21068. National Bank (Cleburne, TX)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
4035
Charter Number
4035
Start Date
January 1, 1921*
Location
Cleburne, Texas (32.348, -97.387)

Metadata

Model
gpt-5-mini
Short Digest
222ed4f0

Response Measures

Full suspension, Books examined

Other: Federal Department of Justice agent took charge; receiver appointed later and bonding company litigation followed.

Receivership Details

Depositor recovery rate
5.2%
Date receivership started
1921-10-27
Date receivership terminated
1928-10-25
OCC cause of failure
Fraud
Share of assets assessed as good
51.7%
Share of assets assessed as doubtful
18.7%
Share of assets assessed as worthless
29.6%

Description

The bank experienced heavy withdrawals by depositors (and county funds) leading to a suspension on Oct 18, 1921. Subsequent investigation uncovered missing securities and alleged embezzlement by the president; federal agents took charge and a receiver was appointed — the bank did not reopen.

Events (6)

1. May 16, 1889 Chartered
Source
historical_nic
2. January 1, 1921* Receivership
Newspaper Excerpt
Woodridge, receiver of the National Bank of Cleburne, Texas, impaired by the defalcations in 1921, has won in supreme court suit ... (1925 report).
Source
newspapers
3. October 18, 1921 Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals of county funds and depositors combined with poor collections; later investigations revealed missing securities and alleged embezzlement by bank president.
Measures
Issued a public statement; hoped to reorganize (no mention of paying out or special liquidity measures).
Newspaper Excerpt
suspension was due to heavy withdrawals of county funds and poor collections, coupled with withdrawals by depositors.
Source
newspapers
4. October 18, 1921 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension attributed to heavy withdrawals and poor collections; subsequent disclosures of rifled safety deposit boxes, missing liberty bonds, and alleged embezzlement by the president indicate underlying bank-specific malfeasance.
Newspaper Excerpt
The National Bank of Cleburne has announced a suspension of business. The failure is attributed to heavy withdrawals of deposits and to poor collections.
Source
newspapers
5. October 21, 1921 Other
Newspaper Excerpt
The affairs of the National Bank of Cleburne ... 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. J. Wright has caused to be issued a complaint charging S. B. Norwood, president of the bank ... with embezzlement. (Oct. 21 report).
Source
newspapers
6. October 27, 1921 Receivership
Source
historical_nic

Newspaper Articles (9)

Article from Brownsville Herald, October 18, 1921

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Article Text

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."


Article from Casper Daily Tribune, October 18, 1921

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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."


Article from The Nenana News, October 18, 1921

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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.


Article from Omaha Daily Bee, October 19, 1921

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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."


Article from The Topeka State Journal, October 19, 1921

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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.


Article from Omaha Daily Bee, October 20, 1921

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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."


Article from The Topeka State Journal, October 21, 1921

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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.


Article from The Anniston Star, May 12, 1925

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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.


Article from Evening Star, December 1, 1932

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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