The National Bank of Cleburne suspended payment and failed to open on Oct 18, 1921; federal agents and a receiver later took charge and embezzlement was alleged against the president. The bank did not resume normal operations and was placed in receivership. OCR corrected minor typos (epea -> open).
Events (6)
1.May 16, 1889Chartered
Source
historical_nic
2.October 18, 1921Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank suspended after heavy withdrawals of county funds, poor loan collections, and depositor withdrawals; later investigations revealed missing securities and alleged embezzlement.
Newspaper Excerpt
The National Bank of Cleburne, one of the oldest financial institutions here, failed to open its doors today. A statement ... said suspension was due to heavy withdrawals of county funds and very poor collections, coupled with withdrawals of depositors.
Source
newspapers
3.October 21, 1921Receivership
Newspaper Excerpt
The affairs of the National Bank of Cleburne, which has suspended payment to depositors and closed its doors, ... will today be taken over by an agent of the department of justice. ... investigation has disclosed that safety boxes have been opened and that liberty bonds and other securities are missing. A complaint charging S. B. Norwood, president of the bank ... with embezzlement.
Source
newspapers
4.October 27, 1921Receivership
Source
historical_nic
5.May 12, 1925Other
Newspaper Excerpt
Woodridge, receiver of the National Bank of Cleburne, Texas, impaired by the defalcations in 1921, has won in supreme court suit to compel the United States Fidelity and Guaranty Company ... to pay a $25,000 bond.
Source
newspapers
6.December 1, 1932Other
Newspaper Excerpt
The National Bank of Cleburne, which he controlled, failed to open following a holiday, resulting in a loss which the receiver described as one of the most complete in American banking history. ... Norwood dropped out of Cleburne's sight in the Fall of 1921.
OLDEST BANK AT CLEBURNE SHUTS DOORS (By The Associated Press) CLEBURNE, Texas, Oct. 18-The National Bank of Cleburne, one of the oldest financial institutions here, failed to epea this morning. A statement signed by four officials of the bank said that the suspension was "due to heavy@withdrawals of county funds and poor collections. coupled with withdrawals by depositors." The statement added: "We are glad that no other bank in Cleburne had any county funds on hand and will not be called upon as have been." The statement says: "Hasty investigation inspires the hope that there are plenty of assets in the bank to pay every depositor. We hope to reorganize soon on a much stronger financial basis than we have ever been."
2.October 18, 1921Casper Daily TribuneCasper, WY
Click image to open full size in new tab
Article Text
Texas Bank Is Closed Today CLEBURNE, Texas, Oct. 18.- - The National bank of Cleburne, one of the oldest financial institutions here, falled to open its doors today. A statement, signed by four officials of the bank said suspension was "due to heavy withdrawals of county funds and very poor collections, coupled with withdrawals of depositors." The statement said: "A hasty investigation inspires the hope that plenty of assets are in the bank to pay each and every depositor and we hope to reorganize soon on a much stronger financial basis."
3.October 18, 1921The Nenana NewsNenana, AK
Click image to open full size in new tab
Article Text
TEXAS BANK SUSPENDS CLEBURNE, Texas, Oct. 18-The National Bank of Cleburne has announced a suspension of business. The failure is attributed to heavy withdrawals of deposits and to poor collections.
4.October 19, 1921Omaha Daily BeeOmaha, NE
Click image to open full size in new tab
Article Text
Texas Bank Closed Cleburne, Tex., Oct. 18.-The National Bank of Cleburne, one of the oldest financial institutions here, failed to open its doors today. A statement signed by four officials of the bank said suspension was "due to heavy withdrawals of county funds and very poor collections, coupled with withdrawals of depositors."
5.October 19, 1921The Topeka State JournalTopeka, KS
Click image to open full size in new tab
Article Text
TEXAS BANK IS CLOSED. / Bank of Cleburne One of Oldest in Lone Star State, Cleburne, Tex., Oct. 19.-The National Bank of Cleburne, one of the oldest financial institutions here, failed to open its doors this morning. A statement, signed by four officials of the bank, said suspension was due to heavy withdrawals of county funds and very poor collections, coupled with withdrawal of depositors.
6.October 20, 1921Omaha Daily BeeOmaha, NE
Click image to open full size in new tab
Article Text
Texas Bank Closed Cleburne, Tex., Oct. 19.-The National Bank of Cleburne, one of the oldest financial institutions here, failed to open its doors yesterday. A statement signed by four officials of the bank said suspension was "due to heavy withdrawals of county funds and very poor collections, coupled with withdrawals of depositors."
7.October 21, 1921The Topeka State JournalTopeka, KS
Click image to open full size in new tab
Article Text
FEDERAL AGENTS TAKE CHARGE Investigation of Cleburne BankRifled Deposit Boxes. Cleburne, Tex., Oct. 21.-The affairs of the National Bank of Cleburne, which has suspended payment to depositors and closed its doors, with liabilities said to to over a million dollars, will today be taken over by an agent of the department of justice, according to a statement made by a department head. According to statements by various depositors, investigation has disclosed that safety boxes have been opened and that liberty bonds and other securities are missing. A mass meeting of citizens has been called for 10 o'clock this morning to consider the situation created by the closing of the bank and subsequent developments. A. J. Wright has caused to be issued a complaint charging S. B. Norwood, president of the bank, who has been out of the city since the institution's suspension, with embezzlement.
8.May 12, 1925The Anniston StarAnniston, AL
Click image to open full size in new tab
Article Text
BANK RECEIVER WINS SUIT FOR BOND PAYMENT
Washington. May 12. (United R. Woodridge, receiver of the National Bank of Cleburne, Texas, impaired by the defalcations in 1921. has won in supreme court suit to compel the United states Fidelity and Guaranty Company, a bonding company. to pay a $25.000 bond. The bonding company has paid $38,313 to the Gulf. Colorado and Santa Fe Railroad company. one of the depositers. and claimed it was liable only for the $1,688 remainder. Lower courts refused to allow the offset and held the bonding company was liable for the full $35,000. The supreme court today affirmed the lower court's decision.
9.December 1, 1932Evening StarWashington, DC
Click image to open full size in new tab
Article Text
man's wife, Mrs. Emma Norwood, he is legally dead. At the same time the jury's decision in one of the State's most interesting lawsuits will not prevent Norwood's arrest on 18 Johnson County grand jury indictments for illegal banking should he ever put in an appearance. Dropped From Sight in 1921. Norwood, although since reported seen in various towns in Southwestern United States and Mexico, dropped out of Cleburne's sight in the Fall of 1921. The National Bank of Cleburne, which he controlled, failed to open following a holiday, resulting in a loss which the receiver described as one of the most complete in American banking history. A shortage of cottonseed oil is believed to have inspired Norwood's illfated "peanut corner." His bank owned both a peanut mill and an oil mill, and since peanut oil was a good substitute for cottonseed oil, Norwood thought he saw a chance to "clean up." He is reported to have bought peanuts in every section of the country until he had a virtual corner on the
