76-0211June closing the board directors of Nebraska State bank of Bloomfield today by Governor Bryan. The bank taken over by Examiner Haines. Gossard was president; Mueller. W. assistant cashier. Deposits to capital was $25,000, and surplus,
A press dispatch from Bloomfield, Nebr., says: Altho the drouth, the grasshoppers and bank failure temorarily caused Bloomfield business men to suspend their strictly cash basis business, the merchants in this town of persons again have put their away For more than three Bloomyears field citizens for everything. Even tho the drouth came and brought hardship to butcher, baker, and all other merchants, the cash basis prevailed. Then came the grasshoppers to play havoc with growing crops. The merchants still took cash for their sales, however. The cash system continued until about month ago when the Nebraska State bank closed, tying more than in deposits. Credit was restored for few days, but now the merchants are back on their cash basis, and all are satisfied. The all cash system was the idea of Dr. B. Lonergan.
District Court Upholds Right to Pledge Assets in Test Case.
C. Radke, attorney for Secretary Luikart the department trade and commerce, returned from Center Saturday with an der from District Judge Stewart of Norfolk authorizing Mr. Luikart as receiver to pledge sets failed Nebraska State Bank of Bloomfield for loan $50,000 from the Finance corporation of the federal government. Before order carried out the application Mr. Luikart must be appealed the supreme court of Nebraska for final decision, that being the condition under which the finance corporation make banks in states which have no specific ute receiver to pledge assets failed bank for loan. To give the district court all the possible on the application receiver, Meserve Creighton, appeared and to the order and the merits of the case (Continued on Page 8.)
District Court Upholds Right to Pledge Assets in Test Case.
F. C. Radke, attorney for Secretary Luikart of the department of trade and commerce, returned from Center Saturday with an order from District Judge Stewart of Norfolk authorizing Mr. Luikart as receiver to pledge the assets of the failed Nebraska State Bank of Bloomfield for a loan of $50,000 from the Reconstruction Finance corporation of the federal government.
Before the order is carried out the application of Mr. Luikart must be appealed to the supreme court of Nebraska for a final decision, that being the condition under which the finance corporation is to make loans to state banks in states which have no specific statute authorizing a receiver to pledge assets of a failed bank for a loan.
To give the district court all the light possible on the application of the receiver, W. A. Meserve of Creighton, attorney, appeared and filed voluminous objections to the order and the merits of the case
(Continued on Page 8.)
Lincoln, Sept. Direcand stockholders the Nebraska State bank of Bloomtoday appealed to the braska court from Knox decision authorizing the county receiver to borrow $50,000 the Reconstruction Finance to test the validity state banking department ask the loans certain court The loan sought to proval. slower assets hope the
Lincoln, Sept. 10. (AP)—Directors and stockholders of the failed Nebraska State Bank of Bloomfield Friday appealed to the Nebraska supreme court from a Knox county decision authorizing the bank's receiver to borrow $50,000 from the reconstruction finance corporation.
The appeal is to test the validity of such loans, as the state banking department was unwilling to ask the loans until certain of court approval. The loan is sought to permit a slower liquidation of the bank's assets in the hope that more can be obtained by the delay.
Appeal Bank Loan Test to High Court
LINCOLN, Sept. tors and stockholders of the failed Nebraska State Bank of Bloomfield Friday appealed to the Nebraska supreme court from Knox county decision authorizing bank's borrow $50,000 from the Reconstruction Finance Corp. to test the validity such loans, as the state banking unwilling the loans until certain court approval. The loan sought to permit slower liquidation the bank's assets in the hope that more can be obtained by the delay.
Bank Receiver To Argue R.F.C. Loan Rights On Jan. 17
Whether the receiver of a failed state bank is permitted under Nebraska law to borrow from the Reconstruction Finance corporation will be argued before the Supreme court on Tuesday, January 17.
The test case brought in Knox county seeking approval of a $50,000 loan on assets of the failed Nebraska State bank of Bloomfield. The call for all cases to come before the court the week beginning Monday, January 16, was given out Saturday by Clerk George H. Turner.
BANKRUPTCY FILINGS.
Bankruptcy action was brought by three Beatrice persons against the Beatrice Theater and Realty Corp., in Federal court here. The three petitioners, holding claims totalling $7,257, are: George and Alma Monroe and Earl M. Marvin. They allege the defendant company has committed acts of bankruptcy.
The courts may authorize the receiver of a failed bank to borrow money from the Reconstruction Finance corporation on the assets of the closed institution, the Nebraska Supreme court held in a decision Friday.
The case which the court rules on was brought as a test to determine whether the assets of failed banks could be pledged for an R. F. C. loan. The Nebraska State bank of Bloomfield, of which E. H. Luikart is receiver, was involved.
It was argued that the court did not have the power to authorize the proposed R. F. C. loan although it was admitted in the case that it would be for the best interests of the bank, its stockholders, creditors and the community. The Supreme court held that, in conditions of this kind where it is for the best inter-
(Continued on Page Six.)
Reconstruction Finance Corporation Money Available, Court Says.
In an opinion by Justice Eberly, entered Friday, the state supreme court, from Knox county, held the district court bank borrow money from the struction the assets the trust pledge made that for the appear interests the trust borrowing adds, are not rights claims depositors first lien upon assets the state court it may be true arisen within the legislation when banking were enacted. Nevertheless, properly equity jurisdiction. that one of of the Finance furnish prompt relief cases character, and where there anything the depositors first liens the court equity dispose affect property stated. In short, neither the law denor any the the the choice directexercising methods for the ing in managing disposing of the inescapable that when done do the avails of all property remain the imperative duty imposed on equity administering the affairs banks minimize losses to the public and possible creditors. The involved was the Nebraska State Bloomfield. drouth the unsalability farm put pressure upon debtors the would be oppressive and for this the desired to secure the him to defer and time debtors new crop comes.
Closed Bank Receiver in Nebraska Wins Test Case
Lincoln, Neb.-Special: The state supreme court, in a case involving the Nebraska State bank of Bloomfield, held that the district court may authorize the receiver of a failed bank to borrow money from the Reconstruction Finance corporation and to pledge the assets of the trust to secure the loan, when it appears that such action is for the best interests of the trust estate. The opinion, written by Justice Eberly, adds that such borrowing and pledging are not in violation of rights of claims of unsecured depositors given a first lien on the assets by state law. The receiver of the Bloomfield
The bank involved in the test case was the Nebraska State Bank of Bloomfield. The receiver desired to secure a loan from the R. F. C. so collections could be deferred and time extended to debtors until a new crop is harvested and sold.