gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
2658984bae9ff60e
Response Measures
Capital injected, Partial suspension, Full suspension, Books examined
Other: Board appointed a committee to negotiate reorganization or transfer of assets into a new banking organization to protect depositors; receiver (Comptroller's representative) was appointed and later made dividend payments to depositors.
Clearinghouse involved: Yes
(loan, examination, or other measures)
Receivership Details
Depositor recovery rate
55.1%
Date receivership started
1930-11-12
Date receivership terminated
1941-05-07
OCC cause of failure
Governance
Share of assets assessed as good
36.6%
Share of assets assessed as doubtful
59.0%
Share of assets assessed as worthless
4.4%
Description
Bank appears in articles under both 'Holston National' and 'Holston Union National' names.
Events (5)
1.October 24, 1891Chartered
Source
historical_nic
2.November 10, 1930Run
Cause
Local Banks
Cause Details
Large withdrawals triggered by runs/withdrawals around Knoxville after other bank failures (references to Bank of Tennessee failure and general withdrawals).
Measures
Clearing House members availed themselves of 30-day notice for time deposits; bank board later suspended business and appointed committee to seek reorganization or new bank.
Newspaper Excerpt
Directors the bank said the bank was forced by reason of heavy withdrawals made within the past few days.
Source
newspapers
3.November 11, 1930Suspension
Cause
Local Banks
Cause Details
Board ordered suspension after heavy withdrawals depleted cash reserves; directors cited heavy withdrawals made within the past few days.
Newspaper Excerpt
the bank which suspended business by order of the board of directors Tuesday night.
Source
newspapers
4.November 12, 1930Receivership
Source
historical_nic
5.November 12, 1930Receivership
Newspaper Excerpt
Herbert Pearson, field representative of the comptroller of the currency, in Knoxville today to take charge of the closed Holston Union National bank. He has been appointed receiver.
Source
newspapers
Newspaper Articles (24)
1.August 11, 1926Johnson City ChronicleJohnson City, TN
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Knoxville Banks in Giant Merger
Knoxville. Tenn., Aug. Merger of the Holston National and Third National banks this city banking house with ten million dollars of effected today joint meeting of the two known the Holston occupy the latter's quarters the Holston's story down Gaut, president of the head the new bank and cashier and Third due Ramsey came Madisonville, Ky.,
Indian leopard Aug reach of several hundred Three were was with rifles and dogs today gerously wounded another The latest report came from the missing. following battle between Coastguard cutters Wall Township farmers alleged Hazel Herman. having heard suspicious the patrol boats assigned unlike those of the Florida thwart leopard. of British liquor, battled sent to Oliver the Herman last night owner the beast from whose Augustine, according reports last Thurs- today when the bring his guns and brought by patrol boat other hunting implements. 202.
2.November 13, 1930The Tampa TribuneTampa, FL
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Receiver Takes Over Knoxville Bank
KNOXVILLE, Tenn., Nov. 12.-Herbert Pearson, field representative of the comptroller of the currency, in Knoxville today to take charge of the closed Holston Union National bank. He has been appointed Pearson said he had no idea how long it will take determine status of the bank which suspended business by order of the board of directors last night. Directors the bank said the bank was forced by reason of "heavy withdrawals made within the past few days." But none of the bank's officials or directors would say by whom withdrawals made, the amount, assign any reason why "heavy withdrawals" were made. J. Basil Ramsey, president of the bank, said it as his belief the bank is solvent.
Pearson Assumes Charge of Bank
Knoxville, Tenn., Nov. bert Pearson, field representative the comptroller of the currency, today assumed charge of the closed Holston Union National Bank as receiver. The bank was closed by order of the board of directors Tuesday night. Pearson said he did not know how long would take to ascertain the status of the banking house. Directors said the bank was forced close because of "heavy withdrawals within the past few days."
4.November 13, 1930The Montgomery AdvertiserMontgomery, AL
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FEDERAL OFFICER TAKES OVER BANK Institution's Condition Is Still Unknown; Withdrawals Blamed
KNOXVILLE, TENN., Nov. Herbert Pearson, field of the comptroller of the currency, arrived in this to take charge the Holston Union National Bank. He has been appointed receiver. Mr. Pearson said he had no idea how long will take to determine the status the bank which business by order the board of directors Tuesday The receiver came from Macon, Ga., his headquarters. Directors of the bank said the bank was forced to close by reason "heavy withdrawals made within the past few days," but none of the banks officials or directors would say by whom withdrawals were made, the amount, assign any reason why "heavy withdrawals" Basil Ramsey president of the bank, said approximately $750,000 withdrawn from the Union on Monday. He added that was his belief the bank solvent, could have tinued if withdrawals had not depleted reserves." Edward McMilan, chairman on rethe Union, said today he had nothing to, announce regarding The Clearing House Association in statement this afternoon said that its members had availed themselves of the 30-day notice required for withdrawal of time deposits and savings The institution said in statement that "it feels there occasion for on the part of the depositing public. Constant and withdrawals from all of the Knoxville banks, if continued, would in all probability be very damaging all the banks of the city and to all depositors.
Pearson Assumes Charge of Bank
Knoxville, Tenn., Nov. bert Pearson, field representative of the comptroller of the currency, today assumed charge of the closed Holston Union National Bank as receiver. This bank was closed by order of the board of directors Tuesday night. Pearson said he did not know how long would take to ascertain the status the banking house. Directors said the bank was forced close because of "heavy within the past few days."
STATE FUNDS TENN. SUSPENDED
Holston Union-National, Largest Knoxville Bank, Closes Doors
$195,000 CARTER CO. FUNDS INVOLVED
Suspension of Knoxville Bank Follows Steady Withdrawal of Deposits, Depletion of Cash Fund
Nov. the National Bank Knoxville to open its doors this morning left the state Tennessee and night with approximately $5,813,777, and more, in two banks that have suspended operations Suspension of business by National was caused heavy during past few days, the the failure Friday the Bank of Tennessee Nashville of the Caldwell hands of committee three bankers. Rogers Caldwell, head of Caldwell and Company, minority stockholder in Holston Union National of Knoxville. An inventory filed today by Robertson, state bank superintendent, that approximately 400,000 state county deposit the closed Bank Tennessee Naghville, State Baker today that highway funds deposit State John Nolan $197,000 of the general fund and $168,000 the University of sinking fund deposit at the bank.
S. MAN AT KNOXVILLE Tenn., Nov. Pearson, field sentative of the comptroller currency, arrived today to charge the closed National receiver. Mr. he had no how long will take determine the status the bank which pended business by order board Tuesday night. The came here Macon, Ga, his headquarters. of the bank said forced to by reason withdrawals made within the past days.' Basil Ramsey, president of the bank said amounted to nearly $750,000. added that it was his belief the bank solvent. Edward McMillan chairman organization the said today he had nothing to nounce regarding his committee's work.
KNOXVILLE BANK CLOSES
Tenn., Nov. doors of the ion National Bank, which for years one the largest financial stitutions East Tennessee, closed today. Directors of the bank in last night announced that "necessary for board direct business order that interests deposistockholders should protected." The statement expressed the board's belief that the bank vent, would continued business, for the unusual and extraordinary withdrawals which been made within the past bank's published cial statement October second liabilities and assets $16,300.359.69 Under liabilities mand deposits given and time deposits at Capital was given at
(See Page Two Column
dent of that institution since the He is president of the Fourth and First Banks, Inc. KNOXVILLE BANK CLOSED Comptroller Takes Over Holston Union After Heavy Withdrawals. representative of the comptroller of ville this to take charge of the closed Holston Union National Bank. He has been appoint. ed Mr. Pearson said he had no idea how long take to the status of the which suspended business by order the board of directors Tuesday night. The receiver came from Macon. Ga. rectors of the bank said the was forced to close reason of with the past few days" but none of the bank's officials or directors would say by whom withdrawals were made the amount, nor as. sign any reason "heavy withBasil Ramsey president of the bank. said $750 000 were withdrawn from the Holston Union on Monday. He added that was his belief the bank have continued if withdrawals had not depleted its Edward McMillan chairman on reorganization of the Holston Union. said today had nothing to mittee's Closing of the Holston Union had its effects on other banks of the city today Crowds gathered in each of numerous withdrawals were made.
No Occasion for Alarm. The Knoxville Clearing House Association in statement early this afternoon announced that its members had availed themselves of the 30-day notice required for withdrawal time deposits and savings The association said in a statement that "feels there is no 00casion for alarm on the part of the depositing public. Constant and heavy from all the Knoxville banks would in all probability be very damaging to all of the banks of the city and to all depositors In the bank's last published on October liabilities and assets were $16,300,359.59 each. Under liabilities, demand deposits were given as $6,121,869 and time deposits at $5,795. $5. Capital was given as $750,000: surplus $750,000. and undivided profits $141,847.97 Among liabilities were bills payable and rediscounts "The board," the statement said. "has likewise appointed a committee to negotiate with certain interested parties with view either to the reorganization of this bank or organization of another banking association. into which will RO the assets of this bank, with the object of protecting its depositors. The Holston Trust Company, dealing in owned by the Holston Union National Bank also is closed. J. B. Ramsey. formerly of Kentucky. is president of the oank Directors in their statement said cash reserves were depreted to the point where the bank could not continue without "assistance from outside sources."
8.November 13, 1930The World-NewsRoanoke, VA
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Article Text
Receiver Takes Over Bank At Knoxville
Herbert Pearson, field representative of the comptroller of the currency, arrived yesterday to take charge of the closed Holston Union National Bank as receiver Mr. Pearson said he had no Idea how long will take to determine the status of the bank which suspended business by order at the board of directors Tuesday night The receiver came from Macon, Ga., his Directors of the bank said it was forced to close by reason "heavy withdrawals made within the past few days. Basil Ramsey president of the bank. said withdrawals Monday amounted to nearly $750,000. He added that it was his belief the bank is solvent. Edward J. McMillan chairman of reorganization of the Holston Union said today he had nothing to announce regarding his committees work.
9.November 14, 1930Evening StarWashington, DC
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BANK-CLOSING FLURRY WANES AT KNOXVILLE Clearing House President Says Business Has Returned to Normal-Much Cash Returned. By the Associated Press. KNOXVILLE, Tenn., November 14.-1 A. P. Frierson, president of the Knoxville Clearing House Association, announced yesterday that "excitement on the part of the depositing public in Knoxville caused by the closing of the Holston Union. National Bank has subsided and banking business has res turned to normal." He said that "much of the money withdrawn from Knoxville banks by depositors Wednesday was redeposited yesterday." Herbert Pearson, representative of the United States controller of currency and receiver of the Holston Union Bank, said the bank's doors may be opened next week for collections.
KNOXVILLE BANK CLOSED ACCOUNT WITHDRAWALS
Knoxville, Tenn., Nov. 14. (INS)Herbert Pearson, field representative of the comptroller of the currency, today assumed charge of the closed Holston Union National Bank as receiver. Directors said the bank was forced to close because of "heavy withdrawals within the past few days."
11.November 14, 1930Evansville PressEvansville, IN
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BIG BANK IS FORMED BY KNOXVILLE MERGER
By United Press The East Tennessee National, the City National and the East Tennessee Savings banks were merged today into the East Tennessee National bank. The total resources are more than $32,000,000 The merger came two days after $25 closing of the Holston- Union National bank. Both the remaining two national banks were subjected to heavy runs on Wednesday, the day the Holston failure was announced, but their currency on hand was more than ample.
merely passing through Tennessee haulloads freight on our highways, and that in other instances the safe and proper use of the roads our citizens being interfered with by the operation of vehicles long, too and moving at dangerous speed. There no doubt in my mind that we should take effective steps to protect and our highways from this sort of operation. were struck with the admitted fact that motor trucks for hire busses are now paying little or nothing the way of taxes the counties and cities through which they operate. of the cities in which hearings were held, called our attention to the fact that their streets were damaged costs by these vehicles from which they received no "Two strongly differing views were presented on the question of increased taxation for motor The truck and bus lines insisted that any additional would force out of business: the railroads that the motor lines were here to stay, but should pay additional taxes for the use of the public roads. It appeared. also, that present taxes freight trucks for much lighter than on passenger busses job the gather and consider the facts and to work out some system of taxation and regulation of these vehicles will equitable the peothat burden the the private motorists of the state by forcing them to pay more than they should for the extra wide and extra strong roads necessary carry extra large and extra heavy vehicles. and that protect the people's roads and the roads they own from abuse by operations Our task not easy. but know none greater importance before this legWe urge to favor us with information suggestion.'
PROSECUTOR AT CAPITAL DRAFTING INDICTMENTS
NASHVILLE Feb. 22 (P).-Opening the sixth week of probing by islative committee investigating state affairs found the investigators prepared drive hard down the various lanes information in the belief that it will result in indictments against some state officials and financiers. particular charge aimed at the state officials tion with the switching state tunds from bank to bank that resulted in more than $6,000,000 now being unavailable because of the failure four the banks. Violation of state banklaws the charge directed financiers actually who influenced the of the money Testimony during week to be an effort bolster these charges. Already the district torney has started work on the draft indicuments, but the information may withheld grand the committee gets farther along with Over week-end the committee virtually abandoned its plans transits inquiry Knoxville, where funds were involved the failure of the HolNational bank and the ston Trust company. The committeemen had their previous Asheville, to inquire into the late Central Bank and Trust company that has been charged before committee manipulations with the broken Liberty Bank and Trust company, of Nashville, and New York the ords Lehman who the two Tennessee bond issues $50,000,000. Final decision on the New York trip, however, has not been reached. Some members of the committee expressed the opinion that they can oball the needed information and vigorous steps that end during the next before must write preliminary report for the legislature. This preliminary report will be prepared the view furnishing the crux of the investigation on which the grand jury and the legislature may make their cases. During the first part of the week the highway department to OCcupy the center stage with its commisR. Baker, the leading actor. The commissioner, tall appointee of Gov. Henry H. Horton, opened his testimony but
13.March 12, 1931The Town TalkAlexandria, LA
Article Text
Closed Bank Director Kills Self, Officers Say
March (By Mims. 62. lawyer director large Holston Union National Bank Knoxville, died today from officers said were bullet wounds.
KNOXVILLE BANK TO PAY DEPOSITORS 40 PER CENT.
KNOXVILLE May depositors the closed HolstonUnion National bank of 40 per cent. of their deposits will begin Monday, HerPearson, receiver for the He estimated that the total will Dividend payments, he said, will restricted of 500 daily avoid confusion. Groups of 500 will notified from day been approved and checks are ready
15.July 23, 1931Evening StarWashington, DC
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# PROSECUTOR SAYS LEA
# MUST PRESENT PLEA
Tennessee Indictment Abatement
Arguments to Be Heard at
Knoxville August 1.
By the Associated Press.
KNOXVILLE, Tenn., July 23.-William Carter, United States district attorney, announced yesterday that Col. Luke Lea, Tennessee published, indicted in Federal Court here on charges of violating national banking laws, must be present or represented by counsel in event his plea for abatement of the indictment is argued in Knoxville August 1.
Rogers Caldwell, president of Caldwell & Co., investment banking house now in receivership, and J. Basil Ramsey, president of the defunct Holston Union National Bank here, are indicted jointly with Lea, and they have joined in making the abatement plea.
Carter said their counsel have asked him to continue the abatement plea hearing, since Lea is scheduled to go on trial in the State Court of North Carolina at Asheville July 27 on charges arising from the failure of the Central Bank & Trust Co. there.
"When the North Carolina case against Lea was originally set for July 13, I agreed to pass the hearing to August 1 to accommodate them," Carter said. "If they don't show up, I'll call for a bond forfeiture."
Lea Indicted In Another Collapse
Knoxville Tenn., Colonel Luke Les, Nashville puband Basil Ramsey. Knoxville banker. were revealed today indicted yesterday fedgrand in the of the Holston Union National bank here last November. Ramsey. president of the was indicted on charges of misapof the bank's funds and making false entry. Les was indicted on charges of aiding and abetting about of the bank's money
17.November 18, 1931The Charlotte ObserverCharlotte, NC
Article Text
KNOXVILLE BANK RECEIVER SUES PUBLISHING COMPANY the Holston Union National bank of Knoxville, today filed suit chancery court here against the Tennessee Publishing company, asking judgment note 000 Pearson's the was signed and was for 30
Police Charge LONDON their police charged crowd of about 500 unemployed manifestants in the north of Lon don today and several men were
18.December 1, 1931Messenger-InquirerOwensboro, KY
Article Text
Trial of J. B. Ramsey, Knoxville, Postponed of B. Ramsey president of the Holston Union National bank, Knoxville Tenn. when suspended operation in November, 1930. scheduled to begin there today has been reset January 25 on tion of the defendant Ramsey under five indictments charging fraudulent breach trust the alleged handling of about state highway funds on deposit He was formerly presIdent of Hopkins county bank, which suspended here in November, 1930.
19.December 2, 1931The Owensboro MessengerOwensboro, KY
Article Text
Trial of Ramsey, Knoxville, Postponed Ky., Dec. Ramsey president the Holston Union National bank, Knoxville, Tenn., when suspended operation November, 1930, scheduled begin there today has been reset January on motion of the Ramsey under indictments fraudulent breach of charging the alleged handling of trust, about state highway funds on deposit. formerly ident the bank, which suspended here in November, 1930.
RAMSEY RENEWS PREJUDICE PLEA
Seeks Change of Venue From Knoxville for Trial
KNOXVILE, JAN. Attorneys Basil Ramsey, president the failed Holston Union National bank, renewed motion change of venue the banker went on trial in criminal court today on charge fraudulent breach of trust. They charged that the same and ill feeling" existed against on June last, when Judge D. Moton overruled change of venue motion. Ramsey sat with his four attorneys and gave close attention to opening proceedings. Attorney General Fred Bibb informed court that the State Highway Commissioner R. H. Bakstate witness, could not present until Wednesday, while other state witness, H. Briley, accountant for state highway department Nashville, was on vacation in Texas.
News Articles Cited. Kennerly, defense attorney, presenting his motion for change of venue, introduced numerous newspaper articles which ported court cases in which Ramsey had been involved since last June.
He cited the indictment of RamCol. Luke Luke Lea, and three others Nashvlile last August in which they were charged conspiracy defraud the Liberty Bank and Trust company of Nashville. He read accounts of the indictments Ramsey and Col. in federal court here last September, Ramsey being charged with misapplication funds and false entry and Lea with ting Ramsey in the alleged application of funds. From the Knoxville papers he gave count of Ramsey's bondsmen being sued in federal court for $150,000 alleged have been lost, the ticle said, "on account of the honest acts of Ramsey.
Called Lea Tool. The article referred to Ramsey tool of Rogers Caldwell and Luke In conclusion the venue motion said "heavy run by the East National bank, Friday, November 1931, created great and further prejudice against banks, bankers and former bankers and especially the defendant." 150,000 persons, Kennerly declared, were effected the
INDICTMENTS DISMISSED FOR LEA AND ASSOCIATES
KNOXVILLE, May 25 (P).-Indictments returned at Greeneville more than year ago charging Col. Luke Lea and Rogers Caldwell, of Nashville, and B. Ramsay, of Knoxville, with violation of the national banking laws, were formally dismissed in federal court today. Application of United States District Attorney W. J. Carter for an order nolle prosequi was granted by Judge George Taylor without The indictments followed the failure here in November, 1930, of the Holston Union National bank of which Ramsay was president and Lea and Caldwell stockholders. Lea and still face charges out of the bank's failure. have been postponed until the next term of the Knoxville federal court. A trial date will be set next Tuesday. Carter said the Greeneville cases against Lea, Caldwell and Ramsey were nolle because he was forced either to "try or dismiss' them and he wanted to try the Knoxville indictments first.
Truck licenses in Michigan for 1932 are expected exceed 1931 in state revenue by $100,000.
Two Fail to Appear When They Are Called to Surrender Under Two Charges
ARE ALREADY SENTENCED
Jan. Lea, Nashville publisher, and his son, Luke Lea, were called to surrender in county Superior court today at but they were not present and were ordered issued their arrest The were called surrender under for conspiracy another for funds the closing the Central Bank and Trust company Asheville elder former Tennessee under in prison his son under with the option of paying $25,000 in fines and When they failed to SoliciZeb Nettles extradite them Tennessee would be made tomorrow.
Draw Grand Jury The drawing grand jury OCcupied the court during the major of the morning the first the docket were those namthe Solicitor Nettles called each Deputy Sheriff Gilbert then called each name three times There The Leas failed to appear and the caplases were ordered by Judge Felix Alley, Waynesville, member of counsel for the present the proceedings but he refused The solicitor papers for plication for requisition father and had been completed and signed today and that they would afternoon train here o'clock. Hughes Assigned. K. Hughes, Buncombe county the papers the state capitol and will present them person Governor Ehringhaus tomorrow morning. The two Leas, failing to be present here thus delayed beginning payment of penalties posed them after conviction 1931 of violation of the banking laws. The solicitor said he would move the of their amounting to $50,000 and that he was ready go Nashville to press claim of this state the 54-year-old father and his son fought extradition.
They were convicted 1931 with Wallace Davis, of conspiracy defraud the Central Bank Trust nearly Davis presithe bank which failed the fall of 1930
Under Bond. Since their the Leas have free under bond while various unsuccessful appeals have through the courts There some doubt whether North Carolina collect $50,000 the Leas' are They were signed by the Union New which now and the value of the bonds remains be Colonel Lea faces other North Carolina prison. indictments charges from the of closing Liberty Bank and Trust the Holston Union National bank of Knoxville
"NO STATEMENT TO MAKE." IS REPLY MADE BY LEAS. Luke Lea and Luke Jr., were in today at the time
(Continued on Page Seven.)
U. S. Employes Up In The Air
Bank Receivership Workers Here Wonder About How This NIRA Will Affect Them.
While the rest of Knoxville scrambled around yesterday to adjust itself to the provisions of the NRA, two groups of federal employes were left holding the bag.
Knoxville's two bank receivers—C. O. Carpenter of the Holston-Union, and F. F. Boone of the
SUES NOTE MAKERS
Holston Bank Receiver Asks Sale Of Collateral
C. 0. Carpenter, Holston National Bank receiver, had filed a Federal Court suit here today against backers of $74,075 worth of notes, naming J. J. Galbraith. H. H. Galbraith and Charles E. Galbraith as defendants. The suit asks that collateral put up as security for the notes, be sold.
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.
