Pioneer State Bank (Omaha, NE)

Episode Information

Episode UID
27006471460
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
2700647 routing
Routing Number
27-0064
Start Date
August 10, 1921
Location
Omaha, Nebraska (41.259, -95.938)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
730eee0e463cd75a

Response Measures

None

Description

Failure led to receivership (articles refer to 'defunct' bank and receiver).

Events (3)
1. August 10, 1921 Receivership
Newspaper Excerpt
defunct Pioneer State bank of Omaha ... into the hands of receivership August 10, 1921.
Source
newspapers
2. August 10, 1921 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure following bad investments and worthless land titles; alleged embezzlement and fraudulent entries involving affiliated Guaranty Securities company.
Newspaper Excerpt
into the hands of receivership August 10, 1921.
Source
newspapers
3. May 6, 1922 Other
Newspaper Excerpt
federal grand jury ... returned a blanket indictment against 25 men ... in connection with the failures ... the Pioneer State bank of Omaha
Source
newspapers

Newspaper Articles (6)
1. July 26, 1921 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, July 26, 1921

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Article Text

Securities Co. Is Declared Bankrupt Federal By Receiver Named for concern Involved in Pioneer Bank Failure-Land Titles Found Worthless. The Guarantee Securities Investment company, involved in bad investments with the defunct Pioneer State bank of Omana, was declared bankrupt yesterday by Federal Judge Woodrough. F. E. Sheehan is receiver. The last hope to save the Securities company from going to the wall collapsed when title to 147,000 acres of West Virginia land, for which $260,000 in bonds was held by the Pioneer bank, was found to be worthless. F. H. Gaines, representing the receiver for the Pioneer bank; R. A. Mulfinger, for the Securities company, and Judge E. P. Holmes of Lincoln, representing Lincoln stockholders, returned Sunday from Charlestown, W. Va., where they investigated the land titles and brought back the report. Title Worthless. "If the company's title to this land had been good, we could have saved the Securities company and the Pioneer bank, too," said Mulfinger. "But it is worthless and no taxes were paid for 50 years." Officers in both companies are practically the same. The land involved was held by the Colonial Land, Coal and Timber corporations, said to have been organized by Thomas H. Matters, recently released from Leavenworth penitentiary on a pardon by President Harding, with Walter Stickell of Kearney, Ralph-Sunderland,-Lee Herdman, W. V. Matthews and Walter A. George of Omaha and William J. Culver of Chicago. with Walter Stickell of Kearney, Ralph Sunderland, Lee Herdman, W. V. Matthews and Walter A. George of Omaha and William J. Culver of Chicago. These men bought out Matters' interest a year ago for $250,000 and are said to have paid him $125,000 in cash for his 30 per cent holding. Bonds for $2,000,000 Issued. The Securities company issued $2,000,000 worth of bonds on the Colonial holdings and sold about $900,000 of it, the rest being held as securities on other mortgage bonds. The Securities company was named trustee and holder of securities for the bondholders of the Colonial company and the Pioneer State bank was named depository for the funds of the Colonial company. The Securities company was to have 15 of the sale of $1,000,per cent the 000, bonds as a commission. Armed with the facts ascertained by their trip to Virginia, counsel for the Securities company yesterday withdrew its answer to the suit in federal court and permitted the company to be adjudged bankrupt.

2. October 8, 1921 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, October 8, 1921

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Article Text

Indicted Dairy Head Arrested Le Roy Corliss, Charged With Embezzlement, Gives Self Up; Refning Co. Man Held. Stickel Out on Bond LeRoy Corliss, president of the Alamito Dairy company, former president of the Waterloo Creamery company and officer in other institutions surrendered to the sheriff yesterday afternoon to face grand jury indictments charing him with conspiracy to commit felony and with negotia tion of sales of stock without a permit. He was accompanied by his at torney with bond of $7 500, all ready, signed by Mrs Mabel H Cornish, pledging the St. Luke's hospital property, Twenty-second and Lake streets. Corliss was released under this bond The negotiation of sales of stocks A charge carries six counts The embezzlement charge consists of one count, having to do with the sale of 8.000 shares of Waterloo Creamery company stock at $100 a share. Other men, not yet arrested, are named on both these indictments Corliss lives at 2333 Hanscom boulevard Bondaman Refused C. E. Heaney, Drake court, for merly secretary and director of the Omaha Refining company, was rested late yesterday afternoon and F was unable to get valid bond, L. Crofoot, wealthy attorney, was ready to sign, but District Judge Troup refused to accept him, it being rule to take no attorneys as signers of bonds The other signer was Mrs. L. M. Proulx, Heaney's mother-inlaw Mrs. L C. Nash will sign bis bond at 11 this morning, Mr. Crofoot promised, and Judge Troup allowed Heaney to go home for the night The judge came down from his home to pass upon the bond Heaney is charged with embezzlement on six indictments of two counts each, as follows $2,150 on Jure 13, 1919; $6,000 on March 4. 1920; $4,500 on March 4. 1920 $700 on August 1920: $2,000 on De cember 31 1920, and $800 on March 25, 1921 President Fox of the Omaha Refining company has disap peared. Man Gives Self Up. Walter A. Stickel came in from Kearney, Neb., gave himself up and was released under a $5,000 surety bond signed by W. Lincoln Byrne agent. Stickel was president of the Colo trial Timber and Coal corporation, in which Thomas H. Matters was interested The charge against Stickel is a'ding and abetting felony Several others, including Matters, were named on the same indictment a Until recently Stickel operated line of grain elevators, coal and lumber yards in Central Nebraska. At one time he was reputed to be millionaire, N P. fcDonald of Kearney, an ex-district judge, represented Stickel. Walter A George of Omaha also accompanied him into court. Mr and Mrs. Robert Levy, who signed the $10.000 bonds under which Roy E. Karls, charged with embezzlement was released last Tuesday, notified the sheriff yesterday that they wish to withdraw Karls will be brought in today and will have to get another bond or stay in jail. Bank Sued. Suit was filed in federal court yes terday afternoon by Robert J. Webb, trustee for the Guaranty Securities company, against the Pioneer State bank and its receiver, Albert A, Schantz. to recover $300,000 Preference towards the now defunct bank by Schantz, in placing of securities delivered following the failure, is charged by Webb Former president of the bank and Guaranty Securities company Willard C Mathers. faced District Judge Troup yesterday to answer charges of embezzlement of $300,000 belonging to bank depositors, and for causing false entries to be made on the books of the bank Judge Troup fixed his bond at $5,000, which was given by C. D. Armstrong, real estate man Charged With Embezzlement. Mathews is charged with embezzlement of $200,000 on November 15 1919: $75,000 on March 18, 1921, and $25,000 on May 18. 1921, all of these moneys being the assets of the Fioneer State bank. Last spring, when the two institutions failed, the state guarantee fund was drawn on for $300,000 to pay the depositors of the bank It is charged that Mathews. in 1920, with intent to deceive the examiners of the state department of trade and commerce as to the assets of the two institutions, caused entriies to be made on the Pioneer State bank books of credits to the Guaranty Securities company in order to swell the apparent resources of the latter company Accused of "Kiting" Checks. Mathews also is president of the Denver State bank, which institution now is in the hands of the state bank examiner. Mathews was charged in the Omaha indictment with "kiting checks between the Omaha and Denver banks of which he is head State Bank Examiner Grant Mc Ferson of Colorado said yesterday the exact amount of the shortage of the Denver State bank had not been determined. but that deposits amounted to $150,000 and that he is arranging to make a 25 per cent payment to depositors as soon as the necessary court order can be ob tained. Homer S. McMillan, special deputy state bank examiner. is in charge of the Denver State bank Mathews was at one time Lincoln (Tera to Page Two, Column Four.)

3. May 6, 1922 The Seattle Star Seattle, WA
Article from The Seattle Star, May 6, 1922

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Article Text

25 NAMED IN INDICTMENTS OMAHA, Neb., May -The federal grand jury Friday returned a blanket indictment against 25 men, charging use of the mails to defraud in connection with the failures of the Guaranty Security company of Omaha, Deg Moines and Denver, the Midland Savings bank of Lincoln, the Pioneer State bank of Omaha, the Farmers' State bank of College View, Neb., and the Colonial Coal & Timber company of West Virginia. All these organizations are in hands of receivers and involve losses to stockholders, It is charged, of several millions of dollars. All the indicted men were released on bonds ranging from $1,000 to $25,000 each.

4. May 6, 1922 Imperial Valley Press El Centro, CA
Article from Imperial Valley Press, May 6, 1922

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Article Text

U. S. Grand Jury Holds 25 in Fraud United Press Leased Wire OMAHA, May 6.-The federal grand IMPERIAL COUNTY'S jury Friday returned a blanket indictment against 25 men charging use of the mails to defraud in connection with MOST VITAL SUIT the failures of the Guaranty Securities company of Omaha, Des Moines and Denver, the Midland Savings Bank of ON TRIAL Lincoln, the Pioneer State Bank of Omaha, the Farmers State Bank of College View, Nebraska, and the Colonial Judge Franklin J. Cole, in departCoal and Timber company of West Virment 1 of the local superior court has ginia. before him one of the most important Wm. H. Culver of Los Angeles was cases which has ever found its way to among those indicted. All these organthe court calendar of Imperial county. izations are in hands of receivers and The case is entitled, H. H. Timken vs. involve losses to stockholders, it is Imperial Irrigation District and incharged of several million dollars. volves a claim for damages from high All the indicted men were released water table alleged to have been causon bonds ranging from $1,000 to $25,ed by leakage from a main canal of 000 each. the Imperial Irrigation District which Some of those indicted, and their runs along the property of the Timken bonds follow: Ranch Company within the territory of Thomas H. Matters, Omaha attorney Imperial Water Company No. 7, situ$10,000. ated southeast of Holtville. Willard V. Mathews, Omaha, $25,000. H. H. Timken is the millionaire of Walter A. George, former treasurer roller bearing fame and owns several of Nebraska, $1,000. thousand acres of land in the Imperial Ralph E. Sunderland, Omaha, $1,000. Valley, much of it the most highly imH. L. Fuller, Omaha, $10,000. proved in the county. Harold R. Cozier, Omaha, $5,000. The suit involves the liability of the Lucien B. Faller, Lincoln, Neb., $10,Irrigation District and of the various 000. mutual water companies for seepage Alexander L. Mathews, Broken Bow, from their canals where the seepage Neb., $10,000. may be proved to have raised the water Rev. Charles H. Rogers, Lincoln, Neb., table under adjoining lands to an ex$10,000. tent to render the land unproductive. Samuel G. Moore, Des Moines, $10,000. There are many thousand acres in a sitD. Eykelboom, Denver, $10,000. uation similar to that of the Timken James R. Ellison, Charleston, W. Va., ranch and the outcome of the case is $25,000. being closely watched because of the George L. Roach, Denver, $10,000. bearing it may have upon other cases Charles Rudolph, Chicago, $25,000. which are said to be pending and may Wm. H. Culver, Los Angeles, $25,000. be based upon the Timken case as a

5. August 23, 1925 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, August 23, 1925

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GOOD FEES KNUDSON COURTS ALLOWED HIM WANTS Secretary Griggs of Guaranty Fund May Ask for Return of Yet Paid. reported the capitol that the department of trade and commerce, Kirk Griggs, secretary, will endeavor to prevent K. Knudson, former secretary of the department, from drawing pay for acting receiver the American State bank and the Pioneer State bank Omaha and for performhim receiver of the American State bank Lincoln. It said the department will endeavor have Mr. Knudson return $750 drawn by him as receiver Bank of Waverly. A total of may be involved. The same action likely to taken in regard to $750 drawn Hart, of the depart ment before Mr. became secretary. Mr. said to have drawn $750 for his work receivbank Blair. Bodie receiver in fact of that bank until Mr. Hart retired from the office of secretary of department. He then active charge receivership for one month and days. The department trade and commerce and the guaranty fund commission said to agreed upon policy to pursued matter of Mr. Kundson's pay receiver. Griggs secretary of the department and chairman guaranty fund commission. He has acted receiver of any failed bank and has drawn no pay except his salary of $5,000 year. refused the claims of Mr. Knudson for pay receiver in any case. The state law relating secretaries of the code departments says: appointee each department shall devote his entire time the duties of his office and shall hold other office position Knudson allowed $750 by court when he was charged receiver the Bank Waverly He was succeeded by Dempster Geneva, the guaranty fund commission, short time ago. Knudson was allowed $1,158

6. December 29, 1928 The Lincoln Star Lincoln, NE
Article from The Lincoln Star, December 29, 1928

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Article Text

Sues Stockholders Defunct Omaha Bank Pioneer State DeReceiver For mands That Fifty-nine Pay Double Amount Of Holdings. Brownell, for the defunct Omaha State bank of Pioneer which into the hands of receivership August 10. court 1921. against today filed suit in district the institution. 59 stockholders asking double indemnity under the state bank law stock holders have now paid total of understood The bank's debts are listed at