James Erwin Caldwell (Nashville, TN)

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Photo of James E. Caldwell (date unknown)

James Erwin Caldwell (September 18, 1854 – September 26, 1944)

Biography

James Erwin Caldwell was born in Memphis, Tennessee, on September 18, 1854. His parents were Alexander Samuel Caldwell (1818-1859) and Matilda Watson (Sheppard) Caldwell (1823-1904). Alexander Caldwell was an Irish immigrant and became a private banker in Memphis with the firm Woods, Yeatman & Company. Soon after his birth, and due to the declining health of his father, James moved with the family to their 2,000 acre cotton plantation in Leflore County, Mississippi. At the age of 4, his father died leaving his mother to raise the 7 children. James had his early education given at home by his mother. After the end of the Civil War, in 1866, the family moved to Oxford, Mississippi where James attended a private school run by a Mr. Gilmer. Soon the family had moved back to Memphis where James attended public school. In 1867, the family moved to Franklin, Tennessee, where James enrolled in a private school.

James moved from the family home in Franklin to Nashville in September, 1867, to attend the University of Nashville, which was then a military school. He tested and was admitted, but was not interested in the military education offered, so he instead enrolled in a business school called Bryant & Stratton Business College. He had $75 left to him from a bequeathment and this money allowed him to survive. Soon after graduating from the 2 month school, he took his first job as a bookkeeper at a local grocery wholesaler for $40 a month. Early in 1871 James was hired as Individual Bookkeeper for the First National Bank of Nashville, charter 150, at $125 a month, but resigned soon after due to perceived irregularities with the bank. He then re-entered the grocery business.

On October 12, 1875, he married Annie May Winston (1856-1939), the daughter of a local physician. Late in 1875, his grocery employer went bankrupt. He secured new employment, but took ill and was fired. This moment motivated James for the rest of his life and he promised himself that he would never again work for another. After getting well, he purchased an interest in a fire insurance business with a man named W. C. Nelson, and named the business Nelson & Caldwell. This business would operate out of the old Bank of Tennessee building, on the same location James would later build his new bank. Around this time, he was also elected to the Board of Directors for the 4th National Bank of Nashville, charter 1669. James would stay in the insurance business for another 20 years.

In 1887 he built a small rail line from Nashville south to a new city park. This rail featured a steam powered engine and connected to Glendale Park. You can read more about the park by clicking the link at the bottom of the bio. James sold the rail line in 1889. He then bought a controlling interest in the Cumberland Telephone and Telegraph Company. The telephone was in its' infancy and James thought that this invention had a marvelous future. The company, however, needed help. It was a rundown business on the verge of bankruptcy when James was elected President. He proceeded to build the company, invest in new lines, and turned it into a regional powerhouse. In early 1912, Cumberland Telephone & Telegraph Company was sold to the American Telephone & Telegraph Company and James became a wealthy man.

In the spring of 1912, Frank Overton Watts, President of the 1st National Bank of Nashville accepted a position with the 3rd National Bank of St. Louis, Missouri, charter 170. James owned shares of stock in both 1st National and 4th National, and he was approached by Frank about merging the two banks and leading this new bank. Initially he was hesitant, as he remembered the bank panics of 1873 and 1893, as well as the difficulty he had raising funds for his telephone company. He was eventually convinced, and on July 1, 1912, the banks merged and James was elected President of the 4th & 1st National Bank of Nashville, charter 1669. Later, in 1927, the bank would retake charter 150. The bank was initially located in the Stahlman Building, but in 1917 moved into the new bank building on the northeast corner of 4th and Union Streets that had been built to showcase this large new bank.

James remained President of 4th & 1st National Bank until November, 1930. His son, Rogers Clark Caldwell, opened and ran an investment bank called Caldwell & Company. It was located directly across the street from his dad's bank. Rogers borrowed money from his dad's bank to help finance his growing business, which was operated similar to a pyramid scheme, in a sense. Rogers used bonds as collateral to purchase more bonds, and would buy interests in banks to get access to the money located therein. He then would use bank money to finance more bond purchases. Rogers was thought a financial wizard until the Great Depression hit in late 1929. He was hopelessly extended by then and the value of his securities plummeted. He could no longer pay the interest on his debt, and the banks were left with worthless collateral. His empire collapsed, and many banks went into receivership as a result. The 4th & 1st National Bank of Nashville was one of those banks.

In November 1930, 4th & 1st National Bank of Nashville merged with the American National Bank of Nashville, charter 3032. James Caldwell left the bank and opened up a private banking concern called James E Caldwell and Sons. He was 76 years old, and no doubt dreamed of retirement. The lawsuits concerning his old bank would extend past his lifetime, and one would end up before the Supreme Court.

James organized the Nashville Stock Yards in 1914 and remained President until his death. He was also a Trustee of the George Peabody College in Nashville, later a part of Vanderbilt University. James died of congestive heart failure at age 90 in his family home, named Longview, on September 26, 1944. He is buried in Mt. Olivet cemetery, in Nashville.

Bank Officer Summary

During his banking career, James E. Caldwell was involved with the following bank(s):

  • FNB/Fourth and First NB, Nashville, TN (Charter 150): President 1927-1930
$5 1902 Plain Back bank note with printed signatures of W.P Smith, Cashier and James E. Caldwell, President. Courtesy Heritage Auctions, www.ha.com


Sources

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