27-0057South Omaha Bank Closes Its Doors OMAHA, Aug. South Omaha State bank. with capand deposits mately $1,000,000 has been turned over the dpartment trade comliquidation, was here night. The South Omaha bank the third Omaha bank close the past week. The State Bank Omaha closed Monday. "Freczing" of the Farmers and Merchants Benson. suburb Omaha, the State Bank of Omaha, forced the Benson bank to close.
Great Galaxy of Auto Race Leaders File Entries for Adams County Fair.
That speed fans of this section will see action next Tuesday the largest, fastest field of dirt track and speedway. stars lined up in the state of Nebraska was prediction brought forward today by Elliott R. Davis, secretary of the Adams county fair, following check of the drivers now entered in the fair opening races. Entrance blanks graced with signatures of mere than dozen outstanding pilots, many of them nationally known figures in the world of speed, gave an air of ver acity to Davis, prophecies that an afternoon of record shattering per formances in store for Until last week." Secretary declared today, "we had no idea that our plan to hang up purse money averaging $40 mile would attract national attention among race Certainly we did not expect it would bring us entries and inqui. 'es from money winners in the famous 500 mile race at In dianapolis.
Russo to Drive But it did. Already Joe Russo, the big Italian star from Indianapolis who kept pace with the leade.s in the speed classic last spring until triple crack ahead of him foreed his withdrawal near the close of the contest, has filed his entry and promised that he will be on hand Tuesday afternoon. Another speedway star who sur vived the strenuous qualifying trials to be one of the seventeen eligible to compete for auto racing's richest purse has shown desire to come to Hastings if he can be as sured adequate guarantee COV er the cost of bringing his super charged Deusenberg from Indiana to Nebraska. Fair officials here are inclined accede to his request for guarantee, Secretary Davis ex plained, but definite announcement concerning his entry was withheld pending completion of negotiations between the two parties to Secretary Davis, together with host of racing fans the city, is confident that the coming of Russo and one two other of the better known speedway stars will mark the end of Emory "Spunk" Collins' supremacy on the Hastings course To prevent the former Canadian from scoring third consecutive easy the fair associa tion, he says, has boosted purse money and done everything possi ble to bring together the strongest field of the history of the exposition. If Collins can be soundly beaten here next Tuesday. Davis predicts real revival of interest in auto racing in Hastings Competition Keen But whether the speedway driv conquer Collins or not, Davis believes there are several of the dirt track stars now entered who furnish the toughest kind of oppo sition. Among these are Fred Dressel huys, South Dakota's favorite son candidate for national champion one victory against him this season; Rex Edmonds of San Antonio, Tex will be at the wheel of his supercharged Miller special: Shano Fitzgerald of Chicago and Don Lopez, the Cuban flash who arrived in Hastings yesterday his Hispano-Suez racing creation.
WALTONIANS HEAR HAMMOND
McCOOK, Neb., Aug. 14.-(U.P)Sportsmen of southwestern Nebraska gathered here last night for discussion of plans of the Izaak Walton League by James G. Hammond of Chicago, field representative of the Senator Kenneth S. Wherry of Pawnee City. chairman of the fish and game committee of the senate and sponsor of number of measures at the last legislative ses. sion, relating to conservation of game, pledged his support to the advancement of the principles of the league.
WOULD RE-OPEN BANK
OMAHA, Aug. ceiver not be appointed by State Receiver E. H. Luikart until the audit of the books of the State Bank of Omaha has been completed. cause its reserve on deposit at the State Bank are expected approved at meeting of depositors tonight. Those in charge of the reorganization work said sentiment in Benson is practically unanimous for early reopening of the bank.
Union State Closes But Expects to Reopen Soon.
Aug. 15 (AP) The Union State bank of Omaha pended business today treat all patrons as fairly possible,' officials Plans are being formulated to re-open at an early date. and in the meantime the state department trade and commerce charge On June 30. the time of its last bank had deposits and The Union State bank the fourth Omaha within the past week. The State bank Omaha and the Farmers Merchants bank Benson closed Monday and the South Omaha State bank closed yesterday Statement by Woods. George Woods, state issued statement regarding the Union State bank "The Union State bank of Omaha suspends business today. The partment of trade and taken charge to conserve assets and protect interests Examiner Lau in charge. Horacek president of the bank. states that suspension three other in the durhas unprecedented withdrawals. which could not immediately withstood To treat all patrons fairly as possideemed best to suspend 'Plans are being worked upon to reopen the bank early date.' Reserve According to Joseph Votava, attorney for the there heavy Monday after the State bank but dwindled daily until vesterdav. Then. after closing South Omaha State bank there the another heavy run the was cut below the legal reserve limit State officials later today revealed that resources the four banks closed this week totaled compared total of all Omaha banks.
Governor's Statement An official issued from the office Saturday foresaid that the Union State of Omaha had been taken the state departover ment the quest its officers and directors Horacek was president Jacob Horacek vice president, and Emil cashier The bank had deposits of about million but had experienced
in
Union State Last Institution Suspend iness
CAPITAL OF $200,000
Deposits Over the Heavy Withdrawals Closing Three Other Banks Cause for
Crash.
Omaha, and excited crowds intent on their savings, the leadbanks Omaha today tossed the regular Saturday closing hour of noon, discard would remain open throughout the day satisfy depositors wishing withdraw their funds. The upon the banks started full fury today with that the Union State Bank Omaha had closed safeguard depositors." the fourth bank Omaha to close since Monday created by the three previous closing blamed for closing Union State bank the closbanks members of the State Bank With the announcement that the larger banks were prepared meet plenty cash hand, crowds milling about entrances thinned little and the tension seemed broken.
Aug Union State Bank Omaha suspended today treat all patrons fairly possible, officials being re-open early date, and the state department trade and commerce On June the time of its last the bank deposits of capitalized $200,and had surplus of $40,000. Union State bank the fourth Omaha bank close within the past State Bank of Omaha and the Bank and the South Omaha closed yesterday. Aid Depositors George bank issued the following regarding Union State Union State Bank Omaha business The partment trade and commerce charge assets protect interests. Examiner charge president of the bank three banks the city during the could patrons fairly possible deemed payments being worked upon bank early According Joseph attorney the there Monday after closing State Bank Omaha, but withdaily until closing of the South Omaha State bank, there another the cash reserve below the legal
Fourth Institution Affected By Heavy With-
PLAN TO REOPEN AT EARLY DATE
OMAHA, Aug. 15. milling excited crowds intent on withdrawing their savings, the leading banks Omaha today tossed regular Saturday closing hour of noon, into the disand announced they would remain satisfy depositors wishing to withdraw their funds. The run upon the larger banks started in full fury early tothat Union State bank of Omaha had closed "to safeguard deposiIt was the fourth bank in Omaha to close since Monday. With the announcement that the larger banks were prepared meet the with plenty of cash on hand. the crowds milling about the entrances thinned tle and the seemed broken. Union State bank of Omaha pended business today. "to treat all patrons as fairly as officials announced. Plans being early date, and in the the state department of trade in charge. On June time last report, the bank had posits was capitalized at and had surplus of $40,000. Could Not Meet 'Run' The Union State bank the fourth Omaha bank close withthe week. The State bank past Omaha and the Farmers Merchants bank Benson closed Monday and the South Omaha State bank closed yesterday. George W. Woods, state bank issued the following statement regarding the Union State Horacek, president of the bank, states suspension three other banks in the city the week caused an during withdrawal run which could not be immediately withstood. To treat all patrons fairly possible was deembest to suspend payments."
1,000 At Meeting 15 imately persons met here last night for discussion of ways and means of reopening the mers Merchants bank of Benwhich closed last Monday after failure of the State bank of Omaha. Those in the Benson bank voted sign release to allot certain amount of the bank's deposits to be posted for use in building the legal reserve. State officials later today vealed that the the four this week totalas total resources Omaha banks.
H. Rodgers of Lincoln was visitor in the yesterday.
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5 OMAHA BANKS CRASH IN WEEK; OTHERS SHAKEN C.P. Calls on Small Depositors Organize OMAHA, Neb., Aug. 17. - Four banks crashed in one week's time. Two banks crashed Monday, Aug. 10, the State Bank of Omaha and the Farmers and Merchants Bank of Benson. The reason given for the failure was the shrinkage in value of the foreign bonds at the State Bank of Omaha. The Farmers and Merchants Bank reason was having deposits in the State Bank of Omaha. Friday, Aug. 14, the South Omaha State Bank closed and on Saturday, Aug. 15, the Union State Bank closed and the run on three other banks developed to the point where they had to keep open Saturday after their usual closing hours. The presidents of all the banks that have so far crashed are issuing reassuring statements, and yet it is being rumored that the depositors will lose at least 20 to 30 cents on a dollar. This is the biggest bank crash that Omaha has had since 1896. The three other banks of Omaha, the Omaha National, the First National and the U. S. National, are part of the Federal Reserve, and, because of that, the Omaha Clearing House Association is trying to stop runs on these banks, but hundreds of workers are demanding their deposits. In the last week, throughout the state of Iowa, four or five banks have failed and others are said to be very shaky. The Communist Party of Iowa and Nebraska issued a statement Saturday night demanding protection for the workers' deposits and is also demanding that they will be the preferred claims and that they shall be paid in full. Efforts are being made by the Communist Party of Omaha to organize a joint committee of workers who have deposits in the four banks with a committee of the banks where the run is going on at this time. A mass meeting for this purpose is being called for Thursday, Aug. 20, at Jefferson Park of this city. The South Omaha Savings Bank has just failed. This makes three banks in 48 hours. They are trying to stall the run on all the other banks by putting up free lunch counters, where they distribute sandwiches, coffee, pie and lemonade. Many people are standing in front of the crashed banks weeping and lamenting the fact that they have lost their savings.
Omaha Unrest Is Blamed
Six state banks, having deposits estimated to aggregate $1,120,000 voluntarily closed their doors Monday.
The closures, according to Governor Bryan who spoke for the state banking department, were "a direct result of the closing of the Union State Bank of Omaha." Closed Monday were the following state banking institutions: First State bank, Pleasant Dale. Dwight State bank, Dwight. Brainard State bank, Brainard. Bruno State Bank, Bruno. Butler County State bank, David City. Leigh State bank, Leigh. The closures announced Monday brought to a total of 10 the number of state banks which have closed their doors within as many days. All of the suspensions were said to have been brought about by the failure last Monday of the State Bank of Omaha, and the subsequent closing of Omaha's other three uptown state banks. Banking officials Monday expressed belief there would be little loss to depositors in the closures announced. They were voluntary, it was pointed out, and represented an attempt of banking officials to protect their depositors. ufacturing company last week, arrested four persons and confiscated 1,250 gallons of "liquid malt." The plant was located in the old Jetter Brewing company building. charges were filed, not because the liquid malt was sold but because an agent of the company told undercover men how to proceed to transform the malt into beer with a 4 to 8 per cent "kick." Hellerman said his company sold the malt in strictly legitimate channels and that he was not responsible if some persons took advantage of it and made beer of it by adding yeast and sugar. The malt is indispensable to bakeries and other legitimate users, he said. Those arrested were Hellerman and Carl Haase, shipping clerk, Miss Selma Kamrath, bookkeeper, and James Novak, brewmaster. Ten agents took part in the raid. Books of the company showed the malt had wide distribution throughout the state. The Jetter Brewing company quit operating some years ago and the Magic company rented a part of its building.
The Butler County State Bank of David City, Dwight State Bank, Bruno State Bank and Brainard State Bank Failed To Open for Business Monday Morning
David City received its first bank failure this week. We failure, say it may not be, however the Butler County State Bank failed to open up for business Monday morning. The failure of the Omaha State Bank which carried the reserve for these banks, closing last meek, thus making it hard for our county banks, and run on the bank starting Saturday afternoon, decided them to just lock the doors which they did and got in touch with George Wood, head of the state banking commission, who advised to stop paying and simply lock up awaiting results. This bank had been negotiating with the First National Bank for some time for merger, and that is now pending. In talk merger with Mr. Shramek, president of the Butler County State Bank, he formed us that the bank was solvent and in good shape, and had it not been for the run started Saturday would have been alright, but they not having enough cash to take care of heavy run which they were sure would start Monday morning, they concluded the best thing to do was to lock the doors until the matter of merging with he First National was either consummatel or rejected. In talking with Mr. John Brym, president of the First National, he forms me that this deal is still pending and they hope to get together sometime this week. The banks effected and closed are Dwight State Bank with deposits of around $180,000, J. Novak, president, G. Tomes, cashier; Brainard State Bank with deposits about Davis, president, Proskovec, cashier; Bruno State Bank, with deposits of about 000, Roh, president, Roh, cashier; Butler County State Bank, with deposits of about Joseph Shramek, president, Hav. elka, cashier. There was no attempt made to start run on any of the other banks which were all prepared to pay every dollar of deposits they had should such thing get going. We are liably informed that the Central Nebraska the City Naand the First National tional bank this absolutely solid Bank of city are able to take care of any and amply business either their way, backed in that comes the Federal Reserve Bank. is that if the present probable with the First National do no materialize saisfactorily that the State Bank will soon open for business Mr. Shramek says again. but had to take they are not broke, to the depositors this step protect the bank and will had in money be able take care of everything. to
E. H. LUIKART NAMED OMAHA BANK RECEIVER
E. H. Luikart, secretary of the state trade and department, was formally named receiver of the failed State Bank of Omaha an order signed Monday by District Judge Frank Dineen. His bond was set at $500,000.
E. H. LUIKART NAMED OMAHA BANK RECEIVER
E. H. Luikart. secretary of the state trade and commerce department. was formally named as receiver of the failed State Bank of Omaha through an order signed Monday by District Judge Frank Dineen. His bond was set at
Gets $5371.94 Present
The Security State Bank receiver got a Christmas present this week in the form of dividend check for $5471.94, which constitutes forty percent of the amount which the Security folks had on deposit in the State Bank of Omaha, now defunct. The amount constitutes percent of the total deposits, SO depositors know at least they will get that much.
An application for an order the district court designate depository bank for money hand also for authorization invest receivers' funds. was filed Saturday on behalf state, defunct banks in Douglas county. The panks are the South Omaha State, Pioneer State, Bank of Benson, German Bank of Mil Bennington CommerState, Security State, Citizens State, Ralston State and the State Bank of Omaha
(Short, timely letters current topics invited. Letters signed plume must accompanied by the name the editor's information. Many letters author, of their length. Be brief. short letter is the most because printed, to be read when printed. likely
Wrong ReferenWhat's June the Editor Omaha, The am terested amendosition for the recall judges, (of course) District Fred Shepherd's ruling truck license bill, denying the referendum. inside and thentic gality petitions believe condemnation his duct the and our judges none cision other just and the petitions sentiment secured hundreds went panhandling from house apiece doing the boys just school need funds What were Would been newspapers for know referendum conceived right Omaha Omaha the finding little mine the sulting the state found necessary lay put others on they and keep thing that huge road hogs increasing and over part tenance which is paid out railroad taxes LEO R.
Hard the Republican Conven on June the Editor Omaha, your radio nights columns following the the Rewouldn't William else hard the there convention that the labor unable Prosperity dinner and which those political appointments
Would Find Out Now Editor discussion bridge bridge really turned the years street during will hold the public holding time. the and the credit hand and the the company then the bridge the to and KNIEST. years
Conscience Cleared. June the letter an cents Stodden: No doubt you will be surprised get cents long time handed while attendchange. the Billy know ready to go at minute's notice. signed would no name like thank the sender through your paper letter know the money all resort Alexin the andria, live winter MRS. STODDEN. beauty steeped in Bank Stockholders' the Editor spend joyful, restful hours on Omaha June On deck. that our district satisfaction. hearing whether six and new lands court friends failed State home ment. come Bank of Omaha shall rejoicing that your settle their double the vacation Lakes Trip prime about them the amount required immeGREAT LAKES the Hall, the assistGeorge CORPORATION bank receiver immestate this bank diate charge protect the supposed Buffalo (Niagara testified the Sault Detroit, the Marie, Houghton, Duluth, Milwaukee. Luikart accepted. to the court that the For full information apply any Luikart ad- Tourist or Railroad Agent mitted the stand of to select the positors either called committee discuss the rejection the stockholders offer. by Mr. and Mr. they never taken from these stockholders seeking escape their double liabliity made investigation their financial standing fact, they mitted that thought some the larger ones were the witness stand that he thought the double liability unjust Luikart had particular reason for that might avoid some the the constiupheld by several Nebraska Mr Hall testified the witness stand depositors' settlement. He admitted that Schantz the bank, he picked out the deposisent names with his and state needs investigating about 200 worth together for five hundred dollars
Thinks Mistake Made in Closing Bank.
June the Editor The may good State Bank Omaha liquidated. bank this amount forced should the exceptions business could amount forced to close affairs. of this bank credit the state. forced banks credwhich resulted business inthe bank was under good able man misled. the state now winding its saved many an HENRY
Garden Clubs Grateful. Editor Omaha Garden Clubs wishes all express Omaha firms any making the ond annual such those for prizes. enter next reach exhibitors entertain COUNCIL OF GARDEN MRS FRED MRS LON DAN DUNHAM
Fines Pay for Editor law violators police Tacoma, pracNebraska Let's have them enforced and this the keep police vote reduce reduced half; absolutely
State Bank Receiver Sues on Eight Notes
E. H. Luikart receiver of the State bank of Omaha. closed last August, filed suit in district court Tuesday to collect on eight notes totaling $47,381. from Hugh H. Harper, real estate operator. The notes are secured by 50 thousand dollars of stock in the Real Estate Construction and Finance company.
E. H. Luikart. receiver for the State Bank Omaha, in petition filed Wednesday asked distriet court reduce his bond from He points out that the bank already has paid 65 per depositors, and reports he has $71,300 in cash on hand.
E. Luikart. receiver for the State Bank Omaha, tion filed Wednesday asked trict court to reduce his bond from He points that the bank already has paid 65 per depositors, and reports he has $71,300 in cash on hand.
SETTLE INDEBTEDNESS FOR $10,000 PROPERTY
District Judge Hastings signed order Monday ting State Bank Receiver Luikart compromise the Fay and Herbert Robinson to the funct State Bank Omaha for worth of hotel property
SETTLE INDEBTEDNESS FOR $10,000 PROPERTY
District Judge G. Hastings signed order Monday permitting State Bank Receiver E. H. Luikart compromise the $25.indebtedness Fay and Herbert Robinson to the defunct State Bank of Omaha for worth of hotel property
W. Robb, state bank examiner. Thursday morning took over the Union State bank at 19th and Farnam Sts. in what Merle Foster. assistant state banking superintendent at Lincoln, announced was first step to close the bank for final liquidation Foster was quoted by the Assoclated Press as saying part of the bank operating on an unrestricted basis will pay out in full, and that part operating on a restricted basis will be placed in receivership to complete liquidation The bank will continue to be operated by the hanking depart ment until liquidation is completRobb said The bank has $166,000 In new accounts, opened since November 1931, and all money in such accounts will be returned to depositors on demand, Robb said. In August, 1931, the bank was closed. during the same week that the State Bank of Omaha, the Benson State bank and the South Omaha State bank suspended operations. and was re-opened three months later Robb explained the department is seeking to get every state bank out from under restrictions, designed to protect depositors, or to liquidate the banks F. Horacek president of the bank since 1917 said the bank has 500 and that 78 per cent has been paid out on the old accounts number of old depositors, be said have opened accounts The bank is capitalized at
Unrestricted Operations Will Pay in Full, Official Says; Final Liquidation Predicted
R. W. Robb, state bank examIner, Thursday morning took over the Union State bank at 19th and Farnam Sts., in what Merle Foster. assistant state banking superintendent at Lincoln, announced was first step to close the bank for final liquidation Foster quoted by the Assoclated Press as saying part of the bank operating on an unrestricted basis will pay out in full, and that part operating on a restricted basis will be placed in receivership to complete liquidation. The bank will continue to be operated by the banking department until liquidation is completed. Robb said. The bank has $166,000 in new accounts, opened since November, 1931. and all money in such accounts will be returned to depositors on demand, Robb said. In August, 1931. the bank was closed, during the same week that the State Bank of Omaha. the Benson State bank and the South Omaha State bank suspended operations, and was re-opened three months later. Robb explained the department is seeking to get every state bank out from under restrictions, designed to protect depositors, or to liquidate the banks. F. C. Horacek, president of the bank since 1917. said the bank has 4,500 depositors, and that 78 per cent has been paid out on the old accounts. A number of old depositors, he said, have opened new accounts. The bank is capitalized at $200,000.
COURT HEARS ARGUMENT IN EIGHT BANK CASES
Lincoln, May 23. (AP)—The Nebraska supreme court today heard arguments simultaneously on eight cases involving suits of the receivers of the failed South Omaha and State banks of Omaha against the Massachusetts Bonding and Insurance company, arising out of the financial difficulties of Robert Z. Drake, former wealthy Omaha lumberman.
Court Awards Bank Receivers $11,000
Receivers for the defunct State Bank of Omaha and the South Omaha State bank will benefit more than $11,000 as the result of a decision by the state supreme court at Lincoln Tuesday, according to Associated Press dispatches.
The court ruled in favor of E. H. Luikart, state receiver for failed banks, in eight suits against the Massachusetts Bonding & Insurance Co. for nonperformance of contract obligations of Robert Z. Drake, former Omaha lumberman.