Bank of Ooltewah (Ooltewah, TN)

Episode Information

Episode UID
87044571575
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
8704457 routing
Routing Number
87-0445
Start Date
March 17, 1931
Location
Ooltewah, Tennessee (35.075, -85.062)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
5dfb848e073481ba

Response Measures

None

Description

Closed by directors and taken into state supervision; insolvency and cashier shortages later litigated.

Events (2)
1. March 17, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors closed bank due to insolvency from large amount of slow loans, bills payable and steady withdrawals.
Newspaper Excerpt
Resolution closing the bank was adopted by its directors Tuesday ... bank stated that was close the bank on large amount slow loans and bills payable, together with steady withdrawal deposits.
Source
newspapers
2. March 21, 1931 Receivership
Newspaper Excerpt
BANK OF OOLTEWAH IN RECEIVER'S HAND ... State Superintendent Authorized by Chancellor to Take Over Affairs. Chancellor Garvin placed the affairs of Bank Ooltewah ... in the hands [of Robertson], state superintendent, for liquidation by court order.
Source
newspapers

Newspaper Articles (4)
1. March 21, 1931 Chattanooga Daily Times Chattanooga, TN

Article Text

BANK OF OOLTEWAH IN RECEIVER'S HAND State Superintendent Authorized by Chancellor to Take Over Affairs. Chancellor Garvin placed the affairs of Bank Ooltewah, which closed its in the hands Robertson, state superof for liquidation court order was required to make bond the bank's receiver. The order was entered on the petition Supt. Robertson, prepared in compliance the banking and filed court Under the banks takes over state bank when fails, but court order required give the superintendent authority of receiver. Resolution closing the bank was adopted by its directors Tuesday after the bank officers bank stated that was close the bank on large amount slow loans and bills payable, together with steady withdrawal deposits. was signed TalMarshall, viceHunter Furches, Tallent, Marshall, Furches and Green, directors. The statement of the bank officials, in the showed bank's assets total which was declared represent loans and discounts. balanced against liabilities of the capital individual posits, savings deposits, time certificates, and $39,650. Liquidation the bank will be started immediately by the state banking department, under Supt. Robertdirection, was stated.

2. November 4, 1931 Chattanooga Daily Times Chattanooga, TN

Article Text

FACES MORE CHARGES INVOLVING BANK Receiver Sues for $46,602 Shortage, Claimed. THREE OTHER WARRANTS CHARGE ACTS State Examiner Lists 29 Specific Instances of Alleged Violations of Laws Governing Banking. SOL MOYSES & co. Hunter Furches, former cashier of the defunct Bank of Ooltewah, became INSURANCE further involved in the tangled affairs that institution yesterday when US BEFORE INSURING SEE bill charging him with shortages totalJames Bldg. ing $46,602.71 filed in Phone 6-8188 court and three more bearing criminal charges were served on WE WRITE ALL KINDS OF him. INSURANCE AND GUARANThe chancery bill was filed by AttorTEE THE LOWEST PRICES neys Whitaker & Whitaker for D. Robertson, state banking charge of the bank since closed March 17. It charged with specific items of shortage and asked the court for an attachment 400 on acres of land held by Furches and his later to the Maywood Land company, in which they were declared to be principal stockholders. The warrants against Furches were sworn out before Squire Dennis by two depositors in the defunct bank. In D. Hollohan alleged that Cashier Furches deposit of $60 from him on March 16, The the day before the Bank of Ooltewah closed, when he knew the bank to be insolvent. John Wolfe swore out the Turkeys other warrants, charging Furches with accepting deposits $100 and when knew the bank was inAre solvent. Furches Makes $500 Bond in Each Case. Furches made bond of $500 in each case. The bonds were signed by Furches and his attorney, W. E. WilkerTom Carter and Ray Wolfe. Another warrant charging Furches with accepting deposit while he knew his bank insolvent sworn out by Wolfe last The bill filed against Furches by Supt. Robertson also named his wife, Mrs. Maye Furches, the Maywood Land company the Equitable Assurance defendants. The represented months of of affairs and was prepared and filed Whitaker, attorneys for bank superintendent. The specific items of shortage charged against Furches are as follows of in connection between the Bank of of in transaction between the Bank Ooltewah and the Winter Construction comThird Shortage of $3,343.70 the Bank of OolFourth transaction between the Ball heirs and Cashier Furches. March 16, the day before the bank closed, Cashier was alleged have charged the Hamilton National improperly. alleged authorized the bank to apply of the Bank of Ooltewah's funds his personal for held by the Hamilton National of in loans and discounts. of in individual posits and in certificates posit. March 17 Furches alleged to the cash the bank $168 and charged that the account of the Gordon Produce company March 14 Furches alleged to have the bank with and have reduced the the Bank of Ooltewah the amount. alleged to have been paid by the bank through cashier for total of $308 without any charge the made the customers whom they were is alleged to have issued checks $350 which were not charged to his account. alleged have issued his own the Hamilton National bank payable to interest personal loans and on have charged the amounts to the interest discount account of the Bank of of $110 in the savings account of Clyde Bailey. Claims Note for $574 Is Spurious. of $574 on Jan alleged to have when Furches withdrawn that amount and entered discount book as the on the loan and Chestnut. The loan loan of one Frank by note signed by the Frank and is alleged to be by which of $200 withdrawn March and charged to the account of the Knights Pythias lodge. Dec. 1930, for which paid note Rogers receipt. alleged he given the never entered. credit alleged that Feb. Walton paid $50 on Forney which no credit was entered. for of Nineteenththe deposit Ed in Additional of of Mrs. Fannie $420.20 in the deposit Howard. shortage of the deposit of Fisher. in shortage the deposit Charles in Knauff. shortage of deposit of Plott. in the shortage the deposit of John in of the deposit Poe. shortage the deposit of $265 shortage deposit of Rhine$900 in the hart. Items of and $500 charged $535, various times loans discounts bank does have for which the other purported signed for $800 to the credit passed Walnut overdraft.

3. January 10, 1933 Chattanooga Daily Times Chattanooga, TN

Article Text

OPINION OF GARVIN ACCUSES FURCHES Ooltewah Bank Receiver Gets Large Judgment. Chancellor Ruling Finds Accounts of Ex-Cashier $44,532.20 Short. Holding that the late Hunter Furches, who was cashier of the now defunct Bank of Ooltewah, was short in his accounts by $44,532.20, Chancellor W. B. Garvin yesterday awarded D. D. Robertson, state bank superintendent and receiver for the Ooltewah bank, a judgment for that amount against Mrs. May Furches, executrix of her husband's estate.

4. January 10, 1933 Chattanooga Daily Times Chattanooga, TN

Article Text

Holding that the late Hunter Furches, who was cashier of the now defunct Bank of Ooltewah, was short in his accounts by $44,532.20, Chancellor W. B. Garvin yesterday awarded D. D. Robertson, state bank superintendent and receiver for the Ooltewah bank, a judgment for that amount against Mrs. May Furches, executrix of her husband's estate. Handing down a memorandum opinion deciding the receiver's suit against the late Mr. Furches, Mrs. Furches, Mayewood Land company and Equitable Life Assurance company, Chancellor Garvin refused, however, to upset a real estate transaction which the receiver had challenged. Robertson, represented by Whitaker & Whitaker, filed a chancery bill on Nov. 3, 1931, charging Furches with a $46,602.71 shortage. The receiver further alleged that Furches organized the Mayewood Land company as a "family" corporation, to which he transferred title of some 400 acres of land he owned. The land later was transferred to the Equitable Life Assurance society as security for a debt Furches owed, the receiver's bill detailed. Supt. Robertson sought to have the property returned to the Furches estate and made part of the assets on which he could collect for the alleged shortage. Mr. Furches died during the process of the suit and Mrs. Furches was made executrix of his estate. The chancellor's opinion follows: "I understand it to be conceded at the bar that the evidence is insufficient to warrant the setting aside of the conveyance from Furches and wife to the Mayewood Land company on the deed of trust from the Mayewood Land company to Wilkerson, trustee, to secure the $16,000 of bonds and no attachment was issued for other property of Furches. Therefore the only relief complainant is entitled to is a judgment against the executrix for the amount of Furches' defalcation, which is $44,532.20, and judgment will be entered accordingly. "But the Equitable Life Assurance society is entitled to have its deed of trust foreclosed in accordance with the terms thereof. Before ordering a sale this cause will be referred for an instanter report as to how much is owing the Equitable on account of the balance of the loan with interest, and reasonable attorney fee; also for any"