Valparaiso State Bank (Valparaiso, NE)

Episode Information

Episode Type
Suspension → Closure
Start Date
January 26, 1920
Location
Valparaiso, Nebraska (41.081, -96.832)
Bank Type
state

Metadata

Episode ID
Bank ID
City ID
310834348
Model
gpt-5-mini
Short Digest

Notes

Failure attributed to shortages/embezzlement and poor management; closed by state banking board and placed in receivership.

Events (2)
1. January 26, 1920 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed by order of the state banking board after discovery of a large shortage believed due to embezzlement and reckless/speculative management (oil stock and irrigation speculations).
Newspaper Excerpt
appointed ... as receiver for the failed Valparaiso State bank ... the closed bank
Source
newspapers
2. January 26, 1920 Receivership
Newspaper Excerpt
Judge E. E. Good ... has appointed E. E. Fike ... as receiver for the failed Valparaiso State bank. His bond as receiver was fixed at $100,000.
Source
newspapers

Newspaper Articles (11)
1. January 27, 1920 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, January 27, 1920

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Receiver Appointed for Defunct Valparaiso Bank -Lincoln. Neb., Jan. 26.-(Special.) -Judge E. E. Good, in the district court at Wahoo, has appointed E. E. Fike, who recently removed from Lincoln to Valparaiso and is cashier of the Nebraska State Bank recently incorporated there, as receiver for the failed Valparaiso State bank. His bond as receiver was fixed at $100,000. The Saunders County Bankers' association recommended Mr. Fike's appointment and local shareholders th the closed bank requested it. Probably considerably more than $100,000 will have to be advanced from the state guaranty fund to pay depositors. Total deposits were in excess of $400,000 and the shortage in the bank's funds is believed to be from $150,000 to $175,000.

2. February 12, 1920 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, February 12, 1920

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P. A. Barrows. Correspondent Bank Cashier Brought Back to Nebraska to Await Trial at Wahoo Lincoln, Neb. Feb. 11.-(Special.) -Gus A. Hyers, chief of the state law enforcement department, arrived here at noon today from Denver with R. B. Lower, former assistant cashier of the Valparaiso State bank, charged with embezzlement of $17,500 of the bank's funds. Lower had been released on bail, following the failure of the bank, and when notified to appear for trial, could not be found. He was detained in Denver when about to board a train leaving the city. He will be taken to Wahoo to await trial. Receiver E. E. Fike, now in charge of the bank's affairs, has filed an application with Judge E. E. Good of Saunders county district court that the depositers' guarantee fund be drawn on to the extent of $238,840.02, which he declares will meet all present demands of the bank, up to April 1. He declares that he believes that many of the paper securities of the bank will prove of sufficient worth to pay this amount back in the near future.

3. July 11, 1920 Albuquerque Morning Journal Albuquerque, NM
Article from Albuquerque Morning Journal, July 11, 1920

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CASHIER IS ARRESTED FOR ADVANCING DATE OF $10,000 DEPOSIT (BY MORNING JOURNAL SPECIAL LEASED WIRE) Lincoln, Neb., July 10.-E. E. Fike, while receiver of the defunct Valparaiso, Neb., State bank, early this year organized and became cashier of the Nebraska State bank of Valparaiso which took over part of the assets of the old institution, was arrested today on a charge of advancing the date of a $10,000 deposit in a report to the state banking board, according to H. A. Bryant, county attorney of Saunders county. He was taken to Wahoo for preliminary hearing. A warrant was also issued in Wahoo for the arrest of W. C. Elmelund, Omaha grain man and former president of the defunct bank. charging him with borrowing $10,000 from the bank in 1918 and 1919 without giving security in violation of the state banking laws. Ray A. Lower, cashier and majority stockholder of the defunct bank, is under bond on a complaint of twenty-one counts charging embezzlement before the bank was closed last January.

4. July 24, 1920 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, July 24, 1920

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E. E. FIKE, CASHIER OF BANK, IS FREED ON FRAUD CHARGE Valparaiso Banker Is Discharged at Preliminary Hearing Held at Wahoo. Wah0o, Neb., July 23.-(Special Telegram).- E. Fike, cashier of the Nebraska State bank of Valparaiso, was discharged at his preliminary hearing before County Judge D. M. Parmenter here on charges of submitting false reports to the department of trade and commerce on the call issued February 14, 1920. The court ruled that there was insufficient evidence to sustain the charges. It was charged that Mr. Fike included in his report a deposit of $10,005 which was not received by the bank until the morning of February 16. Witnesses for the defense testified that the bank had been notified of the deposit on Saturday, February 14, and as it did not arrive on time the books were kept open until Monday, February 16, when the deposit arrived and was entered cn the books before the bank opened for business. Fike was appointed receiver for the Valparaiso State bank, which was closed by order of the state banking board after the discovery of the shortage alleged to have been due to the management of Rey E. Lowery, which cost the state guaranty fund more/than $200,000, and later organized the Nebraska State bank and became its cashier.

5. May 17, 1923 Wahoo Newspapers Wahoo, NE
Article from Wahoo Newspapers, May 17, 1923

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RILEY SMITH IN PENITENTIARY And Has Begun Doing Time For the Ithaca Bank Robbery. Large Batch of Orders Are Entered up by Judge Corcoran the Past Week. The mandate of the supreme court has been carried out and Riley smith has gone to the pen to begin serving his sentence for bank robbery. Every technicality the law affords was exhausted before his attorneys would concede defeat. Smith was taken to the pen last Friday by Sheriff Dailey. NEW FILINGS Slama & Donato have filed a petition in district court for John M. Van Tilburg and against Melvin L. Van Tilburg, his wife; Chas. G. Van Tilburg, his wife; Emma Van Tilburg Bauer, her husband; Eva Van Tilburg Mohn, her husband; Etta Van Tilburg Imhoff, her husband; Arthur W. Cantwell, his wife; Jennie Barker, her husband; Frank E. Van Tilburg, his wife; Lonada A. Hemphill, her husband and Mrs. John M. Van Tilburg the object and prayer of which is to partition the east half of the southwest quarter of section 31, township 14, range 5, the premises originally being the property of William Volburn and by descent to his daughter, Emma L. Lee and her heirs which are parties to this suit. Robert W. McGinnis by his attorneys Dolezal, Spear, Mapes & Stevens, has filed a petition in district court against Robert J. Fleming the object of which is to recover judgment for $8,500 and interest against the defendant which is the amount plaintiff claims as damages by reason of a fraudulent and unlawful transfer of shares of Omaha Patriot Motor Co. to the Hebb Motor Co., the proceeds of which has been dissipated and lost to the plaintiff. Fleming is a non-resident and the plaintiff has filed an affidavit for writ of attachment. ORDERS ENTERED Anna Scharf et al vs. Joseph H. Maly et al. Referee finally discharged and bond released. Robert W. McGinnis vs. Robert J. Fleming. Order allowing attachment. Default of all defendants except incompetent taken. Decree conforming shares. Oscar Hanson appointed referee to make partition; bond fixed at $35,000. Anna Quass, administratrix vs. George A. Bates, et al. Evidence taken. Finding for plaintiff and against defendant Bates in sum of $35,196.89. Decree of foreclosure. John Olson vs. Village of Valparaiso. Default of defendants taken. Decree detaching property from village. Sven Paulson vs. James T. Mundy et al. Trial to court. Finding as follows: amount due Oscar Hanson $10,755.20; amount due plaintiff $11,874.15; amount due Union National Bank, Fremont, $10,785.31. Decree of foreclosure. Estate of Nels Gibson, deceased. Trial to Court. Decree dismissing appeal of claimant. Notice to appeal given in open court. Edith Mulock vs. Charles J. Marks. Continued to May 31st upon condition that defendant pay expenses incurred by plaintiff in bringing one witness from Omaha. Tonto Guice et al vs. Samuel A. Farnsworth et al. Report of referee approved. Sale of part of premises ordered. Bond of referee fixed at $5,000. E. E. Fike vs. Ray A. Lower. Petition of plaintiff to open up and set aside default. Judgment against defendant is now finally dismissed. State of Nebraska vs. Valparaiso State Bank. Receiver ordered to deliver to Frank Peterson $750 in Lincoln Telephone stock; receiver ordered to sell elevator and Dwight bank stock. Judgment in favor of Farmers & Merchants Bank of Verdun having been paid in full is ordered to be cancelled. CHURCH LEAGUE STANDING. W L Pct. Lutherans 2 0 1000 Congos 1 0 1000 Presbyterians 1 1 .500 Methodists 1 1 .500 Catholics 0 3 .000 LUTHERANS 4—METHODISTS 0. The Methodists were treated to a shut out at the hands of the Lutherans Thursday evening. Thulin shot them over so fast the M. E's. never saw them go by. Not a hit was registered which is going some. Lutherans AB R H PO A E Anderson, M., 3b 2 1 1 2 3 1 Brodahl, 1b 3 1 2 3 0 0 Soma, c 3 1 0 6 0 0 Anderson, H., 2b 2 1 1 3 1 0 Flodman, ss 3 0 1 1 0 1 Wahlstrom, rf 1 0 1 0 0 0 Johnson, H., cf 2 0 0 0 0 0 Anderson, G., lf 2 0 0 0 0 0 Thulin, p 2 0 0 0 1 0 Totals 20 4 6 15 5 2 Methodists AB R H PO A E Ruck, lf 2 0 0 0 0 0 Brown, cf 1 0 0 1 0 0 Finley, 1b 2 0 0 4 0 0 Cunningham, W., p 2 0 0 0 1 1 Cunningham, P., 3b 1 0 0 2 1 0 Brodahl, R., rf 1 0 0 0 0 0 Cunningham, C., c 2 0 0 2 1 1 Cunningham, R., ss 2 0 0 3 2 1 Meese, 2b 2 0 0 3 3 0 *Dockweiler, rf 1 0 0 0 0 0 Totals 16 0 0 15 8 3 *Substitute for Brodahl in the third. Score by innings: Lutherans 3 0 0 0 1—4 Methodists 0 0 0 0 0—0 Struck out, Thulin 6, Cunningham 2. Stolen bases, Thulin 1, P. Cunningham, 1. Base on balls, Thulin 2, Cunningham 3. Left on base, Luth-

6. May 17, 1923 Wahoo Newspapers Wahoo, NE
Article from Wahoo Newspapers, May 17, 1923

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Sven Paulson vs. James T. Mundy et al. Trial to court. Finding as follows: amount due Oscar Hanson $10,755.20; amount due plaintiff $11,874.15; amount due Union National Bank, Fremont, $10,785.31. Decree of foreclosure. Estate of Nels Gibson, deceased. Trial to Court. Decree dismissing appeal of claimant. Notice to appeal given in open court. Edith Mulock vs. Charles J. Marks. Continued to May 31st upon condition that defendant pay expenses incurred by plaintiff in bringing one witness from Omaha. Tonto Guice et al vs. Samuel A. Farnsworth et al. Report of referee approved. Sale of part of premises ordered. Bond of referee fixed at $5,000. E. E. Fike vs. Ray A. Lower. Petition of plaintiff to open up and set aside default. Judgment against defendant is now finally dismissed. State of Nebraska vs. Valparaiso State Bank. Receiver ordered to deliver to Frank Peterson $750 in Lincoln Telephone stock; receiver ordered to sell elevator and Dwight bank stock. Judgment in favor of Farmers & Merchants Bank of Verdun having been paid in full is ordered to be cancelled. CHURCH LEAGUE STANDING. W L Pct. Lutherans .................... 2 0 1000 Congos ........................ 1 0 1000 Presbyterians ............. 1 1 .500 Methodists .................. 1 1 .500 Catholics ..................... 0 3 .000 LUTHERANS 4—METHODISTS 0. The Methodists were treated to a shut out at the hands of the Lutherans Thursday evening. Thulin shot them over so fast the M. E's. never saw them go by. Not a hit was registered which is going some. Lutherans AB R H PO A E Anderson, M., 3b -- 2 1 1 2 3 1 Brodahl, 1b ---------- 3 1 2 3 0 0 Soma, c --------------- 3 1 0 6 0 0 Anderson, H., 2b -- 2 1 1 3 1 0 Flodman, ss ---------- 3 0 1 1 0 1 Wahlstrom, rf ------- 1 0 1 0 0 0 Johnson, H., cf ------ 2 0 0 0 0 0 Anderson, G., lf ---- 2 0 0 0 0 0 Thulin, p -------------- 2 0 0 0 1 0 --- --- --- --- --- --- Totals ----------------- 20 4 6 15 5 2 Methodists AB R H PO A E Ruck, lf --------------- 2 0 0 0 0 0 Brown, cf ------------- 1 0 0 1 0 0 Finley, 1b ------------ 2 0 0 4 0 0 Cunningham, W., p -- 2 0 0 0 1 1 Cunningham, P., 3b -- 1 0 0 2 1 0 Brodahl, R., rf ------ 1 0 0 0 0 0 Cunningham, C., c --- 2 0 0 2 1 1 Cunningham, R., ss -- 2 0 0 3 2 1 Meese, 2b ------------- 2 0 0 3 3 0 *Dockweiler, rf ------ 1 0 0 0 0 0 --- --- --- --- --- --- Totals ----------------- 16 0 0 15 8 3 *Substitute for Brodahl in the third. Score by innings: Lutherans --------- 3 0 0 0 1—4 Methodists -------- 0 0 0 0 0—0 Struck out, Thulin 6, Cunningham 2. Stolen bases, Thulin 1, P. Cunningham, 1. Base on balls, Thulin 2, Cunningham 3. Left on base, Luth-

7. July 26, 1923 The News Cedar Bluffs Standard Cedar Bluffs, NE
Article from The News Cedar Bluffs Standard, July 26, 1923

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COURT HOUSE NEWS. (From Wasp) Judge Corcoran and Court Reporter Sprague were here Monday. Judge Corcoran entered orders as follows: In the case of the State of Nebraska vs. Valparaiso State Bank, the receiver's attorney was allowed $600 fees and expenses as per signed order. In case of Margaret L. Wollen vs. Eugene L. Pflug, et al., foreclosure. Sale confirmed and deed ordered made to purchaser upon payment of purchase price. Report of received approved and confirmed. Receiver allowed $50 fees and his attorneys allowed $50, all to be taxed as costs. In the case of Rudolph J. Jelinek vs. Charlie Benesh, et al., partition suit. Default of all defendants taken and entered. Trial to court upon the pleadings. Finding for plaintiff. Decree conferring shares as pleaded and for partition. Louis J. Kudrna appointed referee to make partition. Report of referee approved and confirmed and sale of premises ordered. Bond of referee fixed at $6,000. In the case of Frank E. Carlson vs. heirs, devisees, etc. to quiet title to real estate. Default of all defendants was taken and entered. Trial to court upon the pleadings and evidence. Finding for the plaintiff and decree quieting title entered. In the case of Frank C. Owen, et al, vs. Village of Memphis, a decree was entered by consent as per signed order. In the case of Augusta Jacobsen et al, vs. Myrtle Jacobson, et al, partition suit. C. H. Slama was appointed guardian for the minor children. In the case of the Bank of Prague vs. Frank Kaspar, et al, on note. Trial to Court upon the pleadings, and evidence as to defendants Frank Kaspar and Thos. V. Simanek. Findings for plaintiff. Amount due $2142.40 with 10 per cent interest from July 16th. Judgment on finding. In the case of Anton Ruzicka et al vs. Herbert E. Estey, et al, the plaintiffs are allowed to amend petition to show John Doe to be Adam Green. Hearing on application for temporary injunction and bond of plaintiff fixed at $300. In the matter of Emma Miller, guardian, petition to renew mortgage etc. B. E. Hendricks appointed guardian ad litem for minor children. Hearing on application, and application granted as per signed order. B. E. Hendricks guardian ad litem allowed $10 fees to be taxed as costs. In the case of Jack Wilson, minor to sell real estate. All persons ordered by 1 p. m., July 11th, to show cause why sale should not be confirmed. Sale confirmed at 5 p. m., and deed ordered made to purchaser. The judge will be here again Thursday, July 26th, at which time several cases are to be heard. New Cases Entered. In the matter of the estate of Jan Pokorny, deceased, Maria Trutna and Teresie Pestal, daughters, petition the district court to appoint Louis J. Kudrna as trustee in the undivided estate which consists of the south half of the northeast quarter and the north half of the southeast quarter of section 18, township 14, range 7 and some personal property. The deceased executed a will on March 19 1912, leaving his property in trust with John Trutna as trustee for his wife, Frastiska, and an incompetent son, John Pokorny, and after they were taken care of the property was to go to the other three named children, Antonie Pokorny Trutna, the named trustee, Frantiska Pokorny, his wife, and the daughter Antonie, all predeceased, Jan Pokorny. John Pokorny has since been legally declared incompetent and Antonie left three minor children as follows: Edith Pokorny now aged 17, residing at Sunol, Cheyenne county; Ruby Pokorny Semenec, age 13 and Anna Pokorny Semenec, age 9, now the adopted children of Frank and Mary Semenec of Valparaiso. In view of the fact that one heir is incompetent and three are still minors a trustee is asked as per terms of the will. In the County Court. In accordance with the case just described in the district court, Marie Trutna petitions the probate court to be appointed guardian of John Pokorny, incompetent, who owns an undivided one fourth interest in the estate of the late Jan Pokorny, who died October 24, 1922. Both cases, the one in the district court and also the one in the county court are being handled by Attorneys Hendricks and Kokjer. C. H. Helm Estate. C. A. Helm of Cass county, petitions the court to be appointed ad-

8. February 14, 1924 Wahoo Newspapers Wahoo, NE
Article from Wahoo Newspapers, February 14, 1924

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COURT ORDERS Judge Corcoran held a brief session of court Wednesday and made the following orders: Nellie Chrischillies vs. Edmund Chrischilles. Decree of divorce modified to require defendant to make payments of support as therein directed. Hugo Saathoff vs. Frieda Maynard et al. H. E. Kokjer appointed guardian ad litem. Default of defendants except minors taken. Finding for plaintiff. Decree confirming shares of parties. E. E. Fike appointed referee. Report of referee approved and confirmed and sale of premises ordered. Annie Danielson vs. Ida Benson et al. Default. Trial to court on pleadings and evidence. Finding for plaintiff. Decree of partition. H. A. Wiggenhorn appointed referee. Report of referee confirmed and approved. John M. Van Tilberg vs. Melvin L. Van Tilberg. Attorneys for plaintiff allowed to file written proofs of nature of services if they so elect. Plaintiffs and defendants and intervenors severally except to order of Jan. 30 fixing fees and give notice of appeal in open court. State of Nebraska vs. Valparaiso State Bank. Receiver ordered to turn over assets to department of trade and commerce.

9. October 11, 1924 Fremont Tribune Fremont, NE
Article from Fremont Tribune, October 11, 1924

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CLARKSON Clarkson, Oct. 11—William Houfek, eleven-year-old son of Mr. and Mrs. Jos. F. Houfek, living southeast of Clarkson, is suffering from a dislocation and fracture of one of his arms. He was taken to the Schuyler hospital. The injury was caused by a fall from a horse. Emil Folda of this city was appointed receiver of the defunct Valparaiso State bank. The bank failed some time ago and another receiver had been in charge but as he was not satisfactory, Mr. Folda was placed in charge. This makes Mr. Folda the receiver for seven failed banks. Mr. and Mrs. Emil Tomes were visiting relatives in Newman Grove and Elgin. Mr. and Mrs. Jos. M. Mundil, their son, Joseph, and Adolf Vitek, left by automobile for various points in Kansas and Oklahoma. Miss Emma Maliba spent a few days in Omaha, purchasing a large stock of holiday goods for her store.

10. January 15, 1925 Fillmore County News Exeter, NE
Article from Fillmore County News, January 15, 1925

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REAL ESTATE TRANSFERS Clay Thomas, Co. Treas. to C. S. Stov er. tax d, taxes, lots 17, 18, 19 b 26, Grandview add. Geneva. Thomas Ryan and wife to Ollie Kotcous, wd., 8,500.00, pt. SW% 20-8-1 14 acres. win D. Swails and wife to Guy L. Ketchem and wife, qe., 1,000, W% NE%. 21-6-3. lparaiso State Bank, by receiver .0 Emil Folda, receiver, rec, d. 1.00 int. in W½ SW% and S½ NW% 22 and NW% NW% 27-7-2.

11. January 23, 1930 The Brainard Clipper Brainard, NE
Article from The Brainard Clipper, January 23, 1930

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10 YEARS AGO A fine baby boy arrived at the home of Mr. and Mrs. Emil Dusatko, on Wednesday January 21. The two Joes-Klien and Pribyl went to David City Thursday, where they have some mason work. Mr. Frank Kucera who is chief clerk in one of the general office of the Union Pacific in Omaha, accompanied by his wife and children, came Saturday for a visit in the home of his father Anton Kucera. The Valparaiso State Bank was closd Tuesday, by order of the state banking board. Failure was brought on by the management and reckless business methods of R. A. Lower former cashier and owner. According to officials the shortage which was caused by oil stock and irrigation speculations ranges between 150 and 175 thousand dollars. W. C. Elmelund, president, J. B. Tomes assistant cashier, are held in no way responsible for the insolvency. This bank is capitalized at 000. 00 with deposits of $400, 000 00.