First National Bank (Riverbank, CA)

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RIVERBANK

Cal., Dec. The First National Bank here did open for business today bank has been in tion for about years, and cause its failure had not been learned noon today. President Cuneo, living Modesto. he believed depositors would be fully protected. Business was transacted as Saturday The closing is not expected affect other banks in the vicinity.

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BANK RECE!VER AT RIVERBANK NAMED

(Ry United Press) SAN FRANCISCO, Dec. 29 Announcement of the appointment of Chas. A. LaBree as receiver of the First National bank of Riverbank was received here by T. E. Harris, national examiner, closed the institution recently when a shortage of $14,000 was discovered after C. L. Flack, cashier, disappeared. Flack is still at large.

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Suit Filed Against Banker of Riverbank

United Press) -Sult against L. Flack missing Riverbank bank the First National Bank of Rivers bank, claiming $3500 for back salary and $2500 promis sory note was on file here today The Riverbank financial institu tion was closed by the National Bank examiner when $14.000 found gone from the bank's fun Flack was accused of misapplica tion of the money and is DOV sought for arrest,

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RIVERBANK BANK RECEIVER NAMED

SAN FRANCISCO. Dec 29 (LP)Announcement of the appointment of Charles A. Labree as receiver of the First National Bank of River bank was received here today by E. Harris national bank examiner who closed the institution a few days ago. Labree was named by the comp troller of currency A shortage of $14,000 in the bank's accounts was found by Harris after L. Flack, director disappeared Harris charged Flack with misap plication of the money, but Flack still is at large.

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RIVERBANK BANK RECEIVER SUES PROMISSORY NOTE

Charles La receiver of the First National Bank of Rivertoday suit to foreclose on Kruschke on October 1925, note and the plaintiff claims it La interest cent and attorney fees. Hawkins & Hawkins of Modesto are attorneys for the receiver.

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RIVERBANK BANK RECEIVER SUES ON PROMISSORY NOTE

Charles La Bree, of the First National Bank of Rivertoday suit foreclose on note for $2500. due and the plaintiff due for La also interest at per cent and fees. Hawkins of Modesto are attorneys for the receiver.

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BANK RECEIVER SUES ON PROMISSORY NOTE

Charles A. Labree, receiver of the First National Bank of Riverbank, Tuesday commenced a suit to foreclose on a note given by H. O. Kruschke on October 27, 1925, for $2500. The note was due in ninety days and the plaintiff claims it is now due for payment. LaBree also asks interest at 8 per cent and $250 attorney fees. Hawkins & Hawkins of Modesto are attorneys for the receiver.Stockton Record.

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RIVERBANK BANK RECEIVER BRINGS ACTION ON NOTE

Suits Seek To Collect Promis. sory Notes For $4000 Given Flack

Charles A. LaBree. receiver of the First National Bank of Riverbank which was wrecked by the frenzied (inancial operations of L. Flack last December. brought two suits in court today to collect $4,000 on promissory notes alleged delivered to Flack and later turned over by him to the Riverbank bank. The defendants are Eugene P. Bessac. publisher of the Riverbank News. and Enes Bechis of Oakdale. According to the actions, Bessac delivered promissory note for $1,500 to Flack on October 31. while Bechis executed note for $2,500 the same day in favor of the miss. chairman. Both notes were endorsed bad and frequent demands that they be paid have gone unbeeded. Attorney fees amounting to $500 asked through the law firm of Hawkins and Hawkins. Faced with a overdraft of $15,000 and the disappearance of Mack the Riverbank institution failed to open Its doors for in the latter part of December LaBree was ap

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BANK RECEIVER SUES ON NOTES

MODESTO OFFICE STOCKTON $4000 alleged due on promissory notes executed in favor of C. Flack. missing director of the First National Bank of Riverbank, and indorsed by him to that institution, asked filed in the Superior esterday Charles La Bree, as receiver the Eugene Bessac is alleged in of the have execyted Flack's favor October 31, $1500, while the other complaint alleges that Enos executed note for $2500 in Flack's favor on the same date.

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Two Suits Brought By Bank Receiver

Charles A. LaBree, receiver of The First National Bank of Riverbank, which was wrecked by the frenzied financial operations of C. L. Flack last December, brought two suits in superior court today to collect $4,000 on promissory notes alleged delivered to Flack and later turned over by him to the Riverbank bank. The defendants are Eugene P. Bessac, publisher of the Riverbank News, and Enos Bechis of Oakdale. According to the actions, Bessac delivered a promissory note for $1,500 to Flack on October 31, while Bechis executed a note for $2,500 on the same day in favor of the missing chairman. Both notes were endorsed and turned over to the bank, it is said, and frequent demands that they be paid have gone unheeded. Attorney fees amounting to $500 are asked through the law firm of Hawkins and Hawkins. Faced with an overdraft of $15,000 and the disappearance of Flack, the Riverbank institution failed to open its doors for business in the latter part of December. LaBree was appointed receiver. Modesto NewsHerald.

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REPORT GIVEN BY DEFUNCT BANK ON ESTATE ON FLACK

Financial Condition Uncertain, Says Cuneo; Suggests Creditors Unite

RIVERBANK. March 12.-A preliminary report has just been sent out by John C. Cuneo, receiver for L. Flack, to all creditors who have filed claims. Flack has been missing since December, at which time First National Bank of Riverbank was closed, due to his manipulation of bank funds. It is impossible as yet, according to Cuneo's report, to gain an ac. curate estimate of the status of the estate, but it is quite apparent that all of the properties were used the utmost limit to borrow money upon. The various properties and interests which have been located and investigated to date by the re. ceiver represent gross value of approximately $240,000 The claims filed to date approximate $270,000. but many of these claims are and include liabilities which might later develop Some claims, Receiver Cuneo also states, offset other claims Among these is the claim of the National Bank of Riverbank which totals $61,019.63. This includes assessment Flack's 131 shares of bank stock, with in terest. amounting $13,800: also Flack's contingent liability as endorser of various notes. which total $13,680. The bank receiver. Chas. LaBree, is now suing the signers of these notes for collection Cuneo suggests in his report to creditors that if an organization of be effect. ed. it would be very desirable, for the value of the properties involved largely in their operation. are some good possibilities if the interests are rightly operated. he asserts.

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REPORT GIVEN DEFUNCT BANK ON ESTATE ON FLACK

Financial Condition Uncertain, Says Cuneo; Suggests Creditors Unite liminary report has just been sent out by John C. Cunce, receiver for C. Flack, to all ureditors who have filed claims. Flack has been missing since December. at which time the First National Bank of Riverbank WHS closed, due to his manipulation of bank funds. It Impossible as yet, according to Cupeo's report, to gain an no. curate estimate of the status of the estate, but 11 is quite apparent that all the properties were used the utmost limit to borrow money upon. The various properties and interests which have been located and investigated to date by the TE celver represent gross value of approximately $240,000. The claims filed to date approximate $270,000, but many of these claims are inplications and Include Liabilities which might possibly later Some claims, Receiver develop. other claims. Among these is the claim of the First National Bank of Riverbank which totals $61,019.03. This Includes assessment of Flack's 131 shares of bank stock, with inferent, amounting to $13,800; also Flack's contingent Hability ILS en dorser of various notes. which total $13,080. The bank receiver. Chas. LaBree. is now suing the signers of these notes for enllection Caneo suggests in his report to the creditors that an organizaUdn of the creditors could be effected, it would be very desirable. for the value of the properties In. There are some good pos. wibilities if the interests are rightly operated. he asserts.

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Bank Receiver Sues To Collect On Note

Charles LaBree, as receiver the defunct First National Bank Riverbank, yesterday filed suit the superior court collect sums approximating $2500 from Lorenzo Zelillo, alleged have ben loaned by Flack. missing the October 1925.

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Mae Murray Wedded To Picture Actor

LOS ANGELES. June the Widow" Charles LaBrec, as receiver Murray. princess today, defunct First National Bank of Prince Divani the Riverbank, yesterday filed suit State of Georgia, Asia. the superior court collect sums couple married Sunday approximating $2500 from Veverly Pola who alleged to bare ben loaned brought the pair for the noto by first time her home three weeks Flack, the Rudolph of the bank. Valentino best man, October

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DEPOSITORS GET DIVIDEND

Depositors of the First National Bank of Riverbank, closed last December by the default of C. L. Flack, chairman, will be paid a dividend of 30 per cent, beginning next Monday, August 9th, Charles A. LeBree, reThe 30 per cent dividend will total $20,000, 50 per cent of which will go to local depositors, the remaining 50 per cent to out-of-town depositors This is an exceptionally satisfacSory record, as tew banks pay more than 10 per cent as a first dividend and this is seldom paid under a year from the date of the bank failure. Receiver LaBree states that he has prompt. While no definite information is available at the present time, it is understood that another bank will be established here the coming fall or winter.

-Riverbank News.

SMOKING IS TABOO

By order of District Forester S. B. Show the Stanislaus National Forest is closed to the favorite pastime of smoking. This order became efffective applyin in the local reserve Thursday. It is permissible to smoke at habitations and designated public camp grounds, but elsewhere the use of the fragrant weed of peace and contentment is

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Bank Receiver Sues to Obtain Deed to Husband Resources

MODESTO Dec. 2.-Charles A. La Bree, receiver of the defunct First National Bank of Riverbank. has petitioned the Superior Court for to secure the reconveyance of deed of trust on StanIslaus in order to protect bank. the the bank held the deed of trust security the property first mortgage of held by De De according to the petitioner. is about to the which the bank lose any chance recov ery of the amount of its

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RIVERBANK BANK RECEIVER LOSES ON NOTE ACTION

Echoes of Flack's Manipulations Aired In Technical Case Tried Here

Echoes of the manipulations of C. L. Flack, missing president the Riverbank First National bank, were heard in Superior Judge L. W. Fulkerth's court when a jury decided against Charles LaBree, receiver of the defunct institution, in his suit to collect $2,500 on a note. The note was executed by J. W Steele, Riverbank postmaster, and turned over to Flack as an "accommodation note," LaBree sought to collect on grounds that the note was given by Steele for the accommodation of Flack held big interests. On the strength of the note, LaBree claims, Flack credited $2,500 to the cannery's account and that therefore the consideration was a credit given the cannery for full amount of the note and as a result, Steele was liable. For "Paper Assets" Steele contended that he gave the note on the representation of Flack that it was to be used only for the purpose of strengthening the "paper assets" of the bank and as mere accommodation, and as a result, there was no consideration for the note. He denied knowledge that it was to be used by Flack to advance more money to the can nery. It was the understanding that the note would never be paid, Steele testified. LaBree sought to show that Flack used the note to misrepresent the actual assets of the bank. During the trial he sought to show that n-payment of the note by Steele would work to the detriment of the creditors. It was one of the most technical cases ever tried before Judge Fulkerth. he said. one in which nice points of law never heretofore brought up in a Stanislaus court were It is understood that LaBree's attorney will ask for new trial. and if this 1s denied, appeal is expected to be taken. Steele was represented by Attorney T. B. Scott