Farmers & Merchants Bank

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: December 1, 1923*
Location: Walton, Nebraska (40.799, -96.562)

Metadata

Model: gpt-5-mini
Short Digest: 4697f76e

Response Measures

None

Description

Article (Dec 28, 1923) describes the Farmers & Merchants Bank of Walton as already closed with a receiver appointed after a cashier (L. A. Berge) committed a defalcation and disappeared. No run is mentioned; failure appears driven by embezzlement/insolvency and resulted in receivership.

Events (2)

1. December 1, 1923* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Cashier L. A. Berge committed a defalcation, disappeared, and was a fugitive from justice; bank closed thereafter.
Newspaper Excerpt: Receiver Whitney of the closed Farmers and Merchants bank of Walton, this county, has filed a brief in the supreme court
Source: newspapers

2. December 28, 1923 Receivership

Newspaper Excerpt: Receiver Whitney of the closed Farmers and Merchants bank of Walton ... has filed a brief in the supreme court, denying that any liability under the deposit guarantee act exists ... the lower court held in favor of the receiver, and the guarantee company appealed. (Omaha Morning Bee, Dec. 29, 1923; dateline Lincoln, Dec. 28.)
Source: newspapers

Newspaper Articles (1)

1. December 29, 1923 The Omaha Morning Bee Omaha, NE

Article from The Omaha Morning Bee, December 29, 1923

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Article Text

Receiver Files Appeal in Walton Bank Case Lincoln, Dec. 28.-Receiver Whitney of the closed Farmers and Mer. chants bank of Walton, this county, has filed a brief in the supreme court, denying that any liability under the deposit guarantee act exists with respect to the claim of the United States Fidelity and Guarantee company for $7,594. The bank was operated by L. A. Berge, cashier. He was also the administrator for the estate of William Schultz, and as such there came into his hands the sum of $5,854. He deposited' it in the, bank to his credit as administrator, and the next day drew it out. What he did with it is not revealed. Berge disappeared and is now a fugitive from justice. The surety company made good the defalcation and now seeks to hold the bank and state guarantee fund responsible. on the ground that the bank knew of Berge's defalcation, Berge, it says, being to all intents the bank itself. The lower court held in favo rof the receiver, and the guarantee company appealed.