3987. Union State Bank (Nezperce, ID)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 9, 1921
Location
Nezperce, Idaho (46.235, -116.241)

Metadata

Model
gpt-5-mini
Short Digest
1b2921ed

Response Measures

None

Description

The Union State Bank of Nezperce closed its doors in November 1921 after discovery of large forgeries/abstracted funds by Cashier Ernst (Wienss/Weinss). Newspapers report the bank 'closed doors' (Nezperce Herald 1921-11-10) and later references show the bank suspended in November 1921 and surety/legal actions followed; a new state bank was later organized to pay part of depositors. OCR errors in cashier's name (Wienss/Weinss/Weinss) corrected. Although Article 1 mentions heavy withdrawals and rumors, the proximate cause of the suspension/closure was bank-specific adverse information (forgery/embezzlement), so I classify this as a suspension leading to permanent closure (suspension_closure).

Events (2)
1. November 9, 1921 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of large forgeries and abstractions of funds by Cashier Ernst Wienss (about $36,000 in forgeries and about $40,000 abstracted), leading directors to close the bank; rumors and heavy withdrawals followed but the primary trigger was the discovered embezzlement/forgery.
Newspaper Excerpt
The Union State Bank ... closed doors yesterday morning.
Source
newspapers
2. * Receivership
Newspaper Excerpt
the state bank examiner ... will take charge ... a receiver may be appointed in charge of the institution; the bank suspended business in November, 1921, the complaint ... (surety actions). The stock and fixtures ... went into the hands of a receiver a few weeks after the closing of the Union State Bank (Nezperce Herald, 1922-02-02). ) . ,
Source
newspapers

Newspaper Articles (7)
1. November 10, 1921 The Nezperce Herald Nezperce, ID
Article from The Nezperce Herald, November 10, 1921

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Article Text

Steal of $76,000 By Forger Wienss and Resultant Depression Cause.- Commissioner Take Charge.-May Reorganize. The Union State Bank, which been one of the great local has institutions most active in the upbuilding of this country during its the past twelve years, closed doors yesterday morning. This action was taken by the allof directors after an night's board session on Tuesday night, Tripconsultation with W. T. Spoin vice-president of the Spolett, & Eastern Trust Co. of kane and E. M. Erhardt, presikane, dent of the Empire National Bank, of Lewiston. The direct cause of the closing and its doors was the forgeries former abstraction of of funds by Cashier Wienss, who as stated was in last issue of the Herald, Washthe arrested at Kettle Falls, from and made his escape while ington Sheriff Smith at Spokane, Lewis being brought back to of The total amount Wienss County. forgeries committed by $36,000 and the abstractions than amounted was to a little more $40,000. This heavy loss, aided in rumors that the bank was in financial by difficulties, resulting deheavy wthdrawals of the close the posits, made it necessary to its doors. manipulations carried on for by The have extended back and Wienss of more than a year, a period have been longer. His sys- of may *was to forge the names tem of the good men of this notes secsome notes and send the the tion to outside bank, with here, to endorsement some of the bank of the credit for the amount get from the other bank and apuse. note propriate the proceeds to his own Wienss came here about Ernst years ago from Spokane. of eight he had for a number of where been one of the officers Trust years the Spokane & Eastern time had and prior to that that Co., in other business in to been When he first went city. he served for two years gainSpokane German vice-consul and He was as wide acquaintance. aba ed man a of more than ordinary ility. Immediately following the direc- finaction of the board of they al in closing the bank, of tors the state bank examiner doub': wired action and he will no withtheir here or send an assistant charge. in be few days to take will be a very to just what steps he As bv the examiner when but arrives taken it is not yet known, to receiver may be appointed No a charge of the institution. made take statement has been undefinite be made by any one nor after can the arrival of the exam- the til but it is believed little that by iner, will lose but although depositors closing of the doors, before the be several months the it will business is finatlly wound is the up. closing of this bank The shock and the most ever sevgreatest blow this community has talk of ere experienced, but already from varreorganization is rife feela sources, and a hopeful plan ious prevalent that some doors ing will is be devised whereby its may soon be opened again. late hours of the all-night beThe of the directors witnessed conference fore the fateful decision dramatic was reached whose tragie tinge brought menscenes to the eyes of strong of tears who forfeited the savings situation. men life time to save the of a eight directors, most board The had been on the of the since whom the organization assent to the bank, gave their with greatest reclosing order and finally agreed course onluctance, there was no other alpursue. ly when For them it was closto unhearable to see the had most of this institution, which this secing credit to them and whose been of a the prairie and in gave tion and success they that was upbuilding generously of the best in them. directors are C. W. Booth, viceThe J. R. Dunham, A. F. president; president: K. G. Osterhout, C. F. W. F. Johnson, E. H. Waters. Harbke, Thomas, R. B. Stigum and

2. December 23, 1921 The Daily Star-Mirror Moscow, ID
Article from The Daily Star-Mirror, December 23, 1921

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Article Text

STATE ASKS CASH LOST IN BANKS MAKES DEMAND ON SURETY COMPANIES FOR $110,400, IN BANKS NOW CLOSED. Demand for $110,400 in state funds held by state depositories which have closed their doors was made Tuesday on six surety companies by B. E. Hyatt, director of the bureau of public accounts, according to the Idaho Statesman. The surety companies which will meet this demand under the terms of the bonding contract are: The National Surety company, the United States Fidelity & Guaranty company, Fidelity & Deposit Company of Maryland Casualty company and the Aetna Casualty & Surety company. Under the terms of all depository bonds the state is entitled to the total deposit of the state when the banking institution suspended business, plus interest at 3 per cent on the daily balances from the date of last interest payment to the date of settlement by the surety company. The suspended national banks and the amount of state money on deposit in each follow: Blaine County National $11,600 a First National, Mountain Home 21,000 5,000 First National, Wendell First National, Burley 8,400 Total $46,000 State banks suspending operations, E with state funds deposited, are: a Union State, Nez Perce $ 8,400 Delco State Bank 3,800 Bellevue Bank & Trust 7,000 13,500 State Bank, Idaho Falls Citizens' State Bank, Buhl 17,500 Commercial State Bank, Burley 14,200 o Total $64,400 Total for state and national banks, p $110,400.

3. January 27, 1922 Clearwater Republican Orofino, ID
Article from Clearwater Republican, January 27, 1922

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IDAHO NEWS PARAGRAPHS Recent Happenings in This State Given in Brief Items for Busy Readers. Death Calls A. L. Haynes. MOSCOW.-A. L. Haynes, age 59, pioneer farmer of the Clinton district, died recently. Mrs. Chandler Dies. GILBERT, Idaho.-Mrs. Elizabeth Chandler, age 80, died recently at the home of her daughter at Deer Park, Wash. Aged Woman Burns to Death. PLUMMER.-Enveloped in flames which she was unable to combat because of paralysis, Mrs. Katie Hess, age 70, was burned to death in her home here. Rich Strike Made. KELLOGG.-Five feet of carbonate ore, principally lead oxide, was recently uncovered in the drift on the 300-foot level of the Lookout mountain proverty, located near here. State's Coldest Spot. BOISE.-Donnelly, Idaho, on the Idaho of the was coldest in Short Northern Line, branch the place Oregon western Idaho last week, the temperature dropping to 42 degrees below zero. Tom Bunker Dies. COEUR D'ALENE. - Thomas J. Bunker, age 81, died at his home here after an illness of several weeks. He was one of the oldest pioneers of Idaho and took part in the Nez Perce Indian wars in 1877. He came to Idaho in 1862 from Oldtown, Me., where he was born. He came to Coeur d'Alene in 1903. New Idaho Coal Is Lignite. Fred Erskine. United States geological surveyor, who recently visited Grangeville, brought samples of lignite coal reecntly discovered in the hills three miles southeast of that town. Mr. Erskine says the vein is found in a carboniferous shale, which also shows fossil bed clap and sandstone. Lem Neil, the man in charge, has run a tunnel 125 feet into the mountain and states the quality is improving rapidly and Mr. Erskine of thinks the mine has possibilities developing a good vein of lignite coal. New Bank, Nez Perce. NEZ PERCE.-At a meeting of 300 depositors of the defunct Union State Bank and citizens of Nez Perce recently the subscriptions for capital stock of a proposed new bank were raised to $40,000. The new bank will be incorporated as a state bank with a capital stock of $50,000 and It will plus of $5,000. pay 50 a sur- per cent of the deposits of the defunct bank at the time it was closed, provision being made that the pro rata whatever will receive depositors is realized on the assets of the bank classified as bad and doubtful. Will Finish Idaho Highway. BOISE-Contracts will be let early in for the last links North February and of the South highway between Grangeville river, except for grade, says Office desac hill Engineer the CulH. W. Gregory of the bureau of ways. The Culdesac job will not hightaken be up until about two will be later. Bids opened on months February the 4 at for Lewiston, bureau road announces, one stretch of in the Cottonwood in 3.1 miles Idaho county highway long, district and for Central of 5.2 miles last another Lewis county in the long. district The contracts awarded were two on the Lewiston-Grangeville part of the highway.

4. February 2, 1922 The Nezperce Herald Nezperce, ID
Article from The Nezperce Herald, February 2, 1922

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SHOEMAKER'S MERCANTILE CO. New Corporation Acquires Nezperce Trading Co.-Bigger and Better Store. On Monday the stock and fixtures of the Nezperce Trading Co., one of the prairie's leading general merchandise stores located at this place, which went into the hands of a receiver a few weeks after the closing of the Union State Bank as the result of irregularities by Ernst Wienss, were bought by a corporation to be known as Shoemaker's Mercantile Company, of which the stockholders are S. L. Shoemaker, Alvin Caldwell and Miss Elizabeth Jacobs. The purchase was made from J. G. Meikle, the assignee, representing the creditors of the old institution. Mr. Shoemaker, who holds the majority of the stock and who as head of the old concern has given this community one of the most up-to-date stores boasted by any country town, and who was in no way responsible for the crash in which he was entangled, promises careful adherence to the best methods of modern merchandising, and associated with him now as shareholders are two people who have long been connected with the store as employes and have proven their worth and value to this institution and the community by efficient, honorable service. New stocks of merchandise have been ordered and plans are being made to render every possible assistance in bringing Nezperce up to the high standard she merits as a trade center.

5. April 28, 1922 Cottonwood Chronicle Cottonwood, ID
Article from Cottonwood Chronicle, April 28, 1922

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FOR SALE—Black Minorca eggs for hatching. T. Clark the junk man. 14-4 A baby boy was born to Mr. and Mrs. Carl Meyer of the Fenn section in a hospital at Lewiston last week. Mrs. H. C. Netzel is visiting with friends in Lewiston this week, having departed for that city on Tuesday morning's train. Mrs. Harry Driscoll and little son, Bobby, arrived in our city last evening and are visiting at the Dr. J. E. Reilly home. The interior of the Frank Simon home is this week being remodeled by William Ruhoff. A cement foundation was also placed under a portion of the house. Mr. Simon also plans to have his home re-painted. The dance given by the American Legion Friday evening proved to be a grand success from a financial standpoint and from a social standpoint it had few equals. The Legion boys had the hall beautifully decorated in patriotic colors. Mrs. M. M. Belknap was a passenger Tuesday morning for Lewiston to spend a few days with her husband who is confined in the St. Joseph hospital. Mr. Belknap is regaining his strength daily and will soon be able to return to his home in Cottonwood. The Knights of Columbus gave a card party, the first one since the Lenton season, in their council chambers, Tuesday evening. Forty people were present. First honors were awarded to Mrs. George Medved and Barney Seubert; consolation, Mrs. John A. Knopp and Ben Terhaar. The appearance of the J. V. Baker home has been greatly improved this week by the addition of a parking about 10 feet wide along the outside of the cement walk. The parking was filled with dirt and Canadian Popular trees planted therein. William Schober returned Sunday evening from a week's visit to outside points. Ed Schnell, former county auditor of Lewis county, but now engaged in the automobile business at Nezperce, was a business visitor in Cottonwood Monday evening. Mr. Schnell stated that business conditions at Nezperce were gradually improving since the failure of the Union State Bank which was a severe blow to that community. William Rooke, a well known stockman of the Salmon and Snake river sections, spent several days in Cottonwood last week visiting at the home of his parents, Mr. and Mrs. A. B. Rooke. Stock conditions on the river, said Mr. Rooke, "could be no better considering the hard winter, most of the stock came through in fine shape." Mr. Rooke returned to his home Friday morning, via Lewiston and the Snake river boat line which runs within a few miles of his home. Among some of the baseball fans whom we noticed at the baseball meeting Tuesday evening were: Harold Harris, Will Derrig, Walter McAdams, T. E. Quinlan, Wilbur Fuller, Art Wiley. Ed Abramson, Grangeville; Lloyd Fenn, County Commissioner Dale Clark, Kooskia; D. H. McGrath, Dennis Howard, Fenn; G. W. Tarbet, Dewey Atkinson, E. L. Mueller, Ferdinand; W. N. Nissen, Winona; L. Howard, Stites The Freshmen team of the Cottonwood high school defeated a similar team made up of students comprising the remainder of the high school in two hotly contested games of baseball, the past week. The first game was played last Friday and resulted in a victory for the Freshmen by a score of 4 to 1. On Wednesday evening they again defeated

6. December 5, 1926 The Idaho Statesman Boise, ID
Article from The Idaho Statesman, December 5, 1926

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FILES SUIT FOR $10,000. The United States Fidelity and Guaranty company filed suit in United States district court Saturday against K. G. Osterhout and others for $10, 000, alleged to be due on an agree ment of indemnity after the fidelity company had become surety for deposits in the Union State bank of Nez Perce. The bank suspended business in November, 1921, the complaint Turn to the Gumps

7. February 8, 1930 Green Bay Press-Gazette Green Bay, WI
Article from Green Bay Press-Gazette, February 8, 1930

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YEAR Ernest Weinss Recognized By Tourist In Fort Worth, Tex. NEZ Ernest the "Kaiser of Nez was back home ending nine-year effort to evade the law, which wanted to answer charge wrecking bank. Weinss escaped at Spokane, Wash. after sheriff had arrested him on charges of forgery and theft of $76,365. He fled from here two days bethe Union State bank, of which he was cashier, closed its doors. Brought from Fort Worth, Texas, where tourist from Nes Perce Weinss was taken the Circuit for arraignment. He waived preliminary hearand said wished to plead guilty forgery. over," he said. want take the punishment.' He will be sentenced in District court Lewiston tomorrow, with the likelithat will enter prison Boise before the week over. Weinss fled from position of influence the Clearwater river country, where earned the title "Kaiser" because his leadership financial affairs. He Edward Wyman Fort Worth, opened supply house was have never written to anyone in the changed my only time ever my wife was when her Spokane telephone directory. just myself."