13387. German Savings Bank (Omaha, NE)

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: March 13, 1898
Location: Omaha, Nebraska (41.259, -95.938)

Metadata

Model: gpt-5-mini
Short Digest: 8ea03967

Response Measures

None

Description

The German Savings Bank of Omaha had closed prior to March 1898 and a receiver (Thomas McCague) was appointed; subsequent reporting discusses receivership asset sales, court rulings adjudicating insolvency, and final liquidation steps. No article describes a depositor run or crowd agitation; the closure appears driven by insolvency and proceeded to permanent receivership and sale of assets.

Events (4)

1. March 13, 1898 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank was insolvent and closed; court later adjudicated insolvency and receiver appointed.
Newspaper Excerpt: Theodore Woolstein, who deposited $3,000 in the German Savings bank, of Omaha. which closed shortly afterward.
Source: newspapers

2. November 24, 1899 Other

Newspaper Excerpt: In the case of the State of Nebraska against the German Savings Bank of Omaha, the court held that the order appointing a receiver for the defendant constituted an adjudication that the corporation was insolvent ... The order is affirmed. (Nov 24, 1899).
Source: newspapers

3. February 15, 1900 Other

Newspaper Excerpt: RECEIVER'S SALE. Notice is hereby given that on Thursday, the 15th day of February. 1900. I will pursuant to an order of the district court ... offer for sale to the highest bidder therefor for cash ... all the unsold assets of the German Savings bank. (Jan 14, 1900 notice).
Source: newspapers

4. * Receivership

Newspaper Excerpt: Receiver McCague of the German Savings bank has concluded the sale of tax certificates which formed a portion of the assets of that institution when It closed its doors some years ago. (Dec 29, 1898 article); Receiver Thomas H. McCague has filed his report ... (Mar 7, 1899). (multiple articles).
Source: newspapers

Newspaper Articles (11)

1. March 17, 1898 Barton County Democrat Great Bend, KS

Article from Barton County Democrat, March 17, 1898

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TRADE SUFFERING The Present Fears of a Crisis Having a Bad Effect on Chicago. FOR A LAFAYETTE STATUE A Christian Corps for Carrying the Gospel to Wheelmen Who Take Sunday Trips -Bank Directors Liable-Initistive and Referendum. CHICAGO, March 13.-Marshall Field & Co., of this city, have issued orders to their buyers to refrain from purchasing or ordering goods in large quantities during the present national erisis, and that they shall buy only in such quantities as their trade demands. Similar orders have been given others by mercantile houses in this city. Col. Henry L. Turner, a prominent business man of this city, and commander of the First infantry, Illinois national guard, said that the business interests of the city were becoming paralyzed because of the uncertainties of the situation. He is also authority for the statement that many of the small interior banks throughout the northwest are withdrawing their deposits from the iity banks. Otherwise money is easy, the crisis being felt only in ordinary business. For a Lafayette Statue. CHICAGO, March 13.-Ferdinand W. Peck and Robert J. Thompson, of this city, have been in Washington for the last two weeks, lobbying actively to get resolutions through the house and senate providing for the appointment of a national commission to bring about the presentation of a statue of Lafayette to the French nation at the time of the Paris exposition in 1900. The cost is to be defraved by public contributions on the part of school children of the United States. a penny a child. President McKinley, it is understood, has approved the plan, the senate has passed a resolution providing for a national commission and a similar motion is before the house. To Christianize Wheelmen. NEW YORK, March 13.-Some of the bicycle riders of Jersey City are about to organize a Christian corps. The following communication has been sent to the church societies of Jersey City: It is desirable that your representative body aid in bringing together the Christian bicycle riders of Jersey City with a view to the ultimate organization of a gospel bicycle corps for active work in carrying the gospel of Christ to those thousands of riders who seem to prefer the forest and green fields to the church pews on the Sabbath during the summer. It is to be hoped that in time enough companies will be organized with which to form a regiment. Bank Directors Liable. OMAHA. Neb., March 13.-The district court here has decided that the directors of a bank are personally liable for deposits made within 30 days of the closing of their bank. The case in point was that of Theodore Woolstein, who deposited $3,000 in the German Savings bank, of Omaha. which closed shortly afterward. This decision makes a large number of wealthy Nebraskans responsible for losses sustained by depositors in state banks. The Initiative and Referendum. TOPEKA, Kan., March 13.4-The Topeka advocates of the initiative and referendum have organized a direct legislation league under the direction of Eltweed Pomeroy, of New Jersey, president of the National Direct Legislation league. The league will endeavor to persuade the city council of Topeka to experiment with the initiative and referendum in the passage of ordinances.

2. December 29, 1898 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, December 29, 1898

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SELLS THEM ALL IN A BUNCH Receiver McCague Disposes of the Tax Certificates Held by the German Savings Bank. Receiver McCague of the German Savings bank has concluded the sale of tax certificatos which formed a portion of the assets of that institution when It closed its doors some years ago. The face value of the certificates aggregated about $20,000 and they sold for $2,100. the purchaser being Charles Bartelle. The certificates were sold singly and then in bulk. As they brought more in bulk this method of disposing of them was decided upon. Nearly all of the certificates are considered practically worthless, many of them being against rablroad property. With reference to these, 1t has been held that the state board and not the county commissioners should make the levy. They were sold to satisfy a tax levied by the county commissioners.

3. January 12, 1899 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, January 12, 1899

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FINANCES OF GERMAN BANK Depositors Demanding that the Assets of Institution Be Sold. MATTER COMES UP IN DISTRICT COURT Contention that Concern is Becoming More and More Insolvent Each Day and that Value of Property is Shrinking. Argument began in the German Savings bank case before Judge Fawcett Wednesday morning. At noon the side of Messrs. Strickler, Burbank and Andrews, on benalf of the depositors, was an in, but Messrs. West and Duffle had not yet had an opportunity to be heard. Ralph Breckenridge, representing Receiver McCague, says his client is really in an attitude of indifference as to whichever way the controversy goes; that the contention is really between the depositors and the stockholders. Judge Fawcett observed that it might be a bad business policy to force a sale of the assets. The depositors are demanding an order of sale with a thirty-day limit. In the court's opinion a forced sale might cause the assets to depreciate greatly in price. Mr. Strickler took the position in reply to this that the stockholders would buy in the assets anyway, so that there would not really be any loss to them. To illustrate this he said: 'Mr. Battelle, a young clerk in the office of the McCague Investment company, recently admitted that he had bought in a bulk lot of $20,000 of tax certificates on a bid of about $2,100. Then Mr. Strickler went into the figures of his tabulated showing to convince the court that the assets have been reduced from $478,000 to about $213,000, while only $46, 000 has been realized, and of this $46,000 $6,000 has been applied to the item of taking up "rediscounts," a mere matter of bookkeeping in which not a dollar has passed through the receiver's hands. He said the amount, $478,000. given as assets at the outset included the $100,000 capital stock. Mr. Burbank contended for an immediate sale, his logic being that the bank is becoming more and more insolvent, the shrinkage of assets being greatly out of proportion to the money realized for the benefit of the depositors. The counsel representing the stockholders will take the position that fixed charges, such as taxes, etc., should not be included in the general expense account, inasmuch as they represent property charges that have been imperative, whatever the bank's condition has been. McCague's Good Showing. The argument lasted all day. Mr. West said that, taking the very figures of Messrs. Andrews, Burbank and Strickler themselves, it had been demonstrated that Receiver McCague had practiced the best business economy. Out of a possible volume of assets amounting to $216,000 he had succeeded in collecting about $155,000. It had been stated by the other side that to collect $46,000 during the last year it had been necessary to reduce the assets $61,000. This showed that as high as 70 per cent had been realized, which Mr. West thought a good showing under the circumstances. Ex-Governor Lorenzo Crounse, who is heavily interested in the bank, both as a stockholder and a depositor, asked the court to consider the business aspect of the matter. To force the assets upon the market now would surely result in a great loss to both stockholders and depositors. He believed, with Mr. West, that with a little time the thirty or more pieces of real estate around the city held by the bank could be sold at an advantageous price if a little patience is exercised, whereas to throw them on the market now would, in midwinter, mean a forced sale and a low price. As to what Mr. Strickler said about the stockholders buying in the assets, he for one, he said, was not in a position to do much buying in. He believed the bank had been conducted in the best manner possible, both before the receiver was appointed and since, but its investments, when supposed to be solvent, had not proved as safe as they were supposed to be. On the whole he thought a little more time would be for the best interests of all concerned. Mr. West suggested that the receiver might be given until the May term, at least, and then be asked to make a report. Then if the court does not feel justified in prolonging the receivership further an order directing the sale of the assets can be made. Judge Fawcett took the matter under advisement until Friday morning.

4. January 17, 1899 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, January 17, 1899

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Lists of the Real Estate. Receiver Thomas McCague of the German Savings bank has begun the tabulation of the real estate assets of the Institution preparatory to the sale, which will occur March 1, as directed by the district court. Mr. McCague said yesterday it will be a week or ten days before the list of real estate can be prepared, as there are a large

5. January 27, 1899 The Topeka State Journal Topeka, KS

Article from The Topeka State Journal, January 27, 1899

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R. K CUSHING BANKRUPT. Failure of a Western Contractor-C. J. Lantry a Creditor. Chicago, Jan. 27.-Richard C. Cushing, a contractor, today filed a petition in liabilities bankruptcy, scheduling amounting to $328,245. His assets are placed at $39,000. The petitioner was a member of the Mallory-Cushing Contracting company of Omaha. Some of the largest creditors are: C. J. Lantry, a brother-in-law of Mr. Cushing, Strong City, Kan., $47,000; Charles Parmalee, receiver of the Citizens' bank, Plattsmouth, Neb., $10,000; T. A. McGague, receiver of the German Savings bank of Omaha, $30,000. The property which is included in the assets of the petitioner is situated in Omaha, San Antonio, Tex., Kerin county, California, and Scott county, Nebraska. The largest secured creditor is the Nebraska National bank of Omaha, $63,000.

6. February 1, 1899 Arizona Weekly Journal-Miner Prescott, AZ

Article from Arizona Weekly Journal-Miner, February 1, 1899

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Richard c. Cushing Fails. Richard C. Cusbing will be well remembered by citizens of Prescott and vicinity as having been engaged in mining operations here a few years ago. A Chicago telegram of January 26, says: Richard C. Cushing, a contractor, today filed a petition in bankruptcy scheduling liabilities amounting to $328,245. His assets are placed at $39,000. The petitioner was a member of the Mallory-Cushing Contracting Company of Omaba. Some of the largest creditors are: Chas. J. Lantry, Strong City, Kan., $47,000; Chas. Parmalee, receiver of the Citizens Bank, Platts mouth, Neb., $10,000; T. A. McGauge, receiver of the German Savings bank of Omaha, $30,000. The property which is included in the assets of the petitioner is situated in Omaha, San Antonio, Texas, Kern county, Cal., and Scott county Neb. The largest secured creditor is the Nebraska National Bank of Omaha, $63,000.

7. March 7, 1899 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, March 7, 1899

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McCague Files His Report. Receiver Thomas H. McCague of the German Savings bank has filed his report of the sale of the personal assets of the bank on March 1 and 2. He states that fully 25 per cent of the actual value was realized and that the proceeds were satisfactory, except the sale of the C. J. Karbach note and judgment for $670 to the Omaha Mercantile company. This judgment is for $2,797 and the note for $5,000. The reason given for the rather low figure is that Karbach claims a set-off in a suit pending in the district court. The tax liens were bought up in bulk by Charles Battelle for $3,300, the bids numbering 218 altogeiber.

8. May 2, 1899 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, May 2, 1899

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LOCAL BREVITIES. J. C. Root has taken out a permit to male $3,000 alterations and additions to a dwellin at 1034 South Thirtieth street. Joe Carnaby, who was for a number . years fireman at the city hall, has been aj pointed chief engineer at the postoflio building. In United States court yesterday after noon the grand jury was charged and swort The members of the panel will begin the labors this morning. Judge Baxter has appointed W. C. Ba lard administrator of the estate of h father, the late J. T. Ballard. Charles H. McConnell and Miss Stell Emery were married Saturday evening April 29, at the residence of the officiatin minister, Charles W. Savidge. A sneak thief entered an open window : 822 South Nineteenth street and stole a gol watch and neck chain and a gold ring be longing to Miss Emma Thiele. Thieves broke in the rear door to th home of Henry C. Jaik, 802 South Thirty eighth street, some time Saturday. The carried away a revolver, one ring and razor. Mortz Sachs, a traveling man of Omah has applied for a writ, declaring him bankrupt. He alleges that he owes $3,221.5 and has but $200 worth of personal prop erty, all of which he says is exempt. The Nebraska Stone company has file articles of incorporation with the count clerk. The incorporators are Charles / Hansen, Peter Laux and A. F. Hansen. an the stock of the conce 'n is fixed at $10,00 Miss Kate Wickham, the teacher who wa injured in a street railway collision som time ago, and who resumed her duties las week, has been forced to again leave he position. She will be excused for an in definite period. C. F. Dripps, the railway mail postal cler who was convicted of extracting money from a registered letter and who was sentence to a term of nine months in the count jail, has been released from custody, havin served out his term. William Ellsworth, indicted one year ag on the charge of making counterfeit coin of the denomination of 5 cents, has bee lodged in the county jail. Ellsworth wa captured in St. Joe by a deputy United State marshal of Missouri. Thomas H. McCague, receiver of the Ger man Savings bank, yesterday began pay ing another dividend, the amount bein $16,500, equal to 5 per cent. This makes 3 per cent in dividends. As yet but very fe persons have called for their money. The Real Estate Dealers' exchange held brief meeting in the Commercial club room Monday. A committee consisting of C. I Harrison, W. L. Selby and J. H. Parrotte wa appointed to draft resolutions upon th death of George L. Green, who was a mem ber of the exchange. After mourning the loss of $100 worth o jewelry ever since March 13 F. W. Stollard 1915 Webster street, was delighted to re ceive an announcement from his wife tha she had found it all in the pantry. It i supposed that a servant placed it there i order that it would be in a safe place. Complaints have reached the Board o Health that parties are dumping garbag and other like matter in the neighborhoo of Prospect Hill cemetery. Notices will b posted to warn these parties that they ar committing a nuisance, and if they fail t take the hint steps will be taken to prose cute them. The Board of County Commissioners me yesterday afternoon to hear from propert owners who had been overlooked by th assessors, but only one taxpayer appeared Consequently the proceedings were of perfunctory character and the commission ers take it for granted that the people ar willing to be taxed. The first general cleaning of the streets o the city this spring has been finished. Ever paved street in the city has been visited b) cleaning gangs and the accumulations of th winter have been cleared away. City En gmineer Rosewater is now engaged in com pleting the system of cleaning that will b pursued during the remainder of the year. Cadet Taylor has received advices fron the War department that the trophies, relic and curios which the Thurston Rifles have been gathering in the Philinnines may b.

9. November 24, 1899 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, November 24, 1899

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BANK'S ASSETS WILL BE SOLD Supreme Court Assures German Savings That it is Insolvent. MAYOR ENSOR NOT GUILTY OF CONTEMPT Governor will Investigate Killing of Private Morgan, Deserter, Holding the Act Unjustifiable Except Under Martial Law. LINCOLN, Nov. 23.-(Special.)-The supreme court adjourned this afternoon after handing down opinions in quite a number of important cases. In the case of the State of Nebraska against the German Savings Bank of Omaha, the court held that the order appointing a receiver for the defendant constituted an adjudication that the corporation was insolvent and no appeal having been taken therefrom. the order was forever afterwards conclusive upon that question. This cause. or some phase of it. has been three times before the supreme court and as many opinions have been written. The sole question the court was asked to determine was whether the district court had jurisdiction to make an order for the sale of the remaining assets of the bank. It was argued by the counsel for the bank that no such power existed until there had been entered a decree in the cause adjudging the insolvency of the corporation and ordering the affairs to be wound up. The opinion closes with the following: "In the case at hand the order appointing McCague as receiver of the German Savings bank determined that the corporation was insolvent, and the question is no longer an open one. The proper time for the bank to have made that defense was before the receiver was appointed. It cannot do SO now. The question of insolvency having been adjudicated the court was not without jurisdiction to order the real estate sold. There is nothing in the two previous decisions heretofore cited which is inconsistent with the views herein expressed. The order is affirmed." South Omaha Contempt Case. Among the other cases decided was the South Omaha contempt case. The decision of the court releases Mayor Ensor from liability for contempt. but the judgment against Policeman Hydock is affirmed. The court holds that one who willfully disobeys a notice or restraining order of a court is guilty of contempt of court. Proceedings in contempt are in their nature criminal, the rules of strict construction applicable to criminal prosecution obtain therein and presumptions will not be indulged in to sustain a conviction of court. This case was appealed to the supreme court from Douglas county. where an order was Issued by the court restraining Mayor Ensor of South Omaha and Policeman Hydock from interfering with Ed Johnston in the discharge of his duties as challenger in a ward voting place. Johnston was ejected from the voting place against his will, but the supreme court holds that there is not sufficient evidence to show that the mayor was in any way responsible. In the case of Samuel R. Kocher against Isabel Cornell and her husband to recover a money judgment the court decides the following very important question: "Is the property which a married woman acquires by inheritance after the execution by her of a contract of suretyship binding her separate estate in general terms liable for the satisfaction of such contract?" The opinion of the court is that while under the provisions of section 3, chapter 53, compiled statutes of 1899, a married woman may be sued upon her contracts, the theory of the law still is that the property, on the faith of which she obtained credit, is the real debtor and consequently constitutes the only fund from which a creditor may obtain satisfaction of a claim. The supreme court examining commission has admitted to practice the following candidates: Henry G. Hopkins, York; John A. Sheehan, Douglas; John G. Potter, Nuckolls, and Grant N. Anderson, Wheeler. Governor Poynter Explains. Governor Poynter has been subjected to a deal of criticism concerning the wording of his Thanksgiving proclamation, and today the following request from the New York World asking for an explanation was received at the exeuctive office: Hon. W. A. Poynter, Governor, Lincoln: In your Thanksgiving proclamation you are quoted as using these words, "Lest we forget and lust of power causes us to forget the exalted mission of the republic and government of the people, for the people and by the people perish from us. Will you oblige the World by wiring in 300 words your views on the Philippines: whether this has direct reference thereto. THE WORLD. Governor Poynter replied as follows: New York World, New York City: Replying to your inquiry, would say your telegram quotes me incorrectly. My Thanksgiving proclamation says, "Acknowledging with grateful hearts His guiding hand in our growth to our present greatness, let us seek His aid lest we become proud, and a lust of power cause us to forget the exalted mission of the republic and a government of the people, by the people and for the people' perish from the earth. was led to embody this thought from the tendency manifested in expressions and writings of many able men in the nation who advocate the doctrine of a colonial policy and a large standing army, either of which is contrary to the fundamental idea of our republic. The expressed determination to subjugate the people of the Philippines and treat with them after ward seems to me the policy of an empire rather than of a republic government which "derives its just

10. November 29, 1899 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, November 29, 1899

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# ASSETS ARE TO BE SOLD Receiver McCague of the German Savings Bank to Act at Once. Receiver Thomas L. McCague of the German Savings bank is well pleased over the recent decision of the supreme court sustaining his position with reference to his action in selling the personal property of the defunct financial institution. Now that this matter is out of the way he will take steps to sell the remaining assets, consisting of real estate of about $20,000 valuation. The property will be advertised for sale as soon as the mandate comes from the supreme court. However, it is thought that there may be some delays, as it is expected that there will be litigation with a probability that the supreme court may have to be reached before a final adjudication. After the real estate of the bank is sold suit will be brought against the stockholders to recover the balance due depositors. When the money will be recovered is something that Receiver McCague will not attempt to predict at this time, as he expects that the stockholders will contest every step.

11. January 14, 1900 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, January 14, 1900

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RECEIVER'S SALE. Notice is hereby given that on Thursday, the 15th day of February. 1900. I willpursuant to an order of the district court of Douglas county, Nebraska, dated January 6, 1900, offer for sale to the highest bidder therefor for cash at my office, 106 North Fifteenth street, In the city of Omaha, all the unsold assets of the German Savings bank Said sale will commence at 10 o'clock a. m. of said day, and continue from 10 o'clock a. m. to 5 o'clock p. m. of each day until all the assets of said bank have been offered for sale. The real estate hereinafter mentioned and described will be offered for sale separately. All bids are subject to the approval of the court and must in all cases be accompanied by money or certified checks for twenty-five per cent of the amounts thereof. Said bids will be reported to the court after all the assets have been offered for sale and the balance of the purchase price of any sale approved and confirmed by the court will be payable uupon said confirmation. The description of the property to be offered for sale by the undersigned at said time and place and upon conditions above mentioned. is as follows: The east 206 ft. of the west 336 ft. of tax lot 39, in the S W cor. sec. 10 ,tp. 15, rg. 13, 23d and Yates. Sub lot 3 in tax lot 7, in N. E. of S. W. of sec. 27. tp. 15, rg. 13, 10th and Martha. Sub lot 14 of lot 9, Capitol addition. Parcel of ground in N. E. cor. of tax lot 16, in sec. 16, tp. 15, rg. 13, 200 by 132 ft., nr. 30th and Cuming. Lots 3 and 4, block 250, city. Lot 2, block 3, Bowery Hill addition. Lots 6, 7, 8, 9, 10. 11, 12 and 13, block 95, Dundee Place. Lots 11 16 and 20, block 106. Dundee Place. Lot 5, block 109, Dundee Place. Lot 14, block 116 Dundee Place. Lot 6, block 117, Dundee Place. Lot 2, block 124, Dundee Place. Lot 6, Hascall and Roger's sub. of 56, 57 and 58, Okahoma. Lot 9, Hascall and Rogers' sub. of 56, 57 and 58 Okahoma. Lot 12. Hascall and Roger's sub. of 56, 57 and 58, Okahoma. Undivided one-half of lots 7 and 8, block 15, Isaacs & Seldon's addition. North half lot 12, and south half lot 13, block 14, Kountze's 3rd addition. Lot 19. Lindsay's addition. Lots 5 and 6, block 1, Mayne Place. Lot 7, block 2. Mayne Place. West 50 ft. of south half lot 8, block 1, Park Place. Lo 16, block 2, Redick's sub. East 95 ft. lot 2. Okahoma South 82 ft. lot 36, Okahoma. West 120 ft. of east 240 ft. of south 127 ft. of block "C," Shinn's addition. Lots 4 and 5, block 62, South Omaha. Lots 5. 6, 7. 8 and 9, block 3, Thomason and Goos' addition. Lots 2, 3, 4, 5, 6, 7, 8, 9. 10. 11 and 12, block 5, Thomason & Goos' addition. Lots 1. 2. 3. 4, block 11, Thomason & Goos' addition. "Reserve" in Thomason & Goos' addition. South 80 ft. of north 83.5 ft. lot 4, block 12. West Omaha addition The north half of northwest quarter sec. 14. tp. 20, rg. 13, Valley county, Neb. One certificate of membership in Omaha Board of Trade. Together with any other property belonging to the German Savings bank of Omaha, Douglas county, Nebraska, not above enumerated. THOMAS H. McCAGUE. Receiver of German Savings Bank, Omaha, 1. Neb 25 J-12-d-3 O