12901. First National Bank (Chappell, NE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
9790
Charter Number
9790
Start Date
January 1, 1921
Location
Chappell, Nebraska (41.093, -102.471)

Metadata

Model
gpt-5-mini
Short Digest
f323ece8

Response Measures

None

Receivership Details

Depositor recovery rate
30.0%
Date receivership started
1921-01-29
OCC cause of failure
Losses
Share of assets assessed as good
33.7%
Share of assets assessed as doubtful
52.5%
Share of assets assessed as worthless
13.9%

Description

The bank suspended operations in early January 1921 citing inability to collect wheat loans (local agricultural/price shock). It went into the hands of a receiver (article states 'went into the hands of a receiver, January 1'). No newspaper text describes a depositor run. Later prosecutorial actions and recovery of buried notes occurred; receivership and permanent closure followed. Depositors were later protected by mortgages and defendants were eventually acquitted (1923).

Events (7)

1. June 18, 1910 Chartered
Source
historical_nic
2. January 1, 1921 Receivership
Newspaper Excerpt
First National bank at Chappell, Neb., which went into the hands of a receiver, January 1, were arrested ... (Omaha Daily Bee 1921-07-28).
Source
newspapers
3. January 1, 1921 Suspension
Cause
Local Shock
Cause Details
Inability to collect customers' notes because farmers would not sell wheat until markets strengthened — agricultural/price shock (falling wheat prices) led to suspension.
Newspaper Excerpt
The First National Bank of Chappell, Nebraska has closed its doors waiting the action of the National Bank Examiner ... The inability to collect on its customers notes ... has caused this suspension.
Source
newspapers
4. January 29, 1921 Receivership
Source
historical_nic
5. July 28, 1921 Other
Newspaper Excerpt
Two Bankers Held In Chappell Failure Harvey I. Babcock and Frank A. Burling, president and cashier of the First National bank at Chappell, Neb., which went into the hands of a receiver, January 1, were arrested Tuesday charged with issuing two false certificates of deposits ... (Omaha Daily Bee 1921-07-28).
Source
newspapers
6. September 29, 1921 Other
Newspaper Excerpt
Protecting their depositors ... former officers ... have deposited ... mortgages ... to insure full payment of all the bank depositors. A contract agreement between Receiver Chapman and the former officers has been drawn up. (Julesburg Grit-Advocate 1921-09-29).
Source
newspapers
7. June 22, 1923 Other
Newspaper Excerpt
Federal Judge Woodrough today took the case against Harvey I. Babcock, John R. Wertz and T. M. Johnson from the jury and dismissed the trio ... testimony tended to show that the defendants had done all within their power to save the institution. (Julesburg Grit-Advocate 1923-06-28).
Source
newspapers

Newspaper Articles (5)

Article from The Julesburg Grit-Advocate, January 20, 1921

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Article Text

FIRST NATIONAL BANK CLOSES ITS DOORS The First National Bank of Chappell, Nebraska has closed its doors waiting the action of the National Bank Examiner as to its further activities and resuming of business in the next 30 days. The inability to collect on its customers notes who insist upon the markets strengthening before they will dispose of their wheat in the bin and elevators has caused this suspension. Talking with the present Cashier and President of said bank they assure us all of the depositors will be paid in full. The Bank affairs are regular and in good shape but the inability to force the collections of reliable wheat growers obligations to the Bank has hindered the banks


Article from Omaha Daily Bee, July 28, 1921

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Article Text

Two Bankers Held In Chappell Failure Harvey I. Babcock and Frank A. Burling, president and cashier of the First National bank at Chappell, Neb., which went into the hands of a receiver, January 1, were arrested Tuesday charged with issuing two false certificates of deposits on May 6, 1920, for $5,000 each, when no money had been paid into the bank. Burling, arrested in Lincoln Tuesday, is charged directly with issuing the certificates to Joseph W. Johnson. Babcock, named for aiding and abetting, was taken in custody at Chappell. Both men furnished bond in the sum of $10,000 each, for appearance before the grand jury in Omaha next fall.


Article from The Julesburg Grit-Advocate, September 29, 1921

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Article Text

BANK DEPOSITORS ARE TO BE PAID UP IN FULL Protecting their depositors. Messrs. John R. Wertz, William Wertz, and H. I. Babcock and T. M. Johnson, former officers of the Chappell (Nebr.) First National Bank have deposited with Francis A. Chapman, the Bank's receiver mortgages on real estate sufficient in values to insure full payment of all the bank depositors, according the current issue of the Chappell Register. A contract agreement between Receiver Chapman and the former officers has been drawn up. Any doubt that may have existed in the minds of the depositors as to the extent of their reinbursement for their loss by


Article from The Julesburg Grit-Advocate, June 15, 1922

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Article Text

This is a Wonderful Age REAL OLD-FA PRESIDENT OF IONED CELE CHAPPELL BANK TION TO B IS REARRESTED A real old-fashioned ce Federal warrants charging obstrucbe staged in Julesburg Ju tion of justice may be issued for the auspices of the Jule prominent county and city officials teer Fire Department. of Chappell, Nebr., in connection with committees are as busy the probe of the failure of the First National bank of that town, it was making plans for the and a program consisting reported Wednesday. of entertainment feature This is the latest and most sensaprepared. It is planne tional development in the bank scan the program in detail in dal expose since the finding a few of this paper. However days ago of $50,000 worth of notes which had been buried in a coffee can sure you that there will doing the entire day and in the chicken coop at the home of At a special meeting John R. Wertz, indicted president of council held last Thurs the defunct bank. the council officially tu Complaint has been made to departtown over to the Firer ment of justice officials that Francis Fourth, and the fire bo A. Chapman of Denver, who is recomplete charge of the ceiver for the bank, and his assistant, No time and effort is be Ralph S. Pryce, were threatened by make this celebration th Wertz last week. with mob violence best ever held anywhere unless they left Chappell immediately. of the country Chapman and Pryce have declared they will stick on the job until the There will be street S men who wrecked the bank are in the water fight, patriotic s penitentiary. Meanwhile, the comade, basket picnic at cour munity is split into two factions band concerts by the Ju BAND CONCERT HURCH CORNER Wertz and anti-Wertz. A number of cert Band, free attractic operatives of the department of jusbig feature balloon ascen tice, under the direction of Special DRAWS LARGE STONE ELAID at Lowe's hall and on a S Agent M. Eberstein, who is in charge ed bowery, grand display of the investigation, are busy on the etc. There will be goo ATTENDANCE case. Some are working openly and amusement for everybod SUNDAY, JUNE1 some under cover. Further and more Arrangements are be decorate Julesburg as sensational developments are predictLast Tuesday evening a large audiNext Sunday afternoon, June 18th, ed within the next few days. and all our citizens are ence enjoyed the concert given by the 2:30 o'clock the corner stone of the orate their homes. It Announcement that a part of the Julesburg Concert Band at the court Methodist Episcopal Church of there not be a single hon documentary evidence stolen from the house park. Promptly at eight o'clock Springs will be laid. A large bank, after eleven men had been inthe concert opened with a march and that is not flying Old nber of guests are expected to be Fourth. The business played a continuous concert for forty. dicted for wrecking the institution, sent. Rev. Dr. Melvin E. Gilbert, business streets will be five minutes. A similiar concert will had been found in the Wertz chicken Kearney, Nebr., the district superbe given next Tuesday evening, June grand style with flags, coop and that Wertz, already under endent of the Kearney district has 20 commencing promptly at eight indictment, had been rearrested and special lighting effects. n invited to be present and lay the residing in Julesburg is o'clock sharp. Following is the procharged with "extracting valuable pane. The program of the day will operate in doing their gram for next Tuesday evening's pers and converting same to his own as follows: concert: otic decorating. Show use," shook the community from cen ter to circumference. 0:00 A. M.-Sunday School at Robinson's Grand Entree' otic spirit on Independen March ich a full attendance is urged. Fox Trot 'Tucky Home" Preparations are being John Wertz is the big man of Chap'Revelry' 1:00 A. M.-Morning Worship. pell. He is considered one of the Overture comodate the largest cro 'Leave Me With A Smile' mon by the pastor or one of the Fox Trot visited our city in one da wealthiest if not the wealthiest man ests. "Mooning" Serenade ous lawns in Julesburg W in the community. He owns a big "Nobody's Baby' Fox Trot a open to the visitors and 2:45 A. M.-Community basket part of the town and county, he is "Silver Cliff" March made to make the visit ner in Railway park to which political power and the present adrybody is cordially invited. home. Julesburg has th ministration is commonly spoken of putation of being a tow :30 P. -Band concert and recog as the Wertz ring. County Attorabundance of shade. ney Pfeiffer has been retained to deion of Sunday School classes LOCAL NEWS AND :30 P. Corner stone laying A cordial invitation fend him in the criminal cases growing out of the bank failure. :00 P. M. Evening Worship. the people of this sectio eaker to be announced. Recovery of the $50,000 worth of Julesburg and celebrate PERSONAL ITEMS notes, which were a part of the bank where you will be assur Big Springs and vicinity has made records upon which Wertz, Vice Presing an enjoyable day remarkable record this spring in B. N. Kellogg shipped two car loads ident Harvey I. Babcock, Cashier Watch the next issue way the work of building the new of hogs to the Omaha market last Frank A. Burling and eight others urch has been done. On March 6th for the complete progra Friday. were indicted, was the direct result work of wrecking the old frame County assessor J. A. McClary of of a tip given Assistant Receiver Pyce lding was begun. All the labor custody by Deputy Unite Sedgwick, was a county seat business by Eugene Dennis, the 'Kansas Wonshal Mandervill. He was s donated. In three days the Church visitor Wednesday der Girl," a few weeks ago. With the s completely wrecked, the lumber der bond of $10,000 sup Mrs. Mary Miller left Wednesday skilled investigators, who were on the s cleaned of nails and piled on the cock and County Attorne case, unable to find a trace of the for Gering, Nebr., for a few days' ck of the lot. The excavation was Remainder of Docume visit with relatives and friends. papers which had mysteriously disapmediately begun, and completed in Destroyed. Miss Mae Smith of Denver, returnpeared from the bank, Pryce came to remarkably short time. Each day "Love of the almighty ed to her home last Saturday, after Denver to consult the Wonder Girl.' re were from fifteen to thirty men clared by investigators having spent several days here lookDescribed House Where Search Is the job. Each noon the ladies of responsible for the saving ing after business interests. Conducted. community served a splendid dinfound in Wertz' chicken Mrs. Maggie Burke, who had been She told him the papers were hidin the basement of the parsonage point out that these no in Julesburg for several days looking den in a certain house in Chappell, all the ladies served forty dinners only evidence stolen wh after business interests, returned to described the men who were implid fed over five hundred hungry men apparent monetary valu her home in Denver last Friday. cated in the theft, and then told him lieve the remainder of t the improvised dining room. Mr. and Mrs. J. G. Cavender reone of the members of the gang would uments have been destro After the excavation was completed turned home the first of this week 'squeal" on the others. the theory that whoeve work of putting in the footings from a several weeks' trip spent at The residences of Babcock and documentary evidence d wells was begun. Under the lead Rochester, Minnesota and St. Joseph, Wertz look almost exactly alike. because they believed Mo. ship of the pastor, Rev. Louis H. Pryce thought the girl had described able to cash in on them ub, who fortunately has had buildMiss Grace Fisher has been spendthe Babcock residence the he believes time. : experience and readily reads the ing the past week visiting with rela. now it was the Wertz house she had Babcock has been te prints, the building was laid out tives and friends at Scottsbluff, in mind. He searched the Babcock times by department of a the concrete footings run in place. Nebr. and Denver. She returned Wedhome with the owner's permission but but maintains he knows e pastor worked daily with his men nesday evening. found no papers. In the furnace, detheft of the papers nor en Rev. Kaub put the men to buildThe Young People's Bible Class of tectives said, there was a charred hidden in the Wertz chi < the cement wall forms and in a the Church of Christ enjoyed a weinie mass of papers, as tho a bundle of Babcock is one of the markably short time the wells were roast at the river last Monday evenbooks had been burned. in the Methodist church mplete to the water table line. At ing. This is reported as a very enand is a teacher in the The following Mondayelevation level the concrete drops joyable occasion. Before its failure the b Harry Wilson, one of Receiver Chapck five inches to allow for the Mr. and Mrs. Fred B. Wilson exthis sign: man's clerks at the bank, received an ick veneer. From the water table pect to leave tomorrow (Friday) via "Christ is the head of anonymous note which said: up the walls will be entirely of auto for Gering, Nebr., for a few Rumors were current "You'll find valuable papers in J. ck and tile. Rev. Kaub and his days' visit with relatives and friends. that the governor of Ne R. W.'s chicken coop. buried in a tin rkmen are to be congratulated upcan. They will return home Sunday, acbe asked to order an imn their success in constructing these companied by Mrs. Wilson's mother, On June 7, Pryce received a similar tigation of the alleged lls. The angles are erect, the walls note which also said: Mrs. Mary Miller, who went to Gering certain county officials aight and plumb and flawless. The Wednesday. "He's the guilty one. Get him. of the indicted banker, ntractors who are completing the large crowd attended the open air also would be asked to One June 8, Receiver Chapman reurch are well pleased with the walls band concert at the court house lawn leged refusal of officials ceived a letter from an annoymous inon which they are to begin their Tuesday evening, and were rewarded formant, giving the same information partment of justice rk. but in more detail. with a splendid program rendered by investigation.In all, it is figured that the donated the Julesburg Concert Band under After Pryce received his note, Speor was worth over thirteen hundred the leadership of Prof. L. D. Smith of cial Agent Thomas F. Mitchell of the Miss Nicholson Sterling. Another concert will be d fifty dollars. The donated dindepartment of justice, at the direction rs were worth more than two hungiven by the band next Tuesday evenMarried in of Agent Eberstein, went to Omaha ed and fifty dollars and the team ing, June 20th. and the public in genand procured a search warrant authrk which was also donated amount eral is cordially invited to attend. orizing him to search the Wertz premThe wedding of Miss to over one hundred dollars. A base ball game will be played ises. He returned to Chappell last son, daughter of Mr. an here next Sunday. June 18th, between Merse and Doran of Ogallala. have Friday noon. Accompanied by EberNicholson and Lawrence the Ovid and Julesburg teams. Julesen awarded the contract to practistein and Pryce, he called on Wertz Omaha, will take place burg will have a new line-up in this lly complete the church. The and asked permission to search his June 21st, in Omaha. game, and are laying plans to give the ilding will be a splendid brick premises. Wertz, the officers reporter Callahan of St. Bridg visitors a trimming. On the other urch, having a seating capacity of ed, refused their request, whereupon church will perform the hand the Ovid athletes are figuring ur hundred. The basement will be they produced their search warrant. Miss Alice Gavin of on putting up a hard battle, with the ge, light and splendidly arranged Armed with spades, they proceeded to be the bride's attendant, expectation of going home with the dig in the chicken coop. Sunday School and Social purposBusch of Omaha will be bacon. This promises to be a good After an hour's digging Pryce's The bride is a gradua game and the local fans are urged to The new church has been greatly spade uncovered a three-pound coffee ton University of Oma be in attendance. can which had been buried under six eded for a long time. The old taught school near Om inches of earth directly under a nest. fucture was totally inadequate for two years. In the can was a bundle of notes been the most gratifying of his experrapidly growing society The The couple will liv ience. having a face value of $50,000. w Church will be one of the best groom's parents until th "That's the first time I ever saw Rev. L. H. Kaub came to Big nned church plants in western Neis finished, where they W those,' protested Wertz as he denied Springs last November. He came aska and constructed at a very nomhome in Omaha. directly from Boston, Mass., where he any knowledge of how they came to al figure. be there. The canvass for the church is not and Mrs. Kaub had been doing postThe Chappell Booster graduate work. Rev. and Mrs. Kaub A search of the house followed, but the Farmers' Picnic to t complete. The response has been no trace could be found of any addiare alumni of Baker University, at markable. The pastor recently said Chappell June 19, were tional papers. Baldwin, Kansas, and Rev. Kaub is an at the spirit of co-operation and today. The Chappell A federal warrant was then sworn alumnus of Boston University School panied them and furnishe nerous, even sacrificial giving which out for Wertz and he was taken into did music. of Theology. s been manifest throughout has TOWN BANK HILESBURG NK COLORADO GOOD


Article from The Julesburg Grit-Advocate, June 28, 1923

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Article Text

JUDGE DISMISSED CHAPPEL BANK CASE DEFENDANTS North Platte, Nebr., June 22.-Federal Judge Woodrough today took the case against Harvey I. Babcock, John R. Wertz and T. M. Johnson from the jury and dismissed the trio, declaring that instead of the charge of conspiracy with intent to wreck the First National Bank of Chappell being substantiated by the evidence, testimony on the contrary had tended to show that the defendants had done all within their power to save the institution. After the government had rested its counsel for defendants askthe ed that case, charge be dismissed, had been con- intending that no evidence troduced to warrant conviction. Then Judge Woodrough declared defense counsel's statement that Babcock and others had done all within their power in the interests of the bank to have been proved by the testimony of the government's witnesses. refused to proceed further and ordered the jury to return a "not guilty" verdict. The case attracted widespread attention not only because of the prominence of the defendants. but also on account of the rather unique methods sometimes employed. Ralph S. Pryce, assistant receiver for the bank, is said to have employed a "wonder in Denver to certain records. cating girl" assist him He claims in lothis young woman. said to be endowed with supernatural powers, gave him information that assisted in recovering many valuable ledgers and other books of data. Pryce was accused of permitting the records to get out of his possession, "either negligently or intentionally.' One exhibit offered by the government showed that Wertz, Johnson and Babcock had borrowed $25,000, giving their personal security, and placed the sum in the bank without making any charge against that institution. This money, it was shown, never had been repaid and never had been demanded. Evidence showed that had it not been for the deflation of values and the sudden drop in the price of wheat in 1919 and 1920, this bank would not have failed. Babcock actively engaged in operating the bank. Wertz and Johnson, principal stockholders, for thirty-five years have been prominent figures in the development of western Nebraska.-Omaha World Herald.