Investigations indicate substituted/devalued collateral and alleged kiting precipitated withdrawals and failure.
Events (3)
1.November 5, 1930Run
Cause
Bank Specific Adverse Info
Cause Details
Large withdrawals (including state deposits) triggered by revelations of substituted/devalued collateral, alleged kiting and insolvency of Caldwell & Co.
Newspaper Excerpt
Robertson said the closing was directly due to 'runs' on it and the sudden withdrawal by the state treasurer of about $110,000 of state funds.
Source
newspapers
same day
2.November 5, 1930Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension followed heavy withdrawals and discovery of inadequate/devalued collateral and connections to Caldwell & Co.'s troubles.
Newspaper Excerpt
The bank suspended November 5 and went into receivership November 7.
Source
newspapers
+2 days
3.November 7, 1930Receivership
Newspaper Excerpt
The Bank of Tennessee was placed in the hands of State Supt. of Banks D. D. Robertson ... bank went into receivership November 7th.
Source
newspapers
Newspaper Articles (20)
1.November 8, 1930St. Cloud TimesSaint Cloud, MN
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Bank of Tennessee Goes Into Hands of Receiver
Nashville, Tenn., Nov. 8. (UP)-The Bank of Tennessee was placed in the hands of State Supt. of Banks D. D. Robertson, on his request that a receivership be granted. The bank has resources of $15,867.071 and deposits of more than $12,000,000.
Following the appointment of Rob. ertson as receiver, the committee of Nashville bankers named to work out affeirs of Caldwell & Co., the southeast's largest investment bankers, is sued a statement pointing out the Bank of Tennessee is "among other assets" of Caldwell & Co.
The action in turning over the bank to receiver, according to the statement was considered advisable to prevent hasty disposition of the bank's securities.
Richmond, Va., Nov. 8. (UP)-James P. Jones, former treasurer of the Vir ginia Anti-Saloon league was found guilty of embeszzling funds of the Virginia Methodist orphanage, while treasurer of the institution, by a jury today. The verdict carries with an automatic sentence of five years im prisonment. Notice of appeal was filled.
STOCK MARKET SINKS TO LOW FOR TWO YEARS
United States Steel Goes to 138, Price In Spring of 1928.
By United Press NEW YORK With United States Steel selling at 138, where it was in the spring of 1928, the entire Stock Market sank to new low levels for and few issues in the railroad category fell to the lowest prices in six years. Wheat at Chicago crashed to new lows for the while cotton at New York fell more than bale. Losses in stocks ranged to eight points, Atchison suffering heaviest. The latter was at 182, new low since 1927. declined % to 20% new low since 1924. Lehigh Valley made new low since 1924 at 41% off 1/8 : Missouri Pacific low since 1926 at off Chesapeake & Ohio off new low for the present shares; Alleghany Corporation 9½, off and new low for the shares. low since 1926 at off 3%
Follows Disclosure of State Highway Department's $2,068,612 Deposit. By BENTON STONG
NASHVILLE A Republican chorus of "we told you 80's" has echoed in Nashville since disclosure that State Highway Department had $2,968,612 in Bank of Tennessee, a subsidiary of Caldwell & Co., when It closed Friday. Republicans tried for two weeks by direct requests upon Highway Commissioner Robert H. Baker to get list of banks in which highway funds were deposited. Failing, they charged Baker with concealing public records in the waning days of the campaign and charged that he would not give them the information for fear of disclosing favoritism to Caldwell banks.
Attorney-General L. D. Smith is making thoro of all angles of the state deposits. which reached total of more than $3,350,000. including accounts of the Department and John Nolan. of several counties were here Monday learn the status of county deposits, and whether cessation of construction jobs will be necessary. Among those known to be affected are Knox and Gibson Counties in Tennessee, Owensboro and Christian County in Kentucky.
3.November 12, 1930Johnson City Staff-NewsJohnson City, TN
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Article Text
RECEIVERS FILE REPORT ON BANK OF TENNESSEE
NASHVILLE Tenn., Nov. (A)-An inventory of the Bank of Tennessee, lists resources $13,969,500.50 and abilities at the same of November with the cash on hand given : $32.55. The inventory was filed by the receiver, D. state suof banks. In report on the inventory Robertson said: "This bank is not commercial bank of general deposit. It has been examined required by law twice each year. The present superintendent of banks took office April 21, 1930. The last examination was made on September 25. 1930, and at that time as condition precedent to further operation the department required the deposit of then valued at approximately in order to cover depreciation in securities held assets by the bank. that time the bank more than cash and the cash position met the requirements the law The deposit of this manded security, together with the cash hand and other assets of the bank, rendered it then solvent, the judgment of the The value the additional securi ties demanded and pledged exceeded the depreciation in values of the assets more than Resources were listed as follows Loans discounts. overdrafts, stocks bonds other estate. on (Continued On Ten)
INVENTORY IS MADE OF BANK OF TENNESSEE
Robertson Lists Liabilities at and $32.55 Cash on Hand.
BOOK VALUE
Knox County and East Tennessee Depositors In Nashville Are Named.
By BENTON STONG of the Bank of Tennessee filed in Davidson Chancery Court today shows the Bank of Tennessee, closed last week, had liabilities of with $32.55 cash on hand and stocks and bonds "book value" of $12,655,The State of Tennessee was among the larger depositors, with State Highway partment funds, of the state's general fund and Department of Finance and Taxation (motor vehicle) count, according to the inventory. The statement resources and liabilities of November, pieled State Banking Superintendent Robertson, shows resources, loans and discounts, $734,574.17; overdrafts, stocks and bonds, other real estate, cash hand, $32.55; cash due from banks, tal, Liabilities, capital stock, surplus, undivided profits,
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Bankers Here Say That Merger Should Restore Confidence
Nashville Chattanooga bankers, statements The Times American the Fourth First and night, declared had clarified the entire financial banks, situation Nashville, in Tennessee and should restore confidence shaken by the difficulties Caldwell Caldwell, the 76-year-old president of the Fourth and south, First, for Nashville's largest and largest years Caldwell, head of Caldwell Co. Announcement the father Rogers consolidation included the news that veteran president of the Fourth First would retire and that president ,the institution. American Paul direct the activities the merged bank, The American Davis, has long been considered one of the soundest financial houses the inventory the Bank of Tennessee, Caldwellcontrolled bank which in the hands the banking department, reveals the interlocking of the Rogers Caldwell interests those the which his father president. Absorption of the elder by the with combined more regarded by disinterested experts stabilizing the financial situation in Nashville all other parts Chattanooga has not directly felt the effect of the Caldwell failures. Caldwell Co. owns no stock any local bank.
6.November 14, 1930St. Louis Post-DispatchSt. Louis, MO
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Article Text
FOR PERJURY mately but due to heavy withdrawals found impossible to weather the raging financial bank has capital of with surplus and undivided profits of
Account of Missouri State Life Co. Opened Years Ago. The account the Missouri State Life Insurance with the Bank of Tennessee opened about four and half ago, Hillsman Taylor, president of Missouri State, said today. It an active said, subject drawals from time to time, and he estimated that the time the bank closed company's balance on deposit approximately $850.000. The inventory as reported by the bank's receiver places Taylor said the collateral held by the curity for deposit acquired within the last year and that prior to that the deposit was secured by collateral, there being no legal requirement for security Taylor said that the time the collateral taken was considample security and he still believed its intrinsic value would protect the insurance company full, despite the shrinkage the the under present The the as reported by the bank's shares of stock Banco Kentucky and bonds follows: Alabama Cadet Hosiery Frank Silk Rockhill Printing Finishing $100,000; Warrior Water The Banco Kentucky stock listed on the Chicago but has not been active although quoted from to share At the higher figure the value the shares would be $315, The face value of the bonds Only one of the bond items found standard lists used by bond This Mills. bonds part of issue first mortgage bonds offered in 1928 by Caldwell and sold These bonds listed the New Orleans curb been offered recently The directorate Alabama Mills company includes both Rogers president the Caldwell and President of Missouri State Life. The opening the company's account the Bank of prior acquisition of control the company by Caldwell said. by ownership of more than 30 of the stock, ended last May when Caldwell sold its stock. block of the stock. of the total. was bought by the Life Insurance Co. of Ky., also filiated the Caldwell interests. Taylor said he did not know how this stock was held The company has about that easy for single large block to acquire Total capital of the Missouri State Life Insurance Co. represented shares of $10 par value, according to of State Insurance Department ferson City, also said the company has surplus of said that in the course of the recent state the company, completed last he sent examiners to ville to check security sales made to Missouri State by Caldwell Co., particularly to the cost Caldwell and the price to the insurance and found that these transactions reasonable. Thompson the State Insurance Department has no control bank deposits made by insurcompanies and cannot require them to obtain collateral such but does have trol to deposited with the State and over securities which capital and surplus are invested.
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)
8.November 15, 1930The SunJonesboro, AR
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DISAPPEARANCE OF HUGE SUM INVESTIGATED
By Associated Press. NASHVILLE, Tenn., Nov. 15. Attorney General L. L. Smith of Tennessee announced today examination of the affairs of the Bank of Tennessee is being made "to determine method of disappearance" of $3,840,000 worth of securities deposited with the state superintendent of banks September 25th, "but not found among its assets" when the bank went into receivership November 7th. D. D. Robertson, state Banking Superintendent, said several days ago he required deposit of that amount of securities to safeguard state funds. The bank was private depository for Caldwell and Company Investment House, also in receivership. Officials of the Hermitage National Bank and CODE merce Union Bank announced a merger to stop run on the Hermitage bank.
By Associated Press. LOUISVILLE, Ky., Nov. 15.-The Inter-Southern Life Insurance Cempany requested quick action today in suit filed yesterday by nine stockholders who alleged Caldwell and Company, Nashville investment house, had been allowed to withdraw ten millions in securities and committed other irregularities with insurance company funds and stock. The company called the suit a "mass of lies" petitioned for dismissal of the suit.
BANKER ENDS LIFE, USING SHOESTRING (Continued From First Page) proximately $1,000,000. and he expressed the opinion that with CCOnomical administration of the in stitution's affairs the depositors would be paid in full. The state superintendent of banks was named receiver. One of Dozen Banks The Liberty Bank & Trust company was one of about a dozen banks in Tennessee that have closed this month. It was the second to fail in Nashville, its closing following by a week that of the Bank of Tennessee. it subsidiary of the investment banking house of Caldwell and company. now in receivership. The Peoples Bank & Trust company. a Negro institution in Nashville, closed a week ago.
10.December 5, 1930Ledger-StarNorfolk, VA
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BY TENNESSEE
State Moves To Recover Money Involved In Bank Crash
Nashville, Tenn., Dec. 5-(P)Five men named as personal sureties on bonds securing state deposits in the closed Bank of Tennesare made defendants suit filed the state Tennessee, which seeks for $3,060,000 as the amount of highway funds in the band. The was filed in chancery court last night against Rogers Caldand four Caldwell of which the Bank of subsidiary. Both the company and its subsidiary Caldwell, Frank D. Marr. D. Carter, H. and Hetzenberg said by Attorney General Smith have signed surety bonds totalmore than Another bill was directed by the state his father. James Caldwell. the Nash. ville Trust Company, seeking sale of "Brentwood Hall,"- where Rogers Caldwell The state the ground on which "Brentwood Hall" stands recently by James E. Caldwell to the trust company, to be held for the benefit Rogers Caldwell and his heirs. The suit alleged the conveyance made for purpose evading creditors of Rogers Caldwell, If the court should not set aside the trust instrument, then the state permission sell house it. erected by Rogers Caldwell, the states, cost more than $350,000. In the further event the court Rogers Caldwell with the to the house, he petitional decree against James Caldwell for an amount equal to its cost.
Larkin E. Crouch To Manage Affairs Southern Pub lishers, Inc.
Nashville, Tenn. Dec. 24. (AP) two decrees handed down today Chancellor James B. Newman placed the Southern Publishers, Inc., in receivership, but denied an application for receiver for the Tennessee Publishing Co., pub lishers of the Nashville Tennessean and Evening Tennessean. Southern Publishers, Inc. is holding company for stock of the Memphis Appeal, Inc., and Knoxville Journal, Inc. whose physical properties are in receiver ships at Memphis and Knoxville One company publishes the Memphis Appeal, while the other operates The Knoxville Journal, morning newspaper. Col. Lea At Helm the Southern Publishers, Inc., as well as of the Memphis Commerclai Appeal, Inc., and the Knoxville Journal, Inc., and the Tennessee Publishing Rogers Caldwell is associated with him in except nessee Publishing Co. The Chancellor anmed Larkin E. Crouch. Nashville attorney as receiver for Southern Publishers, and instruced the receiver immediate of stock now held by the Nashville Trust trustee to secure bond issue of South ern Publishers, Inc., purchased by the Minnesota and Ontario Paper of Minneapolis. The Minnesota and Ontario PaNashville Trust and D. Robertson, receiver for the Bank of Tennessee, made the application for the receiver. The bank holds 500 shares of Southern Pubishers, Inc., stock pledged by Caldwell and Co., to teh bank before its closing.
12.January 28, 1931Johnson City ChronicleJohnson City, TN
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Assistant Attorney General, Testifies Before Senate Tipton,
Claims Securities Used as Collateral in Banks Only Worth 15 to 20 Cents on Dollar
Tenn., Jan. (AP) -Testimony substitutions made for securities deposited as additional collatteral upon demand of the state banking and reduction its cash hand all probability" rendered the bank of Teninsolvent while still accepting state deposits was heard today the legislative investigatcommittee. Nat Tipton, an sistant attorney general, told committee some of the for those valued which were originally deposited, district bonds worth from 10 15 cents the dollar. of the he had been bank what the in the street calls "cats and securities, has stated banks, were deposited the bank following examinalast cover preciation held by bank. When the bank closed November had state excess hand at the time of closing The first Mr. October shares intersouthern Other withdrawals continued, stated, until all the original curities had been withdrawn except shares Rogers Caldwell New York Corporation, and shares Nashville properties company. these securities were withdrawn by officials authorand others of value subgstituted, what criminal offense that asked ChairWalter Faulkner. think would fraudulent breach of trust, Tipton replied. assistant attorney general the person making not stated the ords. agents Caldwell been testified. He letter dated September from Caldwell Co., pledging the Tennessee, and said reply question pledge He tified later date cial bank that custom' had the privilege substituting equal Caldwell its subsidiary, bank Tennessee, were locking, the witness continued. understood Caldwell, owned stock the bank Tencapital and that bank dents also officers of Caldwell Tipton referred to repurch. agreement, whereby the bank Tennessee would invest surplus in securities that Caldwell funds agreed take back at the original price. Speaker Scott hugh of the Senate, member asked such agreement not "agreement between themselves, Tipton replied that ment between your right and your left
SECURITY SHIFT BARED AT QUIZ
Tipton Blames Withdrawals For Bank Crash,
SUBSTITUTIONS BARED
Transactions, With State Explained.
NASHVILLE, Jan. 27 timony made securities deposited additional collateral upon the state banking department of its cash in hand all probability' rendered the Bank of Tennessee today the Nat Tipton, an assistant attertee that some of the securities sub stituted for those valued which were deposit drainage worth from cents on the dollar. Some of the others, he had bank what the man in the street "cats and dogs. LISTS The of been stated by ordered deposited by the Bank Tennessee following examinalast September to cover securities held assets the bank. When the bank closed November had state deposits excess hand at the time of closing $32.55. The first withdrawal, Mr. Tipton said, was made when shares InterInsurance stock replaced by various other curities. Other withdrawals continued, he stated, until all of the original securities had been with1,000 shares of RogCaldwell York corporation, and 10,000 shares Nashville REVEAL TRANSACTIONS these securities withdrawn officials without author other of less ity value fense would that ed Faulkner. think would be breach of trust, Mr. Tipton replied. The attorney general said the person making the with.
(Continued On Page 4, Col. 4)
14.February 6, 1931The Atlanta JournalAtlanta, GA
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FAILURE TO PROBE TENNESSEE'S BANK CLOSINGS STUDIED
Kiting Charged to Col. Lea by Superintendent at Inquiry
Feb. NASHVILLE committhe inquired legislative Friday why criminal trosecution had not from the and the loss state banks estimated at several millions Robertson. superintendent of said he had reported the rehis investigations Nashville, the disgeneral attorney state attorney general's had the been fully He other duty the superintendexplained Robertson had testified at length regarding substitutions that he said by Caldwell & Co. rithout approval made of the Banking Devalued at for required the Bank of Tennessee to put condition for continuing busiits September 25 examina Bank of Tennessee was subsidiary The of the investment banking juse. about the substitutions, WalAsking Haynes inquired if Caldwell had any more right to go into the Bank of Tennessee and substitute securities than any other citizen had right to in there in the dead of the night and take them
"That's putting it pretty strong," the witness mplied No Right to Substitute Then he was asked if the letter which Caldwell Co. pledged the securities the bank permitted it, Robertson replied that 'so far the pledge was concerned they had Mr. right Robertson told the legislative irrestigating committee Friday that Bank of Tennessee paid only 3 of cent on state deposits while payon other public funds interest per from The bank, to subsidiary of Caldwell Company, closed on November rith approximately 400,000 of state said records showed that the of Tennessee borrowed $525,000 im the old Fourth and First Namal Bank at per cent interest. carrying deposit of $400 000 at same institution which drew only cent interest. also testified that the bank all highly speculative securities there by Caldwell & Company Asked Robert McReynolds comnitee attorney. if the stocks were ones, he Well, they were not stocks I'd buy. Kiting Is Charged The testified that deposits of the bank climbed rapidly periods following the sale of state Just before the committee recessed all day hearing Thursday Robertasked if he knew of any eviinte "kiting' about the time the failed last "Yes, there had been a kite trough the bank for several months, aid. To the question "Who seemed have been the participants in that be!" the superintendent replied Colonel Lea and his son. Colonel Lea is a Nashville newspaper Previously Robertson had testified at Colonel Lea was "instrumental appointment" as superintendent Inquiry was made of Robertson about Chancery Court suit he had against Colonel Lea and others etcing judgment for approximately 160,000 alleged to be due the bank him them. The suit averred that Colonel Lea and R. E. Donnell, late resident of the Liberty Bank, had iminated" its affairs and used the promote their own gains Donnell committed suicide shortly bank failed. "Dummy corwations were organized to further is plan, Robertson alleged. Runs On Bank He agreed with Robert L. McReynrids, the committee questioner, that purpose of the "dummy corporlitte was conceal from the bankdepartment the names of those reiving the benefits of loans Asked if such alleged actions were responsible for breaking the bank Robertson said that the closing was directly to "runs" on it and that udden withdrawal' by the state masurer of about $110,000 of state ttds within ten days of the closing "largely responsible for its failHe conceded that if money laned the alleged "dummy" corprations had been invested in "good ans" the bank could have used these collateral to its benefit The bank about $350,000 of state funds on when Much of the hearing was devoted substitutions made for $3,840,securities that the Banking Deariment had demanded of the Bank Tennessee when the September exmination showed $2,200,000 depreciaassets Robertson said Caldwell & Co masferred the $3,840,000 collateral the bank to secure a repurchase stement between the two affiliated atitutions and that there was "no merstanding" with his department substitutions be made. 15 Per Cent Recovery Had the pledged remained said, the state vould not have lost dime of its These deposits were in ex$3,400 and Attorney GenSmith has announced that more than 15 per cent of them Robertson "understood" that the institutions were by E. A. sodioe, cashier of the Bank Tenone part and certain offiCaldwell & Co. on the other named the latter as E. J. Heitzeand Dewitt Carter, vice presiand Donovan, secretary
FACES
Ramsey Ordered Brought Back On Charges.
Criminal charges will be preferred against Ramsey, former president of the National Bank and Holston Trust Co., on instructions of the State Investigating Committee which today endorsed the demand of Senator Hal Clements of Knoxville. Ramsey and his family are Florida, and planned have him brought back for trial. About six years ago, Ramsey came to Knoxville from small town Kentucky, going with the Third National Bank and after Joseph Gaut resigned president of the merged National Bank short time later. he made the Holston generally considered that Luke Rogers Caldwell put him at the head the bank. Ramsey had personal notes Liberty Bank Trust Co. Nashville, and $19,500 Bank of Tennessee when closed. He also in one
16.March 21, 1931The Atlanta ConstitutionAtlanta, GA
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CALDWELL NAMED IN TWO INDICTMENTS
NASHVILLE. Tenn., March 20.deposits made by the state less than two weeks before Caldwell & Company's Bank of Tennessee closed formed the basis for indictments returned by n county grand jury today against Rogers Caldwell, president of the two institutions. Both indictments each containing two counts, charged Caldwell with receiving deposits in an insolvent bank. The first count in each said Caldwell knew the institution was insolvent and the second said he had reason to believe it insolvent. The deposits were made. the indietments said, by Highway Commissioner Robert H. Baker and Treasurer John F. Nolan. One bill said Baker deposited $6,500 of bridge funds on October 28, 1930. and the other said Nolan deposited $50,000 of state general funds on October 25. The bank suspended November 5. and went into receivership November A week thereafter. Caldwell & Company went into receivership. Criminal Court Judge Chester K. Hart set bond at $10,000 in each case. James E. Caldwell, Rogers Caldwell's father, and T. D. Webb, formerly associated with James E. Caldwell in the Fourth and First National Bank. pledged real estate valued at $30,000 and $25,000, respectively, as bondsmen. Caldwell is now under six indict ments, two of which relate to alleged transactions at the Bank of Tennessee, two to operations of Caldwell & Company and the Bank of Tennessee and two to transactions at the Holston Union National Bank at Knox ville. The last named two were returned by federal grand jury at Greeneville, Tenn. The jury at the same time jointly indicted Colonel Luke Lea, Nashville publisher, and J. Basil Ramsey, president of the Holston Union Bank, Conviction for receiving deposits in an insolvent bank carries with it penitentiary sentence of from one to five years if the deposit exceeds $25.
17.June 21, 1931Evening StarWashington, DC
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SAYS TRUSTS VIOLATED Bank of Tennessee Cashier Testifies in Banker Trial. NASHVILLE, Tenn., June 20 (AP).E. A. Goodloe, cashier of the defunct Bank of Tennessee, testified today in the trial of Rogers Caldwell, president of the bank charged with fraudulent breach of trust, that 25 of the 52 trust agreements made by the bank had been violated a few months before it closed last Fall. Caldwell, who also was president of Caldwell & Co., investment banking house now in receivership, which controlled the Bank of Tennessee, is accused of violating a trust agreement with Hardeman County by substituting less valuable collateral than that agreed upon as security for the county's deposits.
18.July 3, 1931Birmingham Post-HeraldBirmingham, AL
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CALDWELL TRIAL IN FINAL PHASES
Testimony Concluded And Arguments To Begin At Nashville Friday
NASHVILE Tenn., July 2-(P)The trial of Rogers Caldwell, financier, moved into its final phases Thursday with the conclusion of testimony and announcements that arguments would begin Friday. Caldwell is being tried on charge of fraudulent breach of trust. Mildly surprising spectators, the state end its examination of Caldwell at noon after questioning him as to various operations of his failed investment house, Caldwell & Co., and its subsidiary, the Bank of Tennessee, which also is in receivership. The defense then put on 16 character witnesses, including former Gov. Benton McMillin: Mayor Hilary E. Howze, Dr. James Vance, Caldwell's pastor, three judges, three farmers, detective, an undertaker, a college president and broker. The character witnesses testified they had known Caldwell intimately and knew him to be a man of good repute. Only one. C. Bradford, a stock and bond broker. was questioned as to other matters. Assistant District Atty. Gen. J.
19.October 29, 1931The Dodge CriterionDodge, NE
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Had $4,and Counties State 400,000 Deposited in Defunct Bank
Nov 12 Nashville. various the in the Bank Tennessee deposit Tennes filed to total approximately today listed in the invenState as the State highway departcredit the vehicle ment, finance account of the of the general and credit to specounty fund deposited credit counties, computed from the was time deposits, funds in trust. Claims Have Priority. While the inventory not list securities pledged collateral for State's deposits, the State supreme court the State titled claims the bank payable its depositors no priority claim unpledged assets. made what might realized from the sale unpledged securities and from the favorable from the pledged Loans overdrafts and other real estate in invenbook value stocks, municipal corporation bonds and stocks of trolled Caldwell and Company, of which the Bank of was subsidiary and certificates deposits. Liabilities given as the same listed the securities pledged secure deposits and bills payable The Bank of Tennessee acted f1nancial agent Caldwell Combanking house, of which Total time deposits companies controlled Caldwell and Company the and included the following Caldwell and Company the Southern Surety Company Bills payable included the following Bank LouisNational York, National $200,000, the National bills payable the Holston Union Tenn. which closed yesterday.
20.June 7, 1935St. Louis Post-DispatchSt. Louis, MO
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$39,598 SUIT AGAINST HEIR OF M'MILLAN ESTATE SETTLED
Nashville Bank's Claim Involving W. F. Kingston, Ontario, Is Compromised for $17,000.
Settlement for $17,000 of a suit for $39,598, filed here against William F. Kingston, a resident of the Province of Ontario, Canada, was made known in a stipulation filed yesterday in Circuit Judge McAfee's court.
Kingston is a residuary legatee under the $2,000,000 trust estate of Mrs. Eliza McMillan, who died in 1915, and receives $100 a month from the estate. The suit against him was filed by the receiver of the Bank of Tennessee at Nashville, and charged indebtedness on a note given to the bank with a pledge of collateral which the suit declared to have been worthless. The suit asked that the St. Louis Union Trust Co., as trustee of Mrs McMillan's estate, be required to pay the $100 a month to the bank's receiver until the obligation could be satisfied.
Stop Order Against Gold Stock.
WASHINGTON, June 7.—The Securities and Exchange Commission announced yesterday it had issued a stop order against the Plymouth Consolidated Gold Mines, Ltd., to halt stock transactions involving "worthless" Mexican and Arizona gold mines.
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.
