"The
plaintiffs above named, pursuant to order herein, by their
amended complaint, respectively show to the court:
"(1)
That they elect to retain the cause of action in favor of
trust estate of A. Davis Fant, in the original complaint
as amended herein, and to bring a separate action by
leave of the order of the Supreme Court herein, for and
in behalf of the trust estate of T. Prue Fant.
"(2)
That accordingly, plaintiffs allege, that on or about the
7th day of October, 1902, one O. H. P. Fant, a former
resident and citizen of Anderson county, state of South
Carolina, departed this life, leaving of force and
effect, a last will and testament, which was submitted to
probate in the county of Anderson, state aforesaid, on
the 7th day of October, 1902, and is a matter of record
therein, in Will-Book, No. 6, page 154 et seq., and
indexed as part of File No. 4793, in said office, to
which reference is craved and may be had.
"(3)
That under said will, said O. H. P. Fant, made certain
devises from his estate, to his son, Handy B. Fant, in
trust, for the use and benefit of his two other sons, one
of whom was A. Davis Fant, and under Paragraph VII of
said will, the testator specifically charged said trust
estate, with the necessity of being invested by the
trustee, or his successor, in such property, or good
interest-bearing securities, as would suit
the several parties best; that he also provided that in
the event of death or failure to qualify on
the part of any one of the trustees therein designated, then
that the court of common pleas, appoint some strong bank, to
act or 'direct the investment and management' of said
trust estate, by its proper officers. That the said Handy B.
Fant, was also nominated and appointed by said testator, as
the executor of his said last will, and accordingly, said
Handy B. Fant, upon the death of the said O. H. P. Fant, and
the admitting of his will to probate, qualified as such
executor, and continued to act in said capacity up till the
time of his death.
"(4)
That the People's Bank of Anderson, S. C., was, on or
about the 12th day of January, 1899, organized and chartered
under the general laws of the state for the purposes of a
banking institution, with an authorized capitalization of two
hundred thousand ($200,000.00) dollars, all of which was
claimed by the encorporators, as having been paid in full.
That said bank continued to do business as such, and in
addition thereto, exercised its privileges under the law, to
act as guardian, administrator, and as trustee, in certain
cases, and that said bank accordingly, applied for, and was
granted letters testamentary, de bonis non and with will
annexed, of the will of said O. H. P. Fant, deceased, on or
about the 15th day of July, 1919, succeeding in said
capacity, and to all the liabilities attaching under the will
and under the law, to Handy B. Fant, both as administrator
and as trustee, for the estate and interest of the said A.
Davis Fant.
"(5)
That said People's Bank of Anderson, as administrator
with will annexed, of O. H. P. Fant, deceased, and as trustee
for the interests of A. Davis Fant, received from W. C. Fant,
executor for the estate of Handy B. Fant, deceased, moneys,
bank stock, mill stock, etc., in the aggregate of ten
thousand ($10,000.00) dollars.
"(6)
That on May 3, 1921, an annual meeting of the defendants
herein as directors of said bank, was held. That at said
meeting, it was decided and voted, that on account of the then-existing condition of the bank, the usual
dividend to stockholders, would be postponed. That
notwithstanding, said directors, the defendants herein, voted
a resolution authorizing the officers of the bank,
to make loans to the directors of the bank,
specifying them by name, and among whom was Lee G. Holleman,
at the time, president of the bank and a director. That said
resolution was 'blanket' in form, is a matter of
record in the Minute Book of the bank, at page 150, to which
reference may be had. That said resolution contained no
reservation or provision whereby the board of directors were
to have submitted in proper form, applications for such
loans, and first scrutinize and approve, or disapprove the
security offered and the amounts, for which application
should be made. That thereafter, and pursuant thereto, the
said Lee G. Holleman, borrowed from said bank, from the trust
fund held for A. Davis Fant, the sum of $5,565.00 without
first submitting his application and such collateral as he
cared to offer, and without having had first the approval in
writing of two-thirds of the bank's directors, and soon
thereafter ended his life and left a hopelessly insolvent
estate.
"(7)
That at said annual meeting, all former officers and
directors of the bank were re-elected to succeed themselves,
to wit: Lee G. Holleman, president, H. H. Watkins, vice
president, E. P. Vandiver, cashier, T. S. Bannister,
assistant cashier, Donald E. Brown, assistant cashier, F. L.
Tucker, assistant cashier. Directors: E. P. Vandiver, H. H.
Watkins, W. L. Brissey, W. H. Tucker, E. P. Gambrell, T. W.
McCarley, J. F. Watson, H. V. G. Cooley, L. E. Dean, B. A.
Henry, C. C. Jones, W. C. Fant, J. R. Findley and Lee G.
Holleman, and with the exception of Lee G. Holleman and T. W.
McCarley, since deceased, the defendants herein named, to
wit: W. L. Brissey, L. E. Dean, W. C. Fant, J. R. Findley, B.
A. Henry, C. C. Jones, H. V. G. Cooley, W. H. Tucker, E. P.
Vandiver, H. H. Watkins, J. F. Watson and E. P. Gambrell, are
directors of said bank and are individually
residents of the County of Anderson, state aforesaid.
"(8)
That at the close of business December 27, 1920, the state
bank examiner, noted and called to the attention of the bank,
as a result of his official audit, the following
'excess' loans: Lee G. Holleman, $16,203.19; Lee G.
Holleman, 'overdraft' $4,415.77; Lee G. Holleman,
endorser for $25,613.54; Overland-Holleman Company, of which
it is alleged, Lee G. Holleman, was sole owner and
proprietor, $25,000.00. That these obligations had not been
reduced or paid at the time of the annual meeting of the
directors, May 3, 1921.
"(9)
That on June 1, 1921, when the capital of said bank was
seriously impaired and when it was totally devoid of actual
'surplus' and when it was heavily involved, and when
Lee G. Holleman, its president and one of its directors, was
individually and as endorser and as owner of the
Overland-Holleman Company, indebted to said bank considerably
in excess of what the law of the state, allowed, and pursuant
to 'authority' or permission, of the bank's
directors at their meeting May 3, 1921, borrowed from the
bank, from the fund held by said bank for A. Davis Fant, the
sum of $5,565.00. That he executed to the bank as
'trustee,' his promissory note therefor, of date of
said loan, bearing interest at the rate of eight per cent.
per annum, and contemporaneously therewith, executed to said
bank as 'trustee,' a real estate mortgage as security
therefor, said mortgage being without renunciation of dower,
and covering far less valuable lands than was represented by
the obligations, and 'security,' from which
there could, in no event, be realized the face of the loan.
"(10)
That other obligations, which together with the obligation to
the bank...
