13318. Newman Grove State Bank (Newman Grove, NE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 8, 1932
Location
Newman Grove, Nebraska (41.750, -97.775)

Metadata

Model
gpt-5-mini
Short Digest
4ffb552d

Response Measures

None

Description

Newspaper articles describe the Newman Grove State Bank as suspended (Apr 1932), a receiver (E. H. Luikart) was appointed and litigation over receiver's control of mortgaged land followed (June–July 1932). There is discussion at the criminal trial of insider withdrawals, but no clear evidence of a public depositor run prompting the suspension. Therefore this is classified as a suspension followed by permanent closure/receivership. OCR errors in articles corrected (e.g., Gutru = Gutru/Gutru family references).

Events (4)

1. April 8, 1932 Suspension
Cause Details
Articles state the bank was suspended and later found insolvent; causes discussed include bad loans/insider advances and insolvency, but no single triggering category is explicitly identified in the text.
Newspaper Excerpt
president of the suspended Newman Grove State bank
Source
newspapers
2. June 5, 1932 Receivership
Newspaper Excerpt
Prudential Insurance company against E. H. Luikart, receiver of the Newman Grove State bank The controversy ... liquidation of insolvent state banks ... the receiver claims for the bank assets, and that they have first lien ... receiver of the Newman Grove State bank is named in briefs and litigation over assets and priority is ongoing.
Source
newspapers
3. June 22, 1932 Other
Newspaper Excerpt
He stated that there ... no run on the bank from the outside but the run from the inside as the officers and family had taken their money ... the bank was closed ... charge against Geo. H. Gutru ... president ... alleged acceptance of deposits after the bank was insolvent.
Source
newspapers
4. July 19, 1932 Receivership
Newspaper Excerpt
COURT CHANGES MIND ABOUT RECEIVERSHIP ... The supreme court Tuesday set aside decision previously entered in controversy between Receiver Luikart of the Newman Grove State bank and the Prudential insurance company ... The mortgagee ... is entitled to have receiver named regardless of the prior general receivership.
Source
newspapers

Newspaper Articles (7)

Article from Winnebago Chieftain, March 13, 1931

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HOWELL URGES GOVERNOR TO VETO BRIDGE BILL Lincoln, Bryan has by United States to veto the Omaha bill almost urgency delegation. unanimously both houses on the Howell that free bridge certain built Douglas streets, the toll bridge farther South Omaha would patronage enough to enable the bonds are to voted to retired out tolls. The result would be that the would have the bonds. He also doubts whether any bond would buy them when there has been vote the people authorizthem. Governor Bryan says he will confer with Douglas before the bill. which upon difficult to accurately diagnose. VALUABLE BULL CASE BACK FOR RETRIAL Lincoln, preme court has sent back to the district court of Dodge for retrial the where Mrs. Susan Cuming county, two Point State West Point and the Point National bank bull she valued at and which the banker sold beef for $40. The ordered that the retrial evidence the ue the which was levied upon by the under provisions of mortgage by of who bull Emil Suhr, county, for keep, but suit dismissed to him and the says that since the took property which had no right they must pay the damages. SAYS "OIL COMBINE" GETS IN WORK Lincoln, Bryan charges that the "oil Nebraska its forts upon the house of tives committee on and towns to his for the ation municipally owned and erated gasoline stations. The recommended for postponement following tee hearing week. move overturn that report probably will made. Denouncing the action of the headed Smallwood (representative of North Platte, governor charged the oil gasoline interests tortion profiteering" the pense of the Nebraska automobile owner. cannot believe the legislature will permit decision stand decision the peoples' lawmaking Byran added. DEPOSITORS RECEIVED $179,112 port Clarence Bliss, for the department trade commerce, total $179,112.49 was distributed depositors state banks during the month February. This liquidation nine instituIncluded the list Bank Ottis and Murphy Humphrey, $22,369.91; Newman Grove State bank, Farmers State bank of Belgrade, $13,862 making total per cent; Knox county bank of Verdigre, Lincoln, preme court affirmed action the district court of Douglas county judgment Mabel Cutler for resulting from acres land in Monona county, Iowa. H. Stoner induced the plaintiff trade 640-acre ranch Brown county, for land which he said free from flow. When she went look the tract next spring she found witnesses testify that considless than represented


Article from Lincoln Journal Star, April 8, 1932

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BANKERS' HEARING SET. M A N. (/P). The case of George H. Gutru. president of the suspended Newman Grove State bank, for alleged acceptance of deposits after the bank was insolvent. has been set for Monday, April 18.


Article from Lincoln Journal Star, June 5, 1932

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STATE CLAIMS A PRIORITY Depositors Have First Lien on Bond Assets. C. Radke and Barlow Nye, attorneys for the banking department, filed brief arguing motion for rehearing in supreme court in the case the Prudential Insurance company against E. H. Luikart, receiver of the Newman Grove State bank The controis over whether special laws versy liquidation of insolvent state banks takes over laws that conflict with them, and the state says does. company beof property debt. lower court held that the bank receiver should not be superseded by receiver for the property, but directed his assistant to set aside the rents and profit from the mortgaged property so that they applied to the might of deficiency pnder the mortgage which might arise after sale. The state contends that this wrong, and that the security offered by mortgage extends only the property covered and not rents and profits unless the mortgage states. This money the receiver claims for the the bank assets, and that they have first lien that attaches the bank is declared to be insolvent. Mr. Radke asks the court to rule that this lien upon the assets antedated that sought by the mortgagee and therefore entitled to priority payment. He insists the mortgagee in no better position than any other creditor deficiency. The decision in the case will control the disposition several like propositions.


Article from Newman Grove Reporter, June 8, 1932

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Argue Foreclosure In Supreme Court Controversy over the proper legal method of handling Boone county farm in a foreclosure case, while title to the farm is held by the receiver for the failed Newman Grove State bank, was presented to the supreme court Monday, June 6. in oral arguments for a second time. District Judge Lightner had appointed the assistant receiver of the Newman Grove bank to hold the income from the Boone county land pending completion of the foreclosure action brought by the Prudential Insurance Co. of America of Newark, N. J. The supreme court held the Boone court couldn't do this because the land was under control of the Madison county district court since its title was in the hands of the local bank's receiver. Reargument was granted when the insurance company claimed that such a decision left it without legal remedy since it could not bring a foreclosure action except in the county where the land is.


Article from Newman Grove Reporter, June 22, 1932

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(Continued Gutru withdrew her money from the president of this bank the bank also that of the of salary per Gutru boys to pay her father. to the then called attention stead of taking the cash they took Drs. Jensen posits made by notes which turned Geo. Farmers Olson, her father and the money that cited others are him when they He stated that complaint. George Gutru away from home from out 58 notes this matter attended borrowers which aggregate Clark Gutru. that were bad and of The case was finished worthless. These notes the arguments by the attorneys, named and explained why they about four thirty o'clock Thursday This amount is worthless. afternoon and was decided the the capital stock plus these postponed till the next the stock surplus capital morning. and the surplus $10,000 On Friday morning the He stated $40,000. was crowded with people Gutru's the witness testimony on from Newman Grove and standing that offered at premium. County bank Currie and Attorney Carl Peterson the bad enough first to speak. In forceful equal the capital stock and he began his argument which equivalent statement that it the bank the for nothing. county attorneys crimMr. Craven stated that there inal cases, that the verdict no run on the bank from the be governed what he thinks outside but the run from the but what the evidence shows. inside as the officers and Gutru juror the beginning family had taken their money the said Mr. Peterson, the bank on about June examined for his impartiality He said that in order criminal cases must have men for comply with the law bank must jurors who The at least 15 per cent attorney stated that his object Newman Grove State Bank, to help strike out the however, had depleted its cash that make no difference and the percent reserve. Holding thing for the to do bunch of checks and certificates determine from the evidence introdeposit he showed the jury that duced whether the Newman Grove Gutru had cashed two checks State Bank insolvent the amounts of $1210 and days charged and whether had Carl Zessin certificate sufficient to debts posit of $1500, Mrs. Juelson, tween the dates of May 25 to July sister-in-law of Sam Juelson, must judge cashier, certificate of deposit the credibility the and Phoebe Gutru lawyers and the judge could Bobby and Junior Gutru $103.11, only help with the technical Junior Gutru $69.87, Mrs. Emma ters but the judgement was Peterson, mother of the assistant theirs. cashier, Glen Peterson, Mr. Peterson in explaining Juelson credibility of the witnesses stated Good notes were taken the interest the witness may bank for this money instead have in the result should be taken and they were subsequently into consideration. Just because paid. heard something from Craven attempted witness to bring was no sign that the cattle business the Gutru true, and Henry Knudson but this should objected by Gutru's analyzed. attorneys discusing the testimony the real estate Mr. Peterson that in the of case John Johnson, who testified to value of his farm, should know more about than Oliver Olson to farm pointed out the before he knew where located and then recess was taken could the same value he had on before intermission. Johnson farmed the land. knew every foot of and knew how to was meet the ments better ledge of value than did he had tried for the mortgages against He stated that Oliver Olson long friend of the defendent and had an interest in the the trial. The county attorney stated Glen Peterson had an interest the outcome the showed the earmarks of an witness when he testified mother decided invest money that was in the bank notes. He asked, take testimony other witnesses Gutru himself although solvency of the bank that had tried to sell $40,000 but would take enough bad paper to capital stock and surplus." Attorney Craven the following county attorney's jury then took the floor. in slow measured tones showed him master subject. He had his argument carefully prepared and his arrayed tips. stated that there attorney general brought the attorney general not the banking partment. He stated that he public prosecutor and did the Grove Newman community had said the during made no the evidence introduced willing that fair trial, he did want to convict guilty. to bring the evidence before the jury for their stated the complaint against Geo. H. Gutru after and careful Craven stated that they had established the fact that the Grove State Bank was that the state had brought Juelson, its cashier, there testify fact. Geo. Gutru the 300 shares Craven then went into solicitation Gutru bank that testified stood undisputed on the county attorney and later that Gutru had out to bring action if there place and solicited and anything wrong with this $1200, that Chas. Rosenburg Dowling stated that solicited for should kill accidently Peter Bruland had been intent there no crime licited for deposit of mitted. said that for many this was placed on Newman Grove State bank money posit in the Newman Grove State existence had served Bank. He stated that Gutru people of that beautiful munity. dwelt on the fine and splendid people of that community. He stated that Andrew Dahlsten who had lived here Denny Wyant for years Dr. Jensen for 25 years testified to the good name and that he had for many Dowling stated that the bank was closed charged Gutru with any and no figures had been sented showing defalcation and he had not been charged any money. charghe said, the Newman Grove State Bank had received posits and not Gutru." He said they had accused Gutru and being accesory taking of deposits. He said this was the first prosecuted in which the accused ruled Mr. Craven stated that the notes aggregating which were bad, eight them were made Gutru's tengreat number of these purchased cattle from Knudson. He stated that note Sever Severson for $3700 was ered by chattel mortgage stock including some Sam Juelson had testified that this given Severson though the latter testified on the stand that he could nor and had never that had received from sale of these mortgaged been paid Gutru to and not on the note the bank. Craven held before up the jury appraisal that had been made land and signed by and John Storek. that Geo. Gutru the public. explained that 3Q the complaint against was made by the State John and Storek shown to witnesses for the The appraisal was dated February That Gutru found and Storek be and in order to dis their he testimony had asked sign this appraisal farm near the State would likely about. Mr. Weiand had Gutru had appraisal as being too had finally yielded Gutru's not too signed Gutru told Mr. that owner wanted to loan this land and would him the value high. "However," said Mr. only trick credit the witness this copy and loan been for this paper would have been filed with the Craven concluded his been listened interest by the jurors by up the statements he William Dowling made the on the inside first argument to the stated the jury for the prosecutor, then consisted Gutru guilty and mostly should be punoratory. He made no ished but Gutru effort checked out the evidence that his to had been money pay his brought out in the Sam Juelson's sister case but started and Glen he not the habit Peterson's mother had of withdrawn guing when there their money order to nothing He stated that interest. He the stated that have been Ekstrom's note brought bought state. out the books Chicago bank and that and this Stovie and others had put property plane importance for statements. than figures. not be juggled secution brought in the name said Mr. state against citizen." Gaines, man's reputation interested in protecting six society from to the character desire ascertain the Gutru." What evidence insol the myself not directly charged. He said the case prosecuted slurs and innuendo. stated the county attorney wanted do what had stated that the bank took deposits but all banks deposits to the time their closing, and that they must that he bank was and that Gutru knew that solvent. Dowling referred to the timony of Tim Preece and Dennis on land values in and that the testimony John Johnson not agree with the property he had He told about the crash when values fell. When the crash came in Mr. Dowlng said that the coln officers came to the bank cossairs and set examiners and work. Hoagland there weeks and then came and did they find No Fred Allen the stand and his testimony. believe Geo. Gutru guilty, Dowling, you will have do has loaned out millions of dollars the people of that community," you go down the penitentiary visit him he found guilty,' said Dowling, along the cashiers and presidents of your banks that been bank closes and the positors money, Mr. Dowling stated, the people angry they want somebody said that six good reputable men of this munity, had testified the good character people of any community there always some of vindictive nature would testify against man. He stated that Gutru's reputation at stake and that the physical punishment was nothing compared the mental punishment he through with. Attorney Frank H. Gaines Omaha stated that in nearly years of experience in the law fession he had never this. The bank failed on crime had been mitted why did not the charge find before this. the examiners who examined the bank before failed found nothing why did not the department begin action. sets of said Mr. Gaines, find anything that could wrong fastened on He stated that Frank Howell, one the abllawyers of Omaha had been cured by the state for special but had failed to find "Then this from Omaha," referring to Mr. McPherup go through charged that note was put in the bank swell the this note there when the examiners the bank was first clossaid Mr. Gaines, facts laid before County Attorney and he found nothing, then they placed before Kelsey and he found nothing, waited nearly three years when the memory had become Gutru knew that the bank insolvent, then he guilty, but did he know that the the notes broke." insolvent March when was examined department examiners Bliss recommended that the two banks consolidated and Currie examination then terested that he came back second time. Why should the partment close the bank without moment's bring charge against Gutru after and Kelsey found nothing for which to prosecute Mr. Gaines closed his telling the story the that was brought before Christ committed adultery Christ said, him that blame cast the first stated that wrong send the other bankers in the county banks had failed free He stated that Gutru broke admitted Craven in his closing ment stated that the happened in in criminal for the state is always tried counsel for the reference to some that the opposing counsels made Mr. Craven. stated, "You have watched and know how has tried. have always tried one allowed to the examiners as to the bank they do not this information." The only of information Gutru himself and the bank's books. Ekstrom note was taken bank only collateral. As to the John Johnson property statement. was an old one and there were only three property statements the bank that out 1929, four 1928 the others all earlier than that. Only one was in evidence that the period of May, July, The money drawn in few days time the first evidence that Gutru the bank was insolvent. $8,000 and $9,000 taken by relatives of Gutru and officers their relatives. There no use say that Gutru did know about this for not the kind of man transactions of that kind be made without his knowledge. There enough cash in the bank this in cash they good notes which were subsequentpaid. willing to be fair but the laws should be said Mr. Craven. the the community and running bank am for Gutru but how about the titude that were wrecked by laws against the bankers mere technicalities but are the protection of the depositors have the banks raised their these must enforced. The this bank was brought about the banker using the money finance his affairs. witnesses called by were: John Nelson, George Olson, Frank Jensen, Mrs. Evelyn Kelley, Charles Rosenberg, Peter Bruland, Sam Juelson, Chris Knudson, Eng. Arthur Bert Homan, Oscar Huseby, Walter Scott, Martin son, Paul Ekstrom, W tosh, Harry Henatsch, Wayne Pherren, John Johnson, August Larson, Clarence Oscar Anderson, Gustafson, Peter Emig, W. PorNick Nicklossen, Valentine Voge, Carl holm, W. Reuben Johnson, John John Weiand, Storek, Lewis Nelson, Olie Elmer Peterson, Martin Fred Allen, Sorenson, Clarence Bliss, Walter Purtzer, Price, Flood, Winnie Johnson, Anna berg, Sever Severson and Hinman. The witnesses for the defense Hardy, Preece, Oliver Olson, Phil Congram, Rose Brogan, Alfred berg, Anton Sam JuelRosenberg, Charlie Oss, Glen Peterson, Tommy Field, Dr. Jenson, Englesgjerd, Herrington, Turmo, Andrew Dahlsten, H. Gutru, Phoebe Gutru, Kolzow. Walter Purtzer, George and Mrs. Rose Brogan to the records. Sunday the church. and Mrs. Elmer Johnson Eunice Mae were dinner guests and Mrs. Nick day. Doris Roberg the home of sister, Mrs. Roy Ander- Visitors at the Dan home Sunday Mr. and Mrs. Hendrickson, and Mrs. Tillman Hendrickson and daughters, and Mrs. Linus Thompson, Lloyd Johnson and Dale Donald and John Johnson. and Julius Boschen and Dennie spent Tuesday evening and Mrs. Ernest Hendrickdinner with Mr. and Nelson, Mr. and Mrs. Emig and daughters the spent ternoon there DeLoris Duhachek Friday spent afternoon Maggie Duhacheks. Nick Nickolysen and Nina, Mrs. Henry Halverson Sophia and Herman spent Wednesday afternoon Helleck and Mrs. Fred Pospisil and and Agnes Pospisil visited Sunday afternoon with Mr. and Clarence Duhachek. and Mrs. John Duhachek family visited Friday evening Boschens. Visitors Oscar Froistads Sunevening were Mr. and Matt Froistad, Mr and Mrs. Mandy Rasmussen, Mr. and Mrs. John and son and George Greil. Nick Nickolysen Olive and took dinner Friday the Elmer and Frank Johnson home and Ralph Duhachek Friday evening with Alfred Selmer Roberg. and Mrs. Nels Nelson and Martin Albion Friday Nick Nickolysen and family visited Sunday evening with Ekstrom and family. and Mrs. Alfred Barnett and LaDonna visited Friday evening and Mrs. John Nelson. John Lang spent Sunday Julius Boschens. Viola Meneely spent Tuesday ternoon with Mrs. Lloyd Johnson. Olive Nickolysen spent from Sununtil Tuesday with her sister, Elmer Johnson and family. Mrs. John Blaalid visited with Selmer Friday afternoon. and Mrs John Duhachek and family, Marie Nickolysen and Wm. Schmidt and Harry and Kathryn visited the home of Mrs. Maggie Duhachek Sunday afternoon. and Mrs. Norman Schmidt and Norma Jean visitors Wm. Hughes home Sunday. Harold Nickolysen assisted HelLee with field work few week. few neighbors cultivated corn Martin Monday. and Mrs. Chris Melland and children visited with Mrs. Ole Sunday afternoon. and John Elsner, Eugene and Evelyn spent Friday afternoon the Alfred Williams home near Monroe. and Mrs. Ed Koenig and family visited with Mr. and Schulze Sunday Mrs. Aukerman of Leigh Mrs Melvin Kemp of Schuyler spent few of last week Swoboda home. Sophie Halverson spent the week the John Peterson home. Kenneth Sandin left for Kansas week for work. Farmers Union Meeting was held the Chas. Oss home Thursday. Forrest Swoboda spent Wednes evening home folks. Frank Schagunn and with and Mrs. Hank Kenneth Nitz of Stanton spent the latter part of last week with Margaret Ann Jimmie Mellberg spent latter the of last week Lyon. Clara Halverson summer school spent the week end with her parents. Some of those from this vicinity who attended the trial of George Gutru at Madison last week Mr. and Mrs. Lew Schmidt, Emig, Wm. Schmidt and Kathryn, Maggie Duhachek and Blanche, John Elsner, liams, Charles Oss and Anton enburg. Ethel Olson returned home from Mary's hospital Columbus Wednesday after an appendicitis operation. large crowd attended the base game near Closter Sunday, playing Rose Hill. score in favor of Bonner's.


Article from Lincoln Journal Star, July 19, 1932

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COURT CHANGES MIND ABOUT RECEIVERSHIP Holds Owner Mortgage May Have Receiver Despite Prior Appointment. The supreme court Tuesday set aside decision previously entered in controversy between Receiver Luikart of the Newman Grove State bank and the Prudential insurance company, from Madison county, Judge Rose vigorously dissenting The bank had taken over lands upon which the insurance company held mortgage. It asked for a receiver to collect rents and manage the property. In the previous decision this request was denied on the ground that the land was already in the possession of the general bank receivership. On the reargument it was stated by attorneys for the insurance company that the law involved was of vital importance to mortgage holders because of the large number of bank receiverships. In an opinion by Judge Good, the court now holds that as the bank receiver was named by the district court of Madison county while the land lies in Boone county, the rule of law does not apply that where all the property of an insolvent debtor is in possession of a receiver duly appointed, another [court of concurrent jurisdiction will not, in a subsequent action, interfere with such possession. The district courts are not of concurrent Jurisdiction since the only court possessing jurisdiction to foreclose a mortgage on realty is the district court for the county in which mortgaged realty or some part thereof is situated. The mort- gagee, therefore, is entitled to have receiver named regardless of the prior general receivership. In his dissent Justice Rose says that the grounds set up in the majority opinion are indefensible, that departs from & sound principle of law, and that no conflict in jurexists.


Article from Lincoln Journal Star, July 20, 1932

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ABOUT Holds Owner Mortgage May Have Receiver Despite Prior Appointment. The supreme court Tuesday set aside decision previously entered controversy between Receiver Luikart the Newman Grove State bank and the Prudential surance company, from Madison county, Judge Rose vigorously disThe bank had taken certain lands upon which the surance company held asked for receiver to collect and manage the property. the previous decision request denied on the ground that the was already the possession the general receivership. the reargument was stated for insurance that the law vital mortgage holders because the numof bank an Judge Good, the court now that the bank named by the district court Madison county while the land lies Boone county, the that where all the property solvent of duly another court of jurisdiction will in subsequent action, interfere with such The district courts not of concurrent jurisdiction the only court possessing foreclose mortgage on realty the court the county which mortgaged realty or some part mortentitled have regardless of the general In his dissent Justice Rose says the grounds set in the jority opinion are indefensible, that departs from sound principle law, and that no conflict in jurisdiction exists.