13561. American State Bank (Scottsbluff, NE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
September 23, 1931
Location
Scottsbluff, Nebraska (41.867, -103.667)

Metadata

Model
gpt-5-mini
Short Digest
5218f88f

Response Measures

None

Description

Articles indicate the American State Bank of Scottsbluff was insolvent, placed in receivership by the court (Torgeson/Peterson) in 1931–1932 and assets (bank building) sold in 1933. No run is mentioned. Thus this is a suspension/receivership that resulted in permanent closure.

Events (3)
1. September 23, 1931 Suspension
Cause
Government Action
Cause Details
Court-appointed receivership for insolvent state bank; judge assigned Torgeson (and Peterson earlier) to liquidate failed banks.
Newspaper Excerpt
Peterson will file final reports at once on the American State bank of Scottsbluff and the Security State bank of McGrew, and will resign from their receiverships was stated. Togerson expected to also be assigned these banks.
Source
newspapers
2. April 18, 1932 Other
Newspaper Excerpt
STATE SUPREME COURT UPHOLDS ACTION OF DISTRICT JUDGE... refusing to name E. H. Luikart ... as receiver for the Mitchell State bank, Irrigators State, American State banks at Scottsbluff and other banks under his jurisdiction.
Source
newspapers
3. February 25, 1933 Receivership
Newspaper Excerpt
The American State bank building sold for $3,175 ... at conducted Torgeson, receiver of the defunct American State bank. The building was purchased by Mrs. George Hillerege ... The bank fixtures were not sold.
Source
newspapers

Newspaper Articles (7)
1. September 23, 1931 Osmond Republican Osmond, NE
Article from Osmond Republican, September 23, 1931

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Article Text

Bank Receiverships Are Denied Luikhart Denying application of Luikhart, secretary of the state department of trade and commerce, District Judge Carter Thursday assigned number of independent bank receiverships in western Nebraska to Torgeson of Scottsbluff. Judge Carter recently announced in other receivership actions that ne would not appoint Luikhart in place of Clarence Bliss, former secre. tary, or other receivers, until he had assurance that Governor would not interfere. The independent receivership transfers were made after H. Peterof Lodgepole, resigned. The Bridgeport, Angora and Broadwater banks were then placed under Togerson's jurisdiction. Peterson will file final reports at once on the American State bank of Scottsbluff and the Security State bank of McGrew, and will resign from their ceiverships was stated. Togerson expected to also be assigned these banks. Inasmuch as affairs of the Oshkosh Gering State banks are nearly wound up, Mr. Peterson is expected to close the receiverships within short time. Peterson of Lodgpole, receiver of number of failed banks in western Nebraska, has signed as receiver of the Bridgeport. Angora State and Broadwater State banks. District Judge Carter pointed E. Torgeson to succeed Peterson. Applications for the appointment H. Luikhart, secretary of the state commerce department, as receiver were on file with Judge Carter but he said he would not make the until Luikhart had appointment agreed to work under the direction of the court.

2. November 26, 1931 The Scottsbluff Pioneer Scottsbluff, NE
Article from The Scottsbluff Pioneer, November 26, 1931

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Article Text

Luikhart Files Suit To Oust Torgeson as Failed More fireworks broke out this week in the defunct bank situation in westNebraska, when word was received that E. H. Luikart and Gov. Bryan were filing suit to have Torgeson removed as receiver eleven failed banks in western Nebraska. Torgeson was appointed by Judge E. Carter some time ago. The Governor charges that Torgeson has received more pay than any other bank receiver, and that such excess salary must come out of the depositors' share of recovered funds in failed banks. further declared that banks in of the state would not pay out percent under Torgeson. Mr. Torgeson states that he will be glad to have an investigation of his management of failed banks. He cites several instances where banks he has handled have paid out considerably more than that, as follows Irrigators, Scottsbluff, 57 per cent; American State, Scottsbluff, 58.25; American bank, Mitchell, 50; Bank Bayard, Bayard, 50; Nebraska State, Bridgeport, 55.9; Mitchell State, Mitchell, 35.5; Lyman, 17; State Bank. of Minatare, Minatare, Bridgeport bank, Bridgeport, 16 per cent.

3. April 18, 1932 Scottsbluff Republican Scottsbluff, NE
Article from Scottsbluff Republican, April 18, 1932

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Article Text

COURTS ALONE HAVE POWER TO SELECT RECEIVER OF BANKS STATE SUPREME COURT UPHOLDS ACTION OF DISTRICT JUDGE E. F. CARTER AT GERING Declaring that the imperative duty of the Judicial department of government to protect its jurisdiction at the boundaries of power fixed by the constitution and that the naming of state bank receivers is a judicial function which cannot be exercised or controlled by the governor or legislature, the supreme court Saturday upheld the action of District Judge Carter at Morrill ingrefusing to name E. H. Luikart, secretary of trade and commerce, as receiver for the Mitchell State bank, Irrigations State, American State banks at Scottsbluff and other banks under his jurisdiction. The court, in a written opinion by Justice Rose, says that the legislature has provided that the secretary of trade and commerce shall be the sole receiver of all insolvent state banks amounts to no more than a judicial proceeding, properly pending in & court of equity for the liquidation of a bank. than a legislative recommen. dation of a. recommendation to the judiciary to appoint him, as otherwise the enactment would be an unconstitutional enroachment on judicial power. Judge Carter was the only district Indge who refused to name Luikart when the Intter succeeded Bliss. He appointed A. E. Torgeson, who had been assistant receiver under Bliss. the ground that having had actual charge of the liquidation of these banks he was in better position to serve all interests than Luikart, who must necessarily name some one to handle their liquidation. In its recent decision, the court points out that the statutes nowhere provide for the Hquidation of state banks without invoking the judicial power of the state, and the legislature has never granted to any executive officer, administrative board, department or tribunal authority to wind up arfairs of banks without invoking the aid of the court. The law is that the secretary of trade and commerce shall report a bank's insolvency to the attorney general, who shall ask the courts to name a receiver, and then proceeds to tell the court that it shall name the secretary as receiver.

4. April 21, 1932 Bridgeport News-Blade Bridgeport, NE
Article from Bridgeport News-Blade, April 21, 1932

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Article Text

SUPREME Says Judiciary Has Sole To Name Receivers For Insolvent Banks The Supreme Court of Nebrasdecision down last Saturday, upheld the position District Judge Carter when he appointed Torgeson of receiver for seven failed banks in his judicial district. The attracted statewide interest since rested squarely the proposition whether or not the governor could dictate to the courts as the appointing of receivers. The Supreme Court held that receiver is an officer the court and any attempt of the executive the legislative name the officers of the court and tional and upon the authority of the judiciary. Judge Carter is the only district judge in the state who pointed receiver other than the one named by the governor. He refused to appoint H. Lulkart receiver unless Governor Bryan promised to refrain from interfering with the receivership. dispatch from Lincoln on the states: Declaring that it is the impera. duty of the department the tect its jurisdiction at the boundaries power fixed by the and that the naming state bank receivers judicial which cannot be exercisor controlled by the governer legislature, supreme court Saturday upheld action of District Judge Carter in refusing name secretary trade and commerce. receivfor the Mitchell State State Bank Bridgeport, Lyman State Bank. American State Bank Scottsbluff, Nebraska State Bank of Minatare the Bank Bayard. Justices Payne and Day dissented. The court, in an opinion written by Justice Rose, says that legislative act providing that the secretary trade and shall the sole receiver all solvent state banks amounts no more than Legislative to the judielary appoint him, otherwise the enaetment would be an unconstitutional encroachment judicial power. Judge Carter the only district judge refused to appoint Luikart, when latter aucceeded Bliss. He appointed Torgeson, who has been sistant receiver under Bliss, the ground that having had tual charge of the liquidation of seven banks he than must necessarily someone to handle their liquidation.

5. April 21, 1932 The Morrill Mail Morrill, NE
Article from The Morrill Mail, April 21, 1932

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Article Text

POWER TO SELECT BANKS' RECEIVERS Declaring that the imperative duty of the judicial department of government to protect its jurisdiction at the boundaries of power fixed by the constitution and that the naming of state bank receivers judicial function which cannot be exercised or controlled by the governor or legislature, the supreme court Saturday upheld the action of District Judge Carter at Gering in refusing to name E. H. Luikart, secretary of trade and commerce, as receiver for the Mitchell State bank, Irrigators State bank of Bridgeport, Lyman State bank, American State bank of Scottsbluff, Nebraska State bank of Bridgeport, State Bank of Minatare, and Bank of Bayard, says the Nebraska State Journal. The court, in an opinion written by Justice Rose, says that legislative act providing that the secretary of trade and commerce shall be the sole receiver of all insolvent state banks amounts to more than judicial proceedings, properly pending in court of equity for the liquidation of bank, than legislative recommendation to the judiciary to appoint him, as otherwise the enactment would be an unconstitutional encroachment on judicial power. Judge Carter was the only district judge who refused to name Luikart, when the latter succeeded Bliss. He appointed E. Torgeson, who had been assistant receiver under Bliss, on the ground that having had actual charge of the liquidation of banks he was in better position to serve all interests than Luikart, who must necessarily name some to handle their liquidation. The court points out in its decision that the statutes nowhere provide for the liquidation of state banks without invoking of the state, and the legislature has never granted to any executive officer, administrative board, department or tribunal authority to wind up affairs of banks without invoking the aid of the court. The law is that the secretary of trade and commerce shall report bank's insolvency to the attorney general, who shall ask the courts to name receiver, and then proceeds to tell the court that it shall name the secretary as receiver. Use of the courts for purposes of liquidation has been the universal practice both before and after the law under discussion was passed. The law-makthemselves provided for judicial liquidation. The court says that as the governnames the secretary and may retire him and name another, the effect of the law is to make it mandatory the courts to name whoever he names, and to modify the judgment of the court. Neither the executive nor the legislative pending cause, can change or modify judicial orders or lawfully require the court to do judicial order pending litigation does not hange with political fortunes or legslative executive appointments. The framers of the constitutions, state and federal, have adopted the plan of executive, legislative and judicial departments independent of each other. has been regarded by statesmen and philosophers as an outstanding advancement in the sciof government. Thruout the judicial history of the present systhe courts have scrupulously respected the prerogatives the other departments and extended the comity due governmental divisions of equal rank, but courtesy does not extend to the surrendering of judicial power.

6. April 21, 1932 The Mitchell Index Mitchell, NE
Article from The Mitchell Index, April 21, 1932

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Article Text

CARTER DECISIOIN BANK RECEIVERSHIPS SAYS POWER NOT VESTED IN GOVERNOR TO APPOINT RECEIVERS OF FAILED BANKS Act Unconstitutional Declaring that is the imperative duty of the judicial of to protect its jurisdiction the boundaries of power fixed the constitution and the naming state bank receivers judicial function which cannot be exercised controlled by the governor or legislature, supreme court Saturday upheld the action of District Judge Carter of this judicial district, in fusing to name Luikart, tary trade and commerce, ceiver for American Bank of Mitchell, Irrigators bank of Scottsbluff, Lyman State bank, American State bank Scottsbluff, Nebraska State bank Bridgeport, State Bank of Bank of Bayard. tices Paine and Day dissented. The court, in an opinion written Justice Rose, says that legislative providing that the secretary trade and shall be sole receiver of all insolvent state banks amounts to no more than judicial proceeding, properly pending in court of equity for the liquidation bank, than legislative recommendation the judiciary to appoint him, as the would be an croachment on judicial power. Judge Carter Named Torgeson Judge Carter was the only district judge who refused to name Luikart, when the latter succeeded Bliss. appointed Torgeson, who had been assistant receiver under Bliss, on the ground that had actual of the these sevbanks he was in better position serve interests than Luikart, must necessarily name some one handle their liquidation. The court points out in decision that the statutes nowhere provide for liquidation state banks withinvoking the judicial power state, and the legislature has granted to any executive board, tribunal authority wind up affairs banks the The law is that the tary of trade and shall port bank's insolvency to the attorney general, who shall ask the courts name receiver, and then ceeds tell the court that name the secretary as receiver. Use the courts for purposes of liquidation has been the universal practice both before and after the law under discussion was passed. The lawmakthemselves provided for judicial The court says that as the governnames the secretary and may tire him and name another, the fect of the law to make mandatory on the courts to name whoever he names, and to modify the ment of the court. Neither the nor the legislative department pending cause, can change modify judicial orders or lawfully quire the court to do judicial order pending does change political fortunes or acts executive ments. Can't Surrender Power. The framers of the constitutions, state and federal, have adopted the plan executive, legislative and dicial departments independent other. has been regarded by statesmen and standing advancement in the science government. Throughout the history of the present the courts have spected the of the other and extended them the due to divisions equal rank, but courtesy to the surrendering judicial power. Justice Paine, in his dissent, said that to back to the custom district judge appointing pendent receivers each county for banks will defeat the whole worked out the legislature. thought that the supreme court should the fact that disjudges in all other districts named He the plan has brought order out of chaos tends for speedy and While an officer the court justice thinks that the case presents just overlapping power in the twilight zone between departments. suggests that the judiciary cheerfully co-operate the end prompt, vigorous efficient by responsible person be effected in the interest of depositors. Franz Radke, counsel for the banksaid the cision given Saturday that effect sought for in be secured another change the statutes. believes not be necessary change constitution in have control of receiverships placed the hands of the Radke believes inconsistent for the state to set up an elaborate machine for the handling of receiveronly have the court say ship, ably would not effect changes any districts where judges have given their permission for him to act ceiver. doesn't make any difference personally,' the secretary plained, do this work without pay. handled in this office simplified manner."

7. February 25, 1933 Star-Herald Scottsbluff, NE
Article from Star-Herald, February 25, 1933

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Article Text

Bank Building Sold to Terry Carpenter; L. Bryan Buys Farm The American State bank building sold for $3,175 and 280-acre farm sold for $5,300 yesterday at conducted Torgeson, receiver of the defunct American State bank. The building was purchased by Mrs. George Hillerege agent for her son, Terry Carpenter, and the farm property by Bryan. The latter assumed mortgage of 300 the farm. held by the Federal Land bank of Omaha His bid was above this amount. The land known the Andrews farm. The bank fixtures were not sold.