1.
May 15, 1927
Nebraska City News Press
Nebraska City, NE
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LITIGATION IN FAILURES
State Bank Receiver gins Action Against Grain Company
The first of what is predicted to be long list civil actions arising from the spectacular failure the Dunbar State Bank and the financial troubles of the Dunbar Grain Company, interlocking concerns insofar as the bank's failure is concerned, was filed in district court Saturday Receiver for the Dunbar State Bank whose president. Thomas Murray, is a much-sought fugitive from justice in dozen states and two or three foreign countries. brought suit Saturday against the Grain Company on three counts. The Bank alleges that the Grain Company, whose manager Burton Gorton faces prosecution on charges. embezzlement amounting to more than had an overdraft of $1,695.36 at the time of the bank's closing, and owes two notes, past due, one for $4,000 and another for $2,500. Stockholders of the grain company are substantial farmers living in and near Dunbar but the summons in the case is directed only against the Dunbar Grain Company.
2.
May 17, 1927
Beatrice Daily Sun
Beatrice, NE
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DUNBAR BANK RECEIVERS FILE THREE
Nebraska City, Nebr., May for the Dunbar States bank filed three suits district court here against the bank the Dunbar Grain company. Thomas Murray, former president of both concerns. fugitive from justice. Burton Gorton,. his held district court charge of embezzling His trial for September 19. One the claim that there an overdraft of against the grain concern held by the bank. The others seek to recover held by the bank, one for and the other for 500.
3.
September 21, 1927
Lincoln Journal Star
Lincoln, NE
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BY
Witnesses in Trial of Dunbar Banker Testify He Speculated Thru Nebraska City Firm. NEBRASKA CITY. Neb., Sept. which used when he was speculating the board of trade were Identified by witnesses this morning in the trial of Burton Gorton. Dunbar. who facing charges of bezzling more than connection with the Dunbar State defunct. Checks the Duff Grain com pany of Nebraska City, Gorton's were identified witnesses teath fied that had specuated on the board trade thru the NeCity grain firm. Concerning the reported confession Gorton the Dunbar Grain board of directors, which of the board, told the court of he and the defendant had some time the Borcherding said he asked Gorton. grain company broke The bank busted and Tom Murray missing president the Dunbar State bank) gone. We all bad Tom have been unlucky. gone, going "Gorton he wanted to make good,' Borcherding continued. said he was willing turn and willing devote the rest of life straightening out The state to complete its case early Wednesday afternoon. The defense not pected to take up much time and thought the jury would given case for deliberation Wednesday night.
4.
April 23, 1928
Lincoln Journal Star
Lincoln, NE
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DUNBAR BANK RECEIVER
E. J. Dempster to Handle State Bank With J. M. Eiser, Commission Agent. NEBRASKA CITY, April 23-E. J. Dempster, member of the state bank deposit guarantee fund commission, has been appointed receiver for the Dunbar State bank. Judge Begley made the appointment on motion of Attorney General Spillman. J. M. Eiser, who has been in charge since the bank closed year ago, will continue in charge until the institution is finally closed. The Dunbar bank was taken over by the state when its president. Thomas Murray, disappeared. Hopes that it would be reorganized are ended by the appointment of receiver. Deposits are no longer accepted and no business has been done for several weeks. The guar anty fund commission recently declared a 22 percent dividend to depositors. Efforts are now being concentrated the as sets of the bank so as to how much the guaranty fund will contribute.
5.
April 23, 1928
Lincoln Journal Star
Lincoln, NE
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DUNBAR BANK RECEIVER
E. J. Dempster to Handle State Bank With J. M. Eiser, Commission Agent.
NEBRASKA CITY, April 23-E. J. Dempster. member of the state bank deposit guarantee fund commission, has been appointed receiver for the Dunbar State bank. Judge Begley made the appoint ment on motion of Attorney General Spillman. J. M. Eiser, who has been in charge since the bank closed a year ago, will continue in charge until the institution is finally closed. The Dunbar bank was taken over by the state when its president. Thomas J. Murray disappeared Hopes that it would be reorganised are ended by the appointment of receiver. Deposits are no longer accepted and no business has been done for several weeks. The guaranty fund commission recently declared 22 percent dividend to depositors. Efforts are now being concentrated on-collecting the as sets of the bank so as to determine how much the guaranty fund will contribute.
6.
April 26, 1928
Nebraska Daily News-Press
Nebraska City, NE
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Omaha Bank Sues Dunbar Institution
Trial of the suit of the United States National Bank of Omaha against the Dunbar State Bank to collect $5,000 on a note which was sold to the Omaha institution by Thomas Murray, former head of the Dunbar bank. was started Wednesday before District Judge James T. Begley. The Dunbar bank, Murray and Henry Kasbohm were named defendants in the original petition Kasbohm. however, was dismissed as one of the defendants by Judge Begley. He alleged that if his signature were on the note in question. it was forgery. The suit is one of a number that have been instituted since the Dunbar State Bank was taken over by the Guaranty Fund Commission more than year ago. The case was continued to May 8 to premit introduction of additional bank records.
7.
September 2, 1928
Nebraska Daily News-Press
Nebraska City, NE
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BEGLEY CLAIMS
Contested Cases Will be Heard at Later Session total of 212 claims of creditors of the defunct Dunbar State Bank was allowed Saturday in District Court by Judge James Begley. These were the claims listed "valid" in the report filed in District Court week ago by Dempster of the Guaranty Fund Commission, and receiver for the bank. Judge Begley entered judgment in favor of the 212 claimants against the Guaranty Fund Commission In the matter of numerous other claims which Receiver Dempster says subject to valid defense, Judge Begley ordered the claimants eto fil petitions in intervention within 20 days, and gave the ceiver until October to answer. Hearing Set for Oct. 30
Hearing on the contested claims was set for 10 October 30. Included among these claims is the of Otoe County. Thomas Murray, former president of the closed bank, who claims total of $15,466.34 as balance due upon checking accounts, has assigned to another party who will seek payment in court contest.
Saturday's hearing on the bank receiver's report attracted number of persons to the court room. Attorneys were conspicuous, nine of them interested in the case.
Dempster Present
Among others present was E. Dempster of Geneva, Neb., receiver for the bank and member of the Guaranty Fund Commission Asked by representative the creditors of the closed bank would receive 100 cents on the lar. Mr. Dempster stated that he could not make any prediction. "Payment will be according to liquidation of assets of the bank," was one comment he made. Another comment was that "the amount of recovery of depositors will depend on the future of the (Turn to Page 2; Col. Please)
8.
December 12, 1928
Beatrice Daily Sun
Beatrice, NE
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Banker Taken From Prison To Testify
Nebraska City, Nebr., Dec. 12 Murray convicted president of the Dunbar State bank, was brought here LILA LEE from state prison yesterday BENNETT to take the witness stand in his case against the state guaranty commission for $15,000 which he claims was on deposit in the bank at the time was taken over by the commission.
Murray tetified the money was held in trust by him to protect Henry Kashohm, the man whose testimony had largely to do with his conviction on forgery charges was for the forgery of the Kasbohm note that Murray was found guilty. This note was sold to the Omaha National bank by Murray, who testified the money placed to his credit in the Dunbar State bank as trustee: Murray is being used as witness in many of the contested claims of bank depositors and will probably remain here during the three day session of court.
9.
February 22, 1929
The Syracuse Journal-Democrat
Syracuse, NE
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LAST DUNBAR BANK CASE
The last case on contested claims was heard before Judge Begley Monday. it was the claim of John T. Mead Sr. for $7500 deposit which Mead claimed should be to his credit because of the mis-handeling of funds by Murray. The receiver received judgement of dismissal at the conclusion of Mead's evidence. Mr. Dunbar was the attorney for Mead and Edwin Moran represented the receiver. The Packers National Bank claim for $5000 was disallowed by the court earller in the day, Shotwell & Ready represented the Packers National and Edwin Moran represented the receiver. A quick summary of the claims contested would be about 2-3 recovery for the claimants and 1-3 for receiver. A number of claims were contested on paper but no attempt made to refute I. Scott, them by evidence. The above case does Smith. not include the Otoe county claim tried Towle, g by Mr. Skiles wherein the facts were admitted and the only question was one of law. All lost claims except a few minor ones have been appealed. Of all the cases growing out of the Dunbar Bank mix-up the bank or receiver made about a 90 percent recovery.
Mr. and Mrs. R. T. Ruegg of Palmyra drove to Lincoln Monday to bring home the personal effects of their son, the late Paul Ruegg, and the suit cases containing them was taken to their car by the hotel porter, who, thinking the car locked. set them beside it. It was a minute or so before they came out to the car and they soon discovered that the grips had been stolen in that time. They contained the personal effects and papers of the young man loss is The ever took the grips.
10.
February 27, 1929
Lincoln Journal Star
Lincoln, NE
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COMMISSION TAKES APPEAL
Nearly $40,000 in Judg ments Against Guaranty Fund. The guaranty fund commission appealed Wednesday supreme court from judgment of Judge Begley that John T. Mead is entitled to $1700 on certificates of deposit in the Dunbar State bank. The receiver resisted on the ground that the claim was filed out of Mead said that he got claim blank from the man in charge, and this was found filed in the Appeal also taken from a finding that held the fund liable for $10,000 additional deposits in the Dunbar These have to do with trust funds that were deposited in the name of Thomas Murray, special and Thomas Murray, trustee, the benefit of the First of Omaha in the sum of $5,000 and in favor of Henry Seyfert, James Murray, Earl Seyfert and H. S. Westbrook in similar There was still another $5,000 claim that was pressed, but the court said the evidence was not sufficient determine the ownership. The receiver claimed these really deposits for the benefit of Murray, who was president, and who later absconded, only to be returned. He said Murray was not entitled to judgment since he owed the bank $40,000. Murray claimed no right in the funds, and the court said that they could not offset against his debt the bank. Appeal was also from an allowance of $28,023 in favor of L. Kelly, county treasurer, on deposit in the same bank. The recelver claimed this was in excess of the lawful amount the treasurer was permitted to deposit, and that the amount is otherwise secured by surety bond that constituted collateral agreement that leases the guaranty fund from
11.
February 27, 1929
Lincoln Journal Star
Lincoln, NE
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TAKES APPEAL
Nearly $40,000 in Judgments Against Guaranty Fund. The guaranty fund commission appealed Wednesday to the supreme court from judgment of Judge Begley that John T. Mead is entitled to $1700 on certificates of deposit in the Dunbar State bank. The receiver resisted on the ground that the claim was filed out of time. Mead said that he had got claim blank from the man in charge. and this was later found filed away in the records. Appeal also taken from finding that held the fund liable for $10,000 additional deposits in the Dunbar bank. These have to do with trust funds that were deposited Murray, in the name of Thomas special and Thomas Murray, trustee. for the benefit of the First National bank of Omaha in the sum of $5,000 and in favor of Henry Seyfert, James Mur ray, Earl Seyfert and H. West brook in similar sum. There was still another $5,000 claim that was pressed. but the court said the evidence sufficient to determine the ownership. The ceiver these were really deposits for the benefit of Murray, who was president, and who later only to be returned. He said Murray not entitled any judgment since he owed the bank $40,000. Murray claimed no right in the funds, and the court said that they could not be offset against his debt to the bank. Appeal was taken from of $28,023 in favor of Kelly, county treasurer. on deposit in the bank. The receiver claimed this was in excess of the lawful the was permitted to deposit, and that as the amount is secured by surety bond that constituted collateral agreement that leases the guaranty fund from liability
12.
December 2, 1929
Kearney Hub
Kearney, NE
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OFFICIAL AWAITS HEARING
Westbrook Is Arraigned In the County Court.
City, Neb., Dec. not guilty the charge deposit when he bank was insolvent. HenWestbrook, vice president of the failed Dunbar State bank, arraigned in county court Saturday and today awaited preliminary hearing Thursday. Friends furnished the $2,000 ball for him after County Attorney Heinke had objected the suggestion that Westbrook permitted to home on his own recognizance. William H. Pitzer appeared Westbrook's attorney at the The banker's prosecution comes more than years after the closing the Dunbar bank. Thomas president, and Burton Gordon, Murray's are now serving in the state penitentiary charges growing out of the bank crash.
13.
April 11, 1930
Lincoln Journal Star
Lincoln, NE
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COURT DECLINES TO RULE UPON MATTER
Says Only Moot Question Remains About Bank Receiver's Right to Appeal. An order was entered by the supreme court Friday affirming the action of the district court of Otoe county in ordering the receiver of the Dunbar State bank to pay to Henry G. Seyfer, Earl Seyfer, H. S. Westbrook and James Murray $784.70 out of the assets of the bank. The four had filed claims of $4,000, and the remainder of the sum was ordered paid out of the guaranty fund. The claims represented bonafide deposits and the court says the holders of the certificates are entitled to the 22 percent dividend declared, or $784.70. Another controversy between the same parties in which a $5,000 deposit was the stake was dismissed. The court had once before sustained the lower court in ordering the 22 percent dividend paid and giving judgment against the guaranty fund for the remainder. Before the transcript reached the supreme court the claimants asked the district court for premptory order to pay the dividend of $1,100 on the ground that the receiver had failed to supersede the judgment and had not obtained permission to appeal. The district court sustained the motion, and the receiver thereupon perfected a second appeal. In supreme court the claimants renewed the motion to dismiss because the receiver had not obtained permission to appeal, but this was overruled. The court says that the first appeal having been decided, there remains nothing but the moot question of whether the receiver must get permission of the lower court to appeal, and moot questions will not be determined by it. The former order overruling the motion is therefore vacated and the second appeal dismissed at the cost of the receiver.
14.
April 11, 1930
Lincoln Journal Star
Lincoln, NE
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COURT DECLINES TO RULE UPON MATTER
Says Only Moot Question Remains About Bank Receiver's Right to Appeal An order was entered by the supreme court Friday affirming the action of the district court of Otoe county in ordering the receiver of the Dunbar State bank to pay to Henry G. Seyfer, Earl Seyfer, H. S. Westbrook and James Murray $784.70 out of the assets of the bank. The four had filed claims of $4,000, and the remainder of the sum was ordered paid out of the guaranty fund. The claims represented bonafide deposits and the court says the holders of the certificates are entitled to the 22 percent dividend declared, or $784.70. Another controversy between the same parties in which a $5,000 deposit was the stake was dismissed. The court had once before sustained the lower court in ordering the 22 percent dividend paid and giving judgment against the guaranty fund for the remainder. Before the transcript reached the supreme court the claimants asked the district court for a premptory order to pay the dividend of $1,100 on the ground that the receiver had failed to supersede the judgment and had not obtained permission to appeal. The district court sustained the motion, and the receiver thereupon perfected second appeal. In supreme court the claimants renewed the motion to dismiss because the receiver had not obtained permission to appeal, but this was overruled.
The court says that the first appeal having been decided, there remains nothing but the moot question of whether the receiver must get permission of the lower court to appeal, and moot questions will not be determined by it. The former order overruling the motion therefore vacated and the second appeal dismissed at the cost of the receiver.