13340. Elkhorn Valley Bank (O'Neill, NE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 1, 1904*
Location
O'Neill, Nebraska (42.458, -98.648)

Metadata

Model
gpt-5-mini
Short Digest
6d1968a0

Response Measures

None

Description

The Elkhorn Valley Bank of O'Neill collapsed in November 1904 after officers (president McGreevy and cashier Hagerty) absconded; articles describe insolvency/embezzlement and appointment of a receiver. There is no clear contemporaneous description of a depositor run prior to suspension — the failure appears driven by bank-specific malfeasance and insolvency. Receiver (O. F. Biglin) and lawsuits follow in 1905.

Events (3)

1. November 1, 1904* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure caused by embezzlement/insolvency and misconduct by officers (President Bernard McGreevy and Cashier Patrick Hagerty) leading to collapse and suspension.
Newspaper Excerpt
the failed Elkhorn Valley Bank ... disappeared from O'Neill along with Cashier Hagerty late in November, and ... the defaulting president of the suspended Elkhorn Valley Bank
Source
newspapers
2. December 15, 1904 Receivership
Newspaper Excerpt
Bank Examiner Whittemore has made his official report to the state banking board of the condition of the Elkhorn Valley Bank at O'Neill and this will be followed by an application for the appointment of a receiver.
Source
newspapers
3. January 19, 1905 Other
Newspaper Excerpt
It appears quite probable now that a definite and friendly settlement will soon be made between the depositors and officials of the failed Elkhorn Valley Bank ... O. F. Biglin, the receiver of the bank, says that all of the 183 depositors ... have expressed ... willingness ... to enter into a friendly settlement
Source
newspapers

Newspaper Articles (11)

Article from Valentine Democrat, December 15, 1904

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more of the year will not find things in the same condition they did two years ago, all ready for the start. This is because the last legislature authorized the secretary of state to spend not more than $1,000 in getting ready for the session, the remainder of the purchasing to be done by the legislators themselves. This $1,000 will not go very far. The bill files for the house and senate will cost between $600 and $800 and these have to be ordered in advance of the session because they have to be manufactured and cannot be bought on short notice. The dockets for the records also will have to be ordered, as they have to be manufactured. This will take most all of the $1,000 and there will be nothing left with which to pay for labor in fixing up the two chambers. A considerable quantity of inkwells, pencils, etc., were left over from the last session, but not near enough to go around, so many of the desks will be barren when they are taken possession of by the legislators. *** Bank Examiner Whittemore has made his official report to the state banking board of the condition of the Elkhorn Valley Bank at O'Neill and this will be followed by an application for the appointment of a receiver. The report will not be made public at this time, for the reason that in the opinion of Attorney General Prout such publication would hamper the work of settling up the affairs of the bank and the names of some individuals are used in the report that it is not deemed expedient at this time to give to the public. The official report, however, does not differ materially from the reports of the condition of the bank as already published. The $25,000 worth of notes found by the examiner that he at first reported as being apparently worthless are worth something. Some of the notes are new ones and are not yet due. Many of these notes, it is safe to say, can be realized on for the benefit of the depositors, but to what extent is not known. No cash, other than the ten copper cents, has been found. * At a meeting of the state board of compromise at Lincoln, at which was discussed the Bartley bondsmen case, Attorney General Prout read a history of the litigation and closed by recommending that the board settle the matter. While no formal proposition was made to the board, it is understood that the bondsmen are willing to pay the court costs of the suit. It has been learned by the board members that W. A. Paxton has spent a large sum fighting the case. It was told a member of the board that Mr. Paxton gave his wife and son each $200,000 and kept $200,000 himself. Since the suit began it is said he has spent $200,000 in defending the suit and in other ways, and that a judgment would be valueless. It has been reported to the board that if it fails to compromise the suit the bondsmen expect to go through bankruptcy. * The semi-annual report of the auditor filed with Gov. Mickey Saturday, shows the warrant indebtedness of the state to be $2,342,979.61, or an increase during the last two years of $335,650.98. One year ago the outstanding warrant indebtedness was $2,263,177.21. The increase in the warrant indebtedness was occasioned by the warrants issued for the payment of the permanent improvements as authorized by the last legislature and by the inadequacy of the old revenue law to bring in sufficient money with which to meet the state's obligations. At the present time the warrants out against the general fund amount to $2,253,401.92 and against the temporary university fund $81,003.99. * Chief Clerk Harnley, of the office of the state superintendent of public instruction, is compiling statistics for the biennial report of that department and figuring up the number of school children in the state in order to apportion out the school money to the various districts. Douglas County at this time, according to the report of the county superintendent, has 42,958. At the close of the school year Douglas County had expended for school purposes for the year $750,301.10. Last year there was expended in all the districts of the state $4,517,229.46, or there was spent in Douglas County 16 2-3 per cent of all the money that was spent in the entire state. ** Rev. W. K. Williams, chaplain of the state penitentiary, has resigned his position and the place is now vacant. The resignation was tendered to Gov. Mickey some days ago, but was not made public. It is probable that Rev. P. C. Johnson, of Tecumseh, will be appointed to fill the vacancy. Rev. Mr. Johnson is an old-time preacher and stands high in Methodist circles. He is an old soldier and is at present without a charge. It is understood that he was formerly pastor of one of Gov. Mickey's churches. Ten of the 517 state banks under the jurisdiction of the state banking board have neglected to file reports of their condition at the close of business Nov. 10, as called for by the secretary of the board several weeks ago, and the presentation of the report of the secretary to the members of the board is delayed until they can be obtained. The penalty for delinquency probably will be enforced. Secretary Ludden, of the State Poultry Association, is sending out to poultry fanciers the list of premiums to be be awarded at the coming poultry show to be held in Lincoln Jan 16 for five


Article from New-York Tribune, December 20, 1904

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MAY TRY TO LYNCH BANKER. Intense Feeling Against Absconding President in Nebraska Town. BY TELEGRAPH TO THE TRIBUNE.] O Nelli, Neb., Dec. 19.-The report of the arrest at Phoenix, Ariz. of Bernard McGreevy, the fugitive president of the Elkhorn Valley Bank of O'Neill. has created intense excitement here. McGreevy's return home is awaited with much eagerness. Feeling is running high against McGreevy, and fears are entertained that personal violence may be offered when he returns. A number of years age Treasurer Scott, of this county, an embezzler, was lynched by a mob on account of his crime. The popular feeling against McGreevy is similar to that which led to Scott's death. There is little doubt that if McGreevy had been caught the day after the bank was closed he would have met the fate of Scott. Since then the feeling against him has subsided somewhat.


Article from Arizona Republican, December 25, 1904

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E DOUN in the County Jail Sheriff Hall of O'Neill, Neb. Arrived Yesterday With Requisition Papers for His Return. Sheriff C. E. Hall of O'Neill, Neb., arrived in the city yesterday after B. B. M'Greevy, the banker charged with participating in the wrecking of the Elkhorn Valley bank of that city. last Sheriff Hall intended to return night but he became so much interested in the valley that he decided that he would like to see more of it and he will remain in town a day or two. Notwithstanding M'Greevy after his arrest instructed the officers here to wire the sheriff of O'Neill that he would waive extradition the sheriff decided to take no chances and procured saw requisition/ papers. When he M'Greevy at the jail the latter was apparently glad to meet him and bade him welcome. He said he was ready to start back at once. Still the sheriff was not so sure of him that he would neglect any formalities and he went to the capital and had the requisition honored by Acting Governor Nichols. At the time of his arrest M'Greevy said that the sheriff was an old time friend who would be inclined to assist him out of his trouble: he did not think that he would even insist on his being locked up: that he knew as well as he did that no intentional wrong had been committed. The sheriff, however, tells a different story. He has no confidence whatever in M'Greevy and never did have any. Nor was there ever a time when he felt that the-Elkhorn Valley bank was safe. That financial institution was established in 1886 by Patrick Haggerty, the cashier, who is also a fugitive from justice. It was then a private banking institution under the name of Gardiner, M'Clure and Haggerty In the early nineties it was reorganized and became a state bank with M'Greevy as president, Haggerty, cashier and Haggerty's wife as vice-president. Haggerty's of wife by the way is the sister M'Greevy. The bank had a capital stock of $25.000 but it was not generally understood that there was anything behind it. The business of the institution consisted for the most part of the shaving of notes and the acceptance of deposits. It did very little in the way of loaning money and most of its business was transacted with the smaller farmers and stockmen within a radius of fifteen miles of O'Neill. After the failure of the bank and an Investigation by the state bank examintr it was learned with surprise that the deposits amounted to about $63.600 which is only $2,000 less than the Republican stated the shortage was of in the account of the arrest her M'Greevy. Sheriff Hall said that there was found in the bank in actual cash a single dime. There were so-called securities to the amount of $20,000 which bad been given while the bank was running under the name of Gardiner, M'Clure and Haggerty and altogether they were worth less than a dime. Sheriff Hall says that the failure of the bank has spread disaster among the small farmers and depositors in that immediate section Some months herore the collapse the bank offered a higher rate of interest than other banks in that part of the state had been paying and in consequence its deposits had been increased. Th sheriff told a pathetic story of the losses of one or the depositors a woman by the name of Norah Sullivan who had lived in O'Nei!! since the founding of the town. She had accumulated $1,400 by taking in washing and had deposited it in an institution known as the Holt county bank. That bank broke some years ago and she lost every cent of the money. She courageously went to work again and got together about $1,000 which she put into the Elkhorn Valley bank. It is not likely that she will ever recover any part of that money and now she is an old woman and utterly without means. Among the statements made by M'Greevy after his arrest here was one that he had been the treasurer of O'Neill and had considerable money in his possession before he left the state. IIc said that he had made a settlement with the city and had squared himself. Conce sung that transaction the sheriff said that M'Greevy had an interest in a section of land but that the greater part of the interest lay in the bank. M'Greevy, however, without the knowledge or consent of the city gave to the city a mortgage on all the land and the sheriff said that that is the only settlement which he ever effected. It was a crazy transaction but in keeping with the subsequent movements of M'Greevy In his flight he advertised himself. Leaving O Neill he went to Omaha and having spent some time at the Merchants' Hotel where all northern Nebraskans stop he bought a scalper's ticket for Denver so that there was no trouble in following him into.the southwest. In fact, he was looked for in no other part of the counHaggerty was regarded as the better business man of the two. While not a great deal of confidence was reposed in him ho was held in some respect and was regarded as the real father of the town of O'Neill and he had done more to build up that community than any other man. O'Neil was named after General O'Neill. the noted Fenian and a brave officer in the civil war. After the war be established an Irish colony there but for Haggerty it would have died out. Passerty went into the mercantile business, expanded and became so involved that several of his creditors closed upon him and in doing so damaged his reputation to such an extent he was given ground for a suit for which he won and It was immediately that $18,000. that damages the banking house of established. after recovered Gardiner, this M'Clure and Haggerty was


Article from Valentine Democrat, December 29, 1904

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# Bernard McGreevy Caught-Fugitive Banker Arrested at Phoenix, Arizona-Agrees to Come Back to Nebraska and Face the Musie. A Lincoln State Journal special from Phoenix, Ariz., says: Bernard McGreevy, fugitive president of the failed Elkhorn Valley Bank, of O'Neill, Neb., was arrested here Sunday. McGreevy disappeared from O'Neill along with Cashier Hagerty late in November, and as it is alleged he had been speculating in Arizona mining property officers here were warned to be on the lookout for him. He was arrested at the City Hall plaza and a deed to Mrs. Sarah McGreevy to some Pinal County mines was found on his person. McGreevy confessed his identity and said he would return to Nebraska without an extradition. An O'Neill special states that Bernard McGreevy, the defaulting president of the suspended Elkhorn Valley Bank, of O'Neill, who has been captured in Phoenix, Ariz., is held in jail there, awaiting the arrival of an officer from Nebraska. The sheriff has gone to Lincoln to secure requisition papers from Gov. Mickey to bring McGreevy back to stand trial on the charge of embezzling public funds. McGreevy was city treasurer and treasurer of the school district. McGreevy made a statement Monday in which he places the blame for the bank's collapse on Patrick Hagerty, the cashier. "I was president in name only," said McGreevy. "In reality I was merely a bookkeeper. Whatever Hagerty said went. I did not know of Hagerty's flight until I was arrested. Coming to Arizona is the worst thing I did. I knew two months before Thanksgiving the bank could not hold out much longer." McGreevy wept when he told of his family being alone and ill. He had $10 in his possession and $1,000 on deposit in the Phoenix National Bank when arrested.


Article from Valentine Democrat, January 19, 1905

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MAY ESCAPE PUNISHMENT. I Officers of Defunct O'Neill Bank May Keep Out of Court. An O'Neill special says: It appears quite probable now that a definite and friendly settlement will soon be made between the depositors and officials of the failed Elkhorn Valley Bank, along the lines of the proposition submitted by Mrs. Haggerty, which proposition was published some time ago. O. F. Biglin, the receiver of the bank, says that all of the 183 depositors, with very few exceptions, have expressed not only a willingness but a wish to enter into a friendly settlement and keep the affairs of the bank out of court entirely, if the officials of the bank will turn over their private property to the depositors.


Article from The Norfolk Weekly News-Journal, April 21, 1905

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MORE SUITS AT O'NEILL TEN MORE DEPOSITORS SUE FRED WHITTEMORE. DAMAGES TO AMOUNT OF $6,749 There are Now Suits Pending, Claiming Damages in the Amount of $45,000 From the Failed Elkhorn Valley Bank at O'Neill. O'Neill, Neb., April 20.-Special to The News: Ten more of the 183 depositors of the failed Elkhorn Valley bank have begun suit to recover damages from State Bank Examiner Fred Whittemore and the Fidelity and Guarantee company of Maryland. The petitions are all the same, charging negligence in checking up the bank in December, 1903. The depositors sue for 60 percent of their deposits, figuring the receiver will be able to pay them the other 40 percent. The aggregate of damages asked by the eleven depositors is $6,749.81. The actual legal claims against the defunct institution amounts to som $45,000. The examiners report afte the failure showed the liabilities be about $65,000. About $10,000 of this has been found not to be legal claims against the bank but claims against McGreevy as city and school treasurer and three other private claims.


Article from Omaha Daily Bee, September 24, 1905

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BANKERS OFFER A COMPROMISE Officers of Defunct Institution Would Escape Prosecution. NORFOLK, Neb., Sept. 23.-(Special.)President Bernard McGreevy of the defunct Elkhorn Valley bank at O'Neill, Neb., who is now in jail; and Cashier Patrick Hagerty, who is still missing, would like to go free from the law, with all criminal prosecutions abandoned by the losing depositiors in the failed bank, and have made an offer to the depositors, through their attorney at O'Neill whereby the depositors are to receive a little money, a house and a little mining stock in return for the liberty of the absconding officers. The officers now offer the money that is in the hands of the receiver, the home of Hagerty and $5,000 worth of mining stock in the Clipper Mining company. That stock now belongs to McGreevy and he is to take it up with cash within two years. In return they ask that prosecution of them be stopped. Depositors will probably not accept the offer.


Article from The Norfolk Weekly News-Journal, September 29, 1905

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FREE O'NEILL BANKERS? IT IS REPORTED THAT THEIR FRIENDS WOULD DO THIS. SETTLING SHORTAGE IN PART The Latest Program, Says the O'Neill Frontier, is to Let the Bank Wreckers Down Easy-Depositors are Not Taking Kindly to it. O'Neill Frontier: The manipulators of the affairs of the defunct Elkhorn Valley bank are trying to develop another lead. Their solemn pledges, high formed promises and deftly drawn plans of having the examiner and his bond company pay out the defalcations of the bank officials have been abandoned and the buncoed depositors are now being besought to enter into a set of stipulations of another character. To those who have observed the various phases of the manipulation of the wreckage strange conclusions come. Offers of various kinds have been presented and promises of speedy settlement and payment in full, with the net result that ten months after the failure the depositors have received twenty per cent. of their money. Some few have effected a settlement for 60 per cent. of their deposits. Now another offer is made. Recently a long conference was held in the office of the attorney for the wreckers where the depositors were asked to accept in settlement the cash now in the hands of the receiver, the Hagerty home and $5,000 worth of stock in the Clipper mine owned by McGreevy as security for the balance, McGreevy to have two years in which to pay. It is also understood that as a part of the compact criminal proceedings against the bank officials will be forever disposed with. Some few of the depositors with whom we have conversed look with disfavor on this latest proposition and say the only way in which they care to settle is cash in full. They do not consider that the proposition carries with enough cash to warrant them accepting it.


Article from Valentine Democrat, October 5, 1905

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BANKER SEEKS FREEDOM. O'Neill Man Would Make Settlement with Depositors. President Bernard McCreary, of the defunct Elkhorn Valley Bank at O'Neill, who is now in jail, and Cashier Patrick Hagerty. who is still missing, would like to go free from the law. with all criminal prosecutions abandoned by the losing depositors in the failed bank, and have made an offer to the depositors through their attorney at O'Neill whereby the depositors are to receive a little money, a house and a little mining stock in return for the liberty of the absconding officers. They offer the money that is in the hands of the receiver. the home of Hagerty and $5,000 worth of mining stock in the Clipper Mining Comany. That stock now belongs to McGreevy. They ask that prosecution of them be stopped. The depositors will probably not accept the offer.


Article from The Norfolk Weekly News-Journal, December 22, 1905

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# THE O'NEILL LAND OFFICE PRESIDENTIAL LIGHTNING IS NOT EXPECTED TO STRIKE. HAS PASSED AN INSPECTION Register Weeks and Receiver Deaver May Congratulate Themselves Upon Their Standing at the Department of the Interior. O'Neill, Neb., Dec. 21. - Authoritive word comes from Washington that may be taken that lightning may not be expected to strike in the govern- ment land office here, although up- heavals are going on in other sections of Nebraska in which are large tracts of the public domain. In fact, Register Weekes and Receiver Deaver can con- gratulate themselves on the standing of the O'Neill land office at the de- partment of the interior. The local land office has passed in- spection since some of the other Ne- braska offices have had an overhaul- ing and the officials here have the flattering assurance from authoritive sources that the office stands second to none in the United States. Judge Harrington failed to sustain the contention of the defendants that the court had not jurisdiction in the case of Bridget Corrigan vs. Fred Whittemore as state bank examiner, who is being sued by depositors of the defunct Elkhorn Valley bank, and the case is proceeding to trial. The pros- ecution took up the entire day examin- ing its witnesses and a number of fic- titious notes were introduced in evi- dence to show that bank was insolvent at the time Mr. Whittemore examined it. The fire edpartment gave a benefit play, "Southern Folks," and the enter- tainment was so well received by the audience that they were asked to give the performance again.


Article from The Norfolk Weekly News-Journal, December 29, 1905

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WHITTEMORE IS CLEARED CASE AGAINST STATE BANK EXAMINER IS CLOSED. JURY FIND FOR DEFENDANTS Action Grew Out of the Collapse of the Elkhorn Valley Bank in O'Neill Last November — Whittemore Sued Because He Didn't Discover Condition. O'Neill, Neb., Dec. 26.-Special to The News: The jury found for the lefendants in the case of Bridget Cor. rigan vs. Fred Whittemore, state bank examiner, and the Fidelity and Guarintee company of Maryland. The case went to the jury Saturday evening just at the supper hour after 1 wearying trial lasting all week. After taking their evening refreshments the jury returned to the court house and were closeted in the jury room for about half an hour when a verdict was returned. The verdict was read in open court and Judge Harrington dismissed the jury from further service. This closes an important suit, not only to this community but to the entire state. Bridget Corrigan was one of the heavy losers by the collapse of the Elkhorn Valley bank here in No. vember, 1904. The president and cashier of the bank fled, the president being apprehended in a short time at Phoenix, Arizona, and brought back to O'Neill, where he is now in jail. While the majority of the depositors were endeavoring to get at the facts connected with the failure and recover their money by legal procedure against the bank's president, some ten or a dozen of the depositors were induced by the county attorney and the attorney for McGreevy to begin suit against the bank examiner for the amount of their losses. The plaintiffs claimed that Whittemore made false reports to the state banking board and by reason of these false reports a bank which they alleged to be insolvent was kept 1 running and depositors induced to put their money into it. To make out that the bank was insolvent in December, 1903, when Whittemore last made an e examination of and a report on the institution, a bunch of alleged ficti] tious notes aggregating some $23,000 was introduced in evidence as the } strong hand of the prosecution. ( The defense made a strong showing i along the line that certain covert a frauds cannot be detected by a bank i examiner in the performance of the S functions of his office. To illustrate, two notes, one of them found as an f asset of the defunct bank and the other held by a private person, were r introduced in evidence by the defense. O The notes were identical in every ret spect and the man whose name was S signed to both swore on the witness stand that he had never signed but one note with that bank but that he could not tell which of the two he had a signed, so near alike were the signatures.