13562. Irrigators Bank (Scottsbluff, NE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 23, 1929
Location
Scottsbluff, Nebraska (41.867, -103.667)

Metadata

Model
gpt-5-mini
Short Digest
ee4ea9e4

Response Measures

None

Description

No bank run is described in the articles. The Irrigators Bank of Scottsbluff is repeatedly referred to as a failed state bank placed in receivership (receiver Clarence G. Bliss, later A. E. Torgeson). The pieces describe legal fights over control of receivership records and appointment of receivers; the bank remained in receivership/closed (final reports filed Aug 14, 1931). OCR errors corrected (e.g., Irrigators' Bank and dates inferred from article text).

Events (1)
1. November 23, 1929 Suspension
Cause
Bank Specific Adverse Info
Cause Details
The bank is described as a failed state bank placed in receivership (insolvency/liquidation) and administered by state receivers beginning at least Nov 23, 1929; final reports filed Aug 14, 1931 indicating permanent closure.
Newspaper Excerpt
the report on the Irrigators bank of Scottsbluff. The report covered the period from November 23, 1929, to August 14, 1931
Source
newspapers

Newspaper Articles (10)
1. July 8, 1931 Norfolk Daily News Norfolk, NE
Article from Norfolk Daily News, July 8, 1931

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SEEKS GOVERNOR TEMPORARILY STRAINED FROM INTERFERING WITH RECEIVERS LUIKART MADE SECRETARY Chief Executive Asked to Show Cause By July 24 Why Me Should Not Punished for Contempt for Interference Lincoln. July heels. of Bryan's today Lincoln that would transfer 200 bank Luikart secretary the banking depart ment. action started Gering. Neb., which the govertemporarily restrained from interferring with Clarence Bliss, former department secretanow receiver for the failed stitutions The injunction proceedings were started the name of the failed Irrigators' Bank of Scottsbluff, for which Bliss The temporary restraining order issued by District Judge Carter, ordered hearing the for July 24 o'clock. The Judge Carter ruled. shall have until July these allegations Bliss petition "That the governor wrongfully undertaken possession control bank records and files and usurp the authority of the receiv- skillful and competent torneys employed assist the ceiver discharged and inexperienced and incompetent counemployed by the governor their places, thus jeopardizing interests of depositors. such acts the governor constitute unlawful and willful misuse of executive authority, unwith the bank his duties. usurpation of and contempt court. Although the Gering action fects only one the indicated that follow. One citation by Bliss that the governor had failed partment secretary offset the executive's appointment today Mr. Luikart that position. capitol learned that combination lock has been placed upon the door the receivership and list stockholders failed banks. Workers said done the order of the ernor. apparently to prevent Bliss Beynon, discharged the executive legal advisor the receiver. from gaining access records. Elevation of Luikgrt full from the position of deputy created by the governor when he first appointed the former be compliance with state code department desig nating the department head qualified receiver for failed banks, governor said. was defiance demand state senate last winter that Governor Bryan refused to department secretaries, placing deputies charge instead as economy move. was later held Atty. Gen. Sorensen Explains Appointment Governor Bryan explained his appointment of Luikart he believed the move would technical wording the and legal SEE PAGE NUMBER

2. July 8, 1931 North Platte Daily Telegraph North Platte, NE
Article from North Platte Daily Telegraph, July 8, 1931

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Governor Commanded Not To Interfere Clarence Receiver; Hearing July 24. Lincoln, July heels Governor Bryan's nouncement today in Lincoln that he would ask transfer of 200 bank receiverships to H. Luikart, secretary of the banking department, an action was started in Gering, Neb., in which the governor was strained from interferring with Clarence G. Bliss, former department secretary, now receiver for the failed institutions. The injurction proceedings were started in the name of the failed Irrigators' Bank of Scottsbluff, for which Bliss is receiver. The temporary restraining order issued by District Judge Carter, who ordered hearon the application for July at 10 o'clock. The governor, Judge Carter ruled. shall have until 20 to answer these allegations in Bliss' petition: "That the has governor wrongfully and unlawfully undertaken seize possession and control bank records and files and usurp the authority the receiver. "That skillful and competent attorneys employed assist the discharged and receiver inexperienced and incompetent counsel employed by the in their places, thus jeopardizing the interests of depositors. such acts by the constitute un'awful and ernor willful misuse of executive thority, unlawful with the bank receiver in his duties, usurpation of and contempt of Although the Gering action feets one of the 200 only ceiverships, it was indicated that might follow. more One citation by Bliss that the governor had failed name was offset department secretary the executive's appointment today of Mr. Luikart to tion. At the capitol it learned that combination lock has the door to the been placed upon vault containing the receivership records and list stockholders failed banks. Workers said done the order of the apparently to prevent Bliss Beynon, discharged by the executive as legal advisor the receiver, from gaining to the records.

3. July 9, 1931 The Oshkosh Northwestern Oshkosh, WI
Article from The Oshkosh Northwestern, July 9, 1931

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OPPONENTS OF BRYAN FAIL TO GAIN ACCESS OF STATE BANK RECORDS Lincoln Opponents o: Gov Charles W. Bryan were looked to today for the next move . the Nebraska department of trade and commerce scrambled for custody of the books and records of the division of state bank receiverships The governor's rivals vesterday failed to gain access to the books when Bryan declined to be served by Sheriff Claude Hensel with writ of replevin Attorney for C G Bliss. the governor's chief opponent intimated they might resort to writ of mandamus to compel Bryan and his associates to relinquish the books Earlier yesterday Bryan had promoted E H Luikart from deputy secretary to secretary of the state commerce department and ordered him to take over the more than 200 receiverships now held by Bliss former secretary of the commerce de partment On the heels of that action came the news of the court order restrain ing Bryan from interfering with Bliss in his handling of the affairs of the now defunct Irrigators bank of Scotts Bluff one of the list of receiverships being handled by Bliss. The trouble started last week when Bliss and other state bank re ceivers asked the governor to keep his hands off the receivership division. Bliss charged that without his consent Bryan had discharged "many experienced and trusted employes. replacing them with his (Bryan's) political friends Bryan answered by request of "dismissing" the chief counsel of the receivership division for "insubordi nation' and charging that "plot had been made to secretly remove from the state house at night the records of the receivership division During a recent hot spell gila monster 20 inches long was found on street in the heart of down town St. Louis

4. July 9, 1931 Omaha World-Herald Omaha, NE
Article from Omaha World-Herald, July 9, 1931

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BLAMES REPUBLICANS FOR WITH Charges AttorBryan Wanted neys Hold on Payroll.' Lincoln, July Governor Bryan was issuing statement today criticizing republicans in the state for inspiring the bellious" acts of Clarence G. Bliss, receiver for two hundred banks, Bryan's legal envoys maneuvered transfer of nine their first Bliss' receiverships to Luikart. now secretary of the partment of trade and commerce. Lincoln, state banking department officials and overtime toclerks working for the to draft petitions day bank to Liukart, department secretary. Bryan took advantage of another temporary Jull in his controversy with Clarence Bliss, to level broadside at those he said sponsible for Bliss' attempts to evade In detailed statement, Governor Bryan sought to show that publicans in the state inspired the former secretary to plan separate organization outside of the capitol building. These party members, largely attorneys charged. were striving hold on the payroll. of this state, duty and intend to carry it out, to cut man off the payroll who is not absolutely needed and to dollar that possible to the depositors whose money is that has been squandered," said the statement Governor Bryan further charged that the situation had been the same for and years. Statement of Salaries. With his statement the governor attached an itemized of salary payments the attorneys he said had money, "commencing with the Weaver administration and up to the present time.' Opponents Governor Bryan were looked to for the next move in the scramble for custody of the books and records of the division of state bank The governor's rivals yesterday failed gain access to the books when Bryan declined to be served by Sheriff Claude Hensel with write of replevin. Attorneys for Bliss, the governor's chief opponent, intimated they might sort to writ of mandamus to compel Bryan and his associates to relinquish the books. Complex Situation. Earlier yesterday Bryan had promoted H. Luikart from deputy secretary to secretary of the state department and ordered him to take over the more than two hundred receiverships held by Bliss, former secretary of the department. On the heels of that action came the news of the court straining Bryan from interfering with Bliss in his handling of the affairs of the now defunct Irrigators Bank of Scottsbluff, of receiverships being handled by Bryan. The trouble started last week when Bliss and other state bank receivers asked the governor to keep his hands off the receivership division. Bliss charged that, without his consent, Bryan had discharged "many experienced and trusted employes, replacing them with his political friends. Bryan answered the request "dismissing" the chief counsel of the receivership division for "insubordination, and charging that "plot" had been made to secretly remove from the state house at night, the records the receivership division. Governor Defends Course. Declaring he was attempting to protect the depositors in failed banks and to prevent expense, said for me to enforce the law and assume the responsibility for what has been paid out by Mr. Bliss and Beynon (receivership discharged by Bryan) and those who have been charge of the dividuring the past two and onehalf He added "thousands and thousands of additional dollars were paid out prior to the Weaver administration." Bryan said democratic attorneys in banking work by his orders few and small amounts. He that republican attorneys had over the state as attorneys for banks in widely scattered places. Bryan said he understood that the firm of Mothersead and York Scottbluff which received for handling nine receiverships, started the restraining action at Gering yesterday in which he was enjoined from with Bliss as receiver the Irrigators Bank The governor also that State Senator H. G. Wellensiek of Grand Island. republican. who made vigorous fight against him during recent special session connection with state bank affairs, received $3,098 for legal work in five receivership actions. "And you may say for Bryan added, "that Mr. Wellensiek who made this partisan attack upon me, will probably be asked to return that money the constitution plainly prohibits member of legislature from drawing money from any other source from the state.' Bryan's list of attorneys for matters contained 109 banking names attorneys. In the banking department all haste possible was being made in the preparation of the court petttions to be filed in each of the two hundred receiverships held by Bliss. Clerks in the department they worked until midnight yesterday to rush the work along Neither Bliss nor Beynon were in their offices today in the receivership division. deputy from the office of State Sheriff Michael Endres stood guard over the vault where the records are safeguarded.

5. July 10, 1931 Neligh Leader Neligh, NE
Article from Neligh Leader, July 10, 1931

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ernor had failed to name a department secretary was offset by the executive's appointment Wednesday of Mr. Luikart to that position. At the capitol it was learned that a new combination lock has been placed upon the door to the vault containing the receivership records and list of stockholders in all failed banks. Workers said it was done at the order of the governor, apparently to prevent Bliss or I. D. Beynon, discharged by the executive as legal advisor to the receiver, from gaining access to the records. Elevation of Luikart to a full secretaryship from the position of deputy created by the governor when he first appointed the former, will be in compliance with the state code deBuy one at During that period they were to be appraised, the writ requiring that Bliss post a bond double the appraised value if he would gain access to them. The action prepared for service on the governor also asked $1,000 damages. The process obtained by Bliss was directed at Bryan, Luikart and C. G. Stoll, chief of the receivership, alleging they were being wrongfully detained by the appointees, and that Bliss was prevented from referring to them. The governor assured him, Hensel said, that the combination on the receivership division vault had been changed and other means had been taken to secure the records in the capitol. Attorneys for Bliss declined to say what would be their next move. Governor Bryan, after Sheriff Hensel had left, told representatives of the press that he had refused to permit the property to be moved. The records are the property of the state of Nebraska Bryan said, and the governor has them in charge. He said neither he, Luikart nor Stoll had accepted service. They merely had permitted the papers to be left, Bryan explained. "I do not feel that the state of Nebraska can be sued and its property taken by a process of this kind," Governor Bryan said. "Neither Bliss nor Beynon (I. D. Beynon, chief counsel for the receivership division) are employes of the state, represent the state or in my opinion have any rights to the property in question." The injunction proceedings were started in the name of the failed Irrigators Bank of Scottsbluff for which, Bliss is receiver. District Judge Carter ruled Bryan shall have until July 20 to answer these allegations in Bliss' petition: "That the governor has wrongfully undertaken to seize possession and control of bank records and files and to usurp the authority of the receiver. "That skillful and competent attorneys employed to assist the receiver were discharged and inexperienced and incompetent counsel employed by the governor in their places, thus jeopardizing the interests of depositors. "That such acts by the governor constitute unlawful and willful misuse of executive authority. unlawful interference with the bank receiver in his duties, usurpation of power, and contempt of court." Although the Gering action affects only one of the 200 receiverships, it was indicated that more might foll- The hearing on the injunction suit, filed in the name of the failed Irrigators' bank of Scottsbluff, was set for July 24. Other injunction suits were anticipated. One citation by Bliss that the gov- partment law designating the department head as qualified receiver for all failed state banks, the governor said. It was in defiance of a demand by the state senate last winter that Governor Bryan refused to name department secretaries, placing deputies in charge instead as an economy move. He later was upheld by Attorney General C. A. Sorensen. Governor Bryan explained his appointment of Luikart by saying he believed it would meet the technical wording of the statute and possible legal questions as to Luikart's authority to become the receiver.

6. July 27, 1931 The Sioux City Journal Sioux City, IA
Article from The Sioux City Journal, July 27, 1931

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Bryan Is Enjoined from Interfering with Bank Receiver Gering. Judge E. F. Carter granted permanent injunction here restraining Gov. Charles W. Bryan from interfering with Clarence G. Bliss, former trade and commerce secretary, as receiver of the Irrigators bank of Scottsbluff. The decision, however, dismissed contempt proceedings instituted against Bryan on the strength of Bliss' claim that the governor violated the restraining order by refusing to give him access to the reJudge Carter also refused the application of Gov. Bryan for the transfer of in his district from Bliss to E. H. Luikhart, successor to Bliss as the departmental head.

7. July 27, 1931 The Grand Island Independent Grand Island, NE
Article from The Grand Island Independent, July 27, 1931

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Bryan, Bliss Bank Hearing Draws Close Governor Is Praised and Con. demned for His Actions by Lawyers Gering, Neb. July 27. neys for Gov. W. Bryan and Clarence G. Bliss, former secretary of the department of trade and commerce, presented final arguments in district court here Saturday in which the chief executive was both defended and criticized for his handling of bank receivership affairs Counsel for Bliss, who gained restraining order here preventing Bry. an from interfering with the former secretary in his of receiverships, declared evidence warranted holding the governor in contempt. Attorneys for the executive, on the other hand, his acts and upheld Bryan in his recent appointment of E H. Luikart as department Neighbors, appearing with Arthur Mullen, Omaha, and Franz Radke, for Bryan, held that the executive could not be cited for contempt in that he was acting under specific law on which no interpretation had been placed by the supreme He held that Bryan was acting in his own when he hired and discharged employes of the department, and should not be penalized for exercizing official discretion in matters of state government. The restraining order was issued in connection with the receivership of the failed Irrigators' Bank of Scottsbluff. In attempting to show con. tempt of court upon the governor part, the attorneys for Bliss refer: to Bryan's refusal to permit Bliss have access to the bank receiversh York, Scottsbluff counsel for Bliss, held that Bryan his sphere when he attempted to dictate affairs of the receivership division, department he said is under the rection of the courts and entitled to its protetcion. He further contended that Bryan's appointment of Luikart was null because it had not been

8. November 26, 1931 Omaha World-Herald Omaha, NE
Article from Omaha World-Herald, November 26, 1931

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STATE BANK RECEIVER REPLIES TO GOVERNOR $175,507 Collections Compared to Total $7,526 Expense. Scottsbluff, Neb., Nov. 25 (P).A. E. Torgeson of Scottsbluff. recently appointed receiver of 11 western Nebraska failed state banks, today answered charges he said Governor Bryan has made against him. Governor Bryan, Torgeson said. charged that he (Torgeson) had received "more salary than any other assistant receiver in the state, and in so doing has taken money away from the depositors.' In his statement, Torgeson is making public reports on each of the failed banks he has been administering, releasing today a report on the Irrigators bank of Scottsbluff. The report covered the period from November 23, 1929, to August 14, 1931, the date Clarence G. Bliss, former receiver, filed a final report and was discharged. Bank Charged $1,775. Torgeson was appointed by District Judge E. F. Carter to replace Bliss, after Judge Carter declined the application for appointment of E. H. Luikart, secretary of the state department of trade and commerce. Judge Carter, prior to the appointment of Torgeson, said he would not appoint Luikart until he was assured there would be no interference from Governor Bryan. Torgeson's report said his mileage and while away from home. and the cost of clerks totaled $2,748.33, while for the same period the state made charges of $1 against the bank. He showed total expenses for all items at $7,526.39 as against collections of $175,507.03. figuring collection expenses at 4.28 per cent. In the same period he collected $6,634.36 in interest. Gets $300 Month. "We would call particular attention." Torgeson's statement said, "to a charge of $1,775 made by the state commerce department for taking care of these funds as compared with a cost of $2,748.33 paid

9. December 1, 1931 The Alliance Times-Herald Alliance, NE
Article from The Alliance Times-Herald, December 1, 1931

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RECEIVER ISSUE TO THE SUPREME COURT State Bank Department Protests the Appointment of Torgeson by District Judge Right of a district judge to appoint a man other than the secretary of the state department of trade and commerce as receiver for a failed state bank was placed before the Supreme court Tuesday morning when Governor Bryan's banking department appealed from refusal of District Judge Carter to name E. H. Luikart as receiver for five failed banks in Scotts Bluff county. The five banks, State bank of Minatare, Mitchell State bank, Irrigator's bank, Scottsbluff. Lymar. State bank and American bank, Mitchell, were ones in which Judge Carter appointed A. E. Torgeson as receiver instead of Luikart. The western judge discharged Clarence G. Bliss as receiver following submission of final reports but denied the application of Luikart for appointment as receiver. Torgeson, who had been assistant receiver of the banks, and who was held by the court to be familiar with their affairs and competent to administer the receiverships, was named instead.

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

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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."