gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
5ce7c46c1375e0cd
Response Measures
None
Description
Bank closed for voluntary liquidation and a receiver was appointed; officers later criminally convicted for operating while insolvent.
Events (2)
1.December 16, 1912Receivership
Newspaper Excerpt
John W. Green taking charge as receiver.
Source
newspapers
2.December 16, 1912Suspension
Cause
Voluntary Liquidation
Cause Details
Bank closed its doors for voluntary liquidation amid insolvency; receiver John W. Green appointed.
Newspaper Excerpt
The bank closed its doors to-day for voluntary Hquidation, John W. Green taking charge as receiver.
Source
newspapers
Newspaper Articles (11)
1.December 17, 1912Atlanta GeorgianAtlanta, GA
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Article Text
BANK CRASH HITS GEORGIA INS. CO. KNOXVILLE, TENN., Dec. 17.-The Georgia Life Insurance Company, according to reports here, is on the bond of the Knoxville Banking and Trust Company to secure the $38,000 deposit of the state of Tennessee carried in the bank, which went into the hands of a receiver yesterday. Representatives of the company here are investigating. The Georgia Life Insurance Company has home offices in Macon. The state insurance department at the capitol has no record of the company's outside bonding business, those records being kept at the home office of the company. However, the records are available to the insurance department when called for.
2.December 17, 1912The Washington HeraldWashington, DC
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Article Text
To Arrest Bankers. Knoxville, Tenn., Dec. 16.-A warrant was issued this afternoon against W. H. Gass, president, and W. W. Willis, cashier, of the Knoxville Banking and Trust Company, charging them with receiving deposits after having knowledge that the bank was insolvent. The bank closed its doors to-day for voluntary Hquidation, John W. Green taking charge as receiver. Mr. Green states that he hopes to begin a distribution of the assets within sixty days. Assets are $1,500,000; liabilities, $1,100,000.
3.December 20, 1912The Columbia HeraldColumbia, TN
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Article Text
BANK OFFICERS ARE ARRESTED GASS AND WILLIAMS CHARGED WITH RECEIVING DEPOSITS KNOWING ITS CONDITION. KNOXVILLE, Tenn., Dec. 17.-A warrant was served today upon W. H. Gass, president, and W. W. Williams, cashier of the Knoxville Banking & Trust Company, charging them with having received deposits after having knowledge of the financial embarrassment of the bank. They waived examination and made bond for their appearance in criminal court. The warrant was a sequel to the closing of the doors of the bank this morning, for voluntary liquidation in a receivership.
STATE'S DEPOSIT IN THE DEFUNCT BANK Nashville, Jan. 6.-That the state had a large sum of money on deposit with the Knoxville Banking and Trust Company the defunet institution which went to the wall three weeks ago, involving a number of minor banks came to light here Wednesday night. The exact amount of the state'smeney on deposit with the bank is given at $37,750 by State TreasurerG. Tom Taylor, who claims however, that the commonwealth is amply protected by the personal bond of the directors, and by a bank in the sum of $100,000, and by a $40,000 bond executed by a Georgia surety company, the name of which he cannot recall. The capital stock of the bank was $150,000, and it is stated that under the law the state treasurer cannot deposit: with any banking institution a sum in excess of one fourth of its capital stock. The statement of Treasurer Tavlor showsthat he had placed in the bank almost the maximum sum alowed by statute. The president of the failed bank was W. H. Cass, brother-in-law of John C. Houk, of Knoxville, the well-known republican politician. In discussing the liability of the state to suffer financial loss by reason of the suspension of the bank, Treasurer Taylor said: **] tooklevery precaution against possible loss by requiring the personal bond of the directors in the amount of $100,000, and also an additional bond of $40,000 in a guaranty company. I have instructed Atty.-Gen. Cates to institute suit at once to recover the amount on deposit there in my name as state treasurer, and am confident that every cent of the amount will be forthcoming."
not be made public at this time that it
will be on file for the benefit of any
who may wish to go to the courthouse
and see it on behalf of their clients.
The final filing of the report was as follows:-
"The receiver begs leave to herein
submit to the court the report of Joel
Hunter & Co., expert accountants,
who have gone over the books and pa-
pers of the bank, and made detailed
statements of its financial conditions,
operations and affairs.
"This report, in the receiver's opin-
ion, discloses such a state of facts as to
render the directors of the Knoxville
Banking & Trust company liable to its
creditors and stockholders and he,
therefore, prays the court for instruc-
tions in the promises.
STATE BANK WAS INSOLVENT Knoxville Banking and Trust Company Operated as Insolvent Institution for Three Years. Knoxville, Feb. 18. -Further action was taken in the case of Joseph Knsffl et al. vs. Knoxville Banking & Trust company Monday, when an order for the report and petition of Receiver John W. Green was filed. and they were placed with the court. It is announced, however, that the report will
7.January 18, 1914The Salt Lake TribuneSalt Lake City, UT
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Article Text
PRESIDENT OF BANK FACES TERM IN PRISON KNOXVILLE, Tenn., Jan. 17.-William H. Gass, formerly president of the Knoxville Banking & Trust company, which went into the hands or a receiver December 16, 1912, was convicted in criminal court today of having accepted deposits when he had a good reason to believe the institution was insolvent. The verdict carried a prison sentence of from two to six years. Sentence has not been pronounced.
8.January 18, 1914Evening StarWashington, DC
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Article Text
CARRIES PRISON SENTENCE. Conviction of Former Bank Official Who Knowingly Caused Loss. KNOXVILLE, Tenn., January 17.William H. Gass, former president of the Knoxville Banking and Trust Company, which went into the hands of a receiver a year ago, was convicted in criminal court today of having accepted deposits when he had good reason to believe the institution was insolvent. The verdict carries a prison sentence of from two to six years. A motion for a new trial will be argued next Saturday. Gass is a former mayor of Knoxville. W. W. Willis, cashier, is also under indictment.
FORMER BANKER FOUND GUILTY William H. Gass, former Presiident of the Knoxville Banking & Trust Company, which went into the hands of a receiver December 16, 1912, was convicted in criminal court, at Knoxville Saturday of having accepted deposits when he knew or had good reason to believe the institution was insolvent.
# Directors Held Not Liable.
The effort of John W. Green, receiver, to recover from the directors of the defunct Knoxville Banking and Trust company for losses the bank sustained through alleged negligence and mismanagement failed before the supreme court.
The higher court's decision in the case, handed down here, affirmed Special Chancellor R. H. Sansom, who heard the case in Knox county, and who held that the directors were not liable. Green, as receiver, sued for an approximate sum of $150,000.
11.December 24, 1915The Dickson County HeraldDickson, TN
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Article Text
The effort of John W. Green. TBceiver. to recover from the directors of the defunct Knoxville Banking and Trust company for losses the bank sustained through alleged negligence and mismanagement failed before the supreme court. The higher court's decision in the case, handed down here, affirmed Special Chancellor R. H. Sansom, who heard the case in Knox county, and who held that the directors were not liable. Green, as receiver. sued for an approximate sum of $150,000.
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.
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Knoxville Banking & Trust Company · UID 87005271356
