston had given notice that it was ceasing this function. F. M. Keenan, city salesman, on the stand, said that October 17 he deposited $5,000 in the Enterprise bank, Harvey saying that the money would be credited as of October 1 so as to allow interest for the quarter. He said that he received a letter from Harvey thanking him for his patronage of the Enterprise bank, November 1, he heard that the Enterprise bank had closed and took steps to have the United States treasury department stop payment on the check, saying that this failed. He claimed that he had received no dividend on the deposit. Council for the defense brought out that Keenan had borrowed from the Enterprise bank and had refused to accept a dividend on his deposit.

7. November 28, 1923 The Watchman and Southron Sumter, SC
Article from The Watchman and Southron, November 28, 1923

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A MISTRIAL IN FIRST CASE OF HARVEY Judge Bowman Dismisses Jurors, After Failure to Agree. Trial of Two Harveys on Another Charge Begins Today. Charleston, Nov. 24.—It was announced tonight that Wilson G. Harvey and his brother, H. Lee Harvey, will be tried Monday in the court of general sessions on charges of loaning more than 10 per cent of the capital and surplus of the Enterprise Bank, in which the former was president and a director and the latter a director, to a concern in which they were interested. Charleston, Nov. 24.—At 11:16 o'clock tonight Circuit Judge I. W. Bowman discharged the jury in the case against former Gov. Wilson G. Harvey, charging him with accepting deposits when the Enter- H. LEE HARVEY SENTENCED TO JAIL AND FINE Brother of Former Governor Must Spend Year in Prison and Pay $5,000. Trial of Former Governor is Postponed. Charleston, Nov. 26 (By the Associated Press).—H. Lee Harvey, brother of Former Governor Wilson G. Harvey, was sentenced to one year's imprisonment and $5,000 fine in court today following a plea of guilty to violating the state banking laws in connection with the failure of the Enterprise bank, of which he was a director. Judge Bowman first sentenced him to two years and a fine, but later reduced the prison term. The trial of Former Governor Harvey on a similar charge, the making of illegal loans, was postponed until the next term of court, when called today on a motion of the defense.

8. November 28, 1923 The Watchman and Southron Sumter, SC
Article from The Watchman and Southron, November 28, 1923

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Judge Bowman Dismisses Jurors, After Failure to Agree. Trial of Two Harveys on Another Charge Begins Today. Charleston, Nov. 24.—It was announced tonight that Wilson G. Harvey and his brother, H. Lee Harvey, will be tried Monday in the court of general sessions on charges of loaning more than 10 per cent of the capital and surplus of the Enterprise Bank, in which the former was president and a director and the latter a director, to a concern in which they were interested. Charleston, Nov. 24.—At 11:16 o'clock tonight Circuit Judge I. W. Bowman discharged the jury in the case against former Gov. Wilson G. Harvey, charging him with accepting deposits when the Enterprise bank, of which he was president, was insolvent, and declared a mistrial, the jury having failed to agree. The jury retired at 5:35 o'clock to deliberate. The jury came down about 6:30 o'clock for instructions from Judge Bowman and for information with respect to W. King McDowell's testimony. About 7:30 o'clock County Sheriff Joseph M. Poulnot escorted the jury to supper. At the afternoon session of the court J. N. Nathans, for the defense, and Solicitor Thomas P. Stoney made their arguments to the jury. Circuit Judge I. W. Bowman of Orangeburg charged the jury just after Mr. Stoney finished. The opening argument was made by A. R. McGowan, assisting the solicitor, just before the dinner recess. Harvey was on the witness stand in his own behalf. He seemed very nervous, but answered all questions in a clear voice. He looked very much fatigued from the ordeal of the trial. The court room was crowded with spectators. It was the second day of the trial, the case having been opened yesterday morning at 10 o'clock. Twelve witnesses for the state were heard yesterday, including four men, who claimed that they had made deposits just before the failure of the bank, and W. W. Bradley, state bank examiner, who inspected the Enterprise bank for the then State Bank Examiner J. H. Craig, in 1920 and in 1921.

9. April 24, 1925 The Sioux City Journal Sioux City, IA
Article from The Sioux City Journal, April 24, 1925

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EX-GOVERNOR PAYS A FINE; ESCAPES PEN Allendale, S. C., April 23.—Pleading guilty to a charge of violating the state banking laws, Wilson G. Harvey, former governor of South Carolina, and president of the defunct Enterprise bank of Charleston, today was sentenced to serve four months in the penitentiary or pay a fine of $400. He paid the fine.