13089. Farmers State Bank (Hadar, NE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 3, 1921
Location
Hadar, Nebraska (42.105, -97.449)

Metadata

Model
gpt-5-mini
Short Digest
6f1614fa

Response Measures

None

Description

Bank was closed by an examiner (May 3, 1921) and a receiver (B. N. Saunders) was appointed; closure followed discovery of cashier defalcations (William Lefferdink). No run is mentioned. Receiver activity continued into 1922.

Events (3)

1. May 3, 1921 Receivership
Newspaper Excerpt
B. N. Saunders of Norfolk has been aupointed receiver for the bank. ... preparations were under way for prosecution of William Lefferdink, cashier of the Hadar bank.
Source
newspapers
2. May 3, 1921 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed by examiner after discovery of cashier defalcations; prosecution of cashier William Lefferdink was prepared.
Newspaper Excerpt
Lincoln, May 3.-(Special.)Bank closings are becoming ordinary occurences. T. J. McGuire, special investigator ... returned to Lincoln today from Hadar and Hoskins, Neb., where he closed the Farmers' State banks in both towns.
Source
newspapers
3. February 18, 1922 Other
Newspaper Excerpt
Receiver of Hadar Bank Collecting State Loss ... A draft for $48,511.24, half of the sum taken from the fund, has been received. Checks are being sent out to each of the 906 state banks for one-half of the amounts respectively contributed from their guaranty reserves to meet the Hadar obligations. This is the best receivership showing in the history of Nebraska failed banks, the department states.
Source
newspapers

Newspaper Articles (3)

Article from Omaha Daily Bee, May 4, 1921

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Article Text

Farmers' State Banks At Hadar and Hoskins Closed By Examiner Lincoln, May 3.-(Special.)Bank closings are becoming ordinary occurences. T. J. McGuire, special investigator for Attorney General C. A. Davis, returned to Lincoln today from Hadar and Hoskins, Neb., where he closed the Farmers' State banks in both towns. The two towns are only a few miles apart. Herbert H. Barge, cashier of the Hoskins bank, pleaded guilty to defalcations and entered the state prison at Lincoln yesterday. B. N. Saunders of Norfolk has been aupointed receiver for the bank. Before leaving, McGuire stated that preparations were under way for prosecution of William Lefferdink, cashier of the Hadar bank. Barge has a wife and two children. Lefferdink has a wife and one child. "Is the present financial crisis responsible for so much trouble in banks?" McGuire was asked. "Yes to some extent, but general cussedness is responsible for most of it," he said.


Article from Omaha Daily Bee, May 5, 1921

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Article Text

Nebraska Bank Cashier Flees; Accounts Short Cashier of Belvidere Bank Disappears on Same Day Brother Goes to Prison For Defalcation. Lincoln, May 4.-(Special.)--William Barge, cashier of the Farmers State bank, Belvidere, Neb., has disappeared from home, leaving a shortage in his accounts. He left Belvidede last Monday, the day when his brother, Herbert H. Barge, cashier of the Farmers State bank of Hoskins, Neb., entered the state penitentiary here to serve a term for defalcation from that bank, to which he confessed. The disappearance of the second Barge brother was a mystery until yesterday when his wife received a letter from him which said in part: "I am short in my accounts in the bank. I am going away and will not be back." The letter also is said to have admitted a shortage of $2,000 in Barge's account with the Belvidere school district. The letter was mailed on a Northwestern railroad train somewhere on the Norfolk division. J. E. Hart, secretary of the department of finance and revenue, sent Bank Examiner J. R. Riley to take charge of the bank at Belvidere. Riley has reported that he found about $15,000 of what he considered "bad paper," including a loan of $5,000 made to Herbert H. Barge, the brother now in the penitentiary. At the time of the last examination the Belvidere bank had loans of $96,500 and deposits of $85,300. A wave of bank troubles is sweeping over the state, due to "general cussedness," according to Mr. Hart, and not to any general financial troubles in the country. Following the recent closing of the Farmers State bank at Hadar, Neb., it was announced today that William Lefferdink, the cashier. will be prosecuted. C. L. Dort, an assistant attorney general, went to Oshkosh, Neb., today to appoint a receiver for a bank there. Attorney General Davis said last evening that he will leave today for another town which he declined to name to appoint a receiver for a bank.


Article from Omaha Daily Bee, February 19, 1922

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Article Text

Receiver of Hadar Bank Collecting State Loss Lincoln, Feb. 18.-Within a period of six months, 50 per cent of the money drawn from the state guaranty fund last August, to pay depositors in the failed Farmers State bank at Hadar, has been returned to the fund b ythe receiver, B. N. Saunders of Norfolk, the department of trade and commerce announces. A draft for $48,511.24, half of the sum taken from the fund, has been received. Checks are being sent out to each o the 906 state banks for one-half of the amounts respectively contributed from their guaranty reserves to meet the Hadar obligations. This is the best receivership showing in the history of Nebraska failed banks, the department states.