20672. First National Bank (Johnson City, TN)

View Charter #3951 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
3951
Charter Number
3951
Start Date
November 12, 1894
Location
Johnson City, Tennessee (36.313, -82.353)

Metadata

Model
gpt-5-mini
Short Digest
f05712b5

Response Measures

None

Receivership Details

Depositor recovery rate
36.1%
Date receivership started
1894-11-13
Date receivership terminated
1899-02-20
OCC cause of failure
Fraud
Share of assets assessed as good
11.7%
Share of assets assessed as doubtful
47.1%
Share of assets assessed as worthless
41.2%

Description

The First National Bank of Johnson City was closed/taken into control by the Comptroller/examiner in mid-November 1894 and a receiver was appointed in early December 1894. No run is described in the articles; the bank was closed by government action and placed in receivership. President J. E. Crandall was later arrested for false statements regarding the bank's condition.

Events (4)
1. December 24, 1888 Chartered
Source
historical_nic
2. November 12, 1894 Suspension
Cause
Government Action
Cause Details
Closed/taken into charge by Comptroller/United States bank examiner (suspended payment); examiner cited impaired capital/legal reserve issues and insolvency concerns.
Newspaper Excerpt
The First National Bank of Johnson City, Tenn., was closed this afternoon by Bank-Examiner N. B. M. Miller, and is now in control of the Comptroller of Currency.
Source
newspapers
3. November 13, 1894 Receivership
Source
historical_nic
4. December 5, 1894 Receivership
Newspaper Excerpt
The controller of the currency has appointed John I. Cox receiver of the First National Bank at Johnson City, Tenn.
Source
newspapers

Newspaper Articles (18)
1. November 13, 1894 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, November 13, 1894

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A TENNESSEE BANK CLOSED. Depositors Caught for Various Amounts from $25 to $4,000. BRISTOL, TENN., November 12.-(Special.)-The First National Bank of Johnson City, Tenn., was closed this afternoon by Bank-Examiner N. B. M. Miller, and is now in control of the Comptroller of Currency. This bank has been established about six years. It did a good business until a year ago, when, but for outside help, it would have suspended. J. E. Crandall, the president, owned a controlling interest in the bank. The cause of the suspension has not yet been made public. Depositors have been caught for various sums ranging from $25 to $4,000.

2. November 15, 1894 The Comet Johnson City, TN
Article from The Comet, November 15, 1894

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"Suspended Payment." These two words and all they imply have caused an amount of sorrow and lamentation in this community during the last few days that is hard to estimate. They were employed in the following sentence and suspended on the door of the First National Bank last Monday at 12:30 p. m.: "This bank has suspended payment and is in the hands of the Comptroller of Currency." Do you realize what that means? It means that $80,000 dollars due depositors is tied up indefinitely and that $93,000 due from the people of this section must be paid at once, though it bankrupt them This is not all. It probably means that $50,000 put up by the stockholders to found the institution has been irretrievably lost. The effect this will have upon this section is hard to calculate. That it will be bad goes without saying but how bad and how long it will take to get over this terrible blow to our business interests remains to be seen. Mr. J. E. Crandall, the President of the bank, came to Johnson City from Illinois almost ten years ago and, in connection with D. W. Shuler, started the Bank of Johnson City. In a short time Mr. Shuler withdrew to start a bank at Hickory, N. C., and Mr. Crandall became the sole proprietor of the institution. It was during his connection with the Bank of Johnson City that he gained the confidence ofthe people of this city and section and established a reputation as being one of the best financiers and most conservative bankers in the State, all of which he has shown himself worthy of throughout his career, and upon the day of failure he enjoyed the full confidence and respect of his patrons and the public. The Bank of Johnson City was changed to a national bank about six years ago and Mr. Crandall made President. During its life it has had many ups and downs. A year ago when banks were failing over the country this one came very near meeting a similar fate, but Mr. Crandall managed to pull it through by careful financiering Since that time the bank has been considered out of deep water and on the road to prosperity. It was on account of this feeling that the report of the suspension Monday caused such general consternation. There is scarcely a doubt that depositors will be paid in full, but it is generally conceded the stock is worthless. Mr. Crandall has done all he could to insure this first result. Like an honest man he has turned over everything, including his personal property, to save the depositors and his individual sureties. He was the largest stockholder, and, therefore, the largest loser. When he went to dinner on Monday he was worth about $50,000, representing the accumulation of ten years of ceaseless toil, but with one pen-ful of ink Bank Examiner Miller wiped that out completely, and left him, without A moment's notice, as penniless as a pauper. There has been nothing but the sincerest sympathy expressed for Mr. Crandall in his financial troubles and the hope that he may be able to save something from the wreck, in all of which THE COMET heartily joins.

3. November 15, 1894 The Big Stone Gap Post Big Stone Gap, VA
Article from The Big Stone Gap Post, November 15, 1894

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last week in Eastern Kentucky, buy ing cattle. Mr. Slemp says go cattle are very scarce now. Do you enjoy a hearty laugh? S the fun makers at old Nickels Buil ing, Wood avenue. They will * there one week, or more. A larger attendance at theEpwor League meetings Sunday afternoo would be appreciated by its leader not only the young people, but tl older ones. The Virginia Building at t) World's Fair, which cost $15,00 was bought by a Chicago policema for $400. He had it removed and no occupies it as a home. Dr. J. W. Kelly went over Gate City last week. The Dr. ha a large Drugstore there and in add tion gets a good practice. Mr. Albert S. Holt, of the firm English & Holt, New Haven Conu is spending a few days in the Gap o business. He is the guest of J. I Johnson. D. B. Wade returned yesterda from Cincinnati, where he went wit some fine cattle. Mr Wade is on of our most prominent cattle dealer and is very succerful in the business Nature's Remedy Company wi gine a matinee at old Nickels Bnile ing, Wood avenue, Saturday afte noon at 2 p. m. Admission 10 cent Hon. H. C. L. Richmond passe through the Gap Sunday, returnin from a very successful hunt wit Hon. Jeff Dillion and his coon do; They both took to the woods as soo as the election returns came in. Mr. R. E. Kennedy, one of our e ficient public school teachers, an who has charge of a school in Le county, spent Saturday and Sunda with homefolks inEastBigStone Ga The Southern Railway compan has filed a deed of trust at Knoxvil to the Central Trust company of Ne York for $120,000,000-the large mortgage ever given in the South. G. A. Murray, a prominent lumb dealer of East Tennessee and Sout west Virginia,and who is also propr etor of the Hale Spring Hotel, : Rogersville, Tenn., spent Sunday i the Gap. The Natures Remedy Compan handle medicines to cure any ill Give them a fair and impartial tria They will do you good. Old Nicke * Building, Wood avenue. The First National Bank, of John son City, Tenn., suspended busines Monday. The suspension was great surprise to the people of tha city. The cause of the failure ha not been made public yet. The Missos Kennedy gave an et joyable entertainment to a number friends at their hospitable home East Big Stone Gap last Saturda evening. The occasion was in hon of Miss Maggie Kennedy, who wi leave in a few days for Florida. In the United States court in tl case of Chapman VS Yellow Popl: Lumber Company, began hearing tl evidence of the defendant Compar Thursday evening. It is though the case may be concluded next wee -Abingdon Virginian. Rev. J. B. Craft, of Rye Cove, Va spent Friday night in Bristol. Th morning Prof. Sam Jones, of the : W. Va. institute, accompanied hi out over the S. A, & O. to Big Sto Gap.-Bristol News. FREE-A compound and directio for making one pound of fresh yello butter out of one pint of fresh mil

4. November 15, 1894 The Comet Johnson City, TN
Article from The Comet, November 15, 1894

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SUSPENDED PAYMENT. The First National Bank in the Hands of an Examiner. "The First National has been closed!" This startling piece of news was rapidly circulated over the city shortly aiter noon last Monday. It was 80 sudden and 80 unexpected that it was not credited by many, but upon investigation it proved only too true. The following notice upon the door confronted those who attempted to enter "This bank has suspended payment and is in control of the comptroller of currency. [Signed] J. M. MILLER, Jr., Examiner in charge. Mr, Miller is a United States bank examiner and has been in the city since last Thursday afternoon, looking over the affairs of the bank. He made his report last week, but it was not until Monday. while at dinner at Hotel Piedmont, that he received instructions by telegraph from Comptroller Eckels to take charge. The action was quite as much a surprise to President Crandall as to outsiders as be had no idea when he went to dinner on Monday that the bank was in any immediate danger of being closed, in fact, he had every reason to believe the contrary, as the ffairs were really in better condition than they had been at other times during the last year when the bank came 80 near having to suspend and would have done 80 but for outside as sistance and Mr. Crandall's extraordiary executive ability. There is a great deal of speculation on the part of the public as to why the bank was closed at this time and many reasons are assigned therefor, chief among which is that the legal reserve was not available. This may be true, but THE COMET believes one of the principal causes for the suspension was impaired capital. Examiner Miller told THE COMET that he was not permitted to make any statement whatever in regard to the bank's affairs, but as soon as a receiver was appointed a statement would be published, setting forth everything in detail. Mr. Miller has no idea how soon a receiver will be named, but he will remain in charge until that time. As there are a great many wild rumors as to the bank's condition and inasmuch as we are not able to give a statement of the condition when closed, we reproduce below the statement made at the close of business on October 2, 1894. It is not at all likely there has been much change in any items since that time:

5. November 16, 1894 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, November 16, 1894

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A Bank President Arrested. BRISTOL, TENN., November 15.-(Speclal.)-J. E. Crandall, president of the First National Bank, of Johnson City, Tenn., which suspended business Monday, was arrested to-day by United States Marshal Condon, on a charge of making false statements with reference to the condition of his bank. He waived his right to a preliminary hearing, and was bound over in the sum of $5,000.

6. November 17, 1894 The Times Richmond, VA
Article from The Times, November 17, 1894

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BANK PRESIDENT ARREATED Charged With Making an Unrrttful ment of the Cond tion of His Bank, BRISTOL, TENN., Nov. 16.-J. E. Crandal, president of the First National Bank of Johnson City, Tennessee, which suspended business Monday, was arrested by United States Marshall Condon yesterday on the charge of making false statements with reference to the condition of his bank. He waived his right to a preliminary hearng and was bound over in the sum of $5,000 Nov. 16.-The arrest of WASHI. President Crandall, of the Johnson City (Tenn.) National Bank, was made at the direction of Comptroller of the Currency Eckels. In his last report, made to the Treasury early in October, the president reported his bank to be in n solvent conditon, and the Treasury is assured that it was not. The United States District Attorney has been directed to prosecute Crandall for violating the statute which requires a truthful statement of the condition of national banks to be made to the Treasury five times a year.

7. November 22, 1894 The Comet Johnson City, TN
Article from The Comet, November 22, 1894

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IN GOOD CONDITION. The Watauga Bank Not Effected by the Recent Failure. It is an ill wind that blows no good. The suspension of the First National Bank has served to strengthen the Watauga Bank rather than weaken it as feared by some. In an interview with George D. Taylor one of the directors and largest stockholders of the institution, THE COMET learned that the bank was in splendid condition and ready for any emergency, though no trouble was anticipated from the depositors in the nature of a "run." With a few exceptions the stock of this bank is held by men of known wealth and integrity and although not responsible under the law to depositors, they have displayed a willingness to become so by personally endorsing certificate of deposit that is highly commendable.

8. November 22, 1894 The Comet Johnson City, TN
Article from The Comet, November 22, 1894

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MAY REORGANIZE. The First National Bank Likely to Resume as a State Institution. A strong effort is being made by the stockholders and depositors of the First National Bank to have it resume under a State charter. Petitions setting forth the plan are being circulated among both classes of creditors and being liberally si. ned. A large majority of the stockholders and depositors have signified their willingness to submit to the new arrangement and others are doing 80. Dr. H. H. Carr and J. E. Crandall were in Washington last Monday to consult Comptroller Eckels and see what steps could be taken to wind up the bank's affairs other than by a receiver. As a result of their visit Bank Adjuster Lynch will be here this week to look the ground over and assist, if possible, in re-establishing the bank. The gentlemen were assured by the Comptroller that everything possible in the purview of the law would be done to bring about this result as it was the policy of the government to build up and not destroy the banks of the country. At this time there are many reasons for believing the matters will be straightened out and a new bank established in a short time. Such a result is greatly to be desired.

9. December 5, 1894 Evening Star Washington, DC
Article from Evening Star, December 5, 1894

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An Appointment. The controller of the currency has appointed John I. Cox receiver of the First National Bank at Johnson City, Tenn.

10. December 6, 1894 The Comet Johnson City, TN
Article from The Comet, December 6, 1894

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Retires With Honor. Bank Examiner J. M. Miller, Jr., who has been in charge of the First National Bank since it suspended payment, has shown himself to be thoroughly well qualified for the position he holds and has made many friends here by his polite and conrteous attention to the demands made upon him. While it is hoped he may not be called to this city to do as he has just done, yet if he should care to drop in to spend a few days, unofficially, he will be warmly welcomed.

11. December 13, 1894 The Comet Johnson City, TN
Article from The Comet, December 13, 1894

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Assumed Control. Receiver John I. Cox has taken charge of the defunct First National Bank, the transfer being completed Monday. Mr. Cox will give the matter his personal attention and do his utmost to wind up the affairs of the bank at the earliest moment.

12. December 13, 1894 The Farmers' Union Memphis, MO
Article from The Farmers' Union, December 13, 1894

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its promptitude in deciding cases and explains his course during the strike. The Controller of the Currency has appointed John I. Cox receiver of the First National Bank at Johnson City, Tenn. Washington dispatch: The soporifie quiet of the Capitol was rudely broken in upon by a straight tip from the White House that if the Democrats did not make good use of the time at their disposal to pass laws for currency reform. and other reforms suggested in his message, President Cleveland would promptly call a special session after the decease of the present Congress, and give the Republicans a chance to legislate for the good of the country. Vilas brought the special session tip straight from the White House, with instructions to give it circulation. which he proceeded to do forthwith. The news found its way quickly to the other end of the Capitol and was given authoritative currency by the quasi indorsement of repetition by Catchings, of Mississippi, who has the credit of being Speaker Crisp's speaking partner. Warner. Cochrane. Tracy and others in the President's personal confidence, gave it the weight of industrious recital, and any doubt as to the authenticity of the pointer was speedily removed. Navy department has accepted the cruiser Minneapolis and ordered the payment of $414,600, the premium she earned.

13. December 20, 1894 The Comet Johnson City, TN
Article from The Comet, December 20, 1894

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# Notice of Sale of Horses, Carriage and Harness. Notice is hereby given that I will sell at public auction to the highest bidder, in front of the First National Bank building, Johnson City, Tenn., at two o'clock p. m., on SATURDAY, DEC. 29, 1894, one team of dark gray horses, one carriage and double harness; all in good condition and desirable. Same being held by me, as receiver, as collateral to loan of J. E. Crandall, with full authority to sell. J. I. Cox, Receiver First National Bank, Johnson City, Tennessee.

14. December 27, 1894 The Comet Johnson City, TN
Article from The Comet, December 27, 1894

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Notice of Sale of Horses, Carriage and Harness. Notice is hereby given that I will sell at public auction to the highest bidder, in front of the First National Bank building, Johnson City, Tenn.. at two o'clock p. m., on SATURDAY, DEC. 29, 1894, one team of dark gray horses, one carriage and double harness; all in good. condition and desirable. Same being held by me, as receiver, as collateral to loan of J. E. Crandall, with full auJ. I. Cox, thority to sell. Receiver First National Bank, Johnson City, Tennessee.

15. January 16, 1895 Herald and Tribune Jonesborough, TN
Article from Herald and Tribune, January 16, 1895

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AUGOLD WATCH. 1000 TICKETS GIVEN AWAY. We will give a check for each dollar's worth of goods bought at our store, and each check entitles the holder to one chance for a gold watch. A check will also be given for each dollar paid on old accounts. L. A. PATTON. Tickets gived until February 1. Dosser Bros. John S. McClure, of Knoxville, spent Sunday here. Tea sets, bon bon traysand card trays, at McPherson's. C. H. Jennings, of Johnson City, was in Jonesboro Monday. We make prescription work a specialty. Mathes & Patton. Hon. J. M. Brabson, of Greeneville, was in town last Saturday. Does your watch need repairing? Take it to H. H. McPherson. A drove of mules left here Saturday morning for the Southern market. An elegant line of cake baskets and fruit stands at Herbert McPherson's C E. Luckey, of Knoxville, was in town Saturday attending Chancery Court. Our line of glasses is complete; we can fit you, we sell cheap. Mathes & Patton The greatest thing in the world for the cure of cold can be purchased at Mathes & Patton. Hon. John I. Cox, Receiver of the First National Bank of Johnson City, was in town Monday. A mule buyer was in town last week, but his offers were too low to secure many desirable mules. J. M. Osborne, who has been visiting his daughter, near Nashville, returned home Saturday evening. Mathes & Patton keeps the freshest, purest, best stock of drugs in Jonesboro. Gall and see them. Our order for corn is withdrawn for the present, but we will still buy itand pay in merchandise. Dosser Bros. Grand reduction in all lines of merchandise will be madein the next thirty days, at prices unheard of. R. M. May. E. S. Browning and P. H. Browning represent Washington County on the Federal Court Grand Jury at Knoxville. Count your tickets and buy more between this and February 1, and get some of the silverware. Dosser Bros. G. W. Oliver has two young milch cows that he wants to sell. Anyone wanting a cow will do well to call on him. A.L. Morgan, of Fall Branch, was in town Saturday night on his way to attend Federal Court as a juror from this county. If you have a cold go at once to Mathes & Patton's and get a bottle of their "cold cure" it will cure you in twenty four hours. Federal Court is in session in Knoxville this week, and will have a good attendance of "bug juice" makers from all the surrounding country. Don't put off buying a suit or an overcoat until it is too late; then you will want us to kick you for missing a bargain. A. C. Britton & Co. Attention ladies-Do you want to earn $25 a week at home? Easy work. Send ten cents'in stamps for full particulars to Miss Florence A. Stevens, St. Paul, Minnesota. The County Court has set the second day of the April term to try the charges of cruelty, &c., preferred by the grand jury against the Superintendent of the Poor House. Our contemporaries in business may say that our stock is old and out of date, but such is the language of envy and their careless hahdlingof the truth. A.C. Britton & Co. We the undersigned have tried Mathes & Patton's "cold cure" and find it to be an excellent remedy for the cure of colds: Lena D. Mason, Tate L. Earnest, W. S. Hickey and W. D. Biddle. Lost-between Limestone and R. A. Bayless', on Wednesday the 19th, a ladies' gold watch. The finder will be liberally rewarded by sending it to Mrs. May Huff, Limestone, Tenn. The Comptroller of the Currency has appointed Messrs Faw and Cox, one of Johnson City's most enterprising law firms, attorneys for the receiver of the First National Bank of that place. The close of each season in our establishment brings a clearance sale. So in order to make room for spring goods, we offer you special bargains in everything in the house for the next thirty days. R. M. May. The County Court, on motion of Mr. Guar

16. February 21, 1895 The Comet Johnson City, TN
Article from The Comet, February 21, 1895

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THE COMET. PERSONAL MENTION And Local News of the Town and Vicinity Briefly Told, Jackson's for low prices. Jackson's for fresh goods. Jackson leads in his line. Jackson's for Western beef. Jackson's for the best goods. Choice candies at Whitlow & Co's. Jackson's for best brands of flour. John I. Cox was in Knoxville Tues day. Charlie Piper was up from Jonesboro Monday. Sheriff Pritchett was called to the city Monday on business. Sam Leach has returned to the city after a prolonged absence. Clerk and Master Young has been in the city several days on business. Gold Dust flour is the best fancy patent sold here. It is 80 guaranteed. A thaw is usually objectionable, but the present one is looked upon with a great deal of favor. Miss Kate Kirkpatrick, who has been visiting the Misses Bowers, left yesterday to visit Mrs. W. T. Range, at Johnson City.-Bristol Courier. John B. Patton and son, Robert, of Paris, Texas, have been visiting the family of R. A. Wood and other rela tives in the city and vicinity during the past week. The Faust and Marguerite company that was playing the devil through this section met their fate at Jonesboro last week. They fought bravely, but had to surrender to "Old Pete." The yonng people of the First Pres byterian church will serve dinner from 11 o clock a. m. until 1 p. m; supper from 5 p. m. until 10 p. m. at Hoss & Hodge building, Main street, Feb. 22 Come and celebrate the birthday of the Father of our Country. J. W. Renfro, a well-to do farmer from Watauga Valley, was in the city yesterday on business connected with the First National Bank. He came to exchange over $3,000 worth of time deposit certificates for receiver's certi ficates, a kind of a jump from the fry ing pan into the fire. Prof. Jos. H. Ketron, of Blooming dale, Tenn. in a recent letter to friends states that Rev. S. G. Ketron, presid ing elder of the Greeneville district, 18 dangerously ill at his home near that place. While his condition is very serious his friends there hope for his recovery.-Greeneville Democrat. A special train was run on the E. T & W. N. C. railroad last Sunday from this place to Allentown to accommo date the Odd. Fellows and others o

17. March 14, 1895 The Comet Johnson City, TN
Article from The Comet, March 14, 1895

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SUITS BEING BROUGHT. Creditors Seeking to be Preferred Must Share With the Lawyer. J. I. Cox, receiver of the defunct First National Bank of Johnson City, states that a number of suits are being filed against said bank now by men who allege that they are entitled to be preferred creditors. These suits are brought by depositors to recovor money which was in the bank's care during the last three years of its exis tence. The suits ef such creditors are based on the ground that the bank was known to have been insolvent all that while, and that therefore the management had no right to receive the money offered as deposits. The result is that a large number of creditors will seek through suit to be placed on the preferred list. If most of the depositors should finally gain in the position which they take, the situation would not be improved in the least. Such proceedings will call for numerous lawyer fees, and the result will be that the expense of litigation will swallow up the greater portion of the small per cent. which it is hoped to realize on the assests of the bank. Efforts to collect do not improve the prospects of the bank. So much of its assets is in paper based on flown values that its virtue ex in name only.-Bristol Courier.

18. May 9, 1895 The Comet Johnson City, TN
Article from The Comet, May 9, 1895

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Call for Your Checks. The checks for the first dividend of the First National Bank, of this city, have been returned from Washington duly signed by the comptroller of the currency, and are now ready for delivery. All persons holding proven claims will receive their dividend by presenting their certificate at the bank in this city and receipting the receiver for the amount. Call early and avoid the rush.