20701. Holston Trust Company (Knoxville, TN)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: November 13, 1930
Location: Knoxville, Tennessee (35.961, -83.921)

Metadata

Model: gpt-5-mini
Short Digest: 88b9f203

Response Measures

Full suspension, Books examined

Other: Federal comptroller/receiver took charge; legislative investigations and indictments followed.

Description

Contemporaneous articles describe heavy withdrawals in November 1930, the comptroller taking over the affiliated Holston Union National Bank and the Holston Trust Company closing; a federal/state receivership and liquidation followed (receiver appointment reported Jan 3, 1931 and multiple indictments in March 1931). The episode therefore began with a run, led to suspension/closure and receivership. Some articles explicitly discuss the parent national bank (Holston Union) as closely affiliated and owning stock of the trust company; events affected both institutions. Dates are taken from article publication dates when specific days are given.

Events (3)

1. November 13, 1930 Run

Cause: Bank Specific Adverse Info
Cause Details: Large, concentrated withdrawals that depleted cash reserves; connected to alleged mismanagement and interlocked dealings with Caldwell & Co. and parent bank problems.
Measures: Knoxville Clearing House announced members availed themselves of 30-day notice required for withdrawal of time deposits and savings; committee to negotiate reorganization or transfer of assets.
Newspaper Excerpt: Comptroller Takes Over Holston Union After Heavy Withdrawals.
Source: newspapers

2. November 13, 1930 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Cash reserves were depleted by heavy withdrawals and alleged misapplications; board suspended business and the comptroller/receiver took charge of the national bank and trust company closed operations pending receivership or reorganization.
Newspaper Excerpt: The Holston Trust Company, dealing in owned by the Holston Union National Bank also is closed...the board...appointed a committee to negotiate with certain interested parties with view either to the reorganization of this bank or organization of another banking association.
Source: newspapers

3. January 3, 1931 Receivership

Newspaper Excerpt: Plans for the liquidation of the Holston Trust being made today by Frank L. West...following his appointment receiver of company by Chancellor Robert M. Jones on application of the state of Tennessee. The state, claiming the company to insolvent,...
Source: newspapers

Newspaper Articles (18)

1. November 13, 1930 The Commercial Appeal Memphis, TN

Article from The Commercial Appeal, November 13, 1930

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dent of that institution since the He is president of the Fourth and First Banks, Inc. KNOXVILLE BANK CLOSED Comptroller Takes Over Holston Union After Heavy Withdrawals. representative of the comptroller of ville this to take charge of the closed Holston Union National Bank. He has been appoint. ed Mr. Pearson said he had no idea how long take to the status of the which suspended business by order the board of directors Tuesday night. The receiver came from Macon. Ga. rectors of the bank said the was forced to close reason of with the past few days" but none of the bank's officials or directors would say by whom withdrawals were made the amount, nor as. sign any reason "heavy withBasil Ramsey president of the bank. said $750 000 were withdrawn from the Holston Union on Monday. He added that was his belief the bank have continued if withdrawals had not depleted its Edward McMillan chairman on reorganization of the Holston Union. said today had nothing to mittee's Closing of the Holston Union had its effects on other banks of the city today Crowds gathered in each of numerous withdrawals were made. No Occasion for Alarm. The Knoxville Clearing House Association in statement early this afternoon announced that its members had availed themselves of the 30-day notice required for withdrawal time deposits and savings The association said in a statement that "feels there is no 00casion for alarm on the part of the depositing public. Constant and heavy from all the Knoxville banks would in all probability be very damaging to all of the banks of the city and to all depositors In the bank's last published on October liabilities and assets were $16,300,359.59 each. Under liabilities, demand deposits were given as $6,121,869 and time deposits at $5,795. $5. Capital was given as $750,000: surplus $750,000. and undivided profits $141,847.97 Among liabilities were bills payable and rediscounts "The board," the statement said. "has likewise appointed a committee to negotiate with certain interested parties with view either to the reorganization of this bank or organization of another banking association. into which will RO the assets of this bank, with the object of protecting its depositors. The Holston Trust Company, dealing in owned by the Holston Union National Bank also is closed. J. B. Ramsey. formerly of Kentucky. is president of the oank Directors in their statement said cash reserves were depreted to the point where the bank could not continue without "assistance from outside sources."

2. December 6, 1930 The Morning Union Springfield, MA

Article from The Morning Union, December 6, 1930

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Creditors Would Liquidate Bank Receiver Asked for Holston Trust in Tennessee; Insolvency Charged. KNOXVILLE Tenn., Dec. 5-(AP) general creditors' bill asking the appointment of a receiver for the Holston Trust Company was filed in Chancery Court today by the State of Ten-

3. January 4, 1931 The Atlanta Constitution Atlanta, GA

Article from The Atlanta Constitution, January 4, 1931

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RECEIVER APPOINTED FOR HOLSTON KNOXVILLE Tenn., Jan. 3.-(P) Plans for the liquidation of the Holston Trust being made today by Frank L. West, clerk and master chancery court, following his appointment receiver of company by Chancellor Robert M. Jones application of the state of Tennessee. The state, claiming the company to insolvent, filed to collect $252,000 state highway funds which alleged on deposit in the Holston Trust was denied by the Trust Company. claimed that the state funds illegally deposited and the or consent the board directors. am the opinion from the evidence, Jones "that legal sense the company the drafts, for There question but that realized the the state and tried reach satisfactory reement with the The presented on bill and affidavits. issuance for $115,000 $135,000 favor of the Holston Trust Company and transferring that from the Fourth and First Bank Trust He

4. February 23, 1931 Chattanooga Daily Times Chattanooga, TN

Article from Chattanooga Daily Times, February 23, 1931

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merely passing through Tennessee haulloads freight on our highways, and that in other instances the safe and proper use of the roads our citizens being interfered with by the operation of vehicles long, too and moving at dangerous speed. There no doubt in my mind that we should take effective steps to protect and our highways from this sort of operation. were struck with the admitted fact that motor trucks for hire busses are now paying little or nothing the way of taxes the counties and cities through which they operate. of the cities in which hearings were held, called our attention to the fact that their streets were damaged costs by these vehicles from which they received no "Two strongly differing views were presented on the question of increased taxation for motor The truck and bus lines insisted that any additional would force out of business: the railroads that the motor lines were here to stay, but should pay additional taxes for the use of the public roads. It appeared. also, that present taxes freight trucks for much lighter than on passenger busses job the gather and consider the facts and to work out some system of taxation and regulation of these vehicles will equitable the peothat burden the the private motorists of the state by forcing them to pay more than they should for the extra wide and extra strong roads necessary carry extra large and extra heavy vehicles. and that protect the people's roads and the roads they own from abuse by operations Our task not easy. but know none greater importance before this legWe urge to favor us with information suggestion.' PROSECUTOR AT CAPITAL DRAFTING INDICTMENTS NASHVILLE Feb. 22 (P).-Opening the sixth week of probing by islative committee investigating state affairs found the investigators prepared drive hard down the various lanes information in the belief that it will result in indictments against some state officials and financiers. particular charge aimed at the state officials tion with the switching state tunds from bank to bank that resulted in more than $6,000,000 now being unavailable because of the failure four the banks. Violation of state banklaws the charge directed financiers actually who influenced the of the money Testimony during week to be an effort bolster these charges. Already the district torney has started work on the draft indicuments, but the information may withheld grand the committee gets farther along with Over week-end the committee virtually abandoned its plans transits inquiry Knoxville, where funds were involved the failure of the HolNational bank and the ston Trust company. The committeemen had their previous Asheville, to inquire into the late Central Bank and Trust company that has been charged before committee manipulations with the broken Liberty Bank and Trust company, of Nashville, and New York the ords Lehman who the two Tennessee bond issues $50,000,000. Final decision on the New York trip, however, has not been reached. Some members of the committee expressed the opinion that they can oball the needed information and vigorous steps that end during the next before must write preliminary report for the legislature. This preliminary report will be prepared the view furnishing the crux of the investigation on which the grand jury and the legislature may make their cases. During the first part of the week the highway department to OCcupy the center stage with its commisR. Baker, the leading actor. The commissioner, tall appointee of Gov. Henry H. Horton, opened his testimony but

5. March 5, 1931 Fort Lauderdale News Fort Lauderdale, FL

Article from Fort Lauderdale News, March 5, 1931

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STATE MONEY LOST Tenn., Mar. behind them the political roar of Nashville, the affairs moved on Knoxville today to tempt to learn how was lost in the of the Holston Union Bank and the Holston Trust company.

6. March 5, 1931 The Selma Times-Journal Selma, AL

Article from The Selma Times-Journal, March 5, 1931

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Holston Trust Under Probe In Tennessee with the refusa of the federal receiver to permit them to investigate the HolstonUnion National Bank, the state fairs legislative investigating committee today turned examination of the Holston Trust Company, which state funds were caught the joint failure of the two affiliated institutions. The hearing was started in the house the full committee ent Curtis Allen, assistant trust officer of the trust company as the first witness. The committee came from Nashville, where for six weeks they inquired finances the state affected by bank failures. In Knoxville, were met by torney Joe Williams, committee counsel, who had come of the committee by several days.

7. March 5, 1931 The World-News Roanoke, VA

Article from The World-News, March 5, 1931

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Postal Receipts Show A Decline By Ralph Knoxville March fronted the refusal of the Federal permit them to investigate Holston Bank, State legislative investigating turned tion of State caught joint failure of the affiliated The hearing started in the courtpresent Curtis ficer of the trust company. the first The came the State on 30. 1930 Holston the highway public funds the Fourth and First the Reports To Altrusa of the Holston Trust Company. On telegram Club On Meeting signed the Fourth In North Carolina the We credit your Miss Sadie Harrison. president, and account deposited Moomaw, who represented of which Roanoke Club the dis- 000 be deposited Holston Trust the Altrusa Altrusa meeting held recently reports August he the month- chased $75,000 Securities session the The that formal closed ComAltrusa effected that the Lea-Caldwell meeting embracing asked Virginia, North South Carolina, West directed that purchase Virginia Miss Stickley Roelected second governor the district Basil president the HolThe principal of the meet- houses items showing Henry director public the highway August Hazel 000 note Journal The Sentinel Publishing Comthe district will pany Huntington, W. Va., in October, the announced. the Ramsey said obligation handling Colonel Luke would only there Allen said accounted for Postal receipts of the Roanoke post the fund per that in comparison closed Holston Union Bank. by Frank Stresses Need Of totaled compared JanuPhysical Education and February. 1930. West said For School revenue local first noted September and had that time. drop February Stressing the need for physical greater in any previous child in Miss Postal receipts include all classes National Athletic stamps stamped spoke afternoon the matter and the ing Roanoke Council mail that sent without stamps the such rate school administration building. the latter is fixed by weight Cowen, city directors recreation, was speaker the meet-

8. March 6, 1931 Asheville Citizen-Times Asheville, NC

Article from Asheville Citizen-Times, March 6, 1931

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CENTRAL BONDS PURCHASED BY DEFUNCT BANK Tenn. Highway Funds Used, Committee Is Informed UNCLE SAM HALTS HUNT FOR $2,000,000 Dealings Of Caldwell Held Responsible For Failure KNOXVILLE Tenn. March forbidding Uncle Sam raised today the face of the legislators startover the the HolstonBank hunt for than money that its the investigators protested. of Federal statutes was opened calmly and laid before them apology the part of the receiver his legal ability to open his records for public the will agent the closed bank full tomorrow The read this afternoon to subcommittee out learn Acre not possible obtain to the on the state Bank Friendly Under receiver to Federal injunction protect his but drastic measure was not believed necessary The bank representatives made that felt friendly toward the committee but that the law forbade grant their request This decision that the com. mittee's the last night from Nashville will be only by of the Holston Trust Company, which went when its parent, the Holston Union National collapsed. Although the National bank owned stock trust company. operated charter and was subject to legislative examina- Central Trust Bonds Bought The committee Curtis A1assistant trust officer to the Holston Trust Company, the first witness and spun his of the tie prodding committee said the ruin Holston Trust Company was due directly its dealings Caldwell and Company and to the fact that Basil Ramsey president of the Holston houses. was more terested in politics than banking He told length of the receipt of Please Turn To Page Four)

9. March 6, 1931 The Times Shreveport, LA

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BANK RECORDS CAN'T BE SEEN Tennessee Legislators Barred From Investigation in $2,000,000 Shortage Knoxville, Tenn., March 5 (P).The forbidding palm of Uncle Sam was raised Thursday in the face of the investigating legislators as they started over the threshold of the Holston Union National bank on a hunt for the more than of state money that once was in its As the investigators protested a book of federal statutes was opened calmly and laid before them. with an apology on the part of the receiver of the national bank for his legal inability to open his records for the public scrutiny of the committee. Formal explanation will be made by an agent of the closed bank to the full committee Friday. The law was read Thursday afternoon to a sub-committee sent out as couriers to learn If it were not possible to obtain access to the records bearing on the state deposits. Under the law the bank receiver can resort to federal injunction to protect his records, but so drastic measure was not believed necessary. The bank representatives made it clear that they felt friendly toward the committee, but that the law forbade the grant of their request, and left the federal courts and the comptroller of currency in supreme charge of insolvent national banks This decision mean that the committee's trip over the mountains from Nashville will be rewarded only by examination of the Holston Trust "company, which went down when its parent, the Holston Union National bank, collapsed. Although the national bank owned the stock of the trust company, It operated under state charter and was subject to legislative examination.

10. March 6, 1931 The Crowley Post-Signal Crowley, LA

Article from The Crowley Post-Signal, March 6, 1931

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ARREST OF HEAD DEMANDED Tennessee Investigators Want Former Head of Holston Union National Bank Arrested. EXPRESSES DISPLEASURE Committee Angered By Refusal of Bank Receiver To Open Records of Institution. By RALPH WHEATLEY (Associated Press Staff Writer) Knoxville, Tenn., March ing warrants and indictments and demands, the legislative investigators of state affairs today broke off hearings in Knoxville and started back to the home base in Nashville, where they will press on for further trace of the loss of state millions. The session today of less than an hour found an angered and determined investigating committee manding the immediate arrest of Basil Ramsey, former president the broken Holston Union National Bank and Holston Trust Company, Knoxville, who was reported now Florida. Displeasure Expressed With cold, hard snaps, the committee its displeasure over the refusal of the reciever of the Holston Union National Bank to open records to the committee and scoffed at the idea of the commonwealth Tennessee being barred from bank where more than $2.000,000 of its funds were at time in its strong boxes. Sparkle was given today's hearing soon began by Senator Hal Clements, of Knoxville, who sitting in with the committee, addressing the hearing on the committee's decision to the immediate arrest and trial of President Ramsey. He declared he himself had signed warrant that would charge him with emberziement and fraudulent breach of trust. The senator was presented by (Continued on page 8)

11. March 6, 1931 The Commercial Appeal Memphis, TN

Article from The Commercial Appeal, March 6, 1931

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CALDWELL BLAMED FOR HOLSTON CRASH (Continued From Page ONE) receivers for the under the rebuke of the federal authorities. members of the state committee trudged up to the Knex County courthouse shortly before 10 o'clock, followed by a curlous throng of private citizens and battery of photograp ore shapping at them every few Chairman Faulkner. still mum. the date of the E. H. Cramp deforence with state affairs." led the mand for the Impeachment of Gov. delegation. Henry Horton. Hearing began promptly at 10 The committeemen were not Ino'clock the court room. clined to discuss the Horton It was jammed to the exits by They had early throng had Crump today. their hands full in the clash with difficulty pushing their way companying them and to crowd into the judge's chancel for room to work. The only witness of the day was Mr. Allen. Questioning was started by Attorney Williams, who been over here three days laying the groundwork for the Knoxville gle of the Investigation, Before the free-for-all, with two non-committee taking part upon invitation of the chairman. The Holston Trust Company. said its former assistant trust officer. was organised 1936 on capital stock of $250,000 as subsidiary to the Heiston Union National Bank. B. Ramsey was president of both when they crashed. The state of Tennessee began trickling its public funds into the trust June, 1927, when $50,000 deposit from the general funds was made. In May. 1928, fund deposit was $10,000 general recorded. All of this was withdrawn prior to the failure. with the exception approximately None general fund money, Mr Allen said. ever to private use of the bank, as was the $250.000 highway deposit on which the bulk of the investigation today was centered. It not until June that the $250,000 deposit came in suddenly. with flood of telegrams preceding it Mr. This $250,000 deposit from the highway department the Holmon Trust Company's share of $750,000 deposit, transferred from the Fourth and First National Bank at Nashville, out of which the Holston Union National Bank got million dollars soon as the $250.000 credited to the trust company, It placed in trust account. which would have prevented its diversion for any purpose, but an immediate Mr. countermand was by the bank's general telegram from Nashvile, sent code, but which, when decipher. advised of the transfer of funds to the benefit of the Heiston banks, was read into the rec. by the witness upon instruction of The Mr. $250,000 had but a short rest. On the very same day that put into the trust company general account, $50,000 of it was used to pay note that the trust company had been owing for some time to the Holston National. Money Distributed.

12. March 6, 1931 The Commercial Appeal Memphis, TN

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Shrine Guest. Three days later another note Conley and Maxine and Bobby. was paid. also amounting to $50.000. month later the $75,000 was told. are regarded now as pracItem to the Central Com- tically pany. for obligations of the Central Q.-At whose direction was this Bank & Trust Company of Ashe- $75,000 of Tennessee money used ville, N. C., went through. The to purchase the securities in North curities purchased. the committee Carolina at the bank in which Lea and Caldwell had a finger? porters worried him so much, he By direction of Mr. Ramsey. "That wasn't all that worried loan and the Ramsey checks next him," said Senator Craig came in for committee scrutiny "Mr. Ramsey brought the note STENOGRAPHER RESIGNS. said the "and the $25,000 check was made payable to the The next morning was liscovered that this check had been placed to his personal account take care of two checks for $12,000 each that Henry Waldauer of Memphis, the issued. of these checks court senographer, who contracted had been held for around 10 days.' to record the entire proceeding of "Did the officers of the trust company this the hearing of the state legislative protest main?" asked the committee attor. investigating committee. announced ney here today that had "quit the "What do you mean by legards. committee main, Mr. "It wasn't any one thing that Speaker Haynes, "Don't you mean made me quit,' Mr. Waldauer said. "It was just that didn't like their "Call It Stealing." "Call It straight stealing." said the The witness continued the thread of his "The trust company efficers did he Mr. called me up to his desk. and said that as matter fact, was not his but that he was handling for Luke Lea. and that did It because Colonel name was criticised whenever it appeared in Knoxville Q.-Did he mean that the na. tional bank examiners had criticlased the handling Colonel Lea's that. The $25,000 Knoxville Journal note which the was obtained from state deposit re. mained in the trust company until substitute note was sent back The aubstitute was Tennessee Publishing Company note for like amount, signed by Luke vice president, and E. P. Charlet, secretary it come through the United States mails? am not sure. Mr. Ramsey sent It back by secretary with instruction that It was to take the place of the Knoxville Journal was the Knexville Journal taken was about two weeks before the closure became of the Tennes. are Publishing Company note? A. -It is still here. Yesterday, the witness said, payment $2,500 was made on this note to the receivers. making a total of $7,500 that been paid on it by the Tennessee Publishing Company Q.-Has Col. Lea, or his son. or Mr. Charlet been in here recently A.-Not that know of. Back came the United States mail angle of the story. on which the committee attorneys are putall these payments received in the U. N. mail? The trust company invested $30. 000 of the highway money bonds of the Knoxville Sentinel Company, the witness said. The the loan on the newspaper notes, the $75,000 for North Care. lina securities and the 000 pay its own notes for $230,000 of the $250,000 highway deposit. Q.What became of the re. maining $20,0007 A.-It is still here. "You mean it was there," snorted Chairman Faulkner. The came in exactly 10 days after Mr. Ramsey had walk ed into directors' meeting and suggested that the previous resolution to accept no deposits be scinded. The state banking partment never acted upon this move to receive deposits, but the state money taken anyway At one the trust had $5,000 note on its hands signed by Colonel Lea. but this was paid off. the witness said Who arranged that loan? A Ramsey. The colonel also, through Mr Ramsey. had the trust company take trade of the Belle Meade Land Company one of his Nashville corporations. For handling of this paper, $500 fee was paid. although the check for It was not brought out of Mr Ramsey's private desk until trust officials questioned the handling of the item. It was this item that led to the of the trust company officials, Made Him Resign. "Mr. Ramsey was no dissatisfied with the of anyone attempting to thwart his plans that he make it NO embarrassing for Mr. Slaughter. he left,'t said Mr. Blaughter's former If Mr. Slaughter decides to swer the committee's long distance subpoena to his home in Mobile, he will be here tomorrow as voluntary witness against Mr. Ramsey The details of the transactions with Caldwell & Company, credited with putting the trust out of business, were revealed in question begun by Speaker Haynea had many deals with Caldwell & Company after Caldwell and Lea bought into the Holston banks? A.-We bought quite few stocks through Caldwell & Company Q-Name some of them. A.Tennessee Products, Southern Surety, Memphis Commercial Appeal bonds, Memphis Natural Gas, Alli- and gator Raincoat Corporation Kentucky Rock Asphalt. Q-The truth that your concorn and Caldwell Company were Interwoven? -Practically all our capital was tied up by stocks and bonds purchased through Caldwell. unloaded on you? A -That is your dealings with Cald. well & Company really broke your trust company? A.-There is no question about it in my mind. Q.-1s It your opinion that the $250,000 deposit was largely the result of the close association of the Holston banks with Caldwell Company A.-My manipulated opinion is that by the deposit was Caldwell Company for the purpose of getting additional money to be used in making the Holston Trust Company buy additional stocks. Caldwell Q-In other words. state read money was diverted to buy Caldwell stocks? we had no for the deposit. need "It was in the atmosphere Cald at that the Knexville well relation to the Holston banks was a poisonous influence, wasn't it, Mr Allen?" asked Senator Craig so. Midnight think rides by Basil Ramsey between Knoxville and Nashville but the questioning. witness came up had litle information about them. Q-Did you know that Ramsey took midnight ride to Nashville just before bank came to Knoxville, got some securities, and then after the examiners left. shuttied them back to Nashville so they of for the Bank ready would Tennessee be know he went to made night trips, but don't know anything about the shifting of se. curities before the coming ch.bank examiners. said the in Florida now, "the newspaper way doing Mr. Waldauer and his assistants withdrew at the close of the sension yesterday, it was learned, and the sommittee left for Knoxville appar ently without having arranged for the keeping of its record.

13. March 6, 1931 The Daily Review Clifton Forge, VA

Article from The Daily Review, March 6, 1931

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TO THE TENNESSEE A New Turn Taken In Money Affairs of the Volunteer Knoxville, Tenn., March forbidding palm of Uncle Sam was raised the face of the investigating legislators they started the threshold of the Bank hunt for more than $2,000,000 State money that once was in its vaults. As the investigators protested, book of Federal statutes opencalmly and laid before them with an apology on the part of the receiver of the bank for his legal inability to open his records for the public scrutiny the committee. Under the the bank receiver can resort to Federal injunction protect his records, but so drastic measure believed necessary. The bank representatives made clear that they felt friendtoward the committee, but the law forbade the grant of their request. This decision meant that the committee's trip over the mountains last night from Nashville will rewarded only by the examination of the Holston Trust Company which went down when its parent the Holston Union National Bank collapsed. Although the National Bank owned the stock of the trust company operates under State charter and was subject to legislative examination. The drew Curtis len, assistant trust officer of the Holston Trust Company as the first witness and he spun his story the operations little prodding from Unhesitatingly said the of the Holston Company due directly to its dealings with Caldwell Co., and to the fact that Basil Ramsey, president of the Holston banking houses more interested in politics than banking. He told length receipt deposit $250,000 of highway funds and charged that part of used off the debts of the pay trust company and to purchase $75,000 bonds the Central Securities Company, subsidiary of the sunken Central Bank and Trust Company, Asheville, The young witness related many of the bank in which figured Rogers Caldwell, lionaire, and Luke Lea, publisher and politician. Since the doors the national bank have been barred against them the committee planned to turn to Nashville at the end of the week. While Senator Hal Clements declared today that warrants for criminal action would be sworn against Ramsey, president the defunct Holston Union tional Bank, the grand jury vened this afternoon to consider evidence against the president. The warrants will charge embezzlement, larceny and fraudulent breach of trust. Mr. Clements bank which the State funds kept failed connection the enterprises this

14. March 6, 1931 Richmond Times-Dispatch Richmond, VA

Article from Richmond Times-Dispatch, March 6, 1931

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Closed Bank's RecordsDenied To Committee Tennessee Legislators Confronted by Federal Statute in Tracing Funds KNOXVILLE. TENN., March forbidding palm of Uncle Sam raised today in the face of the investigating legislators they started over the threshold of the National Bank on for more than $2,000,000 State money that once was in its vaults As the investigators protested, book of Federal statutes was opened calmly and laid before them with an apology on the part of the ceiver of the national bank for his inability his records the public scrutiny of the comFormal explanation will be made an agent of the closed the full tomorrow The was read this afternoon to out to learn were not obtain access to the bearing on the State deposits. Request Forbidden. Under the law the bank receiver can resort to Federal injunction protect his records, but so drastic measure was not believed necesrepresentatives made clear that they felt friendly toward the but that the law forbade grant their reThis decision meant that the comlast Nashville will warded examination of the Holston Trust Company. which down when the HolstonUnion National Bank. collapsed. though the national bank owned the stock the operated State and was subject to legislative examina- committee drew F. Curtis assistant officer of the Holston Company the first witness and he off his story the the institution with little prodding from committee Blames Caldwell. Unhesitatingly, he said the ruin of the Holston Trust Company was due directly to its dealings Caldwell Co. and fact that Basil of president the two Holston houses, was more interested in politics than banktold at length of the of receipt deposit highway funds and charged that part of was used off the debts the trust company and to purchase $75,000 of bonds the Central curities Company subsidiary of the sunken Central Company of

15. March 7, 1931 The Indianapolis Times Indianapolis, IN

Article from The Indianapolis Times, March 7, 1931

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Calls for Prosecution H. CRUMP, recently elected to E. congress from the Memphis district, and commonly recognized as the Democratic boss of west Tennessee, has been exchanging verbal amenities with Governor Horton on the latter's unfitness in general, but with particular reference to the LeaCaldwell affair. Crump not only declares that some people should be in jail, but gives names and addresses. Meanwhile, a legislative committee has been digging up a lot of ugly evidence, the first result of which is the arrest of J. B. Ramsey, president of the now defunct Holston-Union National bank and Holston Trust Company of Knoxville. In Asheville, N. C., where all the banks were wiped out, they are calling for the indictment of every one concerned, and in Kentucky the stockholders of a big bank which went down in the crash are being sued for $60,000,000. Receiverships are becoming so numerous and interlocked that the lawyers hardly can keep track of them.

16. March 8, 1931 News-Press Fort Myers, FL

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ADDITIONAL INDICTMENTS Committee Probes Banking Frauds For Report To Legislature NASHVILLE, Tenn., Mar. were falling the tangled financial political situation Tennessee tonight while members of the state investigating committee prepared to formulate report for the general assembly of their seven weeks investigation. One week remains until the legislature's recess ends. necessity for the investigators report to ready for the opening assembly sessions made it improbable that further witnesses would be called prior to the initial summarization of testimony. Immediately after hearing before the committee in Knoxville Friday, Knox county Attorney General Fred Bibb drew five dictments against Basil Rampresident of the Holstonsey, Union National bank and subsidiary, Holston Trust company, both defunct. The charges were fraudulent breach of trust and larceny in each case. These will be formally issued Monday, Bibb said. Meanwhile federal grand jury today issued three secret indictments against men believed implicated allegedly criminal transactions in the Knoxville bank. Federal receivers took over the Holston-Union and its affairs investigated by department justice agents. The indictments were handed down Greenville, Tenn., near Attorney General Richard Atkinson, of Davidson county, has been evidence of irregularities in conduct of Caldwell Co. and Bank Tennessee, subsidiary and already has announced that this soon will be placed before grand jury here.

17. March 8, 1931 The News and Observer Raleigh, NC

Article from The News and Observer, March 8, 1931

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INDICTMENTS BANKING Meanwhile, Tennessee Investigators Begin Drafting Summary of Findings Nashville, Tenn., March were falling into tangled situation tonight members the state investigating committee prepared formulate report for the assembly of their seven investigation. One week until the legislature's recess ends. The necessity for investigators' report to ready for opening assembly ses sions made improbable that furthwitnesses would called prior the initial summarization of testimony. Immediately after hearing fore the committee Knoxville Friday, Knox County Attorney GenFred Bibb drew five indictments against Basil Ramsey, the Bank and subsidiary, Holston Trust Company, both defunct. The charges fraudulent breach trust larceny each These formally issued day, Bibb said. Federal Indictment. Meanwhile, federal grand jury today issued three against believed implicated allegedly criminal Knoxville bank. Federal receivers took and affairs investigated partment agents. The dictments handed down Greenville, Tenn., Knoxville. Attorney General Richard Atkin of Davidson been of conduct of Caldwell and Co., and the Bank Tennessee, and has that placed before grand All the institutions involved associated with Caldwell and investment firm controlled by ers Caldwell, spoken among the South's leading financiers. State charges close friendship and financial asso ciation Caldwell organization and administrative officers Governor Henry Horton. Millions dollars state highway bridge money were placed Cald banks. Caldwell charged allying himself with Col. Luke Nashville publisher and strong administration supporter, financial deals. NAMES OF DEFENDANTS NOT REVEALED so Knoxville, Tenn., March -Secret against prominent the National Bank crash. returned by the federal grand (Please Turn to Page

18. September 3, 1931 The Birmingham News Birmingham, AL

Article from The Birmingham News, September 3, 1931

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LUKE LEA INDICTED AGAIN IN FAILURE OF KNOXVILLE BANK Continued From Page to pay and was then in failing nancial condition. It was charged that Lea "with intent to Injure and defraud said bank," did "unlawfully aid and abet" Ramsey in misapplying funds. Similar charges were made in alleged and sions of $20,000 to the National In$43,890 to The Pub. lishing Company and Luke Lea, Sr., and $23,000 to Luke Sr. was indicted for aiding and abetting in each of the nine It was charged that Ramsey misapplied $43,890 the use of the Tennessee Publishing Company without security when he knew the Tennessee Publishing Company "had no credit with the bank owed large sums in excess of $200, 000." The alleged misapplications. It was charged. extended period of about two years, beginning shortly after Ramsey became president in 1928. An -count indictment charged Ramsey with misapplication and conversion to his own use, to the use the Holston Trust Company of which he was president, and to Lucien Bailey, branch manager here of Cald well Co., of the bank funds. No was furnished, it charged. One count charged that "with Intent to deceive officers and directors of the bank and the comptroller the currency Ramsey "did make and to be false entry" to show deposits were $576,846.33 Bank Officers On Trial On Mail Fraud Charges ASHEVILLE (AP) R. H. McDuffie, acting receiver for tral Securities Corporation, identified its records Thursday as the govern ment began presenting evidence in the trial Wallace B. Davis and W Harris, officers of the corporation on of using the mails defraud McDuffie was the first witness called. president and of ficer of the First Bank and Trust Company acting for the bank receiver for the securities corporation Davis was and Harris vice president of Central Securities, subsidiary of the Central Bank and Trust Company when Davis was president. The bank the corporation failed last Fall. The charges grew out of the sale of Hackelberg; Mrs. C. R. Baker. Vina; Mrs. B. K. Smith, Birmingham; Mrs. Aileen Florey Hatcher, Vincent; Mrs. J. R. Adams. Birmingham, and Mrs A. Webb, Anniston. Second group, welcome first row, left to right: Phil Dorn, Wallace Meshad, O. Ligon, J. R. Vice, J. E. Keith, W. A. Brown, C. C. Screws and