17850. First National Bank (Chattanooga, TN)

View Charter #1606 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
1606
Charter Number
1606
Start Date
January 1, 1933*
Location
Chattanooga, Tennessee (35.046, -85.310)

Metadata

Model
gpt-5-mini
Short Digest
6096370e9483c572

Response Measures

None

Receivership Details

Depositor recovery rate
98.4%
Date receivership started
1934-01-03
Share of assets assessed as good
28.8%
Share of assets assessed as doubtful
68.4%
Share of assets assessed as worthless
2.8%

Description

The articles discuss the First National Bank of Chattanooga and the receivership/closure of its $10,000,000 mortgage participation certificate pool and related receivership for the bank. There is extensive chancery litigation (Shinbaum suit) alleging substitution of collateral and insolvency; receivers were appointed and the pool (and the bank) are treated as closed with receivers (Charles Coffey, E. H. Lawman, etc.). No contemporaneous bank run (withdrawal crowd) is described; instead the bank/pool is in receivership/closed. Article dates indicate the receivership was in effect by January 1933 (article text: pool thrown into receivership last January) and Lawman formally took duties Sept 17, 1933. I corrected minor OCR glitches in names and punctuation when extracting snippets.

Events (6)
1. November 8, 1865 Chartered
Source
historical_nic
2. January 1, 1933* Suspension
Cause
Government Action
Cause Details
Chancery court receivership ordered for the First National's mortgage participation certificate pool amid insolvency and litigation alleging substitution of collateral and breach of trust.
Newspaper Excerpt
the pool thrown into receivership last January
Source
newspapers
3. May 17, 1933 Other
Newspaper Excerpt
Shinbaum's suit seeks new receivers ... alleges substitution of less valuable collateral for securities of participating certificates ... requests that the order appointing the First National bank receiver for the participating certificates ... set aside and new receivers be appointed. (Chattanooga Daily Times, 1933-05-17).
Source
newspapers
4. September 17, 1933 Receivership
Newspaper Excerpt
Lawman, former First National bank, became receiver at noon for the First National's mortgage participation certificate pool, and was ordered ... to execute $50,000 bond. Lawman's appointment was made by the chancellor ... $500 month ... he tendered his resignation ... to sever all relation with the bank. (Chattanooga Daily Times, 1933-09-17).
Source
newspapers
5. January 3, 1934 Receivership
Source
historical_nic
6. April 24, 1934 Other
Newspaper Excerpt
Receivers of Two Closed Banks Tell Depositors to Await Orders ... it will not be necessary for First National bank participation certificate holders to file claims ... statements from receivers Paul Kent and Charles Coffey. (Chattanooga Daily Times, 1934-04-24).
Source
newspapers

Newspaper Articles (13)
1. May 17, 1933 The Chattanooga News Chattanooga, TN
Article from The Chattanooga News, May 17, 1933

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SHINBAUM SUIT MISLEADS, SAYS BANK ATTORNEY Frierson Asserts Bankers Will Deny Substitution of Collateral Behind Certificates. The suit of Shinbaum against the First National bank, asking the appointment of receivers to the real estate participating certificates, is "misleading and vigorously denied.' William of the law firm of Williams the bank's said "The bank is prepared to disprove all the charges misconduct in the management the participation certificates." Mr. pared The hind certificates everything else, suffered the depression: but the officers the bank are confident with return of thing like normal real estate ket. they can in time by judicious and be liquidated that certificate holders will lose little nothing They feel sure that there is no for the low estimate placed on them in Mr. Shinbaum's Charges Substitution Through Attorneys Charles Moore Alper Mr. Shinbaum filed in Tuesday noon alleging that the stituted for valuable posted to secure row the Reconstruction Finance The suit also alleged that such acts the bank "breach trust" and examples the rectors First bank the Chattanooga outgrowth the liable to depositors and the National started selling the set forth in the them blocks and kept funds segregated, but later this plan pooled money. Cash Certificates. The bank the petition declares, cash them par, plus When the started. holders tificates began to cash their certifi cates and this drained the cash assets forced to borrow money For this

2. May 17, 1933 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, May 17, 1933

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BANK OFFICIALS SHIFTED ASSETS, SAYS PETITIONER FIRST NATIONAL TARGET Shinbaum's Suit Seeks New Receivers for Organization. COLLATERAL SWITCHED, CHANCERY BILL STATES Substitution of Less Valuable Collateral for Securities of Participating Certificates Among Numerous Charges. Charges that officials of the First National bank took down valuable collateral posted secure participating certificates desirable and unmarketable securities for the purpose of money from the Reconstruction Finance corporation were contained in petition filed yesterday in chancery the petitioner who leges that he holds $5,000 participating certificate, made the charge through Attorneys Charles Moore and Alper. He requests that the order appointing the First National bank receiver for the participating certificates and as receiver set aside and new receivers be appointed. They are interested parties, he alleges. Such acts substitution. the petition charges, amount "breach trust" the part the banking and willful within the meaning of the statutes of Tennessee. making the directors the cor(First National bank and First Securities company) liable creditors. petition charges "that the right of substitution claimed and exercised by the bank under color of which dealt with mortgages its and only treated and the of hand as constituting of the trust the amount of the certificates outstanding, not legal not with the idea of pledge and hypothecation of such mortgages security wrong upon the rights of your petitionand other holders of trust certificates." Arguments will be heard next Tuesday morning o'clock by Chancellor B. Garvin. An original bill was filed some time ago by the law firms Thomas, Coffey Folts and Sizer, Chambliss Sizer. The petition recites that when the First National started selling certifito investors in mortgage trust pool them in blocks and kept the funds abanplan and pooled the money into one 1930 total of had been pooled and collateral was placed in the participating certificate property the holders of the certifiThe contract behind the certificates, the petition alleges, the may them any cent When plus per par, started holders of the certificates began to cash their tificates drained cash of the bank that forced assets borrow money. Accordingly the petithe bank took the tion posted the certificates put them up with the ration. The bank, short time prior taken the Chattanooga National bank, did heavy borrowing through this system. charged. Less desirable and unmarketable were for securities such extent that good value the has been by value of the accordthe allegations. There outstanding the certificates, further that the bank had right Admitting its ties, the petition charges that did not however, to substitute have the right, with less valuable assets. this act the board of directors By officers the First National bank and liable the face value the certificates. the petition claims. National bank was insolvent The First prior the date insolvent. tion the further charged bank Chattanooga National that the the assets took National bank except the First certificates. courts jurisdiction The the First National since under the has gone of the and the according can appoint further insisted petition. held that the federal that First National bank the liable First for acts transactions Securities since the subsidiary the bank. concern the the liable for the paybank primarily ment of who Attorney number of certificate trustee for was named co-defendant holders, the He was trustee to file the original litigation the bank he would make Asked night the the any comment on would make no statetorney said he text of the bill follows: full come and file this their petition in the above styled bill. cause nature of an original holdbehalf themselves trust certificates and National Chattathe First and respectfully unto the court: Your petitioners are the owners and holders due issued debt. trust National bank, Chattanoothe First Tenn., which certificates recite and to evidence the fact that your purport the petitioners own an amount their of trust held by the First of such certificates Tenn The petitioners are held your follows: II. would now show Your that the First National bank, of Chatand for many years tanooga, Tenn., chartered and been corporation Column One. See Page Seven,

3. June 15, 1933 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, June 15, 1933

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RECEIVERS MAP FIRST NATIONAL MORTGAGE SALE Proposal to Be Given Hearing by Garvin June 24. CERTIFICATES PROPOSED AS MEDIUM OF EXCHANGE Frierson Says Plan to Sell Property to Ones Holding Paper at Price Slightly Over Mortgage Value. plan to offer First National bank mortgage participation certificate holdproperty which the receivers have purchased foreclosure sales change participation certificates by the receivers Chancellor W. B. Garvin and hearing on the matter scheduled for June The was made through Attorney Frierson, represents Lawman and the First National bank. receivers the participation certificate mortpool. the plan of the receivers. Attorney Frierson pointed the foreclosed property to certificate holdprices higher than the face value mortgages issued. Also, said, will be necessary for the pay either in cash secured notes the expenses which been out the receivers foreclosing on the property, delinquent taxes and other necessary items. He said further the receivers believe they can realize bargain price considerably in excess of the mortgage using certificates the medium exchange Through this method the receivers will be able to many the certificates for foreclosed property and leave ratio tween the pool and the certificates in favor certificates Attorney Frierson's statement folreport has been filed but not intended ask for unall parties have had fully consider the Hence brought to the attention the chancellor the call the motion docket hoped that will then pared disapproval make any suggestions improve the plan receivers and their counsel have realized that the most impediment the speedy the fact that on account depression. many closures unavoidable and further because the lack the will compelled to buy in the closed property. this large amount of real estate acquired and probthe the original and the property Under this quire an indefinite time which volve expense in way surance caring for the property which exceed income that and their counsel have felt that imperative possome to create demand foreclosed reasonable prices. after careful the receivers have recommended court plan they promote interest holders. that the receivers sell better prices than can sold for cash and they accept participation certificates in payment the purchase price except that. cases, the purchaser shall quired cash whatever out for expenses foreclosure, delinquent taxes, certain that the property can be sold better prices for than cash and The receivers will sell prices excess the original mortgages they prices ably excess the mortgages result quicker sales better prices properties not now salable and the repayment the pense foreclosing and property At the same time, those are compelled their during period of liquidation be demand certificates with that better prices would seem that the only possible objection that certificates used purchase property would, way, full while less mately paid others. this objection than real. using his will nominally getting in full be more for property than can otherwise sold for and will be relinquishing all interest the mortgages which do not have be foreclosed and which finally paid in full full depend what the realize the property bought He, rather takes the risk the property being ultimately worth the amount of the original the amount of the certificates he turns only the amount the original ing holders changed their interest which, foreclosure has failed pay the mortgage which any other way, made to pay that much, and the carrying which may be expensive for the inter- See Page Column

4. June 27, 1933 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, June 27, 1933

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SUED; BANK'S RECEIVERS WITHHELD DECLARATION with the Another in connection LUBRICATION SERVICE bank's receivership National certificate mortgage the participation yesterfiled chancery withheld by day, although Lynch. by John Lee, The suit brought individually Mrs. John and ElizaMarket trustees for Robert Mrs. Augusta beth Mrs. Lillian Ray Stanfiel, for 24-HOUR Jean Mrs. Pat Wrecker Service Pat Howell, Mary E. Hamilton county. Phone 6-2126 of Letitia A. Ord Fassnacht Mrs. Emily & Son Howell Washington, Complete Automobile Service First First National bank, against S. CofCharles Securities corporation, Corner 13th and Fort Sts. Column Three. See Page Twelve,

5. July 10, 1933 The Chattanooga News Chattanooga, TN
Article from The Chattanooga News, July 10, 1933

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company. the First National bank and the Chattanooga National are one and the same thing The petition further alleges that the Chattanooga National was formed pri marily of insolvency The formation of the institution was fraudulent according to the petition The petitioners further allege that part of the 000,000 in participation certificates were sold when officers of the bank knew the pool was insolvent The petition reiterated the contention in the first suit that the officers of the bank had substituted good collateral behind the certificates with collateral not as so that loan could be obtained from the Reconstruction Finance at the time the Chattanooga National bank was These exchanges were made for the benefit of the bank and not the certificate holders, it is Removal of E. H Lawman and the First National bank as receivers is requested in the petition The names were added to the petition of Mr Shinbaum Mrs. Julia in certificates Hale F H. 82 Hudder tora were joined to The Rev 323. and Mrs Hudder

6. August 27, 1933 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, August 27, 1933

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POOL FIRM IS PROPOSED Certificate Holders' Group Asks Garvin's Consent to Form Company. SAYS PLAN WOULD SAVE ON COSTS OF OPERATIONS Proposal Presented by Beck and Butterfield Would Let Those Who Wished Put Holdings in New Body for Liquidation. Organization of corporation wind up the affairs of the First National bank's $10,000,000 mortgage participation certificate pool recommended yesterday to Chancellor W. Garvin by committee of certificate holders headed by Dyer Butterfield and W. Sherman Beck, Chattanooga busimen. The corporation, however, could not be formed without the consent the chancellor, as the participation certificate pool in the hands ceivers under the jurisdiction of the Only such certificate holders would desire enroll in the corporation woud have to do the chancellor grant the request of the committee. of the sets belonging such holders would from the and set up assets the books of the corporation. The chancellor approved sale by the yesterday of piece of Signal Mountain property Read Voight Beck said the Voight sale 50 per mortthe plus the mortgage being the price Mr Voight First National certificates. Serving with Mr. Beck and Mr Butterfield Withers Howell. Walter Johnson, W. Schwartz Thompson Beck chairman Mr Butterfield Garvin took the under advisement of the report follows mission the those tificate who permitted under supervision the court withdraw their part the assets the pool and form corporation their own to minister their the formation of owned by tificate holders, we believe that such corporation able rive income and assets more economical basis than can done by receiver working under court orders. After careful survey income expenses which the present the would able to function saving with the income missions and commissions from rents collected. Under proposed plan corporation would given broad powers operation. able to the duties now perform and in trade for certificates, sell mortgage notes, to for loans and the home bank for their bonds, opinion board directors it is considered advisable to do "Each holder who subone share stock no par value for for lesser amounts. The initial expense forming corporation and the first working capital should be met loan secured income from the participation mortgage pool. cates themselves be under depository board directors be elected whose voting power based on the number shares owned the this corporation hinges upon the court's the withdrawals from the recommend the under made the survey that there be equiactive mortgage notes, mortgage notes property, etc. the participation certificate holders authorize the appointment of committee carry proposed under the supervision of the court "Inasmuch will take some time complete deposits and form the new corporation. the beneall "That court requested to grant the petition foreclosed for on the The purchaser pay in cash the cost the of the including any taxes which were due and the time the foreclosure and the cost, possession putting the property in repair, but the receiver should accept, at par, cer- See Page Nine, Column Four.

7. September 14, 1933 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, September 14, 1933

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LAWMAN RECEIVER'S JOB HE WANTS Moore's Opposition Fails to Change Garvin. BANK OFFICIAL REQUESTS TIME TO DECIDE MATTER Hearing Taken With Squabble Over Salary That Should Be Paid Session Due Saturday. Opposition to the appointment of of the First National of the tificate pool chancery court by Attorney Charles Moore. Chancellor W. Garvin, however. in elaborating his decree Tuesday stating that had "in mind" continuing he connection the bank, and, provided further. that agreement could be reached on the question the compensation the official until Saturday accept the hearing be held Saturday o'clock. would like little time consider the Lawman told the chancellor after being that his services receiver were desired, provided he met stipulations. me an important matter and one that shouldn't be decided too hastily. would like have two days in which to make up my chancellor said he had hoped to have the matter settled so that the new receiver could take charge the huge Saturday, ordered the National bank abdicate receiver. promised the chancellor, that for him to serve, he will remain in charge sor and qualified. He added that deeply appreciate the have in offering me the Moore, discussing Lawman's explained viously both First bank and Mr. Lawman receivers. receding that posithat conflicts between the of the the certificate holders, between Lawman certificate holdmean reflection upon man's allegiance due bank. that his in the funds that belong of this appointment will compel him turn upon the men have given employment for these years. there liability the holders from the have to turn on these chancellor interrupted to say to Mr. that the conthe question much salary the should paid. He his opinion, that sever with the First National bank before the appointment given In his defense. Mr. Lawman assertthat accept appointment will expect do all the duties the receiver or any one Mr. Moore's justified of the facts,' concluded. the salary the receiver found the widely separated. salary $300 month suggested Attorney Moore was lowest and William year for the banks, and Frierson. several was the highest Chancellor Garvin pressed the opinion Moore and Gen. Frierson others the much. Mr. however, too neighborhe hood the apMilligan That gested would acceptable certificate holders. At the opening the hearing denied edition The Times him that during hearing. the removal First National sought Mr. Lawman authorized Sizer would not receiver the First National bank were such statement Sizer declared foreign Mr. Lawman's concluded. the hearing both AttorFollowing Moore Charles neys defended the and they heard Mr. Sizer make attributed Judge Lynch announced the commitCoffey and will ready report Saturday Moore negotiations they making appraisement the assets in mortgage pool the certificate Saturday negotiating with the Beck Dragoo Ben estate for their Brown, ices in making the appraisal.

8. September 17, 1933 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, September 17, 1933

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LAWMAN TAKES UP DUTY AS RECEIVER Executes $50,000 Bond and Resigns Bank Job. Plan for Real Estate Appraisal Meets Opposition as 'Worthless Effort.' Lawman, former First National bank, became receiver at noon for the First National's mortgage participation certificate pool, and was ordered Chancellor W. B. Garvin to execute $50,000 bond. Lawman's appointment was made by the chancellor hearing yesterday morning at which the former bank official announced his decision accept the position $500 month. After returning his office from the court hearing, Mr. Lawman tendered his resignation vice-president of the board directors of First National bank. acceptance of the resignation has arranged, Mr. Lawman said. part the chancellor's agreement that Lawman should be required sever all relation with the bank. In statement issued after taking his new duties Mr. Lawman said: deeply appreciate the confidence Chancellor Garvin has shown in appointing receiver. fully understand the responsibilities and not expect administer this trust without making some without being subjected to criticism. However, under the court's direction, shall serve to the best my ability. earnestly solicit the the certificate holders and all interested attorneys. This matter vital concern to the entire community and must work together for all Mr. succeeds the First National bank and himself. were appointed when the pool thrown into receivership last January Since appointment co-receiver the bank has been criticized and the opposition to was brought the Charles C. Moore petition in chancery court which asked the removal of both the and Mr. Lawman. Action Mr. Moore's petition was taken last week. Questioned yesterday by the chancelto what would be his policy matter come up in which the interest the bank certificate holders direct Lawman said he would "submit to you follow your strictly There cash balance the pool now, formal report comby the receivers and filed yestercourt revealed. The report was prepared and read by former United States William L. Frierson. attorney the receivers. The cash receipts the receivership total the report shows. The receipts were credited in the report to the following items: Collected on principal of mortgages, collected from interest mortgages, fees collected from $136.10; collected from loans, $719.26; cash received on account of real estate sold, Disbursements: Participation certificoupons paid, expenses on foreclosed property, $13,436.87; advanced for insurance and taxes on mortgaged property, expenses, upkeep on estate owned, detailed report of the activities of could be compiled filed yesterday, to the short notice for report, Gen. Frierson said. The however, said he wantfuller statement of receivership's that it be compiled and filed with the court as Gen. Frierson's report included correction in sworn testimony of Receiver Lawman in which he said the First National bank has collected since the receivership total of $44,000 on mortcoupons which it took as security money advanced to certificate holdto the receivership. Receiver Lawman this stateGen. Frierson said, The total amount collected, the report stated. is Since appointreceiver the bank has collected interest and excess interest on the mortgages in the pool the sum of 207.90, according report. and report further said, has gone into general funds of the bank. The office of the receivership will have from the First Nathe chancellor directed. Arrangements will be made within

9. April 24, 1934 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, April 24, 1934

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BANK POOL CLAIMS NOT BE REFILED Certificate Holders Assured Books Show Status. Receivers of Two Closed Banks Tell Depositors to Await Orders. It will not be necessary for First National bank participation certificate holders to file claims chancery court order participate in any covery which may be collected from First National officials under recent decree of Chancellor B. Howell, of Nashville, Attorney B. Sizer said yesterday. From the offices of Receivers Paul Kent, of the Chattanooga National bank, and Charles Coffey, receiver of the First National bank, came statements no claims of depositors will be received until there order from the comptroller the currency to that effect. They explained that the comptroller may fit call for the positors the banks to file claims, but such action not been determined thus In conference with J. Milligan, attorney the receiver of the participation pool; H. Lawman, receiver pool, and Kent Coffey, Sizer discussed the question receiving claims the certificate case now in chancery court. Following the conference, Sizer said that "by consent of all parties former order of the chancellor in the Shinbaum case, requiring claims be filed in that case, will rescinded." The Shinbaum case, filed by Attorney Charles Moore, asked recovery against the officials of the First National bank for losses by certificate holders. Chancellor Howell, in an opinion, held the officials liable in certain While the case was pending, the Chancellor B. Garvin an order requiring all certificate holders to peitions of claim chancery court to participate in any recovery. At the conference yesterday it was agreed among the conferees that the list certificate which filed months claim the against any recovery, the conferees Another impression has been created certificate holders that they must file claim with Lawman ticipate the assets his receivership has on the mortgages in the Milligan yesterday action has and assets are being among the in accordance with the records of receiver. The offices of the three receivers were filled yesterday persons quiring as what take their Hundreds didn't at the offices phoned, they said. The what depositors will participate in the assessment against the stockholders First National bank still remained unyesterday There seemed dispute participation will share in the from the but to what the ticipate. was suggested official circles that lawsuit, lawsuits, may finally to settle the question. Kent Coffey. conference yesterday Rose Bobsin, special the comptroller's issued First tional bank tional bank reflected the books Chattanooga National bank. filing of claims necessary until orders are from the directing such When, and order the ample time for to their Already dispute is brewing among depositors whether they be participate the assessment from assessment against First being advanced that notified the liabilities First National its depositors didn't enter protest withdraw their funds gave implied consent novating the On other hand, argued that unless depositor continued deposit and check his account the bank, consent National neither expressly nor implication. The comptroller, under the federal judicial officer and his rulings carry the weight of judgment, appeal lies in the federal courts some instances. There appeal, however, his ruling levy up bank in that way get before The comptroller's order does not state stockholder, but merely directs receiver to assessment against the stockholders.

10. April 25, 1934 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, April 25, 1934

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RECEIVER ASKS LAWYERS' HELP ON ASSESSMENT Kent Unable to Decide Who Are of Defunct Bank. CASE MAY END IN COURTS Coffey Looks to Comptroller to Decide to Which Bank Each Creditor Belongs. Unable to decide who are the stockholders defunct National Paul Kent terday that he is seeking gal advice to the he should take carry the order of the comptroller directing 100 per cent. assessment against the holders of the bank's capital stock. The law firms Whitaker Whitaker and Sizer, Chambliss Kefauver were requested Receiver Kent to advise him what steps he should take to make the assessment. The attorneys called into the conference Receive. Kent Sizer, Estes Kefauver and Maj. Phil Whitaker. Both Mr Sizer and Maj. Whitaker have been studying First NaNational for some time, both having appeared attorneys in Shinbaum case, which holders of mortgage participation tificates sought to recover for any loss they might sustain from the officers and directors of the bank. In this case Mr. Sizer certificate holdMr. Whitaker represented Taylor Durham, who was First National, Chattanooga National and the First Securities company. Comptroller O'Conner ordered Receiver Kent to levy the assessment before May 28. The order directs Receiver Kent to "take all necessary proceedings, suit otherwise, enforce the extent the individual liability of the said stockholders.' The holder of the stock of record the First Securities company, adjunct of the First National bank. This company, according to court pleadings, insolvent and unable to meet its obligations. assessment against therefore, could be of little avail to the depositors and other creditors of the Chattanooga bank. The the First the identical with of First bank, being considby receiver and his attorneys possible source for recovery of the assessment. likely that tlement the question be reached in the which has arisresult the National bank First National bank the question who the depositors creditors National creditors of the Chattanooga National Receiver Charles Coffey, of the First said yesterday first steps towards settling this question would have to taken by the comptroller the Until this settled no distrirency. bution the assessment First stockholders can The against the National bank stockholders levied of May There 500 individuals hold First National stock. Under from has no choice push the There yesterday assessment be the many result of rigid enforcement the order were being preyesterday Many held savings from against the First When National bank closed its doors had deposits aggredeposits cent. has Kent said yesterday little another from the assets the bank unless the receiver able realize against holders the bank's capital stock. That cannot than the find place make an but the First

11. May 5, 1934 The Chattanooga News Chattanooga, TN
Article from The Chattanooga News, May 5, 1934

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Will Exercise Leniency With Stockholders Kent and Coffey Announce Policy by Comptroller in Bank Cases. Receivers Charles Coffey of the First National and Paul Kent of the Chattanooga National Bank Saturday authorized to grant extensions to stockholders of the two institutions are unable at this time pay the 100 per cent ordered on their The authorization to use leniency was in letters from Fouts, supervisor vision Banks the Mr. out lined detail the which be followed where cannot on the basis as set out in the first order. the basis lined largely the whether should pay the as should given time. This policy means will be considered an basis where would worked the original the Coffey explained. sist He said planned and gave careful would be their condition are unable Kent said that was intention steps to see that stockholders Chattanooga National can pay meet the sessment. He that am depositors possible He does without regard to their ability he said. did not release for publication details the outline received Saturday morn policy Mr. however, stated that the main points presented statement printed in The Friday attorieys conferred with the not the of the the stitute against not paid the due the but the cases on 8.0 indi vidual However steps taken the are is found to be to dispose of his to defeat the Gen erty and Frank Spur lock said Friday 100 per ordered against and Mr. has of May 26 First National holders. delaying send notices he hears from Comptroller's office regarding he secured the legal opinion the stockholders of the bank and who liable for The opinion sent by registered mail last Sunday, but yet further word from Washington office.

12. July 3, 1934 The Chattanooga News Chattanooga, TN
Article from The Chattanooga News, July 3, 1934

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Would Cancel Bank's Lease Receiver Coffey Asks Authority for Action. Court authority for an agreement to cancel the lease for the Main Street branch of the First National Bank was asked by Receiver C. S Coffey in petition filed Tuesday in Chancery Court through his attorney C. Moore The bank leased property at 1473 Market Street in 1928 from Ira S. Post for term of twenty years. The lessor agreed to cancellation of the lease provided that he be given title to the vault and other fixtures and improvements in the building, the pe. tition Couch Litigation. Further W. H and his former wife, Mrs. Ethel Mai Couch, was in Chan cery Court when Mrs. Couch filed bill against her -husband, Grace Holley and W O Couch The bill stated that on Sept 21 1932 the couple entered into sep aration agreement Couch was to give her certain property and pay her $150 month as long as she remained unmarried divorce was granted short time later in Circuit Court and the separation agreement was incorporated into the decree Mrs. Couch that has not paid her the promised $150

13. October 18, 1934 Chattanooga Daily Times Chattanooga, TN
Article from Chattanooga Daily Times, October 18, 1934

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POOL PREPARES TO RESIST PLEA FOR FIRST FEES Officers of First National Expected to Help Fight Against Lawyers. CLAIM PAYMENT ISSUED Answer Says Frierson Got His $10,000 for Defending Bank, Not Receiver. Several officers of the First National bank by the receivership the bank's mortgage certificate pool sist in resisting the application of three firms of are asking $20,000 from the pool an "advance" on fees, was yesterday Attorney B. Milligan, representing the certificate pool, filed an answer the petitions the three firms of attorneys in chancery court yesterday, but the answer was immediately withdrawn. Later Mr. Milligan, upon request, issued statement which he outlined details the defense which plans offer in resisting the application of the lawyers. Frierson Asks Advance. The three firms filing claims include Sizer, Chambliss Kefauver, Thomas, Coffey & Folts. In behalf of the firm of Williams & Frierson, William Frierson is asking an "advance" of for fees. Charles S. Coffey and J. B. Sizer filed petition for $10,000 to be divided between their two firms. Neither firm has stated how much it eventually expects to Taylor Durham, vice-president of the First National bank; Hoskins and other stockholders and officers who were present when the board voted to place the mortgage pool into receivership will testify that Mr. Frierson was hired the attorney of the bank and that the bank arranged for payment of all expenses incident to the receivership, learned. In his statement, Mr. Milligan states that the bank wrote certificate holders establishing of the receivership the pool that bear all expenses protect the certificate holders all expense for attorneys' and resolution has been placed upon the minutes First National bank which shows that board of directors Mr. fee of $10,for his in connection with the Frierson however, that the fee was paid him defend the bank and not pool, was revealed yesterday. Of the $10,000 fee, the attorney collected $8,000, according to Mr. Milligan. Two Officers to Help. Both Mr. Durham and Mr. Hoskins be by the to supthe bank Mr. Frierson of $10,000 to represent the Concerning the application by the other two Mr Milligan they should call upon their clients and not the pool for fees. Should the these attorneys are entitled to the request made by the that their services be with hereafter, they are not needed Signing the were Receiver E. Lawman and all members but one the participation certificate advisory committee authorized by chancery court. the to sign view of the that sonR. H. Williams, of Mr. firm. Mr. Milligan's statement follows: the controversy attorneys' for in the suit to First National bank answers were filed yesterday H. Lawman, receiver, and Thompson, Beck, H. Goodman, Jr., and Key. defense of the claim of Williams & Frierson, the answer alleges that all the were rendered for the bank and not for the certificate holders; the matter was brought into court the bank mailed letter to all certificate holders assuring them that the litigation was in the certificate holders of the bank. it was that the would protect the certificate from all expense for attorneys fees and otherwise. answer alleges that the bank lived up to its promise in faith, shown by resolution the board in which fee of $10,000 appropriated for the payment of the for this and that $8,000 of said fee has paid. "That said payment intended to and was, in full for all services the "The answer alleges that the greater of services were, fact, performed for the bank in defending against various petitions charging of the bank handling the certificates before the was begun. The answer alleges that said against the bank were all filed in the receivership though they were segregated after the payment the fees. "The answer further sets forth that