First National Bank - Fremont, NE

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 1974
Charter Number: 1974
Start Date: November 1, 1921
Location: Fremont, Nebraska (41.433, -96.498)

Metadata

Model: gpt-5-mini
Short Digest: 6a601521

Response Measures

None

Receivership Details

Date receivership started: 1921-11-01
OCC cause of failure: Losses

Description

The First National Bank of Fremont failed to open on Nov 1, 1921 and the national bank examiner took charge; deposits had shrunk and loans were uncollectible. The institution was placed in receivership and did not simply reopen under the same charter (a merged/new national bank was later organized). Cause appears to be local agricultural distress and withdrawal of reserves by other banks (local_shock). OCR errors corrected (e.g., dates and names like Ulrioh -> Ulrich).

Events (5)

1. April 26, 1872 Chartered

Source: historical_nic

2. November 1, 1921 Receivership

Source: historical_nic

3. November 1, 1921 Suspension

Cause: Local Shock
Cause Details: Shrinkage of deposits due to agricultural weakness in the community and inability to collect loans; heavy withdrawals including $223,000 by 25 out-state banks reduced reserves; examiner closed bank when deposits fell substantially (from $855,000 to $622,000).
Newspaper Excerpt: The First National bank of Fremont, Neb., failed to open for business Monday. Announcement was made that the bank's affairs are under the direction of Roy E. Smith, national bank examiner.
Source: newspapers

4. November 8, 1921 Receivership

Newspaper Excerpt: Charges Fremont Banker With Fraud Receiver of Defunct Bank Alleges ... in a suit filed in the district court by Bernard Ulrioh, receiver for the defunct First National bank.
Source: newspapers

5. November 21, 1921 Other

Newspaper Excerpt: Plans organization practically perfected for a new national bank in Fremont by a merger of the defunct First National bank, the Commercial National bank and Farmers and Merchants National bank. Funds deposited in the closed First National bank will be released immediately through the regular channels.
Source: newspapers

Newspaper Articles (6)

1. November 1, 1921 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, November 1, 1921

Click image to open full size in new tab

Article Text

First Bank Of Fremont Is Closed National Examiner Takes Over Affairs of Institution Formerly Headed by E.R. Gurney. Depositors to Be Paid The First National bank of Fremont, Neb., failed to open for business Monday. Announcement was made that the bank's affairs are under the direction of Roy E. Smith, national bank examiner. Mr. Smith expressed a hope that the bank may reopen in a few this on of to days, its but officers depends arrange for the immedi- ability ate advances of cash, which is not thought likely. shrinkage of deposits, to over cent amounting Steady 25 per of the shown on hand Septemto on ber $855,000 6, and inability collect loans to meet depositors' demands caused the bank examiner's action. Officers of the bank expressed d belief that depositors will be paid in full. National is the largest bank The to First be involved in Nebraska since the series of bank disasters began several months ago. Managed by Gurney. The bank's embarrassment is an eventual result of the condition into which it fell during the presidency of E. R. Gurney, who managed its affairs from about 1901 until May, 1920. Gurney, during a part of this time and until April, 1921, was president of the Lion Bonding & Surety company of Omaha. He was inthe jury dicted for by alleged Douglas embezzlement county grand in connection with the affairs of the latter company and is now at liberty under bond, awaiting trial. The bank's statement September 6. showed deposits of $855,000 and loans of $691,000. It showed capital of $150,000. surplus, $20,000; bills payable, $58,000 and due federal reserve, $84,000. When it ended business Saturday deposits had fallen to $622,000. The United States National bank of Omaha is a creditor to the extent of nearly $100,000. The Chase National bank of New York claims $44,000 as its due and the Continental and Commercial National bank of Chicago, $43,000. Banks Withdraw Reserve. Since that time deposits have shrunk approximately 25 per cent. One of the heavy demands was that made by 25 out-state banks who maintained a part of their reserve in the Fremont bank. These banks had $223,000 on deposit there September 6 and had cut this amount to $140,000 by the end of last week. "The situation is simply the result of the general situation in an agricultural community," said S. S. Sidner, president of the bank. "The shrinkage of assets in the farming communities created a drain which this bank, already under heavy handicap, was unable to meet. "Let me cite one example: A farmer near Fremont sold a team of horses to a neighbor a year and a half ago for $300. Last week the same man (Turn to Page Three, Column Three.)

2. November 2, 1921 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, November 2, 1921

Click image to open full size in new tab

Article Text

Trust Company Follows in Wake f Fremont Bank / "Assets Frozen Stiffer Than Polar Regions," Says Hart -Receiver Will Be Named. Lincoln, Nov. 1.-(Special.)Secretary Hart of the state department of trade and commerce, on his return from Fremont today, said the assets of the Fidelity Trust company of Fremont are "frozen stiffer than the Polar regions." This is a subsidiary of the First National bank of Fremont, which closed its doors yesterday. The reason for closing the trust company also, Hart said, was that it was financed solely by the bank. The trust company's assets consist of farm mortgages, real estate bonds and real estate. State Takes Charge. R. C. King, chief of the state banking bureau, was sent to Fremont to take charge of the trust ccmpany. Mr. Hart stated that deposits by other Nebraska banks in the First National bank of Fremont are small and that its failure will not cause serious embarrassment to these banks. The trust company was capitalized for $100,000. Frank B. Knapp is president; Frank Koss, vice president, and James A. Donohue, secretary and treasurer. Receiver Named. It has been understood generally that the Fidelity trust has been on thin ice for the last several months and the tumbling of the First National carried the trust company with it. The trust company occupied the same offices as the First National bank and when the latter was closed was a Fidelity notice would posted re-open stating as soon that the as offices could be located. The examiners, however, announced this morning that the business must go into the hands of the receiver.

3. November 8, 1921 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, November 8, 1921

Click image to open full size in new tab

Article Text

Charges Fremont Banker With Fraud Receiver of Defunct Bank Alleges Property Was Conveyed to Wife by Knapp. Fremont, Neb., Nov. 7.-(Special Telegram.)-Frank - B. Knapp, president of the Fidelity Trust company, a banking house which went on the rocks last week, is charged with attempt to cheat and defraud creditors by conveying property to his wife, in a suit filed in the district court by Bernard Ulrioh. receiver for the defunct First National bank. The failed bank holds two notes issued by Knapp, one for $400 and the other for $5,000. The first note for 90 days is past due, while the other one. also 90 days, is not yet due. Ulrich, however, alleges that Knapp is attempting to hinder and delay the collection of debts to the First National by transferring his property. The plaintiff claims to have found the copy of a letter in the effects of the Fidelity Trust company, whose offices adjoined the banking house, addressed to David Yung. In the message, the plaintiff states that he is sending a deed to some property, located in Fremont, and stating that the transfer is being made for the purpose of conveying the property to his wife. The epistle, dated October 24, asks Yung to execute a quit claim deed and return the same. The court house records show the recording of a deed from defendant and wife for real estate. It is generally believed here that this is only the first of a series of legal battles soon to follow in the settlement of the affairs of the First National and the Fidelity Trust.

4. November 22, 1921 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, November 22, 1921

Click image to open full size in new tab

Article Text

Three Frement Banking Houses Will Be Merged Depositors in Defunct Institution Will Get Money at Once-Sufficient Assistance Promised. Fremont, Neb., Nov. 21.-(Special are Telegram.)-Plans organization practically of perfected for the a new national bank in Fremont by a merger of the defunct First National bank. the Commercial National bank and Farmers and Merchants Nationl bank. The total capital will be $300,000 and the surplus $250,000. It is expected to open the new bank next Monday, when the officers and directors will be announced. The name of the new institution will be made public at the same time. The news of the merger and that depositors of the First National bank will recover their money filled Fremont and vicinity with a happiness that was directly opposite to the thick pall of gloom that settled over the city during the trying times of the past few weeks. In addition to the strength of the united institutions, the new bank has the hearty co-operation of the Omaaha clearing house. The federal reserve board had not only offered its co-operation, but has also promised to come to its support with additional funds. The war finance board has offered to advance $500.000 immediately so that the money in unlimited amounts is at hand at the merger. Will Release Money. The reorganized bank will make its home in quarters in the five-story First National bank building, one of the finest banking houses in Nebraska. Officials of the bank will be elected at the first meeting of the board of directors, to take place within the next day or two. Funds deposited in the closed First National bank will be released immediately through the regular channels and business conditions will be greatly benefited. Chief National Bank Examiner L. K. Roberts and Receiver Bernard U1(Turn to Page Three. Column Four.)

5. January 31, 1922 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, January 31, 1922

Click image to open full size in new tab

Article Text

Fremont Banker Denied New Trial and Is Sentenced Frank B. Knapp, Former Head of Fidelity Trust, Given Three to FiveYear Sentence. Fremont, Neb., Jan. 30.-(Special Telegram.)-Frank B. Knapo, former president of the Fidelit Trust company, convicted of embezzlement last week, was today sentenced to the state penitentiary for from three to five years. Attorneys for the defense immediately gave notice of appeal, when their motion for new trial was overruled. Bonds placed at $6,000, pendA ing the fight in supreme court, were furnished by friends. Attorney Murdock, Omaha, asked for a new trial on the ground that there was no deliberate intent to embezzle when the alleged crime was committed. The court, however, stated that the jury was justified in bringing a verdict of guilty with the evidence that was submitted. The fact that funds left in Knapp's care amounting to $3,585, by Stephen Carpenter, 81, were converted to the use of the company, constituted embezzlement, the court declared. Knapp was supposed to purchase liberty bonds for Carpenter, but when the First National bank closed its doors and the Fidelity Trust company followed. no bonds for Carpenter were found by the receiver.

6. July 21, 1933 The Lincoln Star Lincoln, NE

Article from The Lincoln Star, July 21, 1933

Click image to open full size in new tab

Article Text

APPOINTING NEW BANK RECEIVERS Mullen's Cause Shakeup In Employes. general shake-up in receivers of Nebraska's national banks ported under today Arthur Mullen Omaha, Nebraska's democratic for the First National Bank Alliance First Union National bank Fremont have been removed. Mullen said and Edgar Howard had removal of the for the First National at to the way ceivers banks since last March,' Mullen said. Some been on partisan basis. Our assure fair handling of trusts Edgar Marlo of Hemingford was Alliance, Torgeson. Becher of Columbus was appointed Fremont replace George Austin. Harry Hundley of has to Love Craig. No change Craig but Mitchell Gantz will replace Boyd and Metz and Mapes the present attorneys at Mullen said he was informed the changes conference with Comptroller of the Currency O'ConMullen predicted more revisions in the near future.