First State Savings Bank (Superior, NE)

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NEBRASKA SAVINGS BANK CLOSES DOORS SUPERIOR, Neb., March 6.-The First State Savings bank of this city was closed today upon the action of bank officials, and announcement made that the institution was in charge of the state banking board. Heavy demands of depositors, following the failure of the First National bank of Superior, with which the savings bank was formerly affiliated, are reported to have necessitated the closing of the doors today. Guy M. Seeman of this city was appointed receiver of the bank. The last statement of the bank showed liabilities of nearly $139,000.

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MILLION REMAINS IN GUARANTY FUND Sight Drafts on State Banks Sent Out to Reimburse Depositors in Decatur Institution. JUDGE MUNGER IS ILL (From a Staff Correspondent.) Lincoln, Oct. 12.-(Special.)-Sight drafts on 840 state banks for the amount due from each one as its proportion of the state guaranty fund to pay depositors in the failed Farmers' State bank of Decatur are being mailed today from the office of the state banking board to D. D. Whitcomb, the receiver for the defunct institution. The total sum drawn out \of the fund for payment to depositors is $79,051.81. The largest amount contributed by any one bank is 0674.44, that being the share of the First Savings bank of Lincoln. The smallest draft is on the First Savings bank of Aurora for $4.46. Over Million Left. After this money is withdrawn from the guaranty fund there will still be left a little more than $1,100,000. The Decatur failure is the second one since the guaranty fund was established. In the case of the First State Savings bank at Superior $54,000 was withdrawn out of the fund several years ago and paid to its depositors. The assets of the bank are expected to yield enough practically to reimburse the guaranty fund. Judge Munger Ill. Judge T. C. Munger of this city is suffering from a carbuncle and will be unable to preside at the rate hearing in Omaha next week when the federal court hears the squabble between the railroads and shippers on class rate order No. 19. Judge Munger has been confined to his home for a week. Law Still in Effect. Secretary Thorne Browne is considerably mystified to unearth the purported repeal of a state law when the legislature has not been in session for over eighteen months. An elevator man sent in a notice which he had received sent out by the Burlington station agent at Marquette, that the Nebraska law in regard to the distribution of grain cars had been repealed. Secretary Browne wants it understood the law is in effect, notwithstanding the notice. from the agent. Ward Under Arrest. Penitentiary officials have been notified that Erett G. Ward, who ascaped from the Nebraska penitentiary on July 7, has been arrested at Houston, Tex., and Warden Fenton has left to bring him back. Ward made his escape while a ball game was in progress at the penitentiary. He was sent up from Dodge county to serve one to seven years for forgery.

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Legislature Would Know of Superior Bank Receivership (From a Staff Correspondent.) Lincoln, March 11.-(Special.)Representative Swanson introduced the following resolution this afternoon in the house and the same was adopted: Whereas, The First National bank of Superior failed March the 6th, 1914. Whereas, The reserve funds of the First State Savings bank of Superior were deposited in the defunct National bank, foreing the said Savings bank to suspend business, and Whereas, The state banking department drew out of the guarantee fund $54,526.17 with which to reimburse the depositors, not a cent of which has been returned to said fund, therefore be it Resolved, That the state banking department be and is hereby requested to submit to this house information concerning the present status of the affairs of the aforesaid defunct Savings bank, the amount recovered from the securities held by said bank, the total cost of receivership including attorneys fees and all other expenses to date, the time when the money collected may be expected to be returned into the guarantee fund and the probable amount which will thus be returned, Be it further Resolved, That the clerk be instructed to transcribe and deliver a copy of these resolutions to said state banking department.

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BANK RECEIVER TO BE DISCHARGED

From the State Journal:

"The receivership of the First State Savings Bank of Superior, a bank that failed nine years ago, is soon to be wound up and the receiver discharged. This bank was the first state bank to fail in 1914 after the present bank guaranty law went into effect. Its depositors were immediately paid from the guaranty fund, but the receivership has continued ever since, owing to litigation of long duration involving assets which were in the bank when it was closed. There have been two receivers.

When the bank guaranty commission recently came into existence it found that the receiver had made a final report in 1921 but had not been discharged by the district court. The attorney general and the commission were of the opinion that every possible step had been taken to collect on assets of the bank with the exception of the enforcement of double liability of stockholders. The two departments agree now that the stockholders are insolvent and the double liability is uncollectable. The district court has the matter under advisement and investigation.

Records in the office of Secretary Van E. Peterson of the guaranty fund commission show that George M. Seeman was appointed receiver of the First State Savings Bank of Superior March 10, 1914. He was succeeded by C. W. Harvey November 13, 1916. His final report was filed in 1921 but no action was taken at that time.

April 18, 1914, $54,526.13 was drawn from the bank guaranty fund to pay depositors in full. The amount since returned to that fund by sale of assets was $35,870.16. The loss incurred by the failure was $18,656. The First National Bank of Superior which failed had transferred notes amounting to $46,576.92 to the savings bank. The courts directed the return of notes amounting to $21,846 to the First National Bank.