124. Houston National Bank (Dothan, AL)

View Charter #7932 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
7932
Charter Number
7932
Start Date
October 6, 1931
Location
Dothan, Alabama (31.223, -85.390)

Metadata

Model
gpt-5-mini
Short Digest
549c7768

Response Measures

None

Receivership Details

Depositor recovery rate
41.1%
Date receivership started
1931-10-15
Date receivership terminated
1917-09-11
OCC cause of failure
Economic conditions
Share of assets assessed as good
29.4%
Share of assets assessed as doubtful
55.5%
Share of assets assessed as worthless
15.2%

Description

The bank suspended business on October 6, 1931 and was taken into possession by the national bank examiner/Comptroller; a receiver (John R. Vann) was later managing liquidation and dividends were paid to depositors. No explicit, discrete 'run' triggered by misinformation is described — only heavy withdrawals before the closing — and the bank did not reopen (remained in liquidation under a receiver).

Events (6)
1. October 3, 1905 Chartered
Source
historical_nic
2. October 6, 1931 Suspension
Cause
Government Action
Cause Details
Taken into possession by the national bank examiner under direction of the Comptroller of the Currency; directors voted to close at a meeting and examiner assumed control following failure to open for business on Oct. 6, 1931.
Newspaper Excerpt
This bank suspended business after the close October ... in charge of Reed Dolan, national bank examiner, under the direction of the comptroller of the currency.
Source
newspapers
3. October 15, 1931 Receivership
Source
historical_nic
4. November 21, 1931 Other
Newspaper Excerpt
John R. Vann, as Receiver Houston National Bank, ... did on the 21st November, 1931, file in ... his petition, accounts and for the final settlement ... of the Houston National Bank, of Dothan, ... John R. Vann is receiver.
Source
newspapers
5. December 22, 1932 Other
Newspaper Excerpt
Dothan, in the defunct Houston National bank Saturday received their first dividend since the bank closed last Oct. One hundred thousand dollars was distributed among the depositors.
Source
newspapers
6. May 13, 1933 Other
Newspaper Excerpt
Former president ... and former assistant cashier were arrested today indictments charging violation the national banking act. ... Bank failed in 1931. The suspended on October 1931, and since has paid 18 dividend under the per liquidation management of John R. Vann.
Source
newspapers

Newspaper Articles (8)
1. October 7, 1931 The Dothan Eagle Dothan, AL
Article from The Dothan Eagle, October 7, 1931

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Article Text

INFORMATION YET ON DEPOSITS CLOSED BANK Bank Examiner Dolan and Three Assistants In Charge of Bank's Affairs Reed Dolan, national bank aminer, who arrived in Dothan this morning from Montgomery, with three assistants take over the fairs of the Houston National bank, which did not open for business yesterday, said today he had not tim eyet to Inspect the books of the financial Institution closely enough to tell how much money deposit when the bank closed Officials of the closed bank said yesterday that the bank had approximately $400,000 on deposit despite heavy withdrawals few before the closing. More than $700.on deposit In the bank cording previous statement will be some time before the books of the bank can be checked and the exact financial condition of the institution known, Examiner Dolan said today. Officials of the bank said yesterday that the loans and discounts totalled approximately $700,000. The bank's capital stock and surplus $300,000 Assistant bank examiners who assisting Mr. Dolan are Miller, Snead and Johnson Mr. Dolan said today he couldn't tell how long would be required for the four to complete the work the bank. A sign placed on the doors of the bank today In addition to the notice of the closing yesterday "This bank suspended business after the close October in charge of Reed Dolan, national bank examiner, under the direction of the comptroller of the currency. Payments of any maturing obligations will be accepted daily between the hours of and Directors of the Houston Na tional bank, which, was organized 26 years ago, being the second bank in Dothan. voted to close the bank at meeting Monday night. Depositors of the bank were ported to have numbered approximately 1,500. majority of the positors are reported to be Dothan residents. Among the depositors was the City of Dothan, which had approxImately $40,000 on deposit in the bank. Most of the city's deposit consists secured funds, and city officials said today that they didn't believe the city would lose penny result of the closing of the bank. The funds, however, will be tied for time and will dicap the operation of the city temporarily, the officials explained. Between $8,000 and $10,000 of the funds of county school districts also was on deposit In the bank. but the general funds of the counschools are in another bank. county school officials said today.

2. October 22, 1931 The Dothan Eagle Dothan, AL
Article from The Dothan Eagle, October 22, 1931

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Article Text

AT EUFAULA BANK CLOSED TODAY Withdrawals for of Commercial Closing National Bank the last 30 withdrawals closing of the about the brought National bank, offiCommercial financial institution of the failure to open the said here after business today. doors for meeting of the directors was It was decided night and last to open for business today. national bank examReed Dolan, the affairs of who took over the Houstono National bank at DoOctober than after its closing the Commercial in charge of National bank here today after the did not this morning. bank open Efforts will be made to reorganCommercial bank, it was the had deposits of said. The bank $124,000 on hand at the close of busofficials said. Deyesterday, the bank totalled $227,000, posits in to the July statement. according The bank is capitalized at $105,000, with $50,000 surplus. Humphrey Foy was president of the bank. Closing of the bank leaves Eubank, the Eufaula with only one Trust Co. The East faula Bank & Alabama National bank was closed here in 1929, John Vann, who liquidating the Houston National bank, being receiver.

3. December 9, 1931 The Dothan Eagle Dothan, AL
Article from The Dothan Eagle, December 9, 1931

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Article Text

Solon Faces Pen In Tax Fraud Estate of G. NOTICE S. Jackson, in the Probate Court of County, Alabama. To Willie Mae Callahan for G. S. Jackson, Jackson, Howell, Jr. and and Jackson, Jr., and Jane Jackson: You are hereby notified John R. Vann, as Receiver Houston National Bank, Alabama, did on the 21st November. 1931, file in the his petition, accounts and for the final settlement of ministration of The Houston tional as administrator Bank, of Dothan, of the estate the said G. S. and that the Court Jackson. fixed deceased; the 21st day of December. the time, and the Courthouse Dothan, Houston County, as the place for the hearing said petition and the and passing upon said vouchers, at which time and you may appear and show any you have, why said petition should not be granted and said account be passed upon and allowed. Issued this the 24th day vember, 1931. H. K. MARTIN, Judge of Probate Court. N25-D2-0 held in the District of Columbia supreme court. The case was test of the pres. ident's appointive power, the $1. ate having withdrawn its approvel of Smith's nomination after viously approving it. Judge Gordon held that Smith could not be removed under the circumstances save by the president's orders. The case probably will be appealed to the higher court before a final ruling on the principles involved.

4. December 22, 1932 The Evergreen Courant Evergreen, AL
Article from The Evergreen Courant, December 22, 1932

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Article Text

Dividend Dothan, in the defunct Houston National bank Saturday received their first dividend since the bank closed last Oct. One hundred thousand dollars was distributed among the depositors. Approximately was on posit when the bank suspended busiJohn R. Vann is receiver.

5. December 24, 1932 The Greenville News Greenville, SC
Article from The Greenville News, December 24, 1932

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Article Text

Makes $8,500,000 Available As Dividends For 59 Closed National Banks MERRY CHRISTMAS FOR MANY IS ASSURED First National At Spartanburg Among Institutions Getting Funds WASHINGTON, Dec comptroller of the currency played Santa Claus today, ordering more than eight and half million dollars distributed immediately to the depositors of 59 closed national banks. The amount was the largest disbursed in any month recent times and compared with $3,000,000 in vember. It brought the total for the year paid depositors to $106.000,000. The receivers of the institutions will make the payments. The comptroller, making special efforts to give merry Christmas to the borrowed some of the money from the Construction Finance corporation. This was done by pledging good assets of some of the suspended banks. The money will be repaid when affairs the banks are further liquidated. The money is available for distribution now and should be paid the depositors by tomorrow night. Awalt. the acting comptroller said that any of them did not get would be because the depositor failed to call for his check Awalt later announced 58 of the banks, to give the name of one which had been merged with another bank. He said the money for the divie dends had been going ahead since early in the month the last of had been sent from the today. Southern banks included: Wayne National, Goldsboro, North Carolina; Houston National, Dothan, First National, First National, Murfreesboro, Tenn. First National, Thomasville,

6. May 13, 1933 The Dothan Eagle Dothan, AL
Article from The Dothan Eagle, May 13, 1933

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Article Text

FINANCIAL INSTITUTION Former President and Former Assistant Cashier Free Under Huge Bonds John former president the defunct Houston National and Ernest former assistant cashier, were rested today indictments charging violation the national banking act. The charges were turned federal grand jury Montgomery yesterday following brief investigation of the bank's Four indictments involving the two men were brought by the quisitorial body. Walden and Sanders accused jointly on three of the true bills while the fourth indictment accuses Walden alone Bond for each of the former bank officials was set $5,000 on each indictment, all of which were posted immediately after the men's rest. The bonds were made returnable for the next term court which means the could be called for trial the opening session this month the following term, officials said BANK FAILED IN 1931 The suspended on October 1931, and since has paid 18 dividend under the per liquidation management of John The bank was capitaliz$150,000 and surplus $150,000. the time of closing deposits talled $400,000 and the loans and discounts $700,000 according to the bank's last statement. The Houston National Bank second financial institution organized in Dothan and had in business years the day preceding its closing The bank closed no statements other than the one posted on the given President Sanders then reported to be at his home

7. May 17, 1933 Southern Star Newton, AL
Article from Southern Star, May 17, 1933

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Article Text

Former Officials of Nat. Bank Arrested On Indictments DOTHAN, Ala., May Sanders, former president of the defunct Houston Naitonal bank, and Ernest Walden, former were arrested today on violation of the dictments charging national banking act. The charges were returned by federal grand jury Montgomery yesterday brief investigation of the lowing bank's affairs. indictments involving the Four brought by the men were body. Walden and Sanquisitorial accused jointly on three ders were true bills while the fourth the accuses Walden alone. indictment for each of the former bank Bond set at $5,000 on each officials was indictment, all of which were postafter the men's immediately bonds were made returnable term court which the next the could be called for men the session this opening at the following officials said. Bank Failed In bank suspended business and since has dividend under the cent management of John Vann. The bank was capitaliz$150,000 and surplus the time closing deposits and illed and discounts $700,000 loans to the bank's last stateNational Bank Houston financial institution Dothan and had business 26 years the its closing. day the statements other posted on the door out. Sanders reported be

8. May 18, 1933 The Andalusia Star-News Andalusia, AL
Article from The Andalusia Star-News, May 18, 1933

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Article Text

Former Houston National Bank Officials Arrested John Sanders, Sr., former president of the defunct Houston National bank, and J. Ernest Walden, former assistant cashier, were arrested today on U. S. indictments charging violation of the national banking act. The charges were returned by a federal grand jury at Montgomery Friday following a brief investigation of the bank's affairs. Four indictments involving the two men were brought by the inquisitorial body. Walden and Sanders were accused jointly on three of the true bills while the fourth indictment accuses Walden alone. Bond for each of the former bank officials was set at 5,000 on each indictment, all of which were posted immediately after the men's arrest. The bonds were made returnable for the next term of court which means the men could be called for trial at the opening session this month or at the following term, U. S. officials said. The bank suspended business on October 6, 1931, and since has paid an 18 per cent dividend under the liqui dation management of John R. Vann The bank was capitalized at $150,000 and surplus $150,000. At the time of closing deposits totalled approximately $400,000 and the loans and discounts $700,000 according to the bank's last statement. The Houston National Bank was the second financial institution to be organized in Dothan and had been in business 26 years the day preceding its closing. The day the bank closed no statements other than the one posted on the door were given out. President Sanders then was reported to be ill at his home.-Dothan Eagle.