First State Bank - Bethany, NE

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: April 1, 1930*
Location: Bethany, Nebraska (40.833, -96.633)

Metadata

Model: gpt-5-mini
Short Digest: 9d121c6a

Response Measures

None

Description

Articles (Apr 8–10, 1930) report the First State Bank of Bethany was turned over to the Nebraska state department and a receiver (Clarence G. Bliss) was appointed; depositors filed to object to Bliss serving both Bethany and the Nebraska State Bank of Milford. Cause was discovery of worthless promissory notes (from Milford) charged off and a draft issued that depleted funds. No mention of an antecedent depositor run; therefore classified as a suspension followed by closure/receivership. Dates of closing not precisely given in articles; closure described as recent prior to April 1930.

Events (2)

1. April 1, 1930* Receivership

Newspaper Excerpt: Clarence Bliss ... receiver for the First State bank of Bethany and the Nebraska State Bank of Milford; depositors filed intervention alleging he cannot act as receiver of two state banks because their interests are diametrically opposed (Lincoln Journal Star, Apr 8, 1930).
Source: newspapers

2. April 1, 1930* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bethany accepted promissory notes from the Milford bank later found worthless and charged off; a draft for $10,706.66 was issued and lack of ready funds resulted in the Bethany bank being turned over to the state department.
Newspaper Excerpt: the Bethany bank was turned the state department
Source: newspapers

Newspaper Articles (6)

1. April 8, 1930 Lincoln Journal Star Lincoln, NE

Article from Lincoln Journal Star, April 8, 1930

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Article Text

SAYS BLISS CAN'T BE BANKS' RECEIVER Intervenors Allege Claims of First State and the Milford Bank Are in Conflict. petition intervention was filed district court Monday afternoon by Marx, local torney, on behalf Chris Tiernan, Marx and the National Cloak Dress company, depositors in the First State Bethany, which is claimed that Clarence Bliss, secretary the department of trade and cannot act receiver two state banks because their interests diametrically opposed. Secretary Bliss is receiver the First State of Bethany and the Nebraska State Bank Milford. claimed that in May, 1929, M. Koenig, as cashier of the Milford bank, for purpose obtaining some temporary credit for the Milford bank, to the First State Bank of Bethany three notes It claimed that the in good ficondition. alleged that these notes were to face value when known the Milford bank to be without value. claimed that the First State bank of Bethany later accepted three notes to the amount of them worth face value but that Koenig knew them to valueless. Two of the notes were ordered out state bank, is claimed, by bank examiner. The Milford bank closed Nov. 15, 1929, and the First State bank investigated its notes and found and charged them off against Milford bank, said with an agreement with Koenig. The account was restored under threats from an agent the Milford bank's receiver, and draft issued for $10,706.66. result of the issuing of this draft, claimed, and lack of ready funds to meet First State bank was turned the state department. The Milford bank filed preferred against the local institution for the amount and intervenors ask that the amount the notes with be set off in favor of the First State bank of Bethany and that the draft be cancelled and the Bethany bank be given ment for any excess.

2. April 8, 1930 Lincoln Journal Star Lincoln, NE

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Article Text

BLISS CAN'T BE TWO BANKS' RECEIVER Intervenors Allege Claims of First State and the Milford Bank Are in Conflict. A petition of intervention was filed district court Monday ternoon by Marx, local attorney, behalf of Chris Tiernan, Marx and the National Cloak & Dress company, depositors in the First State bank of Bethany, in which it claimed that Clarence Bliss, secretary of department trade and cannot act as receiver of two state banks because their interests are diametrically opposed. Secretary Bliss receiver for the First State bank Bethany and the Nebraska State Bank of Milford. is claimed that in May, 1929, Koenig, as cashier of the Milford bank, for the purpose obtaining some temporary credit for the Milford bank, presented to the First State Bank of Bethany three promissory notes amounting to $7,500. It was claimed that the promissors were in good financial condition. It is alleged that these notes were represented possess value known Milford bank to be without value. It is claimed that the First State bank of Bethany later accepted three more notes to the amount of believing them be worth face but that Koenig knew them to be valueless. Two of the notes were ordered out of the state bank, is claimed, by the bank examiner. The Milford bank closed Nov. 15, 1929, and the First State bank its notes and found them and charged them off against the Milford bank, said with an agreement with Mr. Koenig. The account was under threats from an agent of the Milford and draft issued for $10,706.66. As result of the of this draft, claimed. and lack of ready funds to meet it, the First State bank was turned the state department. The Milford has filed preferred claim against the local institution for the amount and the intervenors that full amount of the notes with interest be set off in favor of the First State bank of Bethany and that the draft and Bethany bank be given a judgment for any excess.

3. April 8, 1930 The Columbus Telegram Columbus, NE

Article from The Columbus Telegram, April 8, 1930

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Article Text

OBJECT TO BLISS AS RECEIVER TWO BANKS Depositors Maintain Their Opposed Lincoln, Apr. that Clarence Bliss, secretary of the department of trade and cannot act receiver of two banks First State bank. of Bethany, and the Nebraska State bank. their interests were contained in intervention filed here The petition was filed by Marx. local attorney. on behalf of Chris Tierman. Marx, and the National Cloak and Dress depositors Bethany bank. claimed the Bethany bank accepted the Milford bank. which temporarily needed credit. Two of the were ordered out of the bank worthless by the bank examiner The Milford bank closed Nov. 15. 1929, and the Bethany bank. finding the notes of the Milford bank worthless. charged them The account was restored. claimed. under threats from an agent of the Milford's bank and draft issued for resulting legedly the forced closing the Bethany bank. Makes First Job Pay actormanager. who making about pounds part of policeman Night Like started his career Bobby salary of five shillings day and two pairs of shoes year.

4. April 8, 1930 Lincoln Journal Star Lincoln, NE

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Article Text

BLISS BANKS' RECEIVER Intervenors Allege Claims of First State and the Milford Bank Are in Conflict. petition of intervention was filed district court Monday ternoon by Marx, local torney, on behalf Chris Tiernan, Marx and the National Cloak Dress company, depositors in the First State bank Bethany, in which is claimed that Clarence Bliss, secretary department of trade and commerce, cannot act as receiver of two state banks because their interests are diametrically opposed. Secretary Bliss receiver for the First State bank of Bethany and the Nebraska State Bank Milford. is claimed that in May, 1929. Koenig, as cashier of the Milford bank, for the purpose obtaining some temporary credit for the Milford bank, presented to the First State Bank of Bethany three promissory notes amounting to It was claimed the promissors were in good ficondition. alleged that these notes were represented to possess face value when known Milford bank to be without value. It claimed that the First State bank of Bethany later accepted three more to the amount of believing them worth face value but that Koenig knew them to valueless. Two the notes were the state bank, claimed, by the bank examiner. The Milford bank closed Nov. 15, 1929. and the First State bank investigated its notes and found them and them against the Milford bank, said agreement with Mr. Koenig. account under threats from an agent the Milford and draft issued for $10,706.66. result of the issuing of this draft, and lack of ready funds to meet the First State bank was turned the state The Milford bank has filed preferred claim the local institution for the amount and the intervenors that the full amount of the notes be set off in favor of the First State bank of Bethany and that the draft cancelled and the Bethany bank be given judgment for any excess.

5. April 8, 1930 The Hastings Daily Tribune Hastings, NE

Article from The Hastings Daily Tribune, April 8, 1930

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Article Text

OBJECT TO BLISS SERVING 2 BANKS Bethany Depositors File Remonstrance Milford Interests Caused Bethany Failure. Claims that Clarence G. Bliss, sec retary of the department of trade and commerce. cannot act as re ceiver of two First State Bank of Bethany and the Ne braska State Bank. of Milford because their are opposed were contained in petition of in tervention filed here late yesterday The petition was filed by J. J Marx local attorney. on behalf of Chris A. Tierman. Marx. and the National Cloak and Dress Company. depositors in the Bethany bank It is claimed the Bethany bank accepted of notes of the Milford bank, which temporar ily needed credit Two of the notes. alleged. were ordered out of the bank as worthless by the bank examiner The Milford bank closed Novem ber 15. 1929 and the Bethany bank finding the notes of Milford bank worthless charged them off The account was restored. it is claimed. under threats from an agent of the Milford bank's receiv er. and draft issued for resulting allegedly in the forced closing of the Bethany bank

6. April 10, 1930 Seward Journal Seward, NE

Article from Seward Journal, April 10, 1930

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Article Text

DEPOSITORS OF BETHANY BANK START ACTION Holds Clarence Bliss Unable to Act As Receiver For Two Institutions petition in intervention was filed in the Lancaster district court Monan attorney representing depositors of the recent closed First State bank of Bethany, the document claiming that Clarence G. Bliss, secretary of the state department of trade and commerce, cannot act receiver of two failed state banks for which he has been appointed receiver, because their interests are diametrically opposed. The suit arises out of peculiar wording of the state laws which require the secretary of trade and commerce to act as receiver of failed banks, in this case making him the representative of two failed banks with conflicting claims allegedly against the other. The Milford bank was closed November 15, and the other institution alluded to the First State Bank of Bethany. The suit has to do with three promisory notes totaling $7,500 given to the Bethany bank in May 1929, and later three more notes of $3,750, on the belief they were worth their face value. Two of the notes were dered out of the Bethany institution by the state bank examiner as not good for credit. Following closing of the Milford bank, the Bethany bank investigated its notes, found them worthless and charged them off the account of the Milford against bank, the petition claims. The account was restored it is claimed, under an oral agreement but under threats from the agent of the Milford bank's receiver, issued draft of $10,706.66. As the result of issuing this draft and lack of ready funds to meet it, petition alleges, the Bethany bank was turned over to the department of trade and commerce. Mesdames John Oaks, Charles Downing and Rogge were hostesses last Thursday evening at the Community club party. There were ten tables of bridge players. buffet luncheon was served with Easter appointments. SEWARD MARKET Wheat Corn .68 Oats .37 Cream .34 Butter Butter .35 Eggs trade, Hens .20 Springs Leghorns Leghorn Springs .08 Cocks