13698. Saunders County National Bank (Wahoo, NE)

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
3118
Charter Number
3118
Start Date
April 17, 1930
Location
Wahoo, Nebraska (41.211, -96.620)

Metadata

Model
gpt-5-mini
Short Digest
366ae808

Response Measures

None

Receivership Details

Depositor recovery rate
25.4%
Date receivership started
1930-04-22
Date receivership terminated
1937-06-30
OCC cause of failure
Fraud
Share of assets assessed as good
14.3%
Share of assets assessed as doubtful
55.0%
Share of assets assessed as worthless
30.7%

Description

Saunders County National Bank (Wahoo, NE) was suspended by its board and the Federal Reserve Bank after the Nebraska State Savings Bank (same building, same officers) was taken over by the State Banking Department due to slow collections from continued low farm prices (April 1930). The bank did not resume business; a federal receiver (H. C. O'Neal / George Cronkleton referenced) pursued litigation later in 1930, indicating permanent failure and receivership.

Events (4)

1. February 4, 1884 Chartered
Source
historical_nic
2. April 17, 1930 Suspension
Cause
Local Shock
Cause Details
Continued low prices of farm products caused slow collections and depletion of reserves; State Banking Board took over Nebraska State Savings Bank (same building/same officers) and the National bank's operation became untenable, leading to voluntary suspension by board and sanction of the Federal Reserve Bank.
Newspaper Excerpt
the Saunders County National bank suspended business.
Source
newspapers
3. April 22, 1930 Receivership
Source
historical_nic
4. September 19, 1930 Receivership
Newspaper Excerpt
H. O'Neal, receiver of the failed Saunders County National bank at Wahoo, filed suit in federal court here Friday against ... Kirchman ... O'Neal, receiver for the Saunders County National bank at Wahoo, filed six suits Tuesday morning in federal court ... same receiver references in Sept-Nov 1930 articles.
Source
newspapers

Newspaper Articles (17)

Article from The Sioux City Journal, April 17, 1930

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Six Saunders County Banks Close Doors Lincoln, Neb. (AP) Six small banks in Saunders county, with deposits aggregating $1,400,000, have been closed in two days. They were part of privately owned chain/in which F. J. Kirchman had the controlling interest. The break came Tuesday when the Saunders County National bank, with deposits of $500,000, and the Nebraska State Savings bank shut their doors. Both were in Wahoo, the county seat. The state banking department Wednesday announced the closing of four other institutions in smaller Saunders county towns. Wisner Early Settler Dies Wisner, Neb. Special: Julius Jahns, 79, resident Wisner and vicinity 48 years, died in a Norfolk


Article from The Independent, April 17, 1930

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OF WEEK Made Being and Open Within Short Time COLLECTION SLOW Kirchman, States That "Depositors Will Not One Citizens Wahoo and Saunders surprised by the closthe chain of banks of of which Kirchcounty banker, president, during Tuesday Wednesday. Wahoo institutions, Nebraska State Savings Bank and The Saunders County National Bank closed Tuesday former was closed by the banking and the closed by the board shortly following. The banks Weston, Touhy, Valparand which Mr. chman president closTuesday afternoon and Wednesday morning. combined deposits of all the banks involved but "not dollar lost the depositors,' President Kirchman stated. possible effort being pended reorganize" he said, whether this possible can told for certain until after examiners have completed their reports." have spent years Mr. Kirchman said, all that time have always during transactions according governed best judgment and the this unfortunate condifor tion entirely to slow the banks cannot be tions. shall be stripped, but opened will not still very hopeful am the banks soon the examiner ready port President Kirchman although can't tell


Article from The Independent, April 17, 1930

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To the People of and Saunders County: to continued low prices of farm products, Owing bank collections have been rendered slow. Unwilling the of farm notes the Kirchman afto force payment filiated banks suffered depletion of their reserves. This caused the State Banking Board to take over the Nebraska State Savings Bank, and because this bank occupies the same building, the continued operation of the Saunders County National Bank became unand by voluntary act of the Board of Directtenable, ors, sanctioned by the Federal Reserve Bank, the Saunders County National bank suspended business.


Article from Wahoo Newspapers, April 17, 1930

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WILLS AND ESTATES EVA KNOBE The Eva Knobe of died Lincoln, March has been filed for probate. Personal property estimated Edwin Knobe, husband, Ashland; Gordie Knobe, Marcus Knobe, Ashland; Williams, Greenwood; Grace Sutton, daughter, Waverly. ANNA FRANSON The died March, 27, The estate consists of estate and personal property hairs Victor Franson, son, Colon; Elmer Franson, Colon; Anderson, Colon, daughter. The latter petitioner and the petition that Victor Franson quests Elmer Franson execute the Galloway the attorney. JOSEPH CIZEK The Joseph Cizek, Prague, March 29, The are: Thomas, Joseph and James Cizek, sons; Marie Agnes Cizek, daughfiled by Marie Cizek, asks that Catherine Cizek administratrix. Slama and Donato are attorneys. JIRI BARTEK for of petition has filed in the Heirship Jiri Bartek, who died estate Aug. 1913. The petition alleges that than years have elapsand has been appointed. The living Joseph, John, George, Andrew, and Julius the and Kamilla Kash Veronika Zetochka, Bartek, daughters. Joe F. Berggren the attorney. CHARGED WITH FORGERY Rudolph Kracman, arrested Malmo Sheriff Mengel, before Justice Lehr arraigned of forging check for charge dollars Osten, farmer. Kracman pled guilty bound District Court. being county jail pending sentence. ELECTRICAL WIRING Electrical wiring and repairing all kinds certified electricians. Anderson Webster Electrical Phone 171, Wahoo. The state Banking Department closed the Nebraska Savings Bank here last Tuesday The Saunders County National Bank, operated same building the same officers, was closed the same time by order the Board Directors. Slow collections caused the banks to close doors. the depositors either penny, declared presithe two institutions. "There are adequate assets to take under the Bank After Banking the Sav ings Bank, the Board of Directors voted to close the National Organized in 1882. The bank organized by George Dorsey of mont 1882, Saunders County National came into existence two years later. banks have steadily, and were among the first small town banks state have million dollars deposits. Kirchman, president of the institutions, connected these banks continuously for almost half century. He came Wahoo, December 1884, and accepted unimportant post the bank. 1893 he pointed assistant cashier, and rise rapid thereafter. promoted vice president 1900 president 1923. Other officers the Kirchman, cashier: Malcolm cashCharles ant the Podhaisky, Teller; Max clerk; Arnold Kirchman, clerk; Roy The last statement the $273,646.32 creditthe Nebraska State Savings Bank and the Saunders County National. Total Examiner Larson charge the Savings Bank Examiner charge of the National Bank. today, State Bank George Woods declared the failure of Wahoo banks precipitated the closing of the following affiliated banks Saunders county: State Bank Touhy, ficers Petermichel, president; Kirchman, president; Kirchman, president, and and bank, Weston, whose officers Kirchman, president, Petermichel, president, Ferdinand Pacal, cashier, James Pavlik, sistant cashier, deposits $168,State bank, of Colon, whose officers are president; Bastar, Sams, vice Henderson, cashier, deposits, Oak Creek Valley bank, araiso, whose officers Kirchman, president; Jul Petermichel, Moscashier; Roh, assistgrove, cashier, deposits Examiner Nelson the Nationbanking system charge Saunders County bank, while the state charge the state Larson, State SavBank Farmers and Merchants Sorensen, State Bank, Virgil Oak Creek Valley Bank Valparaiso. While the other banks the First and Citizens State Banks fortified with large sums cash to meet demand that might made. One the heaviest creditors Saunders County National Bank Saunders County which $25,000 These funds protected by surety bonds, the responsibility the bank. SILENCE IS GOLDEN The local financial situation for exercise more ordinary patience and forbearance the banks have opportunity re-organize their shat tered fortunes. going profit reviling and charging officials with adding the already existing. enough hurtful comment for the time being, least. There for radical thought action. that Saunders one of the richin Nebraska, cannot above the financial flurry emerge and safer than should take council with other and refrain from doing that might further injure the the county. This one the life when silence golden.


Article from Wahoo Newspapers, April 17, 1930

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TO THE PEOPLE OF AND SAUNDERS COUNTY Owing to continued low prices force the payment of farm affiliated banks suffered depletion their reserves. caused the Banking Board take the Nebraska Savings Bank, bank occupies same building, the operation the Saunders County National Bank became untenable by voluntary act the Board Directors, the Federal Reserve Bank, Saunders County National bank suspended business. Closing banks community always creates unrest easiness, informed upon good authority that the actual condition appearances would already looking the organization banks and our good hopeful. reliably that slight, and the slight, there will be among vast number be felt by any Hearty co-operation on the the people will aid materially speedy re-organization. Where all possible, the people to strain point their hey can. Kindly lend hand. Signed, Wahoo Chamber of Commerce. ASSAULT AND BATTERY Edward Hancock Rand Snook with assault and battery complaint filed Tuesday George The alleges that the occurred highway tween Cedar Bluffs and Fremont April


Article from The Grand Island Independent, August 5, 1930

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Kirchman Enters Plea Of Not Guilty Released on Ten Thousand Dollar Bond-Granted Change of Venue Wahoo, Neb., Aug. 5. H. Kirchman, former cashier of the failed Saunders County National bank of this city, entered plea of not guilty before District Judge P. D. Landis today when arraigned on 14 counts charging him with complicity. The specific complaints alleged that the cashier was implicated with Kirchman, now serving 60 year sentence for unlawful conduct in handling the bank's affairs. Represented by Eugene O'Sullivan, Omaha lawyer, Kirchman was granted a change of venue to Seward Judge Landis fixed August 25 as the date of trial. Kirchman has been under arrest in local hospital, he was admitted to bail in bond of $10,000 signed by Dr. Joseph Kaspar of Prague. Justina Carek, assistant to Charles Carek who will be tried at Seward August 14, on charges of misapplication of funds of the closed Touhy bank, another of the Kirchman string, was also arraigned today and her trial set for September 22 when she entered plea of not guilty. Charles Carek was arraigned yesterday. He was succeeded as cashier of the Touhy bank by Max Kirchman who was sentenced yesterday to serve to 10 years.


Article from The Lincoln Star, September 19, 1930

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BEGIN RECOVERY OF WAHOO BANK Receiver Asks Accounting And Title to Property In Federal Court. Recovery of nearly allegedthe recentfailed Saunders County National at Wahoo, started in Federal court here Friday with the petition by H. O'Neal, ing receiver for bank, asking accounting and title to interest and machinery farm of Ora Keeler in Holt on the The bill of complaint names Kirchman, former Keeler, president of the bank who now the state penitentiary Kirchanother official in the bank. The document alleges that April interest in stock and equipment was purthe Kirchmans for chased and the title made although title individual, the money and that the therefore belongs to the property institution The petition declares that Keeler part of the disposed stock and that he refused accounting and recognize claim of the bank.


Article from The Omaha Evening Bee-News, September 20, 1930

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Bank Receiver Sues Kirchmans LINCOLN Sept. 20, O'Neal, receiver the failed Saunders County National bank at Wahoo, filed suit in federal court here Friday against Kirchman, H. Kirchman and Ora Keeler, charging priation O'Neal asked for half Interest in livestock and machinery farm in Holt county Kirchman, the bank, now serving long term the penitentiary His nephew also was an official the O'Neal said the Kirchmans bought Keeler's property and tained title their own names, using the bank's money.


Article from The Omaha Morning Bee-News, September 20, 1930

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Bank Receiver Sues Kirchmans LINCOLN, Sept. 19, (P)-H. O'Neal, receiver of the failed Saunders County National bank at Wahoo, filed auit in federal court here Friday against F. Kirchman, W. H. Kirchman and Ora Keeler, charging misappropriation of $9,000. O'Neal asked for a half interest in livestock and machinery on Keeler's farm in Holt county. F. J. president of the bank, is now serving long term in the penitentiary. His nephew also was an official of the bank. O'Neal said the Kirchmans bought Keeler's and obtained title to in their own names, using the bank's money.


Article from Lincoln Journal Star, November 11, 1930

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BANK RECEIVER SUES SIX H. C. O'Neal, in Charge at Wahoo, Is After Checks, Notes, Assessment. H. C. O'Neal, receiver for the Saunders County National bank at Wahoo, filed six suits Tuesday morning in federal court against stockholders and customers of the bank. One is to collect 100 per:ent stock four to collect on notes and one to collect on checks refused by other banks. The defendants and causes of action are: seven $675 $414 note. State and cashed and then by Ferdinand Pacal, $1,000 note.


Article from Lincoln Journal Star, November 12, 1930

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BANK RECEIVER SUES SIX H C. O'Neal, in Charge at Wahoo, Is After Checks, Notes, Assessment. H. C. O'Neal, receiver for the Saunders County National bank at Wahoo, filed six suits Tuesday morning in federal court against stockholders and customers of the bank. One is to collect a 100 percent stock assessment, four to collect on notes and one to collect on checks refused by other banks. The defendants and causes of action are: Helen Podhiasky, Wahoo, assessment seven shares Neison, of stock, $200 $700. Gust note. $675 $414 note. and $73 cashed and then refused $185, $77 Ferdinand Pacal, $1,000 note.


Article from The Independent, November 13, 1930

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Bank Receiver Sues the ONeal receiver for the Saunders National Bank at County 17th Wahoo, filed six suits Tuesday in federal court against morning Attys, customers of the and Petition collect 100 bank. One Bliss, four to stock Bostrom. and one to collect notes in the other banks. The checks refused by thereon of action are and causes from Podhaisky, Wahoo, Helen action. shares of stock, on seven Charles $700. McCowen, Gust note. Tracy, note. Lincoln Lindquist, $414 note. Nellie checks Decree cashed and then State bank. Touhy note. Kouma, Ferdinand Pacal, $1,000 Mrs. Lehmkuhl and family to the with Mrs. Sunday spend their leaving time Schwab before Fred the winter with California. Lundberg made Omaha Tuesday Lundberg him all dinner guests


Article from The News Cedar Bluffs Standard, November 20, 1930

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PICKETT, Publisher Subscription $1.50 the year COUNTY SEAT NEWS. Wasp) County Court Josephine Nelson has filed tition for Probate of Will in the Matter of the Estate of Gust Nelson who died Oct. 30. 1930, asking that Lawrence Nelson, son be appointExecutor. Hearing is set for Thursday, December 14 at M. H. Barry, Atty. Districit Court Bessie Olive Wickham has filed Petition for divorce against Lee Owen Wickham, stating that they were married at Beatrice, Nebraska June 22. and that-one boy, Bobby the issue of said marriage. titioner alleges cruelty and non-support. Richard C. Neissner, Atty for A Petition was filed by John Gross against Frank Lehmkuhl judgment on an account the sum of together with Interest thereon at per cent from the 17th day of May 1929, and costs of action. Slama and Attys, for Plaintiff Petition was filed by Clarence G. Bliss, Receiver against Axel Bostrom. asking judgment on notes in the sum of $2339.37, with interest thereon at the rate of 10 per cent from September 20. 1930, and costs of action. E. Schiefelbein. Charles Harlin vs. William McCowen, et Quiet Title Report confirmed. Lincoln Trust Co., Corp.. Nellie A. Fike. et al. Foreclosure Decree of Foreclosure. Adolph H. Thege Rudolph answer. R. Smith as Supt. W. C. Kirchman Co., Corp. Stockholders Lia bility. Defendants allowed additional time to Smith as Supt. VS. W. H Kirchman. On Note. Defendant allowed 15 days to answer. Bank Dividend trustee of the depositor's committee State Bank mailed out dividend checks for 20 per cent the past week. This makes 60 percent payment. Bank Receiver O'Neal Sues Six C. O'Neal, receiver for the Saunders County National Bank Wahoo. filed six suits Tuesday morning in federal court against stockholders and customers of the bank. One is to collect 100 per cent stock assessment, four to lect on notes and one to collect on checks refused by other banks. The defendants and causes of action are Helen L. Podhaisky, Wahoo. assessment on shares of stock. $700. Mrs. Gust Nelson, $200 note. E. Tracy, $675 note. M. Lindquist, $414 note Emil Ohnoutka, checks $185. $77 and $73 cashed and then reTouhy State bank. Ferdinand Pacal.


Article from The Lincoln Star, April 11, 1931

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Restraining Order Stops State Officer Clarence Bliss Receiver Prevented From Kirchman Property in The national receiver the round the battle and state bankthe property Frank Kirchman, of the defunct Kirchman group of banks in Sauncounty, Saturday when Federal Judge Munger issued temporary restraining order which been scheduled for Monday by the state Cronkleton. receiver of the bank, filed the petition the order. named Bliss, receiver Kirchman's state banks, the Saunders county sheriff Wahoo defendants. Cronkleton also filed petition asking now serving term the state adjudged Claims which bankrupt. Claims which based were Balance personal note Saunders County National bank. note Frank Dolezal, note to Frank Simodynes, $3,- An act of bankruptcy was comwhen Kirchman permitted Bliss secure judgment against in judgment Bliss the three lots in Wahoo belonging to Kirchman.


Article from Omaha Sunday Bee-News, April 12, 1931

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FAILED BANK SALE HALTED LINCOLN. April 11. (P)-A nafional bank receiver Saturday won the first round of the contest between federal and state banking officials in the attempt to seize and sell the property of Frank Kirchman, president of the defunct group banks in Waboo, when Federal Judge Munger issued a temporary restraining order to prevent sheriff's sale which had been scheduled for Monday by the state receiver. George G. Cronkleton, receiver of Saunders County National bank. filed the petition for the restraining order, and named Clarence G. Bliss, of Kirchman's state banks, the Saunders county sheriff and two Wahoo lawyers as also filed petition asking that Kirchman. ho now serving 60 years in the penitentiary for embezzlement. be adjudged an involuntary bankrupt.


Article from Omaha World-Herald, April 12, 1931

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National Bank Receiver Wins in First Skirmish Lincoln, Neb., April national bank receiver today round of contest between the first federal and state banking officials to seize and sell the attempt of Frank Kirchman, property president of defunct group of Wahoo, when Federal banks in Judge Munger issued tem porary restraining order to prevent sheriff's which had been sale, scheduled for Monday George Cronkleton, receiver the Saunders County National bank, filed the petition for the straining order, and named Clarence Bliss, receiver of Kirchman's state banks, Saunders county sheriff and two Wahoo lawyers as defendants. Cronkleton also filed a petition asking that Kirchman, who is now serving 55-year term in the state penitentiary for be adjudged involuntary bankrupt.


Article from The Omaha Morning Bee-News, January 6, 1932

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SUE KIRCHMANS WAHOO. Jan. Kirchman formerly president of the closed Saunders County Na. tional Joseph Bastar, David City, vice president Wencel H. Kirchman, cashier: Malcolm Anderson and Frank Kirchman assistant cashiers. and Max Kirchman and George have been named defendants in suit filed In federal court at Lincoln by George Cronkleton, receiver of the bank for judgment against the directors for money lost in crash. with the exception of manek. are charged with misconduet. Simanek is charged with negligence in failing to attend director meetings and observe the bank books. The receiver lists number of notes which he says were carried assets when they were owned by persons outside of the bank had been paid in full. Loans in excess of the legal amount are alledged to been made. Frank J. Kirchman Max Kirchman and Wencel H. Kfrehman are penitentiary sentences with the bank's Max and Wencel are nephews of the elder Kirchman.