13317. Newman Grove State Bank (Newman Grove, NE)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: July 16, 1929
Location: Newman Grove, Nebraska (41.750, -97.775)

Metadata

Model: gpt-5-mini
Short Digest: f1f7486d

Response Measures

None

Description

The Newman Grove State Bank was taken over by the Nebraska State Banking Department on July 16, 1929 due to insolvency and missing/irregular records. Articles state there was no run; depositors later agreed to receivership rather than attempt reorganization. Allegations of diversion/illegal manipulation of funds by the president (Gutru) appear in later reports.

Events (2)

1. July 16, 1929 Suspension

Cause: Government Action
Cause Details: State banking department took the bank into its hands as insolvent after examiners found irregularities, frozen commercial paper, and missing records/notes.
Newspaper Excerpt: notices were posted the doors of the Newman Grove State Bank ... that the affairs of the bank had been taken over by the state banking department
Source: newspapers

2. August 8, 1929 Receivership

Newspaper Excerpt: depositors of the Farmers State and Newman Grove State bank, both of Newman Grove, which closed last week, had agreed upon receivership rather than attempt reorganization and reopening.
Source: newspapers

Newspaper Articles (10)

1. July 17, 1929 Newman Grove Reporter Madison, NE

Article from Newman Grove Reporter, July 17, 1929

Click image to open full size in new tab

Article Text

BOTH STATE BANKS ARE TAKEN BANKING DEPARTMENT The Newman Grove State Bank, The Farmers State Bank, and the Security Savings and Loan Association Declared Insolvent by Bank Examiner About six o'clock last night notices were posted the doors of the Newman Grove State Bank and the Farmers State Bank by Lyman C. Sorensen, State Bank Examiner, that the affairs of the bank had been taken over by the state banking department and that a meeting would soon be called of the positors and creditors to consider the advisability of re-organization. This meeting will be held next Friday night. The depositors the Newman Grove State Bank will meet at 7:30 at the new auditorium and the depositors of the Farmers State Bank will meet 8:30 o'clock at the high school assembly room. Both meetings will be addressed by George W. Woods, of Lincoln, the new bank commissioner. This financial crash is the result of condition which has prevailed over the state for the past several years involving especially state banks. When the Nebraska State guaranty fund ceased to function after making extensive drafts on the state banks and the legislature was unable to find solution to the problem, it seriously impaired the standing of many state banks. This, together with the unusual dition of commercial paper during the reconstruction period following the world war has made banking very difficult business. For the past several months there has been gradual withdrawal of deposits although there no run on either bank. The bank examiners were here the most of the past week and though an effort was made Tuesday to prevent the closing of the banks was fruitless. Geo. H. Gutru, president of the State Bank and Olson, president of the Farmers State Bank were in conference with George W. Woods newly appointed Bank examiners at Columbus until evening when it became apparent that nothing could be done Mr. Sorensen returned to Newman Grove and took over both banks. The capital stock of the Newman Grove State Bank is $30,000 with surplus of $10,000. The deposits were around $300,000. The capital stock of the Farmers State Bank is $15,000 with surplus of $6,000 The deposits amount to A law passed by the last legislature provides for re-organization of failed banks by calling meetof the depositors and appointing committee to go over the books and make an appraisal of the value of the commercial paper of the bank. The capital stock and surplus is taken to apply on uncollectible notes. All questionable is put together and an effort per made to collect it. The depositor's money or sufficient amount of it held to offset this paper. New stock must be subscribed and the bank is put into operation again. If this questionable paper is collected or an amount equal to the old deposits less the capital stock and surplus, the depositor's claims will be paid in full. If a re-organization not effecte,d the bank will be placed into the hands of receiver. Newman Grove is left with one bank, The First National, which is strong institution with its deposits well safeguarded by stock of government bonds amounting to many times its capital stock. The deposits in this bank have rapidly grown during the past several months, and it has the implicit confidence of the people. Mr. Sorenson states that practically every bank that has failed since the passing of the new law providing for re-organization has taken advantage of this law and effected re-organization. It is hoped that re-organization of these banks can be made. Some think that if this is done they may be consolidated into one strong banking institution. The closing these banks will only the ness of the town for it will not be long until every busines man affected will be able to arrange new banking facilities. Very exaggeratreports were heard on the streets last night as to the amount of deposits of different individuals the closed banks. One deposit ported to be $45,000 shrunk during the night to $4,000. People should pay no attention to any reports until they are confirmed. The business of the town went along as ual today and stranger coming to town would not know that financial crisis had occurred.

2. August 8, 1929 Nemaha County Republican Auburn, NE

Article from Nemaha County Republican, August 8, 1929

Click image to open full size in new tab

Article Text

Bank Into State Hands LINCOLN, Aug. People's State Bank of Wolbach went into the hands of the state banking partment Monday after heavy withdrawals during the past months. The bank's last statement showed deposits of $295,000. but believed at present they will not reach $175,000. The bank has been without president since the death of Bradley in an accident Central at City about year ago. Johncashier, has been in charge the institution. The bank's paper to be good but measurably froz- meeting of depositors to upon reopening or receivership will be held at Wolbach Wednesday evening, the banking stated. was also announced Monday that due to probable litigations, depositors of the Farmers State and Newman Grove State bank, both of Newman Grove, which closed last week, had agreed upon receivership rather than attempt reorganization and reopening. decision to that effect unanimous upon the part of the positors. Mrs. Frank Grant and two daughters of Lincoln who spent last week visiting at the home of Dr. and Mrs. Tyler returned to their home in Lincoln Sunday. Mr. Grant drove to Auburn Sunday after them.

3. September 12, 1929 The Madison News Madison, NE

Article from The Madison News, September 12, 1929

Click image to open full size in new tab

Article Text

MEADOW GROVE BANK IS CLOSED No New Bank At Newman Grove Yet NEWMAN GROVE, Sept. 7-So far no new bank has been organized to replace the Newman Grove state bank and Farmers' state bank which failed here recently. It is understood that application has been made for a charter for a new national bank, but no active organization has yet occurred.

4. October 2, 1929 The Columbus Telegram Columbus, NE

Article from The Columbus Telegram, October 2, 1929

Click image to open full size in new tab

Article Text

FIND LOST NEWMAN GROVE BANK PAPERS IN GEO. GUTRU HOME Use Search Warrant in Locating Records: Await Banker's Return Newman Grove. Oct. 2-With the discovery of part of the missing records of the failed Newman Grove State bank in the home of George H. Gutru. the president. state bank officials today were hoping that Gutru would return from a western business trip and aid in clearing up the bank accounts. Mrs. Gutru insisted that her husband. who left about two weeks ago, went on a business trip to western Kansas. eastern Colorado and Texas. where he has land interests She expects him home this week-end. she said The bank taken over by the state July 16. together with the Newman Grove Savings and Loan association of which Gutru was also president. Little hope is held out for the recovery of much of the $300,000 deposits of the bank The receiver of the savings and loan association Saturday filed suit in district court for the recovery of $40,000 of its assets. deposited in the bank They are asserted to have constituted a trust fund. and to enjoy preferred rating over the claims of the other depositors In this civil action the receiver. A. 1: Ward. charges Gutru with illegal manipulation of the funds of the bank and savings association. When State Bank Examiner Harry Henatsch began his audit of the Newman Grove State bank he could not find the ledger sheets on the personal accounts of Mr. and Mrs. Gutru. nor a number of notes listed by the bank County Attorney made formal demand on Gutru for the records. but was refused. Monday night on search warrant sworn out by Henatsch. officials went through the Gutru home. They found $4,500 worth of notes, and a ledger sheet for the "Henry Knudsen account Recently incorporation of the American Investment company of Newman Grove. comprised of Mr. and Mrs. Gutru and Carl Vessin of Spokane, Wash. father of Mrs. Cutru. recorded at Lincoln. At about the same time. records indicate. Mr. and Mrs. Gutru transferred all their real estate property. including an estimated 10 thousand acres of land in Madison and nearby counties, to the American Investment company Almost simultaneously also, the American Investment company announced that it would sell all its holdings Gutru. a man of 45. has lived in Newman Grove a quarter of a century and has two sons of high school age. Coach Dana X Bible used Claude Rowley at fullback while Sloan limpingly followed the plays from the sideline. Sloan was injured in scrimmage almost a week ago and has not been able to shake off his limp If Rowley starts the game against the Mustangs Saturday the Husker backfield will be outweighed by almost 12 pounds, as the Nebraskans will average only 172 pounds while the Mustangs will 184 pounds. The secret practice sessions will be abandoned today for the usual open Wednesday session so that Nebraska fans can get a final glimpse of the Huskers before they go against the Texans. The aerial game of the Huskers looked better yesterday than at any previous time in the season.

5. October 2, 1929 Newman Grove Reporter Madison, NE

Article from Newman Grove Reporter, October 2, 1929

Click image to open full size in new tab

Article Text

OFFICERS SEARCH THE GUTRU HOME RECORD Assist. Bank Receiver Finds Ledger Sheet and Three Missing Notes Monday By means of search warrant made out by County Judge E. L. Reeker Monday afternoon the palatial residence of Geo. H. Gutru was entered by Assistant Bank Receiver Harry Henatsch and Officers Strawn and Gates from the state sheriff's office and County Sheriff Clint S. Smith in an effort to locate ledger sheets from the records of the bank as well as notes which the authorities were unable to locate in the bank. Mrs. Geo. H. Gutru was the only one at home and she offered no resistence to the search. In the files in Mr. Gutru's desk were found a missing ledger sheet made out in the name of "Henry Knudson," and three notes bearing respectively the signatures of O. Turmo, William Dietz and H. Heckerson. The notes totaled $4500. The notes disappeared from the bank a few days before it was closed by the banking department. The papers are now in the hands of the county judge for final disposition. A demand had been made for the missing ledger sheets but Mr Gutru claimed that they had been used as exhibits in cases before the courts and were not avaiable. Last Thursday A. E. Ward with his attorney W. L. Dowling held a meeting with the committee appointed by the stockholders of the Security Savings and Loan Association at which time Mr. Dowling presented a copy of a petition which since had been filed with the clerk of District Court at Madison. The petition asks for preference in the association's deposit amounting to around $40,000 in the failed Newman Grove State Bank, as being a trust fund and not a deposit. The petition alleges fraudulent intent in using the association funds as a deposit. The filing of this petition incited the banking department authorities to action in making the search for the missing records. The accounts have been checked by an auditor and although the records can be completed by an exhaustive check covering a number of weeks yet it would simplify matters to have them as they were removed from the bank's ledger. Just what can be learned from the sheet located remains to be seen. The recent organization of the American Investment Company to which the Gutru lands have been transferred has caused considerable adverse comment regarding the affairs of the bank. A copy of a notice of sale of these holdings was recently sent to the Madison StarMail for publication but later was held up for correction and has not been published. The announcement of the search for records in the Gutru home has caused no little comment and speculation on the streets of Newman Grove and absurd rumors have been started. In an interview with Mrs. Gutru today the following was given for publication: "Geo. H. Gutru, accompanied by his son, Clark, left on Sunday, September 22 for a business trip in Colorado, Kansas, Oklahoma and Texas. The purpose of the trip was to locate interested parties in the sale of the Gutru lands, in an effort to meet Mr. Gutru's obligations. The itinerary left by Mr. Gutru showed he was to be at Julesburg, Sept. 22; at Denver Sept. 24; at Tribune, Kansas, Sept. 26; at Amarillo, Texas, Sept. 28; at Oklahoma City, October 1. At Oklahoma City he was to visit with Mr. and Mrs. W. E. Harvey who are old friends of the family. He is expected back home by the last of the week." Mrs. Gutru was greatly shocked at the reports given in the daily press of the matter and stated that Mr. Gutru is doing everything possible to raise money to re-imburse the depositors of the failed bank.

6. October 3, 1929 The Albion Argus Albion, NE

Article from The Albion Argus, October 3, 1929

Click image to open full size in new tab

Article Text

FIND RECORDS BANKER'S HOME Think Others May be Found When Gutru Returns From Trip From the With the discovery of part of the missing records of the failed NewGrove State bank in the home Gutru, the president, bank officials today were hopthat Gutru would return from business trip and aid in clearing up the bank's accounts. who left about two went business trip Kansas, eastern Coloand Texas, where he has land interests. She him home this said. Taken Over July 16 The bank was taken over by the state July 16, together with the Newman Grove Savings and Loan of which Gutru was president. Little hope is held for the recovery of the dollars deposits of bank. The receiver of the savand loan association Saturday filed suit in district court for the recovery of thousand dollars of assets, deposited in the bank. They are asserted to have constituted trust fund, and to enjoy preferred rating over the claims of the other depositors. In this civil action the receiver, Ward, charges Gutru with illegal manipulation of the funds of the bank and savings association. Many Notes Missing When State Bank Examiner HarHenatsch began his audit of the Newman Grove State bank he could not find the ledger sheets on the personal accounts of Mr. and Mrs. Gutru, nor number of notes listed by the bank. County Attorney Dowling made formal demand on Gutru for the records, but was fused. Last night, on search warrant sworn out by Henatsch, officials went through the Gutru home. They found $4,500 worth of notes, and ledger sheet for the "Henry Knudsen sheep account." Henatsch said today the ledger sheet was of little help in solving the riddle of the bank's accounts, and that the notes were some that Gutru had bought, with his own posits in the bank, four days before it failed. Henatsch will attack this purchase, as having been made by Gutru when he knew his bank was insolvent, in an attempt to save part of his own funds. Form New Concern Recently incorporation of the American Investment company Newman Grove, comprised of Mr. and Mrs. Gutru and Carl Vessin of Spokane, Wash., father of Mrs. Gutru, was recorded at Lincoln. At about the same time, records indicate, Mr. and Mrs. Gutru ferred all their real estate prop erty, including an estimated 10 thousand acres of land in Madison and nearby to the American Investment also, the American Investment company announced that it would sell all its holdings Copy of notice for the sale of the property was sent to the Star Mail Publishing company Madison for printing, but was ordered held for corrections, and has not yet been published. No sales have yet been made, it is understood. Mrs. Gutru said she knew little her husband's business affairs. She said she was president the American Investment company, but added that Mr. Gutru alone was

7. October 3, 1929 Albion News Albion, NE

Article from Albion News, October 3, 1929

Click image to open full size in new tab

Article Text

Search Bankers Home Reveals Notes Notes amounting to around $4,500 and belonging to the failed Newman Grove State bank were found the first the week when search was made the residence of George H. Gutru, former president of the bank. The search of the Gutru home was made warrant sworn out by Harry Henatsch, assistant receiver for the Gutru bank. One of the bank ledger sheets reported missing when the bank closed was also found. Mrs. Gutru was home the time search made. She said have informed the officers that Mr. Gutru had gone to Texas on business trip.

8. October 3, 1929 Albion News Albion, NE

Click image to open full size in new tab

Article Text

Savings Company Sues Grove Bank Receiver Suit instituted the court Madison county Security Savings and Loan of Newman Grove, against the the Newman Grove State officers. The loan company tends that of its funds listed as bank deposits, but that they held in trust, and constitute preferred claim to the depositors. The Security Loan Company went into when the two Newman banks failed recently. The case watched with considerable the state banking department.

9. October 4, 1929 The Humphrey Democrat Humphrey, NE

Article from The Humphrey Democrat, October 4, 1929

Click image to open full size in new tab

Article Text

Papers are Found in the Lost Newman Grove Bank Papers Are Found in Home of Geo. Gutru Search Warrant is Used in Locating Records of Defunct Newman Grove Bank With the discovery of part of the missing records of the failed Newman Grove State bank in the home of Geo. H. Gutru, the president, state bank officials today were hoping that Gutru would return from western business trip and aid in clearing up the bank's accounts. Mrs. Gutru insisted that her husband, who left about two weeks ago went on business trip to western Kansas, eastern Colorado and Texas, where he has land interests. She expects him home this week end she said. The bank was taken over by the state July 16, together with the Newman Grove Savings and Loan association, of which Gutru was also president. Little hope is held out for the recovery of much of the $300,000 deposits of the bank. The receiver of the savings and loan association Saturday filed suit in district court for the recovery of $40,000 of its assets, deposited in the bank. They are asserted to have constituted trust fund. and to enjoy preferred rating over the claims of the other depositors. In this civil action the receiver. A. Ward. charges Gutru with illegal manipulation of the funds of the bank and savings association. When State Bank Examiner Harry Henatsch began his audit of the Newman Grove State bank he could not find the ledger sheets on the personal accounts of Mr. and Mrs. Gutru. nor number of notes listed by the bank. County Attorney Dowling made formal demand on Gutru for the records, but was refused. Monday night, on search warrant sworn out by Henatsch. officials went through the Gutru home. They found $4,500 worth of notes, and ledger sheet for the "Henry Kundsen sheep Recently incorporation of the Amof Newman Grove, comprised of Mr. and Mrs. Gutru and Carl of Spokane, Wash., father of Mrs. Gutru, was recorded at Lincoln. At about the same time, records. Mr. and Mrs. Gutru transferred all their real estate perty, including an estimated 10 thousand acres of land in Madison and nearby counties, to the American Investment company. Almost simultaneously also, the American Invetment company annouced that it would sell all its holdings. Gutru. man of 45. has lived in Newman Grove quarter century. and has two sons of high school Columbus Telegram.

10. October 5, 1929 The Grand Island Independent Grand Island, NE

Article from The Grand Island Independent, October 5, 1929

Click image to open full size in new tab

Article Text

Irregularities Former President of Failed Newman Grove Bank on Vacation SURPRISE IS VOICED Be Quizzed County Attorney in Regard Allegedly Missing LedSheets-Says There Isn't DisBank. Grove, Neb., Oct. George Gutru, former president the failed Newman Grove State bank, returned from vacation last night, surprised said, that there had been intimations of irregularity in the conduct of the bank. see there should be all this flurry he said. boy, Clark, and drove to Fort Collins, Colo., then Denver. Later we went Oklahoma City and came straight home. The first knew of this ter when my arrival." been nothing irregular," the banker went failed, other banks through the state have failed, because of frozen paper. There disputed note the bank. We to close because mers pay their notes. The amount eventually be any ered depends upon the policy of the bank department and receiver, toward collecting the Be Questioned Monday night, sworn the out bank ficers to the Gutru home and received notes. which, they said, had been bought by Gutru just before the failure bank. Gutru said Carl Vessin, bought the notes for about ka $3,000. The notes the county he said, declared Vessin willing, the purchase challenged, accept the amount payment for and the notes. County Attorney Dowling, Madison, Neb., declared would attempt touch with Gutru immeiately, and he will demand, he that Gutru "put his cards the Principal items about which Gutru will quizzed, he said, are allegedly sheets for Mr. and Mrs. Gutru which were not when the and ed. Gutru denied there were any missing sheets. Confers With Attorneys Newman Grove, Neb., Oct. George Gutru, president the failed Newman Grove State bank, returned here today, after absence of three weeks. He went into conferwith his bank taken over by the state on July When the state bank examiner began his audit, many the records of the bank Later, after Gutru left search warrant was for his home and notes for 500 and missing ledger sheet were found.