13261. Nebraska State Bank (Milford, NE)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
November 15, 1929
Location
Milford, Nebraska (40.774, -97.051)

Metadata

Model
gpt-5-mini
Short Digest
92958f3d

Response Measures

Full suspension, Books examined

Other: State department of trade and commerce (state examiner/receiver) took charge; later dividends paid to depositors under receivership.

Description

Newspapers report heavy withdrawals following adverse reports and the bank voluntarily closed in mid-November 1929; the state department of trade and commerce took charge and a receiver was appointed. Later articles describe litigation involving the receiver and worthless notes. This indicates a run leading to suspension and receivership (permanent closure).

Events (3)
1. November 15, 1929 Receivership
Newspaper Excerpt
Secretary Bliss is receiver the First State of Bethany and the Nebraska State Bank Milford. The Milford bank closed Nov. 15, 1929 ... the state department ... took charge of the institution. The Milford bank has filed preferred claim ... (litigation over assets and notes).
Source
newspapers
2. November 15, 1929 Run
Cause
Rumor Or Misinformation
Cause Details
Adverse reports were alleged to have circulated about the bank, prompting steady withdrawals beginning the day before the closing.
Measures
Bank voluntarily closed its doors when cash was exhausted; state department notified.
Newspaper Excerpt
The Nebraska State Bank Milford ... voluntarily closed its doors Friday forenoon. The closing followed on the bank that had started the day before... alleged that some adverse reports circulated the bank Milford, and this resulted first deposit being withdrawn Thursday afternoon. From then there steady withdrawal ... During that about $10,000 in cash paid. But when the supply exhausted and the demands continued there nothing to but close doors.
Source
newspapers
3. November 15, 1929 Suspension
Cause
Government Action
Cause Details
After heavy withdrawals and the bank's voluntary closing, the state department of trade and commerce took charge and placed the bank under supervision/receiver.
Newspaper Excerpt
The state department of trade and commerce Lincoln was promptly notified, and sent to take charge of the institution.
Source
newspapers

Newspaper Articles (7)
1. November 21, 1929 Seward County Independent Seward, NE
Article from Seward County Independent, November 21, 1929

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Article Text

Its Doors Nebraska State Bank Voluntarily Closes After Heavy Withdrawal of Deposits. The Nebraska State Bank Milford, old financial institutions the county, voluntarily closed its doors Friday forenoon. The closing followed on the bank that had started the day before. This the bank in county the past few weeks, first one Tamora. the fourth failure the history the county. alleged that some adverse reports circulated the bank Milford, and this sulted first deposit being withdrawn Thursday afternoon. From then there steady which until nearly noon Friday. During that about $10,000 in cash out. But when the supply exhausted and the demands continued there nothing to but close doors. The state partment trade and commerce Lincoln was promptly notified, and sent to take charge of the institution. While the condition of the bank said have been under time, the state department had felt would be able its salvation, understood, and possibly would it not been for the run. week before bank closed totaling $252,000, and its last balance said have been around $230,000. Its capital stock was $40,000 and surplus of $3,000. plan under since the failure, but whether this will ceed or not hard say at this time. Harry Laipply was the president the time W. Stolz, Koenig, cashier, and Jasper Findley, assistant cashier. Koenig returned from California about June and assumed the position cashier that time. He had with the bank years past. The of of county sum funds deposit in the bank, but this protected by collateral County states. York Bank Closed State Bank doors Monday. had deposits totaling

2. November 28, 1929 Nebraska Signal Geneva, NE
Article from Nebraska Signal, November 28, 1929

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Article Text

"For coaches Total Just why Gartner and Ruhter should Lincoln twice, they seem have done, not but that Here we seven trips to Linby five Probably the five in and they did that the county paid cents mile for the use that car. But that the point. There trains way tween the railroad fare round trip pervisors could have the seven round trips by train at total mileexpense of But they went automobile and charged county up with mere bagatelle that sought seclusion in the capacious mileage pockets of the county supervisors. Supervisor Furry, whose memory once jogged the Democrat, exceedingly busy man. He never thinks of putting less than when he works for the county September he went Hansen about graveling bit road, traveling miles charging, course, 'day's which road. again that But his cil slipped that day on the mileage, slipped the Anyhow his charged twenty But he didn't his pencil on the diem. the old Then September he this time to supervise the spreading of gravel that half of road, and seem he charged for eightmiles course the per diem. According Supervisor Furry's mathemat he makes few more trips Hansen that village drawn limits Hastings But there just another sample spend county money. Supervisor Furry must spend $5 day charge for in looking the gravel on stretch of road just mile long. JEST JOSH. (Fairbury Journal.) Life is funny. man has have license take hunt keep dog. But thank the Lord have carry these licenses with him the driver's cense. Abscess educational tha Wing home from Grand Island, where she taking due to of auxiliary Sweetens the Alexanboys for some goods piano, house Wonder they would sell the piano the cows? big George the Argus which four pounds measured perpenArgus. It's hard account for taste. The Nelson Gazette prints picture and boasts of its fine poorhouse. One Fairbury week convention, regretted that the stormy weather prevented her from making visit our cemetery. And the Journal's frog liked the rainy weather that lasted four days and almost publication Daykin HerTimes and other papers at points west. thing radically and fundamentally with whole college systoday. emphasis in wrong. Scholarship has been pushed aside by suimportance that has been given athletics. one thing, athletics have assumed business importance. Most of our great universities colleges today have professional athletic business managers, trained publicity agents, told, million dolfootball seasons. all this that in keeping with ideals and purThe stadium have dolsign in front of them. College no means from their the blame is attached to this The old grad winning footteam, his the of athletics disciple of uate. me state again that this the real the the cheers and drama color athletics arship to create the mind of the conception of the purpose of education.' Why This Bank Failed. (Seward Independent.) The Nebraska State bank at Milford, one the old institutions county: voluntarily closed doors Friday forenoon. closing followed the bank that started This the second bank close the in the past first the fourth failure history of the county. that some adverse the at this sulted drawn Thursday afternoon. From then steady drawal, continued nearnoon During that time about in cash paid But when the supply exhausted the there nothing to do but close the doors. The state department of trade commerce at Lincoln promptly notified, and take charge of the While condition of the bank have been under for some state felt work out and possib would had it not been for the run. Father Mosler Europe. Rotarian Father Mosler was the speaker evening's when told of his enjoyable abroad, having returned some from tour of the principal countries of Europe. Particuinteresting was the description his visit to birthplace Germany, and brother, he had not seen Father Mosler's trip took him through both sides in world war, yet found back forth best that the fact that the war witnessed the reception of 500 German tourists Paris station by French German national and the visitors were escorted about great city. Europe has the outer and happiness, but derneath there menta. and anguish, says Rev. Mr Mosler. Taxat.on United States joke, compared with war tax burden of world counMr. Mosler his story in way affairs from his brief Shoots Banded Duck. (Friend Sencinel.) While hunting, November Dr. Divoll brought duck carrying leg band number A649393. ported the United States department of agriculture, the following interesting reply: Taft Education Alden.) b.ological survey is in receipt William Taft, one the your recent presidents the United band No. States had, gives unprejudiced school by Pettibone, October one interested educational work should read By means these numbered ponder Here what he metal bands investigamore think about the migrations and more am convinced there is someother facts North being vanced. bands the birds the States Enna Jettick who Success the persons Melodies birds come their Migratory waterfowl have been banded Again bring to you and have Sir Trinidad. song banded Lauder Harry facts concerning being discovered. The Will Sing banded will continhelp this work reporting Sunday, bands come your attenthe number (with designation etc.) date of Over the C. entire recovery the locality. Again thanking your inblue and suppleterest co-operation, mentary stations at seven yours, PAUL o'clock, central standard Chief. rich place and gain Guest.

3. April 8, 1930 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, April 8, 1930

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Article Text

SAYS BLISS CAN'T BE BANKS' RECEIVER Intervenors Allege Claims of First State and the Milford Bank Are in Conflict. petition intervention was filed district court Monday afternoon by Marx, local torney, on behalf Chris Tiernan, Marx and the National Cloak Dress company, depositors in the First State Bethany, which is claimed that Clarence Bliss, secretary the department of trade and cannot act receiver two state banks because their interests diametrically opposed. Secretary Bliss is receiver the First State of Bethany and the Nebraska State Bank Milford. claimed that in May, 1929, M. Koenig, as cashier of the Milford bank, for purpose obtaining some temporary credit for the Milford bank, to the First State Bank of Bethany three notes It claimed that the in good ficondition. alleged that these notes were to face value when known the Milford bank to be without value. claimed that the First State bank of Bethany later accepted three notes to the amount of them worth face value but that Koenig knew them to valueless. Two of the notes were ordered out state bank, is claimed, by bank examiner. The Milford bank closed Nov. 15, 1929, and the First State bank investigated its notes and found and charged them off against Milford bank, said with an agreement with Koenig. The account was restored under threats from an agent the Milford bank's receiver, and draft issued for $10,706.66. result of the issuing of this draft, claimed, and lack of ready funds to meet First State bank was turned the state department. The Milford bank filed preferred against the local institution for the amount and intervenors ask that the amount the notes with be set off in favor of the First State bank of Bethany and that the draft be cancelled and the Bethany bank be given ment for any excess.

4. April 8, 1930 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, April 8, 1930

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Article Text

BLISS CAN'T BE TWO BANKS' RECEIVER Intervenors Allege Claims of First State and the Milford Bank Are in Conflict. A petition of intervention was filed district court Monday ternoon by Marx, local attorney, behalf of Chris Tiernan, Marx and the National Cloak & Dress company, depositors in the First State bank of Bethany, in which it claimed that Clarence Bliss, secretary of department trade and cannot act as receiver of two state banks because their interests are diametrically opposed. Secretary Bliss receiver for the First State bank Bethany and the Nebraska State Bank of Milford. is claimed that in May, 1929, Koenig, as cashier of the Milford bank, for the purpose obtaining some temporary credit for the Milford bank, presented to the First State Bank of Bethany three promissory notes amounting to $7,500. It was claimed that the promissors were in good financial condition. It is alleged that these notes were represented possess value known Milford bank to be without value. It is claimed that the First State bank of Bethany later accepted three more notes to the amount of believing them be worth face but that Koenig knew them to be valueless. Two of the notes were ordered out of the state bank, is claimed, by the bank examiner. The Milford bank closed Nov. 15, 1929, and the First State bank its notes and found them and charged them off against the Milford bank, said with an agreement with Mr. Koenig. The account was under threats from an agent of the Milford and draft issued for $10,706.66. As result of the of this draft, claimed. and lack of ready funds to meet it, the First State bank was turned the state department. The Milford has filed preferred claim against the local institution for the amount and the intervenors that full amount of the notes with interest be set off in favor of the First State bank of Bethany and that the draft and Bethany bank be given a judgment for any excess.

5. April 8, 1930 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, April 8, 1930

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Article Text

BLISS BANKS' RECEIVER Intervenors Allege Claims of First State and the Milford Bank Are in Conflict. petition of intervention was filed district court Monday ternoon by Marx, local torney, on behalf Chris Tiernan, Marx and the National Cloak Dress company, depositors in the First State bank Bethany, in which is claimed that Clarence Bliss, secretary department of trade and commerce, cannot act as receiver of two state banks because their interests are diametrically opposed. Secretary Bliss receiver for the First State bank of Bethany and the Nebraska State Bank Milford. is claimed that in May, 1929. Koenig, as cashier of the Milford bank, for the purpose obtaining some temporary credit for the Milford bank, presented to the First State Bank of Bethany three promissory notes amounting to It was claimed the promissors were in good ficondition. alleged that these notes were represented to possess face value when known Milford bank to be without value. It claimed that the First State bank of Bethany later accepted three more to the amount of believing them worth face value but that Koenig knew them to valueless. Two the notes were the state bank, claimed, by the bank examiner. The Milford bank closed Nov. 15, 1929. and the First State bank investigated its notes and found them and them against the Milford bank, said agreement with Mr. Koenig. account under threats from an agent the Milford and draft issued for $10,706.66. result of the issuing of this draft, and lack of ready funds to meet the First State bank was turned the state The Milford bank has filed preferred claim the local institution for the amount and the intervenors that the full amount of the notes be set off in favor of the First State bank of Bethany and that the draft cancelled and the Bethany bank be given judgment for any excess.

6. April 8, 1930 The Hastings Daily Tribune Hastings, NE
Article from The Hastings Daily Tribune, April 8, 1930

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OBJECT TO BLISS SERVING 2 BANKS Bethany Depositors File Remonstrance Milford Interests Caused Bethany Failure. Claims that Clarence G. Bliss, sec retary of the department of trade and commerce. cannot act as re ceiver of two First State Bank of Bethany and the Ne braska State Bank. of Milford because their are opposed were contained in petition of in tervention filed here late yesterday The petition was filed by J. J Marx local attorney. on behalf of Chris A. Tierman. Marx. and the National Cloak and Dress Company. depositors in the Bethany bank It is claimed the Bethany bank accepted of notes of the Milford bank, which temporar ily needed credit Two of the notes. alleged. were ordered out of the bank as worthless by the bank examiner The Milford bank closed Novem ber 15. 1929 and the Bethany bank finding the notes of Milford bank worthless charged them off The account was restored. it is claimed. under threats from an agent of the Milford bank's receiv er. and draft issued for resulting allegedly in the forced closing of the Bethany bank

7. November 1, 1930 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, November 1, 1930

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DEPOSITORS REPAID Security Savings Bank Gets Final Payments Bring Total $7,000,000. With the payment of dividends of failed banks during October, the total to depositors since Jan. brought Secretary Bliss of the department and commerce, announced Friday. Among the payments October of percent dividend the defunct Savings Beatrice. With this the full perdividend had paid. the State of Johnstown were paid dividend of the depositors settlefund which set under the new law passed the special legislative session. Dividends banks Nebraska State bank Milford. percent, Dixon State percent, Farmers bank Dalton, Commercial Exchange bank of Doniphan, percent, Merchants bank, Utica, 10 percent, Marion State Marion, Citizens State Ravenna, percent, Dodge State bank, Dodge, 10 percent, Breslau State Breslau, percent, Brownlee State bank Brownlee, percent, percent, Nemaha percent, Loup City State Loup City, perbank, Beemer. percent,