Grand Island National Bank (Grand Island, NE)

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"Run" On Bank When Condition Becomes Known

Grand Island, ranking as third city in the state, and Hall county as eighth in the number of automobiles, had its oldest bank on the sick list for several months, and after an injection of the last stimulants the officials holding conferences with other banks of the city decided to close the Grand Island National Bank and notify Federal Bank Examiner Robertson at Kansas City to send a deputy and take over the affairs of the failed bank. Much of "frozen" paper, held from the war-time days, and most of which is worth fifty cents on the dollar or less, is said to be the cause of failure. It was capitalized at $100,000, had a surplus fund of $125,000, total deposits on December 31 amounted to $1,013,630 and loans $1,167,014. When the critical condition had become known through other banks the depositors started a "run" on the old bank.

Since the Sioux Falls National Bank was closed last week, interest had been centered in its subsidiary, the Sioux Falls Trust and Savings Bank, carrying the heaviest deposits of any bank in South Dakota, totaling about five million dollars, was taken in charge by the state banking department in an effort to prevent it from closing permanently. Depositors in this bank are protected by the state guaranty fund.

The Citizens' State Bank at Decorah, in Winneshiek county, in north-east part of Iowa, was closed this week, officers explaining that the bank was interested in several South Dakota banks that had failed a few days ago and it was desired to examine the local bank's books before further business was permitted. It is believed the bank will re-open again.

Dr. Walker accompanied Mrs. Joseph C. Madron to a hospital in Omaha for the removal of gallstones.

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G. I. BANK CLOSED; DEPOSITS MILLION

Grand Island National Had No President Since Miles Died.

GRAND ISLAND, Jan. 19—The Grand Island National Bank, which has been without a president since the death of Clarence J. Miles last June, failed to open today.

The closing of the bank following a two-day effort by the Grand Island Clearing House association to save the institution. Last night it was decided that it was impossible to extend sufficient aid and that it would have to permit the bank to go into liquidation.

Not Complete Surprise.

The closing was not entirely a surprise, for it had been talked quietly for some time that the bank was having difficulty. Some days ago a teacher is said to have told her class that one of the banks of Grand Island was in a shaky condition.

One of the handicaps in the way of averting the closing of the bank was the fact that the largest holding of stock—200 shares—was tied up in the estate of the late C. J. Miles. The next largest holding was 100 shares.

Commended Mr. Newell

Among Grand Island bankers it is freely said today that Vice President A. B. Newell, in charge since the death of Mr. Miles, had made every possible effort to prevent a crash. They commended his management and were disposed to believe that he could not be blamed in any way for the failure.

Not only was the bank without a president, but on the first of this year it lost its cashier, Mr. Neumann, who came into the bank with Mr. Miles. Mr. Neumann went to another bank and no one had yet been chosen to take his place.

Lose Own Deposits.

It was generally understood today that the directors have lost considerably in their personal deposits. Mr. Newell, it was related, only recently sold a farm for about $10,000 and this money is said to have been left on deposit.

There was a shrinkage in some war-time paper held by the bank at the time of its purchase by Mr. Miles. This, however, is not regarded of as much of a factor in bringing about its present condition as the fact that it was for months without a president and for a time without a cashier, and further because so much of the stock was in an estate.

Slight Run Lately

Mr. Miles held the confidence of the business people of Grand Island and most persons here believe that had he lived the bank would not have closed.

Lately the directors had been endeavoring to induce Chris Hanson of Omaha to return to the bank as cashier.

Deposits and loans each were something over a million dollars.

There had been a slight run on the bank during the past few days.

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TEACHER CAUSES RUN UPON BANK

Said to Start Rumors Among Children.

Grand Island, Neb., Jan. 19.—(International News)—The closing of the Grand Island National bank, the oldest bank in Hall county, today was caused by an "unfortunate statement of a school teacher before her class," A. B. Newell, vice president of the bank, said today.

"The statement by the teacher was to the effect that one of the oldest national banks in Grand Island failed to pay a dividend," Newell continued. "The children went out and broadcast this statement and their parents became alarmed. As soon as I got the statement I called the board together, but at that time there seemed to be nothing serious impending."

Mr. Newell then went over the situation with officers of the First National bank of Grand Island and later with officers of other banks here, but no one thought the situation was critical.

"The rumors kept spreading," Newell added, "until a heavy withdrawal of deposits began and continued until we were stripped of cash. We obtained enough money from other banks to tide us over to closing time yesterday."

After closing the bank yesterday the directors called a meeting and decided not to attempt to reopen the institution today.

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TEACHER AND MAN DEAD IN A GARAGE

Miss Lena Veit of Grand Island, Who Was to Have Been Questioned Regarding Run on Bank, Is Victim.

GRAND ISLAND, Neb., Jan. 21.—Miss Lena Elaine Veit, twenty-four year old school teacher and Claude Thompson, twenty-six, were found dead in the garage of the latter's home here yesterday. Gas from an automobile motor caused death, police believe.

As a result of the girl's death, an avenue of investigation in connection with the closing of the Grand Island National bank has been closed. Miss Veit was alleged to have made statements to her pupils that contributed to the "silent run" on the bank, which closed Saturday morning because inability to realize on its paper.

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COUPLE DEAD IN A GARAGE

GRAND ISLAND MAN AND SCHOOL TEACHER VICTIMS.

Claude Thompson of Fonda, Ia., and Miss Lena Veit Victims of Gas Asphyxiation From Fumes of Car.

GRAND ISLAND, Neb., Jan. 20.—(By the Associated Press.)—Claude Thompson, twenty-six, whose home is in Fonda, Ia., but who had resided here for two years, and Miss Lena Elaine Veit, twenty-four, school teacher here, were found dead in a private garage in which Thompson kept his car. Death was caused by asphyxiation, police announced, caused by fumes from the car. They had been dead for thirty-six hours when found.

Thompson, who had no known occupation, was known to police as a gambler and the young woman is said to have known of this, but explained to relatives who objected, that she hoped to cause him to lead a useful occupation.

Miss Veit was a graduate of the Ravenna high school and of the Kearney state normal, and was from a family well known in this section of the state.

The young woman was to have been questioned by school authorities this week, regarding statements she is alleged to have made to her class of grade school students regarding the condition of the Grand Island National bank, which closed Saturday. The statement is said to have played a part in the run on the bank before it closed. She never knew of the bank's closing, as its condition was not announced until Saturday morning and she and Thompson died some time Friday night.

The inquiry of a woman friend of Thompson led to the discovery of the tragedy.

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Death Seals Lips of Teacher Blamed for Nebraska Bank Run

Grand Island, Neb., Jan. 21.—Miss Lena Elaine Veit, 24-year-old schoolteacher, and Claude Thompson, 26, formerly of Fonda, Ia., were found dead in the garage of the latter's home here yesterday. Gas from an automobile motor caused death, police believe. As a result of the girl's death, an avenue of investigation in connection with the closing of the Grand Island National bank was closed. Miss Veit was alleged to have made statements to her pupils that contributed to the "silent run" on the bank, which closed Saturday morning because of inability to realize on its paper.

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TEACHER AND MAN DEAD IN A GARAGE

Miss Lena Veit of Grand Island, Who Was to Have Been Questioned Regarding Run on Bank, Is Victim

GRAND ISLAND, Neb., Jan. 21 — Miss Lena Elaine Veit, twenty-four year old school teacher and Claude Thompson, twenty-six, were found dead in the garage of the latter's home here yesterday. Gas from an automobile motor caused death, police believe.

As a result of the girl's death, an avenue of investigation in connection with the closing of the Grand Island National bank has been closed. Miss Veit was alleged to have made statements to her pupils that contributed to the "silent run" on the bank, which closed Saturday morning because inability to realize on its paper.

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(By the Associated Press.)

Grand Island, Neb., Jan. 20.—Claude Thompson, 26, whose home is in Fonda, Ia., but who had resided here for two years, and Miss Lena Elaine Veit, 24, school teacher here, were found dead in a private garage in which Thompson kept his car. Death was caused by asphyxiation, police announced, caused by fumes from the car. They had been dead for 36 hours when found.

Thompson, who had no known occupation, was known to police as a gambler and the young woman is said to have known of this, but explained to relatives who objected that she hoped to cause him to follow a useful occupation.

Miss Veit was a graduate of the Ravenna high school and of the Kearney State normal, and was from a family well known in this section of the state.

The young woman was to have been questioned by school authorities this week, regarding statements she is alleged to have made to her class of grade school students regarding the condition of the Grand Island National bank which closed Saturday. The statement is said to have played a part in the run on the bank before it closed. She never knew of the bank's closing, as its condition was not announced until Saturday morning and she and Thompson died some time Friday night.

The inquiry of a woman friend of Thompson led to the discovery of the tragedy.

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FIND COUPLE DEAD AT GRAND ISLAND

Teacher and Fiance Killed By Motor Gas

Grand Island, Neb., Jan. 21.—Miss Lena Elaine Veit, 24 year old school teacher and Claude Thompson, 26, were found dead in the garage of the latter's home here yesterday. Gas from an automobile motor caused death, police believe. As a result of the girl's death, an avenue of investigation in connection with the closing of the Grand Island National bank has been closed. Miss Veit was alleged to have made statements to her pupils that contributed to the "silent run" on the bank which closed Saturday morning because of inability to realize on its paper.

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OVERCOME BY THE FUMES

Grand Island, Neb. Jan. 20 (A. P.)—Claude Thompson, 26, whose home is in Fonda, Ia., but who had resided here for two years, and Miss Lena Elaine Voit, 24, school teacher here, were found dead today in a private garage in which Thompson kept his car. Death was caused by asphyxiation, police announced, caused by the fumes from the car. They had been dead for thirty-six hours when found.

Thompson, who had no known occupation, was known to police as a gambler and the young woman is said to have known of this but expressed that she hoped to cause him to lead a useful occupation.

Miss Voit was a graduate of the Ravenna high school and of the Kearney state normal, and was from a family well known in this section of the state.

The young woman was to have been questioned by school authorities this week regarding statements she is alleged to have made to her class of grade school students regarding the condition of the Grand Island National bank which closed Saturday.

The statement is said to have played a part in the "run" on the bank before it closed its doors. She never knew of the bank's closing, as its condition was not announced until Saturday morning and she and Thompson died Friday night.

The inquiry of a woman friend of Thompson led to the discovery of the tragedy.

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FOUND DEAD IN GRAND ISLAND GARAGE

Claude Thompson and Lena Veit, School Teacher, Are Asphyxiated

Grand Island, Neb., Jan. 21.—Claude Thompson, twenty-six, whose home is in Fonda, Ia., but who has resided here for two years, and Miss Lena Elane Veit, twenty-four, school teacher here, were found dead in a private garage in which Thompson kept his car. Death was caused by fumes from the car. They had been dead for thirty-six hours when found.

Thompson, who had no known occupation, was known to police as a gambler and the young woman is said to have known of this, but explained to relatives who objected, that she hoped to cause him to lead a useful occupation.

Miss Veit was a graduate of the Ravenna high school and of the Kearney state normal, and was from a family well known in this section of the state.

The young woman was to have been questioned by school authorities this week, regarding statements she is alleged to have made to her class of grade school students regarding the condition of the Grand Island National bank, which closed Saturday. The statement is said to have played a part in the run on the bank before it closed. She never knew of the bank's closing, as its condition was not announced until Saturday morning and she and Thompson died some time Friday night.

The inquiry of a woman friend of Thompson led to the discovery of the tragedy.

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GAS FROM MOTOR ASPHYXIATES TWO

Young Woman Teacher of Grand Island and Her Companion Found Dead in Garage

Grand Island, Neb.—Claude Thompson 26, whose home is in Fonda, Ia., but who had resided here for two years, and Miss Lena Elaine Veit, 24, school teacher here, were found dead in a private garage in which Thompson kept his car. Death was caused by asphyxiation, police announced, caused by fumes from the car. They had been dead for 36 hours when found.

Thompson, who had no known occupation, was known to police as a gambler and the young woman is said to have known of this, but explained to relatives who objected, that she hoped to cause him to lead a useful occupation.

Miss Veit was a graduate of the Ravenna high school and of the Kearney state normal, and was from a family well known in this section of the state.

The young woman was to have been questioned by school authorities this week, regarding statements she is alleged to have made to her class of grade school students regarding the condition of the Grand Island National bank, which closed Saturday. The statement is said to have played a part in the run on the bank before it closed. She never knew of the bank's closing, as its condition was not announced until Saturday morning and she and Thompson died some time Friday night.

The inquiry of a woman friend of Thompson led to the discovery of the tragedy.

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Oldest Bank Of Grand Island Is Forced to Close

The Grand Island National bank, the oldest banking institution in that city, closed its doors last Saturday. The bank had a capital stock of $100,000, a surplus of $125,000, and its last statement showed loans of $1,167,014, with total deposits of $1,013,630. The bank has had a hard struggle for many months, due to what is known as "frozen" paper, effected by the after-war deflation. The situation was made more complicated by the death of its president, C. J. Miles, which occurred several months ago. Much of this stock was in the Miles estate and on this account it was difficult to perfect a working organization.

The failure of the Grand Island National has apparently not affected the other banks of the city who fortified themselves against any emergency that might arise.

A slight run on the bank of the day previous to closing brought matters to a climax on Saturday morning, when its doors failed to open. Estimates of those best informed as to conditions state that a loss of fifty per cent to depositors will likely result. It being a National bank, the depositors will not have the protection of the state guaranty fund.

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Grand Island National Bank Closes Its Doors

After a valiant fight for solvency on the part of its vice-president A. B. Newell, The Grand Island National Bank, the oldest bank in Grand Island closed its doors last Saturday morning.

Former president Miles had recently died. This worked a serious disadvantage. Vice-president Newell made an efficient effort to tide over the crisis, the affairs of the bank. For a time it seemed he would succeed but crippled machinery, need of reorganization, stock tied up in the Miles estate, frozen securities, and post war deflation, consummated by a run on the bank Friday afternoon caused the failure. The other banks of the city attempted to aid in prevention of the failure but to no avail. The bank enjoyed the absolute confidence and respect of the public.

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GAS FROM MOTOR ASPHYXIATES TWO

Claude Thompson, 26, whose home is in Fonda, Iowa, but who had resided here for two years, and Miss Lena Elaine Veit, 24, school teacher here, were found dead Sunday shortly after the noon hour in a private garage in which Thompson kept his car. Death was caused by asphyxiation, police announced, caused by fumes from the car. They had been dead for thirty-six hours when found.

Thompson, who had no known occupation, was known to police as a gambler and the young woman is said to have known of this, but explained to relatives who objected, that she hoped to cause him to lead a useful occupation.

Miss Veit was a graduate of the Ravenna high school and of the Kearney state normal, and has a father and six brothers residing in Buffalo county.

The young woman was to have been questioned by school authorities regarding statements she made to her scholars regarding the condition of the Grand Island National bank, which closed Saturday. The statement is said to have played a part in the run on the bank before it closed. She never knew of the bank's closing as its condition was not announced until Saturday morning and she and Thompson died some time Friday night.

The remains of Miss Veit were taken to Ravenna for burial. Those of Thompson were taken to Blue Hill, where his mother and sister reside.

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DOORS ARE CLOSED AFTER RUN

Grand Island Bank Could Not Stand Pressure.

Grand Island, Neb., Jan. 19.—The Grand Island National bank closed today after a "run" yesterday had made such action imperative.

The uncertain financial condition of the bank, which is the oldest in Hall county, became generally known here Friday and depositors hastened to withdraw their money.

The death of C. J. Miles, president, recently is said to have involved the bank in financial difficulties as the accounts of the Miles estate were closely linked with those of the bank.

The failure of the National bank, however, will not affect state banks in Nebraska, nor the state guaranty fund.

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Oldest Bank In Grand Island, Nebraska, Closes

Grand Island, Neb., Jan. 23.—The Grand Island National bank, oldest banking institution in the city, failed to open its doors this morning. Its capital stock was $100,000 with surplus of $125,000. At the time of its last statement, December 31, its loans totalled $1,167,014 with total deposits of $1,013,630. "Frozen" paper and recent death of its president, C. J. Miles, are attributed as the main causes, as much stock is in the hands of the Miles estate, and it has been difficult to perfect a working organization, it was said.

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GRAND ISLAND BANK OPEN

National Bank Releases Depositors After Close From Temporary Heavy Run.

GRAND ISLAND, Neb., May 23.—Much more rapid than even its stockholders dared to hope for, has been the return to normal conditions of the affairs of the Grand Island National bank, which announced Thursday the complete release to all depositors of all checking accounts. The bank was obliged, on January 19 to close its doors because of a temporary run on the preceding day.

The death of the bank's president some months previous, difficulties in reorganizing because of the tieing up of stock in the estate, a quantity of frozen paper and some unwarranted gossip were various factors. But the stock of the Miles estate was finally obtained by others, voluntary settlement and sacrifices were made by other directors and stockholders and the bank on April 4 reopened with J. F. Coates as president.

Tho this not had been agreed to or expected, the bank was able, ten days after the reopening, to release all of the first year's deferred payments. It is now, fifty days after the reopening, releasing all of the checking accounts, making $400,000 more immediately available for circulation. These accounts were not to have been released until the end of two years.

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GRAND ISLAND BANK OPEN

National Bank Releases Depositors After Close From Temporary Heavy Run.

GRAND ISLAND, Neb., May 23.—Much more rapid than even its stockholders dared to hope for, has been the return to normal conditions of the affairs of the Grand Island National bank, which announced Thursday the complete release to all depositors of all checking accounts. The bank was obliged, on January 19 to close its doors because of a temporary run on the preceding day.

The death of the bank's president some months previous, difficulties in reorganizing because of the tieing up of stock in the estate, a quantity of frozen paper and some unwarranted gossip were various factors. But the stock of the Miles estate was finally obtained by others, voluntary settlement and sacrifices were made by other directors and stockholders and the bank on April 4 reopened with J. F. Coates as president.

Tho this had not been agreed to or expected, the bank was able, ten days after the reopening, to release all of the first year's deferred payments. It is now, fifty days after the reopening, releasing all of the checking accounts, making $400,000 more immediately available for circulation. These accounts were not to have been released until the end of two years.

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BANK'S RECOVERY VERY RAPID ONE

Grand Island National Now Back to Normal Condition.

(Special to The Star) GRAND ISLAND, Neb., May 23.—Much more rapid than even its stockholders dared to hope for has been the return to normal conditions of the affairs of the Grand Island National bank which today announces the complete release to all depositors of all checking accounts. The bank was obliged on January 18, to close its doors because of a temporary run on the preceding day.

The death of the bank's president some months previous, difficulties in reorganizing because of the tieing up of stock in the estate, a quantity of frozen paper and some unwarranted gossip, were various factors. But the stock of the Miles estate was finally obtained by others, voluntary settlements and sacrifices were made by other directors and stockholders and the bank on April 4 reopened with F. J. Coates as president.

Though this had not been agreed to or expected, the bank was able ten days after the reopening, to release all of the first year's deferred payments. It is now, fifty days after the reopening, releasing all of the checking accounts, making $400,000 more immediately available for circulation. These accounts were not to have been released until the end of two years.