13186. Capital National Bank (Lincoln, NE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
2988
Charter Number
2988
Start Date
January 1, 1891*
Location
Lincoln, Nebraska (40.800, -96.667)

Metadata

Model
gpt-5-mini
Short Digest
363b9aa2

Response Measures

None

Description

Multiple articles state the Capital National Bank of Lincoln closed in 1891 after fraud by President Charles Mosher; a receiver (Hayden) was appointed and later sued stockholders to recover unearned dividends. No contemporaneous run is described. Classified as suspension_closure (bank suspended/closed and placed in receivership).

Events (2)

1. January 1, 1891* Receivership
Newspaper Excerpt
Receiver Hayden of the Mosher bank has now brought suit against these stockholders to force them to return the dividends paid by Mosher; Receiver Hayden ... has just returned from Chicago, where they took Mosher's testimony in the case.
Source
newspapers
2. January 1, 1891* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed following major fraud/theft by president Charles Mosher; bank insolvent due to misappropriation of funds and unearned dividends.
Newspaper Excerpt
His bank closed in 1891.
Source
newspapers

Newspaper Articles (15)

Article from The State Herald, December 21, 1894

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SHERIFF'S SALE. Notice in hereby given that by virtue of a write if special execution or lien foreclosure issued at of the district court of Logan county Colo., inted November 17 1891 and directed to me as heriff of Phillips county Colorado in favor of dra A P Sheriff first name unknown plaintiff and against Andrew c Snowberger and Mrs Anfrew C Snowberger his wife first name unknown Capital National Bank of Lincoln Nob a corporition organized and doing business under the aws of U 8 of America Kont K Haydon receiver it said bank Stark & Monher Arthur M Stark and Edwin W Mocher defendants for the sum of #700 damages and $27 cost and attorneys fees of $73.50 and accruing cost whereby I am commanded to sell the following described real our Date to-wit: The ne % see 30 tp 8 n r 43 W 6 D in in Phillips county Colo together with the tenements and hereditements thereto belonging To entiefy said amounts I Shall offer said premises for sale at public auotion on Saturday the 22 day of December 1891 at the hour of 17 o'elock " III at the front door of the court house in Holyoke Phillips county Colo to the highest and best bidder therefor Dated this 24 day of Nov 1891 ATOU THRIE Sheriff.


Article from The Sun, June 21, 1897

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$500,000 OF STOLEN MONEY. Suing Seventy-five Bank Stockholders for Money Paid Them as Dividends. LINCOLN. Neb., June 20.-Nearly 100 moneyed men of Illinois, scattered over the State from Chicago to East St. Lonis, many of whom reside at Peoria and Galesburg, have been made defendants in national bank litigation. It is another chapter in the famous case in which Charles Mosher, President of the defunct Capital National Bank of this city, figured to the extent of stealing something over $1,000,000, and served five years in the penitentiary for it. His bank closed in 1891. Ten years prior to that time the Capital National had been paying dividends amounting in the aggregate to $500,000. The stockholders were mostly Illinois men. Receiver Hayden of the Mosher Bank has now brought suit against these stockholders to force them to return the dividends paid by Mosher because they were not earned. but were paid out of the money of the depositors. ile says the books show that the bank never made a dollar. Mosher paid big dividends , help his other schemes, which contemplated corrowing heavily of the Illinois investors. efloated the Western Manufacturing Company for $1,000,000 on the strength of the reputation he had established as a sound financier through Illinois. The thing was a fizzle. A similar suit has just been decided here against a New York stockholder, Mr. H. Ward Howard of New York city. who must return $26,000 paid to him in dividends by Mosher. Receiver Hayden, J. W. Deweese, Charles Magoon, J. H. Ames, and G. M. Lambertson have just returned from Chicago, where they took Mosher's testimony in the case. Seventy-five Illinois stockhoidersare involved. Mosher declares that the dividends were earned, and that if the books do not show it they have been mutilated since he left the bank. The law is clear that if the dividends were unearned they must be returned to reimburse the depositors for money stolen. Mosher is now living in Chicago.


Article from Kansas City Journal, June 21, 1897

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STOCKHOLDERS SUED. Attempt to Be Made to Force Them to Return Unearned Bank Dividends. acoin, Neb., June 20.-Nearly 100 moneyed men of Illinois, scattered over the state from Chicago to East St. Louis, many of whom reside at Peoria and Galesburg. have been made defendants in what is likely to prove the most sensational national bank litigation ever instituted in the West: the next chapter in the famous case in which Charles Mosher, president of the defunct Capital National bank, of this figured to the extent of stealing something over a million dollars. His bank closed in 1891. Ten years prior to that time the Capital National had been paying immense dividends, amounting in the aggregate to $500.000. The stockholders were mostly Illinois people. Receiver Hayden, of the Mosher bank, now has brought suit against these stock-, holders to force them to return the Jividends paid by Mosher, on the ground that they were not earned, but paid out of the money of the depositors. He says that the books show that the bank never made a dollar. A similar suit has just been decided here against a New York stockholder, H. Ward Howard, of New York city, who must return $28,000 paid to him in dividends by Mosher. Receiver Hayden. J. W. Deweese, Charles Magoon, J. H. Ames and H. M. Lamberson have just returned from Chicago, where they took Mosher's testimony in the case. Mosher declares that the dividends were earned. and that if the books do not show it, they have been mutilated since he left the bank. The law is clear that if the dividends were unearned they must be returned to reimburse the depositors. Mosher is now living in Chicago, it is said, in regular style.


Article from The Wilmington Daily Republican, June 21, 1897

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BANK STOCKHOLDERS SUED. Receiver Says Dividends Were Paid With Depositors' Money. Lincoln, Neb., June 21. - Nearly a hundred moneyed men of Illinois, scattered over the state from Chicago to East St. Louis, many of whom reside at Peoria and Galesburg, have been made defendants in what is likely to prove the most sensational national bank litigation ever instituted in the west, the next chapter in the famous case in which Charles Mosher, president of the defunct Capital National bank, of this city, figured to the extent of stealing something over $1,000,000. His bank closed in 1891. Ten years prior to that time the Capital National had been paying immense dividends, amounting in the aggregate to $500,000. The stockholders were mostly Illinois people. Receiver Havden, of the Mosher bank, now has brought suit against these stockholders to force them to return the dividends paid by Mosher, on the ground that they were not earned, but were paid out of the money of depositors. He says that the books show that the bank never made a dollar. Similar suit has just been decided here against a New York stockholder, H. Ward Howard, of New York city, who must return $28,000 paid him in dividends by Mosher. Mosher declares that the dividends were earned. and that if the books do not show it they have been mutilated since he left the bank. The law is clear that if the dividends were unearned they must be returned to reimburse the depositors. Mosher is now living in Chicago, it is said, in regal style.


Article from The Evening Herald, June 21, 1897

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BANK STCCKHOLDERS SUED. Receiver Says Dividends Were Paid With Depositors' Money. Lincoln, Ncb., June 21. - Nearly a hundred moneyed men of Illinois, seattered over the state from Chicago to East St. Louis, many of whom reside at Pecria and Galesburg, have been made defendants in what is likely to prove the most sensational national bank litigation ever instituted in the west, the next chapter in the famous case in which Charles Mosher, presedent of the defunct Capital National bank, of this city, figured to the extent of stealing something over $1,000,000. His bank closed in 1891. Ten years prior to that time the Capital National had been paying immense dividends, amounting in the aggregate to $500,000. The stockholders were mostly Illinois people. Receiver Havden, of the Mosher bank, now has brought suit against these stockholders to force them to return the dividends paid by Mosher, on the ground that they were not earned, but were paid out of the money of depositors. He says that the books show that the bank never made a dollar. Similar suit has just been decided here against a New York stockholder, H. Ward Howard, of New York city, who must return $28,000 paid him in dividends by Mosher. Mosher declares that the dividends were earned, and that if the books do not show it they have been mutilated since he left the bank. The law is clear that if the dividends were unearned they must be returned to reimburse the depositors. Mosher is now living in Chicago, it is said, in regal style.


Article from The Morning News, June 21, 1897

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SUITS TO RECOVER DIVIDENDS. Half a Million Dollars in a Western Bank Case. St. Louis, Mo., June 20.-A special to the Republic from Lincoln, Neb., says: "Nearly 100 moneyed men of Illinois, scattered over the state from Chicago to East St. Louis, many of whom reside at Peoria, have been made defendants in what is likely to prove the most sensational national bank litigation ever seen in the west; The suit is the next chapter in the famous case in which Charles Mosher, president of the defunct Capitol National Bank of this city, figured to the extent of stealing something over a. millon dollars. His bank closed in 1891. The years prior to that time the Capitol National Bank had been paying immense dividends, amounting in the aggregate to $500,000. The stockholders were mostly Illinois people. Receiver Hayden of the Mosher bank, has now brought suit against these stockholders to force them to return the dividends paid by Mosher on the ground that they were not earned, but were paid out of the money of the depositors. He says that the books show that the bank never made a dollar. "A similar case has just been decided against a New York stockholder, H. Ward Howard of New York city, who must return $28,000 paid to him in dividends by Mosher. "Receiver Hayden, J. W. Dewees, Charles Magoon, J. H. Ames and H. M. Lamberson have just returned from Chicago, where they took Mosher's testimony in the case. Mosher declares that the dividends were earned and that if the 'books do not show it, they have been mutilated since he left the bank. The law is clear that If the dividends were unearned, they must be returned to reimburse the depositors. Mosher is now living in Chicago, it is said, in regal stlye."


Article from Rock Island Argus, June 21, 1897

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HARD ON THE STOCKHOLDERS. Illinois Men May Have to Give Up Half Million Dollars. St. Louis, June 21.-A special to The Republic from Lincoln, Neb., says: "Nearly 100 moneyed men of Illinois, scattered over the state from Chicago to East St. Louis, many of whom reside at Peoria and Galesburg, Ills., have been made defendants in what is likely to prove the most sensational national bank litigation ever instituted in the west-the next chapter in the famouscase in which Charles Mosher, president of the defunct Capital National bank of this city, figured to the extent of stealing something over $1,000,000. His bank closed in 1891. Ten years prior to that time the Capital National had been paying immense dividends, amounting in the aggregate to $500,000. The stockholders were mostly Illinois people. Receiver Hayden, of the Mosher bank, now has brought suit against these stockholders to force them to return the dividends paid by Mosher on the ground that they were not earned, but were paid out of the money of the depositors. He declares the books show that the bank never made a dollar. The law is clear that if the dividends were unearned they must be returned to reimburse, the depositors. Mosher is now living in Chicago, it is said, in regal style.


Article from The Saint Paul Globe, June 21, 1897

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DIVIDENDS UNEARNED. Suits Begun to Compel Their Return. LINCOLN, Neb., June 20.-Nearly one hundred moneyed men of Illinois scattered over the state from Chicago to East St. Louis, many of whom reside at Peoria and Galesburg, have been made defendants, in what is like. ly to prove the most sensational national bank litigation ever instituted in the West; the next chapter in the famous case in which Charles Mosher, president of the defunct Capital National bank of this city, figured to the extent of stealing something over a million dollars. His bank closed in 1891 Ten years prior to that time the Capital National had been paying immense dividends, amounting in the aggregate to a half million of dollars. The stockholders were mostly Illinois people. Receiver Hayden, of the Mosher bank, now has brought suit against these stockholders to force them to return the dividends paid by Mosher on the ground that they were not earned, but were paid out of the money of the depositors. He says that the books show that the bank never made a dollar. A similar suit has just been decided here against a New York stockholder, H. Ward Howard, of New York city, who must return $28,000 paid to him in dividends by Mosher. Receiver Hayden, J. W. Deweese, Charles Magoon, J. H. Ames and H. M. Lamberson have just returned from Chicago, where they took Mosher's testimony in the case. Mosher declares that the dividends were earned and that if the books do not show it they have been mutilated since he left the bank. The law is clear that if the dividends were unearned they must be returned to reimburse the depositors. Mosher is now living in Chicago, it is said, in regal style.


Article from The Seattle Post-Intelligencer, June 22, 1897

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SENSATIONAL BANK CASE. Suit Against Stockholders for Unearned Dividends. ST. LOUIS, June 21.-A special to the Republic from Lincoln, Neb., says: Nearly 100 moneyed men of Illinois, scattered over the state from Chicago east to St. Louis, many of whom reside at Peoria and Galesburg. have been made defendants in what is likely to prove the most sensational national bank litigation ever instituted in the West, the next chapter in the famous case in which Charles Mosher, president of the defunct Capital National bank. of this city, figured to the extent of stealing something over $1,000,000. His bank closed in 1891. Ten years prior to that time the Capital National bank had been paying immense dividends. amounting in the aggregate to $500,000. The stockholders were mostly Illinois people. Receiver Hayden, of the Mosher bank, now has brought suit against the stockholders to force them to return the dividends paid by Mosher, on the ground that they were not earned, but were paid out of the money of the depositors. He says that the books show that the bank never made a dollar. A similar suit has just been decided here against a New York stockholder, H. Ward Howard, of New York city, who must return $28,000 paid to him in dividends by Mosher. Receiver Hayden, J. Deweese, Charles Magooh, J. H. Ames and H. M. Lamberson have just returned from Chicago, where they took Mosher's testimony in the case. Mosher declares that the dividends were earned, and that if the books do not show it, they have been mutilated since he left the bank. The law is clear that if the dividends were unearned they must be returned to reimburse the depositors. Mosher is now living in Chicago, it is said, in regal style.


Article from Semi-Weekly Register, June 23, 1897

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SUITS AGGREGATE $500,000 Receiver of a Nebraska Bank Wants Unearned Dividends Returned. LINCOLN, Neb., June 21.-Nearly 100 moneyed men of Illinois, scattered over the state from Chicago to East St. Louis, have been made defendants in what is likely to prove the most sensational national bank litigation ever instituted in the West; the next chapter in the famous case in which Charles Mosher, president of the defunct Capital National bank of this city, figured to the extent of stealing something over $1,000,000 and for which he is now serving five years in the penitentiary. His bank closed in 1891. Ten years prior to that time the Capital National had been paying immense dividends, amounting in the aggregate to $500,000. The stockholders were mostly Illinois people. Receiver Hayden of the Mosher bank now has brought suit against these stockholders to force them to return the dividends paid by Mosher on the ground that they were not earned, but were paid out of the money of the depositors. He says that the books show that the bank never made a dollar.


Article from Elmore Bulletin, June 23, 1897

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A BIG SUIT EXPECTED. Another Umpter in the Capital National Bank Steal at Lincoln, Neb. Linceln, Neb., June -Nearly 100 moneyed men of Illinois, scattered over the state from Chicago to East St. Louis, many of whom reside at Peoria and Galesburg, have been made defendants in what is likely to prove the most sensational bank litigation ever instituted in the west; the next chapter in the famous case in which Charles Mosher, president of the defunct Capital National bank of this city, figured to the extent of stealing something over a million dollars. His bank closed in 1891. Ten years prior to that time, the Capital National had been paying big dividends, amounting in the aggregate to half a million dollars. The stockholders were mostly Illinois people. Receiver Hayden of the Mosher bank now has brought suit against these stockholders to force them to return the dividends paid by Mosher, on the ground that they were not earned but were paid out of the money of the depositors. He says that the books show that the bank never made a dollar. A similar suit has just been decided against a New York stockholder, H. Ward Howard, who must return $28,000 paid him by Mosher.


Article from The Enterprise, June 23, 1897

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THEY MUST DISGORGE. Dividends Sald to Have Been Illegally Paid to Stockholders of R Broken Bank will Have to be Returned. Lincoln, Neb., June 21.-"Nearly 100 moneyed men of Illinois, scattered over the state from Chicago to East St. Louis, many of whom reside at Peoria and Galesburg, have been made defendants in what is likely to prove the most sensational national bank litigation ever instituted in the west; the next chapter in the famous case in which Charles Mosher, president of the defnnet Capital national bank, of this city, figured to the extent of stealing something over a million dollars. His bank closed in 1891. For ten years prior to that time the Capital national had been paying immense dividends. amounting in the aggregate to $500,000. The stockholders were mostly Illinois people. Receiver Hayden, of the Mosher bank, has brought suit against these stockholders to force them to return the dividends paid by Mosher, on the ground that they were not earned, but were paid out of the money of the depositors. He says that the books show that the bank never made a dollar. A similar suit has just been decided here against a New York stockholder, Ward Howard, who must return $28.000 paid to him in dividends by Mosher. Receiver Hayden, J. W. Deweese, Charles Magoon, J. H. Ames and H. M. Lamberson have just returned from Chicago, where they took Mosher's testimony in the case. Mosher declares that the dividends were earned and that if the books do not show it they have been mutilated. since he left the bank. The law is clear that if the dividends were unearned they must be returned to reimburse the depositors.


Article from The Weiser Signal, June 24, 1897

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SENSATIONAL BANK LITIGATION. Nearly 100 Moneyed Men of Illinois Figure in It. St. Louis, June 21.- special to the Republic from Lincoln, Neb., says: "Nearly 100 moneyed men of Illinois, scattered over the state from Chicago to East St. Louis, many of whom reside at Peoria and Galesburg, have been made defendants in what is likely to prove the most sensational bank litigation ever instituted in the west; the next chapter in the famous case in which Charles Mosher, president of the defunct Capital national bank of this city, figured to the extent of stealing something over a million dollars. "His bank closed in 1891. Ten years prior to that time the Capital national had been paying immense dividends, amounting in the aggregate to $500,000. The stockholders were mostly Illinois people. Receiver Hayden of the Mosher bank has brought suit against these stockholders to force them to return dividends on the grounds that they were paid out of the money of the depositors. He says that the books show that the bank never made a dollar. A similar suit has just been decided here against a New York stockholder, who must 1:4 turn $27,000 paid to him in dividends by Mosher.


Article from Shoshone Journal, June 25, 1897

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A BIG SUIT EXPECTED. Another Chapter In the Capital National Bank Steal at Lincoln, Neb. Linceln, Neb., June 21.-Nearly 100 moneyed men of Illinois, scattered over the state from Chicago to East St. Louis, many of whom reside at Peoria and Galesburg, have been made defendants in what is likely to prove the most sensational bank litigation ever instituted in the west; the next chapter in the famous case in which Charles Mosher, president of the defunct Capital National bank of this civy, figured to the extent of stealing something over a million dollars. His bank closed in 1891. Ten years prior to that time, the Capital National had been paying big dividends, amounting in the aggregate to half a million dollars. The stockholders were mostly Illinois people. Receiver Hayden of the Mosher bank now has brought suit against these stockholders to force them to return the dividends paid by Mosher, on the ground that they were not earned but were paid out of the money of the depositors. He says that the books show that the bank never made a dollar. A similar suit has just been decided against a New York stockholder, H. Ward Howard, who must return $28,000 paid him by Mosher.


Article from Omaha Daily Bee, February 7, 1902

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ON QUESTION OF SOLVENCY Referee in Capital National Bank Case Fixes Date When Insolvency Began. The report of W. D. McHugh, referee in the case of John W. McDonald, receiver, against D. E. Thompson and others, has been filed in the United States circuit court. This case was originally started by Kent K. Hayden, receiver of the Capital National bank of Lincoln, against a number of the stockholders of the defunct bank to secure the payment of $213,000 alleged to have been wrongfully taken from the bank by its officers and paid to the stockholders. In his complaint the receiver contended that for a period of six or eight years the bank had been insolvent and had earned no dividends upon its stock, but that, regardless of this fact, the officers had paid semi-annual dividends in varying sums for the period mentioned, the aggregate being $213,000. The report of the referee, while finding for the receiver, is considered a victory for the stockholders, as he finds that the bank was solvent at all times previous to July, 1891. Since that time the bank was insolvent, but it had paid three dividends, one on July 1, 1891; one of January 1, 1892, and the last July 1, 1892. The amount involved in these dividends is not stated. but an attorney for the receiver estimates it at between $30,000 and $40,000, much of which cannot be recovered, as the parties are not responsible. The attorneys have not announced their course, but it is understood that the receiver will object to an approval of the report, contending that the referee is in error as to the length of time the bank was insolvent before its failure.