gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
69009f32f05a0ae0
Response Measures
None
Description
Bank closed Jan. 29, 1927 and placed in receivership; subsequent prosecutions and liquidation proceedings followed.
Events (3)
1.January 29, 1927Receivership
Newspaper Excerpt
National Union Bank, as receiver, allow attorneys for stockholders ... transactions of the Citizens Bank Trust company; the Citizens Bank & Trust Company, which closed on January 29, and went into the hands of receiver
Source
newspapers
2.January 29, 1927Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank failure tied to alleged embezzlement, fraud and improper/dividend payments leading to indictment and receiver appointment
Newspaper Excerpt
which closed on January 29 and went into the hands of receiver
Source
newspapers
3.November 29, 1927Other
Newspaper Excerpt
sale of the building, furnishings and fixtures of the Citizens Bank and Trust company ... The sale will take place at 11 a.m. Tuesday, November 29
Source
newspapers
Newspaper Articles (22)
1.March 17, 1927The HeraldRock Hill, SC
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ACCESS TO BOOKS AND REPORT
Directs Receiver to Furnish Attorneys for Stockholders With Information
Two Orders Relating to Local Defunct Institution Handed Down by Judge court order directing the tional Union Bank, as receiver, allow attorneys for stockholdfull and free access to the port of the state bank examiner upon conditions and transactions of the Citizens Bank Trust company, was signed yesterday afternoon by Circuit Judge E. Dennis, now conducting court at Winnsboro. Two orders relating to affairs of the Citizens Bank & Trust Company, which closed on Janu29 and went into the hands ary of receiver, were signed Judge Dennis. The first directs that access given attorneys to records of the Citizens Trust company, and the second orders that access be given to records of the bank. attorneys Representatives of the National Union Bank, receiver, explained today that the position of the bank not that of covering up transactions or conditions of the Citizens Bank and Trust Company but was taken solely for the protection the receiver and to facilitate collections and settlement of the funct affaris. They said that backe court order, they were willing to comply with the court's directions. The information will be given only to attorneys for the stockholders, as the order directs, however, was pointed out. About fifteen stockholderes, who had been called upon to pay their liability stockholders, were resented the action to secure cess to the records by Spencer and White and by Wilson. fendants were represented by Dun all local law firms. The texts of the two orders are
State of South Carolina, County of York. Court of Common Pleas. Ex Parte Johnston, against Citizens Trust Company, Defendant.
ORDER Certain stockholders in the fendant corporation have moved before me for an order making them parties in the above entitled action for the purpose of pro tecting their rights as such and for further order requiring the National Union Bank, receiver of the said defendant to allow the attorneys for intervening stockholders access to any books any records as appear them necessary for the protection
(Continued on Page Six)
2.March 28, 1927The HeraldRock Hill, SC
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DIRECTORS SEEK PROBE OF LOCAL BANK'S FAILURE
Board Requests Reto Turn Over ceiver Data to Solicitor Glenn at Once
An investigation by Solicitor Lyles Glenn of circumstances connected with the closing of the Citizens Bank and Trust company here January 29 was asked by the beard of of the closed in stitution in resolution adopted at meeting Saturday, it was learnThe directors resolved "to take such may appear advisable necessary in order to protect the interest of depositors in the Citizens Bank and Trust mpany and the stockholders of both in stitutions, and to that end the National Union Bank, as receiver of both institutions, is hereby reques ttd to furnish to the solicitor this district at Chester, such copy or copies of the reports of the state bank examiner and audi as will enable the solicitor whether or not there has been any violation of the statlaws of the state South Caro lina on the part of either offidirectors, stockholders or depositors, and if such be found, that necessary steps be taken by the receiver of the two institutions about prompt indictment of party parties." The resolution further places the directors present at the meeting as "hereby signifying their willing ness to do anything in their power to bring to jount any party or partics." Directors present at the meeting were: J. Thompson Brown, D. Brown, Creighton, R Armstrong, Johnston, W. Per cival, W. O'Neal and Willis.
3.March 29, 1927The Charlotte ObserverCharlotte, NC
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SEEK PROBE OF DEFUNCT BANK
Board of Directors and Stockholders Hold Meeting in Rock Hill.
Special The Charlotte Observer ROCK HILL, March 28-An investigation of affairs of the Institution and transactions of all parties connected with the Citizens Bank and Trust company, which closed on January 29, has been requested of Solicitor J. Lyles Glenn, of Chester, it was learned today. The request was made by the board of directors of the closed bank in a resolution adopted by eight directors who attended a special meetIng. PROTECT DEPOSITORS. The directors resolved "to take such steps as may appear advisable or necessary order to protect the interest depositors in the Citizens Bank and Trust company and the stockholders of both institutions, and to that end the National Union Bank, as receiver for both institutions, is hereby requested to furnish to the solicitor of this district at Chester, such copy or copies of the reports of the state bank and auditors as will enable the 80licitor to ascertain whether or not there has been any violation of the statute laws of the state of South Carolina on the part of either officers, or depositors, and such be found. that necessary steps be taken the receiver of the two institutions to bring about prompt indictment of such party or parties.' The resolution further places the directors as "hereby signifying their willingness to do anything in their power to bring to account any guilty party or parties.' RECEIVER WILLING. Willingness comply with the request the directors AV. pressed the receiver, and Solicftor Glenn is expected to be in possession the desired reports within few days.
Defunct Bank Pays Dividend
(Special Dispatch) ROCK HILL, June ment of second liquidating div. idend of 15 per cent to depositors in the Citizens' Bank and Trust company has been announced National Union bank, The first dividend of 10 per cent was paid several ago. At that time approximately $40,000 was returned depositors, while the dividend being paid will be approximately $60,000. total of 25 per cent. or approximately $100,000, will have been returned. The bank when closed on January 29 had deposits of approximately $400,000.
5.July 15, 1927The Charlotte NewsCharlotte, NC
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Rock Hill Bank Depositors Will Get New Dividend
York, July defunct Citizens Bank and Trust Company of Rock will receive per cent dend soon. making total of 40 cent dthem. Judge Marvin Mann has order the National Bank, receiver to the pay Stockholders been called upon for their 100 per cent statu tory liability
6.July 15, 1927The Index-JournalGreenwood, SC
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Depositors To Get Dividend YORK. S. C., July 15.-(AP)Depositors of the defunct Citizens Band and Trust Company of Rock Hill will receive a fifteen percent dividend soon. making a total of 40percent paid them. Judge Marvin M. Mann has signed an order authorizing the National Union Bank, as receiver, to make the payment. Stockholders have been called upon for their 100-percent statutory liability.
7.July 15, 1927The Atlanta JournalAtlanta, GA
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Rubber Quotations
July declined Friday with and steady:
Dividend for Depositors aged YORK, EAST ST. July of the defunct Citizens Bank and Trust company of Rock Hill higher will receive a per cent dividend nothing done making total of 40 per cent enough paid them. Judge Marvin M. Mann has an the $14 national bank, as receiver, to Sheep. bulk make payment. have been called upon for their 100 per cent statutory liability. July
8.July 16, 1927The Greenville NewsGreenville, SC
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Defunct Bank Will Pay Dividend Soon
YORK, July positors the defunct Citizens Bank and Trust company of Rock Hill receive fifteen cent per dividend soon, making cent per paid them. Jusge Mann has signed an the Union bank, as receiver, to make have called upon for their 100 per cent statutory liability.
9.July 20, 1927The Watchman and SouthronSumter, SC
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ROCK HILL BANK
July defunct Citizens' Bank and Trust company of Rock Hill will 15 per dividend soon, total of per cent paid them. Judge has signed an order the Union as receiver make the payment. have caleld upon for their per cent statutory liability.
10.July 23, 1927The Greenville NewsGreenville, SC
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BANK WOULD HAVE ACTION DISMISSED
National Union Bank Of Rock Hill Denies Charges In Bank Case
ROCK HILL, July 22.-(Special)Dismissal of the action brought against the National Union bank as receiver for the Citizens Bank & Trust company which closed here January 29, is asked by the former institution in an answer filed today to the of a group of stockholders in an answer in the Citizens bank seeking recovery of damages alleged to have been suffered through purported fraud, negligence and violation of banking ethics on the part of directors and officers. The National Union bank was made a defendant party in an amended complaint filed a short time ago as a counter move to the demurrer by the directors in answer to the original complaint. The firms of John Roddey and Dunlap & Dunlap represent the receiving institution. The answer of the receiver admits all such allegations as those pertaining to the history of the Citizens Bank & Trust company. to the identity of the officers, duties of officers, etc. It does not undertake to affirm deny charges. with the exception the receiver. that officers and directors neglected and failed to perform their duties. and other charges of improper or fraudulent transactions. It points out that these allegations concern the other defendants them. and should properly be answered by The receiver admits that loan was made to W. W. Bradley, former state bank examiner. and says that every effort has been used to collect it. So far, small part of it has been paid, it was stated.
FEDERAL WARRANTS ISSUED FOR TWO IN BANKING CASE
Tolbert Takes Out Papers For Shurley And Klugh In Rock Hill Affair
YORK, Aug. the charge that they "did unlawfully embezzle funds state bank, member Federal Reand did make false on books said bank, Citizens Bank and Trust company, Rock Hills, contrary form of the statute in such cases made and provided and against the peace and dignity the United States of America,' John R. Shurvice president, and William Klugh, of the defunct tution were served with federal rants here afternoon and released bond of $5,000 granted by U. Commissioner Carl Hart. Klugh, who was in Charlotte, and Shurley in Rock were by the issuance of warrants them and receipt of this advice immediately motored to York and promptly arranged bond. for Shurley are M. Fewell, Cauthen, Phillips and Anderson, while for Klugh are Peter Ihrie, M. London and Hambright. Commissioner Hart fixed Tuesday September date for the hearing, which held in either York Rock Hill. this be determined later. The warrants sworn out by Joseph Tolbert, United States district attorney, beH. Williams, United States In the warrants Phillips, Atlanta, the subject matter the The of the alleged embezzling given as from 30, January 1927. By the arrest of these bank officials, federal government takes in bringing the affairs the Peoples Bank Trust company, which closed doors in Since then charges of fraud, finally leading an investigation by county grand jury and Solicitor Lyles Glenn, Chester The result of this investigation will not come publicly known until general court convenes here September 12.
SELL EFFECTS OF CLOSED BANK SOON
Rock Hill Bank Building And Fixtures To Be Sold Out Shortly
ROCK HILL. Nov. -(Special) Notice of sale of the building. furnishings and fixtures of the Citizens Bank and Trust company which closed on January 29, 1927, was given today by the National Union bank, receiver, under an order signed by Judge John S. Wilson. The sale will take place at 11 m. Tuesday, November 29, in front of the building. No bids less than $134 000 will be considered, the notice said. A first mortgage on the building is held by the Nolting First Mortgage company. of Richmond, Va., trustees, for $99,000 while the receiver demands not less than $35,000 for benefit of depositors. The five story structure was completed about two years ago at cost of approximately and is located in the center of the city's business district. It occupies the site of the original St. John's Methodist church edifice. Possession of the property would be given the not less than December 28. 1927 Terms provide one-third in cash within five days: one-third within six months and the balance within 12 months.
13.November 9, 1927The Charlotte ObserverCharlotte, NC
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DEFUNCT BANK BUILDING IN ROCK HILL FOR SALE
The ROCK HILL Nov. 8.-Notice of of the building furnishings and fixtures of the Citizens Bank and Trust company, which closed on Jan. uary 29, 1927. was given today by the National Union receiver order signed by Judge John The will take place at 11 Tuesday in front of the building No bids of less than will be considered the said first mortgage the building is held by the Nolting First Mortgage com$99 000 while the demands not less than $35,000 for benefit of The five story was com. pleted two ago cost of and is located in the of the city's business district the site of the original St. Johns Methodist church Possession of the be the purnot than 28. 1927 Terms provide one-third in third with six months and the balance within
14.November 22, 1927The Charlotte ObserverCharlotte, NC
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SHURLEY IN FEAR OF PREJUDICED JURORS
GLENN FIGHTS CHANGED VENUE
Court Rules Today on Petition of Former Banker for Trial in Another County.
Observer vice president of the zens Bank and Trust company of facing five indictments Rock for law violations connection with the failure of that institution not until tomorrow will be tried by York whether he or of another jury When convened here this morning his presented petition. supported by about score of alleging that on of the state public count was for Shurley have fair trial in York county to attributing prejudice against Shurley in large measure to the influence of the officials of the Union National bank of Rock receivers of the and of the out of the bank's
SEEKS FAIR TRIAL order that Shurley might Impartial trial in county of he sixth judicial district where pub. le sentiment would not prevail for the receivers of the Attorneys Citizens bank. those being president of the Union Na bank his the other defendants the bank asked Judge John Wilson his decision as to grant change of venue until in order that they answer the request was granted. Solicitor Lyles Glenn opposed motion for change venue and offered number affidavits representative citizens of parts declaring that here no reason could not have and impartial rial against W B. Klugh former of the defunct bank and W W. Bradley. former state bank exwere the illness of of because another member heir W. of Ab In asking for change that and believes the of the Citizens bank in structed concen their the record Shurley and W Klugh and that they not any audit report except one which was on its injurious to Shurley It further set forth that Shurley has been informed that one or more the officers and directors of the Union National bank. receivers, have made use of their office prejudice inflame the public against Shurley and to lay all the blame for the the him order to shield prest of Johnson and W. R. Armstrong, dialleged that newspaper aroused prejudice Shurley are Hemphill and Wilson Rock former Gov Blease and Claude of Columbia.
15.November 22, 1927The ItemSumter, SC
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OF VENUE YORK
Vice President of Defunet Rock Hill Bank Cannot Obtain Fair Trial in York County
Nov ley. active vice president defunct Citizens' Bank and Trust company of Rock Hill, facing indictments for violation connection with the failure that institution, not know until morrow whether will tried York county that or another county. When court convened morning his attorneys presented supported about score of affidavits, alleging that account of the inflamed state public mind would be impossible for Shurley have trial York and attributing prejudice Shurley large to the the of the National Union bank of Rock Hill, receivers the closed bank and of the other the of the bank's Change venue in order that Shurley might trial county Sixth judicial where public not prevail Attorneys for Roddey, president the National Union bank and his of Citizens' other the asked Judge John withhold his ing change morrow order that they might answer allegations in petition, which request grant-
Solicitor Lyles the change venue and number affidavits from citizens parts county declaring that there was reason why Shurley could have impartial trial in York county. Cases against Klugh, mer cashier the defunct bank, and former state account of the illness ron of Union, one their attorneys and because another member thir counsel, Greene, of Abbeville, unavoidably In Shurley's petition asking change venue alleged that he is informed and believes that the receivers the Citizens' bank instructed their their attention the record of Shurley and Klugh and that they were isfied with any audit report except which on its face to Shurley. is further forth that Shur ley had been informed that one of officers direcNational Union bank, had made of their office to prejudice Inflame the public against to lay the blame for the failure the bank him order shield the closed bank, and and W. direcis also alleged that paper stories have prejuagainst Shurley. Hemphill Wilson Rock Hill Cole L. Blease and Claud Sapp Defendants the bank than and Klugh are Johnson and W. Brad-
16.November 30, 1927The Charlotte NewsCharlotte, NC
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Rock Hill Bank Fails to Bring Court's Price
Rock Hill, C., single bid was received yesterday for the building and fixtures of the Citizens Bank & Trust Company at the stipulated minimum price of $125,000. L. Bennett, tioneer, representing the National Union Bank, after for short time, ordered the sale closed. The property was offered for sale subject to first mortgage of $90, 000 held by the Nolting First Mort gage and a stipulated margin torneys agreed that the property failed to bring the tion would be made to the for an order of sale to the bidder The property will be sold during December, was said
17.February 29, 1928The HeraldRock Hill, SC
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suit to be brought against the receiver be forthwith served upon the National Union Bank of Rock Hill, S. C., as receiver of the said Citizens Bank and Trust
Company.
J. K. HENRY, Judge 6th Circuit. Dated 28th. Feby., 1928.
18.May 30, 1928The Greenville NewsGreenville, SC
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TWO IN
O'Neal And Johnston Face York Jury For Paying Unearned Dividends jury has been obtained and two witnesses heard in the case of W. O'Neal, president of the defunct Citizens Bank & Trust company of Rock Hill, and D. Johndirector charged with paying unearned dividends. when court adjourned the day here late this afternoon. When the case was called attorneys for the defendants moved to quash the indictment on the ground that it contained no allegation that their two clients constituted majority of the board of directors of the bank and that the payment stock dividend was not violation of criminal code. The state argued, however, that the stock dividend in question was an ordinary one, since arrangements had been made whereby any stockholder not agreeable to the procedure could sell the stock and receive a like amount in cash. After extended arguments on each side Judge Grimball overruled the motion to quash the indictment and the empaneling of the began. Little difficulty was experienced in securing the jury. which is principally of farmers. S. B. Chambers is The two witnesses heard this afternoon B. Dickson, ploye of the National Union bank, receivers of the Citizens Bank and C. E. McCaw. assistant cashier 01 the bank when it closed its doors. Dickson merely identified the charter, deed other legal papers to the bank McCaw's was princiabout draft of the Highland Park Manufacturing company, of which Johnston was an employe, and what became of when the bank failed McCaw testified that when the bank examiner took charge of the bank he the draft home with him and it three when he gave it to Johnston at the latter's request. In response to the defenses' onjection to testimony about the draft on the ground that it was irrelevant. Solicitor Lyles Glenn said the draft had been counted as cash and the evidence was introduced to bear out the state's tention that the defendants. fully aware of the correct financial condition of the institution had declared and published false statement as to its assets and liabilities.
19.May 30, 1928The StateColumbia, SC
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COUPLE HEARD IN CASE AT YORK
Jury Hears About Bank Failure.
ATTEMPT TO QUASH
Defense Seeks Easy Way but Meets Successful Opposition by Solicitor.
Special to The York May jury had been ob. tained and two heard in the of O'Neal president of the defunct Citizens' Bank & Trust company Rock Hill, and D. Johnson, with paydjourned for the day here late this afternoon. the case was called attorneys for the defendants moved to quash the the ground that no two clients of the board directors of the and that the dividend was not violation of the criminal argued, however, that the question any stock the proce and receive After each Judge overruled the quash the indictment and the jury difficulty the S. Cham The two heard this employe of the the Citizens bank and the bank the legal papers belonging to the McCaw's about draft the Highland Park which Johnston was Caw when the bank bank him three days. when he gave Johnston at the latter's In response to the defenses about the draft the that irrelevant said the had been counted and the introduced bear out the the fully aware the correct financial condition institution, had clared and published false state. as to its assets and liabili-
20.July 10, 1928The Greenville NewsGreenville, SC
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BANK WILL PAY FIVE PER CENT
Receivers For Defunct Rock Hill Institution Get Court Order
An order signed today by Judge K Henry at York. authorizes the National Union bank as receiver for the Citizens Bank and Trust pany, to pay to depositors of the defunct institution a dividend of per representing ly The dividend is the enth but only the sixth paid owing to the fact that one vidend up by court order permitting W Wilson. to for damages the defunct institution the receiver Six approximately
Rock Hill Bank To Pay Dividend Soon
ROCK HILL. April dividend of five per cent to paid to depositors the defunct Citizens Bank and Trust company of this city, this being in addition to 50 per cent already paid, according by the National bank, receivers. The dividend made possible on payment $20,000 federal court judgment by the indemnity company bonding officials of the defunct institution
22.May 18, 1929The HeraldRock Hill, SC
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GETS JUDGMENT
Walter Dunlap of the law firm Dunlap and Dunlap and Dickson, representing the NationUnion Bank, receiver for the Citizens Bank and Trust company, returned last night from Greensboro, C., where they attended in connection with case of the receiver against W. Anderjudgment for payment of the Anderson note of approximately $2000.00 was won by the Rock Hill bank.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
