12829. Blue Springs Bank (Blue Springs, NE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 15, 1896
Location
Blue Springs, Nebraska (40.139, -96.659)

Metadata

Model
gpt-5-mini
Short Digest
6ae10610

Response Measures

None

Description

The bank was closed by the state examiner (article 1, 1896-01-15). No run is reported. Subsequent reporting (Jan–Feb 1896) documents arrest of the president for embezzlement, appointment of a receiver and that the bank will not be reorganized and will pass into receivership/liquidation. Dates correspond to newspaper dates; receiver selection and statement that the bank will not reopen appear in late January–February 1896.

Events (3)

1. January 15, 1896 Suspension
Cause
Government Action
Cause Details
Closed by the state bank examiner (official action); examiner ordered closure after discovering problems.
Newspaper Excerpt
The Blue Springs (Neb.) bank was closed by the state examiner.
Source
newspapers
2. January 21, 1896 Other
Newspaper Excerpt
The excitement caused by the recent failure of the Blue Springs bank culminated today in the arrest of J. C. Williams, president, for embezzlement.
Source
newspapers
3. February 22, 1896 Receivership
Newspaper Excerpt
Will Not Reopen the Bank. ... The Blue Springs bank will not be reorganized, but will pass into a receiver's hands for liquidation ... S. M. Hazen, an old citizen, ... was selected for receiver and a committee appointed to circulate his petition and present same to the district court Monday.
Source
newspapers

Newspaper Articles (4)

Article from The Providence News, January 15, 1896

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Article Text

TELEGRAPHIC BREVITIES. Chicago jurors are said to have taken bribes. Many deaths from sunstroke occurred at Sydney. Yale men are willing to enter a five-college boat race. Boston savings hanks and trust companies have assets of $607,500,000. One hundred Portugnese soldiers are reported to have been killed by natives. The absconding collector of customs of Peterboro, Ont., was an opium flend. New York brewers and saloon keepers are determined to defeat the Raines excise bill. The London press consider the separate school question in Manitoba a very serious matter New York commissioners report that 370,605 immigrants entered by that port last year. At Fort Smith, Ark., Judge Parker sentenced "Cherokee" Bill to be hanged on March 17. In a 10-round fight at Cincinnati, Joe Pruper was badly knocked out by Dave Richards. New York bankers are still asking where subscribers are to get the gold to pay for their bonds. Judge John Mitchell Robinson of the Maryland court of appeals died/a Annapolis of heart disease. Johnson & Filoon, cut sole and leather dealers, Brockton, Mass., have assigned. Assets and liabilities not stated. A new line of ocean steamships between Boston and German ports, via Southampton, will probably be established. Martin Brimmer, a well-known resident of Boston, died after a long sickness. He was one of the oldest business men of the city. Mrs. Phosbe H. Woodward of Charlestown district (Boston), is dead. aged 102 years. She was a native of Lancaster, Mass. Masked robbers entered a Missouri Pacifle depot at Fails City, Neb., and held up five people. The valuables of all were taken. John Morrissey, said to be an old-time confidence man, is under arrest at Kansas City, charged with swindling on bogus drafts. Charles A. Smith. aged 40 years, a Madrid (Me.) farmer, cut his throat while mentally deranged. The windpipe was severed. The large warehouse of S. S. Jewett & Co., stove manufacturers at Buffalo, was totally destroyed by fire. The loss is $250,000. The Bank of Stratton, Neb., has closed. The cause is alleged to be slow collections. The assets are more than equal to the ligibilities The Weman's Christian Temperance union is to circulate petitions looking to the establishment of industrial homes for victims of the alcohol habit. Brigadier General Charles A. Heckman, a veteran officer of the Mexican war and the rebellion, died at his home in German town, Pa. He was 73 years of age. The Blue Springs (Neb.) bank was closed by the state examiner. About $7000 of county funds are held by the bank, but no loss to depositors is expected. The first battalion of the Massachusetts naval brigade have taken formal possession of the old frigate Minnesota, which was taken to Boston from Now York last fall. The Nashua (N. H.) city government decided that City Selicitor Wason cannot also hold the office of president of the board of education. He will resign one office. Two schooners from Gloucester, Mass.Falcon and John W. Bray-are greatly overdue, and while not given up by their owners. much anxiety is felt for them and their crews: Miss Emma Etta Monk died under mysterious circumstances at Rockland Me., and a coroner's jury gave a verdict that she died from self-inflicted injuries, probably accidental. The Old Colony Railroad company has paid $26,170 for a tract of land on Cove street, Boston, to be added to the property which will be used for the new union station, should it be erected. The Ketcham Lumber company of Chiengo, one of the largest concerns in the lumber district. failed. Assets are estimated to be between $500,000 and $600,000, while the liabilities are about $275,000. Mrs. Edith Cox, widow of the late Abraham R. Cox, a wealthy paper dealer of Philadelphia, was so badly burned by an explosion of an alcohol lamp, which she was filling, that she died a few hours later. William H. Dinsmore, aged 59 years, a business man of Haverhill, Mass., dropped dead from heart failure. He was formerly engaged in shoe manufacturing, but had recently been engaged in the liquor business. The Concord (N. H.) city government elected W. P. Ladd tax collector over A. I. Foster, the present incumbent; W. P. Fiske and Dr. G. A. Young park commissioners, and "Alfred Clark highway commissioner. Benjamin Johnson, Baltimore agent of a New York firm of Stock Exchange brokers, who suddenly left Baltimore after the discovery of a shortage of about $15,000 in his accounts, was arrested at Tampa, Fla. Master in Chancery Johnson's final report of the cost of the Santa Fe receivership shows that the total court expenses were $309,700. Sixty thousand less than this was allowed by the court, but the bondholders made up the difference. The gold medal of the Royal Astronomical society of London was awarded to Dr. S. C. Chandler of Boston for the de-


Article from Omaha Daily Bee, January 22, 1896

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Article Text

TROUBLE AHEAD FOR WILLIAMS. Blue Springs Bank Cashier Under Arrest for Forgery. BLUE SPRINGS, Neb., Jan. 21.-(Special Telegram.)-The excitement caused by the recent failure of the Blue Springs bank culminated today in the arrest of J. C. Williams, president, for embezzlement. The particular charge was founded on a discrepancy between the bank books and those of the county treasurer, the latter showing about $1,000 more county money in the bank than there was entered on the bank books. Sheriff Nelson took his prisoner to Beatrice before 'Squire Enlow, who held him under bonds for preliminary examination. From facts ascertained recently It appears that there is no possibility of reorganization, the amount necessary to place the bank on a sound footing being estimated at $40,000, not the half of which could be raised here, and nothing remains but to appoint a receiver. A committee appointed by the creditors to investigate reports that the available assets of the bark amount to about $7,000 or $8,000, to pay $24,000 of deposits and about $3,500 collections made but never remitted by the bank, the remaining nominal assets consisting of worthless notes and accounts, some of which have run many years. Of the bank stock $14,000 was held by President Williams, $1,000 by A. W. Cross, $100 each by four others and the remaining $2,600 by one Page, who has been away from here for years and owes the bank about the amount of his stock. Some $5,000 or $6,000 of notes listed on the books cannot be found at all and about $6,000 of bank stock has disappeared. At the meeting tonight O. E. Bishop was selected by the depositors for receiver, and a petition for his appointment will be presented to the court. Aside from the criminal action already begun it is said that much crooked work in the management has been unearthed. Much distress is felt among the people here, most of whom had money in this bank for their support and are left without resources, few believing that anything will ever be realized from the bank.


Article from Omaha Daily Bee, February 23, 1896

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Article Text

Will Not Reopen the Bank. BLUE SPRINGS, Neb., Feb. 22.-(Special.) -The Blue Springs bank will not be reorganized, but will pass into a receiver's hands for liquidation and the $20,000 of deposits which represents the hard earned money of about 300 persons, is lost. J. C. Williams, who has been running the bank for fifteen years, returned recently from a ten days' visit to Illinois, where he was supposed to be raising money to make good some portion of the missing funds and reported that he could not raise the amount and all that now remains to be done is to gather up the remnants. It is probable that there will be enough realized from the assets to pay money collected and kept, and possibly some of the protested drafts. About all the rest will be consumed in costs of litigation, salary of receiver and other expenses. At a meeting of the creditors last night S. M. Hazen, an old citizen, who has been in business here for twenty-five years, was selected for receiver and a committee appointed to circulate his petition and present same to the district court Monday.


Article from Omaha Daily Bee, February 6, 1897

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Article Text

BANK PRESIDENT ORDERED TO PAY. Receiver Gets a Judgment for Fourteen Hundred Dollars. BEATRICE, Neb., Feb. 5.-(Special Telegram.)-S. M. Hazen, receiver of the Blue Springs bank, secured judgment today against J. C. Williams, the president of the defunct concern, for $1,400. The amount sued for was about $5,000, the evidence of debt being an overdraft of $1,900 and a number of notes given by Williams. The defendant claimed an offset against the claim of the year's salary as president and cashier, and for that reason the judgment was granted for a less amount. than sued for. Williams is already under sentence to the penitentiary for three years for the part he took in wrecking the bank, but is on bail pending a hearing in the supreme court.