422. First National Bank (Jonesboro, AR)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 8086
Charter Number: 8086
Start Date: June 1, 1926*
Location: Jonesboro, Arkansas (35.842, -90.704)

Metadata

Model: gpt-5-mini
Short Digest: e140153b

Response Measures

Full suspension

Other: Receiver appointment/receivership followed closure and dividends paid over years; multiple court suits pursued by receiver.

Receivership Details

Depositor recovery rate: 41.5%
Date receivership started: 1926-06-04
Date receivership terminated: 1936-02-24
OCC cause of failure: Economic conditions
Share of assets assessed as good: 32.5%
Share of assets assessed as doubtful: 39.4%
Share of assets assessed as worthless: 28.1%

Description

Articles indicate a run started in June 1926 (after the closing of the Bank of Black Oak) which precipitated the First National Bank of Jonesboro closing. A receiver was appointed in early July 1926 and the bank remained defunct thereafter (receiver paid dividends in later years and pursued suits). Dates are based on article publication dates; OCR errors in Article 1 obscured exact June day.

Events (7)

1. February 12, 1906 Chartered

Source: historical_nic

2. June 1, 1926* Run

Cause: Local Banks
Cause Details: Run triggered by closing/closure of the Bank of Black Oak (failure of another local bank) which started heavy withdrawals at First National.
Newspaper Excerpt: Closing of Jonesboro Institution Started Run.
Source: newspapers

3. June 4, 1926 Receivership

Source: historical_nic

4. July 3, 1926 Receivership

Newspaper Excerpt: Jas W. Armstrong of Jonesboro, has been appointed receiver for the First National Bank of this city to R. M. Johnson who recently succeeded Robert Morris The appointment was made by the comptroller of currency Washington and Armstrong has taken full charge.; Receiver making out 1,800 checks for a ten per cent dividend (1929-07-04).
Source: newspapers

5. July 3, 1926 Suspension

Cause: Local Banks
Cause Details: Bank suspended/closed following the run precipitated by other local bank failure; comptroller appointed receiver (closure/receivership).
Newspaper Excerpt: Jas W. Armstrong of Jonesboro, has been appointed receiver for the First National Bank of this city ... The appointment was made by the comptroller of currency Washington and Armstrong has taken full charge.
Source: newspapers

6. July 4, 1929 Other

Newspaper Excerpt: Receiver Making out 1,800 Checks for a Ten Per Cent Dividend; checks are being made out ... for ten per cent dividend ... depositors will have received 30 per cent of their deposits by payments made in prior years.
Source: newspapers

7. December 23, 1930 Other

Newspaper Excerpt: Former Cashier Admitted to Bond ... charged with embezzlement ... effort to provide bond ... program of directors calls for formal application for authority to open the bank after completion of the audit (discussion of possible reopening but bank remained defunct).
Source: newspapers

Newspaper Articles (12)

1. June 13, 1926 The Commercial Appeal Memphis, TN

Article from The Commercial Appeal, June 13, 1926

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BANK OF BLACK OAK HAS CLOSED DOORS Closing of Jonesboro Institution Started Run. June The the of the of the stated on since day the First National Bank stated First ous Jonesbor and has Bank of surplus when Bank Bank of Black that in a that even though will their that there Bank some plan arranged reopen no necessary bank to reopen on sound statement the band total and hand Officers Bank of Black Oak were cashier and H. Bass, formed the above directors, G. Boyd Pittinger also rectors National closed its doors on June

2. February 7, 1927 The Sun Jonesboro, AR

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A.B.BANKS MAY HAVEPART IN NEW BANK HERE Receiver Morris of the First National Bank was asked today as to when the first dividend would be paid depositors of the defunct institution. He stated that no-payment would be made until the question of organization of the new Arkansas National Bank is settled. It is now learned that A. B. Banks of Little Rock is interested in the roposition and will likely come here sometime this week to go thoroughly into the matter. It is reported that F.@G McNair. Mississippi capitalist, has returned home and will not be interested further. Game scheduled for tonight beween Prof. Hughes colored school Eskimos basketball team and the Marianna colored school cagers has been postponed until February 14.

3. May 18, 1928 The Sun Jonesboro, AR

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RECEIVER WINNER IN FIRST CASE More accompanying woes of the failure of the First National Bank in Jonesboro two years ago echoed in Federal Court today when trial of suits to collect double assessment from stockholders of the defunct bank started. There are about thirty suits, brought by Receiver Morris and now being pushed by Receiver Johnson, who has succeeded Morris here, to be tried and most of them will have been settled before U. S. Court adjourns next week. The first suit to have jury trial today was that of Receiver Johnson against D. M. Cooley, seeking to collect $3,400. Attorney Basil Baker represented the receiver and Attorney Arthur Adams was counsel for Mr. Cooley The jury went out to deliberate at 1:30 and after two hours returned with a verdict against Mr. Cooley and Robert Fuhr and Lon Craig. It seems according to testimony that the stock in question had been transferred to Fuhr and Craig prior to closing of the bank. The receiver contended that such transfer was made with a knowledge of insolvency existing. This the defendant vigorously denied. Fuhr and Craig had confessed judgement. The question that the jury was to decide was whether Mr. Cooley was liable along with them. The jury decided in its verdict that he was liable and gave judgment against the three for the full amount of $3,400. When the jury retired in the Cooley case another suit was started, Receiver Johnson vs. J. M. Hutton, resident of near Manila, and a stockholder in the defunct bank, seeking collection of his double as sessment of $1800. Baker is representing Johnson and Attorney E. L. Westbrooke is Hutton's counsel. This suit had not been completed at press time. The suits were filed last year and were continued at two terms of U. S. Court. A number of cases have been consolidated and will be tried as one. However many stockholders wanted separate trials. In the Hutton suit the defendant alleges that the stock was sold to him shortly before the bank closed and the charge is made that those selling him the stock had knowledge of insolvency. It is sougnt to make former bank officials liable with him for the payment of his assessment Many interesting things will likely develope in the course of the trials.

4. July 4, 1928 The Commercial Appeal Memphis, TN

Article from The Commercial Appeal, July 4, 1928

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RECTOR YOUTH DROWNS. Swimming Companions Unable to Locate Frank King's Body. RECTOR. Ark., July Frank in the Arkansas ditch, which leads into the St. River, near what known as the Holly Island bridge. between Rector and Kennett, this morning about 10 o'clock. He and a party of boy companions were swimming when the accident OCcurred Unsuccessful have made to locate the body Young King was born and reared In this city. Pie was the son of Mr and Mrs. C. H. King he was at Malden, Mo., by R. H. Wall of this city, who conducts a store at that place. In addition to his parents, he is survived by four sisters. BANK RECEIVER APPOINTED JONESBORO Ark., July 3.-Jas W. Armstrong of Jonesboro, has been appointed receiver for the First National Bank of this city to R. M. Johnson who recently succeeded Robert Morris The appointment was made by the comptroller of currency Washington and Armstrong has taken full charge. Johnson remains for the time be. being as receiver for the defunct banks Marked Tree, Lepanto and Cardwell. He states 10 per cent dividend is now being paid at Lepanto. Armstrong was formerly vice president the Jonesboro Trust Company. HELD FOR KILLING GIRL. LONOKE Ark., July 3.-Joe Adams, -20, who shot and killed Miss Annie Compton, of Vilonia, at dance near Toltec. Saturday night, was given preliminary hearing at Toltex Monday morning and was bound over to await the action of the grand jury. Compton was struck by stray bullet to been fired at John with whom Adams had previously had trouble. Miss died at Little Rock hospital Sunday. Sheriff R. Benton arrested Adams, who was brought to Lonoke and placed Adams will be the September term of circuit court. BUY FIRE EQUIPMENT. HOT SPRINGS. Ark., July City council has an ordiauthorizing special election for a. bond issue of $65,000. which. in a statement issued by Mayor McLaughlin and signed by all the members of council. declares is necessary to fire and street ned to pay off the bonds within five years, at the most

5. December 3, 1928 Paragould Soliphone Paragould, AR

Article from Paragould Soliphone, December 3, 1928

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Bank Awarded $3,400 In Suit for Collection Jonesboro. Dec. of W. Wilson as guardian for Buren Skinner, against the R. Muse Lumber Company. asking $10,000 damages while the employ the ended S. court shortly before noon terday when jury yerdict awarding him, In suit the First National Bank, receiver: against M. Cooley seeking collection of double ment, for Cooley alleges that grounds that the stock transferred to Craig and Fuhr before the bank closed Judgment was recent term court in the but case, trial was granted.

6. July 4, 1929 Jonesboro Daily Tribune Jonesboro, AR

Article from Jonesboro Daily Tribune, July 4, 1929

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2ND FROM NATL. BANK Receiver Making out 1,800 Checks for a Ten Per Cent Dividend According to W. Armstrong, receiver of the defunct First National Bank, checks are being made out at the present time to depositors of the former bank for ten per cent dividend and which be paid out to depositors as soon as they are countersigned in Washington. Mr Armstrong stated this morning that about 1800 checks will be distributed here for the second dividend, the first being paid several months ago and amounting to cent. With the payment per the one in the near future, the depositors will have received 30 per cent of their deposits. Mr. Armstrong stated that the work of making out the checks was progressing but that another week would be required. They must then be sent to Washington for checking to be countersigned and then September, the an-

7. January 17, 1930 Jonesboro Daily Tribune Jonesboro, AR

Article from Jonesboro Daily Tribune, January 17, 1930

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COURT RULED AGAINST BANK RECEIVER HERE Defendants Win in Case To Collect Sum in First National Case Basing his decision on the statute limitation Federal Judge John Martineau yesterday dismissed suits of Receiver Armstrong of the defunct First National Bank here against certain directors institution for approximately charged have been lost to the bank thru improper loans, against McAdams for hundred cent stock on stock transferred before the closing the bank to Pittinger Attorneys Adams and Eugene Sloan, and Lamb repthe defendants the first suit, and Adams and Lamb represented Dr. McAdams in the latter suit Ira Mack of Little Rock represented the receiver suits Judge Martineau told the court that the statute of has at three years and that this construction of this statute by the Arkansas supreme court biriding on the federal Armstrong charged that the directors of the bank loaned funds persons without curity and spite of the that the directors knew of the condition of the bank. In the suit against Dr. McAdams, Armstrong sought to recover the ssessment against 306 shares of bank stock transferred to Pittinger. After failure collect the assessment against Pittinger the receiver asked the court to recover the assessment from McAdams charging assessment in case of failure.

8. December 23, 1930 The Courier News Blytheville, AR

Article from The Courier News, December 23, 1930

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Former Cashier Admitted to Bond But Companions Fail to Make Scott, former cashier the National was family In Memphis today. $2,000 bond pending action federal grand jury in connecthe $50,000 bank short. In which he has admitted Thomas, assistant and Shipman, bookkeeper, facing similar charges, remained Jonesboro pending the efforts to provide bond each. Scott obtained his liberty last night on surety bond, secured bonds signed uncles. Whether Shipman and Thomas will be make according to Max local attorney. who senting Scott and understood, plans to remain Memphts until the case comes trial which will probably be May term of federal court Guilty Pleas Expected Bond for the three men was by Westbrook, Jr., United States court commissioner Jonsboro, before whom they arraigned following the federal warrants Saturday night All are charged with embezzlement and falsification of bank records, offenses earrying ponitensentences of from one twenty years. Scolt and Shipman have signed statements admitting their guilt, but Thomas, Implicated by the others, has his innocence. While Scott and Shipman have admitted embezzlement several thousand dollars each, and falsification of the records to conshortage of they have consistently denied knowlcdge what became of the of the $50,000 which bank ords indicate is missing. All three have been bound over the grand jury. Scott and Shipman, understood, ready plead guilty. What course Thomas will follow unknown. No New Discrepancies Confidence of officers the First National that the shortage will not exceed the $50,000 Indicated the general ledger peared justified today on the basis progress made up to date the audit which now underway. stendy stream of depositors has been visiting the bank yesterday and today verify their and as yet discrepancy of any kind the Individual account records has been uncovered. The of program directors the calls for making formal application for authority to open the bank after the compleof the audit. Date of has not been Confidence of directors and stock holders of the bank that will be on sound basis apparently shared large proportion of the depositors. nouncement by local merchants week that they would accept trade certificates secured by Christsavings accounts at 100 the dollar has received limited response. Of more than in Christmas savings posits only little over $700 had converted Into trade this morning, indicating that majority depositors not only have no immediate need the money but are satisfied safety.

9. January 28, 1931 The Sun Jonesboro, AR

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By Associated Press. BANK SUIT FROM ASHINGTON, Jan. 28.-Testifying before the House Appropriations Committee chairman Payne of the Red Cross today blamed the Senate's CITY REVERSED proposal for the twenty five million dollar red cross relief fund for failure of his organization to raise ten million dollars through private conBY HIGH COURT tributions in less than two weeks. Payne said the Central Committee Suit Pertaining To First Natl. Bank Is Decided. By Associated Press. ST. LOUIS, Jan. 28. The United States Circuit Court of Appeals today held that the Arkansas threeyear statute of limitations did not apply to suits of national bank receivers against stockholders under the federal statute making stockholders liable for twice the amount of their stock. J. W. Armstrong, receiver for the First National Bank at Jonesboro made against stockholders for double liability to bank creditors as of Aug. 10, 1926. He filed 23,1009.- suits to enforce the liability Stockholders appealed and an Arkansas federal district court held the suits filed too late. basing the ruling on Arkensas statute of limitations. In reversing the district court's the Court of Appeals found the Arkansas Supreme Court did not interpret the statute limitations in Its relation to the federal statute on double liability. The court's ruling leaves the receiver free to proceed with suits against The suit was against H. H. McAdams, owner of 306 shares of bank stock, $25 par value, and others. of the Red Cross had adopted a resolution against accepting the administration of funds for general relief as in the Senate's proposal. By Associated Press.' ASHINGTON, Jan. -Responding to chairman Payne's statement that the Red Cross will not accept government funds democratic leader Robinson told the Senate today it will set up its own agencies for distribution of the relief funds and threatened an extra session to get relief measures passed. He attacked President Hoover's attitude toward relief vigorously and was seconded by Senafor McKellar of Tennessee who urged blocking of appropriations unless relief is given.

10. January 28, 1931 Monette Weekly Sun Monette, AR

Article from Monette Weekly Sun, January 28, 1931

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BANK SUIT FROM CITY REVERSED BY HIGH COURT Suit Pertaining To First Natl. Bank Is Decided. By Associated Press. ST. LOUIS, Jan. 28. The United States Circuit Court of Appeals today held that the Arkansas threeyear statute of limitations did not apply to suits of national bank receivers against stockholders under the federal statute making stockholders liable for twice the amount of their stock. J. W. Armstrong, receiver for the First National Bank at Jonesboro made assessment against stockholders for double liability to bank creditors as of Aug. 10, 1926. He filed suits to enforce the liability Dec. 23, 1929. Stockholders appealed and an Arkansas federal district court held the suits filed too late, basing the ruling on Arkansas statute of limitations. In reversing the district court's decision, the Court of Appeals found the Arkansas, Supreme Court did not interpret the statute limitations in its relation to the federal statute on double liability. The court's ruling leaves the receiver free to proceed with suits against stockholders. The suit was against H. H. McAdams. owner of 306 shares of bank stock, $25 par value, and others. By Associated Press. WASHINGTON, Jan. 28.-Testifying before the House Appropriations Committee chairman Payne of the Red Cross today blamed the Senate's proposal for the twenty five million dollar red cross relief fund for failure of his organization to raise ten million dollars. through private contributions in less than two weeks. Payne said the Central Committee of the Red Cross had adopted a resolution against accepting the administration of funds for general relief as in the Senate's proposal. By Associated Press. ing to chairman Payne's statement that the Red Cross will not accept government funds democratic leader Robinson told the Senate today it will set up its own agencies for distribution of the relief funds and threatened an extra session to get relief measures passed. He attacked President Hoover's attitude toward relief vigorously and was seconded by Senator McKellar of Tennessee who urged blocking of appropriations unless relief is given.

11. January 28, 1931 The Courier News Blytheville, AR

Article from The Courier News, January 28, 1931

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Three Year Limit Does Not Free Bank Stockholders of Double Liability. ST. LOUIS, Arkansas statute of limitations in Its relation to suits of national bank receivers against stockholdfor double on bank holdings, was held by the United States Court Appeals here yesterday. The appellate court reversed and remanded decision of federal for the eastern district of which ruled in favor stockholders of the First National of Jonesboro, who invoked the statute of limitations on double bility to bank creditors debts in 1926. also found the Arkansas preme Court had not interpreted the statute limitations in its lation the federal statute double The case taken to court by stockholders of the boro bank when M. filed suits in December 23. 1929 for double Hability to bank creditors of August 1925 The court's ruling leaves the ceiver free to with against the

12. April 28, 1931 The Sun Jonesboro, AR

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No Rush To Get Dividend Checks Receiver J. W. Armstrong of the First National Bank has about come to the conclusion that people of this county are not in need of ready cash as much as has been indicated. Since receiving 10 per cent dividend checks for depositors of that bank over a week ago and advertising it extensively, less than 600 out of 1825 of the checks have been called for. He states that a number of the checks still remaining are of the larger denomination.