13410. Omaha Loan & Trust Company (Omaha, NE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
December 11, 1901
Location
Omaha, Nebraska (41.259, -95.938)

Metadata

Model
gpt-5-mini
Short Digest
81d1b395

Response Measures

None

Description

Multiple contemporary articles report that the Omaha Loan & Trust Company was placed in the hands of a receiver (William K. Potter) on Dec. 11–12, 1901 due to insolvency from bad/overvalued real-estate mortgages. No article describes a depositor run prior to the appointment; the event is a receivership/suspension leading to closure. Minor OCR variants in articles (e.g., William J. vs William K. Potter) noted; I used William K. Potter as in several reports.

Events (1)
1. December 11, 1901 Receivership
Newspaper Excerpt
On application of William Wallace, Judge Fawcett ... appointed William K. Potter receiver for the Omaha Loan and Trust Company and fixed his bond at $100,000.
Source
newspapers

Newspaper Articles (11)
1. December 12, 1901 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, December 12, 1901

Click image to open full size in new tab

Article Text

BIG FAILURE AT OMAHA RECEIVER APPOINTED FOR A LOAN AND TRUST COMPANY. Too Heavily Loaded with Mortgages on Real Estate That Has Depreciated in Value. OMAHA, Neb., Dec. 11.-On application of William Wallace, Judge Fawcett, in the District Court, late this afternoon appointed William K. Potter receiver for the Omaha Loan and Trust Company and fixed his bond at $100,000. Edgar H. Scott was named as attorney for the receiver. No official statement was filed with the application for a receiver, but Mr. Wallace's attorneys are authority for the statement that the company has outstanding debenture bonds of $350,000, is guarantor for about $4,500,000 of loans and has a paid-up capital stock of $500,000. The assets are somewhat indefinite. The better part of them are represented by $1,100,000 of real estate taken on foreclosure, which is the book value of the property. About $700,000 of this amount is covered by what are known as "straw .mortgages, which are included in the list of guaranteed loans. These "straw" mortgages do not represent anything of an irregular character, but are mortgages used by large trust companies to avoid carrying a large amount of dead property that ties up working capital. This leaves about $400,000 of real estate on book value to cover the debenture bonds and any actual liability which exists on the guaranteed loans. It is not believed by any of the directors that the stockholders will realize anything out of the capital stock. One of the directors said to-day that the stock had been offered within the past two months at from 1 to 5 cents on the dollar. The greater part of the $4,500,000 of guaranteed loans are also protected by realty mortgages. The loans were made on Missouri and Nebraska farms and on Omaha realty. The Missouri loans are said to be fair, those on Nebraska lands of high grade, and those on Omaha property are also considered worth about par. Several years ago about $350,000 of mortgages were placed on Omaha suburban property which has not proved all that was expected of it, and this load the trust company has been carrying. The failure to realize on them is given as the real cause of the present financial distress of the company. The Savings Bank, which was taken over by a new corporation. is said to be in good condition, being in no way connected with the trust company.

2. December 12, 1901 The Wilmington Daily Republican Wilmington, DE
Article from The Wilmington Daily Republican, December 12, 1901

Click image to open full size in new tab

Article Text

Trust Company In Receiver's Hands. OMAHA, Neb., Dec. 12.-On application of William Wallace, Judge Fawcett in the district court yesterday appointed William J. Potter receiver for the Omaha Loan and Trust company. Attorney H. E. Scott. for the trust company. said the application bad been considered for some time and that the action had been taken after conferences with representatives of eastern creditors and between the stockholders and directors. The application, he said. was made in the interest of the creditors, of whom none Is preferred.

3. December 12, 1901 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, December 12, 1901

Click image to open full size in new tab

Article Text

POTTER IS RECEIVER FOR THE OMAHA LOAN AND TRUST COMPANY, WITH BOND OF $110,000 WM. WALLACE, PROPONENT Straw Mortgages in Assets, but Do Not Represent Anything of an Irregular Character. OMAHA, Neb., Dec. 11.-On application of William Wallace, Judge Fawcett, in the district court, late this afternoon, appointed William K. Potter receiver for the Omaha Loan and Trust company, and affixed his bond at $100,000. Edgar H. Scott was named as attorney for the receiver. As soon as the appointment was made the receiver qualified on the bond and took possession. The application was made by Mr. Wallace as a director in the company, and who, as proponent, gave a bond of $100,000, with Guy C. Barton and C. H. Brown as sureties. No official statement was filed with the application for a receiver, but Mr. Wallace's attorneys are authority for the statement that the company has outstanding debenture bonds of $350,000, it is guarantor for about $4,500,000 of its loans, and it has a paid-up capital stock of $500,000. The assets are still somewhat indefinite. The better part of them are represented by $1,100,000 of real estate taken on foreclosure, which is the book value of the property. About $700,000 of this amount is covered by what are known as "straw mortgages," which are included in the list 0 fguaranteed loans. Explanation of Straw Mortgages. The "straw" mortgages do not repreresent anything of an irregular character, but are mortgages used by large trust companies to avoid carrying a large amount of dead property that ties up working capital. This leaves about $400,000 of real estate on book value to cover the debenture bonds and any actual liability which exists on the guaranteed loans. It is not believed by any of the directors that the stockholders will realize anything out of the capital stock. One of the directors said today that the stock had been offered within the past two months at from 1 to 5 cents on the dollar. The greater part of $4,500,000 of guaranteed loans are also protected by realty mortgages. The loans were made on Missouri and Nebraska farms and on Omaha realty. The Missouri loans are said to be fair, those on Nebraska lands of high grade, and those on Omaha property are also considered worth about par. Sleveral years ago about $350,000 of mortgages were placed on Omaha suburban property, which has not proved all that was expected of it, and this load the trust company has been carrying. The failure to realize on them is given as the real cause of the present financial distress of the company. The savings bank, which was taken over by a new corporation, is said to be in good condition, being is no way connected with the trust company.

4. December 12, 1901 Waterbury Democrat Waterbury, CT
Article from Waterbury Democrat, December 12, 1901

Click image to open full size in new tab

Article Text

Trust Company In Receiver's Hands. OMAHA, Neb., Dec. 12.-On application of William Wallace, Judge Fawcett in the district court yesterday appointed William J. Potter receiver for the Omaha Loan and Trust company. Attorney H, E. Scott, for the trust company, said the application had been considered for some time and that the action had been taken after conferences with representatives of eastern creditors and between the stockholders and directors. The application, he said. was made in the interest of the creditors, of whom none is preferred.

5. December 12, 1901 The Savannah Morning News Savannah, GA
Article from The Savannah Morning News, December 12, 1901

Click image to open full size in new tab

Article Text

Omaha Loan and Trust Company in Hands of Receiver. Omaha, Neb., Dec. 11.-On application of William Wallace, Judge Fawcett, in the Circuit Court this afternoon, appointed William K. Potter receiver for the Omaha Loan and Trust Company, and fixed his bond at $100,000. No official statement was filed with the application for a receiver, but Mr. Wallace's attorneys are authority for the statement that the company has outstanding debenture bonds of $350,000; it is a guarantor for about $4,500,000 of its loans, and it has a paid-up capital stock of $500,000. The assets are still somewhat indefinite. The larger part of them is represented by $1,100,000 of real estate taken on foreclosure, which is the book value of the property. It is not believed by any of the directors that the stockholders will realize anything out of the capital stock. One of the directors said to-day that the stock had been offered within the past two months at from one to five cents on the dollar.

6. December 13, 1901 The Billings Gazette Billings, MT
Article from The Billings Gazette, December 13, 1901

Click image to open full size in new tab

Article Text

COURT NAMES RECEIVER. Liabilities and Assets or Omaha Loan & Trust Company. Omaha, Dec. 11.-On a petition of William Wallace, Judge Fawcett in the district court today appointed Will liam J. Potter receiver of the Omaha Loan & Trust Co. Attorney H. E. Scott, for the trust company, said the application for a receiver had been considered for some time and that the action had been taken after conference with representatives of the eastern creditors, and between the stockholders and directors. The application, he said, was made in the interests of the creditors, of whom none are preferred. No official statement was filed with the application for a receiver but Mr. Wallace's attorneys are authority for the statement that the company has outstanding debenture bonds of $350,000, it is guarantor for about $4,500,000 of its loans and it has a paid up capital stock of $500,000. The assets are still somewhat indefinite. The better part of them are represented by $1,100,000 of real estate taken on foreclosures which is the book valuation of the property. About $700,000 of this amount is covered by what are known as "straw mortgages," which are included in the list of guaranteed loans. The "straw" mortgages do not represent anything of an irregular character, but are mortgages used by large companies to avoid carrying a large amount of dead property that ties up working capital. This leaves about $400,000 of real estate, book value, to cover the debenture bonds and any actual liability which exists on the guaranteed loans. It is not believed by any of the directors that the stockholders will realize anything out of the capital stock. One of the directors said today that the stock had been offered within the past two months at from one to five cents on the dollar. The greater part of $4,500,000 of guaranteed loans are also protected by realty mortgages.

7. December 13, 1901 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, December 13, 1901

Click image to open full size in new tab

Article Text

HAVE YOU ANY STOCK. Omaha Loan and Trust Co. Goes into Receiver's Hands. Liabilities Large--Assets Not So Large Little for the Stockholders. Omaha, Neb., Dec. 12.-On application of Wm. Wallace, Judge Fawcett, in the district court. late Wednesday afternoon. appointed Wm. K. Potter receiver for the Omaha Loan and Trust Co. and fixed his bond at $100,000. Edgar H. Scott was named as attorney for the receiver. As soon as the appointment was made the receiver qualified on the bond and took possession. The application was made by Mr. Wallace as a director in the company and as proponent gave a bond of $100,000. with Guy C. Barton and C. H. Brown as sureties. No official statement was filed with the application for a receiver but Mr. Wallace's attorneys are authority for the statement that the company has outstanding debenture bonds of $350,000; it is a guaranteer for about $4,500,000 of its loans and it has a paid up capital stock of $500,000. The assets are still somewhat indefinite. The larger part of them is represented by $1,100,000 of real estate taken on foreclosures, which is the book value of the property. About $700,000 of this amount is covered by what are known as "straw mortgages, which are included in the list of guaranteed loans. These straw mortgages" do not represent anything of an irregular character, bu: are mortgages used by large trust companies to avoid varyying a large amount of dead property that ties up the working capital. This leaves about $100,000 of real estate in book value, to cover the debenture bonds and any actual liabilities which exist on the guaranteed loans It is not believed by any of the directors that the stockholders will realize anything out of the capital stock One of the directors said that the stock had been offered within the past two months at from 1 to : cents on the do lar. The greater part of $3,500,000 of guaranteed loans is also protected by realty mortgages. The loans were made on Missouri and Nebraska farms and on Omaha realty. The Missouri loans are said to be fair, those on Nebraska lands of high grade, and those on Omaha property are also considered worth about par. Several years ago about $350,000 of mortgages were placed on Omaha suburban property, which has not proved all that was expected of it. and this load the company has been carrying The failure to realize on them is given as the real cause of the present financial distress of the company. The savings bank. which was taken over by a corporation. is said to be in good condition. being in no way connected with the Trust Co.

8. December 14, 1901 The Intermountain Catholic Salt Lake City, Denver, UT
Article from The Intermountain Catholic, December 14, 1901

Click image to open full size in new tab

Article Text

De six months will consist pork. next sign to refute Dowie's S charges d Financial business of the United States in the far east to be turne government the New York Guaranty & Trus company. over to which gained the award de spite strong opposition from foreign houses. Admiral Schley gave silver service to M. A. Teague, his assistant counsel 1. the recent inquiry. Deadwood shernfff and his deputy killed a store robber, wounded another and tured a third. Runt on the City Savings bank Omaha checked by sight of piles of on the counters. Stanford university about to come full possession of the millions left by Senator Stanford. The amount $18 000 in bonds and $12,000 in other property D. M. Farson and other revivalists from Chicago ousted from the Park Street church, Boston, because their meetings were too boisterous H. J. Fleishman, cashier of the Farm& Merchants bank of Los Angeles $150.00 disappeared. ers leaving a shortage of Express package containing mortgages and securities worth Wis. found in a rubbish heap at Racine Dentist at Mattoon. Ills., killed hims because he feared he was unitted temperament to marry Senator Hoar introduced bill to punish as murderers all who participate lynching Congress to act on Andrew Carnegie city proposition to give $10,000,000 to the Washington for a national university New subsidy bill read in the Principal items which aroused antag ism in the last congress left out Senator Tillman defied his colleague and in senate discussion of their troubles challenged a him to resign. Their seats may be declared vacant. Chicago Undertakers association started movement to abolish Sunday funerals. Will ask clergymen to co-operate In an attempt to capture Dewet Colonel Wilson, with a force of English troops. came into contact with a superior force of Boers near Hellbron, and was nearly surrounded. French ministry in debate on the budget declared the government cannot consider a reduction in the size of the army at the present time Reichstag to question the government regarding Chamberlain's alleged insult to German soldiers in his speech at Edinburg. Plan of Charles T. Yerkes for electri14cation of London transportation lines reported to have been adopted General Alban preparing to recapture Tumaco. which is held by 3,000 Colombian recvolutionists. British government soon to institute reforms in t he management of concentration camps. Clerk who robbed Liverpool bank of nearly $1,000,000 lost it in race track gambling. London Saturday Review opposed alliance with either Germany or United States. and urged holding balance of trade poyer by England in case of trouble in South America. Domestic troubles of Queen Wilhelmine arouse interest of Europe, but it is doubted if facts are known. Girl students at University of Wiscon sin asked lower prices or better bill of fare in Chadbourne hall. American Federation of Labor organ ized conventionan d prepared for work. Robbers surrounded in bank at Archbald, O., fought their way out, carrying $2,000 in plunder. Leonard Roeder. who says he remembers battle of Waterloo. will celebrate 102d birthday at Quincy, Ills. shortly Legislation to provide funds for Nicaraguan canal almost certain of passage this session. at Senator Depew gave a farewell stag dinner. with President Roosevelt as special guest. Omaha Loan & Trust company of Omaha, Neb. admittedly in fnancial distress and liquidation is predicted. Liabilities are $1,000,000. mostly owed to eastern investors. A. U. Wyman. former United States treasurer. is president. Plans of General Miles for new army uniform opposed. War of copper interests on Thomas W Lawson discussed by Boston millionaire. Manila merchants refuse to accept Mexican money in payment for goods. Philippine commission authorized Insular purchasing agent to use gold in purchase of supplies. Botha, Steyn. De Wet and other Boer leaders held a conference twelve miles from Heilbron. Burghers want to know when intervention is to come Miss Katherine Roberts, heiress to 1 fortune of $4,000,000, is a chorus girl in the 'Liberty Bells. British coal exports declined 158,000 tons in the first ten months of 1901. Leader of an American party exploring Siberia expelled from Russia. According to the annual report of Director of the Mint Roberts. the coinage for 1901 amounted to $136,340,781. President Roosevelt and his sons averse to wearing heavy overcoats, but they seldom catch cold. Kenosha Woman's club of Chicago voted to forego use of bird trimmings on Easter bonnets. Attempt will be made to protect birds in that city Footpad at Lexington, Ky., killed and robbed J. N. Hawkins, treasurer of a church. Slump in Amalgamated Copper stock caused by sale of holdings of estate of Marcus Daly. Business section of Hoopestown. Ills., destroyed by fire. Loss nearly $100.000. Loss of the Omaha Loan & Trust company may run up into the millions. Platinum and copper in paying quantites found near Encampment, Wyo. New Orleans infested with crooks and pickpockets, who defy the police. This year's output of Lake Superior iron mines was 20,500,000 tons. "Volunteers of America planning Christmas dinner for 10,000 persons on Dec. 29. at Chicago. Trades unionists throughout Illinois will be asked by Chicago lodges to contribute to the McKinley monument fund. Town Marshal J. B. Smith of Chelsea. Ia., killed in a fight with three men eaught in the act of robbing a bank. Posse pursuing the slayers. Convicted murderer who was executed in Arkansas partially revived in his coffin. but died before he could be hanged again. Federation of Labor convention at Scranton, Pa., denounced Minister Wu for his recent remarks on Chinese exclusion. Locomotive and three freight cars on the Canadian Pacifie fell into a gorge 300 feet deep. Two trainmen killed. Kansas City man who forced his sweetheart to steal $1,200 sentenced to prison for Senate five years. Foreign committee made favorable report on Hay-Pauncefote treaty, which insures its ratification. Congressman Crumpacker again introduced his bill to reduce southern representation in congress. Rumor revived thata Secretary Hay is retire after the confirmation of the Nicaraguan canal treaty by the senate. Secretary Root thought to be most likely succeed him in that event. o Court-martial of Colonel R. L. Meade esulted in his acquittai. Charges may be rought against his accusers. Admiral Dewey said none of the reports bout the Schley decision are to be beleved. W. J. Bryan declared Filipinos and panese should be excluded together

9. December 19, 1901 The Farmington Times Farmington, MO
Article from The Farmington Times, December 19, 1901

Click image to open full size in new tab

Article Text

WEST AND SOUTH. By the wreeking of the British bark Piumore near Grays harbor. Wash., seven sailors lost their lives. Fire destroyed the main building of the Worcester (0.) university, causing a loss of $250,000. With liabilities of $5,000,000 the Omaha Loan & Trust company has gone into the hands of a receiver. The death of Mrs. James McDermott., aged 105 years, occurred at Cos, W. Va. Near Duquoin, Ia., Ewald Eichorn, a farmer, was blindfolded, bound hand and foot and beaten to death by robbers. At the Houston (Tex.) carnival a confidence man killed two policemen who cought to arrest him, and was in turn slain. Flames destroye5 n block of business housel, 17 in number, at Sweetwater, Tex. While seeking an education Kenry Descond, a student at the state university in Tacoma, Wash., starved to death. George B. Cortelyou and Judge Willim a Day, administrators of the estate of the late President William MoKinley, have filed bonds at Canton, O. in Sprin BEX the eighty-third anniversary of the admission of Illinois into the unless as a state was calebrated. The Illinois corn crop this year was 183,793,300 busbels, the smalliest since 1890. Gen. Arthur MacArthur has been w deted to Denver to masure command the department Colorado. The doors Wanatah (Inds) with

10. December 20, 1901 The Ely Miner Ely, MN
Article from The Ely Miner, December 20, 1901

Click image to open full size in new tab

Article Text

Charles Stokes, arrested in New York with $2,000 worth of stamps on his person, is believed to be one of the robbers of the Chicago post office. The president has nominated C. H. Darling, of Vermont, for assistant secretary of the navy. The national capital has another crime mystery in a fatal assault upon Mrs. Gilbert, a fashionable dressmaker. The Federation of Labor convention at Scranton, Pa., adopted a resolution declaring for Chinese exclusion. It is announced at New York that Dr. Nicholas Murray Butler will succeed Seth Low as president of Columbia university. The main building of the Worcester (0.) university has been burned, causing a loss of $250,000. The Omaha Loan & Trust company has gone into the hands of a receiver with liabilities of $5,000,000. Ewald Eichorn, a farmer near Duquoin, Ia., was blindfolded, bound hand and foot and beaten to death by robbers. A confidence man at the Houston (Tex.) carnival killed two policemen who sought to arrest him, and was in turn slain. Mme. Nordica has taken steps to prosecute a claim against the government for $4,000,000 of which an ancestor was despoiled by French privateers. Fire destroyed a block of business houses, 17 in number, at Sweetwater, Tex. The state department is planning to send young men to China to study the language and act as interpreters for consuls. Henry Demond, a student at the state university in Tacoma, Wash., starved to death while seeking an education. The Pennsylvania Railway company will build a tunnel under the Hudson river to secure entrance to New York. The Red Cross society at its annual meeting in Washington reelected Miss Clara Barton president. The bonds of George B. Cortelyou and Judge William R. Hay as administrators of the estate of the late President William McKinley have been filed at Canton, O. E. L. Powell, of Wilson, N. C., manager of the brokerage business of Murphy & Co., of New York, is said to be short $40,000. Special Commissioner Rockhill's report on the results of his work in connection with the Chinese negotoations in Peking has been submitted to congress. Maj. Gen. Arthur MacArthur has been ordered to Denver to assume command of the department of Colorado. The eighty-third anniversary of the admission of Illinois into the union as a state was celebrated in Springfield. The Wanatah (Ind.) bank closed its doors with liabilities of $29,000. Depositors will be paid in full. The corn crop of Illinois this year was 183,792,200 bushels, the smallest since 1890. William B. Leeds, of New York, has been elected president of the Chicago, Rock Island & Pacific railroad. Three children of Tunis Pons were drowned at Pompton Lake, N. J. while skating. The president has reappointed Interstate Commerce Commissioner Charles A. Prouty, of Vermont. Seven men have been arrested at Toledo, O., charged with robbing Ohio post offices. Near Kokomo, Ind., a train struck a wagon load of young people and one was killed and three seriously injured. The good offices of the United States have been tendered to Argentina and Chili to adjust their quarrel about frontiers and fortifications along the straits of Magellan. William Allen (colored) was hanged at Uniontown, Pa., for murdering Hiram McMillan. The twenty-first annual meeting of the National Civil Service Reform league began in Boston. Miss Emma King, of Brooklyn, N.Y., who permitted herself to be inoculated

11. December 21, 1901 The L'anse Sentinel L'anse, MI
Article from The L'anse Sentinel, December 21, 1901

Click image to open full size in new tab

Article Text

Charles Stokes, arrested in New York with. $2,000 worth of stamps on his person, is believed to be one of the robbers of the Chicago post office. The president has nominated C. H. Darling, of Vermont, for assistant secretary of the navy. The national capital has another crime mystery in a fatal assault upon Mrs. Gilbert, a fashionable dressmaker. The Federation of Labor convention at Seranton, Pa., adopted a resolution declaring for Chinese exclusion. It is announced at New York that Dr. Nicholas Murray Butler will succeed Seth Low as president of Columbia university. The main building of the Worcester (O.) university has been burned, causing a loss of $250,000. The Omaha Loan & Trust company has gone into the hands of a receiver with liabilities of $5,000,000. Ewald Eichorn, a farmer near Duquoin, Ia., was blindfolded, bound hand and foot and beaten to death by robbers. A confidence man at the Houston (Tex.) carnival killed two policemen who sought to arrest him, and was in turn slain. Mme. Nordica has taken steps to prosecute a claim against the government for $4,000,000 of which an ancestor was despoiled by French privateers. Fire destroyed a block of business houses, 17 in number, at Sweetwater, Tex. The state department is planning to send young men to China to study the language and act as interpreters for consuls. Henry Demond, a student at the state university in Tacoma, Wash. starved to death while seeking an education. The Pennsylvania Railway company will build a tunnel under the Hudson river to secure entrance to New York. The Red Cross society at its annua meeting in Washington reelected Miss Clara Barton president. The bonds of George B. Cortelyou and Judge William R. Hay as administrators of the estate of the late Pres ident William McKinley have been filed at Canton, O. E. L. Powell, of Wilson, N. C., manager of the brokerage business of Murphy & Co., of New York, is said to be short $40,000. Special Commissioner Rockhill's report on the results of his work in connection with the Chinese negotoations in Peking has been submitted to congress. Maj. Gen. Arthur MacArthur has been ordered to Denver to assume command of the department of Colorado. The eighty-third anniversary of the admission of Illinois into the union as a state was celebrated in Springfield. The Wanatah (Ind.) bank closed its doors with liabilities of $29,000. De positors will be paid in full. The corn erop of Illinois this year was 183,792,200 bushels, the smallest since 1890. William B. Leeds, of New York, has been elected president of the Chicago, Rock Island & Pacific railroad. Three children of Tunis Pons were drowned at Pompton Lake, N. J. while skating. The president has reappointed Interstate Commerce Commissioner Charles A. Prouty, of Vermont. Seven men have been arrested at Toledo, O., charged with robbing Ohio post offices. Near Kokomo, Ind., a train struck a wagon load of young people and one was killed and three seriously injured. The good offices of the United States have been tendered to Argentina and Chili to adjust their quarrel about frontiers and fortifications along the straits of Magellan. William Allen (colored) was hanged at Uniontown, Pa., for murdering Hiram McMillan. The twenty-first annual meeting of