13275. American Bank (Mitchell, NE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 1, 1931*
Location
Mitchell, Nebraska (41.940, -103.809)

Metadata

Model
gpt-5-mini
Short Digest
c1829613

Response Measures

None

Description

The American Bank of Mitchell is repeatedly listed among 'defunct state banks' and had a receiver appointed (Torgeson). No article describes a depositor run or a reopening; the bank was liquidated under a receivership with dividends paid. Dates: receiver appointment referenced as November 1931; assets sold and dividends paid in early 1932.

Events (5)
1. November 1, 1931* Other
Newspaper Excerpt
Torgeson was appointed receiver for seven failed banks ... including American Bank, Mitchell (appointment November 1931).
Source
newspapers
2. November 1, 1931* Receivership
Newspaper Excerpt
Torgeson of Scottsbluff appointed ... receiver ... American Bank, Mitchell; ... the receiver states depositors of the bank have now received 66 per cent of their claims.
Source
newspapers
3. November 1, 1931* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was insolvent/failed (listed among defunct state banks) leading to suspension/closure and appointment of a receiver
Newspaper Excerpt
the defunct banks involved ... American bank and Mitchell State, Mitchell
Source
newspapers
4. February 18, 1932 Other
Newspaper Excerpt
The real estate of the American Bank at Mitchell was sold at public auction Friday afternoon.
Source
newspapers
5. March 28, 1932 Other
Newspaper Excerpt
10 per cent dividend payment to depositors of the defunct American bank of Mitchell, payable Mon March 28 ... payment amounts $13,596.77 ... receiver states depositors have now received 66 per cent of their claims.
Source
newspapers

Newspaper Articles (9)
1. October 29, 1931 The Western Nebraska Observer Kimball, NE
Article from The Western Nebraska Observer, October 29, 1931

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Article Text

ART TORGESON SUCCEEDS BLISS AS BANK RECEIVER Arthur Torgeson, brother of Atty. Torgeson of this city and forbank employe here, will succeed H. Bliss as bank receiver in this district. special from Gering says: Bliss, former secretary of trade and commerce, presented his final report and resignation as receiver for seven defunct state banks in the Seventeenth judicial district to Judge Carter here Tuesday. Torgeson of Scottsbluff appointed to succeed Bliss as The defunct banks involved in Tuesday's reports are Irrigators', Scottsbluff; American bank and Mitchell State, Mitchell; Lyman State, Lyman: State bank, Bank of Bayard at Bayard; Nebraska State at Bridgeport.

2. November 26, 1931 The Scottsbluff Pioneer Scottsbluff, NE
Article from The Scottsbluff Pioneer, November 26, 1931

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Luikhart Files Suit To Oust Torgeson as Failed More fireworks broke out this week in the defunct bank situation in westNebraska, when word was received that E. H. Luikart and Gov. Bryan were filing suit to have Torgeson removed as receiver eleven failed banks in western Nebraska. Torgeson was appointed by Judge E. Carter some time ago. The Governor charges that Torgeson has received more pay than any other bank receiver, and that such excess salary must come out of the depositors' share of recovered funds in failed banks. further declared that banks in of the state would not pay out percent under Torgeson. Mr. Torgeson states that he will be glad to have an investigation of his management of failed banks. He cites several instances where banks he has handled have paid out considerably more than that, as follows Irrigators, Scottsbluff, 57 per cent; American State, Scottsbluff, 58.25; American bank, Mitchell, 50; Bank Bayard, Bayard, 50; Nebraska State, Bridgeport, 55.9; Mitchell State, Mitchell, 35.5; Lyman, 17; State Bank. of Minatare, Minatare, Bridgeport bank, Bridgeport, 16 per cent.

3. December 1, 1931 The Alliance Times-Herald Alliance, NE
Article from The Alliance Times-Herald, December 1, 1931

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Article Text

RECEIVER ISSUE TO THE SUPREME COURT State Bank Department Protests the Appointment of Torgeson by District Judge Right of a district judge to appoint a man other than the secretary of the state department of trade and commerce as receiver for a failed state bank was placed before the Supreme court Tuesday morning when Governor Bryan's banking department appealed from refusal of District Judge Carter to name E. H. Luikart as receiver for five failed banks in Scotts Bluff county. The five banks, State bank of Minatare, Mitchell State bank, Irrigator's bank, Scottsbluff. Lymar. State bank and American bank, Mitchell, were ones in which Judge Carter appointed A. E. Torgeson as receiver instead of Luikart. The western judge discharged Clarence G. Bliss as receiver following submission of final reports but denied the application of Luikart for appointment as receiver. Torgeson, who had been assistant receiver of the banks, and who was held by the court to be familiar with their affairs and competent to administer the receiverships, was named instead.

4. February 18, 1932 The Western Nebraska Observer Kimball, NE
Article from The Western Nebraska Observer, February 18, 1932

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Article Text

INTERESTING NEWS ITEMS FROM WESTERN NEBRASKA IN CONDINSED FORM The real estate of the American Bank at Mitchell was sold at public auction Friday afternoon. Mrs. Trintje Miller, 87, a pioneer resident of Cheyenne county, died last Thursday evening at her home in the Weyerts district, 13 miles southeast of Dalton. Among the postmasters in this section who have recently received reappointments are Clyde Leach at Bayard: Fred H. Carlson at Alliance, and Samuel H. Wolfe at Lodgepole. All have been confirmed by the senate. Champions of the Denver walkathan contest staged recently at Lakeside park, who danced to new world record of 2,861 hours with virtually no rest, will appear on the stage at the Fox theatre in Sidney Thursday night. Robert E. Stitts, a Lyman farmer, disappeared from his home and family, was absent over a week and as mysteriously reappeared, no explanation being given as to his whereabouts. A general search for him had been conducted by the county officials on request of his family. E. H. Luikart has been appointed receiver of the defunct Liberty State bank at Sidney. The appointment was made recently by District Judge J. L Tewell. The appointment defeats the plan of depositors to have Marius Christensen, former assistant cashier of the bank, named receiver. Pointing to reduced incomes, lessened living costs and slow tax collections, the Scotts Bluff County Taxpayers' league, at board meeting Friday evening adopted a resolution asking school districts to reduce expenses to a minimum and offering the services of the league to aid in realizing this objective. Lincoln-Eldridge Scriven of Mitchell suffered painful burns about the hands Saturday afternoon when the valve of a radiator which he was repairing at the Acacia fraternity house, broke. Scriven, who is member of the fraternity, was working in an upstairs room and was forced to hold his hands over the break to prevent the hot water from flooding the room. Lincoin day in Bridgeport was featured by a real old fashioned republican rally. The meeting took place at the court house on Friday

5. March 26, 1932 Star-Herald Scottsbluff, NE
Article from Star-Herald, March 26, 1932

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Article Text

Depositors Will Get $13,596 Dividend from Mitchell Bank Assets 10 per cent dividend payment edepositors the defunct Ameribank of Mitchell, payable MonMarch 28, the First National bank at Mitchell, was announced terday Torgeson of this city, receiver. payment amounts $13,596.77 payment was made the depositors of the American bank December making total of paid since Mr. Torgeson was appointed receiver November 1931. receiver states that depositors of the bank have now received 66 per cent of their claims.

6. March 31, 1932 The Mitchell Index Mitchell, NE
Article from The Mitchell Index, March 31, 1932

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Article Text

Depositors Receive Ten Per Cent From The American Bank Receiver E. Torgeson, receiver and HarJohnson, assistant receiver of the defunct American Bank of this were in Mitchell Monday ments former depositors of that institution. The amount paid this week equalled ten per cent of the deposits of the bank at the time closed. The receivership of the American Bank Mitchell has been one of the state, the cost up to few weeks the assets. The receiver has paid, date, 66 per cent of the deposits and hopes bring the total amount up considerable before the affairs are finally wound Mitchell has been rather fortunate in the settling bank, both in the cost and received. Some banks under state receiverhave paid little the devery positors. As an illustration the First State Alliance has paid but 45 cent; the bank at Harrison but per cent, while others over the state have paid less. The bank even Brady Island, the affairs of which have been closed paid out but per There great deal of contention to whether centralized state by the state, or private receivership under the direction of the local courts is best. is, course, not known how much the local institution would have cost to liquidate under centralized system under direction of the state department, but foregone would have cost more than per cent of the sources. At least, say proponents of the court never has been done that cheap by the state.

7. April 16, 1932 The Omaha Evening Bee-News Omaha, NE
Article from The Omaha Evening Bee-News, April 16, 1932

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COURT FIGHT LOST BY CASES Decision Upholds Torgeson as Liquidation Officer in 17th District LINCOLN, April 16, Nebraska supreme court Saturday sustained the action of District Judge E. F. Carter of Gering in appointing A. Torgeson of Scottsbluff as receiver of seven failed state banks in the Seventeenth judicial district. Judge Carter had refused the application of E. H. Luikart, secretary of the state department of trade and commerce. to be made succeeding Clarence Bliss, his predecessor in office. The supreme court held that where liquidation of state bank conducted court equity the procedure is judicial and not The court also ruled appointment of receiver should not be made controlled by the governor legislature. the imperative duty of the judicial to protect its jurisdiction the boundaries power fixed the constitution, the declared legislative act providing for appointment of the secretary department of trade and commerce receiver for all insolvent state banks must be regarded merely legislative recommendation the court, the opinion stated. Otherwise this act would unconstitutional, the court finds. decision terminates con troversy between state banking officials, Governor Bryan and Judge Carter appointed receivof the banks when Bliss. of the department of trade and resigned. Radke, counsel for receivership division, applied for appointment of Luikart. Judge Carter refused to consider this unless assured Bryan would not interfere with Luikart ceiver Torgeson subsequently was The seven banks concerned are the State Bank of Minatare. Mitchell State bank. Irrigators Bank of Lyman State American Bank Mitchell braska State Bank of Bridgeport and the Bank Bayard eighth the Seventeenth district turned Torgeson was the Bridgeport bank. Bayard A. Paine and L. Day dissented from the supreme court decision.

8. April 21, 1932 The Western Nebraska Observer Kimball, NE
Article from The Western Nebraska Observer, April 21, 1932

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TORGESON WINS IN SUPREME COURT SUPREME COURT UPHOLDS DECISION OF JUDGE CARTER IN BANK RECEIVER CASE Linceln. April 16-The Nebraska supreme court today affirmed the action of District Judge E. F. Carter in appointing A. E. Torgeson as receiver of seven failed banks in the seventeenth judicial district. The deeision terminates a controversy between state banking department officials, Governor Bryan and Judge Carter Torgeson was appointed receiver for the banks when Clarence G. Bliss, former secretary of department of trade and commerce, resigned. F. C. Radke, counsel for receivership division. applied for appointment of E. H. Luikart, Bliss' successor, but this was refused by Carter. Carter announced he would not consider substitution of Luikart for Bliss until assured Governor Bryan would not interfere with Luikart as receiver. Torgeson subsequenty was named. The seven banks concerned in the decision today are: State bank of Minatare Mitchell State bank, Irrigators bank of Scottsbluff, Lyman State bank, American Bank of Mitchell, Nebraska State bank of Bridgeport, and the Bank of Bayard. The eighth bank in the district turned over to Torgeson was the Bridgeport Affirming Judge Carter's action, the court held where liquidation of an insolvent state bank is conducted in court of equity pursuant to law, the proceedings is a judicial and not executive order, from which an appeal is allowed by statute. "In a cause properly before court of equity", the court added, "for determination, appointment of a necessary receiver is a judicial function which cannot be exercised or controlled by the governor or the legislature." The court also said: "It is an imperative duty of the judicial department of the government to protect its jurisdiction at the boundaries of prower fixed by the constitution.' Answering the contention of Governor Bryan, Luikhart and Radke, that the law clearly specifies the trade and commerce department secretary shall be sole and only receiver, the court said: "A legislative act providing the secretary shall be the sole receiver of all insolvent state banks, amounts to no more in a judicial proceeding, properly pending in a court of equity for the liquidation of a bank, than legislative recommendation to the judiclary to appoint him. as otherwise the enactment would be an unconstitutional encroachment on judicial power." The affirming decision, written by Justice W. B. Rose and concurred in by majority of the court, was dissented to by Justice Bayard A. Paine Justice L B. Day also dissented to the majority decision, but did not concur in Justice Paine's prepared opinion of dissent.

9. April 21, 1932 The Mitchell Index Mitchell, NE
Article from The Mitchell Index, April 21, 1932

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CARTER DECISIOIN BANK RECEIVERSHIPS SAYS POWER NOT VESTED IN GOVERNOR TO APPOINT RECEIVERS OF FAILED BANKS Act Unconstitutional Declaring that is the imperative duty of the judicial of to protect its jurisdiction the boundaries of power fixed the constitution and the naming state bank receivers judicial function which cannot be exercised controlled by the governor or legislature, supreme court Saturday upheld the action of District Judge Carter of this judicial district, in fusing to name Luikart, tary trade and commerce, ceiver for American Bank of Mitchell, Irrigators bank of Scottsbluff, Lyman State bank, American State bank Scottsbluff, Nebraska State bank Bridgeport, State Bank of Bank of Bayard. tices Paine and Day dissented. The court, in an opinion written Justice Rose, says that legislative providing that the secretary trade and shall be sole receiver of all insolvent state banks amounts to no more than judicial proceeding, properly pending in court of equity for the liquidation bank, than legislative recommendation the judiciary to appoint him, as the would be an croachment on judicial power. Judge Carter Named Torgeson Judge Carter was the only district judge who refused to name Luikart, when the latter succeeded Bliss. appointed Torgeson, who had been assistant receiver under Bliss, on the ground that had actual of the these sevbanks he was in better position serve interests than Luikart, must necessarily name some one handle their liquidation. The court points out in decision that the statutes nowhere provide for liquidation state banks withinvoking the judicial power state, and the legislature has granted to any executive board, tribunal authority wind up affairs banks the The law is that the tary of trade and shall port bank's insolvency to the attorney general, who shall ask the courts name receiver, and then ceeds tell the court that name the secretary as receiver. Use the courts for purposes of liquidation has been the universal practice both before and after the law under discussion was passed. The lawmakthemselves provided for judicial The court says that as the governnames the secretary and may tire him and name another, the fect of the law to make mandatory on the courts to name whoever he names, and to modify the ment of the court. Neither the nor the legislative department pending cause, can change modify judicial orders or lawfully quire the court to do judicial order pending does change political fortunes or acts executive ments. Can't Surrender Power. The framers of the constitutions, state and federal, have adopted the plan executive, legislative and dicial departments independent other. has been regarded by statesmen and standing advancement in the science government. Throughout the history of the present the courts have spected the of the other and extended them the due to divisions equal rank, but courtesy to the surrendering judicial power. Justice Paine, in his dissent, said that to back to the custom district judge appointing pendent receivers each county for banks will defeat the whole worked out the legislature. thought that the supreme court should the fact that disjudges in all other districts named He the plan has brought order out of chaos tends for speedy and While an officer the court justice thinks that the case presents just overlapping power in the twilight zone between departments. suggests that the judiciary cheerfully co-operate the end prompt, vigorous efficient by responsible person be effected in the interest of depositors. Franz Radke, counsel for the banksaid the cision given Saturday that effect sought for in be secured another change the statutes. believes not be necessary change constitution in have control of receiverships placed the hands of the Radke believes inconsistent for the state to set up an elaborate machine for the handling of receiveronly have the court say ship, ably would not effect changes any districts where judges have given their permission for him to act ceiver. doesn't make any difference personally,' the secretary plained, do this work without pay. handled in this office simplified manner."