Chattanooga National Bank (Chattanooga, TN)

View Charter #13654 on SPMC View balance sheet

Episode Information

Episode UID
1365401599
Episode Type
Suspension → Closure
Bank Type
national
Bank ID
136540 national
Charter Number
13654
Start Date
March 6, 1933
Location
Chattanooga, Tennessee (35.046, -85.310)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
b28e4b2b7cc96f84

Response Measures

None

Receivership Details

Depositor recovery rate
85.0%
Date receivership started
1933-11-06
Share of assets assessed as good
48.8%
Share of assets assessed as doubtful
43.0%
Share of assets assessed as worthless
8.2%

Description

Bank closed during the March 1933 banking holiday, reopened under conservatorship, and later placed in federal receivership Nov 1933.

Events (6)
1. December 31, 1932 Chartered
Source
historical_nic
2. March 6, 1933 Suspension
Cause
Government Action
Cause Details
Closed during the March 1933 federal/state banking holiday and restrictions imposed by authorities
Newspaper Excerpt
the banking holidays started
Source
newspapers
3. March 17, 1933 Reopening
Newspaper Excerpt
Chattanooga National Resumes Business Under Restrictions. ... The bank opened Friday morning ... resuming business limited basis.
Source
newspapers
4. July 10, 1933 Other
Newspaper Excerpt
That release of the frozen deposits will greatly aid business here ... The Chattanooga National did not open the end of Patten was named and Edward Finlay and Taylor R Durham as. sistant conservators.
Source
newspapers
5. November 6, 1933 Receivership
Source
historical_nic
6. November 6, 1933 Receivership
Newspaper Excerpt
appointment of Paul Kent ... as receiver the Chattanooga National bank ... The comptroller of the currency has decided appoint receiver for the bank replace Durham
Source
newspapers

Newspaper Articles (17)
1. March 17, 1933 The Chattanooga News Chattanooga, TN

Article Text

VISIT LOCAL BANK MAKE DEPOSITS Lobbies Crowded as Chattanooga National Resumes Business Under Restrictions. SEEK TO REDEEM SCRIP Conservator and Aides Ask Authority to Take Up Paper and Pay Certain Funds. With hundreds persons thronging the lobbles of Chattanooga make posits secure additional Information regarding Its operations, Conservator Patten and his two deputy conservators Friday further Instructions from the of the currency on the restrictions. The opened Friday morning in charge Patten and Taylor Durham Edward Finlay, deputies, resuming business limited basis. The conservators have requested cerchanges restrictions which would enlarge the functions the bank carry These included request for permission redeem the serip issued the bank, ruling on secured deposits which would permit payIng out these funds, and authority pay certified cashier's checks. Secured deposits Include funds of the national, state, city and county governments. Conservators Praised. Chattanoogans visited the bank durthe day Friday. Many of the bank officials, the conhis two aides on the steps reopen the Institution. fact, there was apparent genfeeling of optimism in business the opinion that business here were definitely on the trend freely expressed. Deposits in the two leading banks Tuesday steadily increased day while were the Chattamany customers deposits during the American and Banking Hamilton Tuesday, did Elmo and Trust National open receive deposits on other functions All deposits since March subject to although the for the present permitted funds deposited prior to date, nor can the bank make present functions of the bank making collections. exchanges. change and acceptance of gold deposit Safe deposit box renters have Examination. The next step in the movement to (Continued on Page 2.)

2. July 10, 1933 The Chattanooga News Chattanooga, TN

Article Text

PUSH PLANS TO OPEN NEW BANK Details Expected to Be Worked Out Within tion Forming. (Continued from Page 1.) be Thereased to fifteen members Mr. Lupton has that over $200,000 of the common stock has been and that national bank. ing charter for the enterprise has been proved upon the sale of the balance of the $400,000 of common Arrangements were made for depos. tors to the 40 per cent be paid on the purchase in the new bank Announcement of plans which will result in the of 000 000 in was being enthusiasti. cally received by trade leaders That release of the frozen deposits will greatly aid business here was generally conceded. The payment will enable hundreds to meet and to have beer defor months The City and ty were an The 40 per cent payment on depos Its applies to funds in the bank prior to the national bank holiday Funds deposited the of a are to in full at The Chattanooga National did not open the end of Patten was named and Edward Finlay and Taylor R Durham as. sistant conservators. The bank opened the following Since that time the bank has oper. ated restricted The ment WAR immediately put under way whereby the as possible could be released The present plan is result of months of negotiation and numer our between Washington officials. the bank's committee and the

3. November 2, 1933 Chattanooga Daily Times Chattanooga, TN

Article Text

PAUL KENT LOOMS BANK RECEIVER Memphian Expected to Be Man for Chattanooga National. Recommended by Both Bachman and McKellar to Replace Taylor Durham. Appointment of Paul Kent. Memphis receiver the Chattanooga National bank has been recommended the comptroller the currency United States Senators Nathan Bachman and Kenneth McKellar, according to dispatch from Washington night appointment. the dispatch stated. "appears assured The comptroller of the currency has decided appoint receiver for the bank replace Durham, who been acting for the institution the few months. Durham an officer of the defunct bank. The two attemptappointed but due the policy of the comptroller of the currency receivers of national banks are not residents in the where the banks are Mr. Kent is an experienced banker. been connected old First National Memphis, and Charles Miles. Union City He came here the following the of appointment. returned Union without taking the duties office Conservator Durham continued liquidation the when Miles decided to take charge Chattanooga National bank was until the banking holidays started first opened during the banking holidays and operated restricted basis. but opened normal after the banking holidays started.

4. November 3, 1933 The Chattanooga News Chattanooga, TN

Article Text

Kent W ould Accept Bank Receiver Job Paul Kent Memphis banker would accept the appointment as receiver of the Chattanooga Na tional bank the is offered to him the banker said in Memphis Friday reported from Washington that an agreement has been reached as to his appointment and an announcement is shortly expected fro mthe comptroller Mr. Kent would replace Tavior uidating the bank's assets The appointment of an out-of-town man to liquidate banks and he replacing of conservators with receivers are two policies of the comptroller Charles W. Miles. Jr., Union City banker. was first offered the receiver's job, but declined to accept

5. November 4, 1933 Chattanooga Daily Times Chattanooga, TN

Article Text

To Get Post Mr. Kent. prominent Memphis bankconsidered certain to get the post of federal receiver for the Chattanooga National bank. Formerly connected with the Union and Planters bank of Memphis, Mr. Kent more recently has been secretary and treasurer of the Progressive Building and Loan company in Memphis

6. November 8, 1933 The Chattanooga News Chattanooga, TN

Article Text

KENT ASSUMES RECEIVER POST OF CLOSED BANK Memphian Arrives Wednesday. Intends Speedy Liquidation of Chattanooga National. An liquidation assets of Chattanooga Bank with possible of Memphis up his who by of the for after of to that of receiver took said at Mr and

7. November 8, 1933 Chattanooga Daily Times Chattanooga, TN

Article Text

CHOSEN RECEIVER Paul Kent to Take Over Work National. Chattanooga for Will Also Appointee Report Take Charge of First National Unverified. of the appointment of of receiver for Kent, bank, was Chattanooga by Taylor Durreceived yesterday and the receiver arrive expected known for several days had been Kent had been selected for Mr. the had daily. The expected Mr. Durham yesterday by from the comptroller the morning at Washington, relieving him currency Monday night. for several days Unverified reports receiver for the ChattaNational would charge First National, from which bank but first-named not substantiated information received here yesterday. Although nothing definite is in prossecond dividend payment by for Chattanooga National, appointment receiver places bank in line by the corporation for dividend Finance The conservator system is used only when the bank contemand Reconstruction plates Finance corporation cannot loan, made On the arrival of the receiver, the will turn over all his to new official and all the transferred to new books. will involve great mass of dework requiring some time. thought that probably have closed suspended for about three weeks facilitate the task of transferring the records to the receiver's Kent formerly was connected was connected with building loan asHis follows declination the first by Miles, of the Exchange bank, of Union City.

8. November 19, 1933 Chattanooga Daily Times Chattanooga, TN

Article Text

BANK RECEIVER MOVES SUITE TO FOURTH FLOOR receiver of the Offices of the bank the second terday afternoon of Chattanooga National building to the fourth floor afford 419 of double former amount space. O'Neal, special of the in 418. tion, have his office Kent, receiver, will 420 general reception room.

9. March 31, 1934 Chattanooga Daily Times Chattanooga, TN

Article Text

Paul Kent, receiver for the Chattanooga National bank, entered suit yesterday in chancery court to collect $4,000 with interest from W. J. Counts and Mrs. Counts on a note made April 14, 1927. The bill asked and received an injunction prohibiting the Counts from collecting rents on an apartment on which the bank holds a deed of trust to secure payment of the note. The note was made payable to the Chattanooga Savings Bank and Trust company and was originally for $4,000, but with interest added it now amounts to $4,663.32. There is also $304 due the bank on an insurance premium, the bill states.

10. April 24, 1934 Chattanooga Daily Times Chattanooga, TN

Article Text

SECOND BANK Chattanooga National Stock Owners Must Pay 100 Per Cent. TOTAL RUNS $1,500,000 Chancery Hearing Testimony Indicated Defunct Company Owns Shares. Official announcement of an order from T. O'Connor, comptroller the currency, assess stockholders the defunct Chattanooga National 100 cent. meet the liabilities the institution creditors made here yesterday by Paul Kent, receiver for the bank. The order came yesterday afternoon and Receiver Kent made public upon receipt. The stock which has been issued by the Chattanooga National bank totals Kent announced. Arrangements for payment on the stock will similar those made in the assessment the comptroller against stockholders of the First National Other than to say the order been issued 100 cent. assessment $1,500,000, the ceiver said he not able to make public further details. Payment Plan Expected. The order issued to the First National bank that the would required pay the before May in cash. further however, was worked out for the First National which will entitle them to make down sue bearing notes for the remainder, to be paid monthly in three consecutive installments. Similar arrangements will be availaof National, Mr. Kent said, adding that not in position to say when ment the National stockholders due, or give list stockholders. The order of assessment against the Chattanooga National stockholders terday the as the defunct According entered in First National chancery recently, that practically share the Chattanooga owned the Securities company, subsidiary the First National bank. It was further pleaded by the First National that the First company insolvent. With that and his attorneys faced the reaching the proper parties, there any, levy against. The First Securities company chartered Tennessee and under state stockholders corporation for its debts. However, theories discussed legal circles which lead that against the of the First who are directors the First Securities company, may tried. thought day that Kent withheld the details the comptroller's order view the that litigation stock the First when National was organized likely to Minutes Show Details. The minutes the First National bank of 1932, date Chattanooga ganized, show that the First contracted 124,300 shares National agreeing to pay share The par $10 share and the extra $10 was paid meet the surplus and undivided profits The contract made with the First National contract, according to First minutes, First agreed purchase the stock the First agreed furnish its subsidiary the money which make purchase. The First tional agreed the First Securicompany which stock and took note with stock collateral for the loan. was further the minutes, that Securities secure pledge others shares share. bank also agreed advance to the Securities comfor 25,000 remaining shares the Chattanooga The bank to shares among dividend and charge the against the surplus. The National agreed contract with the First assume to deposiall amounts owing letters credit; unpaid dividends; taxes and expenses; debtedness amounts all and debts, shown the books contract the Chattathe First National provided that National did not liability for debts to assume Finance corporation; the Volunteer liability of business the any liability, any, growing out the mortgages, bonds, adjudicated liabilities against the First National in pending future litigation major obligadisclosed books. The minutes further show that under the contract cash hand; items loan discount departdue on due letters credit; States certificates indebtedStates bonds other ness; United stocks and redemption fund treasury United States; the bank building; notes all furniture and items; all policies; policies on Sadd insurance and Hoskins. was further shown the minutes loans bank date totaling were pledged the borrowed The in the the to the amount and the the new bank to cover losses against uncollected items. The First National's debt to the ReconstrucFinance the time corporation totaled board authorized new loan of The executive committee of the bank 1932, when the First the year with the First the National, included Patten, Fred See Page Fourteen, Column Four.

11. May 26, 1934 Chattanooga Daily Times Chattanooga, TN

Article Text

BANK RECEIVER APPEALS FOR FIFTH OF MILL DEBT The financial condition of the Champion Knitting mills has become so "hopelessly insolvent" that a 20 per cent. settlement of $120,000 indebtedness the company owes the Chattanooga National bank was asked in a petition filed in chancery court yesterday. Paul J. Kent, receiver of the Chattanooga National, brought the litigation ex parte through his attorney, Estes Kefauver. A majority of the creditors of the Knitting company, the petition stated, have agreed to accept a 20 per cent. payment. The mills had $13,175.13 on deposit in the Chattanooga National

12. August 9, 1934 The Chattanooga News Chattanooga, TN

Article Text

Bank Receiver Collects Over Kent's Report to Comptroller Reveals Liquidation Prog. ress Chattanooga National. Liabilities Over 12 Million Cash Collections From Assets $3,710,595. A total of 83 884,539 55 has been collected from the assets of the Chattanooga National Bank Receiver Paul Kent set out in report Thursday to the Comptroller of Currency The statement of condi tion is as of the quarter ending June 30 It gives the figures on liquidation the period from Aug 1933. to June 30. 1934 The report shows the book value of assets the of of the bank's operation at $17,118 Additional assets acquired since suspension book of are shown This makes total of assets of 08 The total cash collected from sets shown at 710,595 19 and for additional assets 36, making total cash collected of 55 The total remaining uncollected after small of loss and offset allowed on assets Liabilities Total $12,841,640 Total of are shown These are liabilities date suspension unsecured and addi established $13,977.35 Secured and preferred paid in total paid liabilities and proved $28 662 while un secured paid or proved are shown 433 Under sources Items shown are from interest premiums lected by receiver and held tee for owners, 284 RFC loan received making total Under listed pay ment the RFC 444 and dividend per creditors Secured and preferred liabilities paid total $3,231 756.07 Cash in hands of and comptroller $235 059.38 Expenses of receivership are shown at $84,089.02 Collateral count held creditors and given at $138 These with an $4,073 20 for taxes make total bursements of every character" of $8,643,823.85 Kent said that the process of liquidation had been proceding of business con ditions He explained that is no prospect dividend ceivership further reduce the RFC loans

13. August 20, 1934 The Chattanooga News Chattanooga, TN

Article Text

Phil Whitaker Is Named As Attorney for Receiver Maj. Phil B. Whitaker has been named replace Whitaker an attorney for the Chattanooga National Bank receiver ship. Receiver Paul Kent has re ceived notice of the appointment from O'Conner Sam Whitaker as special assist ant the United States Attorney General is now carrying on an inves tigation in the State Washing ton. He has been "out of the city for several and will probably not complete his work for time Maj. Phil Whitaker already has been looking after some of the legal in connection with the for his brother There are neys for the receiver, Estes Kefauver being the other

14. October 23, 1934 The Chattanooga News Chattanooga, TN

Article Text

Bank Receiver Sues Bush Estate on Note Paul J. Kent receiver of the Chat tanooga National Bank. brought suit in Chancery Court Monday afternoon against Albert Bush administrator of the estate of T. G Bush The collection of $5,000 note sought The note has been pledged to the

15. October 27, 1934 The Chattanooga News Chattanooga, TN

Article Text

Bank Receiver Petitions Authority to Lease Space lease of part of the ground the Chatta Bank Building to Creighton's asked petition was filed in Court by Paul Kent receiver of the Chattanooga Na Bank The stated that the 1934 1939 The get per cent Creighton's of rent the Whitaker Whitaker filed the petition The disabilities of Floyd Raper and Cheatham Haynes 20-year youths Lon Foust on the hear of

16. November 15, 1934 The Chattanooga News Chattanooga, TN

Article Text

Bank Defended By Frierson (Continued From Page One.) on facts as disclosed in this record. that the First National Bank did not until the Chattanooga National Bank failed, an oc currence that rendered valueless 1,500,000 of its assets that otherwise 47% could have been utilized to pay off he all of its outstanding Blamed. But the court must realize that almost after the zation of this new bank the first of 1933. bank trouble Knoxviile acted here other trouble at Mem phis had bad effect, and bank fail ures in all parts of the country lead ing up to closing all by the militated against fair stable increasing, the gen distrust of banks the part generally brought by the had resulted in continued heavy so it the closed all Chattanooga First National Bank became and facts as placed before do not the creditors of the National Bank have any against bank the oral lor the bank Federal Court Tuesday Lynch had started the argument afternoon and continued again Thursday morning Frierson talked for an hour and concluding at for In the part his argu insisted the the Chattanooga Na tional act by the First Na tional escape its bilities This the question in good miting dis aster The officers bank on the National But would this have on the go take and the had the same stockholders the "Cut Loose Liabilities days Then came dis management have can save the stockholders * they create new tion take of old when the ers provided and the left No such things are of for his including decisions and three theories on was proceeding any of he would the First Na tional Bank accruing after new bank was created These Regardless the solvency of the First after the creation the National the institution could be held liable for the creditors The transfer the First insolvent stripping it its Creditor due protection re gardless of the right of solvency or insolvency Lynch cited a Supreme Court de the case of North ern Railroad Paul his the debts transfer by themselves to themselves be resorted to for the defeat less of the good faith with which is made Liable for testified Other by the attorney show that which the business bank another transfer of am assets from the First National the the Cha the concern receiving the assets left the to the of and its for claims clusion but this Judge from Maj. Phil the bank was speak first when the afternoon session He the pool pected to about five min pledged to utes and will followed by nance Judge and the happened? he by Capt. the transfer of of the First National Chat anoga National Bank an absurdity and Judge James Lynch Wednesday aft started record Federal District the case and others against used the National only those Judge the loans seeking transfer of assets praised National held invalid and the ceeds those applied tors of the National Bank The greater of the ing in have Judge based the of the case as heard in "So Hamilton Holding the late other and Judge Taylor heard Judge anxiety opening argument Frierson and and Phil Whitaker the two banks and have been ver for the and B. representing num ber of dvertisement and Judge Lynch was National the Judge "Taylor Durham goat bore the this Judge Lynch As first vice president of the he was the and what he the bank knew what he did the testimony introduced been Chancery Court and made part this record discloses by Durham for the been used months of 1932 he was engaged working on proposed organiza tion of the Chattanooga National ration Bank the Robb's Ignored. "Where that us? This shows that 1932 the chief bank Mr. Robb Chattanooga wrote letter to the which he called attention to the Lynch fact that from the had not This same letter that the mortgage pool was as 'dump ing ground' for undesirable and slow assets' in order that these undesir able assets might be removed from the assets of the bank and its child the First Securities Company "So it easy to see this rec and the ord that when Chief Examiner Robb's letter was read at that called

17. December 12, 1934 Chattanooga Daily Times Chattanooga, TN

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Schooler Gets Divorce. Ben Pryor Schooler was granted a divorce decree from Irene Schooler by Judge L. D. Miller in second circuit court yesterday. New divorce petitions were filed in circuit court clerk's office by Maude C. Phillips against Oscar B. Phillips; Lula Payne against Jake Leo Payne and Willie Mae Smith against Vance Edward Smith. Receiver Asks Decree. Paul Kent, Chattanooga National bank receiver, yesterday filed a chancery petition asking a decree of $1,994.71 against American Trust and Banking company, administrator of the estate of Mrs. J. F. Gibson, plus interest and a $250 fee for the receiver's attorneys, Chambliss & Kefauver.