17621. First National Bank (Eureka, SD)

View Charter #11527 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
11527
Charter Number
11527
Start Date
August 11, 1920
Location
Eureka, South Dakota (45.769, -99.620)

Metadata

Model
gpt-5-mini
Short Digest
8512013f0461b57b

Response Measures

None

Receivership Details

Depositor recovery rate
59.1%
Date receivership started
1920-08-20
Date receivership terminated
1932-06-01
OCC cause of failure
Fraud
Share of assets assessed as good
77.0%
Share of assets assessed as doubtful
19.7%
Share of assets assessed as worthless
3.3%

Description

The First National Bank of Eureka failed following the suicide (Aug 11, 1920) of its president Christian Vorlander and disclosure of large misappropriations. A receiver (Paul C. Keyes) was appointed and the bank remained defunct; receiver distributed dividends and pursued suits. No newspaper text describes a depositor run prior to suspension — failure was driven by bank-specific adverse information (fraud/misappropriation). Recording/assignment to the receiver appears in notices dated Jan 17, 1921. OCR noise corrected (e.g., Vorlander and dates).

Events (5)
1. November 28, 1919 Chartered
Source
historical_nic
2. August 11, 1920 Suspension
Cause
Bank Specific Adverse Info
Cause Details
President Christian Vorlander committed suicide (Aug 11, 1920) after long-continued secret conversion/misappropriation of bank funds; discovery precipitated bank failure and suspension.
Newspaper Excerpt
suicide of its president, Chris Vorlander, and the disclosure of his alleged enormous misappropriation of the funds of the bank.
Source
newspapers
3. August 20, 1920 Receivership
Source
historical_nic
4. January 17, 1921 Receivership
Newspaper Excerpt
assigned by William M. Mitchell ... to Paul C. Keyes, Receiver of the First National Bank of Eureka, South Dakota, which said assignment was duly filed ... on the 17th day of January, 1921, ... and duly recorded in Book 56 of Mortgages at page 72 will be foreclosed ... PAUL C. KEYES, Receiver of the First National Bank of Eureka, South Dakota, Assignee of the Estate of Mortgagee . (record notices). Also: Paul C. Keyes, receiver for the comptroller ... is distributing a 30 per cent dividend. (Feb 5, 1921). (Note: appointment/receiver active by Jan 17, 1921 and distributing dividends by Feb 1921.)
Source
newspapers
5. February 5, 1921 Other
Newspaper Excerpt
RECEIVER PAYS BANK CREDITORS SUM $250,000 DISTRIBUTED IN CONNECTION WITH FAILURE EUREKA BANKING CONCERN. ... Paul C. Keyes, receiver ... is distributing a 30 per cent dividend. Checks are being mailed out this week. (Madison Daily Leader, Feb 5, 1921). This documents distribution of dividends to creditors; not a reopening.
Source
newspapers

Newspaper Articles (10)
1. October 1, 1920 The Mellette County Pioneer White River, Wood, SD
Article from The Mellette County Pioneer, October 1, 1920

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Article Text

will not be surpassed in the } lills, and will be a rival of the Belt line from Deadwood ead. The new highway, which reality be a connecting link veen the Denver-Deadwood Tria road and the state park road. onnect with the Triangle road at outhern extremity of Sylvian hich now, as is generally known to the state of South Dakot There is no teacher shortag outh Dakota any more, said Fre haw, state superintendent of ins on his visit to the Minne ounty Teachers' institute. Th ointed to as something of a con the situation just a year ago 1 Shaw at the big educational erence in Sioux Falls stated outh Dakota needed 1,000 tea made a plea for better sal better conditions. A sum aggregating $16,000 is under the direction of the alace committe this year in sta mammoth carnival to be he Iitchell from September 27 to 2. This is the largest sum pent in providing for the show steadily increased patronag outh Dakota people during past the committee to expend mont. A fine new engine, costing $1 been installed in the mun ight and power plant in Parker 1 ow has ample facilities for ears to come. The plant now ufficient capacity to furnish al ower needed for plants oper with electricity for power, and cient lights so the city will be o he best lighted in South Dakota Total assets of banks and companies in the state of Sout tota decreased $8,130,718.03, ai he two months' business period June 30 deposits in the bank $10,677,259.36, according to a ment made by the state depar banking and finance. Evidence that South Dakota I are shipping their stock earl; ear in order to avoid occurrence to last year when hundre ead of stock were lost in torms, is shown by the fact that ments exceed those of previous this season. Serious conditions exist in Spearfish valley and other sectic the Black Hills with reference t harvesting of the vegetable crop. armers are unable to secure help and vegetables of all going to waste because of this lition. Captain Guy P. Squires, well k generally loved by South D service men, has accepted the po advisor of the 200 rehabilit assigned to State college b overnment for special voca raining this year. The state banking departmen uthorized the Guarantee State begin business at Eureka. TI take the place of the Nat ank, which failed at that place weeks ago. At a recent special election the of the Egan and four adjo chool districts voted to conso one district, with a central S building in Egan. Now steps ar taken to erect the buildings. The business men of Agar and have purchased the Agar

2. February 5, 1921 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, February 5, 1921

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Article Text

RECEIVER PAYS BANK CREDITORS SUM $250,000 DISTRIBUTED IN CONNECTION WITH FAILURE EUREKA BANKING CONCERN. Aberdeen, Feb. 5.-A quarter of a million dollars is being distributed to depositors and other creditors of the First National bank of Eureka, which was thrown into the hands of t receiver upon the suicide of its president, Chris Vorlander, and the disclosure of his alleged enormous misappropriation of the funds of the bank. Paul C. Keyes, receiver for the comptroller of the treasury. who is in charge of the affairs of the bank, is distributing a 30 per cent dividend. This reaches a total of over $250,000. Checks are being mailed out this week. Several remittances have been received in Aberdeen by individuals and banks, for it has been reported that local banks suffered a loss among them of something like 125,000 when the Vorlander bank went smash last fall. Investigation of the affairs of the bank has disclosed increasingly wide ramifications of the long-continued secret conversion of the bank funds to his own purpose by Vorlander. Reputed to be one of the strongest banks of the state, the facts now disclosed indicated that it was a whited sepulchure of dissipated assets. When the president of the bank and the one man who controlled its every activity went into the cemetery and shot himself upon the grave of his daughter, the affairs of the bank had gotten into such a state of uncertainty that discovery was imminent and Vorlander took himself off. leaving others to suffer the consequences of his acts. Through the industry of Receiver Keyes the assets have been rounded up to the utmost. He has even been able to attach life insurance payments on policies held by the former president. These assets are all being converted as rapidly as possible to the benefit of the creditors of the bank. It is reported that additional dividends will be forthcoming as other assets are realized upon.

3. June 22, 1921 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, June 22, 1921

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Article Text

Liability of Reserve Bank for Losses by Failures in Court Sioux Falls. S. D., June 21. The question as to whether a federal reserve bank is liable for any losses when it acts as a clearing house for other banks that fail was at issue Tuesday in the case of the federal reserve bank of Minneapolis against receivers of the First National Bank of Eureka, S. D., in federal court. Attorneys in the case say the main point to be decided is whether a federal reserve bank is an agent or the owner of checks in the clearing. If the court finds it to be the owner, attorneys claim. it will be able to charge all checks to the account of the bank that failed, but if it proves to be the agent, it must stand its proportionate share of the losses.

4. March 20, 1922 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, March 20, 1922

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Article Text

Award Insurance To Debtors Minneapolis, March 20.-Distribution of $50,000 insurance left by Christian Vorlander, president of the defunct First National Bank of Eureka, S. D., who committed suicide on August 11, 1920, is the issue at stake in the suit of Paul C. Keyes, as receiver of the bank against Mrs. Emilie Vorlander, widow and four children of the bank president, which was heard in federal court here yesterday. The receiver, in his bill of complaint, asks that a pro rata interest in the insurance policies go to the bank on the grounds that premiums for the policies were paid out of funds of the bank.

5. May 11, 1922 Emmons County Record Linton, Williamsport, ND
Article from Emmons County Record, May 11, 1922

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Article Text

a27-mll County Auditor. NOTICE OF REAL ESTATE MORTGAGE FORECLOSURE NOTICE is hereby given that that certain mortgage made, executed and delivered by Oscar E. Muehlberg and Alma C. Muehlberg, his wife, Mortgagors, to Christian Vorlander, Mortga. gee, and which mortgage is dated the 9th day of January, 1917, and which was filed for record on the office of the Register of Deeds of Emmons County, North Dakota, on the 14th day of April, 1917, at the hour of 9:15 o'clock A. M. and recorded in Book 48 of Mortgages at page 184 and which said mortgage was thereafter and pursuant to an order of the County Court of McPherson County, South Dakota, a certified copy of which order was duly filed for record in the office of the Register of Deeds of Emmons County, North Dakota, on the 17th day of January, 1921, at the hour of 9:35 o'clock A. M. and recorded in Book 10 of Misc. Records at page 472 duly assigned by William M. Mitchell the July appointed, qualified and Acting Administrator with Will annexed or the estate of Christian Vorlander, deceased, to Paul C. Keyes, Receiver of the First National Bank of Eureka, South Dakota, which said assignment was duly filed in the office of the Register of Deeds of said Emmons County, on the 17th day of January, a. 11. 1921, at the hour of 9:40 o'clock A. M. and duly recorded in Book 56 of Mortgages at page 72 will be foreclosed by a sale of the premises in said mortgage and hereinafter described at the front door of the court house in the City of Linton, County of Emmons, and State of North Dakota, on 3 17th day of June. A. D. 1922, at the hour of twelve o'clock noon to satisfy the amount due on said mortgage at the date of sale. The premises descr* ed in said mortgage and which will be sold to satisfy the same are described as follows, to-wit: All of Section Twelve (12), in Town. ship One Hundred Thirty-four (134), North of Range Seventy-seven (77) West of the Fifth Principal Meridian in Emmons County, North Dakota. There will be due on said mortgage at the date of sale the sum of Twelve Thousand and Twenty-Eight and 80100 Dollars ($12,028.80), together with the costs of this foreclosure. Dated this 8th day of May, 1922. SCOTT CAMERON, Attorney for said Assignee, Bismarck, North Dakota. PAUL C. KEYES, Receiver of the First National Bank of Eureka, South Dakota, Assignee of the ma11-Ju15 Estate of Mortgagee,

6. May 18, 1922 Emmons County Record Linton, Williamsport, ND
Article from Emmons County Record, May 18, 1922

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# ICE OF FORECLOSURE OF REAL ESTATE MORTGAGE Notice is hereby given that that certain mortgage, made, executed and de-ed by Charles E. Richardson and Anna Richardson, his wife, mortga-gee, to James C. Nelson, mortgagee, said mortgage is dated the 1st day of December, 1920, and was filed for record in the office of the Register of Deeds of Emmons County, North Dakota, on the 8th day of February, 1921, at 2:05 o'clock P. M., and was duly recorded in Book 62 of Mort-gages, on Page 34; and which mort-gage was, thereafter assigned to Chris-Nelson by an instrument in writ-ing bearing date the 6th day of March, 1922, and filed for record in the office of the said Register of Deeds of Em-mons County, North Dakota, on the 7th day of March, 1922, at 2:50 o'clock P. M., and recorded in Book 58 of Mort-gages, on Page 510; will be foreclosed by a sale of the premises in said mortgage and hereinafter described at the front door of the Court House in the City of Linton, in the County of Emmons, and State of North Dakoa, on the 17th day of May, 1922, at the hour of two o'clock P. M., to satisfy the amount due on said mortgage at the date of sale. The premises described in said mortgage and which will be sold to satis-fy the same are described as follows, to-wit: South half (S½) of the North half (N½) and the North half (N½) of the South half (S½) of Section thirty-four (34) in Township one hundred thirty-two (132) North, Range seventy-nine (79) West of the 5th P. M., Emmons County, North Dakota. Said default having occurred in the con-ditions of said mortgage by reason of mortgagors failure to pay the interest due thereunder and having failed to pay the interest on a prior mortgage and also the taxes, and the assignee of said mortgagee hereby elects to declare the whole sum secured by said mort-gage was duly filed for record in the office of the Register of Deeds of Emmons County, North Dakota, on the 17th day of January, 1921, at the hour of 9:35 o'clock A. M. and recorded in Book 10 of Misc. Records at page 472 duly assigned by William M. Mitchell the duly appointed, qualified and Acting Administrator with Will annexed of the estate of Christian Vorlander, de-ceased, to Paul C. Keyes, Receiver of the First National Bank of Eureka, South Dakota, which said assignment was duly filed in the office of the Register of Deeds of said Emmons County, on the 17th day of January, A. D. 1921, at the hour of 9:40 o'clock A. M. and duly recorded in Book 56 of Mortgages at page 72 will be fore-closed by a sale of the premises in said mortgage and hereinafter described at the front door of the court house in the City of Linton, County of Emmons, and State of North Dakota, on the 17th day of June, A. D. 1922, at the hour of twelve o'clock noon to satisfy the amount due on said mortgage at the date of sale. The premises described in said mortgage and which will be sold to satisfy the same are described as fol-lows, to-wit: All of Section Twelve (12), in Town-ship One Hundred Thirty-four (134), North of Range Seventy-seven (77) West of the Fifth Principal Meridian in Emmons County, North Dakota. There will be due on said mortgage at the date of sale the sum of Twelve Thousand and Twenty-Eight and 80-100 Dollars ($12,028.80), together with the costs of this foreclosure. Dated this 8th day of May, 1922. SCOTT CAMERON, Attorney for said Assignee, Bismarck, North Dakota. PAUL C. KEYES, Receiver of the First National Bank of Eureka, South Dakota, Assignee of the Estate of Mortgagee. mall-Ju15

7. June 1, 1922 Emmons County Record Linton, Williamsport, ND
Article from Emmons County Record, June 1, 1922

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NOTICE OF REAL ESTATE MORTGAGE' FORECLOSURE NOTICE is hereby given that that certain mortgage made, executed and delivered by Oscar E. Muehlberg and Alma C. Muehlberg, his wife, Mortgagors, to Christian Vorlander, Mortga. gee, and which mortgage is dated the 9th day of January, 1917, and which was filed for record on the office of the Register of Deeds of Emmons County, North Dakota, on the 14th day of April, 1917, at the hour of 9:15 o'clock A. M. and recorded In Book 48 of Mortgages at page 184 and which said mortgage was thereafter and pursuant to an order of the Court y Court of McPherson County, South Daketa, a certified copy of which order was duly filed for record in the office of the Register of Deeds of Emmons County, North Dakota, on the 17th day of January. 1921, at the hour of 9:35 o'clock A. M. and recorded in Book 10 of Misc. Records at page 472 duly assigned by William M. Mitchell the duly appointed, qualified and Acting Administrator with Will annexed of the estate of Christian Vorlander, deceased, to Paul C. Keyes, Receiver of the First National Bank of Eureka, South Dakota, which said assignment was duly filed in the office of the Register of Deeds of said Emmons County, on the 17th day of January, A. D. 1921, at the hour of 9:40 o'clock A. M. and duly recorded in Book 56 of Mortgages at page 72 will be foreclosed by a sale of the premises in said mortgage and hereinafter described at the front door of the court house in the City of Linton, County of Emmons, and State of North Dakota, on the 17th day of June. A. D. 1922, at the hour of twelve o'clock noon to satisfy the amount due on said mortgage at the date of sale. The premises described in said mortgage and which will be sold to satisfy the same are described as follows, to-wit: All of Section Twelve (12), in Town. ship One Hundred Thirty-four (134), North of Range Seventy-seven (77) West of the Fifth Principal Meridian in Emmons County, North Dakota. There will be due on said mortgage at the date of sale the sum of Twelve Thousand and Twenty-Eight and 80100 Dollars ($12,028.80), together with the costs of this foreclosure. Dated this 8th day of May, 1922. SCOTT CAMERON, Attorney for said Assignee, Bismarck, North Dakota. PAUL C. KEYES, Receiver of the First National Bank of Eureka, South Dakota, Assignee of the Estate of Mortgagee. ma11-Ju15

8. June 8, 1922 Emmons County Record Linton, Williamsport, ND
Article from Emmons County Record, June 8, 1922

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NOTICE OF REAL ESTATE MORTGAGE FORECLOSURE NOTICE is hereby given that that certain mortgage made, executed and delivered by Oscar E. Muehlberg and Alma C. Muehlberg, his wife, Mortgagors, to Christian Vorlander, Mortga. gee, and which mortgage is dated the 9th day of January, 1917, and which was filed for record on the office of the Register of Deeds of Emmons County, North Dakota, on the 14th day of April, 1917, at the hour of 9:15 o'clock A. M. and recorded in Book 48 of Mortgages at page 184 and which said mortgage was thereafter and pursuant to an order of the County Court of McPherson County, South Dakota, a certified copy of which order was duly filed for record in the office of the Register of Deeds of Emmons County, North Dakota, on the 17th day of January, 1921, at the hour of 9:35 o'clock A. M. and recorded in Book 10 of Misc. Records at page 472 duly assigned by William M. Mitchell the duly appointed, qualified and Acting Administrator with Will annexed of the estate of Christian Vorlander, deceased, to Paul C. Keyes, Receiver of the First National Bank of Eureka, South Dakota, which said assignment was duly filed in the office of the Register of Deeds of said Emmons County, on the 17th day of January, A. D. 1921, at the hour of 9:40 o'clock A. M. and duly recorded in Book 56 of Mortgages at page 72 will be foreclosed by a sale of the premises in said mortgage and hereinafter described at the front door of the court house in the City of Linton, County of Emmons, and State of North Dakota, on the 17th day of June, A. D. 1922, at the hour of twelve o'clock noon to satisfy the amount due on said mortgage at the date of sale. The premises descroed in said mortgage and which will be sold to satisfy the same are described as follows, to-wit: All of Section Twelve (12), in Township One. Hundred Thirty-four (134), North of Range Seventy-seven (77) West of the Fifth Principal Meridian in Emmons County, North Dakota. There will be due on said mortgage at the date of sale the sum of Twelve Thousand and Twenty-Eight and 80100 Dollars ($12,028.80), together with the costs of this foreclosure. Dated this 8th day of May, 1922. SCOTT CAMERON, Attorney for said Assignee, Bismarck, North Dakota. PAUL C. KEYES, Receiver of the First National Bank of Eureka, South Dakota, Assignee of the ma11-Ju15 Estate of Mortgagee.

9. June 15, 1922 Emmons County Record Linton, Williamsport, ND
Article from Emmons County Record, June 15, 1922

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NOTICE OF REAL ESTATE MORTGAGE FORECLOSURE NOTICE is hereby given that that certain mortgage made, executed and delivered by Oscar E. Muehlberg and Alma C. Muehlberg, his wife, Mortgagors, to Christian Vorlander, Mortgagee, and which mortgage is dated the 9th day of January, 1917, and which was filed for record on the office of the Register of Deeds of Emmons County, North Dakota, on the 14th day of April, 1917. at the hour of 9:15 o'clock A. M. and recorded in Book 48 of Mortgages at page 184 and which said mortgage was thereafter and pursuant to an order of the County Court of McPherson County, South Dakota, a certified copy of which, order was duly filed for record in the office of the Register of Deeds of Emmons County, North Dakota, on the 17th day of January, 1921, at the hour of 9:35 o'clock A. M. and recorded in Book 10 of Misc. Records at page 472 duly assigned by William M. Mitchell the duly appointed, qualified and Acting Administrator with Will annexed of the estate of Christian Vorlander, deceased, to Paul C. Keyes, Receiver of the First National Bank of Eureka, South Dakota, which said assignment was duly filed in the office of the Register of Deeds of said Emmons County, on the 17th day of January, A. D. 1921, at the hour of 9:40 o'clock A. M. and duly recorded in Book 56 of Mortgages at page 72 will be foreclosed by a sale of the premises in said mortgage and hereinafter described at the front door of the court house in the City of Linton, County of Emmons, and State of North Dakota, on the 17th day of June, A. D, 1922, at the hour of twelve o'clock noon to satisfy the amount due on said mortgage at the date of sale. The premises described in said mortgage and which will be sold to satisfy the same are described as follows, to-wit: All of Section Twelve (12), in Town. ship One Hundred Thirty-four (134), North of Range Seventy-seven (77) West of the Fifth Principal Meridian in Emmons County, North Dakota. There will be due on said mortgage at the date of sale the sum of Twelve Thousand and Twenty-Eight and 80100 Dollars ($12,028.80), together with the costs of this foreclosure. Dated this 8th day of May, 1922. SCOTT CAMERON, Attorney for said Assignee, Bismarck, North Dakota. PAUL C. KEYES, Receiver of the First National Bank of Eureka, South Dakota, Assignee of the ma11-Jul5 Estate of Mortgagee.

10. June 30, 1922 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, June 30, 1922

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DEAD BANKER'S HEIRS LOSE OUT BULK OF CHRIS. VORLANDER'S INSURANCE MONEY GOES TO CREDITORS. Aberdeen, June 30-Out of the $50,000 insurance policies on the life of Chris oVlander, late president of the First National - bank or Eureka, the creditors of the defunct bank will get slightly more than $25,000. This is the word to Receiver Paul Keyes from the United States district court at Minneapolis, where Judge Page Moris has just filed his decision in the celebrated Vorlander insurance cases. The suits were against the widow, Mrs. Irene Ziesmer, daughter, and W. M. -Mitchell, guardian of three minor children. The policies were $30,000 for the widow and $5,000 each for the children. The companies have paid and the money was tied up pending litigation. Use of the bank funds by Vorlander in paying premiums was set up by the receiver as grounds for demanding prorata proceeds of the policies and the court has awarded him all but $2,000 of what he asked. Receiver Keyes has just started suit against the Union Investment company, of Minneapolis, for $29,858 and against the State bank of Chicago, for $38,000. These are two of numerous other suits which are to be filed in similar cases. They are charged with having taken the bank's money in payment of Vorlander's personal obligations in such form that they were charged with notice that it was the bank's money. Out of the proceeds that have been collected thus far the receiver has paid a dividend of 30 per cent to depositors and other creditors of the bank, amounting to $270,000.