The Indianapolis times., 1930-11-19
FINANCE Gar
OF TENNESSEE
LOSES THRONE
Results of Ia Years of
MeteorlC Rise Erased in
Caldwell DebacIe.

By United Prcss
NASHVILLE, Tenn, Nov. 19.-
Rogers Caldwell fought his way to
power in the financial, political and
sports fields of the old south in the
relatively brief span Of fourteen
years, and saw all his leadership
taken from him In less than two
months.
The collapse OF Caldwell g. Co.,
his investment banking house, had
repercussions extending even into
states where its influence was con-
ceived to be remote.
Caldwell was only 81, not long out
Of Vanderbilt university, when he
organized Caldwell 81 Co., one year
before the United States entered the
World war. The original capitaliza-
ton was 100000.
In the succeeding fourteen years,
it expanded to a capitalization OF
$4,000 900, with resources in excess
of $4,000, 900, becoming the out
standing such organization in the
south, with more than a dozen
branches and interests in an amaz-
ing variety Of large enterprises.
Selling His Race Stable
Prospering, Caldwell turned his
attention to politics, sports and So
ciety.
He successfully conducted the ~e-
cent Tennessee Democratic cam
paign.
His colors we're worn by more
than sixty thoroughbred race horses.
He and Mrs. Caldwell entertained
at palatial home, Brentwood
house, on a 300-acre estate.
But business depression affected
his resources, so that now ne Is
selling his stable at auction, Dec. 2,
renouncing the world Of finance TO
become a farmer, and warning the
country that I'VE must get back TO
fundamentals.
In mid-September state bank
examination Of the Bank OF Ten
nessee, Caldwell subsidiary, required
deposit of $3,84o, 900 in securities to
cover liabilities. The attorney
general of Tennessee now announces
the entire $3,840,000 is missing.
4 Run Started on Banks
Something over a month later.
Caldwell 81 Co. itself reached such a
statuts that a committee Of Nash
VILE bankers was appointed with ap-
proval of Eugene r. Black, governor
of the sixth federal reserve bank,
Atlanta, to administer its affairs.
The following week the Bank OF
Tennessee went into receiVership,
showing cash on hand $S2.50, book
assets" $13,969, ,5O0.50; liabilities, the
same. Cash on hand had been listed
in nid-September at $l,OoO,0oO.
A few DAYS later the Holston-
Union National bank of Knoxville,
in which Caldwell owned minority
interest, closed after with heavy
Withdrawals. Its last statement
showed deposits of $12,579,123 and
resources of $16,300,000.
simultaneously, a considerable
run started on the Liberty Bank and
Trust Company of Nashville, which
closed two days later to liquidate.
The Liberty bank was relatively
small, listing assets of 100000,
paid in capital of 100000.
Handles Many Millions
A federal receivership for Cald-
we'll g. Co. was ordered by Judge
John j. Gore. Two co-receivers,
Lee Douglas and Rutledge Smith,
we're appointed under bond of
$4,000 each, and ordered tc file
an inventory.
Bank closings occurred after the
Caldwell crash in the nearby states
of Kentucky and Arkansas. Public
officials in Arkansas announced the
developments were due primarily
to "hysteria," while in Kentucky
rumors of Caldwell control were de-
MED by bank officials.
1t is estimated that in the four
teen years before it went into re-
ceivership, Caldwell a. Co. handled
between $500, 100000 and 100000 900