Article Text
CLOSED ITS DOORS. Brownwood, Tex., May 30.-The First National bank of this city has suspended and a receiver will be appointed It is said by the directors that the depositors will be paid in full. but the stockholders will lose all.
21057. First National Bank (Brownwood, TX)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- national
- Bank ID
- 2937
- Charter Number
- 2937
- Start Date
- May 30, 1893
- Location
- Brownwood, Texas (31.712, -98.976)
Metadata
- Model
- gpt-5-mini
- Short Digest
88f8de7d
Response Measures
None
Description
Multiple contemporaneous newspaper reports (May 30, 1893) state the First National Bank of Brownwood suspended and a receiver (B. B. Paddock) was appointed. Subsequent local reporting documents alleged embezzlement by the cashier S. J. Walling Jr.; a receiver remained in charge, indicating permanent closure/receivership rather than a temporary suspension and reopening. One article quotes Walling claiming a prior run but that is his statement and not corroborated as causing a temporary reopening; primary facts point to suspension leading to receivership due to adverse bank-specific conditions (embezzlement/bad loans).
Events (4)
1.
April 28, 1883
Chartered
- Source
- historical_nic
2.
May 30, 1893
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Bank suspended and receiver appointed amid disclosures of deficient condition; subsequent reporting alleges large embezzlement/misappropriation by cashier and bad loans.
- Newspaper Excerpt
- CLOSED ITS DOORS. Brownwood, Tex., May 30.-The First National bank of this city has suspended and a receiver will be appointed.
- Source
- newspapers
3.
June 1, 1893*
Receivership
- Newspaper Excerpt
- The bank examiner ... took charge and Hon. B. B. Paddock receiver. ... Receiver B. B. Paddock, of Fort Worth, who is in charge of the affairs of the failed bank, was present ... Captain Paddock said his business in Washington was solely with affairs connected with the First National bank of Brownwood, of which he is receiver. (June-July 1893 articles.)
- Source
- newspapers
4.
July 1, 1898
Voluntary Liquidation
- Source
- historical_nic
Newspaper Articles (8)
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Article Text
CLOSED ITS DOORS. Brownwood, Tex., May 30.-The First National bank of this city has suspended and a receiver will be appointed. It is said by the directors that the depositors will be paid in full, but the stockholders will lose all.
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OUR PROSPERITY COLUMN. FOSTORIA, O., May 29.-Saturday night the N. Ports Hardware Company, in which ex-Governor Foster is interested, made an assignment and Port's farm in the oil region was attached. BROWNWOOD, TEX., May 27.-The First National bank of this city has suspended and 8 receiver will be appointed. The amount of assets and liabilities is not given. It is said by the directors that the depositors will be paid in full, but the stockholders will lose all. KANSAS CITY, May 29.-The Farmers' & "Merchants' Lumber Company yards at Kansas City, Kas., was seized to-day by George L. Chapman, 8 capitalist of Pittsburg, Pa., under a chattel mortgage. The mortgage under which the seizure was made was executed several months since, when S. B. Baker, a wealthy lumber dealer of Chicago, who owns the yards, borrowed $100,000 from Chapman, executed his note for the amount secured by the yards here and also some valuable realty in Chicago. The seizure was prefaced on Sunday morning, when S. Baker executed a mortgage on property in Kansas City, Kas., and in various other parts of the state in favor of the National bank of Chicago, to secure the payment of certain obligations due and soon to be due the bank. OTTUMWA, IA., May 29.-Wells & Garretson, private bankers at Fairfield, have suspended payment to await the result of collections. The deposits are small and the suspension was not unexpected. The liabilities are $50,000; assets over $80,000. CINCINNATI, May 29,-A. Steinon, a prominent jeweler, has assigned to Albert Mac. Assets, $65,000; liabilities, $72,000. MACON, Mo., May 29.-The Loomis Coal Company, of Bevier, Mo., went into the hands of a receiver this afternoon. A correct statement of the affairs of the concern have not been given out, but it is known the assets will amount to $300,000, and that the liabilities will exceed that amount. CHICAGO,May -Unable to get financia 1 help from local banks, Weaver, Getz & Co., coal dealers, with headquarters at 217 and 219 Dearborn street, have been driven to a temporary suspension, Their liabilities, consisting principally of indebtedness for coal throughout Ohio, Indiana and Illinois, will reach $300,000 it is said. WASHINGTON, May 29.-The National bank of North Dakota, Fargo, N. D, and the First National bank of Lacota, at Lacota, N. D., were closed to-day by orders issued by Mr. Eckels, comptroller of currency. Both these banks were organized by E. A. Ashley Mears, who is also the organizer of other national banks and of many state banks and other institutions. His plan, says the comptroller, appears to have been to make loans to various institutions, subscribing to the stocks of the two national banks in amounts which in some cases exceeded the amount of the stock sub. scribed to by them. The management of the Fargo bank was ostensibly conducted by 8 board of five directors, consisting most of the time of E. Ashley Mears and wife, mother and sister of
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THE First Nation il Bank at Brownwood, Texas, has suspended. It is thought depositors will be paid in full, but stockholders will lose everything
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Charged With Embezzling and Making False Reports. GOT AWAY WITH ABOUT $70,000. Cashier of the First National Bank at Brownwood. S. J. Walling, Jr., late cashier of the First National bank Brownwood, was arrested at that of place yesterday on a charge of mis. and to the extent of funds appropriating embezzling *70,000 before United States Finks of this day brought mission afternoon. city committed yester- Com- bank and to He was of a to a preliminary await jail in default $10,000 examination bond Finks was arrested on a before Walling issued Commissioner July war- 10. rant by United States Com. missioner Charles Lednum of Dal las, on an affidavit made by John Gannon, bank examiner. The warrant for his arrest was issued June 27. The bank examiner made investigation of the bank's an a week ago on a about made complaint affairs by one of the stockholders. He found the condition of bank to be such that he immediately the took charge and Hon. B. B. Pad. dock receiver. of Fort Worth was appointed The warrant specifically charges Walling with misappropriating and embezzing the bank's funds, mak. ing false entries in the. books and false reports to the comptroller of the currency. Deputy United States Marshal to McCampbell brought the city on the "Katy" this northbound prisoner afternoon. train at 4:05 yesterday He was uncommunicative but the fects in the case are obtainable. Walling came to Brownwood from Shelbyville, Tennessee, about three years ago, and W38 the princi. pal organizer of and a large stockholder in the bank. He has been always highly re spected and trusted, and seemed be an energetic, conscientious to tleman, and the news of the charges gen. preferred deal against him caused a good of surprise and some excite. ment in Brownwood. He claims that the trouble caused by lending the bank's was re. sources on bad security, in the ular course of business, and states regthat the president and directors of the bank were cognizant of these transactions, although the bank officials went back on him, 80 he states, when he could not realize upon the money loaned. Walling is thirty-seven years old, has a wife and two children and is a rather prepossessing man personally, being rather tall, with light complexion, hair and last night that he ex. He stated make eyes. pacted to bond this morning, as soon as he heard from his friends. MR. WALLING TALKS. Mr. Walling made a short state. ment to a NEWS reporter at the jail this afternoon. He said that although he had suffered almost death, yet he had done nothing criminal. 'The bank," said he, "was running along smoothly in was all and were everything right. May We doing a big business in and carried a amount wool interest large the of wool paper. About this time the board of directors saw fit to discharge a number of bank officers who had the confidence the friends and this of dissatisfaction, which in on a run on the bank, which 15th of and until the 15th of when the bank out all money we had closed by the board, when aminer took charge. The board haia comference with after deliberations embezzlement, the negotiated to the which I amount loans of rested. June, "As the bank's shortage the for the lasted finally I him and prid was the caused began I ended May was and ex ar the with which am charged, are all in the bank, and
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THE WALLING CASE. United States Commissioner Finks Will Go Into It This Afternoon. Mr S. J. Walling, late president of the First National Bank of Brownwood, who was arrested by Bank Examiner Gannon last month on the charge of embezzling and misappropriating the bank's funds, and also for making alleged false reports to the comptroller of the currency, accompanied by his attor. ney, Mr. C. H. Jenkins, of Brownwood, and a number of friends, ap. peared before United States Com. missioner Finks in the federal building at 10 o'clock this morning. Owing to the absence of United States District Attorney Marshal, of Dallas, no evidence was heard. The commissioner read the com. plaint, Walling pleaded not guilty and the court took a recess until 3 o'clock this afternoon to await the arrival of Mr. Marshali. Should he not be here at that hour Mr. Finks said that he would go on with the case this afternoon. The $10,000 bond which Mr. Walling's friends made for him will hold over until the examination is finished. Mr. Walling is cheerful and seems to take matters easily, and his friends show a determination to stick to him. Receiver B. B. Paddock, of Fort Worth, who is in charge of the ffairs of the failed bank, was present, and 80 were Assistant Cashier E1 T. Smith and two directors.
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PERSONAL. Mrs. R. G. Lightfoot, of Rosebud, is at the Royal. Gen. "Sul" Ross is at the Pacifio. He arrived yeaterday afternoon. Mrs. J. E. Allison will leave for Hillsboro, N. C., to-morrow morning to spend the summer with relatives. Hon. B. B. Paddock, mayor of Fort Worth, also receiver of the First National bank at Brownwood, is in the city. He will probably testify at the hearing of the Walling case this afternoon.
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CROWLEY & SIMMS. "GOOD MORNING, HAVE YOU USED"White Frost lard? It's pure-absolutely pure. THE MAYOR BACK. His honor, Mayor Paddock, has returned from a trip to Washington. Captain Paddock arrived yesterday morning on the Rock Island. He intended to be home last week, but the washout of the Rock Island's bridge over the Canadian cause a delay of four days. When seen yesterday, Captain Paddock said his business in Washington was solely with affairs connected with the First National bank of Brownwood, of which he is receiver. He said, he could give nothing that would interest the public. Regarding the postmastership of the kity, he knew nothing except there was no likelihood that the appointment would be made any time soon. He became mixed up somewhat with politicians, but knew nothing of the situation, except that it was much mixed. Captain Paddock was very profuse in his praise of the handsome manner in which the Rock Island cared for the comfort of the passengers who were delayed four days at the Canadian. They remained at Ell Reno most of the time. and the railroad officials succeeded in making the delay a very pleasant one. In Captain Paddock's party were Mrs. Everett Wyatt, Mrs. W. A. Brooks and mother, Mr. J. A. Murphy, of the Fort Worth and Denver, and others. "HAS YOU"- CURED OTHERS, WILL CURE Of using poor lard. It's pure-absoiutely pure,