11939. Commercial National Bank (Statesville, NC)

View Charter #9335 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
9335
Charter Number
9335
Start Date
April 19, 1928
Location
Statesville, North Carolina (35.783, -80.887)

Metadata

Model
gpt-5-mini
Short Digest
7b3923c9

Response Measures

None

Receivership Details

Depositor recovery rate
63.3%
Date receivership started
1928-04-19
Date receivership terminated
1936-03-18
OCC cause of failure
Fraud
Share of assets assessed as good
71.8%
Share of assets assessed as doubtful
18.2%
Share of assets assessed as worthless
10.0%

Description

The bank was closed in April 1928 immediately after discovery of a $234,000 shortage and the suicide of the cashier D. M. Ausley. A permanent national-bank receiver was appointed in June 1928; the institution did not reopen and was handled in receivership thereafter. No article describes a depositor run prior to the suspension; the closure appears driven by bank-specific adverse information (shortage/embezzlement). Dates in sources show April 18–19, 1928 as closing; receiver appointment June 9–13, 1928. Later legal actions against the receiver and suits by the receiver are documented through 1932–1933.

Events (7)
1. February 4, 1909 Chartered
Source
historical_nic
2. April 19, 1928 Receivership
Source
historical_nic
3. April 19, 1928 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of a $234,000 shortage in the cashier's accounts and the suicide of cashier D. M. Ausley led directors to close the bank.
Newspaper Excerpt
the bank was closed April 19, the day following the suicide of the cashier, D. M. Ausley.
Source
newspapers
4. June 9, 1928 Receivership
Newspaper Excerpt
C. L. Williams, national bank receiver, has entered upon his duties as permanent receiver for the Commercial National Bank of Statesville, taking the place of J. W. Dalton, who had been acting as receiver since the bank was closed, April 19th.
Source
newspapers
5. October 29, 1929 Other
Newspaper Excerpt
capiases were asked in Federal Court yesterday for officers of the Commercial National Bank of Statesville, which closed its doors a year and a half ago. ... grand jury is reported to have found that false entries, overdrafts, and other acts leading to a shortage in the accounts of the bank had been committed.
Source
newspapers
6. January 21, 1932 Other
Newspaper Excerpt
the late Ausley, cashier of the defunct Commercial National Bank, whose doors closed next day after Ausley's death April 18, 1928 ... the receiver of the Commercial National Bank ... suits on unpaid notes aggregating $50,000.
Source
newspapers
7. December 24, 1932 Other
Newspaper Excerpt
Former Bank Receiver Formally Charged With Embezzlement of Funds. ... charges allege that Jones misapplied $1,600 of the bank's money.
Source
newspapers

Newspaper Articles (16)
1. April 20, 1928 The Macon News Macon, GA
Article from The Macon News, April 20, 1928

Click image to open full size in new tab

Article Text

Bank Suspended After Discovery Of Big Shortage STATESVILLE. April M. Ausley cashier of the Commercial National bank. and disclosure that there was shortage of $234,000 in his counts Thursday were followed closely by announcement that the bank had been closed by the rectors Mr. Ausley. who organized the bank 20 years ago. shot himself his hotel room Wednesday few hours after national bank examiners had work on his books The shortage was by Turner. of the bank. The death of Mr. Ausley was lowed closely by the suicide Mrs. Nola Carpenter 44. for several years with the bank and later with the Tarhelia Loan and Investment company. Mrs. Carpenter however. had had no connection with the bank during the last few years and her suicide was attributill She resigned as of the loan company several months ago.

2. June 10, 1928 The Charlotte Observer Charlotte, NC
Article from The Charlotte Observer, June 10, 1928

Click image to open full size in new tab

Article Text

RECEIVER FOR DEFUNCT BANK June National bank receiver, with the United States treasury department, has entered upon his duties as permanent receiver for the Commerc Hal National Bank of Statesville, taking the place of J. W. Dalwho had been as receivor since the bank closed April 19, the day the suicide of the D. M Mr. that an official of the condition of the bank will be issued as of June 13, for some weeks the closing of the National Bank there had been efforts on the part of and citizens to organize bank to take the affairs of the defunct but nothing has

3. June 10, 1928 The News and Observer Raleigh, NC
Article from The News and Observer, June 10, 1928

Click image to open full size in new tab

Article Text

NEW RECEIVER PLACED IN CHARGE OF BANK Statesville, June 9.-C. L. Williams, National Bank receiver, with the U. S. Treasury, has entered upon his duties as permanent receiver for the Commercial National Bank of Statesville, taking the place of J. W. Dalton, who had been acting as receiver since the bank was closed, April 19th, the day following the suicide of the cashier, D. M. Ausley. Mr. Williams stated today that an official statement of the condition of the bank will be issued as of June 30th. Troops Enter Peking. Paking, China, June Naval Radio- delayed) -Six thousand Shansi troops under the command of General Shang Chen entered Peking tonight.

4. June 14, 1928 Watauga Democrat Boone, NC
Article from Watauga Democrat, June 14, 1928

Click image to open full size in new tab

Article Text

STATE NEWS BRIEFS C. L. Williams, national bank receiver, has been appointed permanent receiver for the Commercial national bank of Statesville, which has been closed since April 19, the day following the suicide of the cashier, D. M. Ausley. The grand chapter of the North Carolina Order of the Eastern Star, opened its 23rd annual convention in Raleigh Monday morning, with the grand matron ,Mrs. Alice H. Parker of Farmvlile, presiding. The sessions will close Wednesday afternoon. Thomas Maslin, former president of the defunct Merchants Bank and Trust Company, Winston-Salem, sentenced at the September, 1927, term of Forsyth superior court to serve from five to eight years in the state prison for embezzling funds, was taken to Raleigh Saturday to begin serving his sentence. He had been at liberty on $15,000 bond, pending the appeal to the higher court. Four deaths and injuries to two small girls resuletd from automobile accidents in the two Carolinas Sunday. Katherine and Dorothy McNeill, 12 and 7, were instantly killed near Lumberton when they ran from behind a car in which they had returned from Sunday school and were struck by a passing automobile. William D. Edwards, 19, of Guilford College, was killed when he was knocked down by an automobile near his home and was run over. T. E. Walters of Lancaster, S. C., died from injuries received early in the day when his automobile crashed near Lancaster, S. C. Raleigh, June 10-Science and religion are partners and the truly scientific man and the Christian man are the best friends in the world, said Dr. E. Y. Mullins, president of the Southern Baptist Theological seminary, in a sermon here tonight. "Science cannot get rid of the reflection of God in man's nature, neither can it get rid of the conviction of God in man's mind," he said. "That is, science cannot get rid of conscience. Man can control his thoughts, emotions, will, but he cannot control his conscience. Science cannot destroy the experience of God in man's life, neither can it get rid of the revelation of God in Christ Jesus."

5. June 14, 1928 Watauga Democrat Boone, NC
Article from Watauga Democrat, June 14, 1928

Click image to open full size in new tab

Article Text

STATE NEWS BRIEFS Williams. national bank receiver. has been permanent the Commercial national bank of Statesville, which has been closed since April 19, the day following the suicide of the cashier, Ausley. The grand chapter the North Carolina Order of the Eastern Star, opened its 23rd annual convention in Raleigh Monday morning, with the grand matron Mrs. Alice H. Parker presiding. The sessions will close Wednesday afternoon. Thomas Maslin, former president of the defunct Merchants Bank and Trust Company, Winston-Salem, sentenced at the September, 1927, term of Forsyth superior court serve from five eight years in the state prison for embezzling funds, was taken Raleigh Saturday to begin serving his sentence. He had been liberty on $15,000 bond, pending the appeal the higher court. Four deaths and injuries two small girls resuletd from automobile accidents the two Carolinas SunKatherine and Dorothy McNeill, 12 and were instantly killed near Lumberton when they ran from behind car which they had turned from Sunday school and struck passing automobile. William Edwards. of Guilford College, was killed when he was knocked down by automobile his home and run over. Walters of Lancaster, died from injuries received early in the day when his automobile crashed near Lancaster, Raleigh, June and religion partners and the truly scientific man and the Christian are the best friends in the man world, said Dr. Mullins, president of the Southern Baptist Theological seminary, in sermon here tonight. "Science cannot get of the reflection of God in man's nature, neither can get rid of the conviction of God in man's mind," "That is, science cannot conscience. Man can control his thoughts, emotions, will. but cannot control his conscience. Scicannot destroy the experience of God in man's life, neither can rid of the revelation of God in Christ Jesus."

6. October 29, 1929 Goldsboro News-Argus Goldsboro, NC
Article from Goldsboro News-Argus, October 29, 1929

Click image to open full size in new tab

Article Text

Published six afternoons a week and Sunday mornIng by The Goldsboro Publishing Company at 105 B. James Street, Goldsboro, N. C. All rights of republication of special dispatches herein are also reserved. Entered at the postoffice in Goldsboro, N. C., as second class-mail matter. Tuesday Afternoon, October 29, 1929. BANKS ARE SAFE Former directors of the National Bank at Fayetteville have been charged with gross negligence and violation of the National Banking Act. At New Bern, a United States bank examiner and his assistant are in charge of the First National Bank, which failed to open its doors last Saturday. At Statesville, capiases were asked in Federal Court yesterday for officers of the Commercial National Bank of Statesville, which closed its doors a year and a half ago. In the Statesville case, a grand jury is reported to have found that false entries, overdrafts, and other acts leading to a shortage in the accounts of the bank had been committed. The ugly tongue of rumor is declared to have caused the trouble at New Bern through causing a run on the bank by whispering it was not safe. And at Fayetteville it is charged that directors of the bank violated the law by making loans of the bank's funds to themselves and approving loans made to concerns in which they had an interest. They are also charged with failing to make proper examination into the affairs of the bank at regular intervals. The three cases give interesting example of the ills from which banks may suffer-criminality, outside gossip, and insufficient attention to what is correct and necessary in the conduct of such institutions. Losses in all the cases are of far great. er effect than failure of ordinary commercial enterprises because such a number of people in the community and the general trust and mutual credit of the community are involved. Bankers carry a responsibility greater than those of most people. Proof that most of them carry it well is found in the small proportion of banks, as compared with other kinds of business, which get into trouble. stocks without any careful consideration of how much dividends the individual stocks actually paid or any of the other things which would be considered by a man or woman putting out money so as to receive an income from it over a number of years. Main Street first over-expanded the stock market and then exploded it. Wall Street tried to save the fragments. The fact that Wall Street saved the fragments for itself merely indicates that most Wall Streeters have more sense and knowledge about stocks than most Main Streeters. That is the truth that hurts. SUBSCRIPTION IN ADVANCE Delivered by Carrier: One Year $8.00 Six Months 4.00 Three Months 2.00 One Month .70 By Mail In Wayne, Johnston, Sampson, Duplin, Lenoir, Greene, and Wilson Counties One Year $6.00 Six Months 3.00 Three Months 1.50 One Month .60 Outside of Counties Named One Year $8.00 Six Months 4.00 Three Months 2.00

7. April 21, 1930 Statesville Record and Landmark Statesville, NC
Article from Statesville Record and Landmark, April 21, 1930

Click image to open full size in new tab

Article Text

VERDICT STATESVILLE BANK Receiver of Defunct Commercial National Bank Must Make Good Check for $6,900 Which Transit When Local Institution Closed Doors. Charlotte Observer, 19th. A claim of against the ceiver the defunct Commercial National bank of Statesville was lowed Judge Yates Webb in United States district court yestermorning the suit Gilbert, trustee for the Audrey Spinning mill Weldon, against Cotton Mills $6,900 Bank Trust Company, the Commercial National Bank Raleigh, the Federal Reserve Bank of Richmond, and the Commercial National Bank of Statesville. The suit was brought to seek collect the amount check the Phoenix Coton Mills for $6,900 drawn on the extinct Statesville bank, which transit when the institution closed its doors. In ruling on the case, Judge Webb allowed non-suit in the of the Federal Reserve bank Richmond and the National of Raleigh. He directed verdict of Weldon and Trust Compand and Cotton Mills. disposing the matter further, he ordered bank to pay of $5,400, which has willpay from fund, and then plaintiff claim, for difference the amount the face of the check and the paid against the defunct bank and its receiver.

8. January 21, 1932 The News and Observer Raleigh, NC
Article from The News and Observer, January 21, 1932

Click image to open full size in new tab

Article Text

COMPROMISE REACHED IN HARD FOUGHT CASE Receiver of Closed Bank Sues Hotel Company On Unpaid Notes Statesville, Jan. the end of hard fought legal battle United States District court here, the case the receiver of the Commercial National Bank against the Henkel Hotel Company was settled this afternoon but the exact terms will not be made known until in open court tomorrow morning. The original claim of the defunct bank receiver against the hotel company was on notes alleged have been unpaid, aggregating $50,000. The plaintiff suited $30,000 of these notes during trial. The late Ausley, cashier of the defunct Commercial National Bank, whose doors closed next day after Ausley's death April 18, 1928, was at the same time treasurer of the hotel company, of Vance Hotel. Following the closing bank number notes of the hotel company were found the late cashier's desk and vaults the bank with evidence they had been paid. In ting up claim $37,000 the hotel company alleges that D. M. Ausley, as secretary hotel company, used funds of that coming into his for the benefit of the and that the hotel company received no Its acount. By the terms of the agreement in case the trial will be terminated Thursday with agreement by coun sel either side. number of other cases in which the defunct Commercial National Bank is plaintiff snd local citizens are defendants are the calendar for trial later this week.

9. December 14, 1932 The Charlotte Observer Charlotte, NC
Article from The Charlotte Observer, December 14, 1932

Click image to open full size in new tab

Article Text

MORE ABOUT BANK RECEIVER STARTS ON SECOND FRONT. clients of Hugh Mitchell, attorney for the Jones family, informed him that they saw Mr. Jones on highway No. 10, apparently headed toward Asheville, about o'clock that afternoon. At that time, the women told Mr Mitchell, Mr. Jones was in front of the automobile apparently examinIng the front of the machine. The place where he was seen is about seven miles from Statesville. Police in the larger cities of the state have been asked to conduct TURKEY search for the missing man and the automobile he was last seen in. Mr. Jones, who sang in the choir DINNER of the First Presbyterian church, was described as being five feet eight inches tall, weighing 175 35c pounds, and having sandy hair. When last seen he was wearing dark blue suit, light felt hat, black shoes, and salt and pepper colored Fith Floor top coat. He took no extra clothing or toilet articles with him, Mrs. Dining Room Jones said. Close friends here are of the opinion that Mr. Jones is in seclusion in remote section of the mountains of western North Carolina, following such life as Col. Raymond Robins lived during the period he suffered from amnesia. Mr. Mithcell said friend of Mr. Jones reported he had seen the receiver in Altanta, Ga. Authorities there are now checking this report, stated. When the Commercial National bank closed in 1928 Mr. Jones came to Statesville from Wilmington as assistant to Mr. Williams who was acting receiver. Upon the latter's death in 1930, Mr. Jones was appointed receiver HAD APPOINTMENT He was scheduled to have met Mr. Spradlin at the bank about 12 o'clock on the day he disappeared. Mr. Spradlin notified the comptroller of the currency in Washington, who relayed the message to the department of justice in Washington who sent agents into the field to help locate the missing person. check is now being made of the bank's books. which is expected to be completed today, it was stated.

10. December 14, 1932 The Durham Sun Durham, NC
Article from The Durham Sun, December 14, 1932

Click image to open full size in new tab

Article Text

STILL NO TRACE OF STATESVILLE BANK RECEIVER No Discrepancy in Accounts Has Been Reported; Believe He May Have Sought Rest mystery the disappearance eight days age of former receiver for W. the Commercial National bank here, remained today as auditors neared the end of their search through his accounts for some clue Frends of Jones, who said the was expected to be complete today. said they were Informed no discrepancies had been found and redoubled their efforts trace the missing man through other channels Meanwhile, Mrs. Jones and her 23 year-old son clung the theory that Jones has met with foul play. while some friends entertained an theory that he had sought to lose himself in the North Carodid Colonel mond Robins. prohibition To support this theory they quoted the of two clients of Hugh Mitchell, who also torney for the family, that they saw Jones standing in front of his car on the Asheville highway from here m the day he disappeared Dec. 5.

11. December 21, 1932 News and Record Greensboro, NC
Article from News and Record, December 21, 1932

Click image to open full size in new tab

Article Text

Earl W. Jones Found In Stupefied Condition In Hotel At Wilmington DOOR LOCKED Missing Statesville Bank Receiver Had Registered At Hotel Last Friday. RECOGNIZED BY FRIENDS Dec. search for Earl Jones ended here today when the missing Statesville bank receiver was found locked hotel physician said he was suffering from mental possibily amnesia. Jones, who receiver of the Commercial National bank here several years ago, identified by number of friends and his sister-in-law, Miss Annie Herring, but he no indication of having When found lying across bed in the Fear hotel, the old man appeared to be in stupefied Officers and carried him to an where he was taken to hospital "Purely Menta. Condition. Dr. Koonce. physician attending Jones, said his "stupor purely mental Physically Dr. Koonce said, his condition normal. "There's too much Jones mumbled when found. Physicians he continued to repeat "there's too much noise" the hospital. Sheriff David Jones wired he chief bank examiner at Washington advising him of Jones' discovery asking instructions. Herring wired Jones' Statesville understood she would arrive tomorrow Jones disappeared from Statesville December three hours before turned over his duties receiver the Commercial Nabank to Spradlin. An the bank's books now made. finding of Jones recalled the

12. December 24, 1932 News and Record Greensboro, NC
Article from News and Record, December 24, 1932

Click image to open full size in new tab

Article Text

EARL NEW HANOVER Former Bank Receiver Formally Charged With Embezzlement of Funds. WILL ASK $5,000 BOND Wilmington, Dec. (AP) Shortly after warrant was issued charging Earl W. Jones with misapplying and embezzling funds of the Commercial National bank of Statesville, the bank's former receiver was removed from hospital to the New Hanover county jail tonight. Jones been in the hospital since his discovery here Tuesday after he had been missing more than two weeks. Friends said he was victim amnesia, warrant signed by United States Commissioner Vonno Gudger, of Asheville, received here early tonight new one was issued here by United States CommissionPorter Huffman. Charges contained in affidavit Frank Patton, of Morganton. United States attorney the western specifically allege that Jones $1,600 of the bank's money. The (Continued on Page Five)

13. December 25, 1932 Kingsport Times Kingsport, TN
Article from Kingsport Times, December 25, 1932

Click image to open full size in new tab

Article Text

Bank Receiver to Face Charge WILMINGTON, N. C., Dec. 24 (AP)-Earl W. Jones, former Statesville bank receiver, was released from the new Hanover county jail under $5,000 bond tonight for appearance on charges of misapplication and embezzlement of funds. The ex-receiver of the Commercial National Bank of Statesville waived preliminary hearing and is to appear in federal court at Statesville April 24 for trial. Immediately after leaving the jail Jones presumably left for His bond was signed by his wife and Miss Anna Herring, of United States Commissioner Por ter Hufham said. Jones' son, A Earl Jones, arrived here today with bond papers signed by Mrs Jones and said he and his fath. er would return to Statesville to. night. Papers formally placing Jones under arrest were served on him in jail this morning by Jack Cussons of Raleigh United States deputy marshal. Jones was jailed last night, after a copy of a warrant for his arrest was received here. along with an affidavit, charging him with tak ing some $1,600 of the bank's money in small sums over a two year period. Jones was found in a hotel here last Tuesday. after he had been missing for 15 days. Physicians said he was suffering from a mental ailment but for the past two days he has admitted recognizing friends and relatives, which he did not do when found.

14. December 25, 1932 The Charlotte Observer Charlotte, NC
Article from The Charlotte Observer, December 25, 1932

Click image to open full size in new tab

Article Text

Jones Posts $5,000 Bond To Get Free WILMINGTON, Dec. Earl W. Jones, former Statesville bank receiver, was released from the New Hanover jail under $5,000 bond tonight for appearance on charges of misapplication and embezzlement of funds. The ex-receiver of the Commercial National bank of Statesville waived preliminary hearing and to appear in federal court at Statesville April 24 for trial. Immediately after leaving the jail Jones presumably left for Statesville. His bond was signed by his wife and Miss Anna Herring of Wilmington, his United States commissioner Porter Hufham said. Jones' son, A. Earl Jones, arrived here today with bond papers signed by Mrs. Jones and said he and his father would return to Statesville tonight. Papers formally placing Jones under arrest were on him in jail this morning by Jack Cussons of Raleigh. United States deputy Marshal Jones was jailed last night, after a copy of a warrant for his arrest was received here, along with an affidavit, charging him with taking some, of the bank's money in small sums over two year period. Jones was found in a hotel here last Tuesday. after he had been missing for 15 days. Physicians said he was suffering from a mental ailment, but for the last two days he asadmitted friends and relatives, which he did not do when found. In a single day, scientists find that a swallow eats 500 to 600 flies.

15. December 30, 1932 Carolina Watchman Salisbury, NC
Article from Carolina Watchman, December 30, 1932

Click image to open full size in new tab

Article Text

# Rowan Solons Maintain 'Open Mind' # Carolina Holiday Deaths Reach 19 # Crime And Autos Take Large Toll # 1 Also Die In Sister State Young Woman Member Of Wedding Party Dies As Auto Turns Over Man Shoots Self To Death At # NEWS BRIEFS ARRESTED Wilmington.—Shortly after a warrant was issued charging Earl W. Jones with "misapplying and embezzleing" funds of the Commercial National bank of Statesville, the bank's former receiver was removed from a hospital to the New Hanover county jail. Jones had been in the hospital since his discovery here after he had been missing more than two weeks. Friends said he was a victim of amnesia. Hollywood's Baby Stars for 1933 Achievement # GOOD MORNING Husband (in car): Great heavens! The engine is terribly overheated. Wife (calmly): Then why don't you turn off the radiator? The wife wrote from a fashionable hotel—"Dear John: I enclose the hotel bill." John responded—"Dear Mary: I enclose check to cover the bill, but please don't buy any more hotels at this figure; they are cheating you." Mrs. Reed (with newspaper): # Not Pledged To Special Legislation # Hope Session Will Be Short Economy And Reduction Of Taxes Two Of Outstanding Problems To Be Solved

16. February 1, 1933 News and Record Greensboro, NC
Article from News and Record, February 1, 1933

Click image to open full size in new tab

Article Text

COST BIG ITEM. Creditors the Commercial National Statesville, which closed doors April 18, 1928, are wondering whether the economy government can't be applied to the settlement the businational banks. The report receiver of December 31. 1932, shows that there been lected disbursed to creditors them, per There in the the receiver troller of the currency cash and the uncollected assets and stock subscriptions total The set great store near million uncollected debts. Their attention centered time the fact officials the government had on the salvaging job for little more than four years and eight months the time the report and that the salvaging cost them at the rate of proximately year. At same rate cost the remainder the collections, any may be largethe has been lifted. Figures for comparative such cases. affairs the were in more usual no doubt. But that is considered excessive and creditors ready join in mand bank reform that liquidation banks prevails, foundation, receiverships expensive. The notion that those handle the affairs have too interest the that they proceed the theory that creditors anyhow the should liberal the yield. must mind, that the salvaging are the supervision the of the United States and cost are made approval higher where reform must begin there any reform. CLARK.