Valparaiso State Bank (Valparaiso, NE)

Episode Information

Episode UID
6114920391441
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
611492039 hash
Start Date
January 26, 1920
Location
Valparaiso, Nebraska (41.081, -96.832)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
8a6b2648f3c0b83b

Response Measures

None

Events (4)
1. January 26, 1920 Receivership
Newspaper Excerpt
Judge E. E. Good ... appointed E. E. Fike ... as receiver for the failed Valparaiso State bank. His bond as receiver was fixed at $100,000.
Source
newspapers
2. January 26, 1920 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of large shortage ($150,000–$175,000) in bank funds attributed to management/embezzlement and speculative losses related to cashier/owner R. A. Lower.
Newspaper Excerpt
Receiver Appointed for Defunct Valparaiso Bank -Lincoln. Neb., Jan. 26.-(Special.) -Judge E. E. Good, in the district court at Wahoo, has appointed E. E. Fike ... as receiver for the failed Valparaiso State bank.
Source
newspapers
3. February 11, 1920 Other
Newspaper Excerpt
R. B. Lower, former assistant cashier of the Valparaiso State bank, charged with embezzlement of $17,500 of the bank's funds. Receiver E. E. Fike ... filed an application ... that the depositors' guarantee fund be drawn on to the extent of $238,840.02.
Source
newspapers
4. July 10, 1920 Other
Newspaper Excerpt
While receiver of the defunct Valparaiso, Neb., State bank, E. E. Fike ... organized and became cashier of the Nebraska State bank of Valparaiso which took over part of the assets of the old institution.
Source
newspapers

Newspaper Articles (11)
1. January 27, 1920 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, January 27, 1920

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Receiver Appointed for Defunct Valparaiso Bank -Lincoln. Neb., Jan. 26.-(Special.) -Judge E. E. Good, in the district court at Wahoo, has appointed E. E. Fike, who recently removed from Lincoln to Valparaiso and is cashier of the Nebraska State Bank recently incorporated there, as receiver for the failed Valparaiso State bank. His bond as receiver was fixed at $100,000. The Saunders County Bankers' association recommended Mr. Fike's appointment and local shareholders th the closed bank requested it. Probably considerably more than $100,000 will have to be advanced from the state guaranty fund to pay depositors. Total deposits were in excess of $400,000 and the shortage in the bank's funds is believed to be from $150,000 to $175,000.

2. February 12, 1920 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, February 12, 1920

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P. A. Barrows. Correspondent Bank Cashier Brought Back to Nebraska to Await Trial at Wahoo Lincoln, Neb. Feb. 11.-(Special.) -Gus A. Hyers, chief of the state law enforcement department, arrived here at noon today from Denver with R. B. Lower, former assistant cashier of the Valparaiso State bank, charged with embezzlement of $17,500 of the bank's funds. Lower had been released on bail, following the failure of the bank, and when notified to appear for trial, could not be found. He was detained in Denver when about to board a train leaving the city. He will be taken to Wahoo to await trial. Receiver E. E. Fike, now in charge of the bank's affairs, has filed an application with Judge E. E. Good of Saunders county district court that the depositers' guarantee fund be drawn on to the extent of $238,840.02, which he declares will meet all present demands of the bank, up to April 1. He declares that he believes that many of the paper securities of the bank will prove of sufficient worth to pay this amount back in the near future.

3. July 11, 1920 Albuquerque Morning Journal Albuquerque, NM
Article from Albuquerque Morning Journal, July 11, 1920

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CASHIER IS ARRESTED FOR ADVANCING DATE OF $10,000 DEPOSIT (BY MORNING JOURNAL SPECIAL LEASED WIRE) Lincoln, Neb., July 10.-E. E. Fike, while receiver of the defunct Valparaiso, Neb., State bank, early this year organized and became cashier of the Nebraska State bank of Valparaiso which took over part of the assets of the old institution, was arrested today on a charge of advancing the date of a $10,000 deposit in a report to the state banking board, according to H. A. Bryant, county attorney of Saunders county. He was taken to Wahoo for preliminary hearing. A warrant was also issued in Wahoo for the arrest of W. C. Elmelund, Omaha grain man and former president of the defunct bank. charging him with borrowing $10,000 from the bank in 1918 and 1919 without giving security in violation of the state banking laws. Ray A. Lower, cashier and majority stockholder of the defunct bank, is under bond on a complaint of twenty-one counts charging embezzlement before the bank was closed last January.

4. July 22, 1920 The Red Cloud Chief Red Cloud, NE
Article from The Red Cloud Chief, July 22, 1920

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NEBRASKA IN BRIEF Timely News Culled From All Parts of the State, Reduced for the Busy. SCORES OF EVENTS COVERED Trouble seems to be epidemic for banks and bank officials at Valparaiso. E. E. Fike, who, while receiver of the defunct Valparaiso State bank early this year, organized and became cashier of the Nebraska State Bank of Valparaiso, which took over part of the assets of the old institution, was arrested the other day on a charge of advancing the date of a $10,000 deboard. posit in a report to the state banking Governor McKelvie has again saved the lives of Alson B. Cole and Vincent Grammer, murderers of Mrs. Lulu Vogt, in Howard county in 1918, who were to die In the electric chair at the state prison at Lincoln July 9, by granting a stay of execution until August 6. Mandamus action pending in the United States circuit court of appeals in behalf of Grammer was responsible for deferring the execution. The webworm, which has been causing damage to Colorado crops, has been reported to be injuring the Nebraska corn crop in four counties, according to Prof. M. H. Swenk, state entomologist at Lincoln. Its appearance was first reported in Sarpy county June 28. Immediately thereafter reports of its damage came from Butler. Seward and Lancaster counties. H. D. Strunk of McCook, who has looked over perhaps more wheat fields in southwestern Nebraska than any other person in the world, reports that the wheat yield in the district will exceed by far that of last year, which was sixteen bushels to the acre. The crop this year, he says, is virtually free from black rust. The July 1 crop report issued by U. S. bureau of crop estimates and the state department of agriculture, forecasts a production of all wheat in Nebraska this year of 57,222,000 bushels, as compared with 60,675,000 bushels in 1919. A vein of coal has been discovered on the Theodore Roos farm, near Talmage. It is estimated that the vein is about six feet in thickness and is found at a depth of about 330 feet from the surface of the ground. Cass County Commissioners have approved a petition authorizing incorporation of the village of Nehawka, town centrally located in Cass county, a which class, will become a city of the second Citizens of David City, Bellewood, Octavia and Garrison raised a fund of $2,100 for Mrs. Boling, wife of the Rev. William J. Boling, who, with his daughter. Juanita, were drowned in the Platte river. Alliance city officials and chamber of commerce members are highly Indignant over the census bureau report giving the city a population of only 4,591. They claim Alliance has easily 6,000 people. After editing the North Platte Semiweekly Tribune for thirty-six Ira L. Bare sold his interest in years, the paper to Wilson Tout, for thirteen years superintendent of the North Platte schools. A new pest known as the Harlequin cabbage bug has appeared in several Nebraska counties, and is doing much damage. Last year it destroyed fifteen acres of cabbage for one grower in Dundy county. Col. Chas, J. Bills, prominent in republican polities of Nebraska and widely known as a banker, died of heart disease at his home at Lincoln. Late wheat in Hamilton county is said to have been hard hit by black rust. Some farmers report that their wheat will not be worth cutting. Fire destroyed the electric light plant at Clatonia, entailing a loss of $15,000 and leaving the village in dark-

5. July 24, 1920 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, July 24, 1920

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E. E. FIKE, CASHIER OF BANK, IS FREED ON FRAUD CHARGE Valparaiso Banker Is Discharged at Preliminary Hearing Held at Wahoo. Wah0o, Neb., July 23.-(Special Telegram).- E. Fike, cashier of the Nebraska State bank of Valparaiso, was discharged at his preliminary hearing before County Judge D. M. Parmenter here on charges of submitting false reports to the department of trade and commerce on the call issued February 14, 1920. The court ruled that there was insufficient evidence to sustain the charges. It was charged that Mr. Fike included in his report a deposit of $10,005 which was not received by the bank until the morning of February 16. Witnesses for the defense testified that the bank had been notified of the deposit on Saturday, February 14, and as it did not arrive on time the books were kept open until Monday, February 16, when the deposit arrived and was entered cn the books before the bank opened for business. Fike was appointed receiver for the Valparaiso State bank, which was closed by order of the state banking board after the discovery of the shortage alleged to have been due to the management of Rey E. Lowery, which cost the state guaranty fund more/than $200,000, and later organized the Nebraska State bank and became its cashier.

6. January 6, 1921 The Red Cloud Chief Red Cloud, NE
Article from The Red Cloud Chief, January 6, 1921

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STATE NUMBER now banks number of state is 1,009, a On operation the were 999 The of ten in for Nebraska year there 1920. gain first of the year During the last the being conducted. charters were of granted which twelve new Five have sixteen have months banks, business. to opened for were taken by the state thru the over banks twelve being failed, run department. and receiver- These are ship process. failed banks were Verdon the Aurora, Ceresco. bank at The Page, now five Aurora, In Valparaiso, failures, located Valand Ceresco instituted paraiso and been whose prosecutions have of the bank, to have against conduct officers is alleged Lower at illegal Cashier in district been was is to be court, Valparaiso responsibile. and supreme his appeal court. Cashier heard and shortly in pleaded guilty of Ceresca The other Maixner in the penitentiary. district court, case is now in is pending also a left-over in prosecution at Halsey. where of a bank anagainst officers consolidated with One bank was in the same place, othothers The other and six state bank consolidated same town. with being bank banks in the liquidated, at er Harrisburg was Scottsbluff National. purchased by of the state banks decreased from Deposists during the year while $15,000,000 to $255,000,000, from $249,2 loans $270,000,000 dropped $1,000,000 The drop in to most has In last five but deposits 000,000 $248,000,000. been months. marked decreased August in were that and they the cent $281,000,000, between call was Novem- made. per when the last was 6 decrease in part is offset The 9 ber 13, for the year increased by their per the cent. This the banks $4,568, fact that bills payable to rediscounts and efforts made their indicating the by use of 000, local demands from correspondborrowing meet power federal reserve. than This the ents and the 50 per cent larger the largest item was and is busibanking the history item was report showed of the this $8, 532,000. in A year ago $14,143,000. Cash ness. Now it is differ materially, hand does not due from coron but the item of money has decreased from respondent banks $29,000,000, indicating to meet $40,000,000 the heavy pull to made on them local obligations. credit banks have The stringency country and the frozthe almost the point, en reserve The averpulled credits the in 15 per down cent. cent. to This legal reserve is 16 per of banks that means age that a number to take care of 10- rewere hardest put below the cal people The have department gone has and kept is con- in close serve. tab on this situation, pressure to bear to stantly bringing the situation, temporarily altho it has now had had remedy to close its eyes actual condition. and then to the of the state banks a This Cash resources were 331 millions. year ago been pulled down when to 317 figfigure has which is not large The nummillions, a percentage basis. state banks at of 590,635, of ber ured present on depositors time is in banks. which The 23,583 the are in the combined savings capital stock banks of the have nineteen a savings eight banks millions, The $167,200 belongs surplus fund is over individual to the sav- de- of which institutions. The little ings in savings banks total loans a reach five millions. they have to four in posits over close and millions, a quarter Their and securities correspondent a million 763 thousand in of note is that and banks. One matter exactly as much almost certifimoney there is in the state banks year on ago, 133 cates of is all millions. deposits The decrease Undivided as a profits in check- are ing accounts. -$11,793,000, while listed now at were $10,188,000. to year ago they banks being close to The country the farmer the guns and having have been having finance rather primarily unhappy time good of it in bankin recen months, a but where have been ployed judgment they and have policy weathered Some trouble in good shape. outside paper now buying was gener them source are of revenue that when de to in the days threat ened ally resorted so large that they posits were burst the vault doors to

7. May 17, 1923 Wahoo Newspapers Wahoo, NE
Article from Wahoo Newspapers, May 17, 1923

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Sven Paulson vs. James T. Mundy et al. Trial to court. Finding as follows: amount due Oscar Hanson $10,755.20; amount due plaintiff $11,874.15; amount due Union National Bank, Fremont, $10,785.31. Decree of foreclosure. Estate of Nels Gibson, deceased. Trial to Court. Decree dismissing appeal of claimant. Notice to appeal given in open court. Edith Mulock vs. Charles J. Marks. Continued to May 31st upon condition that defendant pay expenses incurred by plaintiff in bringing one witness from Omaha. Tonto Guice et al vs. Samuel A. Farnsworth et al. Report of referee approved. Sale of part of premises ordered. Bond of referee fixed at $5,000. E. E. Fike vs. Ray A. Lower. Petition of plaintiff to open up and set aside default. Judgment against defendant is now finally dismissed. State of Nebraska vs. Valparaiso State Bank. Receiver ordered to deliver to Frank Peterson $750 in Lincoln Telephone stock; receiver ordered to sell elevator and Dwight bank stock. Judgment in favor of Farmers & Merchants Bank of Verdun having been paid in full is ordered to be cancelled. CHURCH LEAGUE STANDING. W L Pct. Lutherans .................... 2 0 1000 Congos ........................ 1 0 1000 Presbyterians ............. 1 1 .500 Methodists .................. 1 1 .500 Catholics ..................... 0 3 .000 LUTHERANS 4—METHODISTS 0. The Methodists were treated to a shut out at the hands of the Lutherans Thursday evening. Thulin shot them over so fast the M. E's. never saw them go by. Not a hit was registered which is going some. Lutherans AB R H PO A E Anderson, M., 3b -- 2 1 1 2 3 1 Brodahl, 1b ---------- 3 1 2 3 0 0 Soma, c --------------- 3 1 0 6 0 0 Anderson, H., 2b -- 2 1 1 3 1 0 Flodman, ss ---------- 3 0 1 1 0 1 Wahlstrom, rf ------- 1 0 1 0 0 0 Johnson, H., cf ------ 2 0 0 0 0 0 Anderson, G., lf ---- 2 0 0 0 0 0 Thulin, p -------------- 2 0 0 0 1 0 --- --- --- --- --- --- Totals ----------------- 20 4 6 15 5 2 Methodists AB R H PO A E Ruck, lf --------------- 2 0 0 0 0 0 Brown, cf ------------- 1 0 0 1 0 0 Finley, 1b ------------ 2 0 0 4 0 0 Cunningham, W., p -- 2 0 0 0 1 1 Cunningham, P., 3b -- 1 0 0 2 1 0 Brodahl, R., rf ------ 1 0 0 0 0 0 Cunningham, C., c --- 2 0 0 2 1 1 Cunningham, R., ss -- 2 0 0 3 2 1 Meese, 2b ------------- 2 0 0 3 3 0 *Dockweiler, rf ------ 1 0 0 0 0 0 --- --- --- --- --- --- Totals ----------------- 16 0 0 15 8 3 *Substitute for Brodahl in the third. Score by innings: Lutherans --------- 3 0 0 0 1—4 Methodists -------- 0 0 0 0 0—0 Struck out, Thulin 6, Cunningham 2. Stolen bases, Thulin 1, P. Cunningham, 1. Base on balls, Thulin 2, Cunningham 3. Left on base, Luth-

8. February 14, 1924 Wahoo Newspapers Wahoo, NE
Article from Wahoo Newspapers, February 14, 1924

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COURT ORDERS Judge Corcoran held a brief session of court Wednesday and made the following orders: Nellie Chrischillies vs. Edmund Chrischilles. Decree of divorce modified to require defendant to make payments of support as therein directed. Hugo Saathoff vs. Frieda Maynard et al. H. E. Kokjer appointed guardian ad litem. Default of defendants except minors taken. Finding for plaintiff. Decree confirming shares of parties. E. E. Fike appointed referee. Report of referee approved and confirmed and sale of premises ordered. Annie Danielson vs. Ida Benson et al. Default. Trial to court on pleadings and evidence. Finding for plaintiff. Decree of partition. H. A. Wiggenhorn appointed referee. Report of referee confirmed and approved. John M. Van Tilberg vs. Melvin L. Van Tilberg. Attorneys for plaintiff allowed to file written proofs of nature of services if they so elect. Plaintiffs and defendants and intervenors severally except to order of Jan. 30 fixing fees and give notice of appeal in open court. State of Nebraska vs. Valparaiso State Bank. Receiver ordered to turn over assets to department of trade and commerce.

9. October 11, 1924 Fremont Tribune Fremont, NE
Article from Fremont Tribune, October 11, 1924

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CLARKSON Clarkson, Oct. 11—William Houfek, eleven-year-old son of Mr. and Mrs. Jos. F. Houfek, living southeast of Clarkson, is suffering from a dislocation and fracture of one of his arms. He was taken to the Schuyler hospital. The injury was caused by a fall from a horse. Emil Folda of this city was appointed receiver of the defunct Valparaiso State bank. The bank failed some time ago and another receiver had been in charge but as he was not satisfactory, Mr. Folda was placed in charge. This makes Mr. Folda the receiver for seven failed banks. Mr. and Mrs. Emil Tomes were visiting relatives in Newman Grove and Elgin. Mr. and Mrs. Jos. M. Mundil, their son, Joseph, and Adolf Vitek, left by automobile for various points in Kansas and Oklahoma. Miss Emma Maliba spent a few days in Omaha, purchasing a large stock of holiday goods for her store.

10. January 15, 1925 Fillmore County News Exeter, NE
Article from Fillmore County News, January 15, 1925

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REAL ESTATE TRANSFERS Clay Thomas, Co. Treas. to C. S. Stov er. tax d, taxes, lots 17, 18, 19 b 26, Grandview add. Geneva. Thomas Ryan and wife to Ollie Kotcous, wd., 8,500.00, pt. SW% 20-8-1 14 acres. win D. Swails and wife to Guy L. Ketchem and wife, qe., 1,000, W% NE%. 21-6-3. lparaiso State Bank, by receiver .0 Emil Folda, receiver, rec, d. 1.00 int. in W½ SW% and S½ NW% 22 and NW% NW% 27-7-2.

11. January 23, 1930 The Brainard Clipper Brainard, NE
Article from The Brainard Clipper, January 23, 1930

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10 YEARS AGO A fine baby boy arrived at the home of Mr. and Mrs. Emil Dusatko, on Wednesday January 21. The two Joes-Klien and Pribyl went to David City Thursday, where they have some mason work. Mr. Frank Kucera who is chief clerk in one of the general office of the Union Pacific in Omaha, accompanied by his wife and children, came Saturday for a visit in the home of his father Anton Kucera. The Valparaiso State Bank was closd Tuesday, by order of the state banking board. Failure was brought on by the management and reckless business methods of R. A. Lower former cashier and owner. According to officials the shortage which was caused by oil stock and irrigation speculations ranges between 150 and 175 thousand dollars. W. C. Elmelund, president, J. B. Tomes assistant cashier, are held in no way responsible for the insolvency. This bank is capitalized at 000. 00 with deposits of $400, 000 00.