10309. Biltmore Oteen Bank (Biltmore, NC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 20, 1930
Location
Biltmore, North Carolina

Metadata

Model
gpt-5-mini
Short Digest
2a324931af5dbc0c

Response Measures

None

Description

Articles report the Biltmore Oteen Bank as one of several Asheville-area banks that closed in mid-November 1930 during a local banking panic; subsequent article (April 1931) lists officers of the closed BiltmoreOteen Bank among those indicted. The sources do not explicitly describe a depositor run on this specific bank, but they do report it as closed and later subject to criminal charges, consistent with permanent closure/suspension and liquidation. OCR in articles concatenated the name as BiltmoreOteen; corrected to Biltmore Oteen Bank.

Events (2)
1. November 20, 1930 Suspension
Cause Details
Closed as one of several Asheville-area bank failures in mid-November 1930 during a regional banking panic; specific proximate cause for this bank not stated in the articles
Newspaper Excerpt
Banks besides the Central Trust Co. to close yesterday were the BiltmoreOteen Bank, at Biltmore, Asheville suburb; ... Total deposits tied up by the closings is more than $24,000,000.
Source
newspapers
2. April 22, 1931 Other
Newspaper Excerpt
W. A. McGeachy, president. W. L. Crown, cashier. and S. Reed, director of the closed BiltmoreOteen bank. ... were charged with false entry with intent to deceive the state banking department and to deceive and defraud creditors of their banks. Only two of the men indicted yesterday were required to post bond ... The others indicted all are under bond as the result of previous indictments ... the first case listed on the docket is that charging Davis, A. Sinclair and C. N. Brown, directors of the Central Bank and Trust company ... with making false report of the bank's condition to the state banking department. (Greensboro Record, Apr 22 1931).
Source
newspapers

Newspaper Articles (2)
1. November 21, 1930 Evening Star Washington, DC
Article from Evening Star, November 21, 1930

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Article Text

WARRANT FOLLOWS FALSE BANK RUMOR AS LOUISVILLE, KY. (Continued From First Page.) voted unanimously to continue, whether salaries are paid or not, pending the clearing up of the present difficulties An armored truck with $1,000,000 in cash arrived here late yesterday from the Charlotte branch of the Federal Reserve Bank of Richmond, for the Wachovia Bank & Trust Co. Officials reported deposits in this bank yesterday practically equaled withdrawals. Officials of the National Bank of Commerce, another of the city's large financial institutions, said the bank gained in deposits yesterday. Banks besides the Central Trust Co. to close yesterday were the BiltmoreOteen Bank, at Biltmore, Asheville suburb; the First Bank & Trust Co., the Citizens' National Bank and the American Bank & Trust Co., all of Hendersonville; the Bank of Lowell, at Lowell, the Clay County Bank of Hayesvile, and the Bank of Leicester, Buncombe County. Total deposits tied up by the closings is more than $24,000,000. A statement issued by the directors of the Central Bank & Trust Co. said they had decided at a meting early yesterday not to open the bank and to turn the institution over to the State Banking Department for liquidation. Blames Land Boom. While the directors' statement gave no reason for the bank's failure, John Mitchell, chief State bank examiner in a statement at Raleigh attributed it to "collapse of a highly inflated plane of real estate values." He said: "Immediately preceding the collapse of the Florida real estate boom, a large number of high-powered real estate operators transferred their activities from Florida, concentrating largely in Asheville and Hendersonville. The result of their activities was to produce a highly inflated plane of real estate values. The resulting collapse in real estate, as well as other values, made it impossible for the failed banks to liquidate their receivables in sufficient volume to meet demands of depositors. "This situation is purely a local one and does not in any way reflect conditions in the State generally and should cause no uneasiness concerning the selvency of other banks within the State." SIX INDIANA BANKS FAIL.

2. April 22, 1931 The Greensboro Record Greensboro, NC
Article from The Greensboro Record, April 22, 1931

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Article Text

LIST TWO MORE IN BANK PROBE Total of Twenty-Seven Face Charges as Outgrowth of Asheville Bank Failures indictments naming 16 men today had been added to the already voluminous list of charges brought the Buncombe county grand jury as the result of the failure of banks here last fall with more than $20,000,000 on deposit. The latest indictments include two new names and brought to 27 the total number of men against whom charges are pending. special six-weeks term of Superior court will begin Monday. with Judge M. V. Barnhill, of Rocky Mount, presiding. for the trial of the cases. Solicitor Zeb V. Nettles will be assisted in the prosecution by several prominent attorneys of the state. Prominent in yesterday's grand jury action were indictments charging Col. Luke Lea, Luke Lea, Jr., and E. P. Charlet. of Nashville, Tenn., Wallace B. Davis, president, and J. Charles Bradford, cashier of the closed Central Bank and Trust company with conspiracy to defraud the institution of more than $1,000,000. The Leas. Charlet and Davis already had been charged with conspiracy defraud the bank of Officials Named. J. E. Gibson, former city secretarytreasurer. and Charles N. Malone, former city bond attorney. not previously indicted. were named in yesterday's charges. Malone, Bradford, Davis, his brother. Russell C. Davis, vice president of the Central bank, and L. B. Rogers and C. H. Bartlett, former city commissioners, were charged with 12 instances of alleged conspiracy to pervert the credit of the city to the benefit of the defunct bank. More than $8,000,000 of public funds were on deposit in the bank when it closed. Another indictment charged A. A. Hegeman, president of the defunct Commonweal bank of Black Mountain with embezzlement of $63,000 and with false entry. False entry with intent to decelve the state banking department and to deceive and defraud creditors of their banks also was charged against W. B Davis, Dr. J. A. Sinclair and C. N. Brown. the latter two directors of the Central bank, and against W. A. McGeachy, president. W. L. Crown, cashier. and S. Reed, director of the closed BiltmoreOteen bank. Post Bond. Only two of the men indicted yesterday were required to post bond by Solicitor Zeb V. Nettles They were J. E. Gibson. former secretary-treasurer of the city and Charles N. Malone. former city bond attorney. They are charged with perversion of city funds to the use of the Central Bank and Trust company. Malone posted $2,500 bond today. Gibson was out of town. The others indicted all are under bond as the result of previous indictments and the solicitor permitted the original bonds to take care of the latest indictments. & special term of court has been called for next Monday for trial of the cases. The first case listed on the docket is that charging Davis, A. Sinclair and C. N. Brown, directors of the Central Bank and Trust company. with making false report of the bank's condition to the state banking department.