Articles document the failure/closing of the Dunbar State Bank, takeover by the Guaranty Fund Commission, appointment of a receiver, and subsequent litigation and criminal prosecutions. No article describes a depositor run; the bank was taken over (government/commission action) and remained closed with a receiver and later court actions. Dates approximated from 1927 reporting of the failure and subsequent 1928–1931 litigation.
Events (3)
1.May 1, 1927*Receivership
Newspaper Excerpt
Receivers for the Dunbar State bank filed three suits ... Receiver for the Dunbar State Bank ... brought suit Saturday against the Grain Company
Source
newspapers
2.May 1, 1927*Suspension
Cause
Government Action
Cause Details
Bank was taken over by the Guaranty Fund Commission after insolvency; president Thomas Murray absconded and later convicted; receiver appointed and bank closed.
Newspaper Excerpt
spectacular failure the Dunbar State Bank ... suits filed by Receiver
Source
newspapers
3.April 26, 1928Other
Newspaper Excerpt
Omaha Bank Sues Dunbar Institution ... since the Dunbar State Bank was taken over by the Guaranty Fund Commission more than year ago. The case was continued to May 8 to permit introduction of additional bank records.
Source
newspapers
Newspaper Articles (14)
1.May 15, 1927Nebraska City News PressNebraska City, NE
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LITIGATION IN FAILURES
State Bank Receiver gins Action Against Grain Company
The first of what is predicted to be long list civil actions arising from the spectacular failure the Dunbar State Bank and the financial troubles of the Dunbar Grain Company, interlocking concerns insofar as the bank's failure is concerned, was filed in district court Saturday Receiver for the Dunbar State Bank whose president. Thomas Murray, is a much-sought fugitive from justice in dozen states and two or three foreign countries. brought suit Saturday against the Grain Company on three counts. The Bank alleges that the Grain Company, whose manager Burton Gorton faces prosecution on charges. embezzlement amounting to more than had an overdraft of $1,695.36 at the time of the bank's closing, and owes two notes, past due, one for $4,000 and another for $2,500. Stockholders of the grain company are substantial farmers living in and near Dunbar but the summons in the case is directed only against the Dunbar Grain Company.
2.May 17, 1927Beatrice Daily SunBeatrice, NE
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DUNBAR BANK RECEIVERS FILE THREE
Nebraska City, Nebr., May for the Dunbar States bank filed three suits district court here against the bank the Dunbar Grain company. Thomas Murray, former president of both concerns. fugitive from justice. Burton Gorton,. his held district court charge of embezzling His trial for September 19. One the claim that there an overdraft of against the grain concern held by the bank. The others seek to recover held by the bank, one for and the other for 500.
3.May 17, 1927Star-HeraldScottsbluff, NE
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Dunbar Bank Receiver Sues to Recover Upon Company's Overdraft
Nebraska City, May 16 (P)-Receivers for the Dunbar State bank filed three suits in district court here against the bank and the Dunbar Grain company Thomas Murray, former president of both concerns, is fugitive from justice. Burton Gorton, his son-in-law. is held in district court on a charge of embezzling $50,000 His trial is set for Sept. 19. One of the suits claim that there is an overdraft of $1,695 against the grain concern held by the bank. The others seek to recover on notes held by the bank. one for $4,000 and the other for $2,500.
Greeensboro, N. C.-Rum runners in North Carolina have been using preaechers licenses on their cars. The licenses give them the right of way in traffic.
Wm. Penn-5 cents Good Cigar
4.September 21, 1927Lincoln Journal StarLincoln, NE
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BY
Witnesses in Trial of Dunbar Banker Testify He Speculated Thru Nebraska City Firm. NEBRASKA CITY. Neb., Sept. which used when he was speculating the board of trade were Identified by witnesses this morning in the trial of Burton Gorton. Dunbar. who facing charges of bezzling more than connection with the Dunbar State defunct. Checks the Duff Grain com pany of Nebraska City, Gorton's were identified witnesses teath fied that had specuated on the board trade thru the NeCity grain firm. Concerning the reported confession Gorton the Dunbar Grain board of directors, which of the board, told the court of he and the defendant had some time the Borcherding said he asked Gorton. grain company broke The bank busted and Tom Murray missing president the Dunbar State bank) gone. We all bad Tom have been unlucky. gone, going "Gorton he wanted to make good,' Borcherding continued. said he was willing turn and willing devote the rest of life straightening out The state to complete its case early Wednesday afternoon. The defense not pected to take up much time and thought the jury would given case for deliberation Wednesday night.
5.April 26, 1928Nebraska Daily News-PressNebraska City, NE
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Omaha Bank Sues Dunbar Institution
Trial of the suit of the United States National Bank of Omaha against the Dunbar State Bank to collect $5,000 on a note which was sold to the Omaha institution by Thomas Murray, former head of the Dunbar bank. was started Wednesday before District Judge James T. Begley. The Dunbar bank, Murray and Henry Kasbohm were named defendants in the original petition Kasbohm. however, was dismissed as one of the defendants by Judge Begley. He alleged that if his signature were on the note in question. it was forgery. The suit is one of a number that have been instituted since the Dunbar State Bank was taken over by the Guaranty Fund Commission more than year ago. The case was continued to May 8 to premit introduction of additional bank records.
6.August 26, 1928Nebraska Daily News-PressNebraska City, NE
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MURRAY ASKS he informs the Although court that there is no cash in his hands available for the immediate payment of any claims which be allowmay at this time, Dempster. of the Guaranty Fund Commission, and receiver for the deDunbar State Bank, says he funct knows of "no defense" against total of 212 claims of creditors. This information contained in Dempster's report filed in District Court late Saturday, signed by Dempster and sworn to before M. L. Ralston, notary public.
7.September 2, 1928Nebraska Daily News-PressNebraska City, NE
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BEGLEY CLAIMS
Contested Cases Will be Heard at Later Session total of 212 claims of creditors of the defunct Dunbar State Bank was allowed Saturday in District Court by Judge James Begley. These were the claims listed "valid" in the report filed in District Court week ago by Dempster of the Guaranty Fund Commission, and receiver for the bank. Judge Begley entered judgment in favor of the 212 claimants against the Guaranty Fund Commission In the matter of numerous other claims which Receiver Dempster says subject to valid defense, Judge Begley ordered the claimants eto fil petitions in intervention within 20 days, and gave the ceiver until October to answer. Hearing Set for Oct. 30
Hearing on the contested claims was set for 10 October 30. Included among these claims is the of Otoe County. Thomas Murray, former president of the closed bank, who claims total of $15,466.34 as balance due upon checking accounts, has assigned to another party who will seek payment in court contest.
Saturday's hearing on the bank receiver's report attracted number of persons to the court room. Attorneys were conspicuous, nine of them interested in the case.
Dempster Present
Among others present was E. Dempster of Geneva, Neb., receiver for the bank and member of the Guaranty Fund Commission Asked by representative the creditors of the closed bank would receive 100 cents on the lar. Mr. Dempster stated that he could not make any prediction. "Payment will be according to liquidation of assets of the bank," was one comment he made. Another comment was that "the amount of recovery of depositors will depend on the future of the (Turn to Page 2; Col. Please)
8.December 12, 1928Beatrice Daily SunBeatrice, NE
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Banker Taken From Prison To Testify
Nebraska City, Nebr., Dec. 12 Murray convicted president of the Dunbar State bank, was brought here LILA LEE from state prison yesterday BENNETT to take the witness stand in his case against the state guaranty commission for $15,000 which he claims was on deposit in the bank at the time was taken over by the commission.
Murray tetified the money was held in trust by him to protect Henry Kashohm, the man whose testimony had largely to do with his conviction on forgery charges was for the forgery of the Kasbohm note that Murray was found guilty. This note was sold to the Omaha National bank by Murray, who testified the money placed to his credit in the Dunbar State bank as trustee: Murray is being used as witness in many of the contested claims of bank depositors and will probably remain here during the three day session of court.
9.February 27, 1929Lincoln Journal StarLincoln, NE
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COMMISSION TAKES APPEAL
Nearly $40,000 in Judg ments Against Guaranty Fund. The guaranty fund commission appealed Wednesday supreme court from judgment of Judge Begley that John T. Mead is entitled to $1700 on certificates of deposit in the Dunbar State bank. The receiver resisted on the ground that the claim was filed out of Mead said that he got claim blank from the man in charge, and this was found filed in the Appeal also taken from a finding that held the fund liable for $10,000 additional deposits in the Dunbar These have to do with trust funds that were deposited in the name of Thomas Murray, special and Thomas Murray, trustee, the benefit of the First of Omaha in the sum of $5,000 and in favor of Henry Seyfert, James Murray, Earl Seyfert and H. S. Westbrook in similar There was still another $5,000 claim that was pressed, but the court said the evidence was not sufficient determine the ownership. The receiver claimed these really deposits for the benefit of Murray, who was president, and who later absconded, only to be returned. He said Murray was not entitled to judgment since he owed the bank $40,000. Murray claimed no right in the funds, and the court said that they could not offset against his debt the bank. Appeal was also from an allowance of $28,023 in favor of L. Kelly, county treasurer, on deposit in the same bank. The recelver claimed this was in excess of the lawful amount the treasurer was permitted to deposit, and that the amount is otherwise secured by surety bond that constituted collateral agreement that leases the guaranty fund from
10.December 2, 1929Kearney HubKearney, NE
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OFFICIAL AWAITS HEARING
Westbrook Is Arraigned In the County Court.
City, Neb., Dec. not guilty the charge deposit when he bank was insolvent. HenWestbrook, vice president of the failed Dunbar State bank, arraigned in county court Saturday and today awaited preliminary hearing Thursday. Friends furnished the $2,000 ball for him after County Attorney Heinke had objected the suggestion that Westbrook permitted to home on his own recognizance. William H. Pitzer appeared Westbrook's attorney at the The banker's prosecution comes more than years after the closing the Dunbar bank. Thomas president, and Burton Gordon, Murray's are now serving in the state penitentiary charges growing out of the bank crash.
11.April 11, 1930Lincoln Journal StarLincoln, NE
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COURT DECLINES TO RULE UPON MATTER
Says Only Moot Question Remains About Bank Receiver's Right to Appeal. An order was entered by the supreme court Friday affirming the action of the district court of Otoe county in ordering the receiver of the Dunbar State bank to pay to Henry G. Seyfer, Earl Seyfer, H. S. Westbrook and James Murray $784.70 out of the assets of the bank. The four had filed claims of $4,000, and the remainder of the sum was ordered paid out of the guaranty fund. The claims represented bonafide deposits and the court says the holders of the certificates are entitled to the 22 percent dividend declared, or $784.70. Another controversy between the same parties in which a $5,000 deposit was the stake was dismissed. The court had once before sustained the lower court in ordering the 22 percent dividend paid and giving judgment against the guaranty fund for the remainder. Before the transcript reached the supreme court the claimants asked the district court for premptory order to pay the dividend of $1,100 on the ground that the receiver had failed to supersede the judgment and had not obtained permission to appeal. The district court sustained the motion, and the receiver thereupon perfected a second appeal. In supreme court the claimants renewed the motion to dismiss because the receiver had not obtained permission to appeal, but this was overruled. The court says that the first appeal having been decided, there remains nothing but the moot question of whether the receiver must get permission of the lower court to appeal, and moot questions will not be determined by it. The former order overruling the motion is therefore vacated and the second appeal dismissed at the cost of the receiver.
12.April 11, 1930Lincoln Journal StarLincoln, NE
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COURT DECLINES TO RULE UPON MATTER
Says Only Moot Question Remains About Bank Receiver's Right to Appeal An order was entered by the supreme court Friday affirming the action of the district court of Otoe county in ordering the receiver of the Dunbar State bank to pay to Henry G. Seyfer, Earl Seyfer, H. S. Westbrook and James Murray $784.70 out of the assets of the bank. The four had filed claims of $4,000, and the remainder of the sum was ordered paid out of the guaranty fund. The claims represented bonafide deposits and the court says the holders of the certificates are entitled to the 22 percent dividend declared, or $784.70. Another controversy between the same parties in which a $5,000 deposit was the stake was dismissed. The court had once before sustained the lower court in ordering the 22 percent dividend paid and giving judgment against the guaranty fund for the remainder. Before the transcript reached the supreme court the claimants asked the district court for a premptory order to pay the dividend of $1,100 on the ground that the receiver had failed to supersede the judgment and had not obtained permission to appeal. The district court sustained the motion, and the receiver thereupon perfected second appeal. In supreme court the claimants renewed the motion to dismiss because the receiver had not obtained permission to appeal, but this was overruled.
The court says that the first appeal having been decided, there remains nothing but the moot question of whether the receiver must get permission of the lower court to appeal, and moot questions will not be determined by it. The former order overruling the motion therefore vacated and the second appeal dismissed at the cost of the receiver.
13.July 10, 1931Lincoln Journal StarLincoln, NE
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COURT CAN'T GIVE RELIEF
Man and Wife Paid Same Debt Twice and All Own Fault.
Monto Lowrey and his wife were denied recovery by the supreme court Friday from the receiver of the Dunbar State bank for the $2,652 they paid him on a note he held. This was the second time they paid the debt. Te first note they signed was sold by the bank to New York bank. At the time they paid the money to the receiver there was some discussion as to their liability on the other note, but the Lowreys claimed that the receiver told them and they claimed in the lawsuit that it was a forgery. Later they were compelled in suit to pay the note held by the eastern bank. The receiver said he never told them it was forgery. The court says they are estopped from asking relief, and invokes the old rule of law that where one of two innocent parties must suffer then the one whose oversight or neglect has made the occurrence of the event possible must suffer rather than the one who is entirely without blame. The two notes were in fact duplicates, given for the same debt, and the court says that caution would have required that before paying the note held by the receiver they should have had the other one forwarded for their examination to ascertain if it were forged.
14.July 10, 1931Lincoln Journal StarLincoln, NE
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COURT CAN'T GIVE RELIEF
Man and Wife Paid Same Debt Twice and All Own Fault.
Monto Lowrey and his wife were 85 denied recovery by the supreme court Friday from the receiver of the Dunbar State bank for the $2,652 they paid him on note he held. This was the second time Smart modes they paid the debt. Te first note fashionable summer they signed was sold by the bank colortones! to New York bank. At the time they paid the money to the receiver there was some discussion as to their liability on the other 300 MORE SMART BERETS AT LESS 20% note, but the Lowreys claimed that the receiver told them and they claimed in the lawsuit that it was (See Window) GOLD'S-Third Floor a forgery. Later they were compelled in a suit to pay the note held by the eastern bank. The reJuly Clearance of Women's ceiver said he never told them it was forgery. The court says they are estopped from asking relief, and invokes the old rule of law that where one of Summer Footwear two innocent parties must suffer then the one whose oversight or neglect has made the occurrence of the event possible must suffer rather than the one who is entirely without blame. The two notes Formerly 6.95 to 10.50 were in fact duplicates, given for the same debt, and the court says that caution would have required Not all sizes in any that before paying the note held by the receiver they should have style but many the other one forwarded for styles in most sizes their examination to ascertain if Ties Pumps! it were forged.
