11589. First National Bank (Elgin, NE)

View Charter #5440 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
5440
Charter Number
5440
Start Date
November 1, 1930*
Location
Elgin, Nebraska (41.983, -98.084)

Metadata

Model
gpt-5-mini
Short Digest
c596494e4d90f59e

Response Measures

Full suspension, Books examined

Other: Bank was closed by the board and placed in the hands of a national bank examiner and a receiver (receivership/liquidation undertaken; partial dividend payments to depositors made during liquidation).

Receivership Details

Depositor recovery rate
81.0%
Date receivership started
1930-11-03
Date receivership terminated
1936-02-15
Share of assets assessed as good
42.4%
Share of assets assessed as doubtful
42.4%
Share of assets assessed as worthless
15.2%

Description

Articles (Nov 1930) report steady withdrawals over about a year (a run/erosion of deposits), the bank failing to open Nov 1930 and being closed by the board and placed with the national bank examiner; a receiver (George C. Cronkleton) was appointed for liquidation. Bookkeeper Harold C. Grant confessed to embezzling ≈$9,000; articles state the closing was due to withdrawals (not solely the embezzlement). Bank remained in receivership and liquidation (per later reports).

Events (5)
1. June 19, 1900 Chartered
Source
historical_nic
2. November 1, 1930* Run
Cause
Bank Specific Adverse Info
Cause Details
Steady withdrawals of deposits over about a year depleted cash reserves; later discovery/confession of bookkeeper embezzlement (~$9,000) may have contributed to loss of confidence.
Newspaper Excerpt
This decision came as a result of a steady withdrawal of deposits from the institution over a period of almost a year.
Source
newspapers
3. November 3, 1930 Receivership
Source
historical_nic
4. November 3, 1930 Suspension
Cause
Government Action
Cause Details
Closed by order of the board of directors and placed in the hands of the national bank examiner/receiver after withdrawals depleted reserves.
Newspaper Excerpt
First National Bank of Elgin failed to open for business Monday morning. ... the bank closed by the board of directors and placed in the hands of the national bank examiner.
Source
newspapers
5. November 7, 1930 Receivership
Newspaper Excerpt
At a meeting of the board of directors held Sunday, it was decided to close the First National Bank of Elgin for liquidation. George C. Cronkleton has been appointed receiver of the bank, taking up his duties in that capacity Wednesday.
Source
newspapers

Newspaper Articles (10)
1. November 6, 1930 Neligh News Neligh, NE
Article from Neligh News, November 6, 1930

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Article Text

First National Bank of Elgin Fails to Open The First National bank of failed to for business open Monday morning, notice the door stating that the bank closed by the board of directors and placed in the hands of tional bank examiner. According report, the general opinion that there will be loss to deposiThis the third bank close Elgin. One of the three organized and doing good business and considered good condition. Already movement is foot reorganize the First National and believed that this will done and the bank reopened for business few days. Edwin Rogers of Oakdale Neligh Saturday. Mr. and Mrs. John Malijewski Clearwater in Neligh Wednesday. The Misses Mildred Olson, Scott, Lucille Anderson, and Leona Lewis attended the football game Lincoln Saturday. Mrs. Guy Thornton and Mrs. Nels Petersen left Thursday for Omaha to visit daughters, taking training at the Univerhospital. Danny, son of Mr. and Mrs. fell the steps the east ward school house Tuesday morning and received severe on the head. He was attended physician, who took several stitches in the wound.

2. November 6, 1930 Neligh News Neligh, NE
Article from Neligh News, November 6, 1930

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Article Text

Took Small Amounts Out of Bank for Period of Five Years NO ARREST IS MADE Shortage Is Revealed in Examiner's Check-up Harold Grant, 30, of Elgin, confessed Tuesday that he had bezzled approximately of the funds of the First National bank of Elgin, which failed to open for business Monday mornGrant was bookkeeper of the bank and in his confession told Taylor, cashier, and Uyon Norfolk, national bank examiner, that he had taken the money small amounts over period five years. Attorney Lyle Jackson of Newas employed by the receiver the First National to investicertain matters pertaining to bonds required of employees of the bank. Grant, who was born and reared the Elgin vicinity and the late Cyrus Grant, is said have first confessed the embezzlement to his wife, later repeating to Taylor and Lyon. Grant was married only last July. understood no suspicion was directed toward him, but his extreme nervousness is believed to have impelhim to admit the embezzlement. said Grant has turned over his property to be used in paying much possible of the shortage. He not taken into custody Tuesday and it not yet known whether complaint will be filed against him. Reports apparently good authority that depositors of National will be paid cents dollar and the bank reopened shortly.

3. November 7, 1930 The Elgin Review Elgin, NE
Article from The Elgin Review, November 7, 1930

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Article Text

First National Bank In Receiver's Hands Closed by Order of Directors Following Meeting Sunday. George C. Cronkleton Receiver At a meeting of the board of directors held Sunday, it was decided to close the First National Bank of Elgin for liquidation. This decision came as a result of a steady withdrawal of deposits from the institution over a period of almost a year. George C. Cronkleton has been appointed receiver of the bank, taking up his duties in that capacity Wednesday. Mr. Cronkleton has handled the liquidation of a number of national banks in this section and has been successful to an unusual degree. Those who have examined the assets of the First National Bank state that the bills receivable are in first class shape and are largely collectable, although it will undoubtedly take several months to accomplish this The last statement, published September 24th, shows loans and discounts in the sum of $135,422.95 At the time of the last statement, deposits amounted to $123,720.34 The bank owned $97,850.00 worth of United States government securities. Bills payable and rediscounts amounted to $31,471.10. The cash reserve amounted to $11,710.47. It is the general opinion of those familiar with banking that there will be very little, if any, loss to the depositors, although their money will be tied up until the liquidation can be accomplished.

4. November 7, 1930 The Elgin Review Elgin, NE
Article from The Elgin Review, November 7, 1930

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Article Text

Confesses Embezzlement of Bank Funds Harold C. Grant Taken Into Custody by Federal Officers, Following Admission Harold C. Grant, for more than six years a bookkeeper at the First National Bank of Elgin, was placed under arrest about noon Thursday by Sheriff Sutton and delivered to a deputy United States marshal, as a result of his confession Tuesday that he misappropriated more than $9,000 of the funds of the bank. Previous to his admission of guilt, he had not been suspected and the shortage in the bank had not been discovered. Since the closing of the bank Sunday, he had been extremely nervous and finally, upon being questioned by Mrs. Grant, broke down and revealed the facts. The facts, as nearly as can be learned, indicate that the funds of the bank were misappropriated in small amounts over a period of several years, and that certain sheets were withdrawn at times from the ledgers of the bank in order to make the books balance. Mr. Grant was born in this vicinity, a son of Mr. and Mrs. Cyrus B. Grant, respected pioneers, now deceased. He attended the Elgin public schools and later the Wayne normal school, following which he became associated with the First National Bank. He was trusted implicitly by all with whom he came in contact and held several positions of trust in local organizations. Those who knew him were amazed when the facts in this case became public. Last summer he was married to Miss Elizabeth Ralston, who, for several years, had been a popular member of the high school faculty. They had recently remodeled and refurnished their home and apparently were situated most favorably. It is understood that there will be little, if any, loss to the bank as a result of Mr. Grant's crime, as he was under bond, and is also understood to have turned over to the bank some property interests to be applied toward restitution. It should also be stated that the closing of the bank, which occurred Sunday, was not due in any way to Mr. Grant's shortage, but rather to steady withdrawals by depositors, which took place over a considerable period of time.

5. November 7, 1930 Neligh Leader Neligh, NE
Article from Neligh Leader, November 7, 1930

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Article Text

ELGIN CLOSES General Opinion Loss of Depositors Will Slight if Anything First National bank of Elgin failed to open its doors for business Monday, being closed by the directand now in the hands of tional bank examiner. At the time of the closing is stated the deposits were approximately and its bills receivable approximately Other assets consist banking house and real estate. The county had considerable sum but this amply protected by government bonds in excess the deposit put up as security, the county under no contingency For considerable period each ceeding statement in response by the has shown shrinkage deposits and the closing made necessary by withdrawals which depleted the cash reserve point where likely the bank not meet upon Not alone bank officials but Elgin people familiar with its assets are of the opinion depositors lose little anything.

6. November 7, 1930 Neligh Leader Neligh, NE
Article from Neligh Leader, November 7, 1930

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Article Text

BANK CLERK Elgin Young Man Confesses to Speculations. HELD IN HIGH Shortage Totals About $9,000 Taken During Period Years Small Sums Time As development of the failure the First National bank of Elgin appears that Harold Grant, the of the bank is short accounts to an amount of approx- imately $9,000, the exact amount not being definitely determined. After the closing of the bank he first fessed to his whom he married only last July and later to cashier and to Bank Examiner, Uyon. When the report first became current people would believe Grant was always considered model young man. His explanation that he lived beyond his means and that the sums taken different times, comparatively small amounts time during about six years. The shortage was covered by taking out and concealing ledger sheets of depositors amounts equal to the shortage whenever check of the bank was He has not been placed under rest and what will be done about not been stated by government officials. Grant was the son of the late Grant, pioneer resident of the Elgin vicinity and about 30 years old. He has been with the bank about years. No suspicion was directed against him even since the bank closed but he knew, evidently that when the ceiver took charge of the books and checked them the shortage would be discovered he would not be position to remove ledger sheets before. He stated he never had figured out how he would replace the money takHe has now turned over what property he has but this not enough to cover the shortage.

7. November 7, 1930 The Orchard News Orchard, NE
Article from The Orchard News, November 7, 1930

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Article Text

EMPLOYE ELGIN BANK CONFESSES EMBEZZLEMENT Embezzlement of approximately $9,000 of the funds of the First National bank of Elgin, which failed to open for business Monday morning, was confessed Tuesday by Harold C. Grant, bookkeeper for the institution, according to reports. The confession was made to M. H. Taylor, cashier of the bank, and C. W. Lyon, of Norfolk, national examiner, it is said. Grant, who was born and reared in the Elgin vicinity and was the son of the late Cyrus Grant, is said to have first made the confession to his wife, later repeating it to Taylor and Lyon. There was no suspicion directed toward Grant, it is understood, but his extreme nervousness is believed to have impelled him to admit the embezzlement. Grant is a young man about 30 years of age and was married only last July. It is said that Grant has turned over all his property to be used in repaying as much as possible of his shortage. He was not taken into custody following the alleged confession Tuesday and it was not known whether a complaint was to be drawn against him.

8. October 14, 1931 The Hastings Daily Tribune Hastings, NE
Article from The Hastings Daily Tribune, October 14, 1931

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Thursday; To Payment Oct. George B.Cronkleton receiver First National Bank Hast. Ings, Neb., Comptroller Currency Cronkleton has handled sevreceiverships NebrasHe in the state now and report immediately Hastings. Immediately after receipt here news comptroller's lection, the Tribune obtained long distance Interview with Cronkleton after locating him Coleridge, learned that the receiver, who expects arrive here Thursday evening and assume active charge First National Bank Friday morning, has had long experience liquidation. Served 20 Posts. He assigned receivfor total banks Nebraska during the past ten and present time direct ing the liquidation nine Nebrasbanks addition to his new charge here. The banks which he Hquidating include First tional Bank Coleridge, the Hartington National Bank HartingWalthill National Bank National Bank Plainview, the Laurel National Bank Laurel, the Farmers National Bank Wakefield, First National Bank of Humphrey, Saunders County Bank Wahoo, First NationBank Elgin. Mr. Cronkleton declared that, though continue the direction the liquidation of the nine other banks, move headquarters Hastings, the First National here being the largest the group. He declared that he now has several assistants working with intimated that more may be secured. how rapidly the Hastings may progress, Mr. Cronkleton course, unmake statement, being necessary he first quaint himself with the conditions the To Work Rapidly. may, however,' assert"assure the people Hastings an earnest effort proceed with work there rapidly efficiently complished, and dividend be forthcoming depositors' there will warrant," he told the Tribune. Prior his first appointment bank years ago, Mr. Cronkleton resided Bayard, Neb., where cashier present First National Bank of that city.

9. October 15, 1931 The Hastings Democrat Hastings, NE
Article from The Hastings Democrat, October 15, 1931

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Article Text

CRONKLETON Will Take Charge of Institution On Friday of This Week HANDLES NINE OTHER BANKS Partial Payment of Deposits Will Be Made Earliest tical Date After Thorough Checkup of Banks Affairs. The appointment of George Cronkleton receiver the First National Bank Hastings announced from Washington Wednesday this week and said that Mr. Cronkleton take charge of the bank day morning this week. He at present in charge of nine other national banks in Nebraska, including the First NationBank Coleridge. the Hartington Bank the Walthill National Bank Walthill, the First National Bank Plainview, the Laurel National Bank Wakefield, the First National Bank of Humphrey, Saunders County National Bank Wahoo, the First National Bank at Elgin. Mr. Cronkleton, when advised of was Coleridge and said he would come to Hastings once and soon he can conveniently do will move his headquarters Cronkleton has been acting National Bank Receiver middle west ten years. His long experience in the work enables him handle the affairs of closed banks rapidly may consistent with good and believed that affairs of the local bank will closed rapidly under management. The work of invoicing the assets the bank has been completed Frank Nelson and his assistants and the complete report the affairs of the institution ready for the when he takes charge. presumed that dividend to the depositors will paid once if funds are available for that purpose.

10. May 11, 1932 Kearney Hub Kearney, NE
Article from Kearney Hub, May 11, 1932

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STATE CAPITAL. The secretary of the department of trade and commerce has opened suit in district court of Knox county to determine whether or not he can pledge assets of failed corporation. As soon as the district court gives its decision the case will immediately appealed to the supreme court for final decision If favorable verdict is obtained is probable that applications for these loans will be made on behalf of many failed state banks. The money thus obtained. said. will defer liquidation until the valuation of assets has reached higher mark, making it possible to make more favorable settlements with depositors. The regents of the state univerthe budget for the coming year which provides for saving of more than $162,000. This accomplished by reduction of salaries and wages and some other expense Items. The total budget for the year is less than half of this amount will come from taxation sources The balance will come from student fees, departmental sales and federal funds. Thursday we are B. Douglas, of Tecumseh. has selling a well known been appointed by the governor brand of jell powder fill five-year term member at 5c per package. of the state and park commisfilling the place formerly held Why not buy several by Webb Rice of Norfolk. few on hand for Ten candidates for the house emergencies, etc.? have no opponents the general election. Five are PORK STEAK and Two candidates for the state senate are unopposed. They are both demThursday we are ocrats. selling in our meat market fresh pork General Pershing's book "My Exshoulder steak at 9c periences in the World War" has lb. Treat the the Pulitzer prize of per $2,000 for the best book of the year tomorrow the history of the United States. delicious browned pork steak The monthly report of State dinner. Treasurer Bass total balance of $3,871,000 on hand at the close April. This is decrease FISH only $91,000 during the month. Fish is welcome When outstanding warrants issued against the gasoline tax fund, fedchange to any menu. eral aid road fund and Motor Tomorrow we are hicle registration fund are taken selling sable and into consideration the balance in the salmon at very at- three funds shows decrease The report shows the bal. tractive prices. This the three funds at is fresh stock and but when the outstanding warrants you will relish their are deducted the true balance dedelicious flavor. creases to $253,000. The treasury consists of $3,406 cash on hand, $1.in government bonds and $2,677,000 on deposit in banks. R. Green. secretary of the state contractors' organization, has filed Surety of Purity" suit in district court asking for declaratory judgmient on the right the state to let contracts for highway work without bids. Green representing 24 engineering construction firms. The suit asks determine whether or not the state has authority to cause construction work to be done on highways without first advertising for bids without first securing bids whether or not the state treasurer and state auditor have authority to pay for such work when has been done without first being advertised completed under contract bids. Depositors of failed national banks at Humphrey and at Elgin will soon receive dividends which make the total thus far paid out on each of the banks over 70 per cent.