11955. Omaha Loan & Trust Company (Omaha, NE)

Bank Information

Episode Type
Suspension โ†’ Closure
Bank Type
trust
Start Date
December 11, 1901
Location
Omaha, Nebraska (41.259, -95.938)

Metadata

Model
gpt-5-mini
Short Digest
c8d325f0b7d4ab68

Response Measures

None

Description

Articles report the Omaha Loan & Trust Company placed in the hands of a court-appointed receiver (William K. Potter) on Dec 11, 1901 because of insolvency/failed mortgages. There is no mention of a depositor run or temporary suspension/reopening โ€” the company remained in receivership with asset sales and dividends ordered in subsequent years, consistent with permanent closure. OCR minor corrections: several articles spell receiver name/figures slightly differently; dates taken from articles.

Events (4)

1. December 11, 1901 Receivership
Newspaper Excerpt
On application of William Wallace, Judge Fawcett appointed William K. Potter receiver for the Omaha Loan and Trust Company and fixed his bond at $100,000. The receiver qualified and took possession.
Source
newspapers
2. June 2, 1905 Other
Newspaper Excerpt
Judge Troup has rendered a decision ... John W. Paine given verdict in suit against William Potter, as receiver of the Omaha Loan and Trust company and against the assets of the company, for $4,901.65.
Source
newspapers
3. December 24, 1905 Other
Newspaper Excerpt
In the matter of the receivership of the Omaha Loan and Trust company Judge Sears ... ordered that said receiver shall ... pay to the legal holders of all outstanding receiver's certificates ... a dividend of 30 per cent.
Source
newspapers
4. February 1, 1906 Other
Newspaper Excerpt
Judge Troup has made an order directing William K. Potter, as receiver of the Omaha Loan and Trust company, to sell ... the balance is to go toward the paying of claims against the defunct trust company.
Source
newspapers

Newspaper Articles (11)

Article from The St. Louis Republic, December 12, 1901

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LIABILITIES MORE THAN FIVE MILLIONS. Assets of Failed Omaha Loan and Trust Company Not Announced -Receiver Appointed. Omaha, Neb., Dec. 11.-On application of William Wallace, Judge Fawcett this afternoon appointed William K. Potter receiver for the Omaha Loan and Trust Company and fixed his bond at $100,000. The receiver qualified and took possession. No official statement was filed. but Mr. Wallace's attorneys state that the company has outstanding debenture bonds of $350.000. It is guarantor for about $4,500.000 of its loans. and it has a paid-up capital stock of $500,000. The assets are still somewbat indefinite. The better part of them are represented by $1,100,000 of real estate, taken on foreclosure, which. is the book value of the property. About $700,000 of this amount is covered by what are known as "straw mortgages." which are included in the list of guaranteed loans. These "straw" mortgages. are used by large trust companies to avoid carrying a large amount of dead property that ties up working capital. This leaves about $400,000 of real estate of book value to cover the debenture bonds. and any actual liability which exists on the guaranteed loans. It is not believed by the directors that the stockholders will realize anything out of the capital stock. One of the directors said to-day that the stock had been offered within the past two months at from 1 to 5 cents on the dollar. The greater part of the $4,500,000 of guaranteed loans are also protected by realty mortgages. The loans were made on Missouri and Nebraska farms, and on Omaha realty. The Missouri loans are said to be fair: those on Nebraska lands of high grade. and those on Omaha property worth about par. Several years ago about $350,000 of the mortgages were placed on Omaha suburban property. which has not proved all that was expected of it. and this load the trust company has been carrying. The failure to realize on them is given as the real cause for the present financial distress of the company.


Article from Evening Journal, December 12, 1901

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NUGGETS OF NEWS General Funston will sail from Manila for the United States on December 16. Railroad yards at El Paso, Tex., are blocked with cars of eastbound oranges. Dr. L. M. Sweetman, a well-known surveyor. died in John Hopkins Hospital at Baltimore. Harold H. Weeks was elected captain of the Columbia University football team for 1902. William K. Potter was appointed receiver for the Omaha Loan and Trust company yesterday. The submarine boat Fulton, which sank at New Suffolk, L. I., on Monday, was raised yesterday. Frank Bundy, who shot and killed his wife last August, was convicted of manslaughter at Johnstown, Pa. A three-story saw factory in Brooklyn, N. Y., owned by J. Oldham & Sons, was burned. Loss, $75,000.


Article from The Saint Paul Globe, December 12, 1901

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POTTER IS RECEIVER FOR THE OMAHA LOAN AND TRUST COMPANY, WITH BOND OF $110,000 WM. WALLACE, PROPONENT Straw Mortgages in Assets, but Do Not Represent Anything of an Irregular Character. OMAHA, Neb., Dec. 11.-On application of William Wallace, Judge Fawcett, in the district court, late this afternoon, appointed William K. Potter receiver for the Omaha Loan and Trust company, and affixed his bond at $100,000. Edgar H. Scott was named as attorney for the receiver. As soon as the appointment was made the receiver qualified on the bond and took possession. The application was made by Mr. Wallace as a director in the company, and who, as proponent, gave a bond of $100,000, with Guy C. Barton and C. H. Brown as sureties. No official statement was filed with the application for a receiver, but Mr. Wallace's attorneys are authority for the statement that the company has outstanding debenture bonds of $350,000, it is guarantor for about $4,500,000 of its loans, and it has a paid-up capital stock of $500,000. The assets are still somewhat indefinite. The better part of them are represented by $1,100,000 of real estate taken on foreclosure, which is the book value of the property. About $700,000 of this amount is covered by what are known as "straw mortgages," which are included in the list 0 fguaranteed loans. Explanation of Straw Mortgages. The "straw" mortgages do not repreresent anything of an irregular character, but are mortgages used by large trust companies to avoid carrying a large amount of dead property that ties up working capital. This leaves about $400,000 of real estate on book value to cover the debenture bonds and any actual liability which exists on the guaranteed loans. It is not believed by any of the directors that the stockholders will realize anything out of the capital stock. One of the directors said today that the stock had been offered within the past two months at from 1 to 5 cents on the dollar. The greater part of $4,500,000 of guaranteed loans are also protected by realty mortgages. The loans were made on Missouri and Nebraska farms and on Omaha realty. The Missouri loans are said to be fair, those on Nebraska lands of high grade, and those on Omaha property are also considered worth about par. Sleveral years ago about $350,000 of mortgages were placed on Omaha suburban property, which has not proved all that was expected of it, and this load the trust company has been carrying. The failure to realize on them is given as the real cause of the present financial distress of the company. The savings bank, which was taken over by a new corporation, is said to be in good condition, being is no way connected with the trust company.


Article from Waterbury Democrat, December 12, 1901

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Trust Company In Receiver's Hands. OMAHA, Neb., Dec. 12.-On application of William Wallace, Judge Fawcett in the district court yesterday appointed William J. Potter receiver for the Omaha Loan and Trust company. Attorney H, E. Scott, for the trust company, said the application had been considered for some time and that the action had been taken after conferences with representatives of eastern creditors and between the stockholders and directors. The application, he said. was made in the interest of the creditors, of whom none is preferred.


Article from The Savannah Morning News, December 12, 1901

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Omaha Loan and Trust Company in Hands of Receiver. Omaha, Neb., Dec. 11.-On application of William Wallace, Judge Fawcett, in the Circuit Court this afternoon, appointed William K. Potter receiver for the Omaha Loan and Trust Company, and fixed his bond at $100,000. No official statement was filed with the application for a receiver, but Mr. Wallace's attorneys are authority for the statement that the company has outstanding debenture bonds of $350,000; it is a guarantor for about $4,500,000 of its loans, and it has a paid-up capital stock of $500,000. The assets are still somewhat indefinite. The larger part of them is represented by $1,100,000 of real estate taken on foreclosure, which is the book value of the property. It is not believed by any of the directors that the stockholders will realize anything out of the capital stock. One of the directors said to-day that the stock had been offered within the past two months at from one to five cents on the dollar.


Article from The Intermountain Catholic, December 14, 1901

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De six months will consist pork. next sign to refute Dowie's S charges d Financial business of the United States in the far east to be turne government the New York Guaranty & Trus company. over to which gained the award de spite strong opposition from foreign houses. Admiral Schley gave silver service to M. A. Teague, his assistant counsel 1. the recent inquiry. Deadwood shernfff and his deputy killed a store robber, wounded another and tured a third. Runt on the City Savings bank Omaha checked by sight of piles of on the counters. Stanford university about to come full possession of the millions left by Senator Stanford. The amount $18 000 in bonds and $12,000 in other property D. M. Farson and other revivalists from Chicago ousted from the Park Street church, Boston, because their meetings were too boisterous H. J. Fleishman, cashier of the Farm& Merchants bank of Los Angeles $150.00 disappeared. ers leaving a shortage of Express package containing mortgages and securities worth Wis. found in a rubbish heap at Racine Dentist at Mattoon. Ills., killed hims because he feared he was unitted temperament to marry Senator Hoar introduced bill to punish as murderers all who participate lynching Congress to act on Andrew Carnegie city proposition to give $10,000,000 to the Washington for a national university New subsidy bill read in the Principal items which aroused antag ism in the last congress left out Senator Tillman defied his colleague and in senate discussion of their troubles challenged a him to resign. Their seats may be declared vacant. Chicago Undertakers association started movement to abolish Sunday funerals. Will ask clergymen to co-operate In an attempt to capture Dewet Colonel Wilson, with a force of English troops. came into contact with a superior force of Boers near Hellbron, and was nearly surrounded. French ministry in debate on the budget declared the government cannot consider a reduction in the size of the army at the present time Reichstag to question the government regarding Chamberlain's alleged insult to German soldiers in his speech at Edinburg. Plan of Charles T. Yerkes for electri14cation of London transportation lines reported to have been adopted General Alban preparing to recapture Tumaco. which is held by 3,000 Colombian recvolutionists. British government soon to institute reforms in t he management of concentration camps. Clerk who robbed Liverpool bank of nearly $1,000,000 lost it in race track gambling. London Saturday Review opposed alliance with either Germany or United States. and urged holding balance of trade poyer by England in case of trouble in South America. Domestic troubles of Queen Wilhelmine arouse interest of Europe, but it is doubted if facts are known. Girl students at University of Wiscon sin asked lower prices or better bill of fare in Chadbourne hall. American Federation of Labor organ ized conventionan d prepared for work. Robbers surrounded in bank at Archbald, O., fought their way out, carrying $2,000 in plunder. Leonard Roeder. who says he remembers battle of Waterloo. will celebrate 102d birthday at Quincy, Ills. shortly Legislation to provide funds for Nicaraguan canal almost certain of passage this session. at Senator Depew gave a farewell stag dinner. with President Roosevelt as special guest. Omaha Loan & Trust company of Omaha, Neb. admittedly in fnancial distress and liquidation is predicted. Liabilities are $1,000,000. mostly owed to eastern investors. A. U. Wyman. former United States treasurer. is president. Plans of General Miles for new army uniform opposed. War of copper interests on Thomas W Lawson discussed by Boston millionaire. Manila merchants refuse to accept Mexican money in payment for goods. Philippine commission authorized Insular purchasing agent to use gold in purchase of supplies. Botha, Steyn. De Wet and other Boer leaders held a conference twelve miles from Heilbron. Burghers want to know when intervention is to come Miss Katherine Roberts, heiress to 1 fortune of $4,000,000, is a chorus girl in the 'Liberty Bells. British coal exports declined 158,000 tons in the first ten months of 1901. Leader of an American party exploring Siberia expelled from Russia. According to the annual report of Director of the Mint Roberts. the coinage for 1901 amounted to $136,340,781. President Roosevelt and his sons averse to wearing heavy overcoats, but they seldom catch cold. Kenosha Woman's club of Chicago voted to forego use of bird trimmings on Easter bonnets. Attempt will be made to protect birds in that city Footpad at Lexington, Ky., killed and robbed J. N. Hawkins, treasurer of a church. Slump in Amalgamated Copper stock caused by sale of holdings of estate of Marcus Daly. Business section of Hoopestown. Ills., destroyed by fire. Loss nearly $100.000. Loss of the Omaha Loan & Trust company may run up into the millions. Platinum and copper in paying quantites found near Encampment, Wyo. New Orleans infested with crooks and pickpockets, who defy the police. This year's output of Lake Superior iron mines was 20,500,000 tons. "Volunteers of America planning Christmas dinner for 10,000 persons on Dec. 29. at Chicago. Trades unionists throughout Illinois will be asked by Chicago lodges to contribute to the McKinley monument fund. Town Marshal J. B. Smith of Chelsea. Ia., killed in a fight with three men eaught in the act of robbing a bank. Posse pursuing the slayers. Convicted murderer who was executed in Arkansas partially revived in his coffin. but died before he could be hanged again. Federation of Labor convention at Scranton, Pa., denounced Minister Wu for his recent remarks on Chinese exclusion. Locomotive and three freight cars on the Canadian Pacifie fell into a gorge 300 feet deep. Two trainmen killed. Kansas City man who forced his sweetheart to steal $1,200 sentenced to prison for Senate five years. Foreign committee made favorable report on Hay-Pauncefote treaty, which insures its ratification. Congressman Crumpacker again introduced his bill to reduce southern representation in congress. Rumor revived thata Secretary Hay is retire after the confirmation of the Nicaraguan canal treaty by the senate. Secretary Root thought to be most likely succeed him in that event. o Court-martial of Colonel R. L. Meade esulted in his acquittai. Charges may be rought against his accusers. Admiral Dewey said none of the reports bout the Schley decision are to be beleved. W. J. Bryan declared Filipinos and panese should be excluded together


Article from The Farmington Times, December 19, 1901

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WEST AND SOUTH. By the wreeking of the British bark Piumore near Grays harbor. Wash., seven sailors lost their lives. Fire destroyed the main building of the Worcester (0.) university, causing a loss of $250,000. With liabilities of $5,000,000 the Omaha Loan & Trust company has gone into the hands of a receiver. The death of Mrs. James McDermott., aged 105 years, occurred at Cos, W. Va. Near Duquoin, Ia., Ewald Eichorn, a farmer, was blindfolded, bound hand and foot and beaten to death by robbers. At the Houston (Tex.) carnival a confidence man killed two policemen who cought to arrest him, and was in turn slain. Flames destroye5 n block of business housel, 17 in number, at Sweetwater, Tex. While seeking an education Kenry Descond, a student at the state university in Tacoma, Wash., starved to death. George B. Cortelyou and Judge Willim a Day, administrators of the estate of the late President William MoKinley, have filed bonds at Canton, O. in Sprin BEX the eighty-third anniversary of the admission of Illinois into the unless as a state was calebrated. The Illinois corn crop this year was 183,793,300 busbels, the smalliest since 1890. Gen. Arthur MacArthur has been w deted to Denver to masure command the department Colorado. The doors Wanatah (Inds) with


Article from Omaha Daily Bee, March 11, 1902

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FOR SALE-REAL ESTATE. A CHOICE home, built of pressed brick, interior beautifully finished, square mosate tiled hall, porcelain bath, steam heat, barn, carriage house, shade trees, large lot 85 feel front; very fine residence location; close in; this property cost the former owner over $18,000 and can be sold at a decided bargain for cash. Wm. K. Potter, receiver Omaha Loan and Trust RE-M113 Co., 303 Brown Blk.


Article from Omaha Daily Bee, June 2, 1905

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# CLAIMANT GETS JUDGMENT John W. Paine Given Verdict in Suit Against Receiver for Trust Company. Judge Troup has rendered a decision to which both parties except, and they are given forty days in which to file their bills of exceptions. The decision passes on the claim of John W. Paine against William Potter, as receiver of the Omaha Loan and Trust company and against the assets of the company, for $4,901.65. Paine bought a note for $10,000 which was guaranteed by the company. The court holds that the company had no power to guarantee the interest of Paine in the note. On a sale of certain property given as security Paine realized, as the court holds, all but $1,970.33 of his claim. He is given judgment for this amount against the receiver and against the assets of the company. The receiver is ordered to hold in his possession sufficient of the assets or money of the company to pay Paine's claim for the larger amount if he shall finally prevail in the suit.


Article from Omaha Daily Bee, December 24, 1905

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THIRTY PER CENT DIVIDEND Amount Sears Orders Receiver of Trust Company to Pay to Certificate Holders. In the matter of the receivership of the Omaha Loan and Trust company Judge Sears of the district court has made the following order, on application and showing made by the receiver, William K. Potter: It is further hereby ordered that said receiver shall, as soon as he can properly prepare his books and necessary papers in connection therewith, pay to the legal holders of all outstanding receiver's certificates, issued for claims allowed by the court a dividend of 30 per cent, computed upon the unpaid balance of the principal of said certificates, after deducting from the original amount thereof payments from collateral as above provided, and all payments that may heretofore have been made from collections upon collateral or otherwise and by payment of dividends heretofore ordered by this court. The receiver's statement to the court shows that he now has cash on hand to the amount of $37,299.42. Receiver's certificates have been issued to the amount of $322,467.50, on which payments have been made to the amount of $174,019.79 and dividends declared for $76,484.63. This, with $11,961.24 collected from collateral for the trust fund, makes a total of $262,465.66. The balance of allowed claims unpaid is $60,001.84. In addition to allowed claims paid as above other liabilities have been settled to the amount of $2,742,539.17, making a total reduction of liabilities to date of $3,005,004.83.


Article from Omaha Daily Bee, February 1, 1906

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RECEIVER TO SELL THE LOT W. K. Potter Directed by Court to Dispose of Eight-ThousandDollar Property. Judge Troup has made an order directing William K. Potter. as receiver of the Omaha Loan and Trust company. to sell to Inez Callahan sublot 8 of lot 3. Capitol addition for $8,300 cash. After legal expenses are paid the balance is to go toward the paying of claims against the defunct trust company for which the property was security.