American State Bank (Scottsbluff, NE)

Episode Information

Episode UID
76120171531
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
7612017 routing
Routing Number
76-1201
Start Date
July 16, 1927
Location
Scottsbluff, Nebraska (41.867, -103.667)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
c0829435c7fee8c0

Response Measures

None

Description

Closed/taken over by the state guaranty fund after a rumor-driven run in July 1927; later liquidation/receiver payouts reported.

Events (3)
1. July 16, 1927 Run
Cause
Rumor Or Misinformation
Cause Details
Depositors withdrew funds after rumors of financial difficulty led to heavy withdrawals on Saturday.
Measures
Other local banks extended assistance; depositors protected by state guaranty law.
Newspaper Excerpt
RUMORS OF DIFFICULTY RESULT IN RUN ON BANK
Source
newspapers
2. July 18, 1927 Suspension
Cause
Government Action
Cause Details
Taken over by the state guaranty fund / state examiners intervened and the bank was closed and placed in receivership
Newspaper Excerpt
The American State Bank of Scottsbluff was closed Monday morning following rather heavy run
Source
newspapers
3. July 19, 1927 Receivership
Newspaper Excerpt
American State bank ... taken over the state guaranty fund ... Deposits totaled $895,221 ... it was capitalized in 1920
Source
newspapers

Newspaper Articles (11)
1. July 19, 1927 Norfolk Daily News Norfolk, NE
Article from Norfolk Daily News, July 19, 1927

Click image to open full size in new tab

Article Text

Scottsbluff. American State bank, the largest institutions western Nebraska, doors yesterday morning, taken over the state guaranty fund bank was organized in 1920 Wildy, formerly owner First National bank Hemingford, and Wildy, banker this Deposits totaled $895,221 and loans and discounts amounted shown by its statement June 30. It was capitalized In financial circles the failure the bank was ficient to effect seriously are three other strong in the valley, including the Platte State bank, one the biggest in Nebras-

2. July 22, 1927 The Gering Courier Gering, NE
Article from The Gering Courier, July 22, 1927

Click image to open full size in new tab

Article Text

BANK CLOSED RUMORS OF DIFFICULTY RESULT IN RUN ON BANK Organized in Scottsbluff About Eight Years and Had $900,000 Deposits Last Report The American State Bank of Scottsbluff was closed Monday morning following rather heavy run Saturday which cut down its available cash resources. The institution showed its last published statement loans the extent of more than one million dollars. Depositors are protected the state guaranty law, and while the closing of the bank cannot fail to serious, not believed that affect general business unusual manner, although mere suspension banking institution in communhas no good effects. Whether will be after state examiners over the situation to reorganize some other method reopen matter of speculation. Officers the bank are Wildy, president; Clinton Wildy. cashier: and Morrison. Wildy and Jens Peterdirectors. Other banks Scottsbluff and surrounding cities extending every assistance possible the closed and depositors general inconvenience beevery mitigated as far as possible. Lyman, brother of Chas. of this city and W. H. Lyman arrived here yesterday from New York for less tended visit. Mr. Lyman has been for the head of the Stanmany years dard Oil interests at Shanghai, China, but retired from the position July visiting Fargo, and will join him here later. Mr. Lyman has visited here before.

3. July 22, 1927 The Petersburg Index Petersburg, NE
Article from The Petersburg Index, July 22, 1927

Click image to open full size in new tab

Article Text

Over the State A new Lutheran hospital is to be erected in Fremont. The land for the site has been donated and the money is ready for the erection of one of the largest hospitals in the city. It will benear the site of the Lutheran Home Finding Association. The American State of Seottsbluffs, was taken over by the state a few days ago. This is one of the largest institutions in the west, having deposits of about a million dollars. The loss seems to be S) heavy that the Guarantee Fund Commission has not decided as to whether or not it will run the bank preferring to let a receiver be appointed and liquidate it that way. A Bridgeport report is h a t Frank McCannis has built a pen on the side of his car and in it is kept a goat to supply milk for the family while on their vacation. This may makr a new demand for goats Kamensky may yet reap a harvest. The Dalton Co-operative Society which features wheat as its staple trading stock has paid a dividend of 00 to its share holders out of a net earning of over $29,000.

4. August 15, 1930 Scottsbluff Republican Scottsbluff, NE
Article from Scottsbluff Republican, August 15, 1930

Click image to open full size in new tab

Article Text

banks, formerly operating under the state guaranty law in this city. The payments being made this time bring the total paid to depositors of the American State cent, the payment made now five cent of per deposits. Including the payment now being made depositors of the Irrigators State have received 45 cent their deposits. It stated that all the payments will amount to approximately $50,000.

5. August 21, 1930 Banner County News Harrisburg, NE
Article from Banner County News, August 21, 1930

Click image to open full size in new tab

Article Text

DEPOSITORS OF FAILED BANKS WILL RECEIVE DIVIDEND PAYMENTS Scottsbluff ing to Bank Receiver, A. E. Torgeson, dividend payments are being made to depositors of the defunct American and Irrigators State banks, formerly operating under the state guaranty law in this city. The payments being made at this time bring the total paid to depositors of the American State up to 53 per cent, the payment being made now is five per cent of total deposits. Including the payment now being made depositors Irrigators State have received 45 per cent of their deposits. It is stated that all the payments will amount to approximately $50,000.

6. September 23, 1931 Osmond Republican Osmond, NE

Article Text

Bank Receiverships Are Denied Luikhart Denying application of E. H. Luikhart, secretary of the state department of trade and commerce, District Judge Carter Thursday assigned a number of independent bank receiverships in western Nebraska to A. E. Torgeson of Scottsbluff. Judge Carter recently announced in other receivership actions that he would not appoint Luikhart in place of Clarence G. Bliss, former secretary, or other receivers, until he had assurance that Governor Bryan would not interfere. The independent receivership transfers were made after H. C. Peterson of Lodgepole, resigned. The Bridgeport, Angora and Broadwater banks were then placed under Torgeson's jurisdiction. Peterson will file final reports at once on the American State bank of Scottsbluff and the Security State bank of McGrew, and will resign from their receiverships it was stated. Togerson is expected to also be assigned these banks. Inasmuch as affairs of the Oshkosh State, Minatare and Gering State banks are nearly wound up, Mr. Peterson is expected to close the receiverships within a short time. SIDNEY.—H. C. Peterson of Lodgepole, receiver of a number of failed banks in western Nebraska, has resigned as receiver of the Bridgeport, Angora State and Broadwater State banks. District Judge Carter appointed A. E. Torgeson to succeed Peterson. Applications for the appointment of E. H. Luikhart, secretary of the state commerce department, as receiver were on file with Judge Carter but he said he would not make the appointment until Luikhart had agreed to work under the direction of the court.

7. November 26, 1931 The Scottsbluff Pioneer Scottsbluff, NE

Article Text

Luikhart Files Suit To Oust Torgeson as Failed More fireworks broke out this week in the defunct bank situation in westNebraska, when word was received that E. H. Luikart and Gov. Bryan were filing suit to have Torgeson removed as receiver eleven failed banks in western Nebraska. Torgeson was appointed by Judge E. Carter some time ago. The Governor charges that Torgeson has received more pay than any other bank receiver, and that such excess salary must come out of the depositors' share of recovered funds in failed banks. further declared that banks in of the state would not pay out percent under Torgeson. Mr. Torgeson states that he will be glad to have an investigation of his management of failed banks. He cites several instances where banks he has handled have paid out considerably more than that, as follows Irrigators, Scottsbluff, 57 per cent; American State, Scottsbluff, 58.25; American bank, Mitchell, 50; Bank Bayard, Bayard, 50; Nebraska State, Bridgeport, 55.9; Mitchell State, Mitchell, 35.5; Lyman, 17; State Bank. of Minatare, Minatare, Bridgeport bank, Bridgeport, 16 per cent.

8. April 16, 1932 Lincoln Journal Star Lincoln, NE

Article Text

COURTS ONLY HAVE POWER TO SELECT BANKS' RECEIVERS Legislature Held to Have Overstepped Powers in Enacting a Law. Declaring that it is the imperative duty of the judicial department of government to protect its jurisdiction at the boundaries of power fixed by the constitution and that the naming of state bank receivers is a judicial function which cannot be exercised or controlled by the governor or legislature, the supreme court Saturday upheld the action of District Judge Carter at Morrill in refusing to name E. H. Luikart, secretary of trade and commerce, as receiver for the Mitchell State bank, Irrigators State bank of Bridgeport, Lyman State bank, American State bank of Scottsbluff, Nebraska State bank of Bridgeport, State Bank of Minatare, and Bank of Bayard. Justices Paine and Day dissented. The court, in an opinion written by Justice Rose, says that a legislative act providing that the secretary of trade and commerce shall be the sole receiver of all insolvent state banks amounts to no more than a judicial proceeding, properly pending in a court of equity for the liquidation of a bank, than a legislative recommendation to the judiciary to appoint him, as otherwise the enactment would be an unconstitutional encroachment on judicial power. Judge Carter Named Torgeson. Judge Carter was the only district judge who refused to name Luikart, when the latter succeeded Bliss. He appointed A. E. Torgeson, who had been assistant receiver under Bliss, on the ground that having had actual charge of the liquidation of these seven banks he was in a better position to serve all interests than Luikart, who must necessarily name some one to handle their liquidation. The court points out in its decision that the statutes nowhere provide for the liquidation of state banks without invoking the judicial power of the state, and the legislature has never granted to any executive officer, administrative board, department or tribunal (Continued on Page 8.)

9. April 18, 1932 Scottsbluff Republican Scottsbluff, NE

Article Text

COURTS ALONE HAVE POWER TO SELECT RECEIVER OF BANKS STATE SUPREME COURT UPHOLDS ACTION OF DISTRICT JUDGE E. F. CARTER AT GERING Declaring that the imperative duty of the Judicial department of government to protect its jurisdiction at the boundaries of power fixed by the constitution and that the naming of state bank receivers is a judicial function which cannot be exercised or controlled by the governor or legislature, the supreme court Saturday upheld the action of District Judge Carter at Morrill ingrefusing to name E. H. Luikart, secretary of trade and commerce, as receiver for the Mitchell State bank, Irrigations State, American State banks at Scottsbluff and other banks under his jurisdiction. The court, in a written opinion by Justice Rose, says that the legislature has provided that the secretary of trade and commerce shall be the sole receiver of all insolvent state banks amounts to no more than a judicial proceeding, properly pending in & court of equity for the liquidation of a bank. than a legislative recommen. dation of a. recommendation to the judiciary to appoint him, as otherwise the enactment would be an unconstitutional enroachment on judicial power. Judge Carter was the only district Indge who refused to name Luikart when the Intter succeeded Bliss. He appointed A. E. Torgeson, who had been assistant receiver under Bliss. the ground that having had actual charge of the liquidation of these banks he was in better position to serve all interests than Luikart, who must necessarily name some one to handle their liquidation. In its recent decision, the court points out that the statutes nowhere provide for the Hquidation of state banks without invoking the judicial power of the state, and the legislature has never granted to any executive officer, administrative board, department or tribunal authority to wind up arfairs of banks without invoking the aid of the court. The law is that the secretary of trade and commerce shall report a bank's insolvency to the attorney general, who shall ask the courts to name a receiver, and then proceeds to tell the court that it shall name the secretary as receiver.

10. April 21, 1932 Bridgeport News-Blade Bridgeport, NE

Article Text

SUPREME Says Judiciary Has Sole To Name Receivers For Insolvent Banks The Supreme Court of Nebrasdecision down last Saturday, upheld the position District Judge Carter when he appointed Torgeson of receiver for seven failed banks in his judicial district. The attracted statewide interest since rested squarely the proposition whether or not the governor could dictate to the courts as the appointing of receivers. The Supreme Court held that receiver is an officer the court and any attempt of the executive the legislative name the officers of the court and tional and upon the authority of the judiciary. Judge Carter is the only district judge in the state who pointed receiver other than the one named by the governor. He refused to appoint H. Lulkart receiver unless Governor Bryan promised to refrain from interfering with the receivership. dispatch from Lincoln on the states: Declaring that it is the impera. duty of the department the tect its jurisdiction at the boundaries power fixed by the and that the naming state bank receivers judicial which cannot be exercisor controlled by the governer legislature, supreme court Saturday upheld action of District Judge Carter in refusing name secretary trade and commerce. receivfor the Mitchell State State Bank Bridgeport, Lyman State Bank. American State Bank Scottsbluff, Nebraska State Bank of Minatare the Bank Bayard. Justices Payne and Day dissented. The court, in an opinion written by Justice Rose, says that legislative act providing that the secretary trade and shall the sole receiver all solvent state banks amounts no more than Legislative to the judielary appoint him, otherwise the enaetment would be an unconstitutional encroachment judicial power. Judge Carter the only district judge refused to appoint Luikart, when latter aucceeded Bliss. He appointed Torgeson, who has been sistant receiver under Bliss, the ground that having had tual charge of the liquidation of seven banks he than must necessarily someone to handle their liquidation.

11. April 21, 1932 The Morrill Mail Morrill, NE

Article Text

POWER TO SELECT BANKS' RECEIVERS Declaring that the imperative duty of the judicial department of government to protect its jurisdiction at the boundaries of power fixed by the constitution and that the naming of state bank receivers judicial function which cannot be exercised or controlled by the governor or legislature, the supreme court Saturday upheld the action of District Judge Carter at Gering in refusing to name E. H. Luikart, secretary of trade and commerce, as receiver for the Mitchell State bank, Irrigators State bank of Bridgeport, Lyman State bank, American State bank of Scottsbluff, Nebraska State bank of Bridgeport, State Bank of Minatare, and Bank of Bayard, says the Nebraska State Journal. The court, in an opinion written by Justice Rose, says that legislative act providing that the secretary of trade and commerce shall be the sole receiver of all insolvent state banks amounts to more than judicial proceedings, properly pending in court of equity for the liquidation of bank, than legislative recommendation to the judiciary to appoint him, as otherwise the enactment would be an unconstitutional encroachment on judicial power. Judge Carter was the only district judge who refused to name Luikart, when the latter succeeded Bliss. He appointed E. Torgeson, who had been assistant receiver under Bliss, on the ground that having had actual charge of the liquidation of banks he was in better position to serve all interests than Luikart, who must necessarily name some to handle their liquidation. The court points out in its decision that the statutes nowhere provide for the liquidation of state banks without invoking of the state, and the legislature has never granted to any executive officer, administrative board, department or tribunal authority to wind up affairs of banks without invoking the aid of the court. The law is that the secretary of trade and commerce shall report bank's insolvency to the attorney general, who shall ask the courts to name receiver, and then proceeds to tell the court that it shall name the secretary as receiver. Use of the courts for purposes of liquidation has been the universal practice both before and after the law under discussion was passed. The law-makthemselves provided for judicial liquidation. The court says that as the governnames the secretary and may retire him and name another, the effect of the law is to make it mandatory the courts to name whoever he names, and to modify the judgment of the court. Neither the executive nor the legislative pending cause, can change or modify judicial orders or lawfully require the court to do judicial order pending litigation does not hange with political fortunes or legslative executive appointments. The framers of the constitutions, state and federal, have adopted the plan of executive, legislative and judicial departments independent of each other. has been regarded by statesmen and philosophers as an outstanding advancement in the sciof government. Thruout the judicial history of the present systhe courts have scrupulously respected the prerogatives the other departments and extended the comity due governmental divisions of equal rank, but courtesy does not extend to the surrendering of judicial power.