American State Bank

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: August 23, 1925
Location: Omaha, Nebraska (41.259, -95.938)

Metadata

Model: gpt-5-mini
Short Digest: 0f45407f

Response Measures

None

Description

Articles (Aug 1925 and Jun 1926) refer to the American State Bank of Omaha as being in the hands of a receiver and discussed in litigation over deposits and guaranty fund claims. No article describes a depositor run; the bank had been taken by the state banking department and placed in receivership, indicating suspension and permanent closure/receivership.

Events (2)

1. August 23, 1925 Receivership

Newspaper Excerpt: receiver of the American State bank of Omaha ... also in receiver's hands (mentioned in 1926 Supreme Court case discussion).
Source: newspapers

2. August 23, 1925 Suspension

Cause: Bank Specific Adverse Info
Cause Details: State banking department stepped in and took over the bank; bank placed in receivership due to insolvency/financial failure (legal disputes over deposits and overdrafts).
Newspaper Excerpt: acting receiver the American State bank and the Pioneer State bank Omaha ... receiver of the American State bank
Source: newspapers

Newspaper Articles (5)

1. August 23, 1925 Lincoln Journal Star Lincoln, NE

Article from Lincoln Journal Star, August 23, 1925

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GOOD FEES KNUDSON COURTS ALLOWED HIM WANTS Secretary Griggs of Guaranty Fund May Ask for Return of Yet Paid. reported the capitol that the department of trade and commerce, Kirk Griggs, secretary, will endeavor to prevent K. Knudson, former secretary of the department, from drawing pay for acting receiver the American State bank and the Pioneer State bank Omaha and for performhim receiver of the American State bank Lincoln. It said the department will endeavor have Mr. Knudson return $750 drawn by him as receiver Bank of Waverly. A total of may be involved. The same action likely to taken in regard to $750 drawn Hart, of the depart ment before Mr. became secretary. Mr. said to have drawn $750 for his work receivbank Blair. Bodie receiver in fact of that bank until Mr. Hart retired from the office of secretary of department. He then active charge receivership for one month and days. The department trade and commerce and the guaranty fund commission said to agreed upon policy to pursued matter of Mr. Kundson's pay receiver. Griggs secretary of the department and chairman guaranty fund commission. He has acted receiver of any failed bank and has drawn no pay except his salary of $5,000 year. refused the claims of Mr. Knudson for pay receiver in any case. The state law relating secretaries of the code departments says: appointee each department shall devote his entire time the duties of his office and shall hold other office position Knudson allowed $750 by court when he was charged receiver the Bank Waverly He was succeeded by Dempster Geneva, the guaranty fund commission, short time ago. Knudson was allowed $1,158

2. August 23, 1925 Lincoln Journal Star Lincoln, NE

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County by the district court of Douglas county of the American State bank of Omaha and $1,158 the State bank of Omaha, making total $2,316, these have been paid to him. He ought another receiver the American State Lincoln. he order of court have total of $4,224 for as bank receiver which performed while he ing year from the state of the code department of trade and In the case the amounts by the district Douglas county adopted the fund of Mr. oring an the court before made the order of lowance.

3. March 18, 1926 Nebraska Signal Geneva, NE

Article from Nebraska Signal, March 18, 1926

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DISTRICT COURT Turek's Suit for JudgOut on Directed Verdict. Summary of jury cases this term: Byron Roberts vs. C. Stephens, damages for hitting cow with an auto, verdict by jury in favor of Roberts for $50. Nebraska Wheat Growers Associa Jim Ulrich, judgment asked for solling wheat outside the association, dismissed by plaintiff after jury had been empaneled. Thomas E. McKimmey VS. Woodman Accident Association Lincoln judgment, case, withdrawn and settled by defendant by paying $600 after four jurymen had been Irene Harrington vs. Glen Lovell, bastardy, verdict of guilty by jury. State of Nebraska Fred Stanley, dismissed and charge ing in the delinquency minor filed. Stanley plead guilty to the latter charge in county court was sentenced to six months in jail, sentence to begin James Turek VS. William Sladek, Edward Sladek, Anton Sladek, William Vavra and Frank *Becwar, judgment, directed for defndants. Emil Folda, American State bank Omaha vs. W Geiselman, judgment on notes for $13,000, now being heard After the close of the Glen Lovell case last week Judge Proudfit adjourned court until Monday The Lovell last Wednesday brought in ver dict guilty on bastardy charge preferred by Irene Harrington. The jury was from m. until 11 o'clock. Within six hours the jury had reached ten to two verdict, which is sufficient in civil case, but the other jurymen made it unanimous before coming County Attorney Keenan and Deputy Grady Corbitt prosecuted the case and Waring Waring appeared for the defendant. Lovell was liberated under $1,500 bond until sentence is passed. motion for new trial was argued Tuesday but the court not rendered decision. The case will no doubt be appealed to the sucourt. The damage suit of James Turek VS. William Sladek, Anton Sladek William Vavra and Frank Becwar was taken up when court convened Monday afternoon, the following jury being empaneled Fred Baker, Fred Bassett, James Adam Deering, Mike Oberlander, W. Black, John Robinson, Albert Lentfer, Rhinehard Everts, Merryman, Amos Frieden Bridgman. Turek asking for judgment because of alleged persecution by the defendants, the being based on the action the defendants in filing insanity charges against Turek The sanity commission dismissed the charges. shooting of William Sladek by Turek occurred shortly afterwards Following the presentation of the plaintiff's Judge Proudfit sustained motion for directed verdict fniding for the defendants. Turek represented by Guy Hamilton of Geneva and Frank Bartos of Wilber. The defendants were represented by Waring & Waring. Turek come from penitentiary at Lincoln, where he is serving on the charge, to attend hearing He has grown during his He to pen yesterday. County Attorney Keenan Tuesday afternoon dismissed the charge against Fred Stanley and filed new charge of aiding in the of minor. Stanley taken before County Fulton, where he plead guilty to the latter charge. He was sentenced to six months in the county jail. He has already been in jail sev eral awaiting hearing, but this not counted as part of the sentence. Wednesday morning the court began the trial of the judgment suit of Emil Folda, receiver of the State bank Omaha VS. D. Geiselman for on two notes. The defense that when the Geiselmans achiev controlling interest in the American State bank of Omaha the former owners considerable amount in uncollectable notes in the bank. Soon afterwards state banking department stepped in and took over the bank, alleged that the attorney general and the banking commissionthreatened to bring criminal action against Geiselman unless he turned over his own bonds, money and securities he had in the bank and also signed notes for $13,000. Geiselman alleges that they promised not to bring action against him he signed notes and fraud they secured his signature. He asked that the notes be cancelled and asked for judgment for the of the bonds and money taken by the officials. The following jury was quickly cured to sit in the Albert Lentfer, John E. Wheeler, James Ryan, Amos Frieden, Jacob Schroll, James Mikkelson, E. Black, Adam Deering, Mike Oberlander, Charles Pangle and John Robinson. M Skiles of Lincoln and Guy A. Hamilton represented the bank receiver Charles H. Sloan Thomas KeeGeneva and Mr. Schwarz of Omaha were attorneys for Geiselman. The case of Simmerman of Strang vs. the Dwelling House Mutual Insurance Co. of Lincoln was settled out, The insurance company paid $150 and the costs. The residence of Mr. Simmerman at Strang burned about two years and the insurance company alleged that the household goods were all sale in Stinton vs. Mar tha al, by the court. William Biba was the purThe tract consists of forty acres near Exeter. homes now have it an established custom and the children grow up in the atmosphere that is conducive to the building of fine character. May such We fortunate enough to have Dr. of the state Sunday school with us at the dinner and conference This is the first time for him to visit the school workers during the present His presence added enthusiasm and encouragement. The cradle roll kensington, of which Limback is will meet Friday this week with Mrs. Harry Ward. There have been several additions to this department lately. This is starting the child in the Sunday school almost as soon as he is born. Any baby is who not elsewhere member. The choir render the cantata "Easter Alleluia" Sunday evening of Easter. The Sunday school will give the play Charm School" the evenApril 16. Proceeds go to the building fund. This is lent. "Fellowship of prayer" readings for this week from John 13-15, chapters which introduce us to intimate contacts with Jesus. Notice to Creditors of Estate. Notice is hereby given to all persons having claims against the Estate of Fred Domling, deceased, that unless such claims are filed the office of the County Judge of Fillmore County on or before the day July, 1926, at o'clock they will be forever barred said estate; that being the time and place when all such claims will be and adjusted. Dated March 16, 1926 (Seal) FULTON, 25-4 County Judge. For Sale. Good seed corn. Old white corn per bushel, 1924 crop. Have 1,100 1,200 bushels. Location two and one half miles north Fairmont, west road. This corn must scooped out crib, no sorting information call George Cruse, 182 Geneva, Ralph Wullbrandt, 29-23 Fairmont. We have April and 15 as dates of selling corn. Cash Register Receipts. Are issued only upon sales. These receipts are to and are not given upon payment of 25-tf THE PICARD PHARMACY Food Sale. A Hi-Y food sale, Saturday at Medlen Shively meat market. Everything good to eat. 25-1 25-1 For Sale. Early Red River Ohio potatoes. ERNEST Ohiowa, Neb. Methodist Church. Sunday Calendar school. Service Theme, "For Their Sakes. League service. Lead Drake. :30-Evening worship Illustrated address, Hiawatha,' R. W. Eaton Last Sunday evening the Epworth league from had of the devotional league of the young people with Mrs. Bates, the Miss had charge of the serv. In addition to the league lesson, discussed by all present, there were selections by the Bruning league orchestra and special vocal num bers. Before the devotional service lunch served in the dining room by the Geneva league There total present of young folks. The was highly profitable Bruning invited Next Sunday evening R. W. Eaton of Omaha deliver his illustrated lecture "Hiawatha" the usual time for services. Mr. Eaton well known in this community for part of his career public school teacher spent in Geneva. His address is well received wherever given throughout Iowa and Nebraska and conveys just the message that ought to be brought young and old today This treat for the people Geneva because the lecturer desires to reciprocate the many kindnesses experienced here in bygone While the title dress Hiawatha, might well called 'Longfellow,' for the celebrated poet, his home, his posses sions and of his life told by members of the Longfellow family

4. June 25, 1926 Lincoln Journal Star Lincoln, NE

Article from Lincoln Journal Star, June 25, 1926

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FUND HELD NOT LIABLE WINS $25,000 CASE IN THE SUPREME COURT. Two Receivers Battled Over Question If Responsibility for Loss Rested With American of Omaha. The state guaranty fund won two cases, totaling claims for over $27,000 and interest, and lost one for $2,109, by reason of supreme court decisions rendered Friday. The judgments it won were for in excess of $25,000 claimed by the receiver of the Carroll Trust and Sav ings bank of Carroll, Iowa, and for $1,400 claimed by two children of Cashier Amos of the failed Citizens State bank of Kimball, upon which excess interest was paid. It lost for $2,109 in favor of the Nebraska National bank of Hastings. The Carroll bank claim was based upon an alleged deposit of $25,000 in the American State bank of Omaha, also in receiver's hands. The was an involved one. John Rolfsema, president and chief owner of the Iowa bank, had $25,000 of the Omaha bank and placed the proceeds there as deposit in the name of his bank. He afterwards paid off the note by drafts drawn upon Chicago, the proceeds. which went into his personal account. Subsequently, to reimbures his bank for this appropriation of the money, he gave deed to his farm. The court says this was full settlement by the bank and amounted to ratification of what he had done. says the transaction, so far as borrowing money on his individual note and putting the proceeds to the credit of the bank was concerned, coupled with repayment of the note, was equivalent to the bank borrowing the money and subsequently paying the debt. It points out that it was not until the bank got into receiver's hands was any claim made that the legal effect of the transaction was that of deposit still in the Omaha bank to the credit of the Carroll institution. This status does not exist and not liable. The Nebraska National bank of Hastings was correspondent for the Farmers State bank of Belvidere, which failed at time when it had an overdraft in the Hastings insti tution by reason of the payment by the latter of drafts drawn upon The court says that where bank with checking account in correspondent bank draws a draft on the latter and the drawee pays the draft in good faith in the regular course of business pursuant to custom between the two institutions, theerby creating an draft of the drawer bank, which is closed in the meantime by reason of and having reason believe that funds or eredits are in transit to fully cover the overdraft, may in equity be to the rights of the original holder of the exchange, and may participate to the extent of the overdraft in the bank guaranty fund.

5. June 25, 1926 Lincoln Journal Star Lincoln, NE

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FUND HELD NOT LIABLE WINS $25,000 CASE IN THE SUPREME COURT. Two Receivers Battled Over Question If Responsibility for Loss Rested With American of Omaha. The state guaranty fund won two cases, totaling claims for over $27,000 and interest, and lost one for $2,109, by reason of supreme court decisions rendered Friday. The judgments it won were for in excess of $25,000 claimed by the receiver of the Carroll Trust and Sav ings bank of Carroll, Iowa, and for $1,400 claimed by two children of Cashier Amos of the failed Citizens State bank of Kimball, upon which excess interest was paid. It lost for $2,109 in favor the Nebraska National bank of Hastings. The Carroll bank claim was based upon alleged deposit of $25,000 in the American State bank of Omaha, also in receiver's hands. The transaction an involved one. John Rolfsema, president and chief owner of the lowa bank, had borrowed of the Omaha bank and placed the proceeds there as deposit in the name of his bank. He afterwards paid off the note by drafts drawn upon Chicago, the proceeds of which went into his personal account. Subsequently to reimbures his bank for this of the money, he gave deed to his farm. says this was full settlement by the bank and amounted to a ratification of what he had done. It says the transaction, so far as borrowing money on his individual note and putting the proceeds to the credit of bank was concerned, coupled with his later repayment of the note, was equivalent to the bank borrowing the money and subsequently paying the debt. It points out that it was not until the bank got into receiver's hands was any claim made that the legal effect of the transaction was that of deposit still in the Omaha bank to the credit of the Carroll institution. This status does not exist and the fund is not liable. Nebraska National bank of Hastings was correspondent for the Farmers State bank of Belvidere, which failed at time when it had an overdraft in the Hastings institution by reason of the by the latter of drafts drawn upon The court says that where bank with account in correspondent bank draws draft on the latter and the pays the draft in good faith in the regular course of business pursuant to custom between the two institu tions. theerby creating an over draft of the drawer bank, which is closed in the meantime by reason insolvency, and having reason to believe that funds or eredits in transit to fully cover the overdraft. may in equity be subrogated to the rights the original holder of the exchange, and may participate to the extent of the overdraft in the bank guaranty fund.