Irrigators Bank (Scottsbluff, NE)

Episode Information

Episode UID
76015671559
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7601567 routing
Routing Number
76-0156
Start Date
November 23, 1929
Location
Scottsbluff, Nebraska (41.867, -103.667)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
395d0d6a7b28a6de

Response Measures

None

Description

The articles focus on a legal battle over the receivership of the bank, which had already failed by 1929.

Events (3)
1. November 23, 1929 Receivership
Newspaper Excerpt
The report covered the period from November 23, 1929, to August 14, 1931, the date Clarence G. Bliss, former receiver, filed a final report and was discharged.
Source
newspapers
2. November 23, 1929 Suspension
Cause Details
The bank is described as failed and in receivership by late 1929; specific trigger for the initial failure is not detailed in these 1931-1932 articles.
Newspaper Excerpt
The report covered the period from November 23, 1929, to August 14, 1931, the date Clarence G. Bliss, former receiver, filed a final report and was discharged.
Source
newspapers
3. July 8, 1931 Other
Newspaper Excerpt
The injunction proceedings were started in the name of the failed Irrigators' Bank of Scottsbluff, for which Bliss is receiver.
Source
newspapers

Newspaper Articles (10)
1. July 8, 1931 Norfolk Daily News Norfolk, NE

Article Text

SEEKS GOVERNOR TEMPORARILY STRAINED FROM INTERFERING WITH RECEIVERS LUIKART MADE SECRETARY Chief Executive Asked to Show Cause By July 24 Why Me Should Not Punished for Contempt for Interference Lincoln. July heels. of Bryan's today Lincoln that would transfer 200 bank Luikart secretary the banking depart ment. action started Gering. Neb., which the govertemporarily restrained from interferring with Clarence Bliss, former department secretanow receiver for the failed stitutions The injunction proceedings were started the name of the failed Irrigators' Bank of Scottsbluff, for which Bliss The temporary restraining order issued by District Judge Carter, ordered hearing the for July 24 o'clock. The Judge Carter ruled. shall have until July these allegations Bliss petition "That the governor wrongfully undertaken possession control bank records and files and usurp the authority of the receiv- skillful and competent torneys employed assist the ceiver discharged and inexperienced and incompetent counemployed by the governor their places, thus jeopardizing interests of depositors. such acts the governor constitute unlawful and willful misuse of executive authority, unwith the bank his duties. usurpation of and contempt court. Although the Gering action fects only one the indicated that follow. One citation by Bliss that the governor had failed partment secretary offset the executive's appointment today Mr. Luikart that position. capitol learned that combination lock has been placed upon the door the receivership and list stockholders failed banks. Workers said done the order of the ernor. apparently to prevent Bliss Beynon, discharged the executive legal advisor the receiver. from gaining access records. Elevation of Luikgrt full from the position of deputy created by the governor when he first appointed the former be compliance with state code department desig nating the department head qualified receiver for failed banks, governor said. was defiance demand state senate last winter that Governor Bryan refused to department secretaries, placing deputies charge instead as economy move. was later held Atty. Gen. Sorensen Explains Appointment Governor Bryan explained his appointment of Luikart he believed the move would technical wording the and legal SEE PAGE NUMBER

2. July 8, 1931 North Platte Daily Telegraph North Platte, NE

Article Text

Governor Commanded Not To Interfere Clarence Receiver; Hearing July 24. Lincoln, July heels Governor Bryan's nouncement today in Lincoln that he would ask transfer of 200 bank receiverships to H. Luikart, secretary of the banking department, an action was started in Gering, Neb., in which the governor was strained from interferring with Clarence G. Bliss, former department secretary, now receiver for the failed institutions. The injurction proceedings were started in the name of the failed Irrigators' Bank of Scottsbluff, for which Bliss is receiver. The temporary restraining order issued by District Judge Carter, who ordered hearon the application for July at 10 o'clock. The governor, Judge Carter ruled. shall have until 20 to answer these allegations in Bliss' petition: "That the has governor wrongfully and unlawfully undertaken seize possession and control bank records and files and usurp the authority the receiver. "That skillful and competent attorneys employed assist the discharged and receiver inexperienced and incompetent counsel employed by the in their places, thus jeopardizing the interests of depositors. such acts by the constitute un'awful and ernor willful misuse of executive thority, unlawful with the bank receiver in his duties, usurpation of and contempt of Although the Gering action feets one of the 200 only ceiverships, it was indicated that might follow. more One citation by Bliss that the governor had failed name was offset department secretary the executive's appointment today of Mr. Luikart to tion. At the capitol it learned that combination lock has the door to the been placed upon vault containing the receivership records and list stockholders failed banks. Workers said done the order of the apparently to prevent Bliss Beynon, discharged by the executive as legal advisor the receiver, from gaining to the records.

3. July 9, 1931 The Oshkosh Northwestern Oshkosh, WI

Article Text

OPPONENTS OF BRYAN FAIL TO GAIN ACCESS OF STATE BANK RECORDS Lincoln Opponents o: Gov Charles W. Bryan were looked to today for the next move . the Nebraska department of trade and commerce scrambled for custody of the books and records of the division of state bank receiverships The governor's rivals vesterday failed to gain access to the books when Bryan declined to be served by Sheriff Claude Hensel with writ of replevin Attorney for C G Bliss. the governor's chief opponent intimated they might resort to writ of mandamus to compel Bryan and his associates to relinquish the books Earlier yesterday Bryan had promoted E H Luikart from deputy secretary to secretary of the state commerce department and ordered him to take over the more than 200 receiverships now held by Bliss former secretary of the commerce de partment On the heels of that action came the news of the court order restrain ing Bryan from interfering with Bliss in his handling of the affairs of the now defunct Irrigators bank of Scotts Bluff one of the list of receiverships being handled by Bliss. The trouble started last week when Bliss and other state bank re ceivers asked the governor to keep his hands off the receivership division. Bliss charged that without his consent Bryan had discharged "many experienced and trusted employes. replacing them with his (Bryan's) political friends Bryan answered by request of "dismissing" the chief counsel of the receivership division for "insubordi nation' and charging that "plot had been made to secretly remove from the state house at night the records of the receivership division During a recent hot spell gila monster 20 inches long was found on street in the heart of down town St. Louis

4. July 10, 1931 Lincoln Journal Star Lincoln, NE

Article Text

FROM TODAY'S MORNING JOURNAL NOTICE OF SUIT IS SERVED UPON BRYAN Restraining Order of Bliss of Court Charge Is Involved. County Sheriff Hensel Thursday presented Governor Bryan with the tempororder which ClarBliss Wednesday district court at Gering to prevent the governor from Bliss receiver of the Irrigators Bank Scottsbluff. District Judge E. Carter, who issued injunction, will preside the hearing on July at GerBryan given until July 20 answer petition Bliss, which among other things charges governor with contempt Receiver Bliss, in charge of 200 failed banks, who failed Wednesday obtain records capitol by the fusal Governor Bryan accept service writ of replevin, being the title of ceiver result orders the governor Radke, the receivership of state department trade commerce. Arthur Mullen Omaha, democratic is assisting Mr. Radke making application district courts for the substitution the name Secretary H. the department in place Judge Broady of the Lancaster county court the application for the change name in all receiverships Lancaster Radke had to make other Thursday Friday. Permission to the name Luikart for that of Bliss to be asked immediately in the judicial districts: Judge James Begley, Plattssecond district; Judge W. Omaha, fourth district; Judge Louis Lightner, Columbus, sixth district: Judge Mark Ryan, Pender, eighth district; Judge Clinton Chase, Stanton, ninth district: Judge Robert R. Dickson, O'Neill, district. Some attorneys contend that Radke and Mullen have no authorchange the bank receivers step should be taken the attorney general who the by law make the original for the state for appointment of support of his contention that banking that the secretary of the department shali receiver banks is special law controls to the exclusion of any general under which district appoint receivers property other corporations, Radke cites brief by his predecessor, Beynon, of the appointment of receiver mortgaged property in Johnson property belonging to bank which Mr. already state Beynon Sets Precedent. The district court had appointed Dafoe mortgaged property. Mr. Beynon appealed Nebraska on the ground that lower court erred as were already in the the law in hands Bliss, bank. Mr Beynon's brief cited South Dawhere the court of that state the followits whole of the laws relating to the department banking that the posand control of the property of an insolvent bank are the of banks, subject the authority of the circuit court the county of the bank's domicile. other the insolvent bank really legis. The only of the court's compared statutory that does not appoint the of banks his subordibut the court's over and his subordinates ample the power hiring firing The concerning regulation of banks, being relating to special subject, must be held to be mount general laws that are indeputy sheriff continued guard of the state the capitol Thursday afternoon. the men employes of the of trade commerce took hand truck load records out of the vault and hauled them to adjacent offices where they were restored to metal filing cases. These records had been placed in the vault before sheriff Lancaster county swooped down with of plevin, writ upon which he tained nothing on account Governor Bryan's refusel to recognize danger of seizure having apparently passed, the records taken from offices and placed the vaults were restored their cases use of auditors the receivership division.

5. July 27, 1931 The Sioux City Journal Sioux City, IA

Article Text

Bryan Is Enjoined from Interfering with Bank Receiver Gering. Judge E. F. Carter granted permanent injunction here restraining Gov. Charles W. Bryan from interfering with Clarence G. Bliss, former trade and commerce secretary, as receiver of the Irrigators bank of Scottsbluff. The decision, however, dismissed contempt proceedings instituted against Bryan on the strength of Bliss' claim that the governor violated the restraining order by refusing to give him access to the reJudge Carter also refused the application of Gov. Bryan for the transfer of in his district from Bliss to E. H. Luikhart, successor to Bliss as the departmental head.

6. July 27, 1931 The Grand Island Independent Grand Island, NE

Article Text

Bryan, Bliss Bank Hearing Draws Close Governor Is Praised and Con. demned for His Actions by Lawyers Gering, Neb. July 27. neys for Gov. W. Bryan and Clarence G. Bliss, former secretary of the department of trade and commerce, presented final arguments in district court here Saturday in which the chief executive was both defended and criticized for his handling of bank receivership affairs Counsel for Bliss, who gained restraining order here preventing Bry. an from interfering with the former secretary in his of receiverships, declared evidence warranted holding the governor in contempt. Attorneys for the executive, on the other hand, his acts and upheld Bryan in his recent appointment of E H. Luikart as department Neighbors, appearing with Arthur Mullen, Omaha, and Franz Radke, for Bryan, held that the executive could not be cited for contempt in that he was acting under specific law on which no interpretation had been placed by the supreme He held that Bryan was acting in his own when he hired and discharged employes of the department, and should not be penalized for exercizing official discretion in matters of state government. The restraining order was issued in connection with the receivership of the failed Irrigators' Bank of Scottsbluff. In attempting to show con. tempt of court upon the governor part, the attorneys for Bliss refer: to Bryan's refusal to permit Bliss have access to the bank receiversh York, Scottsbluff counsel for Bliss, held that Bryan his sphere when he attempted to dictate affairs of the receivership division, department he said is under the rection of the courts and entitled to its protetcion. He further contended that Bryan's appointment of Luikart was null because it had not been

7. November 26, 1931 Omaha World-Herald Omaha, NE

Article Text

STATE BANK RECEIVER REPLIES TO GOVERNOR $175,507 Collections Compared to Total $7,526 Expense. Scottsbluff, Neb., Nov. 25 (P).A. E. Torgeson of Scottsbluff. recently appointed receiver of 11 western Nebraska failed state banks, today answered charges he said Governor Bryan has made against him. Governor Bryan, Torgeson said. charged that he (Torgeson) had received "more salary than any other assistant receiver in the state, and in so doing has taken money away from the depositors.' In his statement, Torgeson is making public reports on each of the failed banks he has been administering, releasing today a report on the Irrigators bank of Scottsbluff. The report covered the period from November 23, 1929, to August 14, 1931, the date Clarence G. Bliss, former receiver, filed a final report and was discharged. Bank Charged $1,775. Torgeson was appointed by District Judge E. F. Carter to replace Bliss, after Judge Carter declined the application for appointment of E. H. Luikart, secretary of the state department of trade and commerce. Judge Carter, prior to the appointment of Torgeson, said he would not appoint Luikart until he was assured there would be no interference from Governor Bryan. Torgeson's report said his mileage and while away from home. and the cost of clerks totaled $2,748.33, while for the same period the state made charges of $1 against the bank. He showed total expenses for all items at $7,526.39 as against collections of $175,507.03. figuring collection expenses at 4.28 per cent. In the same period he collected $6,634.36 in interest. Gets $300 Month. "We would call particular attention." Torgeson's statement said, "to a charge of $1,775 made by the state commerce department for taking care of these funds as compared with a cost of $2,748.33 paid

8. December 1, 1931 The Alliance Times-Herald Alliance, NE

Article Text

RECEIVER ISSUE TO THE SUPREME COURT State Bank Department Protests the Appointment of Torgeson by District Judge Right of a district judge to appoint a man other than the secretary of the state department of trade and commerce as receiver for a failed state bank was placed before the Supreme court Tuesday morning when Governor Bryan's banking department appealed from refusal of District Judge Carter to name E. H. Luikart as receiver for five failed banks in Scotts Bluff county. The five banks, State bank of Minatare, Mitchell State bank, Irrigator's bank, Scottsbluff. Lymar. State bank and American bank, Mitchell, were ones in which Judge Carter appointed A. E. Torgeson as receiver instead of Luikart. The western judge discharged Clarence G. Bliss as receiver following submission of final reports but denied the application of Luikart for appointment as receiver. Torgeson, who had been assistant receiver of the banks, and who was held by the court to be familiar with their affairs and competent to administer the receiverships, was named instead.

9. April 16, 1932 The Grand Island Independent Grand Island, NE

Article Text

Judge Announced He Would Not Consider Substitution of Luikart for Bliss Unless Assured Bryan Would Not Interfere. Lincoln, Apr. 16. (AP)—The Nebraska supreme court today sustained the action of District Judge E. F. Carter of Gering in appointing A. E. Torgeson of Scottsbluff as receiver of seven failed state banks in the seventeenth judicial district. Judge Carter had refused the application of E. H. Luikart, secretary of the state department of trade and commerce, to be made receiver succeeding Clarence Bliss, his predecessor in office. The supreme court held that where the liquidation of a state bank is conducted in a court of equity the procedure is judicial and not executive. The court also ruled that the appointment of a receiver should not be made or controlled by the governor or legislature. It is the imperative duty of the judicial department to protect its jurisdiction at the boundaries of power fixed by the constitution, the court declared. A legislative act providing for the appointment of the secretary of the department of trade and commerce as receiver for all insolvent state banks must be regarded as merely a legislative recommendation to the court, the opinion stated. Otherwise this act would be unconstitutional, the court finds. The decision of the court terminates a controversy between state banking department officials, Gov. Bryan and Judge Carter. Torgeson was appointed receiver of the banks when Clarence G. Bliss, former secretary of the department of trade and commerce, resigned. F. C. Radke, counsel for the receivership division, applied for the appointment of Luikart, but this was refused by Judge Carter. Seven Banks Affected Judge Carter announced he would not consider the substitution of Luikart for Bliss until he was assured Gov. Bryan would not interfere with Luikart as receiver. Torgeson subsequently was named. The seven banks concerned in the decision today are the State Bank of Minatare, the Mitchell State Bank, Irrigator's Bank of Scottsbluff, the Lyman State Bank, the American Bank of Mitchell, the Nebraska State Bank of Bridgeport, and the Bank of Bayard. The eighth bank in the 17th district turned over to Torgeson was the Bridgeport bank. "In a cause properly before a court of equity for determination," the court added the appointment of a necessary receiver is a judicial function which cannot be exercised or controlled by the governor or the legislature." In another place the court said: "It is an imperative duty of the judicial department of government to protect its jurisdiction at the boundaries of power fixed by the constitution."

10. April 21, 1932 The Western Nebraska Observer Kimball, NE

Article Text

TORGESON WINS IN SUPREME COURT SUPREME COURT UPHOLDS DECISION OF JUDGE CARTER IN BANK RECEIVER CASE Linceln. April 16-The Nebraska supreme court today affirmed the action of District Judge E. F. Carter in appointing A. E. Torgeson as receiver of seven failed banks in the seventeenth judicial district. The deeision terminates a controversy between state banking department officials, Governor Bryan and Judge Carter Torgeson was appointed receiver for the banks when Clarence G. Bliss, former secretary of department of trade and commerce, resigned. F. C. Radke, counsel for receivership division. applied for appointment of E. H. Luikart, Bliss' successor, but this was refused by Carter. Carter announced he would not consider substitution of Luikart for Bliss until assured Governor Bryan would not interfere with Luikart as receiver. Torgeson subsequenty was named. The seven banks concerned in the decision today are: State bank of Minatare Mitchell State bank, Irrigators bank of Scottsbluff, Lyman State bank, American Bank of Mitchell, Nebraska State bank of Bridgeport, and the Bank of Bayard. The eighth bank in the district turned over to Torgeson was the Bridgeport Affirming Judge Carter's action, the court held where liquidation of an insolvent state bank is conducted in court of equity pursuant to law, the proceedings is a judicial and not executive order, from which an appeal is allowed by statute. "In a cause properly before court of equity", the court added, "for determination, appointment of a necessary receiver is a judicial function which cannot be exercised or controlled by the governor or the legislature." The court also said: "It is an imperative duty of the judicial department of the government to protect its jurisdiction at the boundaries of prower fixed by the constitution.' Answering the contention of Governor Bryan, Luikhart and Radke, that the law clearly specifies the trade and commerce department secretary shall be sole and only receiver, the court said: "A legislative act providing the secretary shall be the sole receiver of all insolvent state banks, amounts to no more in a judicial proceeding, properly pending in a court of equity for the liquidation of a bank, than legislative recommendation to the judiclary to appoint him. as otherwise the enactment would be an unconstitutional encroachment on judicial power." The affirming decision, written by Justice W. B. Rose and concurred in by majority of the court, was dissented to by Justice Bayard A. Paine Justice L B. Day also dissented to the majority decision, but did not concur in Justice Paine's prepared opinion of dissent.