Nebraska State Bank - Milligan, NE

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: July 5, 1922
Location: Milligan, Nebraska (40.500, -97.388)

Metadata

Model: gpt-5-mini
Short Digest: f4c8496b

Response Measures

None

Description

Article (Omaha Bee, 1922-07-10) reports the Nebraska State Bank of Milligan was closed by state bank officials, a receiver (B. A. Lynn) named, and serious shortages/forged certificates and misappropriation discovered. No run is mentioned; closure followed regulatory action and receiver appointment.

Events (2)

1. July 5, 1922 Suspension

Cause: Government Action
Cause Details: Closed by state bank officials after discovery of large shortage, bogus certificates of deposit, misappropriation and forged items.
Newspaper Excerpt: The Nebraska State bank of Milligan, which was closed by state bank officials Wednesday
Source: newspapers

2. July 9, 1922 Receivership

Newspaper Excerpt: After B. A. Lynn of Geneva was named receiver, Jay M. Riley of Lincoln, state bank examiner, and E.C. Sharp ... made a report of the condition of the failed bank.
Source: newspapers

Newspaper Articles (1)

1. July 10, 1922 The Omaha Morning Bee Omaha, NE

Article from The Omaha Morning Bee, July 10, 1922

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Article Text

Milligan Bank Shortage Will Reach $50,000 Grain Company With Offices of Bank as Shareholders Appears to Owe Bank $15,000 to $18,000. Geneva, Neb., July 9.--(Special Telegram.)-The shortage of the Nebraska State bank of Milligan, which was closed by state bank officials Wednesday, totals $50,000, it was estimated at a meeting of creditors Friday nights After B. A. Lynn of Geneva was named receiver, Jay M. Riley of Lincoln, state bank examiner, and E.C. Sharp who has had charge of the bank since June 19. made a report of the condition of the failed bank. The examiner was still in doubt as to the amount of the bogus certificates of deposit issued. Many of them were torn from the back of the book, he said. Discrepencies in the deposits total $10,000, of which $7.500 is said to be admitted by the men under arrest. Seek Missing Record. Riley stated that four months ago he examined the Milligan bank and found that there was no record of its standing with its correspondent. the Merchants National bank of Omaha. Riley then wrote the Omaha bank for figures and left town. The letter from the Omaha bank was sent to Riley in care of the Milligan bank. One of the figures in this statement had been changed, when he opened the letter a few days later, he said. Other alleged frauds included the misappropriation of $7,000 and a draft with an endorsement, believed to have been forged. Sight drafts on commission firms, for which it is believed no grain was shipped, were also disclosed. Liberty bonds are said to have disappeared from the deposit vaults of the bank and taxes paid to be forwarded to the county treasurer were never remitted. according to bank records. Grain Company Involved. The Milligan Graini, company appears to be indebted to the bank from $15.000 to $18,000. Besides Emil J. Kotas, former head of the Milligan bank, the other owners of the elevator are Herman Statsny, twice arrested for selling intoxicating . liquors, and James Keedjl, Adolph Kotas, cashier and brother of Emil J. Kotas, A committee of three was appointed to advise with the receiver and act in the interest of the community. This is made up of Len J. Davis, cashier of the Citizens State Bank of Geneva, S. F. Funemaker of Tobias and W. J. Matske of Shickley. The Nebraska State Bankers association interests will be represented by a committee composed of C. H. Brinkman of Ohiowa. L. P. Sorenson of Sutton and C. E. Bowdev of Friend. Fifty bankers were in attendance from this and adjacent counties. Frank M. Sloan of Geneva was chosen chairman and Leroy Stines of Fairmont, secretary.