gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
d5e56202fd8f5f6f
Response Measures
None
Description
President disappeared and prosecutions/embezzlement allegations precipitated the failure and state takeover.
Events (2)
1.May 1, 1927*Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank president Thomas Murray disappeared; alleged embezzlement and interlocking bad loans with Dunbar Grain Company led to bank failure
Newspaper Excerpt
the spectacular failure the Dunbar State Bank
Source
newspapers
2.April 23, 1928Receivership
Newspaper Excerpt
E. J. Dempster ... has been appointed receiver for the Dunbar State bank. Judge Begley made the appointment on motion of Attorney General Spillman.
Source
newspapers
Newspaper Articles (13)
1.May 15, 1927Nebraska City News PressNebraska City, NE
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LITIGATION IN FAILURES
State Bank Receiver gins Action Against Grain Company
The first of what is predicted to be long list civil actions arising from the spectacular failure the Dunbar State Bank and the financial troubles of the Dunbar Grain Company, interlocking concerns insofar as the bank's failure is concerned, was filed in district court Saturday Receiver for the Dunbar State Bank whose president. Thomas Murray, is a much-sought fugitive from justice in dozen states and two or three foreign countries. brought suit Saturday against the Grain Company on three counts. The Bank alleges that the Grain Company, whose manager Burton Gorton faces prosecution on charges. embezzlement amounting to more than had an overdraft of $1,695.36 at the time of the bank's closing, and owes two notes, past due, one for $4,000 and another for $2,500. Stockholders of the grain company are substantial farmers living in and near Dunbar but the summons in the case is directed only against the Dunbar Grain Company.
2.May 17, 1927Beatrice Daily SunBeatrice, NE
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DUNBAR BANK RECEIVERS FILE THREE
Nebraska City, Nebr., May for the Dunbar States bank filed three suits district court here against the bank the Dunbar Grain company. Thomas Murray, former president of both concerns. fugitive from justice. Burton Gorton,. his held district court charge of embezzling His trial for September 19. One the claim that there an overdraft of against the grain concern held by the bank. The others seek to recover held by the bank, one for and the other for 500.
3.May 17, 1927Star-HeraldScottsbluff, NE
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Dunbar Bank Receiver Sues to Recover Upon Company's Overdraft
Nebraska City, May 16 (P)-Receivers for the Dunbar State bank filed three suits in district court here against the bank and the Dunbar Grain company Thomas Murray, former president of both concerns, is fugitive from justice. Burton Gorton, his son-in-law. is held in district court on a charge of embezzling $50,000 His trial is set for Sept. 19. One of the suits claim that there is an overdraft of $1,695 against the grain concern held by the bank. The others seek to recover on notes held by the bank. one for $4,000 and the other for $2,500.
Greeensboro, N. C.-Rum runners in North Carolina have been using preaechers licenses on their cars. The licenses give them the right of way in traffic.
Wm. Penn-5 cents Good Cigar
4.September 21, 1927Lincoln Journal StarLincoln, NE
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BY
Witnesses in Trial of Dunbar Banker Testify He Speculated Thru Nebraska City Firm. NEBRASKA CITY. Neb., Sept. which used when he was speculating the board of trade were Identified by witnesses this morning in the trial of Burton Gorton. Dunbar. who facing charges of bezzling more than connection with the Dunbar State defunct. Checks the Duff Grain com pany of Nebraska City, Gorton's were identified witnesses teath fied that had specuated on the board trade thru the NeCity grain firm. Concerning the reported confession Gorton the Dunbar Grain board of directors, which of the board, told the court of he and the defendant had some time the Borcherding said he asked Gorton. grain company broke The bank busted and Tom Murray missing president the Dunbar State bank) gone. We all bad Tom have been unlucky. gone, going "Gorton he wanted to make good,' Borcherding continued. said he was willing turn and willing devote the rest of life straightening out The state to complete its case early Wednesday afternoon. The defense not pected to take up much time and thought the jury would given case for deliberation Wednesday night.
5.April 23, 1928Lincoln Journal StarLincoln, NE
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DUNBAR BANK RECEIVER
E. J. Dempster to Handle State Bank With J. M. Eiser, Commission Agent. NEBRASKA CITY, April 23-E. J. Dempster, member of the state bank deposit guarantee fund commission, has been appointed receiver for the Dunbar State bank. Judge Begley made the appointment on motion of Attorney General Spillman. J. M. Eiser, who has been in charge since the bank closed year ago, will continue in charge until the institution is finally closed. The Dunbar bank was taken over by the state when its president. Thomas Murray, disappeared. Hopes that it would be reorganized are ended by the appointment of receiver. Deposits are no longer accepted and no business has been done for several weeks. The guar anty fund commission recently declared a 22 percent dividend to depositors. Efforts are now being concentrated the as sets of the bank so as to how much the guaranty fund will contribute.
6.April 23, 1928Lincoln Journal StarLincoln, NE
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Article Text
DUNBAR BANK RECEIVER
E. J. Dempster to Handle State Bank With J. M. Eiser, Commission Agent.
NEBRASKA CITY, April 23-E. J. Dempster. member of the state bank deposit guarantee fund commission, has been appointed receiver for the Dunbar State bank. Judge Begley made the appoint ment on motion of Attorney General Spillman. J. M. Eiser, who has been in charge since the bank closed a year ago, will continue in charge until the institution is finally closed. The Dunbar bank was taken over by the state when its president. Thomas J. Murray disappeared Hopes that it would be reorganised are ended by the appointment of receiver. Deposits are no longer accepted and no business has been done for several weeks. The guaranty fund commission recently declared 22 percent dividend to depositors. Efforts are now being concentrated on-collecting the as sets of the bank so as to determine how much the guaranty fund will contribute.
7.April 26, 1928Nebraska Daily News-PressNebraska City, NE
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Files Big Bond As Bank Receiver
E. J. Dempster of Geneva, Neb. who was appointed receiver for the Dunbar State Bank last Saturday by District Judge James T Begley, Wednesday filed his bond of $50.000 with John C. Miller. clerk of the District Court. Petition to have a receiver named for the bank was filed Saturday by the State of Nebraska through Attorney General O. S. Spillman. Judge Begley immediately appointed Dempster, who is member of the Guaranty Fund Commission. The law provides that the member of the commission in whose district the defunct bank is located shall be appointed receiver.
8.April 26, 1928Nebraska Daily News-PressNebraska City, NE
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Omaha Bank Sues Dunbar Institution
Trial of the suit of the United States National Bank of Omaha against the Dunbar State Bank to collect $5,000 on a note which was sold to the Omaha institution by Thomas Murray, former head of the Dunbar bank. was started Wednesday before District Judge James T. Begley. The Dunbar bank, Murray and Henry Kasbohm were named defendants in the original petition Kasbohm. however, was dismissed as one of the defendants by Judge Begley. He alleged that if his signature were on the note in question. it was forgery. The suit is one of a number that have been instituted since the Dunbar State Bank was taken over by the Guaranty Fund Commission more than year ago. The case was continued to May 8 to premit introduction of additional bank records.
9.August 26, 1928Nebraska Daily News-PressNebraska City, NE
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MURRAY ASKS he informs the Although court that there is no cash in his hands available for the immediate payment of any claims which be allowmay at this time, Dempster. of the Guaranty Fund Commission, and receiver for the deDunbar State Bank, says he funct knows of "no defense" against total of 212 claims of creditors. This information contained in Dempster's report filed in District Court late Saturday, signed by Dempster and sworn to before M. L. Ralston, notary public.
10.September 2, 1928Nebraska Daily News-PressNebraska City, NE
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BEGLEY CLAIMS
Contested Cases Will be Heard at Later Session total of 212 claims of creditors of the defunct Dunbar State Bank was allowed Saturday in District Court by Judge James Begley. These were the claims listed "valid" in the report filed in District Court week ago by Dempster of the Guaranty Fund Commission, and receiver for the bank. Judge Begley entered judgment in favor of the 212 claimants against the Guaranty Fund Commission In the matter of numerous other claims which Receiver Dempster says subject to valid defense, Judge Begley ordered the claimants eto fil petitions in intervention within 20 days, and gave the ceiver until October to answer. Hearing Set for Oct. 30
Hearing on the contested claims was set for 10 October 30. Included among these claims is the of Otoe County. Thomas Murray, former president of the closed bank, who claims total of $15,466.34 as balance due upon checking accounts, has assigned to another party who will seek payment in court contest.
Saturday's hearing on the bank receiver's report attracted number of persons to the court room. Attorneys were conspicuous, nine of them interested in the case.
Dempster Present
Among others present was E. Dempster of Geneva, Neb., receiver for the bank and member of the Guaranty Fund Commission Asked by representative the creditors of the closed bank would receive 100 cents on the lar. Mr. Dempster stated that he could not make any prediction. "Payment will be according to liquidation of assets of the bank," was one comment he made. Another comment was that "the amount of recovery of depositors will depend on the future of the (Turn to Page 2; Col. Please)
11.December 12, 1928Beatrice Daily SunBeatrice, NE
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Banker Taken From Prison To Testify
Nebraska City, Nebr., Dec. 12 Murray convicted president of the Dunbar State bank, was brought here LILA LEE from state prison yesterday BENNETT to take the witness stand in his case against the state guaranty commission for $15,000 which he claims was on deposit in the bank at the time was taken over by the commission.
Murray tetified the money was held in trust by him to protect Henry Kashohm, the man whose testimony had largely to do with his conviction on forgery charges was for the forgery of the Kasbohm note that Murray was found guilty. This note was sold to the Omaha National bank by Murray, who testified the money placed to his credit in the Dunbar State bank as trustee: Murray is being used as witness in many of the contested claims of bank depositors and will probably remain here during the three day session of court.
12.December 2, 1929Kearney HubKearney, NE
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OFFICIAL AWAITS HEARING
Westbrook Is Arraigned In the County Court.
City, Neb., Dec. not guilty the charge deposit when he bank was insolvent. HenWestbrook, vice president of the failed Dunbar State bank, arraigned in county court Saturday and today awaited preliminary hearing Thursday. Friends furnished the $2,000 ball for him after County Attorney Heinke had objected the suggestion that Westbrook permitted to home on his own recognizance. William H. Pitzer appeared Westbrook's attorney at the The banker's prosecution comes more than years after the closing the Dunbar bank. Thomas president, and Burton Gordon, Murray's are now serving in the state penitentiary charges growing out of the bank crash.
13.November 17, 1933Nebraska Daily News-PressNebraska City, NE
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Judge Eberly, who wrote the opinion in the case, held that the omission of Rambat's name in the original action against the stockholders was not excused by the facts shows in evidence. Since his name was on the stock books as a stockholder he was solvent, and was a resident of the state.
The case was one in which E. J. Dempster, then receiver for the failed Dunbar State bank, sued William Ashton and approximately 85 other stockholders of the Dunbar Grain company in Otoe County District court.
The Grain company, which went into bankruptcy after the Dunbar bank failed, had an obligation to the bank of $11,698.19 of which $5,384.67 was paid as a bankruptcy dividend. Dempster sued to collect stockholders liability on the grounds he alleged in the suit, the grain company neglected to publish its annual statement of indebtedness, making the stockholders liable for the company's debts.
Thomas Murray, president of the Dunbar State bank, was also treasurer of the grain company. Because of this, a portion of the defense declared, the bank waived the
SEE PAGE 6; NUMBER 2
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
