Western National Bank (Louisville, KY)

View Charter #7457 on SPMC View balance sheet

Episode Information

Episode Type
Run → Suspension → Reopening
Start Date
August 21, 1905
Location
Louisville, Kentucky (38.254, -85.759)
Bank Type
national
Charter Number
7457
Alt. names
Continental National Bank

Metadata

Episode ID
Bank ID
City ID
210509453
Model
gpt-5-mini
Short Digest

Response Measures

Capital injected, Full suspension, Books examined

Notes

Closure ordered by the Comptroller; bank later reopened after assessment and payment by shareholders.

Events (5)
1. October 29, 1904 Chartered
Source
historical_nic
2. August 21, 1905 Run
Cause
Bank Specific Adverse Info
Cause Details
Steady withdrawals following impaired capital and large over-loans (reserve fell to ~14%); rumors/difficulties over a large $60,000 loan noted.
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 after examiner found capital badly impaired and to protect depositors; receiver appointed.
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 ... which has been closed for some time resumed business today ... the stockholders ... paid $250,000 so that the bank could resume business.
Source
newspapers
5. August 26, 1909 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (18)
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 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."

3. August 21, 1905 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, August 21, 1905

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BANK IS CLOSED. Government Steps in to Protect the Depositors. 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. As there was not sufficient funds on hand or immediately available to meet further demands 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 conditions from 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 in 1904 as the Western Bank of Louisville. W. B. Smith was president, and T. J. Jefferson cashier.

4. August 22, 1905 The Chickasha Daily Express Chickasha, OK
Article from The Chickasha Daily Express, August 22, 1905

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LOUISVILLE BANK FAILS Capital Badly Impaired dy Losses. Receiver Appointed Washington, Aug, 21.-The doors of the Western National bank of Louisv lle' Ky., were closed this morning by order of the comptroller of the currency. A statment issued by the acting comptroller of the currency says: "An examination of the bank by Examiner Garrett showed that its captial was badly impaired by losses. Steady withdrawals have been made for several days and as there was not sufficient funds on hand for immediate available to meet furthur demands 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 to prevent those having knowledge of conditions securing preferance over those without this knowledge."

5. 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.

6. August 22, 1905 Arizona Republican Phoenix, AZ
Article from Arizona Republican, August 22, 1905

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Washington. Aug. 21.-The doors of the Western National Bank of Louisville, Ky., were closed this morning by the order of the controller of currency and a receiver was appointed. The bank is a comparatively new one. It was chartered in 1904.

7. 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.

8. 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.

9. 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.

10. August 24, 1905 The Paducah Sun Paducah, KY
Article from The Paducah Sun, August 24, 1905

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# THE WESTERN BANK # WAS ALMOST SAVED By Noon That Day it Would Have Had $400,000. Understood a $60,000 Loan Caused the Resignation of W. B. Smith, Former President. # BANK EXPECTS TO RE-OPEN. Two changes were to have taken place in the directorate of the West-ern National Bank on the day it was closed by Examiner Garrett, and preparations had been completed to secure $400,000 to be used in raising the reserve funds and insuring the depositors, Says yesterday's Courier-Journal. A meeting of the board of directors to make these changes was to have been held Monday morning and at that time E. C. Hegan and A. C. Montenegro were to have taken their seats in the board of directors. Mr. Montenegro and Mr. Hegan had agreed to furnish $300,000 with which to bolster up the bank's condition, and the remaining $100,000 was to have been secured from three banks. It is said that W. B. Smith, the former president, who is still a member of the board of directors, had agreed to furnish $25,000 of this amount. Closing of the bank by Examiner Garrett came as a severe blow to the officers and board of directors who believed by yesterday that they would have been able to reach the required 25 per cent. reserve fund. Among the directors who were to retire in order that Mr. Montenegro and Mr. Hegan might be admitted was Dr. J. W. Fowler, secretary of the board. The other director who had agreed to retire is not known. Under the plans prepared by Mr. Jefferson, Mr. Hegan, Mr. Montenegro and other members of the board of directors, the bank was to have been in excellent condition not later than yesterday morning. Three Louisville banks had agreed to furnish $25,000 at the same time. Mr. Montenegro and Mr. Hegan were to secure the remaining $300,000 not later than yesterday morning. This sum would complete the $400,000 necessary to place the bank in a position to operate without difficulty or question. Mr. Garrett's action was additionally a surprise from the fact that he was present at the meeting of the board of directors and heard the plans for rehabilitation discussed. The cause of his sudden decision to close the bank before these plans could be carried into effect is unknown. Rumors have gained ground since the closing of the bank that differences over a loan of $60,000 had led to the resignation of the former president, W. B. Smith. The sum in question was a loan of $60,000 which had been made in piece-meal, but virtually all to one firm—a firm of tobacco manufacturers. The members of the board of directors held no sum should be loaned to any one firm or person in excess of $20,000, and when the loan in question reached $60,000, the board objected. Later Mr. Smith is quoted as saying that his methods of doing business did not seem satisfactory to many of the stockholders in the bank. Rumors of the difficulty over this loan had escaped, and are said to have been the primary cause of the change in presidents. Since this loan was made, it is said that it has proved absolutely valid. Collateral furnished by the debtors is said to be perfect, and although an effort has not been made to collect all the paper, it is understood that it can be taken up as soon as it falls due. So far it was stated by a member of the board of directors, the bank has been encumbered with but one piece of absolutely worthless paper. This was a note for $4,000 given by an iron and junk merchant named O'Brien, who later became a bankrupt. It has been impossible to realize anything on this note. Under the regulations governing a closed bank, the control of the institution has now passed from the board of directors. Examiner Garrett is in absolute charge until Mr. Thornton, the receiver, arrives. At that time Mr. Garrett will surrender his power to the receiver, who will attempt to settle the business of the bank. So far as an organization is concerned, the board of directors of the Western National Bank does not exist, but the same body, augmented by Mr. Montenegro, Mr. Hegan and others who are interested in the institution, will hold a meeting in the next three days to devise ways and means of renewal. Not one of the board of directors can be found who is not confident that the bank will again open its doors in its new building.

11. 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.

12. 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

13. 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.

14. 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.

15. 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."

16. 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.

17. 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.

18. 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.