Bank closed in late December 1925 after disappearance and misapplication of funds by C. L. (L.) Flack; receiver (Charles A. LaBree / John C. Cuneo as estate receiver) appointed and bank remained defunct with receiver actions and dividend distributions — no run described in the articles.
Events (5)
1.July 30, 1913Chartered
Source
historical_nic
2.December 1, 1925*Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closure followed disappearance and misapplication/theft of bank funds by C. L. (L.) Flack, chairman/president; overdraft and missing funds caused failure to open in late December 1925.
Newspaper Excerpt
First National Bank of Riverbank was closed by the National Bank examiner when $14,000 found gone from the bank's funds; Flack was accused of misapplication of the money
Source
newspapers
3.December 28, 1925Receivership
Source
historical_nic
4.December 29, 1925Receivership
Newspaper Excerpt
appointment receiver of the First National Bank of Riverbank today by E. Harris, received examiner who closed the bank; Charles A. LaBree, as receiver of the defunct First National Bank of Riverbank, ... was appointed receiver (articles late Dec 1925–Jan 1926).
Source
newspapers
5.August 9, 1926Other
Newspaper Excerpt
Depositors of the First National Bank of Riverbank, closed last December by the default of C. L. Flack, ... will be paid a dividend of 30 per cent, beginning next Monday, August 9th, Charles A. LeBree, receiver.
Source
newspapers
Newspaper Articles (15)
1.December 29, 1925Alameda Times StarAlameda, CA
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OF WORLD
FROM FAR AND NEAR EVENTS
United
Convict Marrione, had escaped from Folsom months ago, penitentiary the Malibu mountains retaken near here early today.
Will AnDempsey Dempsey, by Estelle Taylor, his panied is arranging exhibibouts to be staged soon tion tourist cities in leading
Shrine Head Leaves Burger potentate of the imperial Mystic Shrine, left Nobles the for San Francisco after today annual visit here.
Inventor Angeles. Harry O'Neill severely today when furnace burned with he using in secret formula for The Hurst of cement exploded. building Sash and Door company burned ground with damage of $25,000.
Invalid Ends having thrown of railroad himself front Brighton last night, train Donald dead today. He had long was been ill.
Fees to Be Eliminated Grazing of the livestock depression in the fees industry grazing number of nafor will be eliminated tional forests of Secregreater part Agriculture Jardine tary nounced today.
Ford Planes the fuel tanks the four all-metal planes of route from the Ford airport establish Dearborn freight line in Florida, and of the today caused of the flight until morrow.
Death Probe will be held investigate suicide Fred Ernstman. here last night Ernstman hanged himself the residence of his daughter, Mrs. Duyer.
Boys Rescue and his brother. Richard. today saved their Mr. and Chester from burning to death when partially the family residence here. The boys carried their unconscious mother the house and then led from father out he was succumbing the smoke fumes
Bank Receiver Announcement the of Charles Laraappointment receiver of the First Nabee tional Bank of Riverbank today by E. Harris, received examiner who closed the bank days Harris Flack, with misapplication of bank's funds, is still at the large.
Air Mail Lines Start SoonSalt Lake City Los Angeles by the Express. of Los AnAir and the Elko to Pasco, geles, air mail lines probably will start April. new lines operated by private comwill allowed panies and freight in addipassengers tion.
Red Poet Ends last scribbled his poem Essenin, eccentric of Isadora Duncan, yesterday committed dancer. in
2.December 29, 1925Santa Rosa RepublicanSanta Rosa, CA
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Suit Filed Against Banker of Riverbank
United Press) -Sult against L. Flack missing Riverbank bank the First National Bank of Rivers bank, claiming $3500 for back salary and $2500 promis sory note was on file here today The Riverbank financial institu tion was closed by the National Bank examiner when $14.000 found gone from the bank's fun Flack was accused of misapplica tion of the money and is DOV sought for arrest,
3.January 26, 1926The RecordStockton, CA
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BANK RECEIVER WANTS TO SELL PART OF REALTY
MODESTO OFFICE STOCKTON RECORD, Jan. 26.-Requesting authority to sell property Io. cated in the Las Flores tract in the city of Modesto, Charles A. LaBree, as receiver of the defunct First National Bank of Riverbank, yesterday petitioned the Superior Court here According to the petition, the property subject to several liens and is of a fluctuatvalue. He alleges that he has an op. portunity sell the property for $1050, and adds that the sale the property necessary to the of the assets the bank in order that the affairs of the bank may be as rapidly settled as possible
4.February 16, 1926The RecordStockton, CA
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RIVERBANK BANK RECEIVER SUES ON PROMISSORY NOTE
Charles La Bree, of the First National Bank of Rivertoday suit foreclose on note for $2500. due and the plaintiff due for La also interest at per cent and fees. Hawkins of Modesto are attorneys for the receiver.
5.February 25, 1926Oakdale LeaderOakdale, CA
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BANK RECEIVER SUES ON PROMISSORY NOTE
Charles A. Labree, receiver of the First National Bank of Riverbank, Tuesday commenced a suit to foreclose on a note given by H. O. Kruschke on October 27, 1925, for $2500. The note was due in ninety days and the plaintiff claims it is now due for payment. LaBree also asks interest at 8 per cent and $250 attorney fees. Hawkins & Hawkins of Modesto are attorneys for the receiver.Stockton Record.
6.February 26, 1926The Modesto BeeModesto, CA
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RIVERBANK BANK RECEIVER BRINGS ACTION ON NOTE
Suits Seek To Collect Promis. sory Notes For $4000 Given Flack
Charles A. LaBree. receiver of the First National Bank of Riverbank which was wrecked by the frenzied (inancial operations of L. Flack last December. brought two suits in court today to collect $4,000 on promissory notes alleged delivered to Flack and later turned over by him to the Riverbank bank. The defendants are Eugene P. Bessac. publisher of the Riverbank News. and Enes Bechis of Oakdale. According to the actions, Bessac delivered promissory note for $1,500 to Flack on October 31. while Bechis executed note for $2,500 the same day in favor of the miss. chairman. Both notes were endorsed bad and frequent demands that they be paid have gone unbeeded. Attorney fees amounting to $500 asked through the law firm of Hawkins and Hawkins. Faced with a overdraft of $15,000 and the disappearance of Mack the Riverbank institution failed to open Its doors for in the latter part of December LaBree was ap
7.February 26, 1926The RecordStockton, CA
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BANK RECEIVER SUES ON NOTES
MODESTO OFFICE STOCKTON $4000 alleged due on promissory notes executed in favor of C. Flack. missing director of the First National Bank of Riverbank, and indorsed by him to that institution, asked filed in the Superior esterday Charles La Bree, as receiver the Eugene Bessac is alleged in of the have execyted Flack's favor October 31, $1500, while the other complaint alleges that Enos executed note for $2500 in Flack's favor on the same date.
8.March 4, 1926Oakdale LeaderOakdale, CA
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Two Suits Brought By Bank Receiver
Charles A. LaBree, receiver of The First National Bank of Riverbank, which was wrecked by the frenzied financial operations of C. L. Flack last December, brought two suits in superior court today to collect $4,000 on promissory notes alleged delivered to Flack and later turned over by him to the Riverbank bank. The defendants are Eugene P. Bessac, publisher of the Riverbank News, and Enos Bechis of Oakdale. According to the actions, Bessac delivered a promissory note for $1,500 to Flack on October 31, while Bechis executed a note for $2,500 on the same day in favor of the missing chairman. Both notes were endorsed and turned over to the bank, it is said, and frequent demands that they be paid have gone unheeded. Attorney fees amounting to $500 are asked through the law firm of Hawkins and Hawkins. Faced with an overdraft of $15,000 and the disappearance of Flack, the Riverbank institution failed to open its doors for business in the latter part of December. LaBree was appointed receiver. Modesto NewsHerald.
9.March 8, 1926The RecordStockton, CA
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MODESTO OFFICE STOCKTON RECORD. March 8.-Charles La Bree, as receiver of the defunct
First National Bank of Riverbank. Saturday filed complaints in the Superior Court here seeking to enforce payment of three promisory notes executed by H. Steele Johnson, Weber, Enos Bechis and Flack last year and in the total amount of approximately
The first two notes were executin favor of Flack. missing chairman of the board of directors of the bank, and the last one was exe. cuted by Flack and the others. with the exception of Steele, in favor of the bank.
DEMONSTRATES THE MACHINE TRACY STOCKTON RECORD. March S.-In accordance with arrangement made with the board of city J. D. Clarkson of
MARRIAGE LICENSES IN STANISLAUS COUNTY MODESTO OFFICE STOCKTON censes were issued here Saturday William Henry Munson. 21, and Loleta Rubye Stevens, Tujunga Everett Lyle Murray, 24, and Mildred Ina Trew. 21, both of Ceres: Reuben Eherenfried Nelson, 23, and Elvera Wilhelmina Kulander, 21,
10.March 12, 1926The RecordStockton, CA
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MISSING BANKER HAD ESTATE OF ABOUT $240,000
REPORT IS MADE ON C. L. FLACK
Receiver of Bank Says Much Property Is Entailed
RIVERBANK March for the estate Flack, has issued preliminary report creditors of the condition of Flack's estate. Flack disappeared last December after he secured $14,000 from the First National Bank of on chairman the board directors bank receiver states that the port incomplete, due to the difficulties straighten out Flack's tangled fairs. doubt all Flack's property was heavily mortgaged, some it appearently been several times as security for loans, announces. $240,000 have been discovered the They are mainly of stock following: the First National Bank of Riverbank; 15,000 shares par value) Riverbank Land Company stocks 4000 Cannery stock, Bank building Riverbank, $50,000; Riverbank Water capital stock authorized by Railroad Commission, $54,000; acres land near McFarland Kings was also reported 300 shares, $100 par value, the Vogue Creamery Company The receiver has not verify this report. Claims totalling about have filed with Cuneo, but many of these he says are duplications. Also some claims would others. The defunct First set tional Bank's which includes Flack's contingent liability endorser various and the assessment on the bank with interest. The receiver states that great deal this property is that will get together and form definite plan action be the most sirable thing. as that lot of costly litigation would avoided
11.March 13, 1926The Modesto BeeModesto, CA
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REPORT GIVEN BY DEFUNCT BANK ON ESTATE ON FLACK
Financial Condition Uncertain, Says Cuneo; Suggests Creditors Unite
RIVERBANK. March 12.-A preliminary report has just been sent out by John C. Cuneo, receiver for L. Flack, to all creditors who have filed claims. Flack has been missing since December, at which time First National Bank of Riverbank was closed, due to his manipulation of bank funds. It is impossible as yet, according to Cuneo's report, to gain an ac. curate estimate of the status of the estate, but it is quite apparent that all of the properties were used the utmost limit to borrow money upon. The various properties and interests which have been located and investigated to date by the re. ceiver represent gross value of approximately $240,000 The claims filed to date approximate $270,000. but many of these claims are and include liabilities which might later develop Some claims, Receiver Cuneo also states, offset other claims Among these is the claim of the National Bank of Riverbank which totals $61,019.63. This includes assessment Flack's 131 shares of bank stock, with in terest. amounting $13,800: also Flack's contingent liability as endorser of various notes. which total $13,680. The bank receiver. Chas. LaBree, is now suing the signers of these notes for collection Cuneo suggests in his report to creditors that if an organization of be effect. ed. it would be very desirable, for the value of the properties involved largely in their operation. are some good possibilities if the interests are rightly operated. he asserts.
12.March 13, 1926Modesto News-HeraldModesto, CA
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REPORT GIVEN DEFUNCT BANK ON ESTATE ON FLACK
Financial Condition Uncertain, Says Cuneo; Suggests Creditors Unite liminary report has just been sent out by John C. Cunce, receiver for C. Flack, to all ureditors who have filed claims. Flack has been missing since December. at which time the First National Bank of Riverbank WHS closed, due to his manipulation of bank funds. It Impossible as yet, according to Cupeo's report, to gain an no. curate estimate of the status of the estate, but 11 is quite apparent that all the properties were used the utmost limit to borrow money upon. The various properties and interests which have been located and investigated to date by the TE celver represent gross value of approximately $240,000. The claims filed to date approximate $270,000, but many of these claims are inplications and Include Liabilities which might possibly later Some claims, Receiver develop. other claims. Among these is the claim of the First National Bank of Riverbank which totals $61,019.03. This Includes assessment of Flack's 131 shares of bank stock, with inferent, amounting to $13,800; also Flack's contingent Hability ILS en dorser of various notes. which total $13,080. The bank receiver. Chas. LaBree. is now suing the signers of these notes for enllection Caneo suggests in his report to the creditors that an organizaUdn of the creditors could be effected, it would be very desirable. for the value of the properties In. There are some good pos. wibilities if the interests are rightly operated. he asserts.
13.June 29, 1926The Modesto BeeModesto, CA
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Bank Receiver Sues To Collect On Note
Charles LaBree, as receiver the defunct First National Bank Riverbank, yesterday filed suit the superior court collect sums approximating $2500 from Lorenzo Zelillo, alleged have ben loaned by Flack. missing the October 1925.
14.August 12, 1926Oakdale LeaderOakdale, CA
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DEPOSITORS GET DIVIDEND
Depositors of the First National Bank of Riverbank, closed last December by the default of C. L. Flack, chairman, will be paid a dividend of 30 per cent, beginning next Monday, August 9th, Charles A. LeBree, reThe 30 per cent dividend will total $20,000, 50 per cent of which will go to local depositors, the remaining 50 per cent to out-of-town depositors This is an exceptionally satisfacSory record, as tew banks pay more than 10 per cent as a first dividend and this is seldom paid under a year from the date of the bank failure. Receiver LaBree states that he has prompt. While no definite information is available at the present time, it is understood that another bank will be established here the coming fall or winter.
-Riverbank News.
SMOKING IS TABOO
By order of District Forester S. B. Show the Stanislaus National Forest is closed to the favorite pastime of smoking. This order became efffective applyin in the local reserve Thursday. It is permissible to smoke at habitations and designated public camp grounds, but elsewhere the use of the fragrant weed of peace and contentment is
15.March 4, 1927The Modesto BeeModesto, CA
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RIVERBANK BANK RECEIVER LOSES ON NOTE ACTION
Echoes of Flack's Manipulations Aired In Technical Case Tried Here
Echoes of the manipulations of C. L. Flack, missing president the Riverbank First National bank, were heard in Superior Judge L. W. Fulkerth's court when a jury decided against Charles LaBree, receiver of the defunct institution, in his suit to collect $2,500 on a note. The note was executed by J. W Steele, Riverbank postmaster, and turned over to Flack as an "accommodation note," LaBree sought to collect on grounds that the note was given by Steele for the accommodation of Flack held big interests. On the strength of the note, LaBree claims, Flack credited $2,500 to the cannery's account and that therefore the consideration was a credit given the cannery for full amount of the note and as a result, Steele was liable. For "Paper Assets" Steele contended that he gave the note on the representation of Flack that it was to be used only for the purpose of strengthening the "paper assets" of the bank and as mere accommodation, and as a result, there was no consideration for the note. He denied knowledge that it was to be used by Flack to advance more money to the can nery. It was the understanding that the note would never be paid, Steele testified. LaBree sought to show that Flack used the note to misrepresent the actual assets of the bank. During the trial he sought to show that n-payment of the note by Steele would work to the detriment of the creditors. It was one of the most technical cases ever tried before Judge Fulkerth. he said. one in which nice points of law never heretofore brought up in a Stanislaus court were It is understood that LaBree's attorney will ask for new trial. and if this 1s denied, appeal is expected to be taken. Steele was represented by Attorney T. B. Scott
