18241. Liberty National Bank (Tulsa, OK)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 10262
Charter Number: 10262
Start Date: October 1, 1923*
Location: Tulsa, Oklahoma (36.154, -95.993)

Metadata

Model: gpt-5-mini
Short Digest: 8c797a3c

Response Measures

Full suspension

Other: Event is a bank failure (closure) following runs and alleged misapplication of funds; articles are trial coverage from 1925 about the 1923 crash/1924 failure.

Description

Newspapers recount the Liberty National Bank crash/failure in late 1923/early 1924. Coverage describes heavy withdrawals/run risk driven by the Lewis brothers' indebtedness, 'accommodation' notes and insolvency concerns; the bank subsequently failed (per articles: crashed in October, 1923 and failed in Tulsa early in 1924). Exact suspension/failure date is ambiguous in the clippings, so I list the crash as Oct 1923 and note the early-1924 reference.

Events (5)

1. September 16, 1912 Chartered

Source: historical_nic

2. October 1, 1923* Run

Cause: Bank Specific Adverse Info
Cause Details: Heavy indebtedness of the bank proprietors, large accommodation notes and inability to realize assets led creditors to threaten suits and precipitated depositor withdrawals
Measures: Obtained accommodation notes from Tulsa businessmen and negotiated loans to tide the bank over
Newspaper Excerpt: We knew that if we were sued in any large amount, it would bring run on the bank, Lewis said
Source: newspapers

3. October 1, 1923* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Failure/crash tied to the bank's bad loans, the Lewis brothers' personal indebtedness and loss of confidence after inability to realize assets; led to failure/suspension of payments and ultimate closure/failure of the bank
Newspaper Excerpt: the Liberty National crashed in October, 1923
Source: newspapers

4. January 8, 1924 Voluntary Liquidation

Source: historical_nic

5. May 7, 1925 Other

Newspaper Excerpt: E. Lewis and W. L. Lewis ... charged with irregularities in connection with the failure of the Liberty National bank of Tulsa, will be tried ... The Liberty bank failed in Tulsa early in 1924.
Source: newspapers

Newspaper Articles (11)

1. May 7, 1925 Henryetta Daily Free-Lance Henryetta, OK

Article from Henryetta Daily Free-Lance, May 7, 1925

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WILL TRY THE LEWIS AT HUGO By Associated HUGO, Okla., May E. Lewis and W. L. Lewis, brothers charged with irregularities in connection with the failure of the Liberty National bank of Tulsa, will be tried in United States district court here, starting May 14, Frank Lee, United States dis. trict attorney for the Eastern Okla homa federal district, has announced. The Liberty bank failed in Tulsa early in 1924. Sometime later after an investigation by federal bank inspectors, a federal grand jury indicted the brothers on 23 counts. Original plans called for trial in Tulsa. Later Muskogee was fixed as the place and then Federal Judge R.L. Williams of the Eastern district designated Hugo. Attorneys for the defense are expected to submit a motion to have the case transferred from the eastern distriet to the northern district which would mean the case would be tried in Tulsa, Bartlesville, Pawhuska or Vinita. About TOO witnesses will summoned.

2. May 25, 1925 Henryetta Daily Free-Lance Henryetta, OK

Article from Henryetta Daily Free-Lance, May 25, 1925

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Associated HUGO, May Lewis, defendant with his brother, Lewis, on trial in Unted States district court, on charges of irregularities connection with the failure of the Liberty National bank at Tulsa, testified today that number of "accommodation" notes, obtained from Tulsa business men were necessary to tide him and his brother over personal crisis that threatened the safety of the bank. Lewis said that early in 1922 they owed $750,000 to banks Kansas City, New York and Tulsa: that their assets at the time were about $1,000,000, but that they could not realize on them and that their creditors were threatening knew that if sued any large amount would bring run on the Lewis said, "and protect the bank, negotiated these loans." Lewis said that the indebtedness was reduced to approximately by that The witness assailed Roberts, examiner for the Tenth Federal serve district, alleging from the stand that in at Kansas City few months before the Liberty tional crashed in October, 1923, Robhad forced them to agree to possible terms of settlement.

3. May 25, 1925 Bartlesville Examiner-Enterprise Bartlesville, OK

Article from Bartlesville Examiner-Enterprise, May 25, 1925

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LEWIS ON WITNESS STAND HUGO Denies Truth of Statements of Many Prosecution Witnesses (By the Associated Press) HUGO, Okla, May defense in the of Lewis and Lewis. brothers, charged with irregularities in connection with operation of the defunct Liberty National bank at Tulsa, rested its case 3:05 o'clock this aftermoon. (By the Associated Press) HUGO, Okla., May Lewis, co-defendant with his Lewis. on trial the ther. United States district court on charges of irregularities in nection with the failure the Liberty National bank at Tulsa, man fied today that number of commodation notes" obtained from Tulsa business men were necesto tide him and his brother sary over personal crisis that threatened the safety of the bank. Lewis said that early in 1922 they owed approximately $750,000 to banks in Kansas City, New York and Tulsa, that their assets the time were about but that they could not realize on them and that their creditors were threatensuit. knew that if sued large amount, would in any bring the bank." Lewis run on said, "and to protect the bank negotiated these loans. Lewis said that the indebtedness fairs reduced approixmately $200,was 000 by that method. The witness assailed K. Roberts, examiner the tenth federal mean reserve district, alleging from the stand that in conference he City few months before Kansas Liberty National crashed the 1923, Roberts had forced October, duce them to agree to impossible terms of settlement. promising them that he would "clean or close The conference which directors of the bank agreed much of the alleged bad assume held by the bank. Lewis paper said that he and his brother drew up an agreement looking to an justment but that Roberts refused to accept it, declared lacked "punch." "I'll write one with punch the witness quoted the aminer as saying. Robertson then He brought in an agreement to retire the notes which Lewis said impossible of fullfillment, and forced the brothers to sign it. Lewis subjected to severe cross examination by Nugent Dodds, special government prosecutor, after time denied flatly the truth of statements made by many prosecution witnesses. "Isn't true that saw the crash coming and were doing your best to get stake before was too late?" Dodds asked. not," the witness replied. Another emphatio disclaimed followed when Dodds demanded the Lewis brothers to keep knowledge of the bank's affairs and of the 'accomodation' notes from the board of directors," months just the bank failed.

4. May 25, 1925 The Daily Ardmoreite Ardmore, OK

Article from The Daily Ardmoreite, May 25, 1925

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TRIED TO SAVE BANK, LEWIS' PLEA IN COURT Brothers Worth Million in 1922: Pressed for $750,000 and Suit Meant Bank's Failure. Lewis, co-defen dant with his E. Lewis on trial in the United States district court on charges conneotion with the failure of the Liberty Na. tional bank at Tusa, testified that the number that had been obtained from Tulsa men tide him and his brother over personal crisis that threatened the safety the bank. Feared Run on Bank Lewis said that 1922 they owed approximately to banks Kansas City, New York and Tulsa and that their assets at the time were about but that they could not realize them and that their creditors were threatening knew that were sued large amounts would bring run on Lewis said, "and to protect the bank negotiated these loans." Blames Federal Reserve Lewis said that the was reduced approximately that method. The witness Roberts, examiner for the tenth federreserve alleging from the stand that in conference Kansas City month before the Liberty National crashed October, 1923, Rob. had forced them to to agree impossible terms of settlement.

5. May 25, 1925 Miami News-Record Miami, OK

Article from Miami News-Record, May 25, 1925

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Notes Given to Save Bank, Lewis Testifies HUGO, Okla., May Lewis, co-defendant with his brother, E. Lewis, on trial in United States district court on charges of Irregularities in connection with the failure of the Liberty National bank at Tulsa, testified today that a number of "accomodation notes," obtained from Tulsa business men were necessary to tide him and his brother over personal crisis that threatened the safety of the bank. Lewis said that early in 1922 they owed approximately $750.00 to banks in Kansas City, New York and Tulsa, that their assets at the time were about $1,000,000 but that they could not realize on them and that their creditors were theratening suit. "We knew that if we were sued in any large amount, it would bring run on the bank," Lewis said, "and to protect the bank We negotiated these Lewis said that the indebtedness was reduced to approximately $200,000 by that method.

6. May 25, 1925 Muskogee Times-Democrat Muskogee, OK

Article from Muskogee Times-Democrat, May 25, 1925

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LEWIS ASSAILS BANK EXAMINER WHILE ON STAND Declares Federal Official Drew Up "Impossible" Agreement to Protect Bank Associated Press. Hugo, Okla., May L. Lewis, co-defendant with his brother, Lewis, on trial in United States district court on charges of irregularities in connection with the failure of Liberty National bank at Tuisa, testified today that number of "accommodation" notes obtained from Tulsa business men were necessary to tide him and his brother over a personal crisis that concerned the safety of the bank. Lewis that early in 1922 they owed approximately $750,000 to banks Kansas City, New York and Tulsa, that their assets the time were about one million dollars, but that they could not realize on them and that their creditors threatening suit. knew that if we were sued in any large amount, would bring run on the bank, Lewis said, protect the bank we negotiated these loans." Assails Bank Examiner Lewis said that the reduced to approximately by that method. The witness assailed Roberts, examiner for tenth federal reserve district, alleging from the stand that in Kansas City few months before the Liberty crashed in 1923, Roberts had forced them agree to terms of settlement, promising them that he would "clean us or close The conference was one at which directors the bank agreed assume much of the alleged bad paper held the bank. Lewis said that he and his brother drew up an agreement look. ing to adjustment but that Roberts refused to accept it, alleging that lacked "I'll write one with punch in the the examiner saying. Roberts brought agreement to retire the which Lewis said was impossible of fulfillment, and forced the brothers to sign it. Yellow Cab Baggage. Ph. 23-Adv.

7. May 25, 1925 The Ada Evening News Ada, OK

Article from The Ada Evening News, May 25, 1925

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TELLS Declared Necessary Personal Loans to Tide Over Bank (B; the Associated Fress) May Lewis, with his Lewis on trial in United States district court on of irregularities in connection with the failure of the Liberty National bank Tulsa, testified today that Liberty notes' obtained from Tulsa business men were to tide him and brothpersonal crisis that the safety of the bank. Lewis said that late 1922 they owed approximately $750,000 banks in Kansas City, New York and Tulsa: that their were about but that they could not realize them and that their creditors weer threatening suit. knew that sued anv amount would bring the bank, Lewis said. protect the bank negotiated these loans. Lewis said that the indebtedness reduced by that nethod. The witness assailed L. Federal Reserve district. alleging from the stand that conference Kansas City few before the Liberty National crash in October, Roberts had forced them to agree to terms settlement. Negress Arrested Sarah Duncan, negress. being held in the county jail on federal charge of possession choe beer. She arrested in Darktown yesterday afternoon by federal and county officers. building remodeled and enlarged.

8. May 28, 1925 Blackwell Journal-Tribune Blackwell, OK

Article from Blackwell Journal-Tribune, May 28, 1925

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Jury Still Debates Tulsa Bank Case HUGO Okla., May from and Lewis tonight. The Lewises, charged with violating tional banking laws in with the failure of the Liberty Na. tional Bank Tulsa. The been deliberating since yesterday Court officials stated that if decision agreed o'clock the jury will be locked up for night.

9. May 28, 1925 The Daily Oklahoman Oklahoma City, OK

Article from The Daily Oklahoman, May 28, 1925

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JURY IN LEWIS CASE FAILS TO Members Dismissed After "Hopeless Deadlock" Report Is Made. May jury the trial former defunct Liberty National bank Tulsa, charged 10:20 o'clock night when reported Will liams, United States district judge, that hopelessly deadlocked and unable to reach verdict. The jury stood for conviction for There had change in the balloting since Wednesday according the foreman the jury. The Lewis brothers were tried twenty-two counts conspiracy, misapplication funds and making reports the comptroller of the Friends Risked Money The jury had been out since Nugent Dodds, special assistant United States general, before the trial closed that was the result, the would continue the prosecution. The history of the Lewis case and trial hinged the of the story those placed their money and credit in jeopardy for the sake of the Tulsa bankers, that "paid have friends. The friends ranged from oil men and to Pearl Schafer nurse employed the Lewis home for five whose considered she did not have all her Griffe On Stand The case was opened Frank district attorney told the court the prosecution would seek to prove the brothers attempted divert bank funds their Later that day Miss Schafer Lewis handled money and drew her account than $3,000. When the bank failed he made note for more than Griffe, bank stated that examination on August, the liabilities of the the assets by Griffe unable produce ords back his testimony and thrown Secretary retary Jardine left Wednesday inspection work the

10. July 25, 1925 The Tulsa Tribune Tulsa, OK

Article from The Tulsa Tribune, July 25, 1925

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DEFENSE RESTS AFTER FOURTH WITNESS Judge and Attorneys Speed Up Action Staff and almost the defense the the trial of Tulsa at this and believed this that the case would reach the latest tonight. The defense placed four witnesses three of them because the were successfully objected to the defense the stand then Nugent Dodds for state opened the for the It had been agreed that each side would three hours for argument and each side should use The reach the tonight upon the by Judge namer prepare his instructions to he jury. Judge Kennamer himself aided greatly today speeding the case by his rulings against for the sought bring Question Brings Clash There spirited clash R. Davidson. chief counsel for the defense, during the examination of W. L. Lewis. Davidson, on re-direct from the witness that he and secured notes their friends in order to protect the Liberty bank against which would have been filed by outside competitors, thus starting a run on Kennamer sustained an objection by the to this question. that it was Lewis about the deeding of the of the two brothers to the failure of the Liberty, Without any suggestion from government counsel. directed that the question be stricken from the record. Davidson protested. "The that and offered to transfer the their wives to the Security National bank, in return for $154. 000 of former notes of the Liberty National which considered Kennamer they did toward making restitution after the alleged transaction in the indictment. ask his in that you proceed to Most of was devoted morning the of Lewis, by Dodds. whose methods feet the Lewis was lowed upon the stand by H. verman torneys, acted for the Lewises ble, during the trouand by Paul the credit department of the First Na. Witness Backfires Warner backfired defense After he took the he was Davidson there did exist the bankers which the bank dividends of stocks on which loans This an attempt of who had to themselves dividend checks which should have gone to Ballard and Dodd's objection to Davidson's question sustained by Judge written contract which governed therefore they to do to other Davidson formal motions meetings of of directors in the formal motions Continued on Page

11. August 12, 1925 The Tulsa Tribune Tulsa, OK

Article from The Tulsa Tribune, August 12, 1925

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LEWISES FIGHT BY TECHNICAL OBJECTIONS Government May Rest Case Late Today Continued from Page works dt related the details of the note told the request that Lewis told following crash that they short help never have gone to his National bank when the the Bohnefeld's testimony convened court the killing of was the the court and pointedly attempt at digression the points the and what be by May Reach Friday the the defense used one curtails its and government closes many thought case would go to the jury counsel present Kenna the ground of was this with David and Rogers of defense Both defendants near their active the the former his case papers case explained short, whisBoth and of ast Ballard III. Appear. M. to the of demand pay of $14,000 in dividend checks to which forced former Liberty National to sur the money and will not be to Koons and Ballard the said be familiar with the entire Nugent government would by absence. E. Forrest lost he signed the request of the was the first witness morning Hayden he was signing notes help the bank not Lewis brothers and Hayden was followed by Henry wealthy Tulsa and director the Liberty National before the merger with the Greis denied any at time the he meetwere he testimony was practically with that yesterday of John also former letters signed by them which to the comptroller of the told the the letwere the bank that had been He declared he the letters the had him that had the attitude the of to the Lewises the run entirely of conthe they had in them Signed Notes for $25,000 by the defense Greis ad cross for total of after the between Liberty National and Security as collateral to three notes the Lewis the Security National held. however, that he for National and for the Tulsa told jury that he one of the declaring called on him come to the bank and he requested him to note their behalf for which he to the Lewis him perfectly the note It reduced and new note made, Black chief defense this timony of his der the of not adhad been more years before the Judge the the renewal of the note the to made within the three period. Dost by grocer and of the he by signing the of He was also sucker. came to this for to lay for his The represented tire He stated he paying the on which for "I want to sign was Lewis me all and pay He didn't the witness fully, hands in way and looking the to his The note for $15,000 Knoten another $2,500 tacked He out check for the additional 500 and to Says Bank Stock Was Security Knoten never what It but did know he the It that 75 shares of stock were up collateral the Knoten that did not and had any to any He said Lewis just put make feel safer, he he added the and kept the check asked what was me forget about On Knoten said he had no was to buy stock and Lewis was back Question Brings First Mirth your that keep the 75 shares of the the witness after the court had granted to to give the note was paid, Knoten The first of the trial broke Counsel asked W he had money or any other considfor note he He the laughter spread and even Judge Donnell denied he received any government go whom Dodds has announced he will likely call are Mason, Dewey Powell William I Edward Albert H. Ray Government Scores Tuesday The defense was several tellblows late Tuesday. An was Hugh the Dawson Towel who signature note for and his ent that the erty National or National bank "thin red Previous to his this McDonnell the McDonnell Riding academy in Tulsa had to signing note as Lewis. He said he never get note return. He declared day financial statement listing his net worth was signed him in blank and filled out by Lewis. He denied he was worth anything like that much. Miss Pearl Schafer, trained nurse who was in the E. Lewis home for five years, repeated her dramatic two former trials. She Lewis eonverted to his own Liberty bond be deposited in the bank to credit. She nied she authorized anyone to sign her name to checks her account, most of which had the tation said she did not sign herself. Dr. T. Penny. proprietor of the Quaker and Puritan drug stores in Tulsa: R. assistant cash Security and John were other Penny he signed note as favor to the boys who old friends and LeBus declared no directors' meetings beheld Even If new were to dawn there wouldn't be of us up. The faster rumor the bigger grows.