State Bank (Papillion, NE)

Episode Information

Episode UID
76100671519
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7610067 routing
Routing Number
76-1006
Start Date
July 3, 1926
Location
Papillion, Nebraska (41.154, -96.042)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
0952cb54ba695aa5

Response Measures

None

Description

Closure followed discovery of large shortages and the disappearance of the bank president.

Events (2)
1. July 3, 1926 Suspension
Cause
Government Action
Cause Details
Taken over by the state banking department after discovery of major discrepancies/shortages and the president's disappearance.
Newspaper Excerpt
Nebraska Bank to Be Closed PAPILLION Neb., July The State Bank of with deposits of $325,000 will be taken over by the state department of trade and commerce today because of discrepancies in the bank's records
Source
newspapers
2. July 7, 1926 Receivership
Newspaper Excerpt
No Business at Bank The bank no business today ... has been placed charge of the bank Albert Held, commission, will turn to Lincoln today ... Brownell, receiver of the failed State Bank of Papillion has filed an appeal ...
Source
newspapers

Newspaper Articles (13)
1. July 3, 1926 The Waco Times-Herald Waco, TX
Article from The Waco Times-Herald, July 3, 1926

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Article Text

WITHDRAWALS BY DEPOSITORS FORCE FINISH Run on Bank Closes One And State Department Closes Another FORT LAUDERDALE Fla., July 3. City bank failed to open its doors for this morning following an order issued by the board directors placing the bank in the hands of the state bank de. partment The two other banks in the city opened usual and deposi tors assured that there was no cause for alarm. Homestead Bank Closed HOMESTEAD July Heavy withdrawals by depositors in the Citizens' bank of Homestead caused the institution to close its doors to day pending settlement. Officers of the bank said they expected to reopen Tuesday. Nebraska Bank to Be Closed PAPILLION Neb., July The State Bank of with deposits of $325,000 will be taken over by the state department of trade and com. merce today. because of discrepancies in the bank's records totalling about tary of the state guarantee fund has Edward C. Goerke, president of the bank. has been missing since midnight Thursday Detectives found his Omaha apartment in disorder.

2. July 4, 1926 Nebraska City News Press Nebraska City, NE
Article from Nebraska City News Press, July 4, 1926

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MAY BE A SHORTAGE Guranty Fund sion in of Bank; Deposits $325,000 OMAHA, Neb., While the search for Edwin Goerke, missing president of the state bank at PapflHon, Neb., was on tonight, anthorities are investigating Goorke's connection with Jack Parson, Pilger, Neb., youth, who claims to be heir to two million dollar estate. Joseph Gray, attorney for Parson, admitted tonight that Par. had credit of $8,000 in the Papillion bank but that he drew only $1,500 this out before Goerke Investigated the young man's claims to the fortune and withdrew the credit. Authorities are investigating the supposition that Goerke was the idea of handling the fortune which the young man believed he was to inherit might have engaged in wild speculation in which the nearly $200,000 shortage might have been lost. Goerke's alleged operations rán for two years before the discovery was made. OMAHA, Neb., July State Bank of Papillion, Neb., in the hands of the State Guaranty Fund Commission today and Edward Goerke, the president. is missing. Albert Held, the Commission. declared that Goerke has Thursday night. after he had Isaid he intended himself. The exact condition of the bank will not be known until after full audit has been made of the books, but it estimated that there may be shortage of more than The bank's deposits were Hunt for Goerke. who is well known in state banking circles, directed by Sheriff Condit of Lincoln. The missing man was seen last and did not appear the bank on Friday. Authorities have no clue to whereabouts. Goerke's beautiful apartment at the Nottingham, Omaha, (Turn to Page Col.

3. July 4, 1926 Nebraska City News Press Nebraska City, NE
Article from Nebraska City News Press, July 4, 1926

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Marshall Cashier of Wrecked Sarpy Bank Earl Marshall, former Nebraska City and Douglas man and at one time with the Otoe County National Bank of Nebraska cashier the State Bank of Papillon, whose president, Goerke missing, leaving the institution bank examiners believe is condition. who married Miss Leta Thomas, Nebraska City, is assisting the State Banking Bureau to straighten out the affairs of the bank.

4. July 6, 1926 The Grand Island Independent Grand Island, NE
Article from The Grand Island Independent, July 6, 1926

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CASHIER CUSTODY Marshall Arrested As An Aide to Missing Banker in Embezzlement PRESIDENT IS SOUGHT Griggs Announces Several Clues Have Been Obtained Which May Lead to to the Bank Mounting. Omaha, July last night of Marshall, cashfer of the State Bank Papillion, aide to Edward Goerke in the alleged embezzlement of large sums from the Papillion the first definte development in clearing up what Kirk Griggs, state banking secretary, has callNebraska's worst bank misman- agement. Marshall was arrested in Omaha warrant charging him with being fugitive from justice and as being jointly guilty with Goerke in the alleged embezzlement of about He has been assisting examiners of the state banking department in checking accounts since the bank closed Saturday. The warrant joint one naming Marshall and Goerke. signed by County Judge Wheat, of Sarpy county. Nothing has been heard of Goerke, who disappeared Friday night. Working on Clues. Lincoln, Neb., Griggs, secretary state trade and commerce department, nounced today that have been obtained which may lead to the prehension Goerke, missing Papillion banker who disappeared last Thursday. Mr. Griggs would divulge the nation of the information. The loss thus according examiners reports today, about $171,000. Griggs said. He also advanced theory that Goerke may have stolen destroybonifide notes bank, well forged and raised notes. This, Mr. said, doubly difficult to accurately check the loss. Forgeries, added, the most difficult of any irregularto catch.

5. July 7, 1926 Evening World-Herald Omaha, NE
Article from Evening World-Herald, July 7, 1926

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SHERIFFS TRAIL GOERKE; NEWS FROM PURSUIT Forged Notes of Papillion Banker Were Bought by Union State Bank. MARSHALL IS FREE ON BOND OF $8,000 Olderog of Sarpy county Sheriff Condit. left Papillion together Monday in Con search of missing the State Bank Papillion, absent and sent no word the progress their pursuit. deputy said believed in vicinity of City Louis with warrant for Goerke's arrest on fraud Marshall. cashier of the bank, his release from custody thousand dollar bond Tuesday night, did come Papillion today He announced that he would couple days and if desired. would return their the bank's records check of the Richfield bank controlled Goerke, began this morning by Edmund examiner the guaranty fund and while check 10 days ago nothing amiss in the Richfield second being measure Graham. bank cashis aiding. County Attorney Collins of Sarpy county said Union State bank Omaha holds 32 thousand dol in notes given by money Included are declared follows August Max All the men affidavits that the forged Charles Leaders. wealthy Papil lion farmer holds from John farmer for three lars, the signature Edwin Papillion, dollars signatures forged No Business at Bank The bank no business today Buckner, guaranty fund commission Hedge Rohlfs, been placed charge of the bank Albert Held, commission, will turn to Lincoln today phoned night from man, apparently demented, had been taken from train. He said (Continued on Page Column

6. July 10, 1926 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, July 10, 1926

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EASY TO SEE GUARANTY FUND OFFICER SAYS RECORDS Blames Bank Examiners for Not Seeing Papillion Bank Condition Traced. OMAHA, July and records of the wrecked State bank Papillion were in such condition, even before the recent spe examination resulted disclosures the discrepancies, that the true state of the bank's affairs should have been known examiners long ago, according Buckner, assistant secretary the guaranty fund commission. who with crew is busy with the wwork of salvage. "There scarcely an account records not destroyed that is not balance," he said. Displaying ledger, he continued: sheets have been torn out, and have learned that they have been gone for some time. only one or few indications irregularity how might have escaped notice of examiners. But with such multitude of discrepencies, right, not see how the fact could escape casual scrutiny Buckner said that after he came from Lincoln try to salvage the wreck, he spent hours quizzing aminers an effort find out how and when they first discovered wrong. "Seemingly they became suspiciabout item, but didn't know for sure that was he said. "So they asked the bank president and cashier go with them to Lincoln to explain Kirk Griggs, head the state banking "But when the president disappeared that night, and next mornrecords in the bank were found be missing or messed, they became convinced that there was something radically amiss.' Buckner said he not speaking of outstanding forged notes. "These not easily detected in examination there is for suspicion beforehand." Five more substantial residents the vicinity of Papillion have reported that notes bearing their signatures and put up by the bank are Buckner said. They are Hans Best(Continued

7. October 15, 1926 The Omaha Evening Bee Omaha, NE
Article from The Omaha Evening Bee, October 15, 1926

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SIGNATURE QUESTIONED Rohlfs, of Bank Operator for Receiver, Identifies Writing on Notes as That of Former Cashier. The spirit of Goerke misspresident of the State Bank Papillion over the district courtroom Papillion Friwhere his Charles Marshall, former cashier of the bank, trial, with forgery and utterance of two notes totaling The morning session occupied by an examination Tewes Rohlfs of Council who placed in charge of the bank by Brownell, receiver. July 1926. He identified two notes, drawn May 13, 1926, one for purporting bear the signature Michael Klein. and the other for bear the nature of on Signature. He testified that he had had occasion become familiar with Marshall's handwriting that the body of was Marshall's hand. He made no comment on the signatures Rohlfs ledger sheets which gave the record of the account Michael Klein the bank and other bank records including the note register Rohlfs also testified that eertain notations on the notes were the handwriting of Goerke, the missing president and said entries concerning the notes in the note register in Goerke's hand. This was and substantiated Marshall's contention merely drew the notes and turned them over to Goerke Writing Experts Not Called. Shane Omaha and Jay Fordyce Wood of Chicago, hand writing experts called by the state, appeared in the courtroom Friday but were not called to testify They pected to take the stand Friday afternoon. Records of gun club of which Marshall which are admittedly in his own handwriting were introduced basis for comparison William W. Maish of Des Moines and C. Shearman of Page Column Two.)

8. December 27, 1926 The Plattsmouth Journal Plattsmouth, NE
Article from The Plattsmouth Journal, December 27, 1926

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Former Bank Cashier Admits He Embezzled Glenn Benter Gets 10 Years for Five Hundred Dollars From Failed Richfield Bank. Papillion, Neb., Dec. former cashier the First State of Richfield, four south of who was at Schuyler, Neb., warrant charging which was sworn here by County Attorney pleaded guilty today at his preliminary arraignment before CounJudge Wheat. was sentenced this afternoon District Judge James Begley, term of from to ten years. Benter, cousin Goerke, missing former president of both Papillion State bank and the First State bank Richfield, both of which failure summer, left the latter stitution before it was taken the state guaranty fund commission. failed with the crash of the State bank. In the warrant, he was formally cused five hundred this At the time the Richfield bank closed, understood that of funds approximately thirty Benter employ bank went to the his parin Burke, and later When County Attorney Collins of his he signed the complaint based. In his plea of guilty before Judge Wheat, he had no comment to make. Sheriff Olderog of this county to Papillion at today from Omaha where he took him custody from the sheriff at Schuy-

9. September 23, 1927 Nebraska Daily News-Press Nebraska City, NE
Article from Nebraska Daily News-Press, September 23, 1927

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Burr Bank Wants Money at Papillion LINCOLN. Nebr., Sept The guaranty fund commission. through Receiver Brownell of the State Bank of Papillion. appealed to the supreme court Wednesday from the allowance by the district court of Sarpy county of claims against the guaranty fund of $4,598 for Ernest Ruff and $4,900 in favor of the American bank of Burr. Huff had number of transactions with the bank. and his claim was cut from $6,965. The bank at Burr is operated by H. Goerke. a brother of the president of the Papillion bank, and its claim is founded on deposit in the failed bank The receiver claimed that this was fictitious credit and was created out of kiting erations by the Papillion banker. which was denied by the Burr bank and claimed by it to be all done in good faith and for value received. Scouts Visit Barstler. Members of Boy Scout Troop visited secutmaster, County Clerk Arthur Barstler. Wednesday evening Harvey Risk. chairman of the accompanied the Scouts: Mr. Barstler is confined to his home result of broken ankle. sustained several weeks Don't buy "heat circulator without seeing "The Fire Place Radiona" at Ormes Hardware. 9-28

10. November 15, 1928 The Lincoln Star Lincoln, NE
Article from The Lincoln Star, November 15, 1928

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BANK RECEIVER APPEALS ORDER ALLOWING CLAIM R. Brownell, receiver of the failed State Bank of Papillion has filed an with the supreme court from an order of the district court of Sarpy county which lowed Albert Halpin's claim against the guaranty fund Halpin had $378 on deposit in the bank the time it failed. In petition he asserted that because his work took him from one town another he from knowing of the failure or knowing was necessary for him to file claim The receiver protested the claim it presented the time limit had passed for the filing of depositors claims. pointed that the receiver complied with the law in sending out notices but Halpin claimed that he had never received such notice. asserted that the law fix. ing limit on the time for filing claims it tended to control and limit the authority the The district court allowed Halpin preferred claim.

11. November 16, 1928 The Omaha Evening Bee-News Omaha, NE
Article from The Omaha Evening Bee-News, November 16, 1928

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BANK RECEIVER APPEALS CLAIM Lincoln, Nov. 0. Brownell, receiver of the failed State Bank of Papillion, Thursday appealed to the supreme court from an order of the district court of Sarpy county which allowed Albert Halpin's claim against the guaranty Halpin had $378 on deposit in the bank at the time it falled In his petition he asserted that be cause his work took him from one town to another he was prevented from knowing of the bank's fall are or knowink that it was necessary for him to file claim. The receiver protested the claim because it was after the time limit had passed for the filing of depositor's claims. It was pointed out the receiver had complied with the law in sending out notices to but Halpin claimed he had not such a notice Halpin asserted that the law fixing a limit on the time for filing claims was it tended to control and limit the authority of the The district court allowed Halpin a preferred claim

12. May 7, 1930 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, May 7, 1930

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PROTESTS A DECISION CONTRARY LAW State Bank Receiver Says It Amounts to Repeal and Interferes With Liquidations. Receiver Brownell of the State bank of Papillion has asked the supreme court for rehearing of the case in which that tribunal alAlbert Halpin, depositor, to file claim after the six months period fixed by law had expired. He says that the trial court had no discretion in the matter, in the face of the plain provisions of the and for the courts to hold that they have the right to give relief to judicial repeal of an act of the legislature. Halpin was farm hand who had left the Papillion neighborhood after he had made deposit in the bank. and being absent in another state had not heard of the failure until after the time limit for filing claims had expired. The receiver says that the court has hitherto fully recognized the application of this law the filing of claims: that its decision now is contrary to the plain language and clear intent and reason the statutes; that six other states where similar law in effect have recognized its validity, that the court fails to cite an applicable authority for its acts. The court decision criticised the statute in unmeasured words, pointing out that no diligent search is required to find creditors and other defects in notices to Attorneys for the receiver say that the guaranty fund is laboring under difficulties and its future is uncertain. Some of its difficulties have been due to court interpretation of legislative enactments so as to render them confused and uncertain. In this particular case the result is to lay down rule that will delay the final liquidation of failed bank, and make hazardous the payment of dividends during liquidation since later other claims may be allowed

13. March 3, 1931 The Lincoln Star Lincoln, NE

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ORDERS MARSHALL TO PAY ALIMONY OMAHA March 3-(P) E Marshall, former Papillion banker, Monday was ordered to pay $7.50 per week to wife, Leata, who has sued him for divorce, out of his earnings of $20 as night manager of road house near here. The payments will be in form of temporary court ruled. Marshall formerly was cashier of the failed Papillion State bank. He was paroled year ago after serving his term after conviction of fraud charges in connection with