American State Bank (Lincoln, NE)

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Receiver of Lincoln Bank Makes Refund to State Fund Lincoln. Aug. 9.-(Special.)-A $55,000 refund was placed in the state guaranty fund today by E. M. Warner, receiver of the failed American State bank. Lincoln. This made the third refund from this bank to the fund, all three totalling $165,000.

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Receiver for Defunct Bank Returns $27,500 to State Lincoln. Jan. 14.-(Special.)-Ed ward M. Warner, receiver for the defunct American State bank of this city, turned over $27,500 to the state guaranty fund. With this payment. the receiver has paid back to the state guaranty fund, a total of $220,000. which is 40 per cent of the total amount drawn the time to reimburse depositors. The guaranty fund was drawn upon for $550,000. Mr. Warner said he hopes to realize enough from the assets before the affairs were finally disposed of to net the state guaranty fund 60 per cent of the loss.

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The Continental State bank at Tenth and O streets, gained considerable prestige two years ago when it agreed to pay off depositors in the defunct American State bank within 48 hours after the latter bank had failed. The Continental State bank made the payments and it was later reimbursed from the state guarantee fund. This was made possible through the appointment of Edward M. Warner, vice president, as receiver.

The Continental bank was organized in 1909 and has been doing business at Tenth and O streets since, then except during the time when the Terminal building was constructed. Its assets total nearly $2,500,000 of which over $1,800,000 is in loans.

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Bank Receiver To Make Refund

Judge Lincoln Frost in an order issued in district court Wednesday afternoon authorized the receiver of the American State bank of Lincoln to refund to the guaranty fund commission of Nebraska the sum of $27,529.71, which is 5 per cent of the amount advanced to the receiver from the fund.

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REFUND TO STATE BANKS

MORE THAN $238,000 GOES TO GUARANTY FUND.

Each Bank to Receive Its Proportionate Share of Its Contribution to the Payment of Depositors.

The state banking department, under K. C. Knudson, secretary, is figuring on refund checks to the guaranty fund from eight different receiverships, and a total amount of $238,716 will be mailed to all the state banks within a few days, each bank to receive its proportionate share of what it contributed to the guaranty fund which paid the deposits of these failed banks.

A receiver for the Goodrich Bros. Banking company of Fairbury was appointed January 3, 1922, and will now refund 69 3-4 per cent from the total draft drawn on the depositors guaranty fund, which amounted to $50,035.28. This receivership is now being closed and this is the final refund from this receivership to the guaranty fund.

A 10 per cent refund will be made from the Pioneer State bank of Omaha, for which a receiver was appointed June 6, 1921, and a draft upon the guaranty fund was made to the amount of $300,761.16. A previous refund of 20 per cent has been made to the banks from this receivership. This receivership is not closed and an additional refund will be made when all the assets are liquidated.

A receiver for the State Bank of Waterloo was appointed July 26, 1922, and a draft to the amount of $69,251.53 was drawn upon the guaranty fund, and at this time a refund of 20 per cent will be made.

The First State bank of Hemingford, receiver appointed September 19, 1922, and a draft on the guaranty fund was drawn to the amount of $205,380.88, and a refund of 15 per cent is now being made.

The Homer State bank receiver was appointed February 17, 1922. The American State bank of Lincoln, receiver appointed July 16, 1921; Newcastle State bank, receiver appointed May 2, 1922; Shelton State bank, receiver appointed July 20, 1922, and a refund will be made from these latter named banks as soon as the receiver or the guarantee fund commission obtains court orders authorizing these refunds.

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BANKING DEPARTMENT MAKES GOOD SHOWING

The state banking department, under K. C. Knudsen, secretary, is figuring on refund checks to the guaranty fund from eight different receiverships, and a total amount of $238,716 will be mailed to all the state banks within a few days, each bank to receive its proportionate share of what it contributed to the guaranty fund which paid the deposits of these failed banks.

A receiver for the Goodrich Bros. Banking company of Fairbury was appointed January 3, 1922, and will now refund 69 3-4 per cent from the total draft drawn on the depositors guaranty fund, which amounted to $50,035.28. This receivership is now being closed and this is the final refund from receivership to the guaranty fund.

A 10 per cent refund will be made from the Pioneer State Bank of Omaha, for which a receiver was appointed June 6, 1921, and a draft upon the guaranty fund was made to the amount of $300,716.16. A previous refund of 20 per cent has been made to the banks from this receivership. This receivership is not closed and an additional refund will be made when all the assests are liquidated.

A receiver for the State Bank of Waterloo was appointed July 26, 1922, and a draft to the amount of $69,251.53 was drawn upon the guaranty fund and at this time a refund of 20 per cent will be made.

The First State Bank of Hemingford, receiver appointed September 19, 1922, and a draft on the guaranty fund was drawn to the amount of $205,380.88, and a refund of 15 per cent is now being made.

The Homer State Bank receiver was appointed February 17, 1922. The American State bank of Lincoln, receiver appointed July 16, 1922; Newcastle State bank, receiver appointed May 2, 1922; Shelton State bank, receiver appointed July 20, 1922, and a refund will be made from these latter named banks as soon as the receiver or guarantee fund commission obtains court orders authorizing these refunds.—State Journal.

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SECOND BOW IN COURTS

AUTOMOBILE INSURANCE COMPANY TAKES NEW APPEAL

Insists That Trial Court Failed to Follow Mandate of Supreme Judges in Former De- cree in Case.

The claim of the Bankers' Automobile Insurance company, in the hands receiver, for against the guaranty fund, based certificate of deposit the failed American State bank Lincoln has made its second appearance in supreme court. When the automobile insurance company organized Maixner he made arrangement with President Dwiggins the American State, then in operation, whereby certificates deposit the bank notes given him purchasers stock policies, with the understanding that the bank would called upon pay any the certificates until after the notes been collected. The receiver the bank tested the right demand repayment certificate on ground that actual money had been that rangement amounted to nothing more than make the bank the agency the insurance company The Lancaster trict court upheld receiver the bank, and the receiver of the company the matter the supreme court. held the supreme court that 80 long there was no fraud connected with the the deposit certificate could not outlawed claim against the guaranty fund; that this usual ordinary bank proceeding and that the fact that deflation came and the judgment of Dwigbe poor good times had all was for the claim. On retrial Judge Frost the receiver the bank permitted make objeotions, fraud charged. Judge Frost held that insofar the deposit the issued, but that of fact that certain proportion had since collected the bank the guaranty fund was liable for The insurance company receiver filed an appeal court Wednesday from this decision, claiming the decision justifies verdict his and that Judge Frost erred allowing amended objections to filed.

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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

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KNUDSON NOT DISCHARGED

REMAINS BANK RECEIVER UNTIL FEE IS PAID.

Secretary Griggs of State Banking Department Refuses to Sign Checks for $2,600.

The refusal of Secretary Griggs of the department of trade and commerce to sign pay checks for $2,600 for K. C. Knudson, formerly secretary of this department, may add to the expense of the state bank receiverships which Mr. Knudson holds, it is explained by members of the guaranty fund commission. Mr. Knudson has been ordered paid by the district court of Douglas county and by the district court of Lancaster county. He was allowed $1,700 by the Douglas county court for services as receiver of two banks in Omaha. The Lancaster county court allowed him a fee of $900 for services as receiver of the American State bank of Lincoln.

Mr. Griggs, who is chairman of the guaranty fund commission declines to sign the checks covering these claims. The checks were issued by the commission. It is explained that Mr. Knudson has not been discharged as receiver of the three banks. It is alleged the orders of the district courts provide for his discharge when he is paid. Mr. Knudson is still under bond as receiver and may be in a position to ask for a further allowance up to the time he is paid and discharged.

Mr. Griggs' letter to the guaranty fund commission states that he

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renewed Monday morning

Bank officials drew on Omaha Grand Island for money and local police were to guard the institution. The run have been by the fallof the American State bank.

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AUDITORS ASSIGNED TO BANK INVESTIGATION IN REVIEW ACCOMPLISHMENTS

Auditors assigned by A. C. Shallenberger, Thief of the guaranty fund investigations, to an examination of failed banks and various adjuncts of the state banking department today concluded their work with a review of what they accomplished. In checking the guaranty fund for a period of 19 years, from 1911 to 1929, the auditors reported that total assessments for the fund in that period amounted to $19,811,379, of which the banks contributed $18,a 694,669. the latter amount including cash returns from the assets of failed banks, which depositors were paid from the fund. On last January 2. the auditors found, unpaid and refunds were owning the fund in the amount of $3,299,061, of which sound banks owed $2,954,108, and closed banks owned $344,953. The auditors reported discrepancies in various amounts in checking the reports of the trade and commerce departments with those of the receivers of failed banks, but were unable to complete a complete check in all cases, they said, because the state records were not complete. Durig the 19 year period, depositors in 125 banks were paid in full on losses from failures, 89 of the institutions partially reimbursing the fund later out of assets. The report charged that the bureau of trade and commerce failed to keep adequate records and also said there was neglect in filing claims with bank receivers for unpaid assessments due the fund. Thirty-eight regular assessments levied upon the banks during the 19 years netted $4,680,337, and 21 special levies added $15,131,042, the auditors said. The largest payment from the guaranty fund to any failed bank was to the Altas bank at Neligh, which received $809,348.89, while the smallest payment was to the Trumfull State bank, which received $3,072.50. The largest refund made to the guaranty fund by receiverships during the 19 year period was from the American State bank at Lincoln, "Attention is directed." said the report, "that, in our opinion, the department of trade and commerce did not protect the interests of the depositors guarantee fund, except in few cases, with reference to the balances due the fund from failed banks aggregating $344,952.78. while the recovery might not have been large by the filing of claims in each case, it would no doubt have been worth while." In that connection the auditors ,recommended that claims be filed for these amounts in the future and in past failures, where possible. The auditors also criticised the keeping of records of the guaranty fund by the department, declaring the most serious defect was the absence of a permanent record of accounts with failed banks which have received payments from the fund. The auditors also reported they were unable to locate bank statements from 1914 to 1923. inclusive, and no one seemed to know the whereabout. No uniform system of filing such documents seemed to be in use.