Western National Bank (Louisville, KY)

View Charter #7457 on SPMC View balance sheet

Episode Information

Episode UID
745701268
Episode Type
Run → Suspension → Reopening
Bank Type
national
Bank ID
74570 national
Charter Number
7457
Start Date
August 21, 1905
Location
Louisville, Kentucky (38.254, -85.759)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
dff68ffd3eb5d9a5

Response Measures

Capital injected, Full suspension, Books examined

Description

Stockholders paid an 83 1/3% assessment (~$250,000) to permit resumption.

Events (5)
1. October 29, 1904 Chartered
Source
historical_nic
2. August 21, 1905 Run
Cause
Bank Specific Adverse Info
Cause Details
Capital badly impaired by losses, leading to steady withdrawals for several days
Newspaper Excerpt
Steady withdrawals have been made for several days
Source
newspapers
3. August 21, 1905 Suspension
Cause
Government Action
Cause Details
Closed by order of the Comptroller of the Currency because capital was badly impaired and withdrawals exhausted available funds
Newspaper Excerpt
The doors of the Western National bank ... were closed this morning by order of the comptroller of the currency. Thomas M. Thornton has been appointed receiver.
Source
newspapers
4. October 2, 1905 Reopening
Newspaper Excerpt
The Western National bank ... resumed business today. ... the stockholders ... taxed 83 per cent, to the amount of $250,000, which was paid to the receiver so that the bank could resume business.
Source
newspapers
5. August 26, 1909 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (20)
1. August 21, 1905 Albuquerque Evening Citizen Albuquerque, NM
Article from Albuquerque Evening Citizen, August 21, 1905

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Only About a Year Old. The statement issued by the acting comptroller of the currency says: "An examination of the bank by Bank Examiner Garrett showed its capital badly impaired by losses. Steady withdrawals have been made for several days, and the acting comptroller directed the bank to be closed in order to protect the interests of all depositors alike and prevent those having knowledge of condition from securing preference over those without this knowledge." Thomas M. Thornton has been appointed receiver. The Western National bank was chartered in 1904 to succeed the Western Bank of Louisville. W. B. Smith was president and J. T. Jefferson cashier.

2. August 21, 1905 Santa Fe New Mexican Santa Fe., Santa Fe, NM
Article from Santa Fe New Mexican, August 21, 1905

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FAILURES FREQUENT Western National Bank of Louisville, Ky., Has Been Ordered Closed APPOINTED RECEIVER Comptroller of the Currency Takes This Action in Order to Secure Protection for All the Depositors. Washington, D. C., Aug. 21.- The Western National Bank of Louisville, Kentucky, was closed this morning by order of the comptroller of the curreney. The statement issued by the acting comptroller of the currency says: "An examination of the bank by Bank Examiner Garret showed that its capital was badly impaired by losses. Steady withdrawals have been made for several days and the acting comptroller has directed the bank to be closed in order to protect the interests of all its depositors alike, and to prevent those having a knowledge of the conh ditions from securing preference OVa er those without this knowledge" h Thomas M. Thornton has been apin pointed receiver. The Western National Bank was chartered in 1904 to succeed the Western Bank of Louisville. W. B. Smith was the president and T. J. Jefferson the cashier. Failure Has Been Anticipated. Louisville, Ky., Aug. 21.-The failure of the Western National Bank, ordered closed by the federal authorities today, had been anticipated. On May 28th the bank showed a reserve of A only 14 per cent. President T. L. Jefis ferson said the failure was due simK ply to overloads and to shrinkage of ha deposits. bi

3. August 21, 1905 The Providence News Providence, RI
Article from The Providence News, August 21, 1905

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WESTERN NATIONAL BANK CLOSED BY COMPTROLLER Washington, Aug. 21.-The doors of the Western National bank of Louisville, Ky., were closed this morning by order of the comptroller of the currency. A statement issued by the acting comptroller of the currency says: "Aan examination of the bank by Bank Examiner Garrett showed that its capital was badly impaired by losses. Steady withdrawals have been made for several days and as there was not suft:cient funds on hands or immediately available to meet further demands likely to be made by depositors and other creditors, the acting comptroller directed the bank to be closed in order to protect the interests of all creditors alike, and prevent those having knowledge of the conditions securing preference over those without this knowledge. "Thomas A. Thornton has been appointed receiver. "The Western National bank is comparatively a new association, having been chartered Oct., 1904, as the Western Bank of Louisville. W. B. Smith was president and L. L. Jefferson cashier of the bank."

4. August 21, 1905 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, August 21, 1905

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BANK WAS CLOSED. Comptroller of the Currency Takes a Hand. Washington, Aug 21.-The doors of the Western National bank of Louisville, Ky, were closed this morning by order of the comptroller of the currency. A statement issued by the acting comptroller of the currency says: "An examination of the bank by Bank Examiner Garrett showed that its capital was badly impaired by losses, Steady withdrawals have been made for several days, and as there was not sufficient funds on hand or immediately available to meet further demands likely to be made by depositors and other creditors, the acting comptroller directed the bank to be closed in order to protect the interests of all creditors alike and prevent those having knowledge of the conditions securing preference over those without this knowledge. "Thomas M. Thornton has been appointed receiver. "The Western National bank is comparatively a new association, having been chartered October 29, 1904, to succeed the Western bank of Louisville. W. B. Smith was president/and T. L. Jefferson cashier of the bank." The following is a statement of the resources and liabilities of the bank as shown by the last report of condition, May 29, 1903: "Resources, loans and discounts, $1,299,324; overdrafts, $5,211; U. S. bonds secure circulation, $50,000; stocks, securities, etc. $10,095; banking house and other real estate, $26,044; due from banks and bankers, $234,781; cash and cash items, $74,932; redemption fund, $2,500; total, $1,724,889. Liabilities, capital stock, $300,000: undivided profits, $7,143; circulation, $50; due to banks and bankers, $250.413; deposits. $1,070,810; notes and bills re-discounted, etc, $36,522; total, $1,724,889.

5. August 22, 1905 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, August 22, 1905

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LOUISVILLE BANK IS COMPELLED TO CLOSE Comptroller of the Currency Finds Western National in Bad Shape. WASHINGTON, Aug. 21.-The doors of the Western National Bank of Louisville, Ky., were closed this morning by order of the Comptroller of the Currency. A statement issued by the acting Comptroller of the Currency says: "An examination of the bank by Bank Examiner Garrett showed that its capital was badly impaired by losses. Steady withdrawals have been made for several days, and as there was not sufficient funds on hand or immediately available to meet the demand likely to be made by the depositors and other creditors the acting Comptroller directed the bank to be closed in order to protect the interests of all depositors alike and prevent thos having knowledge of the conditions securing preference over those without this knowledge. "Thomas M. Thornton has been appointed receiver." The Western National Bank is comparatively a new institution, having been chartered in 1904 to succeed the Western Bank of Louisville. W. B. Smith was president and T. J. Jefferson cashier of the bank. LOUISVILLE, Ky., Aug. 21. -The failure of the Western National Bank of this city, ordered closed by the Federal authorities to-day, had been anticipated. On May 29 the bank showed a reserve of only 14 per cent, and its business had fallen off steadily since then. President T. L. Jefferson of the bank in a statement says the failure is due simply to overloads and shrinkage in deposits.

6. August 22, 1905 Americus Times-Recorder Americus, GA
Article from Americus Times-Recorder, August 22, 1905

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LOUISVILLE BANK FAILS. Western National Closed by Order of Comptroller of Currency. Washington, August 21.-The doors of the Western National Bank, Louis ville, Ky., were closed this morning by order of the comptroller of the currency. A statement issued by the acting comptroller of the currency says: "An examination of the bank by Bank Examiner Garrett showed tha its capital was badly impaired by losses. Steady withdrawals have been made for several days and there was not sufficient funds on hand or avail able to meet further runs likely to be made by depositors and other creditors, the acting comptroller directed the bank to be closed in order to protect the interests of all creditors alike and prevent those having knowledge of conditions securing preference over those without the knowledge. "Thomas W. Thornton has been ap. pointed receiver." The Western National bank is comparatively a new association, having been chartered Oct. 29, 1904, to succeed the Western Bank of Louisiville W. B. Smith was president, and T. J Jefferson, cashier. The deposits in the bank amounted to $1,070,810.

7. August 22, 1905 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, August 22, 1905

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COMPTROLLER CLOSES BANK AT LOUISVILLE Receiver Is Appointed for the Western National, Whose Capital Proves to Be Badly Impaired By Associated Press. WASHINGTON, Aug. 21.-The doors of the Western National bank of Louisville, Ky., closed this morning by order of the comptroller of the currency. A statement issued by the acting comptroller says: "An examination of the bank by Bank Examiner Garrett showed that its capital was badly impaired by losses. Steady withdrawals have been made for several days, and as there were not sufficient funds on hand or immediately available to meet the demand likely to be made by the depositors and other creditors the acting comptroller directed the bank to be closed in order to protect the interests of all depositors alike and prevent those having knowledge of the conditions from securing preference over those without this knowledge. Thomas M. Thornton has been appointed receiver." The Western National bank is comparatively a new institution, having been chartered in 1904 to succeed the First National bank of Louisville. W. B. Smith was president and T. J. Jefferson cashier of the bank. On May 29 it showed a reserve of ony 14 per cent and its business has fallen off steadily since then. Cashier T. J. Jefferson says the failure is due simply to overloads and shrinkage in deposits.

8. August 22, 1905 The Paducah Sun Paducah, KY
Article from The Paducah Sun, August 22, 1905

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A Washington View. Washington, D. C., Aug. 22.-The Western National bank of Louisville, which went to the wall today by order of acting Controller T. P. Kane, is believed by the officials of the office of controller of the currency to be in a bad condition. Early last week the controller's office received word that the bank was not in good shape. Bank Examiner R. D. Garrett was ordered to Louisville and he spent Friday and Saturday making an examination. Upon receiving a tèlegram from him today, Mr. Kane directed that the bank be closed. Mr. Kane says it is yet an open question whether the bank will be wound up. It may be, he says, that the losses will be made good, and that the bank will be permitted to continue in business. Thos. Thornton, who has been appointed receiver, is one of the most competent experts of the controller's office in this line of work. He has acted as receiver for the Lemars National bank, of Lemars, Ia.; the Union National bank, of Minneapolis, and recently for the Groesbeck National bank, of Groesbeck, Tex. The Western National bank was changed from a state to a national bank October 29, 1904. The controller's office will try to ascertain if any misrepresentations were made in order to obtain the national charter. The last statement of the bank's resources and liabilities on May 29 shows undivided profits of only $7,143. It is pointed out that the bank on its own statement has but little funds to make good losses from bad paper.

9. August 22, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, August 22, 1905

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KENTUCKY BANK BROKE Western National of Louisville Ordered Closed by the Comptroller of Currency. Washington. Aug. 21.-The doors of the Western National bank of Louisville, Ky., were closed this morning byðorder of the comptroller of the currency. A statement issued by the acting comptroller of the currency. says: "An examination of the bank by Bank Examiner Garrett showed that its capital was badly impaired by the losses. Steady withdrawals have been made for several days and as there was not sufficient funds on hand or immediately available to meet the demand likely to be made by the depositors and other creditors. the acting comptroller directed the bank to be closed in order to protect the interests of all depositors alike and prevent those having knowledge of the conditions securing preference over those without this knowledge. "Thomas M. Thornton has been appointed receiver." The Western National bank is comparatively a new institution. having been chartered in 1904 to succeed the Western bank of Louisville. W. B. Smith was president and T. J. Jefferson cashier of the bank. Louisville, Ky., Aug. 21.-The failure of the Western National bank of this city, ordered closed by the federal authorities today, had been anticipated. On May 29 the bank showed a reserve of only 14 per cent and its business has fallen off steadily since then. President T. L. Jefferson of the bank, in a statement, says the failure is due simply to over loans and shrinkage of deposits.

10. August 23, 1905 Gainesville Daily Sun Gainesville, FL
Article from Gainesville Daily Sun, August 23, 1905

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LOUISVILLE BANK FAILS. Western National Closed by Order of Comptroller of Currency. Washington ,August 22.-The doors of the Western National Bank, Louisville, Ky., were closed this morning by order of the comptroller of the currency. A statement issued by the acting comptroller of the currency says: "An examination of the bank by Bank Examiner Garrett showed that its capital was badly impaired by losses. Steady withdrawals have been made for several days and there was not sufficient funds on hand or available to meet further runs likely to be made by depositors and other creditors. the acting comptroller directed the bank to be closed in order to protect the interests of all creditors alike and prevent those having knowledge of conditions securing preference over those without the knowledge. "Thomas W. Thornton has been appointed receiver." The Western National bank is comparatively a new association, having been chartered Oct. 29, 1904. to succeed the Western Bank of Louisiville. W. B. Smith was president, and T. J Jefferson. cashier. The deposits in the bank amounted to $1,070,810.

11. August 23, 1905 Grant County Herald Lancaster, WI
Article from Grant County Herald, August 23, 1905

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Louisville Bank Closed. Louisville, Aug. 22.-The Western National bank of this city has been closed by the federal authorities. The suspension had been expected, for May 29 the bank showed a reserve of only 14 per cent and its business has fallen off steadily since then-in fact, the bank's stock has fallen from 107 to 35 within the last few days.

12. August 24, 1905 The Monticellonian Monticello, AR
Article from The Monticellonian, August 24, 1905

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Bank Closed. Louisville, August 22.-The Western National bank of this city has been ordered closed by the federal authorities. me bank's suspension has been anticipated. On May 29 the bank showed a reserve of only 14 per cent and its business has fallen off steadily since then. In fact. the bank's stock has within the last few days fallen from 107 to 35. The president of the bank, in a statement, said the bank's failure is due simply to over-loans and shrink age in deposits.

13. August 26, 1905 Chicago Eagle Chicago, IL
Article from Chicago Eagle, August 26, 1905

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Receiver for Louisville Bank. The Western National Bank of Louisville has been closed by order of the Comptroller of the Currency at Washington. The failure was not a surprise, as on May 29 the bank's statement showed a reserve fund of only 14 per cent, and the business of the institution had fallen off steadily since then.

14. September 8, 1905 The Paducah Sun Paducah, KY
Article from The Paducah Sun, September 8, 1905

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AN ASSESSMENT Must Be Paid Before the Western Bank Can Reopen. Louisville, Ky., Sept. 8.-The directors of the Western National bank have been notified by the receiver, Thomas W. Thornton, that the stockholders of the bank will be required to pay an assessment to meet the demands of the creditors of the bank. What the amount of the assessment will be has not as yet been

15. September 16, 1905 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, September 16, 1905

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TOBACCO MEN'S TROUBLES. Courts Take Hand in Their Finances at Louisville. Louisville, Ky., Sept. 15.-John W. Brown, a member of the tobacco rehandling firm of Martin, Martin & Co., today filed a voluntary petition in bankruptcy in the United States Court here. He asks that he be discharged from the court of his Individual obligations and also of his debts as a member of the firm of H. N. Martin & Co. The total liabilities are given at $183,694 and the assets at $215,593, including life Insurance policiies for $12,000. The usual exemptions are asked. The chief creditor, according to the schedule filed with the petition, is the Western National Bank, which was recently closed by order of the Controller of the Treasury, and which held stock in H. N. Martin & Co., valued at $7,800, and had loaned money to E. H. Hall of this city, D. Reed of Lexington, H. N. Martin & Co., and A. T. Herr of San Francisco on notes indorsed by the petitioner, bringing the total to $39,515. The Southern National Bank is named as a creditor for $22,350. The Citizens National Bank is a creditor to the extent of $28,000. This Includes $12,500 stock in H.N. Martin & Co. John K. Gilliat & Co. of London, Eng., is a creditor for $11,000 advanced on tobacco. The National Bank of Kentucky is a creditor for $9,600, and the Fidelity Trust Company, also of Louisville, Is named for $5,000. Smaller sums are due creditors in Nashville, Tenn., and in several towns in Kentucky. The firm of Martin, Martin & Co. is composed of John W. Brown, J. R. Martin and M. T. Martin. It is an entirely different concern from H. N. Martin & Co., for whom W. S. Loogan today asked the appointment of a receiver. I W. S. Logan filed a petition today I asking the State Court to appoint a receiver for H. N. Martin & Co., tobacco manufacturers, alleging that the defendant is hopelessly insolvent. The plaintiff says the assets of the defend1 ant amount to $105,500, which includes I $65,000 worth of tobacco in hogsheads and $32,000 worth of accounts. It is charged furher that the defendant is in debt to the Western National Bank, National Bank of Kentucky, First National Bank, German Insurance Bank $ and Third National Bank to the extent I of $87,000; to Hugh Martin for $12,000, 1 and other creditors about $22,000, maktotal says deIng The a plaintiff alleged liability that all of of $131,000. the fendant's tobacco accounts have been to this of was to mortgaged pledging accounts the banks and in that fraud a other creditors for the purpose of preferring the banks. The basis of the plaintiff's suit is a $2,000 loan. The creditors are named as defendants.

16. September 18, 1905 Evening Star Washington, DC
Article from Evening Star, September 18, 1905

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WILL REQUIRE ASSESSMENT. Proposed Resumption of Business by a Louisville Bank. Mr. T. L. Jefferson, lately president of the Western National Bank of Louisville, Ky., with Mr. John Bryce Baskin, his attorney, and Mr. Thomas M. Thornton, receiver of the bank, today presented to the controller of the currency their plan for the bank's rehabilitation. After careful investigation the controller found that an assessment of 83 1-3, per cent on the shareholders would completely restore the capital of the bank, and stated that when the sum of $250 is paid to the receiver for that purpose the bank will be permitted to resume business. It is confidently expected that the money will be paid and the bank reopened in its new banking house, corner of Market and 3d streets, about the 1st of October.

17. September 19, 1905 The Paducah Sun Paducah, KY
Article from The Paducah Sun, September 19, 1905

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WESTERN NATIONAL Will Probably Open Again Early in October. Washington, Sept. 19.-At the controller's office It was announced that the Western National bank, of Louisville, probably will resume business early in October, all embarrassing obstacles to resumption having been cleared away. The following formal statement was given out for publication: "Mr. T. L. Jefferson, late president of the Western National bank, of Louisville, with Mr. John B. Baskin, his attorney, and Mr. Thomas M. Thornton, receiver of the Western National bank, of Louisville, today presented to the controller of the currency their plan for the rehabilitation of that bank. "After careful Investigation, the controller found that an assessment of eighty-three and one-third per cent. on ithe share-holders would completely restore the capital of the bank and stated that when the sum of $250,000 is paid to the receiver for a purpose the bank will be permitted to resume business. "It is confidently expected that the money will be paid and the bank reopened in its new banking house, corner of Market and Third streets, about the first of October."

18. October 2, 1905 The Guthrie Daily Leader Guthrie, OK
Article from The Guthrie Daily Leader, October 2, 1905

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WESTERN NATIONAL BANK RESUMES. (By Associated Press.) Louisville, Ky, Oct. 2-The West. erg Nat onal bank of this city, which has been closed for some time resumed business today Comptroller of the currency department at Washington consented to have the stockholders of the institution taxed 83 per cent, to the amount of $250,000, which was paid to the receiver so that the bank could resume business.

19. October 4, 1905 The Paducah Sun Paducah, KY
Article from The Paducah Sun, October 4, 1905

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Western Bank Reopens Oct. 16. Louisville, Ky., Oct. 4.-October 16 has been set as the time for the opening of the Western National bank in the new quarters at Third and Market streets. The $250,000 necessary to resumption has been paid over, and Receiver Thornton is now arranging the affairs of the bank so that he can turn them over to the stockholders on or before that date. When the bank begins business t will have about $500,000 in cash in its coffers.

20. October 20, 1905 Wood County Reporter Wisconsin Rapids, WI
Article from Wood County Reporter, October 20, 1905

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The Indemnity Savings and Loan company is the concern against which Attorney General Ellis began quo warranto proceedings in the circuit court on Saturday last with a view of preventing the company from continuing business in this state. The attorney general charged that the company had violated the state banking laws. H. R. Sanborn, who is named as.assignee, is the president of the company. Officers of the institution declare that it is absolutely solvent and that depositors can readily be paid in full. They also state that the attorney general's action was without due cause. The bank had, when it's last statement was issued, in June of this year, assets and liabilities amounting to $1,392,681. The deposits were then $688,661. The bank will resist the attempt to take away its charter and today filed a motion in circuit court to quash the summons of Attorney General Ellis. LOUISVILLE, Ky., Oct. 16.-The Western National bank, which was closed several weeks ago, on orders from the comptroller's office, reopened for business today under favorable auspices. NEW ORLEANS, La., Oct. 16.-The run on the Germania Savings bank has entirely ceased.