Banking House of A Castetter (Blair, NE)

Episode Information

Episode UID
76010471454
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7601047 routing
Routing Number
76-0104
Start Date
February 27, 1921
Location
Blair, Nebraska (41.544, -96.125)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
9581fc01c9c2b715

Response Measures

None

Description

Failure tied to disappearance and alleged misappropriation by bank president; receiver appointed and bank wound up.

Events (3)
1. February 27, 1921 Suspension
Cause
Bank Specific Adverse Info
Cause Details
President Fred H. (F. H.) Claridge disappeared Feb 27; alleged misappropriation and massive bad/frozen securities discovered causing bank closure
Newspaper Excerpt
Fred H. Claridge, president ... whose disappearance February 27, uncovered one of the most disastrous bank failures
Source
newspapers
2. March 14, 1921 Receivership
Newspaper Excerpt
The examination will probably be concluded next Tuesday, when a receiver will be appointed. ... A warrant was issued for his arrest. ... The bank cannot be opened, Mr. Davis declared.
Source
newspapers
3. June 28, 1922 Other
Newspaper Excerpt
Blair Bank Receiver Sues Mrs. Castetter ... James E. Hart, receiver for the bank. ... he has liquidated the assets of the bank and that they are insufficient to pay deposits and claims.
Source
newspapers

Newspaper Articles (6)
1. March 11, 1921 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, March 11, 1921

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Article Text

State Bankers Meet Today to Discuss Failure State Officials Invited for Meeting-Hart Denies Statement Printed in Omaha. Lincoln, March 10.-(Special Telegram.)-Officers in state banks of Nebraska will meet in Omaha Friday to discuss the recent failures of institutions operating under the guarantee fund, the largest of which is the banking house of A. Castetter at Blair. State officials have been invited in attend Secretary J. E. Hart of the department of banking and commerce announced that the guarantee fund was approximately $2,700,000. Secretary Hart denied statements published in the Omaha Word-Herald that F. H. Claridge, missing president of the bank. has been cleared of misappropriating funds. He stated that the final report of the examiners would not be received until Friday, but that early reports did not authorize any such statement. He also denied that he said the loss would total $500,000, saying the amount could not be determined before the final report. Attorney General Clarence A. Davis said, "I have no doubt but that criminal actions can be taken upon receipt of the report from the bank examiners at Blair." Mr. Davis will go to Blair Friday after receiving the report and confer with Coun. ty Attorney Grace Ballard on what action is necessary. Mr. Davis will endeavor to go to Omaha from Blair in time to attend the meeting of state bankers. He was prevented from going to Blair today by not receiving the report and a meeting of the pardon board. Citizens of Hadar conferred with the attorney general today on plans by which they hope to rejuvenate the bank recently closed in that city. In case a receiver for the bank is appointed it will be necessary to make application in the district court and one of the Omaha judges will make the appointment.

2. March 14, 1921 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, March 14, 1921

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Article Text

Warrant Is Issued for Bank Head Missing President of Blair Institution Charged With Violating Law on Four Counts. State Offers Reward Fred H. Claridge, president of the banking house of A. Castetter at Blair, whose disappearance February 27, uncovered one of the most disastrous bank failures in Nebraska history, today is a fugitive, not only from the wrath of trusting patrons whose confidence he betrayed, but from the criminal prosecutors of the state itself. A reward is offered by the state for Claridge's arrest, Attorney General Clarence A. Davis announced Saturday night. Complaints citing four specific counts against him were filed and a warrant was issued for his arrest. J. E. Hart of the department and commerce, Secretary of banking and Mr. Davis began checking up the bank's affairs Saturday. The examination will probably be concluded next Tuesday, when a receiver will be appointed. Cannot Be Opened. The bank cannot be opened, Mr. ) Davis declared. So great is the financial loss through "bad" paper that it will take weeks before an accurate checking can be made, according to Mr. Hart. A partial report from the state examiner shows the straits of the bank involve discrepancies of more than $800,000. Attorney General Davis characterizes it as one of the "most disastrous bank failures in Nebraska." Embarrassments of the bank are simumarized roughly by examining officials as follows: Worthless securities, $250,000. Doubtful securities, $300,000. "Frozen" securities, $250,000. This makes a total of $800,000. Of this amount, however, a considerable part of the $250,000 "frozen" securities represents loans on which a large sum will be realized eventually. Much of this is tied up in real estate investments, which will take time to liquidate. There will be some salvage also in the $300,000 listed as "doubtful securities." The nearest present estimate fixes the final loss at upward of $400,000. Davis Issues Statement. Attorney General Davis issued this statement to reassure depositers and others concerned in the bank's af fairs: "The affairs of the bank will be handled in such manner as will safeinterest. a guard every if We need shall be, go to to extreme lengths, le those avoid 'squeezing' both who are deposi- involved. This applies to tors and signers of notes. Depositors (Turn to Page Three. Column One.)

3. June 28, 1922 The Omaha Morning Bee Omaha, NE
Article from The Omaha Morning Bee, June 28, 1922

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Article Text

Blair Bank Receiver Sues Mrs. Castetter Suit to recover $36,000 worth of stock of the Banking House of Castetter of Blair, Neb., from Mrs. Anna C. Castetter was filed in district court yesterday by James E. Hart, receiver for the bank. In his petition Hart states that he has liquidated the assets of the bank and that they are insufficient to pay deposits and claims. Hart seeks to recover this stock under the state law governing liability of stockholders. Mrs. Castetter, Hart charges, has refused to turn over the stock. The stock, he says, was willed to her by her husband, Francis Castetter.

4. March 8, 1923 The Enterprise Blair, NE
Article from The Enterprise, March 8, 1923

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Article Text

SHERIFF'S SALE R. A. VAN ORSDEL By virtue of an order of sale issued out of the District Court of Washington County, Nebraska, and in pursuance of a decree of said Court in an action therein pending wherein James E. Hart, Receiver of Banking House of A. Castetter, was plaintiff and Annie F. Kemp, Samuel E. Kemp, G. A. Erikson, A. J. Taylor and Flora M. Taylor, were defendants, I will on Saturday, March 10, 1923, at ten o'clock in the forenoon of said day at the West Front Door of the Washington County Court House in the City of Blair, in Washington County, Nebraska, sell at public auction to the highest bidder for cash, the following described real estate, to-wit: The North Half of South Half of Lots 16-17-18 in Block 46 of the city of Blair, Washington County, Nebraska, the same being a tract 25 feet fronting Fifth street and 72 feet laying East and West, to satisfy one certain mortgage on the real estate above described. The plaintiff, on the 10th day of April, 1922, obtained judgment and decree of foreclosure in said action against said defendants in the sum of $1,085.00, together with interest thereon at the rate of six per cent per annum from the 10th day of April, 1922, for costs of said action amounting to $23.90 and accruing costs, and G. A. Erikson, on his cross petition and answer obtained a decree for the sum of $240.50, with interest at 7%, the said decree providing that said premises above described be sold to satisfy said judgment in case said judgment remained unpaid for a period of twenty days from the date of said decree, and said judgment being still unpaid and said decree being still in force and effect, the said premises above described will be sold to satisfy said judgment, the interest thereon, the costs and all accruing costs as provided by said order and decree and the law in such cases made and provided. Dated this 6th day of February, 1923, at Blair, Nebraska. MAURICE MEHRENS, Sheriff of Washington County, Nebraska. 2-5t

5. July 5, 1923 Burt County Herald Tekamah, NE
Article from Burt County Herald, July 5, 1923

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Article Text

Bank Receiver Wins Case. Receiver Hart of the banking house of A. Castetter at Blair, won in supreme court in a lawsuit instigated by the state bank of Herman to have a cashier's check of the Blair bank for $1300 it now holds declared to be a deposit and payable from the guaranty fund. The lower court allowed it as a general claim.

6. March 31, 1928 Nebraska Legal News Lincoln, NE
Article from Nebraska Legal News, March 31, 1928

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Article Text

STATE EX REL DAVIS V. BANKING HOUSE OF A. CASTETTER (Meier Intervener) FOLDA V. CLARIDGE No. 26261. Filed March 14, 1928. 1. The Constitution imposes upon a stockholder in an insolvent banking corporation a double liability to the extent of his stock, after the corporate property has been exhausted. Const., Art. XII, Secs. 4, 7. 2. The receiver of an insolvent banking corporation may invoke equity to prevent the payment of funds deposited by a stockholder until the latter's double liability is determined. 3. Before corporate assets have been exhausted, a. stockholder in an insolvent banking corporation, over proper objections, cannot be required to submit for adjudication his double liability. Prior the assets of an insolvent banking corporation in the hands of a receiver, a stockholder may waive the immaturity of his double liability to creditors and submit that issue to a court of equity for determination. 5. In a receivership a proceeding by a stockholder in an insolvent banking corporation to require payment of a deposit in his favor as a preferred claim and an action by the receiver to enforce double liability of the lepositor as a stockholder waiving immaturity of such liability may be consolidated by mutual agreement. 6. Litigable matters within the jurisdiction of the court and adjudicated are not open to relitigation in a subsequent action. 7. A third person's conditional or contingent interest in deposits by a stockholder in an insolvent bank does not necessarily prevent the receiver from setting off the cláim for deposits against the liability of the depositor as a stockholder, where immaturity of such liability is waived. Excerpt taken from a contract and inserted in the opinion held not an absolute or equitable assignment of deposits in an insolvent bank. Heard before Goss, C. J., Rose, Good, Thompson and Eberly, JJ., and Redick, District Judge. ROSE, J. William Meier is an intervening petitioner in equity, seeking to establish his right to funds deposited by Helen M Claridge in the Banking House A. Castetter and to esort to the bank guara Fund or payment of the deposits. The tems depositor's claim are two certificates of depo one or $500 and the other for $4,500, and a balance of $426.87 on a checking account, or $5,426.87 in all. Meier pleads a right to these deposits under an equitable assignment or written contract transferring them\ to him, as he alleges, for the purpose of applying the procee on a mortgage partially securing a debt owing to him by the mortgagors, Helen M. Claridge and her husband Frederick H. Claridge. In a proceeding by the state for a receivership to wind up the affairs of the Banking House of A. Castetter, hereinafter called the "bank," an insolvent corporation formerly conducting a commercial banking business at Blair, he depositor, Helen M. Claridge, presented to the receiver for allowance, April 23, 1921, her claim of $5,426.87 for the deposits described. This is the claim to which Meier succeeded, according to his petition in equity. The Claridges had owned capital stock issued by the bank. The receiver and the guaranty fund commission refused to pay the claim for deposits, on the grounds that the depositor is chargeable with the double liability of a stockholder in excess of her claim and that the debts (Continued on Page Two)