Dunbar State Bank (Dunbar, NE)

Episode Information

Episode UID
7990773491529
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
799077349 hash
Start Date
May 1, 1927*
Location
Dunbar, Nebraska (40.668, -96.030)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
00bbf84e02f9a543

Response Measures

None

Description

No contemporaneous run described; bank was taken over by the Guaranty Fund Commission and placed in receiver control.

Events (2)
1. May 1, 1927* Suspension
Cause
Government Action
Cause Details
Bank was taken over by the Guaranty Fund Commission and operations suspended; receiver appointed.
Newspaper Excerpt
spectacular failure the Dunbar State Bank
Source
newspapers
2. April 26, 1928 Receivership
Newspaper Excerpt
taken over by the Guaranty Fund Commission more than year ago; suit ... started ... before District Judge ... the Dunbar bank was taken over by the Guaranty Fund Commission more than year ago. (article 3 and others describe receiver actions and suits.)
Source
newspapers

Newspaper Articles (14)
1. May 15, 1927 Nebraska City News Press Nebraska City, NE
Article from Nebraska City News Press, May 15, 1927

Click image to open full size in new tab

Article Text

LITIGATION IN FAILURES State Bank Receiver gins Action Against Grain Company The first of what is predicted to be long list civil actions arising from the spectacular failure the Dunbar State Bank and the financial troubles of the Dunbar Grain Company, interlocking concerns insofar as the bank's failure is concerned, was filed in district court Saturday Receiver for the Dunbar State Bank whose president. Thomas Murray, is a much-sought fugitive from justice in dozen states and two or three foreign countries. brought suit Saturday against the Grain Company on three counts. The Bank alleges that the Grain Company, whose manager Burton Gorton faces prosecution on charges. embezzlement amounting to more than had an overdraft of $1,695.36 at the time of the bank's closing, and owes two notes, past due, one for $4,000 and another for $2,500. Stockholders of the grain company are substantial farmers living in and near Dunbar but the summons in the case is directed only against the Dunbar Grain Company.

2. September 21, 1927 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, September 21, 1927

Click image to open full size in new tab

Article Text

BY Witnesses in Trial of Dunbar Banker Testify He Speculated Thru Nebraska City Firm. NEBRASKA CITY. Neb., Sept. which used when he was speculating the board of trade were Identified by witnesses this morning in the trial of Burton Gorton. Dunbar. who facing charges of bezzling more than connection with the Dunbar State defunct. Checks the Duff Grain com pany of Nebraska City, Gorton's were identified witnesses teath fied that had specuated on the board trade thru the NeCity grain firm. Concerning the reported confession Gorton the Dunbar Grain board of directors, which of the board, told the court of he and the defendant had some time the Borcherding said he asked Gorton. grain company broke The bank busted and Tom Murray missing president the Dunbar State bank) gone. We all bad Tom have been unlucky. gone, going "Gorton he wanted to make good,' Borcherding continued. said he was willing turn and willing devote the rest of life straightening out The state to complete its case early Wednesday afternoon. The defense not pected to take up much time and thought the jury would given case for deliberation Wednesday night.

3. April 26, 1928 Nebraska Daily News-Press Nebraska City, NE
Article from Nebraska Daily News-Press, April 26, 1928

Click image to open full size in new tab

Article Text

Omaha Bank Sues Dunbar Institution Trial of the suit of the United States National Bank of Omaha against the Dunbar State Bank to collect $5,000 on a note which was sold to the Omaha institution by Thomas Murray, former head of the Dunbar bank. was started Wednesday before District Judge James T. Begley. The Dunbar bank, Murray and Henry Kasbohm were named defendants in the original petition Kasbohm. however, was dismissed as one of the defendants by Judge Begley. He alleged that if his signature were on the note in question. it was forgery. The suit is one of a number that have been instituted since the Dunbar State Bank was taken over by the Guaranty Fund Commission more than year ago. The case was continued to May 8 to premit introduction of additional bank records.

4. August 26, 1928 Nebraska Daily News-Press Nebraska City, NE
Article from Nebraska Daily News-Press, August 26, 1928

Click image to open full size in new tab

Article Text

MURRAY ASKS he informs the Although court that there is no cash in his hands available for the immediate payment of any claims which be allowmay at this time, Dempster. of the Guaranty Fund Commission, and receiver for the deDunbar State Bank, says he funct knows of "no defense" against total of 212 claims of creditors. This information contained in Dempster's report filed in District Court late Saturday, signed by Dempster and sworn to before M. L. Ralston, notary public.

5. September 2, 1928 Nebraska Daily News-Press Nebraska City, NE
Article from Nebraska Daily News-Press, September 2, 1928

Click image to open full size in new tab

Article Text

BEGLEY CLAIMS Contested Cases Will be Heard at Later Session total of 212 claims of creditors of the defunct Dunbar State Bank was allowed Saturday in District Court by Judge James Begley. These were the claims listed "valid" in the report filed in District Court week ago by Dempster of the Guaranty Fund Commission, and receiver for the bank. Judge Begley entered judgment in favor of the 212 claimants against the Guaranty Fund Commission In the matter of numerous other claims which Receiver Dempster says subject to valid defense, Judge Begley ordered the claimants eto fil petitions in intervention within 20 days, and gave the ceiver until October to answer. Hearing Set for Oct. 30 Hearing on the contested claims was set for 10 October 30. Included among these claims is the of Otoe County. Thomas Murray, former president of the closed bank, who claims total of $15,466.34 as balance due upon checking accounts, has assigned to another party who will seek payment in court contest. Saturday's hearing on the bank receiver's report attracted number of persons to the court room. Attorneys were conspicuous, nine of them interested in the case. Dempster Present Among others present was E. Dempster of Geneva, Neb., receiver for the bank and member of the Guaranty Fund Commission Asked by representative the creditors of the closed bank would receive 100 cents on the lar. Mr. Dempster stated that he could not make any prediction. "Payment will be according to liquidation of assets of the bank," was one comment he made. Another comment was that "the amount of recovery of depositors will depend on the future of the (Turn to Page 2; Col. Please)

6. December 12, 1928 Beatrice Daily Sun Beatrice, NE
Article from Beatrice Daily Sun, December 12, 1928

Click image to open full size in new tab

Article Text

Banker Taken From Prison To Testify Nebraska City, Nebr., Dec. 12 Murray convicted president of the Dunbar State bank, was brought here LILA LEE from state prison yesterday BENNETT to take the witness stand in his case against the state guaranty commission for $15,000 which he claims was on deposit in the bank at the time was taken over by the commission. Murray tetified the money was held in trust by him to protect Henry Kashohm, the man whose testimony had largely to do with his conviction on forgery charges was for the forgery of the Kasbohm note that Murray was found guilty. This note was sold to the Omaha National bank by Murray, who testified the money placed to his credit in the Dunbar State bank as trustee: Murray is being used as witness in many of the contested claims of bank depositors and will probably remain here during the three day session of court.

7. December 21, 1928 Nebraska Daily News-Press Nebraska City, NE
Article from Nebraska Daily News-Press, December 21, 1928

Click image to open full size in new tab

Article Text

$57,974.67 NOT ON BANK'S BOOKS an attack of influenza are greatly Cleveland's. 12-tf SALESMEN WANTED Receiver Files Detailed PILES FISTULA, and all rectal AUTOMOBILE SALESMEN To Report in Dunbar diseases cured with mild meth- sell one of the best selling cars od, very little surgery, no chloro- on the market. Experience requirBank Case form, ether or general anesthetic ed. Must be hustler Barning ride may treatment and reClaims which have been in disturn home the same day. DR. JAS. Address Box 24 News-Press. 12-20 S. WILSON, Nebraska City, Neb. pute against the defunct Dunbar Tel. 308 12-23 AUTOMOBILE TIRES State Bank, and which have not been on the books of the bank, MISCELLANEOUS TIRE SALE-Special sale on tires, total $57,974.67, according to a deand accessories. These are tailed report submitted to District OLD STYLE leap year dance Hip- all Ajax tires and tubes. podrome, Saturday, De- tires Court here by E. J. Dempster, Receinber 22. A surprise some $5.25 $1.25 ceiver. lady. All welcome. Ladies 60c gents 6.50 1.25 free. 12-30 32x4 12.00 1.85 29x4:40 7.50 1.65 GASOLINE 18c 29x5:00 9.00 1.90 Including tax. Pump 7:30 a. PHILIP CHRISTMAN Bills Receivable m. STEVENSON COAL Syracuse, Neb. Tel. 290. 12-26 COMPANY. 8-13tf HAIR DRESSING Judgments RUBBER STAMPS can be made Furniture and Fixtures here at home for less than I HAVE taken over the beauty Other Assets outside firms charge. Give your shoppe the United Millinery. Real Estate orders for rubber stamps to D. Try us for your next marcel. CLARA Trust Fund MANROSE. Phone 830. NICHOLS, United Millinery Beauty Cash (and due from Shoppe. 12-20 $186,452.55 36,124.32 2,000.00 2,805.10 18,927.56 9,793.40 10,215.85 for Kristmas. He will appreciate TRACTORS Claims Established it every day of the year. The only (not on bocks) 6,959.52 safety razor strop sold that FOR SALE-One 15/27 Case tractor Claims in Dispute guaranteed for 10 years or with 30 6 Fordson tractors, two 1-ton Ford (not on books) 57,974.67 day free trial guarantee. For trucks; one 6-hole corn sheller, one Loss on Assets 8,146.33 demonstration and further infor2-hole corn sheller. WEST, Tel. mation Tel. 277J. 12-8tf Expenses Paid Nebraska City 252, Dunbar 12. 12-20 Legal Expense 40.93 Total $341,136.46 FOR SALE-A new National Cash CORN SHELLING-I am now in The bank's liabilities 26 of Sepregister. PHILIP CHRISTMAN, position to do your corn shelling tember 30, 1928, include $113,041.96 Syracuse, Neb. Tel. 290. 12-26 as have purchased new sheller representing claims in dispute, and ARTHUR HEESCH Tel. 3704. 12-23 FOR SALE-Norwich canaries, in $177,753.81 in preferred claims, full song. real Christmas gift. which together with other liabiliMRS. L. G. TRIDLE, Tel. 942. 405 In Justice Court ties, are listed as totaling $341,136.46 4th Corso. 12-24 in liabilities.

8. February 27, 1929 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, February 27, 1929

Click image to open full size in new tab

Article Text

COMMISSION TAKES APPEAL Nearly $40,000 in Judg ments Against Guaranty Fund. The guaranty fund commission appealed Wednesday supreme court from judgment of Judge Begley that John T. Mead is entitled to $1700 on certificates of deposit in the Dunbar State bank. The receiver resisted on the ground that the claim was filed out of Mead said that he got claim blank from the man in charge, and this was found filed in the Appeal also taken from a finding that held the fund liable for $10,000 additional deposits in the Dunbar These have to do with trust funds that were deposited in the name of Thomas Murray, special and Thomas Murray, trustee, the benefit of the First of Omaha in the sum of $5,000 and in favor of Henry Seyfert, James Murray, Earl Seyfert and H. S. Westbrook in similar There was still another $5,000 claim that was pressed, but the court said the evidence was not sufficient determine the ownership. The receiver claimed these really deposits for the benefit of Murray, who was president, and who later absconded, only to be returned. He said Murray was not entitled to judgment since he owed the bank $40,000. Murray claimed no right in the funds, and the court said that they could not offset against his debt the bank. Appeal was also from an allowance of $28,023 in favor of L. Kelly, county treasurer, on deposit in the same bank. The recelver claimed this was in excess of the lawful amount the treasurer was permitted to deposit, and that the amount is otherwise secured by surety bond that constituted collateral agreement that leases the guaranty fund from

9. February 27, 1929 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, February 27, 1929

Click image to open full size in new tab

Article Text

TAKES APPEAL Nearly $40,000 in Judgments Against Guaranty Fund. The guaranty fund commission appealed Wednesday to the supreme court from judgment of Judge Begley that John T. Mead is entitled to $1700 on certificates of deposit in the Dunbar State bank. The receiver resisted on the ground that the claim was filed out of time. Mead said that he had got claim blank from the man in charge. and this was later found filed away in the records. Appeal also taken from finding that held the fund liable for $10,000 additional deposits in the Dunbar bank. These have to do with trust funds that were deposited Murray, in the name of Thomas special and Thomas Murray, trustee. for the benefit of the First National bank of Omaha in the sum of $5,000 and in favor of Henry Seyfert, James Mur ray, Earl Seyfert and H. West brook in similar sum. There was still another $5,000 claim that was pressed. but the court said the evidence sufficient to determine the ownership. The ceiver these were really deposits for the benefit of Murray, who was president, and who later only to be returned. He said Murray not entitled any judgment since he owed the bank $40,000. Murray claimed no right in the funds, and the court said that they could not be offset against his debt to the bank. Appeal was taken from of $28,023 in favor of Kelly, county treasurer. on deposit in the bank. The receiver claimed this was in excess of the lawful the was permitted to deposit, and that as the amount is secured by surety bond that constituted collateral agreement that leases the guaranty fund from liability

10. December 2, 1929 Kearney Hub Kearney, NE
Article from Kearney Hub, December 2, 1929

Click image to open full size in new tab

Article Text

OFFICIAL AWAITS HEARING Westbrook Is Arraigned In the County Court. City, Neb., Dec. not guilty the charge deposit when he bank was insolvent. HenWestbrook, vice president of the failed Dunbar State bank, arraigned in county court Saturday and today awaited preliminary hearing Thursday. Friends furnished the $2,000 ball for him after County Attorney Heinke had objected the suggestion that Westbrook permitted to home on his own recognizance. William H. Pitzer appeared Westbrook's attorney at the The banker's prosecution comes more than years after the closing the Dunbar bank. Thomas president, and Burton Gordon, Murray's are now serving in the state penitentiary charges growing out of the bank crash.

11. April 11, 1930 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, April 11, 1930

Click image to open full size in new tab

Article Text

COURT DECLINES TO RULE UPON MATTER Says Only Moot Question Remains About Bank Receiver's Right to Appeal. An order was entered by the supreme court Friday affirming the action of the district court of Otoe county in ordering the receiver of the Dunbar State bank to pay to Henry G. Seyfer, Earl Seyfer, H. S. Westbrook and James Murray $784.70 out of the assets of the bank. The four had filed claims of $4,000, and the remainder of the sum was ordered paid out of the guaranty fund. The claims represented bonafide deposits and the court says the holders of the certificates are entitled to the 22 percent dividend declared, or $784.70. Another controversy between the same parties in which a $5,000 deposit was the stake was dismissed. The court had once before sustained the lower court in ordering the 22 percent dividend paid and giving judgment against the guaranty fund for the remainder. Before the transcript reached the supreme court the claimants asked the district court for premptory order to pay the dividend of $1,100 on the ground that the receiver had failed to supersede the judgment and had not obtained permission to appeal. The district court sustained the motion, and the receiver thereupon perfected a second appeal. In supreme court the claimants renewed the motion to dismiss because the receiver had not obtained permission to appeal, but this was overruled. The court says that the first appeal having been decided, there remains nothing but the moot question of whether the receiver must get permission of the lower court to appeal, and moot questions will not be determined by it. The former order overruling the motion is therefore vacated and the second appeal dismissed at the cost of the receiver.

12. April 11, 1930 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, April 11, 1930

Click image to open full size in new tab

Article Text

COURT DECLINES TO RULE UPON MATTER Says Only Moot Question Remains About Bank Receiver's Right to Appeal An order was entered by the supreme court Friday affirming the action of the district court of Otoe county in ordering the receiver of the Dunbar State bank to pay to Henry G. Seyfer, Earl Seyfer, H. S. Westbrook and James Murray $784.70 out of the assets of the bank. The four had filed claims of $4,000, and the remainder of the sum was ordered paid out of the guaranty fund. The claims represented bonafide deposits and the court says the holders of the certificates are entitled to the 22 percent dividend declared, or $784.70. Another controversy between the same parties in which a $5,000 deposit was the stake was dismissed. The court had once before sustained the lower court in ordering the 22 percent dividend paid and giving judgment against the guaranty fund for the remainder. Before the transcript reached the supreme court the claimants asked the district court for a premptory order to pay the dividend of $1,100 on the ground that the receiver had failed to supersede the judgment and had not obtained permission to appeal. The district court sustained the motion, and the receiver thereupon perfected second appeal. In supreme court the claimants renewed the motion to dismiss because the receiver had not obtained permission to appeal, but this was overruled. The court says that the first appeal having been decided, there remains nothing but the moot question of whether the receiver must get permission of the lower court to appeal, and moot questions will not be determined by it. The former order overruling the motion therefore vacated and the second appeal dismissed at the cost of the receiver.

13. July 10, 1931 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, July 10, 1931

Click image to open full size in new tab

Article Text

COURT CAN'T GIVE RELIEF Man and Wife Paid Same Debt Twice and All Own Fault. Monto Lowrey and his wife were denied recovery by the supreme court Friday from the receiver of the Dunbar State bank for the $2,652 they paid him on a note he held. This was the second time they paid the debt. Te first note they signed was sold by the bank to New York bank. At the time they paid the money to the receiver there was some discussion as to their liability on the other note, but the Lowreys claimed that the receiver told them and they claimed in the lawsuit that it was a forgery. Later they were compelled in suit to pay the note held by the eastern bank. The receiver said he never told them it was forgery. The court says they are estopped from asking relief, and invokes the old rule of law that where one of two innocent parties must suffer then the one whose oversight or neglect has made the occurrence of the event possible must suffer rather than the one who is entirely without blame. The two notes were in fact duplicates, given for the same debt, and the court says that caution would have required that before paying the note held by the receiver they should have had the other one forwarded for their examination to ascertain if it were forged.

14. July 10, 1931 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, July 10, 1931

Click image to open full size in new tab

Article Text

COURT CAN'T GIVE RELIEF Man and Wife Paid Same Debt Twice and All Own Fault. Monto Lowrey and his wife were 85 denied recovery by the supreme court Friday from the receiver of the Dunbar State bank for the $2,652 they paid him on note he held. This was the second time Smart modes they paid the debt. Te first note fashionable summer they signed was sold by the bank colortones! to New York bank. At the time they paid the money to the receiver there was some discussion as to their liability on the other 300 MORE SMART BERETS AT LESS 20% note, but the Lowreys claimed that the receiver told them and they claimed in the lawsuit that it was (See Window) GOLD'S-Third Floor a forgery. Later they were compelled in a suit to pay the note held by the eastern bank. The reJuly Clearance of Women's ceiver said he never told them it was forgery. The court says they are estopped from asking relief, and invokes the old rule of law that where one of Summer Footwear two innocent parties must suffer then the one whose oversight or neglect has made the occurrence of the event possible must suffer rather than the one who is entirely without blame. The two notes Formerly 6.95 to 10.50 were in fact duplicates, given for the same debt, and the court says that caution would have required Not all sizes in any that before paying the note held by the receiver they should have style but many the other one forwarded for styles in most sizes their examination to ascertain if Ties Pumps! it were forged.