gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
f130f5839db24167
Response Measures
Full suspension, Books examined
Clearinghouse involved: Yes
(loan, examination, or other measures)
Receivership Details
Depositor recovery rate
55.1%
Date receivership started
1930-11-12
Date receivership terminated
1941-05-07
OCC cause of failure
Governance
Share of assets assessed as good
36.6%
Share of assets assessed as doubtful
59.0%
Share of assets assessed as worthless
4.4%
Events (5)
1.October 24, 1891Chartered
Source
historical_nic
2.November 10, 1930Run
Cause
Local Banks
Cause Details
Heavy withdrawals triggered by collapse of Caldwell & Company and closing of the Bank of Tennessee (knock-on panic).
Measures
None effective to stop withdrawals; bank later suspended and turned assets to comptroller.
Newspaper Excerpt
Directors said the bank was forced to close because of heavy withdrawals during the past few days.
Source
newspapers
3.November 12, 1930Receivership
Source
historical_nic
4.November 12, 1930Receivership
Newspaper Excerpt
Herbert Pearson, field representative of the comptroller of the currency, ... has been appointed receiver of the closed Holston Union National Bank.
Source
newspapers
5.November 12, 1930Suspension
Cause
Local Banks
Cause Details
Board-ordered suspension after heavy withdrawals linked to the Caldwell collapse and related bank failures.
Newspaper Excerpt
Holston Union National ... suspended operation as a banking house today. Its assets and properties have been turned over to the national comptroller of the currency for administration.
Source
newspapers
Newspaper Articles (22)
1.November 12, 1930The TennesseanNashville, TN
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Article Text
HOLSTON BANK BY BOARD'S ORDER
Necessary to Protect Depositors, Creditors, Stockholders.
KNOXVILLE Tenn., Nov. Holston Union National for years of powerful banking institutions in this section of the state, suspended operation as banking house today. Its assets and properties have been over to the national comptroller of the currency for administration under the federal laws relating to national banks. of the above was made in this formal statement the board directors given to the press tonight: reason of the heavy withdrawals has been compelled to withstand within the past few days, its cash reserves have depleted point where cannot without assistance from outside sources.
Directs Suspension. "Being unable arrange for this assistance the brief time intervening since the of large sums not the usual course business began, has become necessary for the board direct suspension in order that the credistockholders should be protected. "All and properties of the banking this date. have been delivered up to the comptroller the currency for ministration under the federal laws relating to national banks. board has likewise appointed committee with parties with either this the zation other association, which will the assets this bank, with object protecting its depositors.
Believe Bank Solvent. "It the belief of the board that this bank could tinue with profit its stockholders. the business the but for the unusual and extraordinary have been made within the past few This based upon the following and passed by the board of directors: "That in order conserve and protect assets and properties this for the benefit
2.November 12, 1930The Huntsville TimesHuntsville, AL
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Article Text
HOLSTON NATIONAL CLOSES DOORS
Knoxville Banking House In Difficulties
BIG WITHDRAWALS CAUSE OF CLOSING for Bank DeAttorney clares It Is Solvent And Will Pay Out
Special To The Daily Times ficials of the National Knoxville, depository of state funds, last night announced that the bank had suspendoperations its affairs been over by the federal comptroller of currency. of the stock of the bank said to owned by Col. Caldhead Caldwell taken last week by clearing house When State Treasurer John Nolanw as for statement the state funds on posit the Holston bank, was said his home Nashville that the treasurer in bed, but he sent word the telephone that would public the exact total today. The last report, published under date of June showed total with the Holston bank at that time. Of this, general state $1,603,962.50 the special highway fund. Highway Commissioner Baker, when for estimate the total highway funds carried the said that he "could make estimate" without reference his records, but that would the total today. the reason of (Continued on Page Ten)
HOLSTON-UNION IS CLOSED; RECEIVER IS SENT HERE BY
Suspends Activity at Both Banking Houses Here; Heavy Withdrawals Blamed; Poorly Secured Loans Believed a Factor.
CALDWELL CRISIS SEEN AS CAUSE
Decision To Close Reached After Conferences Tuesday; Directors Hope To Reorganize or Form New Bank.
The one of Knoxville's three National Banks, closed today. Its failure to open was preceded by an nouncement issued directors that the bank had suspended operation. Heavy withdrawals during the past few days were given by directors as the reason it was necessary for the bank to close. While their statement did not say so, it is known that these were occasioned by the recent collapse of the strueture of Caldwell and Company of Nashville and the subsequent closing last Friday of the Bank of Tennessee, Caldwell's Nashville state bank which had several millions in public funds on deposit.
Treasury Man Is Receiver Herbert Pearson of the Treasury staff has been appointed receiver the the currency comptroller's office informed the NewsSentinel correspondent today. Pearson, who has been member of the Treasury's regular staff receivers years, and who has had wide experience, working with bank Macon, Georgia, before being sent to Knoxville. He was due here time today and immediate charge. effort had been made by prominent Tennesseans have William Baxter Lee, Knoxville lawyer, appointed receiver; but the Treasury explained to those suggested his name that had not been their practice to point lawyers to such posts, and, addition, they had staff ceivers their own utilize such emergency, the dispatch the Treasury would talk of the reasons for the closing bank, but it learned that officials of the department had been kept the last days the withdrawals from the Knoxville institution. fact that Caldwell investment house that was put in the hands of committee trustees recentwas interested in the Knoxville bank, unofficially given Washington reason for the closing. An effort being made to form separate organization take the affairs of the HolstonUnion. this funds of depositors will immediately available, bank official said day.
Admit Boxholders Soon Safety deposit box holders will be admitted to the bank within few days. Some of employes of Holthe will be laid off and others will be kept. learned from bank official. National Bank examiner for charge the day. Depositors will be given preference in funds, assets of the including the Holston Bank building owned by the subject to their claims.
Time to Settle Uncertain don't know how long will determine the status bank. Basham told Depositors will, course, be given preference payment. Basil Ramsey, president not come kthis morning. At his the ban home Hills, told reporter that he did wish make statement other than that made by the rectors night. The federal banking officials will appoint receiver who will liquidate assets the the depositors first. other bank affected by the closing the number new accounts have been opened here and there have been speak Cowan Rogers, City National Bank president, said. President Carter, the East Tennessee National Bank. not comment the matter except to say that know my right.' Checks drawn on funds in the after close of busiMonday cannot be honored local bankers The bank closed all day yesterday for Armistice Day. Caldwell and the South's largest financial concern, placed the hands mittee three Nashville banklast week. Rogers was the owner of 700 shares stock, minority the He had also been heavy borrower the bank, Basil Ramsey, its presiadmitted statement last week which Ramsey pointed that Caldwell and Company not connected the He said that the bank had not time loaned any to Last This
4.November 13, 1930The Tampa TribuneTampa, FL
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Article Text
Receiver Takes Over Knoxville Bank
KNOXVILLE, Tenn., Nov. 12.-Herbert Pearson, field representative of the comptroller of the currency, in Knoxville today to take charge of the closed Holston Union National bank. He has been appointed Pearson said he had no idea how long it will take determine status of the bank which suspended business by order of the board of directors last night. Directors the bank said the bank was forced by reason of "heavy withdrawals made within the past few days." But none of the bank's officials or directors would say by whom withdrawals made, the amount, assign any reason why "heavy withdrawals" were made. J. Basil Ramsey, president of the bank, said it as his belief the bank is solvent.
Pearson Assumes Charge of Bank
Knoxville, Tenn., Nov. bert Pearson, field representative the comptroller of the currency, today assumed charge of the closed Holston Union National Bank as receiver. The bank was closed by order of the board of directors Tuesday night. Pearson said he did not know how long would take to ascertain the status of the banking house. Directors said the bank was forced close because of "heavy withdrawals within the past few days."
6.November 13, 1930The Montgomery AdvertiserMontgomery, AL
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Article Text
FEDERAL OFFICER TAKES OVER BANK Institution's Condition Is Still Unknown; Withdrawals Blamed
KNOXVILLE, TENN., Nov. Herbert Pearson, field of the comptroller of the currency, arrived in this to take charge the Holston Union National Bank. He has been appointed receiver. Mr. Pearson said he had no idea how long will take to determine the status the bank which business by order the board of directors Tuesday The receiver came from Macon, Ga., his headquarters. Directors of the bank said the bank was forced to close by reason "heavy withdrawals made within the past few days," but none of the banks officials or directors would say by whom withdrawals were made, the amount, assign any reason why "heavy withdrawals" Basil Ramsey president of the bank, said approximately $750,000 withdrawn from the Union on Monday. He added that was his belief the bank solvent, could have tinued if withdrawals had not depleted reserves." Edward McMilan, chairman on rethe Union, said today he had nothing to, announce regarding The Clearing House Association in statement this afternoon said that its members had availed themselves of the 30-day notice required for withdrawal of time deposits and savings The institution said in statement that "it feels there occasion for on the part of the depositing public. Constant and withdrawals from all of the Knoxville banks, if continued, would in all probability be very damaging all the banks of the city and to all depositors.
Pearson Assumes Charge of Bank
Knoxville, Tenn., Nov. bert Pearson, field representative of the comptroller of the currency, today assumed charge of the closed Holston Union National Bank as receiver. This bank was closed by order of the board of directors Tuesday night. Pearson said he did not know how long would take to ascertain the status the banking house. Directors said the bank was forced close because of "heavy within the past few days."
STATE FUNDS TENN. SUSPENDED
Holston Union-National, Largest Knoxville Bank, Closes Doors
$195,000 CARTER CO. FUNDS INVOLVED
Suspension of Knoxville Bank Follows Steady Withdrawal of Deposits, Depletion of Cash Fund
Nov. the National Bank Knoxville to open its doors this morning left the state Tennessee and night with approximately $5,813,777, and more, in two banks that have suspended operations Suspension of business by National was caused heavy during past few days, the the failure Friday the Bank of Tennessee Nashville of the Caldwell hands of committee three bankers. Rogers Caldwell, head of Caldwell and Company, minority stockholder in Holston Union National of Knoxville. An inventory filed today by Robertson, state bank superintendent, that approximately 400,000 state county deposit the closed Bank Tennessee Naghville, State Baker today that highway funds deposit State John Nolan $197,000 of the general fund and $168,000 the University of sinking fund deposit at the bank.
S. MAN AT KNOXVILLE Tenn., Nov. Pearson, field sentative of the comptroller currency, arrived today to charge the closed National receiver. Mr. he had no how long will take determine the status the bank which pended business by order board Tuesday night. The came here Macon, Ga, his headquarters. of the bank said forced to by reason withdrawals made within the past days.' Basil Ramsey, president of the bank said amounted to nearly $750,000. added that it was his belief the bank solvent. Edward McMillan chairman organization the said today he had nothing to nounce regarding his committee's work.
KNOXVILLE BANK CLOSES
Tenn., Nov. doors of the ion National Bank, which for years one the largest financial stitutions East Tennessee, closed today. Directors of the bank in last night announced that "necessary for board direct business order that interests deposistockholders should protected." The statement expressed the board's belief that the bank vent, would continued business, for the unusual and extraordinary withdrawals which been made within the past bank's published cial statement October second liabilities and assets $16,300.359.69 Under liabilities mand deposits given and time deposits at Capital was given at
(See Page Two Column
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."
10.November 13, 1930The World-NewsRoanoke, VA
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Receiver Takes Over Bank At Knoxville
Herbert Pearson, field representative of the comptroller of the currency, arrived yesterday to take charge of the closed Holston Union National Bank as receiver Mr. Pearson said he had no Idea how long will take to determine the status of the bank which suspended business by order at the board of directors Tuesday night The receiver came from Macon, Ga., his Directors of the bank said it was forced to close by reason "heavy withdrawals made within the past few days. Basil Ramsey president of the bank. said withdrawals Monday amounted to nearly $750,000. He added that it was his belief the bank is solvent. Edward J. McMillan chairman of reorganization of the Holston Union said today he had nothing to announce regarding his committees work.
11.November 14, 1930Evening StarWashington, DC
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BANK-CLOSING FLURRY WANES AT KNOXVILLE Clearing House President Says Business Has Returned to Normal-Much Cash Returned. By the Associated Press. KNOXVILLE, Tenn., November 14.-1 A. P. Frierson, president of the Knoxville Clearing House Association, announced yesterday that "excitement on the part of the depositing public in Knoxville caused by the closing of the Holston Union. National Bank has subsided and banking business has res turned to normal." He said that "much of the money withdrawn from Knoxville banks by depositors Wednesday was redeposited yesterday." Herbert Pearson, representative of the United States controller of currency and receiver of the Holston Union Bank, said the bank's doors may be opened next week for collections.
PROBE
Legislator Urges State Investigation.
Goodwin. floterial for Knox Loudon Counties, thoro "state favored banks" change in state's taxing system. hope be people without fear especially this time and ing the financial conditions some of our state favored banks. On the face of things, looks there radically wrong which certain officials should have notice. have also made thoro matters taxation want aid change the taxing system now in use Goodwin is city attorney of Lenoir City. He attended U-T for two years and University of Michigan four years, from which he was graduated with the degree of LLB.
Thus, when the Bank of Tennessee closed, with liabilities its total cash on hand $32.55. The remainder of its assets consists of stocks and bonds with book value of $12,655,094.61. The liabilities and assets of the Bank at the time of closing have not yet been disclosed. The state government's deposits the and Bank Tennessee totalled 543.15, which the Nashville bank and in the bank Knoxville.
Seven Counties Hit Seven Tennessee counties had in the Bank Of the Knox county deposit of by the The other counties were Weakley, CarDyer, Grundy and Roane. several counties and cities have claims against CaldCo. city with claim of $302,000. The city of Knoxville the only city in the deeply the failures. Knox county and Knoxville together had in the two funct banks. Knox county officials went Nashville the county's $733,531 the Bank of came back and reported the security money find the lowing public funds in the banks: both banks county HolstonCity Knoxville in unreported $7,133,359.05 The Harriman money, representing the proceeds from the its municipal power plant. believed to be with Caldwell Company. The Knox county money in the Holston Union is secured by surety bond, Three Other States Suffer Tennessee, the state, cities and counties, the only state deeply in the two bank failures. Louisiana, spite (Turn to Last Page This Section)
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
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)
POLE DENIES BANNING PROBE
U. Comptroller Contradicts Letter Read to Committee.
John W. Pole, U. Comptroller of the Currency, flatly contradicted testimony before State vestigating committee that ordered bar against federal spection Holston-Union tional Bank records, according to Associated Press dispatch from Washington. The dispatch said: "John W. Pole, Comptroller of the Currency, said today he not familiar with the action the federal receiver had taken in gard. requests that the records the Holston-Union National Bank be made available to the Tennessee Legislative Investigating committee investigating bank failures. said the matter was being handled the federal receiver and his and reports had not been made to Washing- letter signed by Receiver Herbert Pearson, read to the mittee this morning by Attorney Harley Fowler, Pearson said: reply to your request that (the committee) permitto examine into the affairs the National Bank. respectfully advise you have been instructed by the Comptroller the Currency to not agree that this be
SCREAM KILLS LISTENER
LYNN, woman's two weeks ago scream, the course of radio mystery realistic that Mrs. Cecile Dane suffered shock. She died yesterday.
Receiver Tells How To Get Your Bank Dividends
How to get your dividend: You will first be notified by postcard by the bank receiver that has been approved. Take that postcard and receipt given you when you filed appear at Union branch Street National Bank, 300 South Gay Appear at the proper teller's window and present your post. card and be issued receiver's Go National Bank and present your dividend order. That bank credit your ac. count with the amount due and you may the it on the bank's check Preserve your receiver's cer tificate must be shown when later dividends are paid. claims have been approved may call at the Union branch of the old Holston-Union 300 South Gay Street and receive their dividend orders. The first set of 500 cards was mailed out last night Each day 500 names will be selected at random from the list of whose claims have been approved. Pearson said Hamilton National Bank has $4 in credits which to honor the dividend orders, having purchased assets to that value from the defunct HolstonUnion last week President C. M. Preston said yesterday that the bank staff been thoroly schooled in the clerical work required in paying claimants
17.July 3, 1931The State JournalFrankfort, KY
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BANK RECEIVERS NAMED IN SUITS
Colonel Luke Lea Files Court Action In Nashville
NASHVILLE Tenn., July 2 (By A.
Luke Lea, friend and former financial ally of. Rogers Caldwell, today had on file a suit for $107,000 against receivers for Caldwell & Co., alleging that stock he put up to secure two of his notes had been disposed of illegally by the investment house.
His petition in United States dis here was in answer to one field by the receivers which seeks judgment on the $103,093.95 in notes. It said that to secure $54,060.94 note*he put up 132 shares of stock In the now closed Holston Union National Bank of Knoxville, and that on a $49,033.01 note 163 shares of the stock was pledged. This stock, allegedly worth in ex cess of $104,000 when it. was pledged and readily salable In an active market, was "wrongfully converted.' the petition said, because It was dis. posed of when there was either an (Continued On Page Two).
MORE ABOUT
U-T Trustees
STARTS ON PAGE ONE earned for us about which will nearly offset the estimated loss on our deposit in the bank. That loss is figured the basis of total dividend of 70 per cent expected from the bank The trustees approved the installation of new tem for the university following report by W B. Franke, New York auditor The system went into effect July Under the new system, President H. Morgan said, the reports are made uniform and available to prompt for details than heretofore. The legislative committee last spring investigating U-T. more accounting system of the sytem, however has been under way since last and follows lines of special national committee which worked out the first uniform system for accounting in institutions of higher learning Franke was a member of this To Handle Law Review The trustees authorized the ganization of corporation for handling the Law Review, publication of the U-T College of Law, in relation to the State Bar Association. The Bar Association recently adopted the publication as its official organ and the new corporation will make this effective. The name of Henson Hall for the new girls' dormitory was approved. The name honors the late Martha Henson, who left bequest for building dormitory. The meeting to have started but the hour was 10 before Governor Horton, last to appear, arrived and the trustees closeted themselves. Budget Is Lower
Dr. H. Morgan, U-T president, said the budget would be around $936,000. or about $100,000 less than last year's. It was to be the finance committee's job to spread this reduced fund over each department of the University without crippling operations. The finance committee, headed by Paul Kreusi of Chattanooga, was also to report the collection of the 40 per cent dividend from the Holston-Union National Bank receirevrship. When the bank closed last November U-T had about on deposit including in building funds. Those on hand were the following trustees: Stokely of Newport Gen. Spence Kreusi Major Memphis. Wassell Martin. Col. Shields of Knoxville and Will White of Memphis did not appear Ex-officio members present: President Morgan. culture. Fitts, commissioner of agri. cation. Harned, commissioner of edu. Dean Hoskins was also present to report on administrative affairs.
19.July 23, 1931Evening StarWashington, DC
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# PROSECUTOR SAYS LEA
# MUST PRESENT PLEA
Tennessee Indictment Abatement
Arguments to Be Heard at
Knoxville August 1.
By the Associated Press.
KNOXVILLE, Tenn., July 23.-William Carter, United States district attorney, announced yesterday that Col. Luke Lea, Tennessee published, indicted in Federal Court here on charges of violating national banking laws, must be present or represented by counsel in event his plea for abatement of the indictment is argued in Knoxville August 1.
Rogers Caldwell, president of Caldwell & Co., investment banking house now in receivership, and J. Basil Ramsey, president of the defunct Holston Union National Bank here, are indicted jointly with Lea, and they have joined in making the abatement plea.
Carter said their counsel have asked him to continue the abatement plea hearing, since Lea is scheduled to go on trial in the State Court of North Carolina at Asheville July 27 on charges arising from the failure of the Central Bank & Trust Co. there.
"When the North Carolina case against Lea was originally set for July 13, I agreed to pass the hearing to August 1 to accommodate them," Carter said. "If they don't show up, I'll call for a bond forfeiture."
SUES DAVIS FOR $274,272
Holston Bank Receiver Says Asheville Man's Notes Unpaid.
ASHEVILLE N. C., Oct. Herbert receiver of the closed Holston Union National Bank of has filed suit here against Wallace B. Davis, president of the Central Bank Trust of Asheville for $264 and $10,000 interest, unpaid the Knoxy bank bought from the bank which were endorsed by the latter's president. Mr. Pearson alleged that on June 30, 1930, the Central Securities Company of Asheville, a subsidiary of the bank, executed $125,000 note which was secured by 2,050 shares of stock of the Mortgage Company, 192 shares Central Bank Trust Company stock and 100 shares of Federal Mortgage Company stock. In addition, Pearson alleged, Davis endorsed the note as part the consideration. The Holston Union National Bank also purchased of from the Asheville bank which Davis IS alleged to guaranteed This series originally totalled $15,716.60 but has been reduced to $139,272.67 Pearson said. This series consists of obligations of many Asheville companies individuals, the complainant concludes.
INDICTMENTS DISMISSED FOR LEA AND ASSOCIATES
KNOXVILLE, May 25 (P).-Indictments returned at Greeneville more than year ago charging Col. Luke Lea and Rogers Caldwell, of Nashville, and B. Ramsay, of Knoxville, with violation of the national banking laws, were formally dismissed in federal court today. Application of United States District Attorney W. J. Carter for an order nolle prosequi was granted by Judge George Taylor without The indictments followed the failure here in November, 1930, of the Holston Union National bank of which Ramsay was president and Lea and Caldwell stockholders. Lea and still face charges out of the bank's failure. have been postponed until the next term of the Knoxville federal court. A trial date will be set next Tuesday. Carter said the Greeneville cases against Lea, Caldwell and Ramsey were nolle because he was forced either to "try or dismiss' them and he wanted to try the Knoxville indictments first.
Truck licenses in Michigan for 1932 are expected exceed 1931 in state revenue by $100,000.
BASIL RAMSEY IS WITNESS
Appears In Court Here In Bank Note
J. Basil Ramsey former president the failed Holston Union National Bank, was back in Federal Court This time he was witness. in case brought by H. Dulin against Carpenter, the bank's receiver. Dulin is suing for $6100, which he says is due on agreement he had with Ramsey His allegation is that note he held was sold the bank with the understanding that he would not draw the money of the bank until the note due. On the date the note was renewed by the and Dulin alleges his responsibility ended and was due him. The bank failed
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
