Citizens Bank (Lexington, TN)

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M'CONNELL IN CHARGE OF LEXINGTON BANK

Chattanooga Times Special. NASHVILLE, Tenn., Sept. 20.—S. S. McConnell, state superintendent of banks, returned Saturday from Lexington, where he was called by the closing of the Citizens bank. Mr. McConnell, after conferring with his examiners, who have been at the bank several days, filed application for receivership in the chancery court and was named receiver, as provided by the banking laws. He announced Saturday that he will name an agent to act for the department within the next few days. The bank was closed at the request of directors. A slow run developed after the death of the bank's head, Henry Graper, a few days ago.

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Bank Receiver Is Appointed

T. J. Taylor, of the first National Bank, Jackson, Tenn., has been appointed Receiver of the defunct Citizens Bank of Lexington, who will have two years in which to wind up the Bank's business, and Mr. Taylor has taken charge.

The failure of the Bank of Lexington has caused much excitement and has affected several of the citizens of Decatur County.—Decatur Herald.

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COUNTY SEEKS MONEY LOANED GRAPER'S BANK

Would Collect $350,000 From 90 and 9 Citizens.

MANY TRANSFER PROPERTY

County Judge Authorized to Employ Attorneys, Bring Suit and Take Such Action as May Be Necessary to Protect Funds.

LEXINGTON, Tenn., Oct. 11.—With Henderson County holding the bag for $350,000 of highway funds, loaned to the now defunct Citizens Bank of Lexington, and Henry E. Graper, lately deceased, the county court has become alarmed at the action of certain of the county's most prominent citizens who were on the bond of the bank and are now transferring their property.

At a meeting of the court this week, a resolution was passed authorizing the county judge to employ attorneys and bring suit and take such action as may be necessary to protect the county's funds.

It is understood that there are ninety-nine of the county's most prominent citizens on the bond and that since the bank failed and the death of Mr. Graper, many of these citizens have been transferring their property to their wives and children. It is understood that the county will bring suit to set aside these transfers and will also ask for an injunction to prevent further transfers. The county court is determined to collect the money and will take every legal step to do so. The county's funds were placed in the bank by the highway commission and the bank gave a bond signed by ninety-nine citizens to protect the county.