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'Peu791.1-e-f, A•\?; Re(0.13 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis e •/%1 1411111141111% ivoi o https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - AMPEIXTS ED REPORTS SIXARDTNG DEPOSIT https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PAMEHLETS AND REPORTS REGARDING DEPOSIT GUARANTY IN NEBRASKA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nh.13RASKA In addition to material found in Nebraska binders part I and II and Pamphlets and reports regarding deposit guaranty in Nebraska", there are the following folders pertaining to deposit guaranty in Nebraska: Number and deposits of failed banks Carbon copy of Nebraska report on deposit insurance 1955 Nebraska Supreme Court Journal 1932-1931 Newspaper clippings Briefs - Hoskins State Bank BrIefs - Security State Bank Briefs - Abie State Bank Briefs - State Bank of Ravemona Briefs - Hubbel Bank Briefs - Irrigators' Bank; State Bank of Minatare Nebraska laws and report of 1930 PAMPELETS AND REPORTS REGARDING DEPOSIT GUARANTY IN NEBRASKA el- ,y1 ,-7v-,-,7 it/-44 2G-4-t el--•/-a- --...-e-s._, -: /tee..../a-0---==,--e--1- "e-e...4-0, '--.6 , --( L.f4.., y .2e.L.6,,.....k... , .....r% ..—, e......e-e-, .., 7 ..—e,.._x_..,,,,, , , J - --id--/- 2,/ 4 -, , /,,e_ -4_,ck l'Ae“e c_;,;_ 2/.2...6,t (.,, & 2,e , -/ 'Xier ,..c .4.) •.,- --7•:__ ,.:•-, i S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0-c .17-1 A-C , L--"-sik--.-c-%--z--,---7. '- -6./.41 / , et rt 4ei, '--4) „, ,,,-;.- ;,-„ . ,,..iz:-,-i_ • - ,4.-e-t_...ier-e_...-..-( / li""r"te-n.,_ Le. - NEBRASKA is a Remarkable State And tells A Story no other State can Tell https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nebraska's Depositors' Guaranty Fund PROTECTS $288,000,000 of funds deposited by 550,000 people in the 896 Nebraska State Banks AND EVERY DOLLAR IS SAFE As Compared With Other States NEBRASKA Stands FIRST in BANKING Second in Hogs • Third in Wheat Third in Corn Third in Cattle https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nebraska Is Going Ahead Nebraska is truly a remarkable state in many ways and we who live within her borders can be justly proud of the name Nebraska. Nebraska raises a surplus of four out of five of the world's basic needs—corn, wheat, cattle, and hogs. It produces in new wealth each year: Farm products, $500,000,000; Products of industry, $800,000,000. The wealth of Nebraska in men and materials is covered by insurance; life, fire and casualty, to the amount of $5,000,000,000 for which the people pay in annual premiums more than $45,000,000. Many pages could be written telling the story of Nebraska's wealth, its products and its proress, which would be a record that few states ould equal. Behind this production and progress is a reason. It is an asset of Nebraska which has more real value than any other asset it possesses. It is Nebraska's Guaranty Law. Because we have it and have had it for years, perhaps it has become commonplace and people do not realize its value and give to it the credit it deserves. For fifteen years no depositor in a state bank in Nebraska has lost one cent through the failure of the bank and during those years we have passed through one of the greatest financial depressions ever known. Nebraska's Guaranty Law stood the shock of time and deflation —when its enemies said it would fail—and today is the foundation of our economical and financial structure. It has proven its soundness, thereby becoming a boon to every man, woman and child in the state. Its benefits are not shared by a few, but enjoyed by everyone, either directly or indirectly. Its success has directed the eyes of the entire nation on Nebraska and many states are now W https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis contemplating the passage of similar laws. No doubt, some day in the near future, the demand for guaranty of bank deposits will be a nation-wide movement. Depositors are beginning to feel they have a right to demand absolute protection for their funds and the business world is beginning to recognize the value of such protection in its effect upon business. The banking business is not a one-sided proposition but one wherein both parties to a deposit contract are entitled to consideration. History is being made in Nebraska. It is establishing a precedent in banking which others will follow. Inquiries are so numerous, both from. Nebraska and outside states, which indicate that people do not understand what the Guaranty. Fund is, whom it protects, who pays for the protection and what it has accomplished, that it seems timely and proper to set forth someAk of these facts. With the hope that it may bfflr of educational value this pamphlet has been prepared, telling only of Nebraska's state banking system. It is a story that cannot be told by any other state. It is a record unequalled in the entire world. WHAT IS NEBRASKA'S GUARANTY LAW? People always have and always will suffer losses through the failure of banks unless some adequate form of government protection is given to them. In Nebraska, as a result of a demand of the people for absolute protection of their funds, the State Legislature in 1909 passed a law creating a state fund known as the Depositors' Guaranty Fund. They provided that upon the failure of any state bank all the depositors would be paid immediately, one hundred cents on the dollar. This fund is created through assessments on the solvent banks of the state in proportion https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 to their deposits. The maximum assessment which may be levied during any calendar year is six-tenths of one per cent, of the bank's average daily deposits. If the full assessment was levied it would raise approximately $1,725,000.00 per year for the payment of depositors. To prevent any misuse of so large a fund, the money is left on deposit with each individual bank until it is needed to pay depositors. It is set aside in an account subject to the order of the Secretary of the Department of Trade and Commerce who may draw upon it when necessary and so ordered by the proper court. Before the law became effective its constitutionality was tested and finally decided by the highest court in the nation: the United States Supreme Court. In sustaining the law, the court said: "When the legislature (of Nebraska) declares in its banking laws that incorporation, inspection and co-operation for the protection of deposits are necessary safe-guards, this court certainly cannot say that it is wrong. The power to compel beforehand, co-operation and thus, it is believed, to make a failure unlikely and a general panic almost impossible, must be recognized if government is to do its proper work." Like a giant insurance company the state banks are associated under the laws of Nebraska for the protection of the deposits in the state banks. Men provide for the insurance that goes to their dependents after death by paying for it. The insurance of the deposits placed in the state banks in Nebraska is paid for by the bankers. This insurance plan not only protects the deposits in the bank; it protects the sleep of 550,000 depositors and their peace of mind. It protects the business that is dependent upon these deposits. It protects the farmer whose funds on deposit are to be used for the clear- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 _a ing of the mortgage or the stocking of the feed lot. It protects the worker whose funds in the bank are being saved against the day when he and his wife and little ones can move into the new home on the hillside. A giant insurance plan, filled with the spirit of confidence and trust because the money in the bank is safe. WHAT DOES IT PROTECT? The law applies to, and protects, all classes of deposits, whether it be checking accounts, demand certificates, time certificates, savings accounts, or cashiers' checks. It likewise protects holders of exchange. The law reads: "The claims of depositors for deposits not otherwise secured and claims of holders of exchange shall have priority over all other claims except federal, state, county and municipal taxes * * * and upon proof thereof, they shall be paid immediately • * * Our Supreme Court has held that "in order to create a deposit which will be protected by the Guaranty Law, it is necessary that money or its equivalent shall in intention and effect be placed in or at the command of the bank under circumstances which do not transgress the specific limitations of the Bank Guaranty Fund Law." A holder of exchange is defined by the Court as a person who holds a draft drawn by one bank upon another bank. Banks may pay as high as four per cent. interest on time deposits but any payment in excess of this rate not only removes the deposit from the protection of the Guaranty Fund but makes it a felony both on the part of the bank who pays it and the depositor who accepts it. The rendering of any service either directly or indirectly or the giving of any consideration of value as an inducement, in addition to the legal rate of interest, for making or retaining a deposit in the bank, carries with it a like 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • penalty. Every depositor of time money should be careful that this section of the law is not violated. The protection of the Guaranty Fund applies in the case of all failures no matter what may be the cause, whether it be depreciation in the value of the bank's securities, mismanagement or even criminalities on the part of the banker, it makes no difference. If the bank cannot pay its deposits, the Guaranty Fund will. HAVE OTHER STATES SIMILAR LAWS? Eight states, namely: Mississippi, Texas, Oklahoma, Kansas, South Dakota, North Dakota, Washington and Nebraska, have passed guaranty laws during the past twenty-five years. In most of these states, the law has Ag&been more or less of a failure, and at this time, stands alone as having fulfilled all the promises of the law. Investigation tends to show that inadequate laws, poor management and politics are the three principal causes responsible for the failure of the laws in the other states. In 1922, Nebraska bankers, benefiting by their own experience as well as that of other states, could easily foresee that unless the causes which proved to be the undoing of the law in other states were removed from Nebraska's law, it too, would be a failure. In part, the bankers have been successful in removing these objectionable features from our law and placing it more nearly on a business-like basis through the creation of the Guarantee Fund Commission. wNebraska https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7 WHAT IS THE GUARANTEE FUND COMMISSION? As a result of the demand from the bankers for a voice in the management of the failed banks and the salvage of the assets, the legislature of 1923 passed the Guarantee Fund Commission law, whereby a Commission was created consisting of seven members and the Secretary of the Department of Trade and Commerce, who is the Chairman and a member ex officio. To be eligible for membership on the Commission, one must have been an executive officer of a state bank in Nebraska for at least five years preceding his appointment. The state is divided into seven groups, a member chosen by the bankers representing each group. Each member is appointed for a term of three years and receives a salary of $10.00 per day and actual expenses for the time spent in the Ak work. Each member must give a bond in theW amount of $25,000. While the Commission has practically sole charge of the failed banks, the law specifically provides that it shall have no jurisdiction over going banks except in an advisory capacity. Solvent banks are under the jurisdiction of the Department of Trade and Commerce, but upon the closing of any bank, it must be turned over to the Guarantee Fund Commission for the purpose of restoring solvency or liquidation. In the Commission's office at the State House, Lincoln, are employed twenty-two people and to carry on the necessary work over the state requires the additional employment of approximately one hundred twenty-five people. The expense of the organization is borne by the banks, except for an appropriation of $15,000 per year made by the legislature. Although a department of state, it will be readily seen that the cost of maintaining it is a very light burden on the state itself. https://fraser.stlouisfed.org 1. Federal Reserve Bank of St. Louis 8 • WHY ARE INSOLVENT BANKS SOMETIMES OPERATED AS GOING CONCERNS? In asking for 1110 passage of the law, the bankers anticipated that large savings could be made for the Guaranty Fund and thus for themselves through the operation of an insolvent bank as a going concern, if the management of that bank was placed in competent hands. So under this law, when a bank is closed by the Department of Trade and Commerce and turned to the Guarantee Fund Commission, they have the option of either continuing the bank as a going concern without regard to its solvency or liquidating its affairs through a receiver to be named and appointed by the Commission. Experience has proven that large savings ak can be made in operating the bank as a going W concern for a time at least. The usual practice is to place a Special Agent of the Commission, who is under bond, in charge of the bank and continue its business as before its failure. The ordinary business of the bank is carried on without interruption so that the business and social affairs of the community are not disturbed. It has been found that a far greater per cent. of the assets can be collected in a going bank than in a receivership. It is the usual practice to operate a bank over a crop season as only by so doing can the best results be obtained. During that time the greatest possible liquidation is secured, either by collecting the notes or by. securing collateral, making future collection possible. Then the bank is re-organized, or sold to another bank, by the transferring of the deposits and the sale of the good assets. The difference is supplied by cash from the Guaranty Fund. In this way a bonus is usually secured for the good-will of the business. The • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9 AIM transaction is handled in such a manner that the business is not interrupted for even a single day. To enable the Commission to operate a bank, the law created a fund known as the Bankers Conservation Fund which is nothing more nor less than money advanced by the state banks in proportion to their deposits as a loan which must be repaid when the bank is finally closed or re-organized. The benefits derived from the operating of an insolvent bank as a going concern have been of unestimable value to the Guaranty Fund and to the depositors and the community as well. Not only does the immediate locality benefit, but the state as a whole. People know that the depositors' money will not be tied up and under this plan of management confidence has been established in the entire state so that even rumors of a bank being insolvent or likely* to be closed, causes no fear among the depositors. Bank runs are unknown. HOW ARE RECEIVERSHIPS HANDLED? Upon the re-organization or sale of an insolvent bank which has been operated as a going concern, or the closing of a bank which does not have sufficient business to justify its continuance, the remaining assets are placed in receivership. The Commission has adopted the plan of naming the Commissioner, in whose Group the bank is situated, as receiver. The handling of the receivership and the collection of the assets is carried on principally by a Special Agent who is placed in eharge. The best possible salvage is then obtained as quickly as possible, the proceeds of which are returned to the Guaranty Fund to reimburse it for the money advanced in the payment of depositors. As soon as the assets are exhausted an attempt is made to collect the stockholders' ha- https://fraser.stlouisfed.org 1. Federal Reserve Bank of St. Louis 10 • bility. Under our laws a stockholder of a bank is liable to creditors for an amount equal to the amount of stock held by him. Unfortunately, the Constitution of the state will not permit the Commission to collect this stockholders' liability until after all assets are exhausted which usually takes a considerable length of time inasmuch as the assets coming into the hands of the receiver are frozen and long drawn out affairs. This provision of the Constitution, without doubt, increases to a very large extent the losses to be borne by the Guaranty Fund. In the case of a national bank failure, the Comptroller has authority to levy this one hundred per cent. assessment immediately and collect it. It should be the same under our state law. The compromising of any indebtedness or the sale of any real estate or personal property A& must not only be approved by the receiver and Commission but by the Judge of the District Court in whose district the receivership is located. A full and complete report of each receivership is made by the Commission to the Court every three months covering all transactions in detail. These are placed in the files of the Clerk of the District Court where they may be examined by anyone interested. Ipthe HAS NEBRASKA'S LAW BEEN TESTED? It surely has. Having been in operation since 1911, or more than 15 years, during which time we have passed through one of the worst periods of deflation ever known, it surely cannot be said but what the law has been thoroughly tried out. During that time 155 banks have been closed by the state. Practically all of these have been during the past five years. Of this number 114 have been placed in receivership and deposits of over $28,000,000.00 paid in full. The Commission is now operat- • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 ing 37 banks as going concerns and in four banks receivers have been appointed but sufficient time has not elapsed for the court to pass on claims. In making this payment of more than $28,000,000.00 no depositor has ever lost one cent, nor has he had to wait for his money. As soon as his claim was approved the money was available to pay it. Of this $28,000,000 paid to depositors, the state banks have contributed about $11,500,000, the balance being secured from the assets. During the past twelve months the Commission has paid more than $7,500,000 of deposits or an average of about $25,000 per day. There remains in the hands of the Commission more than $10,000,000 of assets belonging to the banks whose deposits have been paid in full. The proceeds from the collection of these assets will be returned to the Guaranty Fund and thus indirectly to the banks, to reimburse them for the amounts already advanced. While the value of these assets is doubtful, yet it is certain that a considerable sum will be realized. Another factor tending to show that the Guaranty Fund is able to take care of its losses is that the state authorities have closed the banks, very few having closed voluntarily, while in other states it would seem to be the practice to allow banks to continue until they close for the want of cash ta carry on their business. For this reason we feel that the banking situation is more nearly cleaned up in Nebraska than in some other states. Nebraska has not experienced as large a percentage of bank failures, by any means, as surrounding states, and without doubt the reason for this is Nebraska's Guaranty Law and the confidence the people have in it. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • WHAT OF THE FUTURE? Nebraska's Guaranty Law has been a success and has paid every depositor in every failed state bank one hundred cents on the dollar. Every obligation of the law has been fulfilled over a period of 15 years. All losses now on hand or outstanding indebtedness will be paid in full. The Guaranty Law has become a fixture in Nebraska. It has proven its worth many times over its cost. The state as a whole has benefited through increased prosperity due to the confidence of the people in banks. Money has not been withdrawn from banks and placed in hiding as in other states. Nebraska did not, and is not now, suffering the common depression as are surrounding states. A banker demands security for the money he loans to his customers, so is it unfair for the customer to demand security from the bank when he deposits his money? Surely not. One has as much right to expect the return of his money as does the other. go ; Only through the sacrifice and courage of the state bankers of Nebraska has this wonderful record been made. Bankers have gone without dividends or profits in order that the law might be fulfilled. Without this,"a story that no other state can tell" could not be told. It would not be possible to continue indefinitely under such a state of affairs and while we can now say that we.have survived this period of deflation, yet at the same time we must realize that another is coming. The best way to pay losses is to prevent them and the best way to prevent them is through the supervision and examination of going banks. The bankers in 1923 told the legislature that if the handling of failed banks was placed on a business basis, in the hands of competent men and by removing it from political control, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13 large savings could be made. The results now show their.prediction to have come true. Under the old system, receivers collected but twenty-nine per cent, of their assets, whereas under the Commission's management sixty per cent. of the assets are now collected. Expense of liquidation has been reduced more than twothirds. Bankers now feel that additional changes should be made in our law, especially as far as supervision and examination of going banks are concerned. They uphold the Guaranty Law and in a recent meeting at Omaha, delegates representing the majority of the banks in the state, passed the following resolution: "We re-affirm out strict adherence to the Guaranty Fund law under which no depositor in any Nebraska bank has suffered loss. We are opposed to any change in the law which will in any wise tend to obstruct, hinder ora delay any depositor in any Nebraska state bank' in the collection of his deposit." They do, however, want to remove as far as possible the Department of Banking from political influence and control. They ask that the examiners be chosen solely because of merit, training and fitness. They also recommend more adequate salary and longer tenure of office for those responsible for the supervision and examination of banks. The interest of the state bankers of Nebraska is the welfare of the people. This has been demonstrated and proven by the courage they have shown and the sacrifice they have made during the past few years. It is only through their efforts that the Guaranty Fund was saved in 1923 and now that they are asking for reasonable changes in the law and only what is surely due them, it would seem that the legislature and the people of Nebraska should co-operate with them in making Nebraska's Guaranty Fund a greater success, not by any lessening of the protection given to the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14 depositors but by lightening the cost to the bankers. Nebraska stands alone as a state where bank depositors sleep well at night. It is a story no other state can tell. VAN E. PETERSON, Secretary, Guarantee Fund Commission. Lincoln, Nebraska, September 1, 1926. • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13 Removal Notice 7KHLWHPLGHQWLILHGEHORZKDVEHHQUHPRYHGLQDFFRUGDQFHZLWK)5$6(5 VSROLF\RQKDQGOLQJ VHQVLWLYHLQIRUPDWLRQLQGLJLWL]DWLRQSURMHFWVGXHWR copyright protections. ŝƚĂƚŝŽŶ/ŶĨŽƌŵĂƚŝŽŶ Document type: Pamphlet Pages Removed: Author(s): Watson, B. Frank Title: A History of the Nebraska Bank Guaranty Law Date: Written and Submitted to Federal Reserve Board on March 21, 1933 Journal: Volume: URL: Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org NEBRASKA HISTORY AND POLITICAL SCIENCE SERIES ADDISON E. SHELDON, Editor ,,N,K DEPOSIT GUARANTY IN NEBRASKA AN HISTORICAL AND CRITICAL STUDY BY Z. CLARK DICKINSON (Graduate student, University of Nebraska, 1913-14; Scholar in Economics, Harvard University, 1914-15.) PUBLISHED BY Nebraska History and Political Science Seminars, University of Nebraska and Nebraska Legislative Reference Bureau https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BULLETIN No. 6 NEBRASKA LEGISLATIVE REFERENCE BUREAU NOVEMBER 1, 1914 NEBRASKA HISTORY AND POLITICAL SCIENCE SERIES ADDISON E. SHELDON, Editor )11ANK DEPOSIT GUARANTY IN NEBRASKA AN HISTORICAL AND CRITICAL STUDY BY Z. CLARK DICKINSON (Graduate student, University of Nebraska, 1913-14; Scholar in Economics, Harvard University, 1914-15.) PUBLISHED BY Nebraska History and Political Science Seminars, University of Nebraska and Nebraska Legislative Reference Bureau https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BULLETIN No. 6 NEBRASKA LEGISLATIVE REFERENCE BUREAU NOVEMBER 1, 1914 EDITOR'S PREFACE 111 "Know Nebraska First" is the motto of this series of publications. The true stories of one's own state are the delight and fascination of childhood. The history and ethnology of one's own state is instruction and inspiration to both student and busy man of affairs. The economic and scientific lessons drawn from the experience of one's own state should be the first knowledge of the legislator, the educator, the farmer, the artisan and the business manager. Nebraska is fortunate in having a history filled with interesting and useful material for research. Her aboriginal life, her financial and social experiments, the conflict here between rival theories of government, the mingling of many nations within her borders, the creation of a new forestry and agriculture—have each inspiration for the historical scholar and value for all citizens. It is the high aim of the University departments joining in this study, research and publication to make this rich mine of Nebraska human experience available in the solution of present Nebraska problems. History is thus made to serve the course of human progress. The present University study in Nebraska history is therefore planned first of all to yield information on living social questions arising today. Their publication is a contribution not only to Nebraska's needs but also to the world's knowledge and has been welcomed as such beyond the borders of our own commonwealth. This paper by Mr. Dickinson is not only a distinct contribution to Nebraska history, but a most valuable addition to the world's stock of knowledge on a very important public question. Its research is thorough. Its criticism is fair, yet courageous. Its conclusions are discriminating and strong. Much of its statistical information is absolutely new. Nebraskans will learn for the first time many important facts in their state's banking history from these pages and every Nebraska bank will find this pamphlet an authority in its field. ADDISON E. SHELDON. Nebraska History Seminar University of Nebraska. October 22, 1914. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org I. Federal Reserve Bank of St. Louis 0 • -AL 0 ib https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis GEORGE O. VIRTUE, Professor of Political Economy and Collllllerce. HOWARD W. CALD WELL, Professor of American History. L. E. AYLSWORTH, Associate Professor of Political Science. GEORGE E. HOWARD, Professor of Political Science and Sociology. C. E. PERSINGER, Professor of American History. ADDISON E. SHELDON, Lecturer on Nebraska History. DIRECTORS OF UNIVERSITY RESEARCH IN NEBRASKA HISTORY, ETHNOLOGY, POLITICAL SCIENCE AND ECONOMICS. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • JAS. E. LE ROSSIGNOL, Professor of Political Economy and Commerce. P. SEMINAR STUDIES in Nebraska History, Political Science and Economics Beginnings of University Research and Publication in Nebraska History In the years 1885-1891 Dr. George E. Howard, as professor of history in the University of Nebraska and secretary of the Nebraska State Historical Society, laid the foundations for systematic research in Nebraska history and exemplified his plans by publication of two important volumes of collections of the society. When Dr. Howard was called in 1891 to the chair of history at Leland Stanford University, California, the work in history was divided. Professor Howard W. Caldwell became professor of American History and Civics and Secretary of the Nebraska Historical Society. Nine volumes of Nebraska historical publications followed under his editorship—between the years 1892 and 1907. In 1895 Professor Caldwell founded a seminar consisting of graduate and advanced students in the University of Nebraska for study,research and publication in the field of American history. From 1899 the work of this seminar was for some years largely directed to the study of problems in Nebraska history and government. Among its members at this time were C. E. Persinger, Leon E. Aylsworth and Addison E. Sheldon, all now members of the University History and Political Science faculties. Gradually the number and interest of advanced students so increased that two seminars were formed, one for the general field of American history, the other for special research in Nebraska history. Both of these are increasing in numbers and interest at the present time. Growing out of this work in Nebraska history several publications have been made, among them these: "The Territorial History of Nebraska Told by its Makers" "Civil Government of Nebraska" "History of Higher Education in Nebraska, 1854-1899" "Nebraska Constitutional Conventions" "The Archives of Nebraska" "Poems and Sketches of Nebraska" "History and Stories of Nebraska" (A text book in Nebraska schools) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Professors Caldwell and Persinger Professor Caldwell and members of the seminar Professor Howard W.Caldwell Addison E. Sheldon 6 Bank Deposit Guaranty in Nebraska Present University Research Work In Nebraska History Interest in Nebraska history as a field for profitable research and historical training increases each year. The present seminar in Nebraska history is conducted by Professor Caldwell and Director Sheldon of the Legislative Reference Bureau. The seminar meets each week. Investigations in the original documentary records of the state, in files of Nebraska newspapers, in personal letters and recollections are carried on by each student under the direction of the instructors. Reports on these investigations are read and criticized. In the course of one, two or three years a thesis is worked out by the student with a carefully edited list of sources of information. From time to tim.e the most available of these theses are published as chapters of Nebraska history. A partial list of topics pursued in these researches at present and during the past two years follows: ‘,'History of Nebraska State Board of Agriculture" ;The Nebraska Movement from the Farms to the Cities" 'History of Farmers' Co-operative Societies in Nebraska" "A History of Agriculture in Sheridan County" "Christian Missions Among Nebraska Indians" "Progress in Civilization of the OgIsla and Brule Sioux" "History of the Nebraska Labor Bureau" "Labor Conditions at l'acking Houses in South Omaha" "Nebraska Authors and Their Works" "History of Bank Guaranty Legislation in Nebraska" "History of Taxation in Nebraska" "Federal Appointments in Nebraska" "Economies in Retail Nebraska Trade" "Dependent Children in Nebraska" "Management of Nebraska Penitentiary" "Legislative Employes in Nebraska" "Workings of Australian Ballot in Nebraska "History of Political Parties in Nebraska 1885-1900" "Legislative Control of Railroads in Nebraska" "The Construction of Railways in Nebraska" M. A. Sharp Leon H. Moomaw Frank S. Perkins Harry E. Rush David J. Williams Anna Hahne Leon H. Moomaw Ralph C. Sweeley Florence B. Schell Z. Clark Dickinson William E. Hannan George A. Munn E. L. Stancliff Myrtle Keegan Alfred J. Melville Frank S. Perkins C. W. Mottinger James W. Eckersley Robert McMasters Earl H. Davis Nebraska R h in the Seminar of Political Science and Sociology Upon the return of Dr. George E. Howard to the University of Nebraska and the establishment of the department of political science and sociology in 1906 courses were founded leading to original research work in living questions of the day. As an outgrowth of this work was established the Tuesday Evening Seminar under leadership of Dr. Howard and Professor Aylsworth. This seminar is composed of graduate students, many of them candidates for the M. A. or Ph. D. degreee. Independent and original investigations are made in the whole field of political and social subjects. Nebraska topics are chosen so far as practicable. The experiences of other states and countries in government and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Bank Deposit Guaranty in Nebraska social betterment are brought into comparison with those of our own. Men and women are thus trained in knowledge of Nebraska affairs and better fitted for their duties as citizens. The written results of this Nebraska research work are edited with care and published for the information of the general public. Into many of them go months of most careful investigation, comparison and criticism. When completed they become an authority upon questions of fact in their field and the basis of intelligent action by the citizens and the legislature. Under act of the Nebraska legislature of 1911 the Nebraska Legislative Reference Bureau is affiliated with this department in courses of study, research and publication. Among the subjects of Nebraska research now under way or recently undertaken by this Seminar are the following: "A Model System of Garbage Disposal for Lincoln" "A Model Civil Service System for Lincoln" "The Organization, Functions and Coat of County Govenment in Nebraska" (with special reference to Lancaster county) "The Municipal System of Nebraska" "The Preferential Vote in Municipal Elections" "History of Municipal Legislation in Nebraska, 18U-1911" "Social Effects of the Free Textbook System" (with special reference to Nebraska) "Recent Legislation for the Administration of State Education: How to take the Superintendent out of Politics" "The Administration of Education in Nebraska" "The Minimum Wage with Special Reference to the Nebraska and California Laws" "History of Labor Legislation in Nebraska" "The Contract-Labor System in the Nebraska Penitentiary" "The Need of the 'Short Ballot' in Nebraska: Study of our System of Elective Offices" "Should the Board of Commissioners of State Institutions Establish a Nebraska Reformatory-" "Comparative Merits of the Eight O'Clock Closing and no License Policies in Nebraska" "The Spoils System in Nebraska" "The Administration of Public Health in Nebraska" "An Investigation of Family Desertion in Lincoln" "The Road to Citizenship." A Study of Naturalization in a Nebraska County. (Published in Political Science Quarterly, September, 1912) "A Foreign Industrial Group in Lincoln" "Reform of Judicial Procedure" (chiefly with reference to Nebraska) Nebraska R Grace M. Clark C. A. Sorenson Edna D.Bullock Thomas V. Goodrich C. E. Lemmon Mary E. Elliott Mary Tremain Julia M. Wort Charles E. Teach Rabbi Jacob Singer John F. Krueger W. E. A. Aul C. A. Sorenson WE.A.Aul Marcus M. Beddall Walter B. Sterrett Clara Coulter Wolf Annie Hawes Hattie Plum Williams Henry C. Luckey h in Economics Seminar Under direction of Professor J. E. LeRossignol and Profe.s.sor G. 0. Virtue a seminar on Economics has been instituted in the department of Political Science and Commerce. Below are some of the research subjects under investigation there, the work being largely done in the Nebraska field: "Agricultural Credit" "Comparison of Producers' and Consumers' Prices of Agricultural Products" "Division of Sources of Revenue for State and Local Purposes" "Nebraska State Railway Commission" "Assessment of Real Estate in Lancaster County" https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R. A. Canaday H. C. Filley M. S. Pate F. F. Laune V. D. Smith Bank Deposit Guaranty in Nebraska 8 BANK DEPOSIT GUARANTY IN NEBRASKA I. GROWTH OF THE IDEA The principle underlying the Safety-Fund System of New York was sufficiently like that of the modern deposit guaranty laws to make a brief resume of it illuminating to a discussion of the latter. That measure,enacted in 1829, levied a tax of of 1% yearly on the capital of banks chartered under it, to create a fund out of which the currency of members which.failed should be redeemed. Assessments were paid to the State Comptroller, who invested the money and distributed its income to the participants in the system. For several years there were no failures. By 1835 the fund amounted to $400,000, and the security of their notes had brought the Safety-Fund banks so much business that their combined capital was five times that of the unsecured. With the panic of 1837, however, came a series of failures; and when, in 1841, the courts decided that the fund could be drawn on for all debts of insolvent member banks, the fund of $850,000 was soon swept away. It is thought that if the currency only of failed banks had been paid from the reserve, as was the original intention, the amount on hand would have been ample. The fact that the Safety-Fund institutions were legally held to be insured as to all liabilities, however, caused such a rush of patronage to them that in spite of the inroads of a host of fraudulent claims the system was kept staggering along, with the fund continually overdrawn, until 1866.' Vermont (1831) and Michigan (1837), with modifications of New York's method, successfully insured their state banks' currency until it was taxed out of existence by the Federal government in 1865.2 The plan initiated by the New York Free Banking Act (1838), of each bank securing its circulation by approved collateral deposited with a central authority, gradually became the prevailing system, and was incorporated with little essential change into the National Banking Act of 1863. After that, as has been stated, the state bank notes were taxed out of circulation, and no more was heard for a long time of the guaranty or insurance of banks. The deposits, however, of both state and national banks were still subject to risk. Whenever a panic came, and the fall of • 1 Knox, History of Banking, 399 K. 11 Ibid., 355, 732. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Deposit Guaranty in Nebraska 9 some big bank would set a multitude of others tottering, a cry would go up that when a man put his money into a bank, he ought to have more assurance that he could get it out; but the only relief was better and better inspection, which only minimized the danger, until the Oklahoma deposit guaranty law of December 17, 1907. The latter act enforced contributions from all state banks to make good the deposits of any which should fail, so that in theory "each bank guaranteed every other bank." This system was severely tried by numerous failures due to the reckless and criminal banking which had flourished the few years previous, while the country was being opened up to settlement, and while there was no inspection in Indian Territory, which was added to Oklahoma Territory to form the new state. One bank failed with deposits of $2,800,000,3 having assets upon which not much more than half that amount could be realized. Burdensome assessments had to be levied upon the surviving banks, averaging 1% a year on their deposits from the pa-a-sage of the law up to the present. The fund is still under a funded debt of some $375,000. Amendments of the law in the last few years have changed the situation so that each bank participating, instead of standing sponsor for all other like institutions, is liable for only 1-5 of 1% of its deposits in any one year, a basis which, as more experience is acquired, is likely to be more satisfactory to the bankers while protecting the depositors.* Such, then, is the background of Nebraska's guaranty law; the general growth of state activity for greater safety to the banking clientele, especially by means of mutual insurance, and the example of a sister state's guaranty of deposits. Banking in Nebraska, from territorial times in the fifties up to the first state supervision in 1886, was partly of a "wild-cat" nature. No records are available as to failures until 1892, when the State Banking Board was created with a regularly employed secretary, but since all that was needed in the preceding forty years to start a bank was a sign and a counter,b and as every banker regarded as his chief function the borrowing of money from the east to lend to the struggling settlers of his neighborhood, it is safe to say that failures were not uncommon. Although the • Columbia Bank & Trust Co., Oklahoma City. The data concerning Oklahoma is from Mr. Thornton Cooke's articles in the Quarterly Journal of Economics, Vol. 24, p. 85 if. (1909) and in November, 1913; also from Report of the Bank Commissioner of Oklahoma. 'Dr. P. L. Hall, Proceedings Neb. Bankers' Ass'n, 1906: 105. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Deposit Guaranty in Nebraska 10 aggregate deposits were never very large in those days, the sweeping away of the small savings of what depositors there were in such wrecked banks must have meant great hardships to the indigent frontiersmen. In the early '90's, when the state banks were first subject to inspection, came a series of "hard time" years, when crops were short and a financial depression swept the entire nation. The disastrous effects of this crisis on Nebraska banks are shown by the following tables: STATE BANKS, Year Banks Failed Total Number State Banks at End of Year 7 17 8 17 36 513 504 482 447 414 1892 1893 1894 1895 1896 $71,997 652,175 197,288 584,665 1,156,888 Total Deposits in All Banks $24,891,113 17,208,476 18,074,832 14,200,775 10,227,537 $2,662,9987 85 Total Deposits in Banks Closed NATIONAL BANKS, Year 1891 1892 1893 1894 1895 1896 Totals Net loss to creditors. Banks Failed 4 4 3 5 16 Total Proved Claims Against at End of Year Failed Banks 139 137 134 127 117 113 Dividends from Failed Banks $346,840 $165,018 1,823,837 269,785 877,008 445,338 74,030 127,793 $2,817,470 $812,179 2,005,291 Total Deposits in All National Banks (Individual) $24,039,000 28,783,000 21,272,000 21,549,000 17,994,000 17,037,000 $2,817,470 A comparison and combination of these tables reveals that *Rhin six years the creditors-of Nebraska banks had over five million dollars tied up in 101 failed banks, of which sum creditors of the nationals finally recovered less than a million, and creditors of state banks an unknown sum perhaps something over a million. It is seen that the total number of banks in Nebraska fell from 650 in 1892 to 527 in 1896; and the aggregate deposits declined in the same time from $48,920,000 to $27,264,000. 'Report, Sec'y State Bkg. Bd., 1912: xvi. Definite statistics are lacking as to dividends paid on these deposits, because liquidations are were then in charge of the district courts. Answers to a questionnaire sent out on this point summarized in Appendix A below. s Report of the Comptroller of the Currency, 1913. See Appendix B below for figures on other years. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Group of Public Men Connected with Beginnings of Bank Guaranty in Nebraska https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Deposit Guaranty in Nebraska 11 The largest failure was of the Capital National, in Lincoln, whose claims amounted to $1,300,000. Only about $250,000 was finally realized from its assets. The distress occasioned by this million-dollar loss to depositors was a tremendous object-lesson to the members of the legislature of 1893, which was then in session. Though no bill was introduced into the legislature for deposit guaranty until four years later, apparently it began to be talked of at this time, as a practical scheme. C. W. Mosher, president of the Capital National, is credited with having written an article advocating a guaranty plan while in jail awaiting trial for criminal action in wrecking his bank.9 If he did so, it would appear that Mosher was the originator of the idea in Nebraska. It was also in 1893 that W. J. Bryan, then representative from the First District of Nebraska in Congress,introduced a bill into the House" providing for the payment of depositors of insolvent national banks by an insurance fund administered by the Comptroller of the Currency. His action was inspired, some Nebraskans say," by C. 0. Whedon, who was for many years a consistent advocate of national bank deposit insurance. These early suggestions of a method of mitigating the calamity of failures by mutual bank insurance, and the record of failures from 1891 to 1896, culminating in the fall of thirty-six banks with over a million dollars deposits in 1896, give a hint as to the circumstances which influenced the author of a bill in the legislature of 1897 enacting a yearly tax of of 1% on the average daily deposits of state banks, to be collected with other taxes and held by the State Treasurer in a separate fund for the payment of the depositors of such banks as might become insolvent." No emergency assessment was provided for, in case the fund should be exhausted. The levy of of 1% was apparently thought to be sufficient, a supposition quite in harmony with the tentative and haphazard drafting of the bill. The measure was referred to the Committee on Banking and Currency, where the bankers, assisted by Dr. Hall, Secretary of the State Banking Board, promptly killed it. In the legislature of 1899 Mr. I. D. Evans of Kenesaw in•Conversation with Dr. P. L. Hall, Pres. Central Nat'l Bank, Lincoln. 1, H. It. 8878, Cong. Record vol. 25. 1, F. A. Harrison and W.L. Locke of Lincoln. "S. F. 100, intr. by E. G. Watson of Friend. Dr. Hall says the real author was Judge Beall of Hastings, who spent a great deal of time studying the problem before the legislature convened, and appeared in defense of the bill before the committee. I have not been able to verify this statement. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ^WISP Bank Deposit Guaranty in Nebraska 12 troduced a bill requiring state banks to keep on deposit with the State Treasurer 5% of their average daily deposits as a suretyfund for the payment of creditors of failed banks. They were allowed to count this deposit as part of their legal reserve, and the Treasurer was to loan the fund out to state banks at 21% interest. The income thus collected was to form a separate fund for the payment of losses so that no further deposit would be required unless the drains were too heavy." Mr. Evans says that the bankers of the state at once began active efforts to defeat his bill, writing numerous letters to their representatives in the legislature asking them to vote against it," and this is not surprising, considering that under it each bank was required to guarantee all other banks up to 5% of its deposits, and the experience of the past few years had taught them that they might expect to participate in the payment of an aggregate loss of from 1% to 10% of their total deposits. A number of bankers and bank attorneys were sitting in the legislature at the time. Mr. A. C. Shallenberger of Alma and Dr. P. L. Hall were prominent in the opposition which resulted in the defeat of the bill in committee, though both of them were very influential in securing the passage of the present guaranty law. Dr. Hall now says that the reason he opposed the Watson and Evans bills was because they provided for immediate payment of depositors—payment as soon as claims have been proven —that he believed then, as he does now, in ultimate payment— that is, payment out of the guaranty fund only after all the 'assets of the failed bank have been disposed of and as much as possible collected from the stockholders's. Nevertheless his comment on the bills above mentioned, in his report as secretary of the State Banking Board in 1899, seems to indicate that he was wholly unfavorable to the principle of deposit guaranty: "Efforts were made at the last two sessions of the legislature to amend the banking act by providing for a reserve fund to be collected from the banks for the protection of depositors of a failed bank. While protection to the depositors is a matter of the greatest importance, and protection along the lines attempted as above indicated meets the approval of many experienced bankers whose opinions I highly prize, yet I have never been able to bring myself to see that such a plan would be equitable." ,3 H.5.70,1899. 14 Letter of March 14, 1913 to the writer. "Conversation, November, 1913. "Report, Sec'y State Bkg. Bd., 1899, p. 20. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Deposit Guaranty in Nebraska 13 It is interesting to note that there were at this time "many experienced bankers" who approved of deposit guaranty, even though they were evidently in the minority. In 1900 the late C. 0. Whedon of Lincoln prepared a bill relating to national banks which he sent, it is stated,17 to then Congressman E. J. Burkett of the First District for introduction into Congress. This bill, which was published and recommended editorially in the Nebraska State Journal on December 15, proposed to set aside half the tax now paid by national banks on their circulation for the formation of a guaranty fund to protect depositors. He had worked out statistical data which showed, he believed, that this fund would be sufficient to meet the demands, and that the other half of this tax would reimburse the Federal Government for its expenses on the national banks' circulation. Mr. Whedon later assisted the Attorney-General of Nebraska in upholding the state law of 1909 in the Supreme Court of the United States. At a bankers' meeting in Fremont in April, 1903, Dr. P. L. Hall, then cashier of the Columbia National of Lincoln, read a paper called "A Tax on Banks to Protect Deposits," in which he proposed a method of guaranteeing very similar to that which has since become law. He presented a table showing the deposits in failed state banks compared with the total deposits in all state banks for the ten years from 1892 to 1901. Assuming that 60% of these deposits had been recovered in dividends, he estimated that the losses for the period named had been nearly 1% a year on the average daily deposits. Using the national banking average of 75% dividends, however, the loss had been about .38 of 1%, and, considering the extraordinary conditions prevailing in that decade, he expressed his opinion that an annual assessment of 1-10 of 1% on the average deposits would be enough to pay all losses which would occur in the future, under the present banking laws and inspection. He worked out a system in considerable detail, advising especially that the fund be not collected and entrusted to the politicians who temporarily hold office at the State House, but be left with the banks, to remain intact until drawn upon by the State Banking Board to pay receiver's certificates issued to the depositors of any failed bank. Following is an extract from his paper: "Conversation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis with Jas. A. Brown of Lincoln. former secretary of Mr. Whedon. 14 Bank Deposit Guaranty in Nebraska "If the principle of a guaranty fund is right, and the results produced would be what is claimed, it would be money well invested. That a sufficient guaranty fund would inspire confidence, and in time of panic allay the fears of depositors, there can be but little doubt. That it would bring to the banks increased deposits I think may be fairly a-ssumed. That such a fund can be maintained without oppressive taxation to the banks is a problem whose demonstration depends on many varying conditions, such as the rise and fall of values and prices, the inflation and contraction of credits, and all the well-known influences that materially affect and influence the solvency of banks and their ability to meet the demands made upon them." This language seems to us so temperate and conservative that we can hardly realize how radical it appeared to the convention. No discussion was made of it at this meeting, but when Dr. Hall read the same article before another group at Falls City in July of the same year, the record states: "Mr. Morehead requested that the members who were not in favor of such sentiment rise. There was unanimous sentiment against it."19 Two years later (January, 1905), Frank Jouvenat, then of Petersburg, introduced a guaranty bill into the House which he, being chairman of the Banking and Currency Committee, managed to get before the Committee of the Whole, where it was defeated. This bill originally set aside of 1% of the average non-interest-bearing deposits every six months, to be drawn upon by the State Treasurer pro rata when necessary to pay losses. In committee the aRgessment was amended to 1-10 of 1%.20 This was the most carefully drawn bill thus far introduced, because Dr. Hall's actuarial figures had demonstrated that an assessment of 1-10 of 1% would probably be ample to meet prospective losses. As Mr. Jouvenat did not return to the next legislature, J. 0. Milligan of Wakefield introduced a bill into the House on February 8, 1907, which was identical with the one introduced by Jouvenat in the preceding session, as amended by the committee." This bill also got past the Banking committee but met defeat in Committee of the Whole. The bankers of the state were now beginning to admit, in their conventions, that the public had a right to expect something more than "due diligence" in the safeguarding of its savings, "Proceedings Neb. Bankers' Ass'n, 1903, p. 353. .9 Ibid., p. 281. "H.R. 133, 1905. "H. R. 28, 1907. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • Group of Nebraska Bankers and Legislators Connected with Bank Guaranty Legislation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Deposit Guaranty in Nebraska • 15 and to the topic of guaranty was devoted a good deal of discussion. At a meeting of the Nebraska Bankers' Association in 1906, Henry W. Yates, president of the Nebraska National Bank of Omaha, contributed a paper on "Protection for Bank Depositors." "The difficulty of providing or enforcing any system which will prevent bank failures has led to the advancement of schemes for guaranteeing bank deposits * * * This idea has merit, and deserves consideration. In the banking of the future, when our widely extended system of independent banks shall assume greater coherency and stability, something of this kind may be welcomed and adopted But we are far from that suitable condition at present, and to my mind the objections to the scheme are now insurmountable."22 All banks would be on the same footing, he predicted, and "the glibbest talker and largest promiser would have an equal chance with the oldest and most experienced banker." "All would go well for a time," he added darkly, "but in the end if continued so far, the business would be destroyed, for good bankers would give up the contest and seek other means of livelihood." He therefore recommended turning away from this blind alley, and the trying of other means to secure greater safety, such as more rigid examinations, more severe penalties for irregularities, and the introduction of bookkeeping methods which would make individual defalcations impossible. Postal savings banks then began to be talked of as providing the desired safety for individual deposits, and the bankers became alarmed at the prospect of so much money being taken out of the state. In a meeting of Group One of the Nebraska Bankers' Association in June, 1907, a resolution was introduced as follows: "WHEREAS, A general movement is being made to secure the passage of a law establishing a system of postal savings banks, be it "RESOLVED, That it would be better for the banks of Nebraska to provide a guaranty fund to protect depositors than to concede the establishment of government postal banks."23 In other words, said the author, we are.between the devil and the deep sea, but have a slight preference for the deep sea of bank guaranty. C. B. Anderson, Vice-President of the Crete State Bank, who had been prominent as chairman of the Resolu"Proceedings, Nebraska Bankers' Assoc., Nov. 22, 1906, p. 101. 2 Nebraska State Journal, June 21, 1907. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 16 Bank Deposit Guaranty in Nebraska tions Committee of the Republican State Convention of 1906, opposed the resolution, believing guaranty neither necessary, fair nor feasible. John R. Cain, Jr., of Stella, is also mentioned as being unfavorable to it. C. L. Hurlburt of Utica, and E. R. Gurney of Fremont spoke in behalf of the plan, but it was finally laid on the table, and no action was taken by these bankers to forward the movement. In October came the panic of 1907. The banks of the reserve cities all over the country suspended cash payments, and Nebraska banks became fearful of paying out too much of their coin and currency without being able to get more from their correspondents. So they formed clearing-house associations and issued certificates in convenient denominations, secured by deposits of commercial paper. These, along with their cashier's checks, they put into circulation as much as possible instead of cash. Bankers of the other states adopted the same methods, except in Oklahoma. There, as has been stated, the situation was unusually precarious because of the large number of weak institutions, especially in the old Indian Territory, whose solvency was questionable. On the out-break of the panic, the Governor declared a legal holiday of a week, while the Executive Committee of the Oklahoma Bankers' Association met to devise a way out. This committee recommended guaranty of state banks by the state, and of national banks by the nation. Within a few weeks after this Oklahoma became a state, and the first legislature met at once. The Banking Board introduced a bill for the guaranty of deposits of state banks by a 1% annual assessment on the average deposits, with unlimited special assessments in case of emergency. This bill became law December 17, 1907. National banks were invited to participate in the system, but were forbidden to do so by the Comptroller of the Currency.24 The law was immediately contested by one of the banks affected, and was by the state courts upheld.25 In Nebraska the panic caused no failures, because the very efficient State Banking Board had succeeded in bringing the banking business-of the state into an excellent condition; but as soon as people were able to get their money out of the banks many of them did so. The deposits of state, private and savings :4 Thornton Cooke, Quarterly Journal of Economics, XXIV, 85. 25 Noble State Bank v. St. Bkg. Bd., 97 Pac. 590. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Bank Deposit Guaranty in Nebraska 17 banks dropped from $71,539,000 on August 31, 1907 to $64,434,000 on November 30, a falling off of seven millions, or about onetenth, in those three months.26 It is true that the August deposits are usually two to three millions heavy, on account of marketing of crops, but that the confidence of many people in banks generally was shaken by the panic is certain, one evidence being that the next year in August the deposits were six millions below August, 1907. It became clear to the bankers that a recurrence of the conditions which had just come about must, if possible, be prevented. State guaranty of deposits naturally came into notice at once as a possible solution. Dr. Hall read a paper in January, 1908, before the Candle Light Club of Lincoln, in which he recommended a system of insurance similar to that which he proposed in 1903, above referred to." The Oklahoma experiment was watched with keen interest. Reports of its progress were often printed in the papers, with varying opinions as to whether or not it was proving successful. The Democratic national convention, meeting July 7, 1908, was dominated by Mr. Bryan, and he was able to get a plank into the platform favoring national bank guaranty. This action called the attention of the entire country to the subject, enlivened by a spirited controversy between Mr. Bryan and Mr. Taft as to the merits of the Democratic doctrine. When the Democratic state convention met September 22 in Nebraska, Mr. Bryan insisted on the following plank: "(We favor) A law under which the state banks shall be required to establish a guaranty fund, under state supervision and control, under an equitable system, which shall also be available to all national banking institutions of this state wishing to take advantage of it."" The Democratic candidate for governor, Mr. Shallenberger, who, as has been stated, is credited with having been active in defeating the Evans bill in committee in 1899, also urged the adoption of the above plank by the convention. In the Republican state convention, which met the same day as the Democratic, a determined effort was made by Governor Sheldon, candidate for reelection, and M. L. Fries of Arcadia, member of the resolutions committee, to have a guaranty plank adopted. All other members of the resolutions committee were 26 Report See'y State Bkng. Bd. 1907, p. xv. 27 The Commoner, Sept. 18, 1908. 28 Nebraska State Journal, Sept. 23. 1908. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 18 Bank Deposit Guaranty in Nebraska either bankers or bank attorneys," so there was no second to Fries' motion. He therefore offered it from the floor of the convention. Governor Sheldon seconded and spoke in its favor, as did also C. 0. Whedon, but the convention voted it down, 48 to 15." Twenty-six members of the convention, according to F. A. Harrison, editor of the Nebraska State Capital, were financially interested in banking institutions." The Democrats used their guaranty promise to good advantage during the campaign, and although Mr. Bryan's personal popularity in this state was one of the most important of his party's assets, yet the prospect of safer bank deposits was undoubtedly of great force in the election of Mr.Shallenberger and a majority of the Democratic candidates to the legislature. II—ENACTMENT AND ESTABLISHMENT OF THE LAW When the legislature met January 5, 1909, Governor Shallenberger read his message, of which nearly two-thirds was devoted to bank deposit guaranty. He recommended that an assessment of 1 of 1% of each bank's average daily deposits for the preceding six months be levied the first of July, 1909, and I of 1% at intervals of six months up to January 1, 1911; then an annual assessment of 1-10 of 1%. If the fund should be exhausted, he would allow an emergency assessment up to 2% in any one year. He advised that the fund be left on deposit with the banks themselves, subject to draft by the State Banking Board." A Committee on Banking, with Charles Graff of Bancroft as chairman, was appointed in the House to draft the bill. This committee hired I. L. Albert of Columbus as special counsel, paying him $300 for his services.33 On March 1 H. R. 423 was reported, embodying most of the Governor's suggestions, and bearing the stamp of Mr. Bryan's approval. Dr. Hall and others urged Mr. Bryan to stand for an ultimate payment form of bil1,34 because of the greater safety to .the fund; but the enthusiasts who wanted the most popular measure possible gained the ascendency over him, and he consented to payment of depositors as soon as the district court having charge of a receivership deter"Nebraska State Capital, Sept. 25, 1908. "Nebraska State Journal, Sept. 23, 1908. n Nebraska State Capital, Sept. 25, 1908. "Governor's message Senate Journal 1909 p. 127 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O 1 Bank Deposit Guaranty in Nebraska 41) 19 mines the amount of cash necessary above that held in the bank, making a period of about sixty days. The fund is then to be reimbursed by the sale of the bank's assets. Amendments were made in committee, limiting the emergency assessments to 1c, in any one year and providing that the fund be kept at 1% of the aggregate deposits. To discourage reckless bidding for deposits, more than 4% interest on time deposits was forbidden. The bill in this form was passed by the House March 9, 72 to 23. But one Democrat opposed it, and only 7 Republicans voted for it. Six members who voted No explained, however, that they favored real bank guaranty, but did not think this bill would provide it. When sent to the Senate, H. R. 423 came in conflict with a bill36 introduced by a Republican from the western part of the state, E. L. Myers. This produced a partisan division, but H. R. 423 was finally passed, 19 to 12, only one Republican voting for it and but one Democrat against it. The Governor added his signature April 25, completing the fulfilment of the Democrats' first platform pledge. V. E. Wilson of Stromsburg also introduced a bill which was passed, allowing national banks to reorganize as state banks and participate in the guaranty system.36 Then followed a long period of litigation to establish the constitutionality of the law and put it into operation. One requirement of the act was that all institutions doing a banking business within the state must be incorporated; if not nationally, then under the state law. This compelled the private banks, numbering about twenty, to either incorporate or go out of business. The First State Bank of Holstein, probably a tributary of the First National of Hastings,37 brought suit in the United States District Court against Governor Shallenberger and the other state officials to prevent them from putting the guaranty law into operation. The national bankers of the state, it is claimed, combined to finance this as a test case. The late C. 0. Whedon assisted as legal counsel for the state, his long study of the matter, extensive legal knowledge and earnest interest in the cause making his services extremely valuable. In July, 1909, he "Nob. State Capital, Feb. 12, 1909. "Conversation with P. L. Hall. "S. F. 290. "It. R. 533. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20 Bank Deposit Guaranty in Nebraska prepared an 80-page brief, which was submitted to the court, and of which extracts were published in the papers.38 The complainants contended that the guaranty law was unconstitutional because it discriminated against private banks, in forcing them to either incorporate or dissolve, and also in compelling solvent banks to pay the debts of insolvent institutions. This contention was upheld by the court in its decision on October 16. The opinion, written by Judge T. C. Munger, was in part as follows: "It is entirely clear that this act of the legislature does deprive the citizen of his right to engage in a lawful business except upon the terms that the state will take of his property, without his consent, for the private use of others, and without due process of law. This is not accomplished by requiring that A shall pay directly to B, or to B's creditors, but the same result is effected through a process akin to taxation * * * * The act not only attempts to exclude individuals from engaging in the banking business, unless they do so through the agency of a corporation, but also attempts to impose upon them, as a condition to their engaging in that business even in that form, a duty to make good the obligations of all other bankers in the state to their depositors * * * * * We are of the opinion that this cannot be done consistently with the 14th Amendment to the National Constitution or with Section 3 of Article 1 of the State Constitution, and that this act is therefore void."38 By this decision the guaranty law was made inoperative. A storm of protest went up from advocates of the law. Mr. Whedon, in a letter published in the Nebraska State Capital of October 22, criticised the Federal Court's decision severely. It ignored entirely, he said, the principle laid down repeatedly by the Supreme Court of the United States that the Fourteenth Amendment was not intended to interfere with the police power of a State, which includes any laws a State may pass to provide for the general well-being of its inhabitants. The state officials appealed the case December 10, 1909, to the United States Supreme Court, Mr. Whedon still assisting as counsel. At this time the other state bank guaranty laws were also in the Supreme Court on appeal, so the high tribunal lumped them all together for purposes of argument. On January 3, 1911, Justice Oliver Wendell Holmes decided that the Oklahoma law was valid,- and that as the same principles were involved in the 'T A. L. Clarke, of the latter bank. WWI Its president. "Nebraska State Capital, July 23, 1909. "Quoted in Nebraska State Journal, Oct. 17, 1909. Case reported in 172 Fed. 999. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Deposit Guaranty in Nebraska I 21 Nebraska case, the Nebraska law was also valid and the decision of the District Court should be reversed. The following is an extract from his opinion: "The levy and collection, under a state statute, from every bank existing under the state laws, of an assessment based upon average daily deposits, for the purpose of creating a depositors' guaranty fund to secure the full repayment of deposits in case any such bank becomes insolvent, is a valid exercise of the police power, and cannot be regarded as depriving a solvent bank of its liberty or property without due process of law * * * * The police power of a state extends to the regulation of the banking business, and even to its prohibition, except on such conditions as the state may prescribe.' 4° Justice Holmes proceeds to examine the arguments advanced by the bankers, which were endorsed by the District Court, and then says: "Nevertheless, notwithstanding the logical form of the objection, there are more powerful considerations on the other side. In the first place it is established by a series of cases that an ulterior public advantage may justify a comparatively insignificant taking of private property for what in its immediate purpose is a private use * * * * It may be said in a general way that the police power extends to all the great public needs * * * * Among matters of that sort, probably few would doubt that both usage and preponderant opinion give their sanction to enforcing the primary conditions of successful commerce. One of these conditions at the present time is the possibility of payment by checks drawn against bank deposits, to such an extent do checks replace currency in daily business. If, then, the legislature of the state thinks that the public welfare requires the measure under consideration, analogy and principle are in favor of the power to enact it." He curtly answers the reductio ad absurdum of the law's opponents: "it is asked whether the state could require all corporations or all grocers to help to guarantee each other's"solvency, and where we are going to draw the line, but the last is a futile question, and we will answer the others when they arise." The Nebraska case was disposed of by a single sentence: "This case is governed by the decision in Noble State Bank v. Haski1l."4 ' 4° Noble State Bank v. Haskell, 219 U. S. 41 A. C. Shallenberger et. al. v. First https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 104. St. Bk. of Holstein, 219 U. S. 114. 22 Bank Deposit Guaranty in Nebraska A motion for rehearing was denied. This notable decision establishes, in remarkably lucid language, a state's right to protect depositors in its banks, even to the extent of compelling mutual insurance of the institutions it has chartered. The legislature of 1911 proceeded to bring the 1909 law down to date, and to patch up a few of its weak spots. Senator J. B. McGrew of Bloomington introduced a bill on February 7, 1911, repealing fourteen of the sixty-six sections of the preceding act, and substituting amendments therefor." The dates for paying the first 1% assessment in four semi-annual installments were shoved up two years, but it was provided that no bank which should have nationalized after the assessments were originally due, from July 1, 1909 on, be released from the obligation for these payments. As originally reported from the Banking Committee, the bill reduced the interest rate to be paid on deposits from 4% to 3%, limited the guaranty fund to $1,000,000, and contained a clause allowing banks voluntarily liquidating to get back from 50% to 90% of their aRgessments not drawn upon. It was amended in committee of the whole to permit 5% interest on time deposits, to establish an outside limit of 11% of the aggregate deposits of the banks to the guaranty fund, and the refund clause was stricken out. It was also more definitely stated that no further security than the Depositors' Guaranty Fund should be requiied for public deposits. In this form the bill was passed unanimously and signed by the governor. The law now contains no direction as to what shall become of any bank's share of the guaranty fund when it closes its business up voluntarily. The secretary of the State Banking Board recommended in his report for 1912 that a law be enacted to clear up this ambiguity, and a bill was introduced" allowing such a bank to retain half its fund, the other half to go to the State Banking Board to create a fund to be first drawn upon in case of loss. This bill, with others relating to the guaranty law, was not passed. A decision will doubtless be made by the courts as soon as a bank liquidates and brings suit against the Board for its share of the fund. 42 S. F. 213. 4 'S. F. 219. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • ( Thy Bank Deposit Guaranty in Nebraska 23 III—EFFECTS OF THE LAW Since only three years have passed since the system has been in operation, no judgment of very much value can be formed as to how well it is likely to work. The rapid gains of the state banks within this time, however, and the almost stationary position of the nationals, are doubtless largely due to the real and anticipated popularity of guaranteed banks. The following table furnishes rather significant data for estimating the results up to the first of 1914:" STATE BANKS Date Nov. Nov. Nov. Dec. Nov. Oct. Feb. May 27, 16, 10, 6, 26, 21, 12, 16, 1908 1909 1910 1911 1912 1913 1914 1914 Individual Deposits Number of Banks Capital Loans 628 662 666 669 694 714 728 787 $10,900,000 12,000,000 12,500,000 12,800,000 13,800,000 14,400,000 14,800,000 15,200,000 $56,700,000 66,000,000 67,900,000 67,500,000 78,200,000 84,900,000 85,500,000 87,900,000 $65,400,000 71,700,000 70,400,000 72,200,00(1 80,700,000 89,300,000 90,100,000 83,300,000 $75,900,000 89,800,000 92,100,000 95,000,000 103,600,000 102,900,000 94,391,456 $73,000,000 83,800,000 86,400,000 89,000,000 98,400,000 94,600,000 93,100,000 NATIONAL BANKS 410 Nov. 27, Nov. 16, Nov. 10, Dec. 6, Nov. 26, 3ct. 21, March 4, 1908 1909 1910 1911 1912 1913 1914 214 220 238 247 243 241 230 $13,500,000 14,400,000 15,400,000 16,200,000 16,200,000 16,270,000 16,280,000 From these statements it is evident that the law of 1909 did not have any very decided effect on the business of state and national banks as long as its constitutionality was doubtful, but that in the last three years, while the law has been in operation, the state banks have made the greater gain in business. In 1909 immediate results from the law seem to have been expected, since fifty-five state banks were chartered, and only five state banks nationalized. The deposits in both classes, which were exceptionally low in 1908, on account of the panic the year before, increased greatly in 1909, with very little advantage to either. In 1910 and 1911,although 52 new institutions were chartered to take advantage of the law,some 24 of the old state banks nationalized to get out from under it. Deposits in state banks stood, at the close of 1911, only half a million dollars ahead of where they were in November, 1909, while their national com41 Reports of the Secretary of the State Banking Board. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 24 Bank Deposit Guaranty in Nebraska • petitors had added more than 5 millions of individual deposits. In 1912, 1913 and the first half of 1914, however, the drift has been steady and rapid in favor of the state banks. The number of the latter has increased 68 in that period, including 12 conversions from nationals since November, 1913, while the total number of nationals has fallen off 17. Since January, 1911, when the guaranty law went into effect, the individual deposits of state banks have increased about 19 millions or 27%, as compared with a seven-million gain for the nationals, which is about 8%. Within the past six months (January to July, 1914) the state banking system has received considerable advertising from the contrast in methods of liquidating the first three failures that had taken place in Nebraska for six years. Two were national banks, at Sutton and Superior, which were closed about the first of the year, chiefly on account of mismanagement. The First State Savings Bank of Superior, under practically the same ownership as the First National, managed to keep going for three months more, but on March 9, 1914, it was closed by the State Banking Board, and George M. Seemann took charge as receiver. With the cash of the failed bank, and money advanced by the newly re-organized State Bank of Superior, he was able to pay the depositors as fast as they proved their claims, while the creditors of the defunct First National had to bide their time, with the chances considerably against getting all their money even eventually. The guaranty fund was drawn on for $54,500, as soon as the district court found that that was the amount required, and the new bank at Superior found itself reimbursed for the money it had advanced, and in possession of most of the depositors of the old state bank, who had been won by the accommodation. A number of the depositors in the failed bank, indeed, did not present their claims for several months after the closing, so great was their feeling of security. This feature of a guaranteed system makes the liquidation easier, and minimizes the disturbance to local business. The remaining national banks in Nuckolls county changed over very soon to state banks, and several others in that section of the state thought best to make the same concession to the preferences of their patrons. The City National of Holdrege, a fairly large county bank, sent out a circular saying: "This https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Deposit Guaranty in Nebraska 25 step has been taken in response to an increasing demand on the part of patrons of Nebraska banks for protection under the provisions of the guaranty law. This security cannot be furnished by a national bank, the guaranty feature having been purposely omitted in the new currency law." The psychological effects on small depositors have been just about what was predicted, and unless some sort of insurance is adopted by the national banking system, or change in conditions is effected by the new Federal Currency Act, it is likely that every national or state bank failure will cause a rush of business away from the nationals to the state banks. Men who organize banks in Nebraska now undoubtedly recognize the guaranty feature as a very important consideration, and more and more seem to be coming to feel that its advantages as a "business getter" are worth more than the premiums involved. Large state banks have been organized in Lincoln and Omaha, and have very soon secured heavy deposits. The new business coming to the state banks is a good deal more of a savings than commercial character, for almost eleven of the nineteen millions was gained in time certificates of deposit, and the total number of depositors increased nearly 75,000. Very likely much of the money now invested in state bank certificates of deposit at about 4% has been brought out of hoarding, as was predicted by the early advocates of the guaranty system and claimed for one of its chief advantages. The national bankers, however, consider this large proportion of time deposits a menace, for they say that such depositors are the most timorous of all, while the bankers holding their money do nut anticipate its withdrawal. In opposition to the state bankers' argument that the guaranty will produce such a feeling of security among the depositors that runs on guaranteed banks will not occur, the national bankers contend that in Nebraska, where no bank ever failed on account of a run, there is no real danger in this direction. When a series of failures among all banks come, they say, as it surely will, the fund will soon be exhausted, and the state banks will be worse discredited in the public eye than the others. The fund is, however, already large enough to take care of the worst failures to be expected in normal times, and when it reaches the 11% limit, as it probably soon will, a very severe crisis will be required to shake it. The total amount on hand after the assessment of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Deposit Guaranty in Nebraska 26 • July 1, 1914, was $870,000, a little less than 1% of the deposits, after paying out the $54,000 for the Superior failure. All the latter amount may be replaced after the assets of the failed bank are disposed of. The conservative view of the effects of the law are pretty well expressed by the following extract from a letter written in 1912 by V. B. Caldwell, vice-president of the United States National of Omaha, to a banker friend in Seattle: "The guaranty law in this state seems not to have changed prior conditions. The national banks in the state cannot trace any appreciable loss of business to the guaranty law, and up to the present time the law has not been in any way detrimental to the general banking business * * * One reason for its apparent success here is that banking conditions in this state are unusually sound, and banking ability throughout the state far above the average * * * "Operating under these almost ideal conditions, it will be a long time before a really valuable opinion can be expressed as to the results of the law. It has not served as a cloak for speculative or impractical bankers, a condition due to the banking department. The law imposes an unjust and burdensome expense upon good bankers. Theoretically and in principle it is absolutely unjust. In this state it is not working out to the disadvantage of general banking conditions because of the care exercised by the state banking board and because of the intelligence and generally high character of the state bankers. "This * * * * opinion * * I believe * * fairly represents all the conditions here,—a bad law, but in its practical application working better than any of its opponents had anticipated."45 • Mr. Caldwell may have changed his mind on the subject since writing the above, at least as to loss of business to the nationals, but he would probably not care to modify the phrase "a bad law, but in its practical application working better than any of its opponents had anticipated." One of the chief advantages, no doubt, of any bank deposit guaranty system is that it compels the experienced and legitimate bankers of the state to protect themselves against the operations of "wild-cat" bankers, and at the same time protect the public. Their united efforts are thus transferred from fighting regulation and guaranty, as Nebraska bankers did up to 1909, to demanding stringent regulation for the prevention of 4, Nebraska State Journal, Aug. 7, 1912. https://fraser.stlouisfed.org I. Federal Reserve Bank of St. Louis Bank Deposit Guaranty in Nebraska 27 dangerous and speculative methods of business. The Nebraska law appears to have had such an effect, for the same bill which created the fund also created certain provisions designed to make banking less hazardous to the depositor." When the bankers come to accept the guaranty as a permanent condition of their business, this sort of co-operation seems as inevitable as it is desirable. IV. CRITICISM OF THE LAW Whether state guaranty of bank deposits will be successful has not yet been made clearly evident. Its ultimate results can be only vaguely predicted from the few years of trial now past. The New York Safety-Fund experiment, above referred to, showed that a fund designed to pay only the circulation did in fact pay all liabilities of failed banks for a number of years before it was discontinued. Knox says that the principle of this act was sound, and the premiums sufficient to guarantee currency under conditions then existing: "The history of the fund from 1829 to 1866,a period of nearly forty years, indicates that if from the first the contributions of the incorporated banks had been applied to redeeming the notes of insolvent institutions, they would have been ample for the purpose."47 The Oklahoma law is still on trial, with its fund $375,000 in debt. The mushroom characteristics of a large number of banks entering that system seem to have been largely responsible for the difficulty there, complicated as it was by political activity in the banking department. Changes have been effected, however, which give promise of restoring Oklahoma's guaranty to a sound working basis. The Kansas and Texas systems have been in operation only about the same time as that of Nebraska, and have been tested by only a few failures. The practicability of a guaranty law, according to the evidence now at hand, seems to depend upon several factors: First, its possible interpretations; second, the effect of guaranty on the conduct of the business; and third, the adequacy of the fund, including (a) the size of the premium,(b) size of the fund, and (c) availability of the fund when losses occur. Let us examine the Nebraska law as to these qualifications. e. g., the 5% limit on time deposits, limit of loans to 10% of deposits, criminal penalties for failure to comply with any part of law, Secretary's discretion as to need of new banks. History of Banking,p.413. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 28. Bank Deposit Guaranty in Nebraska 1. The law states: "If the cash in the hands of the receiver, available for such purpose, be insufficient to pay the claims of depositors, the court in which the receivership is pending, or a judge thereof, shall determine the amount required to supply the deficiency, and cause the same to be certified to the State Banking Board, which shall thereupon draw against the Depositors' Guaranty Fund in the amount required to supply such deficiency, and shall forthwith transmit the same to the receiver, to be applied on the said claims of depositors." The courts will doubtless be called upon to decide as to the exact meaning of "depositors" in this law, since the holders of bills payable and bills and notes rediscounted may conceivably try to secure participation in the guaranty fund. The latter accounts, though comparatively small, might in some cases add greatly to the liability of the fund." 2. The effect of the law thus far on Nebraska bankers and depositors has been discussed. Thornton Cooke of the Fidelity Trust Company of Kansa.s City has observed the same results in Kansas and Texas, viz., that no abnormal or unhealthy relaxation of vigilance for purposes of expansion has taken place." In the Safety-Fund days of New York, however, there was a decided inflation. Knox says: "When it was found that all the debts of every description were to be paid from it (the Safety Fund), a fictitious credit seems to have been given to the chartered institutions, which was used by some of them in recklessly contracting debts for ' the emolument of their managers."5 Business standards have changed a good deal since that time, yet at the beginning of the Oklahoma experiment it seems that a "fictitious credit" was given to many of the newly chartered state banks, a credit which they exploited to the disaster of the older, more conservative members of the system. If people in this state come to show a decided preference for the guaranteed institutions, as is prophesied by the several applications for national conversions to state banks now before the Board, then it may happen that incompetents will be tempted into the banking business, and will involve the older and more careful bankers in their mistakes. Such a result can be averted to a considerable a Lawsof Nebraska,1911;Ch.8,747,See.52. amount to about $650,000 in the last statement. . 8 Quarterly Journal of Economies, November, 1918. .1 History of Banking, p. 409. ' 4 They https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • E. ROYSE Secretary State Banking Board 1901-1914 Charged with Administration of Bank Guaranty Law https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Deposit Guaranty in Nebraska 29 extent, no doubt, by the co-operation of the majority of good bankers with the State Board. 3. (a) The premium of 1-10 of 1%, which is to be levied annually so far as necessary to keep the fund at 11% of the total deposits, was probably based on Dr. Hall's calculations in 1903, which have been explained." Five years after Dr. Hall prepared his paper, the Comptroller of the Currency at Washington compared tl)e aggregate net losses of the national banks, during the whole time of their existence, with the deposits held, and found that but 1-20 of 1% of the latter had gone in failures." Probably on the strength of this showing the Kansas legislature set their annual assessment at 1-20 of 1%. The Comptroller's average, being heayily weighted by the volume of business transacted in older and more settled communities, probably represents somewhere near what the annual drain on deposits will be in Nebraska and other western states when they have attained the stability which eastern states now possess, but an assessment so small would probably not be judicious at the present time, because it builds up the fund too slowly and may not be enough to cover eventual losses. Once a sufficient reserve is created, and experience has shown about what to expect in the future, then the assessment should be accordingly modified. (b) In the absence of a known rate, which could be continued year after year without much revision, a certain limit to the fund is probably the best arrangement possible. Though here, again, a definite basis of calculations is lacking, experienced bankers think the present limit too small, and advocate its adadvancement to at least 21%. If, however, a constant premium could be determined, on the basis of long past experience such as the national bank records afford, it would be more advantageous to have a very high limit to the fund, allowing the surplus to accumulate in a sufficient amount to meet a series of tight years. The fund should also be open at the other end; that is, specific provision should be made for the issuance of negotiable, interestbearing warrants to be used in lieu of cash, to take the place of special assessments. These could then be taken up as money came in, and every depositor would be as sure of getting his money as the holder of any state warrant. • "See pp. 6, 7 above. Cooke, Q. J. E., "Report, 1908, P.86. For interpretation of this at 1-20 of 1e4, see article by T. vol. 24. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30 Bank Deposit Guaranty in Nebraska Periods of depression come in more or less regularly recurring cycles, with prosperous years intervening. If the banks of Nebraska had been compelled to pay their losses from 1891 to 1901 by special assessments, several struggling banks would have been forced under the line into insolvency, and numerous stronger ones would have been badly crippled." If, on the other hand, a straight assPssment of 140 of 1% had been started in 1882, the Board being given the power to issue 6% warrants when the reserve had given out, those warrants would have been all retired in the prosperous decade just past, during which there were but a few small failures. This illustration is not intended to suggest the possibility of the recurrence of such years as the '90's, but only to show the advantage of distributing the heavy losses of a few years over the good times preceding and following. It is clear that this 11% of the aggregate deposits will not last very long in a real crisis. Two or three failures among the larger institutions, which might come at any time, would sweep it entirely away. Then, as failures come, one on the heels of another, as they do in a crisis, the fund must be bolstered up by special assessments which can be met with only the greatest difficulty by the sound banks who are already having a strenuous struggle to meet their other obligations. If the 1% beyond which assessments cannot be levied is not sufficient, some hastily devised system of deferred payment will be adopted. But meanwhile the timid time depositors, from .whom the state banks have gained most of their deposits—alarmed at the first suggestion that the fund is running low—will have been drawing out their money; and between such withdrawals and the burdensome special assessments, the state bank system will be shaken through and through. Both elements of danger,the strain on the resources of many perfectly solvent banks and the discreditable failure of the guaranty to meet depositors' expectations, could be avoided if payments were continued at the same rate in good times and bad, building. up a large surplus before the crisis and gradually paying off the bonded indebtedness of the fund afterwards. (c) As to the policy of leaving on deposit with the banks the full amount of their assessments, which Mr. Cooke regards as unwise," the only alternative would be to collect the money and then redeposit it. To minimize the risk, the board would 14 See Appendix B below. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .10111d1 Bank Deposit Guaranty in Nebraska 31 undoubtedly divide it among several banks, so perhaps the safest way would be to distribute it all over the state. That is precisely what the present system amounts to. It is difficult to see on what grounds a bank could refuse to pay the Secretary's checks for part or all of its share of thefund, without being closed; since such a procedure would appear to be an act of bankruptcy the same as non-payment of the check of any depositor. Kansas and Oklahoma require the deposit of bonds considerably in excess of the assessments; however these undoubtedly count as assets of their owners, and in this state, in case of failure the assessment is a first lien on all assets. It amounts in either case to taking part of the good assets to pay the guaranty fund, and returning the same amount with whatever more is needed to pay depositors. The fund participates in the loss of depositors when a bank fails, but it would suffer a more severe loss if any bank entrusted with a disproportionate amount of it failed. The maintenance of any such fund is attended by some risk. It could hardly be invested in mortgages or bonds, because it is of prime importance that the money be constantly available for immediate use. This is true, at least, so long as we have the present system of immediate payment—payment as soon as the deficiency of a bank's cash to pay depositors is learned. If the Kansas plan of ultimate payment were adopted, as was urged from the beginning by Dr. Hall, it is possible that our Board could invest the assessments in giltedged bonds, which it could sell in time to meet demands on the fund. The bankers are sceptical as to the safety of a large amount of money administered by the "politicians in the state house," because of the defalcations of several such officials in the past. One advantage of considerable importance in the present method, therefore, is that it reduces the antagonism of the contributors to the fund. The merits of the system of ultimate payment—payment only after the receivership is closed and all possible returns from the failed bank's assets have been secured—from the standpoint of administration of the fund are many. No more money is taken from the fund at any time than is actually needed. The clerical work on the part of not only the Secretary's office, but all the to trouble. Insurance premiums, for that ""Thin is an arrangement that might easily lead not held by the insured, subject is what these assessments are, should be paid over to the insurer, insurance is proving too to all sorts,of claims and processes if the insured happens to think his 24. vol. expensive.' —Q. J. E., https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 32 • Bank Deposit Guaranty in Nebraska state banks, is greatly reduced. Aside from this item, the expense would not be greatly different in either plan if under ultimate payment depositors were allowed interest from time of failure, as they should be. If the fund is becoming nearly depleted, the extra time afforded by the process of liquidation means more assessments coming due to help replenish it. And finally, drains on the fund can be foreseen by all concerned a considerable time in advance, so that provision can be made to take care of them with the least yossible disturbance. A change in Nebraska, then, to the ultimate form of payment, would be another means of strengthening the guaranty system. V. CONCLUSION Conditions in Nebraska seem to be favorable for an impartial trial of state bank deposit guaranty. Upon the State Banking Department, and the state bankers themselves, rests the chief responsibility for its success or failure. These two bodies appear in the main to so thoroughly possess each other's confidence that an honest and earnest effort to raise state banking to a high degree of efficiency is to be expected. It is believed that, having the interest in each other's methods that mutual insurance creates, the bankers will be more alert to detect signs of weakness, and procure investigation by the Secretary in time to avoid the more ruinous failures. The limit to the guaranty fund should be placed considerably higher, and the issuance of negotiable, interest-bearing warrants in case of deficiency seems to me better policy than special assessments. Disposition of the fund's deposit when a bank withdraws from the system should be provided for by law, and, as stated, ultimate payment would be an additional safeguard. Probably it is fortunate that at present only the state bank deposits are guaranteed, giving every depositor the privilege of deciding for himself whether he attaches greatest importance to the national bank prestige, the reputation of any particular bank, or the Depositors' Guaranty Fund. This situation permits the banker, moreover, who is unwilling to pay guaranty assessments, to open a national bank and attract business by his methods rather than his charter. As other states contemplate the passage of guaranty laws, as some are doing now," they will look to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Bank Deposit Guaranty in Nebraska 33 Oklahoma, Nebraska, Kansas and Texas for information as to what they may expect of such a measure, and within a few years the results in these commonwealths will probably be of considerable significance. The mutual or state guaranty of deposits is an undertaking which must be run on a large scale, and conservatively and cautiously managed. The evidence up to this time indicates that in a system of efficiently supervised banks it is feasible and not unfair to the bankers. If that proves to be true, our state is doing pioneer work in a great movement which will spread to other states and to the national banks, facilitating the industry of the country and removing an important source of individual Z. CLARK DICKINSON. distress. Lincoln , University of Nebraska July 11, 1914 Ohio and Mississippi, at least, I am informed by the Nebraska Legislative Reference Bureau and by the State Banking Department. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34 Bank Deposit Guaranty in Nebraska APPENDIX A DIVIDENDS PAID BY STATE BANKS WHICH FAILED FROM 1892 TO 1899, Year of Failure 1896 1894 1893 1897 1893 1896 1895 1896 1896 1896 1894 1899 1893 1896 1894 1898 1896 1892 1893 1897 1895 1891; 1897 1893 1895 1895 1892 1892 1893 1895 1897 1895 1895 1895 1896 1896 1893 1893 1895 1896 1896 1893 1898 1893 1894 1895 1893 1895 1893 1895 1894 1895 1895 1894 1895 1894 1892 1896 1895 1896 1894 NAME OF BANK Alliance, Box Butte Bkg. Co Amherst, Bank of Ansley, Bank of Atkinson, Exchange Bank Bassett, F. & M. Bank Beatrice, Savings Bank Beaver City, Furnas Co. Bk Big Springs, St. Bk Bloomfield, St. Bk Blue Springs, Bk. of Brunswick, State Bk Butte, F. & M. Bk. . Cortland, State Chadron, Bkg. Co Crawford, Bkg. Co Crawford, St. Bk. of Culbertson,HitchcockBkg.Co. Elk Creek, F. & M. Bk Franklin, St. Bk Fullerton, Citizens St Genoa, State Grand Island, Bk. of Corn Havelock, State Hay Springs, Bk of Hebron, Blue Valley Bk Hemingford, Bk. of. Inland, Bk. of Johnson, State Lincoln, Nebr. Savings Bk Lincoln, Savings Bk Lincoln, Merchants Litchfield, People's Milligan, St North Loup, Loup Valley St. Ogallala, Bk. of Ogallala, St. L. & T. Co Omaha, Am. Savings Omaha, McCague Savings. Omaha, Nebr. Savings & Ex Omaha, German Savings Omaha, Midland St O'Neill, Holt Co. Bk Palmyra,Bk.ofC.A.Sweet&Co Plainview, St Plattamouth, Citizens Rising City, Comm 'I Rushville, Bk. of Scotia, Greeley Co. Bk Shubert, Farmers St So. Sioux City, Citizens St. Steele City,Pickering Bkg.Co. Steele City, Bk. of Stratton, Bk. of Stuart, State Bk Trenton, Bk. of Verdigre, Bk. of Wahoo,Bk.ofW.H.Dick inson Wallace, State Bank Wilcox, Bk. of Wymore, Bk. of Weeping Water, Bk. of Capital $5,000 10,000 5,000 35,000 20,000 Assets $8,000 Dep. Ab. 40,000 18,000 10,000 5,000 Liabilities $3,500 298,520.95 42,000 77,000 52,000 13,000 14,000 26,300 7,500 10,000 Percent Ass't on Dividend Stockholders 75 25 None None 55 28 Full Am't 55 61 86 Pfd 65 100 100 None None 26.6 Com'n A little 100,000 258,000 168,000 42 50% 5,000 23,000 6,000 28,000 69,000 24,000 69,000 7,000 85 8% Pfd 46 $6,000 None Gen 'I None 32i Comprom'd 166,000 100,000 46,000 Practically None 10,000 40,000 40,000 100,000 75,000 150,000 100,000 25,000 130,000 166,000 347,000 286,000 123,000 156,000 124,000 347,000 481,000 72,000 13,000 10,000 100 100 13.91 75 661 26 90 100 20,000 42,000 42,000 331 26,000 10,000 35,000 28,000 30,000 28,000 100 14.7 5,000 8,000 40 26,000 5,000 30,000 18,000 113,000 None $25,000 4,000 47,000 102,000 9,000 Yes None No Record None Very small 18 100 None Records do not show Average Dividend About 55'; 1The records of state bank liquidations were not collected by the state banking board until after 1899, as up to that time each receivership was entirely in the hands of the district court This table contains the answers to two sets of questionnaires sent out by the Nebraska Legislative Reference Bureau, first to neighboring banks, and then in the cases where information was obtained from these, to the clerks of the district courts. In many cases the no records appear to have been completely lost, in others they are unintelligible, and in a number no answer was received to the questionnaire. The average dividend, however, establishedofbycases the returns on half the failures, is probably very near the average dividend of all these early insolvent banks. https://fraser.stlouisfed.org S. Federal Reserve Bank of St. Louis • 35 Bank Deposit Guaranty in Nebraska APPENDIX B LOSSES FROM NEBRASKA BANK FAILURES National Banks from 1864 to 1913, State Banks from 1892 to 1913 No. Year • 1886 1891 1892 1898 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1907 Totals • tate Banks Closed No. Nat'l Depotata Yrovecl t,lainis Divalends Banks Closed in State Banks Closed in National Banks Closed from National Banks Closed 1 4 17 8 17 36 32 2 1_ 2 2' 4 3 5 2 1 s 1 1 130 20 $71,997 652,176 197,283 584,555 1,156,888 144,507 35,780 18,829 39,975. 100,894 196,770 16,915 53,591 80,016, 53.344.325 I $80,452 346,840 $82,946 165,018 1,823,837 269,785 377,008 445,338 74,030 127,793 92,634 103,012 9,619 70,724 $3.093.468 $975,368 The net loss to creditors of the insolvent national banks may be found by subtracting the total dividends from the total proved claims, which leaves $2,118,100. The net loss to creditors of insolvent state banks can only be estimated. The average dividends paid by those state banks ( which failed between 1892 and 1899 was apparently about 557 (see Appendix A). The average dividend paid by insolvent state banks since 1899 has been about 61% (see Report of the Secretary of the State Banking Board, 1913, p. xxix). The claims involved in the earlier period were of course much greater than in the later, so that an average dividend of 56% of all claims might be nearer the truth. If this is the case, about $1,872,822 was recovered to the creditors of state banks through liquidation, leaving a net loss of $1,471,503. This, added to the net loss to national bank creditors totals $3,589,603 for all banks during the time when records are available. 1913, pp. 206-9; and Report of Figures taken from Report of the Comptroller of the Currency,' the Secretary of the State Banking Board, 1913, p. xiv. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis APPENDIX C CERTAIN IMPORTANT ITEMS FROM THE COMBINED STATEMENTS OF ALL NATIONAL AND ALL STATE BANKS IN NEBRASKA, 1864 TO 1913, IN THOUSANDS OF DOLLARS' No. Banks uapital ttcplus UndtvaledProtits Loans Deposits3 Total Resources YEAR 1864 1865 1866 1867 1868 1869 1870 1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 1885 1886 1887 1888 /889 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 State Nat'l State I Nat'l State ! Nat'l 5 6 16 54 61 68 114 160 129 159 172 174 223 210 230 294 323 455 637 946 1,197 1,484 1,506 1,733 1,979 2,126 2,129 2,197 1,957 1,783 1,560 1,470 1,427 1.477 1,676 1,772 2,068 2,386 2,599 2.820 3,625 4,226 4,981 5,599 6,485 6,972 7,792 8,319 1 31 58 117 137 95 87 121 88 1-08 96 110 74 160 155 132 164 199 374 557 677 568 631 675 744 944 1,036 980 972 1,044 709 687 513 618 636 731 703 1,027 966 1,159 1,161 1,409 1,477 2,002 2,143 2,206 2,411 2,594 2,563 2,680 • 1 35 2 115 3 200 3 283 4 400 500 • 4 4 500 6 650 9 850 10 905 10 1,025 1,000 10 9 950 • 10 950 10 950 • 10 925 850 10 12 910 • 23 I 1,715 40 I 2,860 63 4,735 75 5,949 88 7,184 103 8,406 104 9,285 119 10,985 513 135 12,555 11,155 139 13,263 13,518 11,257 137 513 134 12,943 504 10,840 10,407 127 12,573 482 11,640 117 447 9,216 113 10,975 414 8,233 7,855 104 10,475 398 393 7,532 102 10,225 100 9,690 405 7,180 412 7,036 110 9,965 116 439 7,259 10,045 124 10,088 479 7,833 501 8,018 137 10,365 147 10,810 515 8,343 10,885 546 ' 159 8,845 584 I 179 9,440 11,608 621 196 12,262 10,322 628 212 13,455 10,905 662 219 12,027 13,200 666 238 12,510 15.445 669 246 16,185 12,827 694 13,833 I 16,240 245 714 241 I 14,455 16,270 825 1,002 1,029 1,006 1,002 877 882 906 940 1,056 1,198 1,285 1,426 1,539 1,756 1,915 2,136 2,106 2,115 2,313 2,582 2,950 3,295 1,281 1,676 1,625 1,544 1,229 938 1,028 1,127 1,311 1,498 1,632 1,808 1,935 2,015 1,983 2,180 2,671 2,694 2,750 2,967 3,219 3,423 3,372 State Nat'l State 11 138 291 509 1,0 70 15 2 1,122 1:7 12 40 4 2,019 2,196 ( 617 5 2,454 2,483 2,897 3,193 2 6 4:7 275 23,522 28,219 23,798 23,253 19,085 14.602 15,405 17,609 21,202 22,438 25,794 32,666 34,530 35,789 41,252 48,880 55,745 55,721 66,021 67,943 67,558 78,270 84,908 1 9,732 12,598 15,433 18,967 22,942 24,563 27,811 33,364 32,846 35,208 28,330 27,555 24,271 20,154 213;927 25,096 28,445 31,716 39,809 44,198 45,231 46,895 54,910 68,277 76,963 75,893 86,756 90,340 95,680 102,655 100,827 17,513 24,891 17,208 18,074 14,200 10,227 13,902 18,225 21,666 25,894 31,330 34,487 36,424 38,732 49,045 56,204 62,995 65,398 71,937 70,454 72,191 80,705 89,283 Nat'l I State 17 337 645 1,207 1,415 1,342 1,192 1,613 2,142 2,378 2,518 2,570 2,660 2,509 2,719 2,968 3,724 5,242 6,113 9,419 9,996 11,317 14,214 17,858 19,120 20,711 26,152 32,589 24,029 28,783 39,878 21,272 32,219 32,049 21,549 17.994 26,764 17,037 20,995 20,292 24,115 25,717 28,133 29,378 31,571 32,917 35,684 36,965 41,554 41,093 46,024 45,193 48,972 47,601 51,855 56,822 62,853 65,009 71,356 73,942 79,914 72,986 81,402 83,369 90,592 87,663 90,460 90,473 • 93,388 96,907 104,175 93,675 114,434 'Statistics concerning national banks taken fr eport of the Comptroller of the Currency, 1913, p. 362; those relating to state banks are from the reports of the Secretary of the S nking Board, 1892 to 1913 inclusive. 2Records of the state bank statements prior tc are not obtainable. The summary for 1890 is given in the 1892 report. The state banking board was not created until 1889. 'Individual deposits, not including due to banks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nat'l 74 525 1,242 2,327 3,216 2,743 2,900 3,502 4,487 5,018 5,321 5,415 5,270 5,281 5,616 6,345 6,940 9,128 12,140 17,921 21,057 25,458 29,675 35,778 39,759 44,926 53,598 51,066 59,568 46,753 48,075 41,544 38,145 44,629 52,149 60,266 68,508 75,803 77,465 83,118 88,620 106,743 120,814 132,909 133,267 151,335 154,955 165,140 173,847 170,587 23 wisixtqaN Ui fliutxtronD n,sodaa 4urogr State! Nat'l Bank Deposit Guaranty in Nebraska 37 Editor's Note Mr. Dickinson, author of the foregoing valuable contribution to Nebraska financial history, now holds a scholarship in economics at Harvard University. Since his departure on September 30, 1914, the following additional information is furnished by Secretary Royse of Nebraska Department of Banking, being two lists-one the list of State Banks newly organized in Nebraska from January 1, 1914 to the present time, with their capital and date of charter; the other, a list of National Banks which have changed to State Banks since January 1, 1914, with the date of such change and capital stock. NEWLY ORGANIZED STATE BANKS IN NEBRASKA FOR 1914. Name of Bank Location Capital Stock Total Date of Charter $20,000.00 35,000.00 100,000.00 15,000.00 10,000.00 10,000.00 60,000.00 10,000.00 35,000.00 16,000.00 20,000.00 10,000.00 40,000.00 20,000.00 15,000.00 15,000.00 German-American Bank Citizens State Bank Security State Bank Farmers State Bank Angora State Bank Farmers State Bank Nebraska State Bank Lakeside State Bank First State Bank Citizens State Bank Farmers State Bank Purdum State Bank Minden State Bank Hoskins State Bank State Bank of Litchfield Farmers State Bank Deshler Superior South Omaha Inman Angora Sunol Beatrice Lakeside Alliance Carroll Clarks Purdum Minden Hoskins Litchfield Ames Jan. 10, Feb. 2, Feb. 16, April 4, April 21, May 9, May 25, May 27, June 1, June 23, June 30, July 10, Aug. 5, Aug. 10, Aug. 20, Aug. 20, 1914 " " " $420,000.00 16 NATIONAL BANKS IN NEBRASKA CONVERTED TO STATE BANKS BETWEEN JANUARY 1, 1914, AND OCTOBER 1, 1914 National Bank Name Atkinson National Bank " " Superior " First " 14 " " " " Id 44 City First 4d 44 46 Total https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis State Bank Name Security State Bank State Bank Nebraska State Bank.... Farmers State Bank Elmwood State Bank Security State Bank State Bank of Nelson._ Security State Bank Security State Bank Farmers State Bank Holdrege State Bank.... Farmers State Bank Citizens State Bank Security State Bank Citizens Sargent State Bank State Bank of Wolbach.. Farmers State Bank 18 Location Capital Stock Date of Charter Atkinson $50,000.00 Jan. 2, 1914 Superior 50,000.00 Feb. 21, " 26,000.00 Feb. 24, " Bloomfield . 15,000.00 Feb. 24, " • Henderson 25,000.00 April 6, " Elmwood 16,000.00 April 27, Lawrence 50,000.00 April 27, Nelson 20,000.00 April 30, Oxford 30,000.00 June 9, Curtis 25,000.00 June 23, Campbell 40,000.00 July 10, Holdrege 30,000.00 July 11, Polk 25,000.00 July 24, Cedar Rapids 30,000.00 July 24, Spalding 25,000.00 July 26, 44 Diller 20,000.00 July 25, Sargent 20,000.00 Aug. 18, Wolbach 25,000.00 Sept. 26, Overton 8520,000.00 38 Bank Deposit Guaranty in Nebraska • Following the enactment of the guaranty of bank deposits law in 1909 bills were introduced in the legislative sessions of 1911 and 1913, incorporating the principle of limiting the number of banks in each town or city to the business needs of the community. H. R. No. 323, introduced in 1911, contained this provision: "Provided, That the state banking board may withhold the issuance of such charter to a bank seeking to engage in business in a town which, in the judgment of the board, does not justify or warrant a new or additional bank." In the session of 1913, S. F. No. 221 and H. R. No. 448, companion bills, provided as follows: "The state banking board, if, upon investigation, it shall be satisfied that the parties requesting said charters are parties of integrity and responsibility, that the place or community is not already adequately supplied with banking facilities and the conditions warrant the establishment of a bark shall, * * * issue the certificate and charter." All three bills were considered as an attempt to arbitrarily check business freedom and were summarily dismissed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 To the Honorable Chairman and Members of the Banks and Banking Committee of the House of Representatives: We, the Committee appointed to make a thorough investigation of all the books and records of the Guarantee Fund Commission, to determine the amount of the deficit and the cause for it, and to determine the value of the assets in failed banks'as nearly as could be obtained by estimates, this being in accordance with the resolution presented to the House of Representatives on January 29, 1929, beg leave to submit the following report and exhibits attached thereto: The report covers 322 trusts divided as follows: Subdivision No. 1: 69 going concerns. Subdivision No. 2: 137 new receiverships. Subdivision No. 3: 46 old receiverships. Subdivision No. 4: 70 sale asset trusts. STATEMENT NO. 1. This statement shows that 273 banks have been closed covering a period from June 30, 1911, to and including, February 5, 1929; showing liabilities to the amount of $77,031,812.37. STATEMENT NO. 2. This is a condensed statement of the 322 trusts under the Guarantee Fund Commission as of February 5, 1929. In statement No. 2, Bills Receivable consists of approximately 20,000 notes. Real Estate consists of 880 pieces of land. 580 pieces of these are farms and 300 of them are city properties. This land is situated in the several counties of Nebraska, fifteen other states and Canada. Other Assets consist chiefly of banking furniture and fixtures. SUBDIVISION NO. 1. STATEMENT NO. 1. This statement is a consolidated statement of the condition of 69 going concerns as of February 5, 1929. Exhibit A is a statement of assets, estimated cash value, liabilities and ultimate losses in the total 69 going concerns as of February 5, 1929. Exhibit B is a list of the ultimate losses to be sustained in each of these 69 going concerns as of February 5, 1929. Exhibit C is a statement of condition of each going concern as of February 5, 1929. SUBDIVISION NO. 2. STATEMENT NO. 1. This is a consolidated statement of 137 new receiverships as of February 5, 1929. Exhibit A is a statement of assets, estimated cash value, liabilities and ultimate loss in 137 new receiverships as of February 5, 1929. Exhibit B shows the ultimate losses and recoveries in 137 new receiverships estimated as of February 5, 1929. Exhibit C is a statement of condition of each new receivership as of February 5, 1929. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 SUBDIVISION NO. 3. STATEMENT NO. 1. This is a consolidated statement of 46 old ceiverships as of February 5, 1929. Exhibit A is a statement of assets, estimated cash value, liabilities and net recoveries in 46 old receiverships as of February 5, 1929. Exhibit B is a statement showing the ultimate losses and recoveries in 46 old receiverships as of February 5, 1929. Exhibit C is a statement of condition of each old receivership as of February 5, 1929. SUBDIVISION NO. 4. STATEMENT NO. 1. This is a consolidated statement of 70 sale assets; these assets being the sale instituted by the receiverships of the several banks and bought in by the Guarantee Fund Commission, thereby constituting a trust, and to be liquidated by the Guarantee Fund Commission. Exhibit A shows the estimated cash value of the assets and the net recoveries in 70 sale asset trusts as of February 5, 1929. Exhibit B is a statement of condition of each sale asset trust as of February 5, 1929. SUMMARY The Cash Deposits of the above four subdivisions amount to $2,294,054.32. Of this amount $2,202,736.32 is on deposit under the control of the Guarantee Fund Commission and draws 2 per cent interest as is paid by correspondent banks to solvent institutions. The sum of $91.318.00 represents cash on hand and items of exchange in going banks operated by the Guarantee Fund Commission. The amounts on deposit with different banks are shown by Exhibit A. The following three statements include the assets, estimated cash value of assets, liabilities, ultimate losses and recoveries in all trusts under the Guarantee Fund Commission as of date of February 5, 1929, also the estimated cash value of assets as classified under date of February 5, 1929; also showing the percentage of assets and liabilities of all failed banks covering the period'from 1-3-11 to 2-5-29 in failed banks, also showing the liabilities paid from the Guarantee Fund Commission and the percentage of liabilities paid from the assets. Under the audit as herein set forth, it would show the ultimate loss to be paid from the Guarantee Fund on this date amounts to $16,003,574.13. The Committee acknowledges the full cooperation and assistance given them by the Secretary of the Guarantee Fund Commission and his staff. Respectfuly submitted, A. D. SPENCER WALTER M. BURR EARL HASSELBALCH Sub-Committee https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 4 STATEMENT OF ASSETS AND LIABILITIES of Failed State Banks Total Assets in 273 banks taken over 1-3-11 to 2-5-29 Total Assets Realized (Book Value) $82,111,695.89 48,532,862.60 Total Assets Not Realized 2-5-29 Total Liabilities in 273 banks taken over 1-3-11 to 2-5-29 Total Liabilities Paid $33,578,833.29 $77,031,812.37 50,599,149.79 Total Liabilities Not Liquidated 2-5-29 $26,432,662.5, Liabilities Paid from Guaranty Fund $16,433,416.22 Liabilities Paid from Assets (after deduction of all expense) 34,165,733.57 Total Liabilities Paid Percentage Liabilities Paid from Guaranty Fund Percentage Liabilities Paid from Assets ESTIMATED CASH VALUE OF ASSETS By Classes as of February 5, 1929 Estimated Class Book Value Cash Value Cash $ 2,294,054.32 $ 2,294,054.32 Bills Receivable 20,698,484.31 5,073,378.38 Overdrafts 134,849.93 15,160.36 Real Estate 6,204,400.71 2,037,465.00 Judgments 2,718,050.62 90,388.49 Other Assets 1,528,993.40 335,558.57 Stockholders Liability 5,955,042.79 583,083.33 Totals $39,533:876.08 $50,599,149.79 32.1 67.4 Percentage low $10,429,088.45 (Note: The above list gives the total book value and estimated cash value of all assets in the hands of the Guaranty Fund Commission divided into the principal classes according to the asset. Percentages showing the relation of the estimated cash value to the face or book value are given for your convenience. These values were not determined on a percentage basis but rather from the individual assets. [The values given are somewhat below the average which we have obtained during the past few years. However, we feel this is necessary as conditions are unstabilized to such an extent that all properties in our hands have certainly depreciated in value.] If remedial banking legislation will stabilize general conditions and such legislation is passed then the ultimate losses to the Guaranty Fund should be somewhat less than the figures show. Your particular attention is called to the item of Stockholders Liability and the small percentage expected to realize in cash. This low figure is occasioned by reason of the constitutional provision preventing a receiver of a bank from maintaining a legal action 5 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis for stockholders liability until all assets of the trust are exhausted. A constitutional amendment correcting this injustice to the creditors of the failed banks would very materially reduce the losses to the Guaranty Fund. Also, other banking legislation might be enacted which would materially lessen the loss to the Depositors' Guaranty Fund as to banks now in the hands of the Commission, and especially those banks yet to be taken over.) 441 Statement of Assets, Estimated Cash Value of Assets, Liabilities, Ultimate Losses and Recoveries in All Trusts under the Guarantee Fund Commission as of February 5, 1929 Total Assets, Cash and Unpaid Stockholders Liability in all trusts $39,533,876.08 Expect to Realize in cash from above $10,429,088.45 (Note: The amount of the estimated cash value given is approximately 26.4 per cent of the book value. However, the estimated cash value was determined from the assets and not by a percentage basis. Also, the estimate given is a net amount to be realized after the deduction of all expense.) Total Liabilities against Guaranty Fund in all trusts $26,432,662.58 Expect to pay from assets $10,429,088.45 Leaving an Ultimate Loss to be paid from the Guaranty Fund of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $16,003,574.13 410 6 SUMMARY EXHIBIT A. DEPOSITORIES OF FUNDS UNDER CONTROL OF THE GUARANTEE FUND COMMISSION as of February 5, 1929. 40 1. State Bank of Omaha: Going Banks Receiverships 2. $468,646.03 210,451.48 Continental State Bank, Lincoln: Going Banks Receiverships $281,103.52 175,587.60 456,691.12 3. Fremont State Bank: Going Banks Receiverships $211,811.26 37,557.55 249,36 4. South Omaha State Bank: Going Banks Receiverships $142,435.26 4,432.56 1•16,s67.s2 5. Nebraska State Bank, Norfolk: Going Banks Receiverships $ 80,015.19 42,897.45 •vallo 122,912.61 6. Farmers Bank, Nebraska City: Going Banks Receiverships $ 51,634.48 4,163.36 55,797.84 7. State Bank of Wayne: Going Banks Receiverships $ 44,497.27 11,041.74 55,539.01 8. State Bank of Hastings: Going Banks Receiverships https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 26,272.31 14,682.55 40,954.86 7 -11M1111 4 4 SUMMARY EXHIBIT A. 9. Nebraska State Bank, Lincoln: Going Banks Receiverships $ 32,317.33 2,352.50 34,669.83 10. 11. Maxwell State Bank: Going Banks 34.007.67 Nebraska State Dank, Grand Island: Going Banks Receiverships $ 23,192.35 9,919.83 33,112.1' 12. McDonald State Bank, North Platte: Receiverships 30.599.56 13. Farmers State Bank, Blair: Receiverships 14. 23,029.47 Bridgeport State Bank: Going Banks Receiverships $ 5,747.58 15,728.45 21,476.03 15. Security State Bank, Norfolk: Going Banks 17,179.31 16. State Bank of Madrid: Going Banks 15,428.24 17. Platte Valley State Bank, Scottsbluff: Receiverships 14,055.76 18. 19. 20. Exchange Bank, Gibbon: Receiverships 13,383.17 Nebraska State Bank, Ohiowa: Receiverships 10,601.11 Farmers State Bank, Ewing: Receiverships 9,346.71 21. State Bank, Dannebrog: Receiverships https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9.055.02 8 • SUMMARY EXHIBIT A. 22. Nebraska State Bank, Valentine: Going Banks Receiverships $ 8,675.81 358.79 9,034.60 23. Chappell State Bank: Receiverships 24. 6.115.97 Chadron State Bank: Receiverships 6.031.1 Miscellaneous National Banks: Going Banks Receiverships $ 11,764.13 7,988.08 19.,752.2I Miscellaneous State Banks: Going Banks Receiverships $ 42,732.89 45,865.56 88,598.45 TOTAL Total Going Banks Total Receiverships $2,202,736.32 $1,497,460.66 705,275.66 $2,202,736.32 Cash on hand and Items of Exchange • Total Shown 2-5-29 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 91,318.00 $2,294,054.32 9 STATEMENT NO. 1. STATEMENT SHOWING NUMBER OF BANKS CLOSED IN STATE OF NEBRASKA AND LIABILITIES OF SAME AS SHOWN BY. BOOKS AT DATE OF SUSPENSION Liabilities No. of Banks None $ None None 1 122,393.06 None 1 118,394.00 None None None 684,107.23 3 4,409,214.14 16. 18 5,185,785.37 6,455,527.04 23 5,156,138.22 25 35 11,705,674.18 29 8,391,367.06 40 10,703,584.90 62 17,187,925.49 16 3,494,089.12 4 802,942.91 Fiscal Year Ending June 30, 1911 Fiscal Year Ending June 30, 1912 Fiscal Year Ending June 30, 1913 Fiscal Year Ending June 30, 1914 Fiscal Year Ending June 30, 1915 Fiscal Year Ending June 30, 1916 Fiscal Year Ending June 30, 1917 Fiscal Year Ending June 30, 1918 Fiscal Year Ending June 30, 1919 Fiscal Year Ending June 30, 1920, Fiscal Year Ending June 30, 1921 Fiscal Year Ending June 30, 1922 Fiscal Year Ending June 30, 1923 Fiscal Year Ending June 30, 1924 Fiscal Year Ending June 30, 1925 Fiscal Year Ending June 30, 1926 Fiscal Year Ending June 30, 1927 Fiscal Year Ending June 30, 1928 July 1, 1928 to January 1, 1929 January 1, 1929 to Febr. 5, 1929 273 Total Additional Claims Established Grand Total https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $74,417,142.72 2,614,669.65 $77,031,812.37 , 10 • STATEMENT NO. 2. CONDENSED STATEMENT—GUARANTEE FUND COMMISSION 322 Trusts February 5, 1929 CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets $ 2,294,054.32 $20,698,484.31 134,849.93 6,204,400.71 2,718,050.62 1,528,993.40 31,284,778.97 869,629.14 308,710.81 1,718,339.95 SUPPLEMENTARY CHARGES: Real Estate Expense $ 418,499.61 Interest Paid 519,130.17 Claims Estab. not Shown on Books... 1,424,047.81 Claims in Dispute not Shown on Books 192,980.27 Loss on Assets 9,506,893.36 12,061,551.22 OPERATING COSTS: General Expense Legal Expense $ CAPITAL IMPAIRMENT 6,820,567.17 $53,639,291.63 LIABILITIES NOT LIQUIDATED:, Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receivers' Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Accounts Payable $ Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $15,082,220.43 11,161,460.57 15,496.21 173,485.37 345,987.77 625,428.28 231,463.26 13,659.67 1,030.65 $26,432,662.5S 1,217,569.63 15,140,725.61 $ 11 880,327.79 351,057.56 1717 STATEMENT NO. 2. Realized Thru Assets Discovered Deferred Credits Stockholders' Liability Settled CAPITAL STOCK SURPLUS I kte•;.• ... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 319,663.43 704,522.76 1,129,282.21 3,384,853.75 7,084,325.00 379,155.06 $53,639,291.63 12 1 SUBDIVISION NO. 1, STATEMENT NO. I CASH CONSOLIDATED STATEMENT OF CONDITION of 69 GOING CONCERNS as of FEBRUARY 5, 1929 $ 1,595,383.57 ASSETS NOT REALIZED: Bills Receivable: $ 2,431,772.83 Class A 3,939,472.78 Class B 2,605,875.48 $ 8,977,121.09 Class C Overdrafts 26,450.46 Real Estate 2,817,465.77 Judgments 453,539.74 Other Assets 571,615.15 ; OPERATING COSTS: Bank Expense Legal Expense 296,591.04 36,655.68 SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estab. not Shown on Books Loss on Assets CAPITAL IMPAIRMENT 111,078.20 18,370.31 304,706.21 664,242.80 12,846,192.21 333,246 7 1,098,397.52 129,594.9S $16,002,815.00 LIABILITIES NOT LIQUIDATED: Payable From Guaranty Fund: Deposits Subject to Check Time Certificates Demand Certificates Savings Accounts Cashiers Checks Other Liabilities Bills Payable Rediscounts Claims in Dispute $ 4,778,091.23 7,475,980.15 33,705.46 488,038.52 77,778.28 159,187.44 98,803.34 11,664.97 2,042.04 SUPPLEMENTARY CREDITS: Interest Received Real Estate Income https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 311,617.77 89,110.01 13 13,012,781.0s 112,510.35 SUBDIVISION No. 1, STATBMENT No. 1 Realized Thru Assets Discovered.... Stockholders Liability Settled Deferred Credits CAPITAL STOCK SURPLUS L._ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 241,253.09 45,953.93 57,590.23 745,525.03 1,857,500.00 274,498.54 $16,002,815.00 SUBDIVISION NO. 1, EXHIBIT A. Statement of Assets, Estimated Cash Value, Liabilities and Ultimate Loss in 69 Going Concerns as of February 5, 1929 Total Assets, Cash and Unpaid Stockholders Liability in $16,253,121.85 69 trusts operated as going concerns 7,235,771.08 Expect to realize in cash from above (Note: The amount of the estimated cash value given is approximately 44 per cent of the book value. However, the estimated cash value was determined from the assets and not by a percentage basis.) Total Liabilities against Guaranty Fund in 69 trusts $13,012,781.08 operated as going concerns 7,235,771.08 Expect to pay from assets Leaving an ultimate loss to be paid from the Guaranty $ 5,777,010.00 Fund of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SUBDIVISION NO. 1, EXHIBIT B. ULTIMATE LOSSES TO BE SUSTAINED IN 69 GOING CONCERNS Estimated as of February 5, 1929 Town Allen Beemer -/ Benkelman / "Big Springs .' Bloomington Boone Bradish Brady I - V Breslau J i Bridgeport ' Broken Bow ' Brownlee Burchard Burton Butte Champion Clarks Crab Orchard Creighton Deweese 41-A, Dixon - -it Dodge -i Fairfield •-•---'`f Fullerton ../y Genoa - ,'Gilead Glenrock Grainton Grant - Greeley Greenwood Eiaigler I 3 Humboldt Humphrey Jackson Johnstown Lamar https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Name of Bank Mien State Bank Beemer State Bank Citizens State Bank American State Bank Farmers State Bank Boone State Bank Farmers State Bank Brady State Bank Breslau State Bank Nebraska State Bank Custer State Bank Btownlee State Bank Bank of I3urchard Burton State Bank Citizens State Bank State Bank of Champion State Bank of Clarks Bank of Crab Orchard The Security Bank State Bank of Deweese Dixon State Bank Dodge State Bank Citizens Bank Farmers State Bank Farmers State Bank State Bank of Gilead Community State Bank Perkins County State Bank Commercial Bank of Grant Greeley State Bank Farmers State Bank State Bank of Haigler State Bank of Humboldt Bank of Ottis & Murphy Bank of Dakota County Citizens Bank Lamar State Bank 16 Loss $ 97,792.00 1,000,000.00 100,000.00 None 37,733.00 10,000.00 18,085.00 25,000.00 55,000.00 56,400.00 72,800.00 5,000.00 None 45,000.00 35,000.00 6,000.00 90,000.00 40,000.00 170,000.00 55,000.00 20,000.00 81,000.00 62,800.00 48,700.00 38,000.00 75,000.00 None 28,300.00 90,000.00 115,000.00 58,300.00 92,700.00 81,800.00 150,700.00 64,000.00 70,000.00 10,000.00 7 SUBDIVISION NO. 1, EXHIBIT B. Laurel Lindsay Litchfield Lyman .\ ladrid Martinsburg Martinsburg Maxwell Mitchell Murphy North Bend Overton Panama Paxton Pierce Plainview Plainview Polk Ponca Ralston Republican City Rohrs Scotia Scribner Shelton St, Edward Stockville Superior Thurston Vesta Wakefield Wolbach https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis State Bank of Laurel Lindsay State Bank State Bank of Litchfield Lyman State Bank Madrid Exchange Bank Martinsburg State Bank Citizens State Bank Maxwell State Bank Mitchell State Bank First State Bank First State Bank Overton State Bank Farmers State Bank Commercial State Bank Pierce State Bank Citizens State Bank 10,000.0,i 75,000.00 20,000.00 68,300.0" 33,700.1)(1 30,000.01, None 47,200.0,, 160,000.00 10,000.00 100,000.00 205,000.00 ( 7,500.00 98,400.Of, 320,000.00 174,000.111, Security State Bank Farmers State Bank Security Bank of Ponca Ralston State Bank Nebraska State Bank Farmers Security State Bank Farmers State Bank Scribner State Bank Meisner State Bank Farmers State Bank Frontier County Bank Citizens State Bank Thurston State Bank Vesta State Bank Security State Bank State Bank of Wolbach 120,000.01) 87,000.00 120,000.0" 75,000.0(1 16,000.00 5,000.00 40,000.00 97,300.00 •-! 159,000.00 55,000.00 63,500.00 125,000.00 -2 50,000.00 I/150,000.00 265,000.00 85,000.00 $5,777,010.00 17 S BDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS February 5, 1929 Allen Beemer Benkelman CASH: $ 59,786.35 $ 58,750.28 $ 19,869.53 ASSETS NOT REALIZED: Bills Receivable: Class A 97,605.08 47,943.52 192,703.60 Class B 161,355.05 37,465.65 67,902.71 Class C 16,587.33 557,081.75 53.976.87 Overdrafts 600.27 2,741.77 498.85 Real Estate 41,810.07 26,196.17 101,036.18 Judgments 2,287.79 250.11 Other Assets 8,008.85 151,668.17 22,107.68 OPERATING COSTS: General Expense 2,177.34 3,858.02 6,845.53 Legal Expense 9.25 30.43 1,046.46 SUPPLEMENTARY CHARGES: Real Estate Expense 137.00 2,921.38 Interest Paid Claims Estab. not on Books ... 560.76 4,245.10 845.36 Loss on Assets 1,415.60 50.00 22,729.53 CAPITAL IMPAIRMENT: $392,370.74 $890,030.86 $492,733.79 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check Time Certificates Demand Certificates Savings Accounts Cashiers Checks Other Liabilities Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Discovered Stockholders Liability Settled Deferred Credits CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $118,560.20 $263,922.97 $128,991.13 233,760.87 519,770.36 297,649.18 32.40 2,000.00 4,990.49 40,043.37 8,650.54 103.15 2,127.20 1,300.95 105.48 599.50 •)1 2,408.57 1,845.81 145.48 80.00 25,000.00 5,338.29 $392,370.74 3,510.59 214.35 3,921.58 1,494.87 137.40 30,000.00 27,842.52 438.41 50,000.00 149.73 $890,030.86 $492,733.79 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS February 5, 1929 ( 1 1 f I CASH ASSETS NOT REALIZED: Bills Receivable Class A Class B Class C Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estb. not on Books Loss on Assets CAPITAL IMPAIRMENT Big Springs Bloomington Boone $ 23,337.64 $ 11,544.11 $ 5,450.85 $.• 21,765.98 $ 8,123.30 $ 1,010.08 10,990.84 51,627.91 36,318.47 12,487.04 6,185.77 15,171.84 1,877.99 8.06 5,440.55 18,433.78 16,441.59 1,515.95 3,529.10 1,765.05 2,254.79 1,862.19 1,008.42 10.20 2,286.77 116.25 1,754.83 583.19 418.21 1,121.00 22.50 6,819.73 383.37 4,120.75 2,020.84 53.49 3,187.51 2,063.21 $125,539.06 $115,672.28 $ 41,901.81 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: $ 29,912.64 $ 52,492.27 $ 9,446.97 Deposits Subject to Check 17,224.70 32,420.46 40,268.33 Time Certificates 4.87 Demand Certificates 5.35 2,623.50 Savings Accounts 11.64 Cashiers Checks 16,646.30 105.88 Other Liabilities Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: 2,750.03 1,654.04 699.52 Interest Received 418.23 22.50 Real Estate Income 834.06 6,846.95 96.37 Realized Thru Assets Discovered 1,200.00 Stockholders Liability Settled . 30,000.00 20,000.00 CAPITAL STOCK 10,000.00 6,928.54 SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $125,539.06 015,672.28 $ 41,901.81 19 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS February 5, 1929. Bradish Brady Breslau CASH: $ 3,810.10 $ 35,243.32 $ 19,018.43 ASSETS NOT REALIZED: Bills Receivable Class A 4,928.34 26,511.09 Class B 24,546.29 60,402.24 Class C 11,726.38 24,750.97 Overdrafts 1,388.86 141.98 Real Estate 5,533.43 17,660.00 25,846.21 Judgments 6,626.46 5,497.32 Other Assets 2,279.23 5,726.90 2,405.01 OPERATING COSTS: General Expense 934.19 3,383.43 2,113.99 Legal Expense 82.75 128.84 11.95 SUPPLEMENTARY CHARGES: Real Estate Expense 1,091.80 277.58 Interest Paid Claims Estb. not on Books 94.99 44.37 2,963.96 Loss on Assets 1,039.88 33,587.36 6.771.19 CAPITAL IMPAIRMENT 4,102.94 735.63 2,423.41 $ 60,467.68 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check Time Certificates Demand Certificates Savings Accounts Cashiers Checks Other Liabilities Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Discovered Stockholders Liability Settled Deferred Credits CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20 12,067.37 33,070.97 2.00 3,877.98 _ $104,228.11 $ 55,192.17 $ 67,621.81 17,851.18 84,647.96 629.97 481.94 1.00 1,258.69 4,427.96 1,126.83 2,053.97 411.72 615.94 616.30 135.43 8179,165.36 81.69 2,688.27 10,000.00 25,000.00 20,000.00 $ 60,467:68 $104,228.11 $179,165.36 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS February 5, 1929. Brownlee Bridgeport Broken Bow $ 20,175.03 $ 5,963.90 $ 15,540.44 CASH ASSETS NOT REALIZED: Bills Receivable Class A 'Class B Class C Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estab. not on Books Loss on Assets CAPITAL IMPAIRMENT 28,461.67 37,824.53 38,816.00 206.01 44,978.60 4,710.39 4,034.25 16,464.79 55,493.81 31,982.49 35,840.14 11,310.60 4,566.23 2,057.33 6,873.56 8,864.24 252.20 4,088.50 635.86 107.85 6,719.39 1,435.95 9,453.00 2,167.10 2,473.07 36.70 3,038.13 454.36 1,308.18 167.06 30,285.15 14,224.12 2,727.53 2,211.66 1,347.85 $207,351.60 $205,456.81 $ 44,489.26 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check ....$ 97,556.47 $ 65,301.39 $ 24,810.33 2,249.05 79,268.37 42,878.60 Time Certificates 700.00 633.71 Demand Certificates 2,172.03 7,985.46 Accounts Savings 6,082.65 Cashiers Checks 6,001.65 Other Liabilities Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: 1,672.57 6,326.92 6,760.85 Interest Received 1,991.33 1,723.93 Real Estate Income Realized Thru Assets Dis57.31 1,360.32 12,196.06 covered Stockholders Liability Settled . Deferred Credits 15,000.00 35,000.00 25,000.00 CAPITAL STOCK 13,402.74 1,165.93 SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $207,351.60 $205,456.81 $ 44,489.26 21 •• r. p r•• • SUBDIVISION NO. 1, EXHIBIT C. .STATEMENT OF CONDITION—GOING CONCERNS February 5, 1929. Burchard Burton Butte CASH $ 3,305.39 $ 4,198.19 $ 2,922.51 ASSETS NOT REALIZED: Bills Receivable Class A 3,461.69 5,910.49 29,727.10 Class B 203.77 4,911.29 38,804.04 Class C 14,277.92 48,842.36 4,684.06 Overdrafts , 20.84 140.30 300.57 Real Estate 12,165.00 27,072.77 Judgments 6,496.97 603.38 Other Assets 422.07 1.536.06 1,734.47 OPERATING COSTS: General Expense 7,531.14 162.81 4,455.32 Legal Expense 928.39 459.25 SUPPLEMENTARY CHARGES: Real Estate Expense 2,414.94 1,706.66 Interest Paid 1,842.01 3.95 Claims Estab. not on Books 2.85 19.81 Loss on Assets 19,948.43 2,151.69 CAPITAL IMPAIRMENT 2,089.72 $ 60,856.41 $ 77,866.50 $116,735.30 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check Time Certificates Demand Certificates Savings Accounts Cashiers Checks Other Liabilities Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Discovered Stockholders Liability Settled . Deferred Credits CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 90.46 $ 39,316.38 $ 39,020.65 23,368.60 52,185.72 84.03 6,927.77 1.92 11,551.33 1,963.98 121.30 10.00 2,821.05 517.90 1,368.62 14,500.00 25.68 25,000.00 6,382.02 10,000.00 4,940.51 64.46 50.00 145.83 15,000.00 $ 60,856.41 $ 77,866.50 $116,735.30 22 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS February 5, 1929. Clarks Crab Orchard Champion $ 7,047.85 $ 57,306.53 $ 8,520.38 CASH ASSETS NOT REALIZED: 11,928.41 40,824.77 6,696.95 Bills Receivable Class A 58,359.15 9,609.55 123,937.94 Class B 9,487.08 22,233.95 5,196.04 Class C 349.78 67.13 5.50 Overdrafts 19,937.84 71,059.93 5,065.00 Real Estate 1,614.88 6,981.45 Judgments 7,691.79 6,969.98 6,929.98 Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estb. not on Books Loss on Assets CAPITAL IMPAIRMENT 2,767.34 131.25 206.80 63.30 509.20 5.00 1,497.15 11.88 5,347.62 7,900.84 1,013.66 1,140.09 1,070.23 $ LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: .$ Deposits Subject to Check Time Certificates Demand Certificates Savings Accounts Cashiers Checks . Other Liabilities Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Discovered Stockholders Liability Settled Deferred Credits CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1,622.71 11.90 43,719.56 $338,931.29 $128,470.01 20,608.98 $ 73,719.41 $ 43,509.32 37,716.50 141,516.88 9,006.88 59,448.12 3,776.80 88.80 234.75 943.48 685.12 6,529.31 4,951.35 1,654.01 2,473.13 1,865.06 490.62 664.18 51.70 5,759.45 7,980.1:1 48.89 50,000.00 25,000.00 33.33 10,000.00 2,364.66 $ 43,719.56 $338,931.29 $128,470.01 23 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS. February 5, 1929. Creighton Deweese Dixon CASH $ 55,618.55 $ 10,280.64 $ 22,488. 76 ASSETS NOT REALIZED: Bills Receivable Class A 137,682.18 7,913.02 10,167.16 Class B 138,023.29 10,788.27 14,522.43 Class C 55,794.41 16,890.77 5,190.62 Overdrafts 335.00 280.24 5.51 1 Real Estate 118,589.60 13,976.14 10,745.00 Judgments 13,677.60 5,972.83 241.85 Other Assets 17,435.48 11,478.06 2,305.20 OPERATING COSTS: General Expense 5,728.08 4,107.39 6,490.01 Legal Expense 68.10 427.46 142.90 SUPPLEMENTARY CHARGES: Real Estate Expense 1,817.73 1.221.61 80.94 Interest Paid 34.15 Claims Estb. not on Books 396.23 7,676.32 58.56 Loss on Assets 5,346.78 20,114.00 17,365.00 CAPITAL IMPAIRMENT • 12,050.72 1,566.42 $550.543.03 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check Time Certificates Demand Certificates Savings Accounts Cashiers Checks Other Liabilities Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Discovered Stockholders Liability Settled . Deferred Credits CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $140,010.89 $ 45,561.81 $ 38,106.87 327,197.14 55,213.65 24,581.95 700.00 20,425.36 2,800.87 714.31 4,835.32 158.00 4,605.82 436.80 9,161.31 1,881.25 2,530.21 846.07 6,262.40 217.00 791.46 1,600.00 1,231.74 272.28 547.95 1.74 20,000.00 40,000.00 4,045.20 $550,543.03 24 $123,177.47 $ 91,404.50 387.30 10,000.00 $123,177.47 $ 91,404.50 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS. February 5, 1929. Fullerton Fairfield Dodge $ 68,174.12 $ 9,882.12 $ 24,732.99 CASH ASSETS NOT REALIZED: 29,507.96 14,590.17 5,456.18 Bills Receivable Class A 11,411.15 40,107.07 '17,309.78 Class B 39,612.30 26,455.12 29,844.57 Class C 4.17 1,930.12 Overdrafts 73,756.19 43,045.87 34,558.74 Real Estate 24,992.47 71.65 901.45 Judgments 2,327.04 9,244.71 53,561.30 Other Assets OPERATING COSTS: 6,755.47 6,595.52 3.822.24 General Expense 360.69 205.00 849.25 Legal Expense SUPPLEMENTARY CHARGES: 2,345.54 4,477.60 1,453.40 Real Estate Expense 16.67 961.28 Interest Paid 88.89 85.13 1,957.02 Claims Estb., not on Books 13,340.03 28,581.30 7,736.38 Loss on Assets 562.90 CAPITAL IMPAIRMENT $287,554.55 $184,869.61 $229,247.39 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: $ 71,113.80 $ 56,690.44 $ 58,892.59 Deposits Subject to Check 94,660.06 74,494.78 167,012.88 Time Certificates Demand Certificates ...... 4,450.02 8,423.06 3,349.70 Savings Accounts 1,066.93 Cashiers Checks 79.59 70.59 Other Liabilities Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: 8,262.97 2,925.55 3,625.90 Interest Received 1,630.59 522.51 2,005.08 Real Estate Income Realized Thru Assets Dis602.71 174.70 1,137.82 covered 156.00 6,829.83 Stockholders Liability Settled Deferred Credits CAPITAL STOCK 50,000.00 40,000.00 25,000.00 SURPLUS 2,772.10 15,721.35 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $287,554.55 $184,869.61 $229,247.39 25 11••• SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS. February 5, 1929. Genoa Gilead Glenrock $ 8,725.61 $ CASH 152.18 $ 105.12 ASSETS NOT REALIZED: Bills Receivable Class A 26,082.17 17,388.42 41,234.02 Class B 38,138.53 70,493.48 Class C 14,466.20 53,862.46 Overdrafts 116.17 851.10 6.28 Real Estate 24,775.97 4,800.00 41,375.96 Judgments 4,783.07 335.00 Other Assets 3,467.66 6,320.97 58.58 OPERATING COSTS: General Expense 3,317.84 72.50 Legal Expense 227.71 3.81 SUPPLEMENTARY CHARGES: Real Estate Expense 757.32 Interest Paid 104.10 Claims Estb. not on Books 697.74 148.09 Loss on Assets 10,962.57 CAPITA L IMPAIRMENT 2,963.80 $136,518.06 $217,253.97 $ 23,021.90 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check Time Certificates Demand Certificates Savings Accounts Cashiers Checks Other Liabilities Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Discovered Stockholders Liability Settled Deferred Credits CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 41,769.05 $ 57,224.93 $ 6,348.01 66,561.89 127,899.87 5,600.00 3,479.17 533.04 8,650.00 1,557.62 589.69 602.53 104.04 18.85 25,000.00 382.73 20,000.00 10,000.00 452.51 $136,518.06 $217,253.97 $ 23,021.90 26 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS. February 5, 1929. Greeley Grant Grainton $ 5,650.87 $ 47,791.92 $ 14,733.06 CASH ASSETS NOT REALIZED: 32,554.41 33,169.55 11,498.66 Bills Receivable Class A 98,519.02 124,471.36 8,781.81 Class B 62,619.05 78,770.06 2,334.72 Class C 35.56 2.75 Overdrafts 52,210.81 71,658.63 38,277.33 Real Estate 23,801.74 163.10 2,032.36 Judgments 2,874.94 5,359.85 1,972.76 Other Assets OPERATING COSTS: 10,372.70 4,659.71 189.76 General Expense 84.15 • 252.07 12.40 Legal Expense SUPPLEMENTARY CHARGES: 3,036.74 2,553.82 Real Estate Expense 3,786.90 Interest Paid 41,884.60 4,479.84 Claims Estb. not on Books .... 22,458.37 9,296.05 112.10 Loss on Assets 5,320.89 CAPITAL IMPAIRMENT $. 75,342.64 $425,354.36 $327,087.45 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: $ 25,710.25 $152,515.75 $ 47,168.42 Deposits Subject to Cheek 197,317.94 29,938.03 122,314.20 Time Certificates 231.04 1,179.98 Demand Certificates Skvings Accounts 2,748.96 Cashiers Checks 9,258.77 1,169.75, Other Liabilities 8,243.00 Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: 6,741.73 14,391.65 174.06 Interest Received 2,424.56 2,875.60 Real Estate Income Realized Thru Assets Dis25,560.62 2,447.91 covered Stockholders Liability Settled 45,546.77 2,069.52 Deferred Credits 60,000.00 50,000.00 CAPITAL STOCK 10,000.00 5,102.80 SURPLUS 2,653.14 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 75,342.64 $425,354.36 $327,087.45 27 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS. February 5, 1929. Greenwood Haigler Humboldt $ 18,662.16 $ 31,856.84 $ 62,600.39 CASH ASSETS NOT REALIZED: Bills Receivable Class A 23,534.96 36,775.11 15,052.73 Class B 37,582.04 53,167.79 104,533.03 Class C 27,499.82 , 52,469.4) 36,724.86 Overdrafts 208.32 92.12 Real Estate 11,439.61 33,940.06 60,671.50 Judgments 5,337.81 26,263.34 Other Assets 2,384.21 3,203.17 18,227.14 OPERATING COSTS: General Expense 4,682.56 4,031.73 1,358.81 Legal Expense 1,049.38 756.15 SUPPLEMENTARY CHARGES: Real Estate Expense 242.54 1,625.67 Interest Paid 5.27 Claims Estb. not on Books 274.47 561.09 6,501.57 Loss on Assets 16,453.58 23,527.5g 6.10 CAPITAL IMPAIRMENT $149,356.73 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check Time Certificates Demand Certificates Savings Accounts Cashiers Checks Other Liabilities Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Discovered Stockholders Liability Settled Deferred Credits CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $269,084.22 $304,862.07 $ 46,933.12 $108,726.79 82,175.41 106,730.68 1,202.92 $108,763.44 126,836-65 21.19 28 4.46 215.93 473.97 19,163.80 7.50 2,547.46 520.95 535.79 87.00 8,239.80 743.60 261.01 783.65 6,693.60 20.00 15,000.00 1,914.32 30,000.00 1,163.69 $149,356.73 $269,084.22 - 50,000.00 3,536.29 $304,862.07 9 1 9 8 ( 1 7 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS. February 5, 1929. Johnstown Jackson Humphrey ( CASH $ 50,119.73 $ 34,610.85 $ 8,578.76 ; ASSETS NOT REALIZED: 57,392.54 22,783.13 53,196.01 Bills Receivable Class A 26,288.47 44,012.40 103;818.69 Class B 12,243.43 26,624.02 15,046.25 Class C 2,212.59 109.67 31.92 Overdrafts 37,791.19 64,064.01 186,568.86 Real Estate 306.20 1,129.56 1,096.81 Judgments 2,737.98 2,449.86 4.528.49 Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estb. not on Books Loss on Assets CAPITAL IMPAIRMENT ; , f 6,1341.97 827.65 3,502.76 536.65 4,372.61 410.50 7,498.15 2,104.38 79.25 21.15 625.82 704.62 317.53 13,710.09 910.50 458.00 1,422.84 $444,312.65 $204,653.51 $154,919.73 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: $ 63,662.69 $ 54,730.94 $ 46,498.21 Deposits Subject to Check 76,966.33 114,751.10 313,065.39 Time Certificates 452.37 Demand Certificates 4,021.14 '2,144.39 Savings Accounts 2,476.09 1,459.59 . 626.51 Cashiers Checks 4,731.00 21.15 ;..Other Liabilities 8,909.63 Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: 1,915.8:, 4.10", 8,817.87 Interest Received Air, T,0 1 73,896.04 Real Estate Income Realized Thru A s s e t s Dis107.3s 1,-;11 .i 784.31 covered 30.00 Stockholders Liability Settled Deferred Credits 10,000.0,, 20,000.00 CAPITAL STOCK 50,000.00 SURPLUS .. 1,091.17 4,529.35 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $414,312.65 $204,653.51 $154,919.73 29 p. SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS. February 5, 1929. Lamar Lindsay Laurel CASH $ 4,535.85 $ 23,753.17 $ 9,856.71 ASSETS NOT REALIZED: Bills Receivable Class A 31,459.96 20,676.40 6,041.07 Class B 23,854.85 32,576.22 11,366.65 Class C 22,120.36 10,782.91 21,382.33 Overdrafts 71.92 385.45 63.75 Real Estate 88,496.69 18,450.00 6,400.00 Judgments 3209.42 18,410.86 8,390.53 Other Assets 233.69 3,593.50 3,826.50 OPERATING COSTS: General Expense 2,746.06 5,891.81 5,261.05 Legal Expense 107.00 556.20 1,630.38 SUPPLEMENTARY CHARGES: Real Estate Expense 602.33 5,012.17 99.32 Interest Paid Claims Estb. not on Books 142.02 Loss on Assets 12,365.10 9,200.03 CAPITAL IMPAIRMENT 2,443.02 2,395.72 7,116.71 $ 96,434.82 $104,531.49 $224,541.40 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check $ 36,164.77 $ 39,066.31 $ 58,454.46 Time Certificates 28,681.02 114,345.33 12,703.48 Demand Certificates 356.35 Savings Accounts 917.60 2,328.47 Cashiers Checks 959.40 Other Liabilities .64 Bills Payable 2,908.46 Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: Interest Received 1,911.58 12,394.07 7,166.60 Real Estate Income 119.75 76.00 6,793.85 Realized Thru Assets Discovered 649.84 198.42 95.70 Stockholders Liability Settled 40.00 14,052.62 Deferred Credits 122.99 CAPITAL STOCK 25,000.00 25,000.00 35,000.00 SULPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 96,434.82 $104,531.49 $224,541.40 30 CA AS ay 1.71 1.96 1.85 1.36 1.45 .69 .86 .50 .81 .20 .17 02 10 72 40 16 13 15 17 9• SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION-GOING CONCERNS. February 5, 1929. Madrid Lyman Litchfield CASH . $ 8,735.95 $ 20,497.87 $ 18,133.40 ASSETS NOT REALIZED: 71,732.91 17,624.55 19,679.02 Bills Receivable Class A 27,212.56 64,100.80 15,109.26 Class B 38,534.45 41,340.49 2,249.69 Class C 134.58 3,100.16 62.54 Overdrafts Real Estate 4,560.78 44,300.00 5,426.54 1,549.08 Judgments 169.16 519.18 Other Assets 5,217.39 3,446.85 OPERATING COSTS: 4,096.28 General Expense 3,775.05 1,028.89 379.22 Legal Expense 659.59 1.10 SUPPLEMENTARY CHARGES: 132.87 Real Estate Expense 715.82 142.50 Interest Paid 458.36 Claims Estb. not on Books . 17,671.17 444.73 11,291.08 Loss on Assets 291.31 1,474.79 CAPITAL IMPAIRMENT 1,011.15 2,637.92 $ 99,482.40 $182,115.21 $178,051.41 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check $ 27,173.94 $ 78,028.71 $72,418.63 68,221.70 Time Certificates 33,846.01 32,521.84 Demand Certificates 1,600.00 2,906.04 Savings Accounts ,6,258.04 107.11 Cashiers Checks 5,594.54 24.53 Other Liabilities 6,904.78 21.93 Bills Payable 377.31 19,497.96 Rediscounts 3,000.00 -5,246.97 Claims in Dispute SUPPLEMENTARY CREDITS: Interest Received 4,969.82 1,806.51 76.64 Real Estate Income 79.50 781.31 156.48 Realized Thru Assets Discovered 17,655.39 926.36 77.99 Stockholders Liability Settled Deferred Credits CAPITAL STOCK 25,000.00 15,000.00 25,000.00 SURPLUS 4,350.98 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 99,482.40 $182,115.21 $178,051.41 31 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS. February 5, 1929. State Citizens Martinsburg Martinsburg Maxwell CASH $ 19,862.82 $ 21,031.43 $ 56,695.3k A ASSETS NOT REALIZED: Bills Receivable Class A 7,224.19 13,427.33 14,57813" Class B 6,206.94 42,371.71 17,546.67 Class C 14,421.37 30,387.4t 14,371.70 Overdrafts Real Estate 25,444.33 19,742.40 5,193.92 Judgments 3,920.15 815.97 Other Assets 21,270.78 1,732.50 6,344 OPERATING COSTS: General Expense 2,289.25 4,244.5 1,735.42 Legal Expense 37.28 71.45 56.7 SUPPLEMENTARY CHARGES: Real Estate Expense 875.42 504.2 257.56 Interest Paid Claims Estb. not on Books 1,789.92 101.35 218.67 Loss on Assets 2,488.51 6,195.00. CAPITAL IMPAIRMENT ...... 2,058.80 109.88 $107,889.76 $ 76,285.30 $181,449.06 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check $ 27,729.09 $ 24,534.54 $110,408.08 Time Certificates 52,152.13 26,041.41 36,888.78' Demand Certificates 46.00 Savings Accounts 2,946.81 405.42 6,916.98 Cashiers Checks 33.16 Other Liabilities 27.88 1.20 Bills Payable Rediscounts Claims in Dispute 105.24 SUPPLEMENTARY CREDITS: Interest Received 1,863.33 3,687.22 1,585.70 Real Estate Income 827.96 270.00 Realized Thru Assets Discovered 2,091.32 155.84 43.70 Stockholders Liability Settled 100.00 2,600.00 300.00 Deferred Credits 1.50 CAPITAL STOCK: 20,000.00 15,000.00 25,000.00 SURPLUS: 3,860.87 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $107,889.76 $ 76,285.30 $181.449.06 32 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION-GOING CONCERNS February 5, 1929. ell 395.34 i7 3.93 L.71 8 '.47 4 .40 44.25 14,50 56 70 21 8.67 5.DO 9. 38 - 9. 16 I 3.0 3.7 7 00 70 (g) 59 )0 CASH: ASSETS NOT REALIZED: Bills Receivable, Class A Class B Class C Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense S UPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estb. not on Books Loss on Assets CAPITAL IMPAIRMENT Murphy $ 8,801.76 65,821.86 194,614.00 58,308.13 2,455.37 70,280.14 7,106.72 6,939.42 5,881.12 5.40 2,500.00 30 2:28768 8:23 2 133,707.91 48,796.78 40,752.47 7,790.45 1,848.35 3,743.32 462.05 7,858.81 4,395.51 3,402.98 380.72 83.60 2,611.93 8.30 130.33 50.58 7,068.47 2,925.23 1,022.57 17.67 30.38 32,928.01 2,583.46 $449,630.74 $50,986.75 $358,681.92 $186,570.77 187,261.88 ,3,812.25 20,652.59 $15,925.12 11,836.72 300.00 2,248.27 $122,953.29 200,784.84 3.03 900.00 9.91 45,390.61 19 8168 :7 039:2.; 2,342.39 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check Time Certificates Demand Certificates Savings Accounts Cashiers Checks Other Liabilities Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Discovered Stockholders Liability Settled Deferred Credits CAPITAL STOOK: SURPLUS: 16 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis North Bend $ 13,441.59 Mitchell $ 39,690.82 33 I 0'° 3,316.17 65.00 295.47 1,100.00 9,026.98 599.10 37,500.00 4,180.93 15,000.00 25,000.00 $449,630.74 $50,986.75 $358,681.92 5,268.09 4,172.70 208.50 307.80 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS February 5, 1929. CASH: ASSETS NOT REALIZED: Bills Receivable, Class A Class B Class C Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estb. not on Books Loss on Assets CAPITAL IMPAIRMENT: Overton $ 34,804.44 189,016.47 255,548.70 81,078.58 167.45 72,701.99 988.04 8,653.47 500.00 5,248.43 3,556.60 17,688.04 45,703.14 82,130.03 19,472.33 2,038.33 1,583.65 38,405.70 7,559.42 12,136.70 6,655.91 544.71 2,460.75 450.35 4,689.58 182.60 2,816.69 717.69 32,274.03 10,600.19 16.25 695.92 1,157.20 2,214.81 41.17 375.00 7,097.96 $695,850.67 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: $176,167.88 Deposits Subject to Check 416,405.67 Time Certificates Demand Certificates Savings Accounts 4,970.49 Cashiers Checks 431.73 Other Liabilities Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: 8,197.67 Interest Received 1,688.20 Real Estate Income 36,778.98 Realized Thru Assets Discovered Stockholders Liability Settled Deferred Credits 50,000.00 CAPITAL STOCK 1,210.05 SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $695,850.67 34 Panama Paxton $15,177.95 $ 4,316.69 $53,075.45 $222,540.94 $24,882.19 $109,814.92 9,502.02 46,392.18 I 800.00 -) 18,490.11 f " 17.39 1 30.65 45 , 877.83 950.83 562.58 1,300.00 15,000.00 3,103.32 2,252.45 1,384.01 250.00 40,000.00 5.91 $53,075.45 $222,540.94 / SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS February 5, 1929. Citizens Security Pierce Plainview Plainview CASH $ 31,637.75 $ 54,180.11 $ 13,033.03 ASSETS NOT REALIZED: Bills Receivable, Class A 17,264.91 51,392.50 25,101.54 Class B 77,884.78 230,673.06 87,424.98 Class C 238,731.94 15,805.37 57,000.63 Overdrafts 1,614.97 479.91 Real Estate 60,621.49 110,321.71 47,710.65 Judgments 1,798.21 19,848.13 8,457.53 Other Assets 1,705.38 3,737.22 4,367.95 OPERATING COSTS: General Expense 7,346.04 7,252.08 6,319.28 Legal Expense 1,871.71 1,983.14 1,232.54 SUPPLEMENTARY CHARGES: Real Estate Expense 1,869.06 9,072.93 7,997.79 Interest Paid 12.92 641.56 1,559.53 Claims Estb. not on Books 81,698.90 127.57 14.00 Loss on Assets 20,442.16 12,024.98 10,426.06 CAPITAL IMPAIRMENT $544,500.22 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check $114,331.76 Time Certificates 250,33(7.81 Demand Certificates 10,593.18 Savings Accounts 19,620.39 Cashiers Checks 4,955.79 Other Liabilities 48,496.16 Bills Payable 5,075.18 Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: Interest Received 3,719.55 Real Estate Income 1,184.46 Realized Thru Assets Discovered 37,608.91 Stockholders Liability Settled Deferred Credits 620.15 CAPITAL STOCK 25,000.00 SURPLUS 22,956.88 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $544,500.22 35 $517,540.27 $270,645.51 $153,516.45 $ 50,555.74 280,791.00 163,247.56 2,806.33 7,510.90 282.33 14,273.67 3,191.04 591.13 6,023.29 3,823.09 2,347.31 50.00 553.87 50,000.00 9,835.70 3,696.27 3,525.82 162.54 143.92 25,000.00 6,257.82 $517,540.27 $270,645.51 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERN February 5, 1929. Ralston Ponca Polk $ 5,868.60 $ 20,814.27 $ 15,955.40 CASH ASSETS NOT REALIZED: Bills Receivable, Class A Class B Class C Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estb. not on Books Loss on Assets CAPITAL IMPAIRMENT 32,824.35 68,555.04 32,578.82 50.82 66,088.35 1,560.50 4,655.56 14,596.93 183,742.92 38,887.06 106,335.28 34,780.51 4,097.63 53,822.82 66,612.41 8,243.12 551.12 66,754.95 210.00 28,667.61 1,518.71 14.73 4,546.78 328.19 993.99 8.20 108.00 5,179.62 68.19 8,504.16 8,138.98 1,578.75 16,772.99 9,472.49 2,870.73 $230,466.62 $431,660.93 $254,231.0. D: LIQUIDATE NOT S LIABILITIE Payable from Guaranty Fund: $ 39,029.23 $ 87,512.83 $101,459.10 Deposits Subject to Check 60,566.66 104,853.99 216,220.96 Time Certificates 450.00 Certificates Demand 59,332.36 10,838.96 Savings Accounts 657.82 3,885.99 1,927.00 Cashiers Checks 11,275.26 58.54 Other Liabilities 16,675.06 Bills Payable 3,400.00 Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: 453.03 1,017.68 7,401.60 Interest Received 191.13 4,584.93 157.50 Real Estate Income 12,655.11 2,608.73 2,786.35 Realized Thru Assets Discovered 70.00 Stockholders Liability Settled 7,179.34 Deferred Credits '15,000.00 65,000.00 25,000.00 CAPITAL STOCK 3,915.83 46,276.34 3,917.26 SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $230,466.62 36 $431,660.93 $254,231.07 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS February 5, 1929. Republican City Rohrs Scotia $ 2,613.84 $ 54,634.46 $ 6,217.79 CASH ASSETS NOT REALIZED: Bills Receivable, Class A Class B Class C Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estb. not on Books.. Loss on Assets CAPITAL IMPAIRMENT 7,688.30 13,745.24 13,780.30 7.26 10,958.15 1,057.25 4,159.15 15,767.04 14,464.15 2,918.26 1,024.44 6,800.00 12,035.44 55,057.1 22,210.75 270.27 5,000.00 1,697.21 5,641.06 1,840.39 6.60 3,414.06 .80 2,484.21 1.60 224.27 65.51 241.31 31.12 5,516.95 2,395.34 18.56 3,342.25 1,783.87 $62,059.65 $100,835.61 $116,219.12 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check $ 23,952.34 $ 30,949.40 $ 24,491.34 Time Certificates 16,131.41 59,881.77 55,023.48 Demand Certificates 21.25 Savings Accounts ?, A 4,998.75 Cashiers Checks 1,451.06 288.1(1 Other Liabilities 2,029.67 Bills Payable 3,500.54 Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: Interest Received 282.46 2,351.23 1,147.56 Real Estate Income 238.30 323.75 Realized Thru Assets Discovered 4.08 120.47 4,860.14 Stockholders Liability Settled Deferred Credits CAPITAL STOCK 20,000.00 10,000.00 15,000.00 SURPLUS 2,067.28 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $62,059.65 $100,835.61 37 $116,219.12 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS February 5, 1929. CASH ASSETS NOT REALIZED: Bills Receivable, Class A Class B Class C Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estb. not on Books Loss on Assets CAPITAL IMPAIRMENT Scribner St. Edward Shelton $102,197.03 $ 27,021.37 $ 7,024.75 48,071.00 9,564.71 35,961.74 23.34 127,991.82 19,701.28 16,148.65 17,619.47 100,881.49 32,395.66 3.17 44,192.07 65,886.47 8,612.44 79,358.87 57,092.84 2,952.99 380.44 44,224.66 2,888.25 4,501.66 6,979.62 1,185.84 12,745.40 1,260.55 4,679.76 560.67 3,226.96 4,667.09 2,455.32 30.20 28,288.04 13,046.48 652.50 541.28 35,177.84 5,411.30 12,659.13 2,721.25 $406,771.11 $359,105.22 $225,109.12 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check .... $ 60,873.89 $ 90,588.28 $ 72,048.65 234,128.37 192,551.11 113,105.57 Time Certificates 100.00 2,075.00 Demand Certificates 5,402.70 1,748.65 10,812.75 Savings Accounts 638.07 1.00 15.59 Cashiers Checks 3,849.70 131.95 120.06 Other Liabilities Bills Payable Rediscounts 1,500.00 Claims in Dispute SUPPLEMENTARY CREDITS: 16,192.60 22,220.14 4,042.62 Interest Received 2,452.19 2,521.92 788.00 Real Estate Income 1,513.09 293.48 4,679.57 Realized Thru Assets Discovered 350.00 Stockholders Liability Settled . Deferred Credits CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 40,000.00 41,270.50 40,000.00 25,000.00 $406,771.11 $359,105.22 $225,109.12 38 JIM SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS February 5, 1929. Stockville Superior Thurston $ 9,844.23 $ 31,099.90 $ 14,024.49 CASH ASSETS ,NOT REALIZED: Bills Receivable, Class A Class B Class C Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid " Claims Estb. not on Books Loss on Assets CAPITAL IMPAIRMENT 12,172.19 21,753.73 15,164.14 272.19 6,862.62 8,521.02 720.67 196,440.82 137,059.37 61,765.44 340.90 49,500.00 2,734.08 7,383.50 39,982.86 1,800.07 568.99 3,237.97 206.75 923.10 1.20 5,161.01 495.78 367.70 61.32 2,616.57 1,406.81 255.00 32,165.15 26,739.83 180.41 16,661.50 4,232.98 2,959.24 18,417.84 $112,950.17 $514,049.46 $107,101.74 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Subject to Check $ 39,566.08 $224,007.72 $ 35,423.31 Time Certificates 59,004.27 65,625.32 46,830.22 Demand Certificates 81.31 3,404.92 Savings Accounts 97,618.97 320.49 Cashiers Checks 12,590.84 Other Liabilities 2.30 31,371.99 24.00 Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: Interest Received 2,261.94 1,650.16 1,021.65 Real Estate Income 38.00 1,075.78 4,192.16 Realized Thru Assets Discovered 1,996.27 22,021.87 523.70 Stockholders Liability Settled.. Deferred Credits CAPITAL STOCK 10,000.00 50,000.00 15,000.00 SURPLUS 8,086.81 361.29 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $112,950.17 $614,049.46 $107,101.74 39 SUBDIVISION NO. 1, EXHIBIT C. STATEMENT OF CONDITION—GOING CONCERNS February 5, 1929. CASH ASSETS NOT REALIZED: Bills Receivable, Class A Class B Class C Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estb. not on Books Loss on Assets CAPITAL IMPAIRMENT $ Vesta 2,824.44 Wolbach Wakefield $ 46,779.73 $ 13,690.79 7,344.05 27,810.98 23,039.73 163.39 32,566.86 2,986.72 530.81 24,152.50 193,245.01 61,605.16 73,499.13 5,154.11 16,318.60 49,395.85 33,699.55 9,083.80 79,968.29 10,648.07 624.33 6,574.16 1,183.95 10,325.01 1,331.36 9,224.55 190.85 2,664.09 858.49 2,112.87 435.06 55.20 32,025.66 6,535.84 3,695.78 13.41 23,159.00 10,353.43 16,226.67 1,374.31 $126,148.65 $464,246.76 $253,076.18 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: $ 37,054.84 $141,287.31 $ 28,111.34 Deposits Subject to Check 55,079.57 184,108.94 262,734.32 Time Certificates 14.52 Demand Certificates 83.13 10,329.18 Savings Accounts 887.58 Cashiers Checks 55.20 Other Liabilities Bills Payable Rediscounts Claims in Dispute SUPPLEMENTARY CREDITS: 5,081.20 16,437.08 13,530.16 Interest Received 1,916.18 3,256.39 5,338.43 Real Estate Income 55.20 1,407.13 1,889.66 Realized Thru Assets Discovered 609.73 140.00 Stockholders Liability Settled . Deferred Credits 25,000.00 20,000.00 25,000.00 CAPITAL STOCK 4,064.50 SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $126,148.65 40 $464,246.76 $253,076.18 SUBDIVISION NO. 2, STATEMENT NO. 1. CONSOLIDATED STATEMENT OF 137 NEW RECEIVER SHIPS February, 5, 1929 CASH $ ASSETS NOT REALIZED: Bills Receivable • $ 7,913,777.36 Overdrafts 65,941.13 Furniture and Fixtures 121,034.54 Real Estate 2,665,820.83 Judgements 904,740.08 Other Assets 260,049.49 Acquired and Discovered: Bills Receivable 188,138.96 Real Estate 318,007.56 Judgments 432,579.91 Chattels 374,215.71 OPERATING COST: General Expense 368,286.73 Legal Expense 176,830.39 SUPPLEMENTARY CHARGES: Real Estate Expense 238,555.72 Interest Paid 378,040.00 Claims Established not shown on Books 750,868.46 Claims in Dispute not on Books 192,980.27 Loss on Assets 7,257,609.88 CAPITAL IMPAIRMENT 650,968.51 13,244,305.57 545,117.12 8,818,054.33 4,591,529.22 $27,849,974.75 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Accounts Payable Depositors Guaranty Fund SUPP LEMENTARY CREDITS: Interest Received Real Estate Income https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2,228,626.79' 11,153,185.57 ' 13,496.21 14,297.93- 13,409,606.50 343,945.73 283,012.61 125,787.98 1,994.70 385.00 755,126.02 8,370,500.19 329,996.86 187,090.48 41 SUBDIVISION NO. 2, STATEMENT NO. 1. Realized Thru Assets Discovered ..... Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS 78,410.34 525,689.02 558,133.16 1,679,319.86 3,558,700.00 76,722.18 $27,849,974.75 SUBDIVISION NO. 2, EXHIBIT A. STATEMENT OF ASSETS, ESTIMATED CASH VALUE, LIABILITIES AND ULTIMATE LOSS IN 137 NEW RECEIVERSHIPS AS OF FEBRUARY 5, 1929 Total Assets, Cash and Unpaid Stockholders Liability in $16,895,840.92 137 New Receiverships 2,859,528.63 Expect to realize in cash from above (Note: The amount of the estimated cash value given is approximately 17 per cent of the book value. However, the estimated cash value was determined from the assets and not by a percentage basis.) Total Liabilities against Guaranty Fund in 137 New 13,409,606.50 Receiverships 2,859,528.63 Expect to pay from assets Leaving an ultimate loss to be paid" from the Guaranty $10,550,077.87 Fund of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 42 SUBDIVISION NO. 2, EXHIBIT B. ULTIMATE LOSSES AND RECOVERIES IN 137 NEW RECEIVERSHIPS Estimated as of February 5, 1929 Town Adams j Altona Ames Angora Angus Ansley Ansley Bartley Bassett Bazile Mills Belden Belgrade Bennington Bennington Beverly' Blair Bloomfield ' Boelus Brayton Name of Bank Farmers State Bank Farmers State Bank Farmers State Bank Angora State Bank Bank of Angus Farmers State Bank State Bank of Ansley Farmers State Bank State Bank of Bassett First State Bank Farmers State Bank Bank of Belgrade Bennington State Bank Mangold & Glandt Bank Beverly State Bank State Bank Citizens State Bank Farmers State Bank Brayton State Bank Bridgeport Bridgeport Bank Broadwater • Broadwater Bank Brownville Brownville State Bank Brunswick ' Farmers State Bank Bushnell Farmers State Bank Carroll Citizens State Bank Cedar Rapids ...3. S. Hadley Company Chadron Citizens State Bank Clearwater State Bank of Clearwater.... Clinton Clinton State Bank Cornlea 7 Cornlea State Bank Cotesfield ' Farmers State Bank Craig • • .;......Farmers State Bank Crawford Farmers Bank Crofton Farmers State Bank Crookston Bank of Crookston Culbertson Farmers State Bank Dannebrog Dannebrog State Bank Dannebrog First State Bank Dix ............Farmers State Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 43 Loss None Recovery $ 4,273.47 None 1,000.00 9,000.00 91.44 170,495.77 144,748.24 8,000.00 80,918.34 5,785.50 114,786.70 101,390.46 82,780.40 86,741.34 5,946.1N 234,643.72 40,000.00 62,360.02 4,910.22 300,174.51 5,000.00 4,500.00 77,649.21 None None 750.00 207,174.32 94,541.26 156,736.56 14,300.00 122,980.33 3,655.78 1,000.00 5,000.00 268,803.44 None None 6,300.00 202,931.74 238,799.96 4,600.00 --wve.1111111M1 SUBDIVISION NO. 2, EXHIBIT B. Town Loss Name of Bank Farmers State Bank Dixon Commercial Exchange Bank. Doniphan Dunbar State Bank Dunbar Farmers State Bank Eagle Security State Bank Eddyville Farmers State Bank Elba Elgin State Bank Elgin Enola State Bank Enola Farmers State Bank Ericson Ewing State Bank Ewing Pioneer Bank Ewing Farmers & Merchants Bank.. Fairfield Citizens State Bank Geneva V Commercial Bank Gibbon Citizens Bank of Giliner Giltner Farmers & Merchants Bank.. Gretna Nebraska State Bank Harvard Union State Bank Harvard Bank of Commerce Hastings .....Farmers State Bank Hazard . Citizens State Bank Holdrege Hooper ..........Dodge County Bank Jackson State Bank Jackson Farmers & Merchants Bank.. Kennard Lakeside State Bank Lakeside Lorenzo State Bank Lorenzo Security State Bank Lynch Citizens State Bank Lyons Citizens State Bank McCook Security State Bank McGrew Macy State Bank Macy Magnet State Bank Magnet Malcolm State Bank Malcolm Meadow Grove.. Meadow Grove State Bank Minatare State Bank Minatare Monowi State Bank Monowi Mount Clare State Bank Mount Clare Republican Valley Bank Naponee Atlas Bank of Neligh Neligh Neligh State Bank Neligh State Bank of Nelson Nelson Farmers State Bank Newcastle https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 44 Recovery 2,402.29 78,591.99 178,136.94 23,323.47 6,700.00 129,817.74 503,265.46 19,284.29 524.66 160,056.95 217,109.14 103,575.17 248,109.73 98,00'0.00 86,759.84 137,997.73 236,130.14 500.00 27,000.00 39,190.54 18,500.00 1,000.00 124,739.76 151,820.07 14,585.18 None None None 45,753.94 83,235.46 145,480.49 95,699.33 None 31,188.00 3,800.00 15,950.00 None 33,000.00 None None None 11,000.00 20,000.00 5,500.00 15,000.00 354,855.87 SUBDIVISION NO. 2, EXHIBIT B. Town Name of Bank Loss Rock County Bank Newport '''. First State Bank Nickerson Niobrara Valley Bank ITiobrara v" . North Platte... Platte Valley State Bank Antelope County Bank Oakdale Oakdale Bank Oakdale Ohiowa Nebraska State Bank Omaha Bank of Benson Omaha Commercial State Bank Omaha Security State Bank Orchard Orchard State Bank Osceola Osceola Bank PaPillion State Bank of Papillion Pawnee City....First State Bank Peru i Peru State Bank Petersburg Citizens State Bank Petersburg Farmers State Bank Potter Citizens State Bank Ralston Citizens State Bank Randolph Farmers State Bank Richfield First State Bank Riverton Republican Valley Bank Rosalie Farmers State Bank Royal Citizens State Bank Royal Royal State Bank Santee Santee State Bank Scottsbluff American State Bank Seneca Seneca State Bank Sidney ...American Bank Silver Creek. Silver Creek State Bank SnYder Snyder State Bank So. Sioux City.. .Bank of South Sioux City Spring Ranch...Blue Valley State Bank Springview Springview State Bank Stapleton Farmers Bank Sterling Farmers & Merchants Bank. Strang Strang State Bank Stratton Citizens State Bank Superior State Bank of Superior Sweetwater' Sweetwater State Bank Taylor Old Gold Bank Thedford Thedford State Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15 Recovery 101,888.49 2,000.00 , 59.97 560,355.13 85,483.58 122,010.97 None 397,273.33 None 2,000.00 15,000.00 1,700.00 186,420.69 1,000.00 316,959.13 .704.81 72,161.65 167,968.49 4,500.00 None 4,948.86 None 107,048.84 7,103.79 None None 5,000.00 72,535.98 1,000.00 325,000.00 3,300.00 1,000.00 124,523.40 90,626.70 355,289.26 88,907.04 None, None 28,800.00 33,000.00 None None 26,990.fr, 533,403.50 3.80 None None None None SUBDIVISION NO. 2, EXHIBIT B. Name of Bank Town i Liberty State Bank Thurston State Bank Tilden Trumbull State Bank Trumbull Ulysses Farmers & Merchants Bank. First Bank of Ulysses Ulysses ' Valentine' Valentine State Bank Verde11 Farmers State Bank Wahoo Farmers & Merchants Waverly Bank of Waverly Wayside Wayside State Bank Western .......Western State Bank Winnetoon First State Bank Wolbach Farmers State Bank York Farmers State Bank Loss Recovery 65,929.80 146,661.73 1,200.00 153,229.30 257,089.27 None 229,519.85 77,792.88 None 65,132.98 160,000.00 None 2,700.00 None 2,791.85 67,638.10 $10,983,042.39 $432,964.52 Total Loss to be paid by Guaranty Fund....$..$10,983,0.42.39 Total Recoveries to be made for Guaranty Fund 432,964.52 Net Loss to be paid by Guaranty Fund https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $10,550,077.87 SUBDIVISION NO. 2, EXHIBIT C. STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims In Disp. not on Books Loss on Assets *CAPITAL IMPAI RMENT $ Ames Altona Adams 93.29 $ 5,135.93 $ 39-99 24,480.70 1,683.50 2,500.00 1,639.84 45.69 1,941.00 1,613.40 844,29 25.00 167.68 294.00 541.08 3,061.75 1,336.13 2,080.65 67,461.72 11,539.51 1,029.09 583.18 498.84 8,809.62 23,076.97 1,725.2*, $ 88,030.74 $ 44,773.43 $ 29,441.96 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SU PPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 47 5,726.53V 23,173.43 — 12.75 6.27 261.95 52,270.13 7,123.00 94.29 2,472.55 479.28 SUBDIVISION NO. 2, EXHIBIT C. Adams 711.21 137.28 25,000.00 Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS $ 88,030.74 Altona 1,600.00 20,000.00 Ames 309.96 5,675.00 15,000.00 $ 44,773.43 $ 29,443.96 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not shown on books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT Angora 8.40 $ Angus F. S. Ansley 1,914.74 $ 2,895.69 62,024.09 527.17 24,887.79 12,258.02 432.76 5,000.00 3,077.93 2,104.56 383.97 3,483.68 662.42 1,820.70 953.87 30.25 1,347.50 316.93 6.00 720.70 S,770.37 1,597.34 59,444.32 6,270.68 23,086.25 2,018.13 5,210.00 21,983.97 70,149.40 $ 74,906.61 $ 33,644.16 $209,836.86 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims https://fraser.stlouisfed.org ahr. Federal Reserve Bank of St. Louis 48 5,500.00 91.44 177,895.77 SUBDIVISION NO. 2, EXHIBIT C. Angore 4,000.00 Receiver's Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc. Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS Augus F. S. Ansley , 5,210.00 132.88 2,609.30 34,030.00 8,148.09 57.81 84.00 62.79 979.56 5,059.57 25,000.00 1,682.87 3,294.28 862.64 4,800.00 10,000.00 2,155.54 781.39 498.40 3.51 447.79 25,000.00 $ 74.904.61 $ 33.644.16 $209.836.86 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 CASH Bassett Bazile Mills Ansley State 945.61 $ 1,273.60 $ 13,414.02 $ ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 96,449.94 7.43 61,584.73 1,500.00 27,847.31 14,299.32 877.38 20,915.72 395.26 685.34 905.98 361.95 1,090.45 130.17 1,893.67 1,536.48 1,426.98 71.42 831.12 1,884.30 12,625.90 12,237.00 49 SUBDIVISION NO. 2, EXHIBIT C. Claims Est. not shown on Books Claims in Disp. not on Books Loss on Assets Ansley State 4,554.90 51.99 13,927.80 19,631.41 CAPITAL IMPAIRMENT LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receiver's Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc. Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS Bassett Bazile Mills 2,873.73 11,754.12 992.43 6,900.50 242,753.89 25,381.13 68,438.83 $220,503.61 $122,781.15 $329,167.05 189,548.24 103,418.34 6,785.50 51.99 2,388.81 719.95 297,284.99 2,264.95 655.50 • 188.09 1,794.84 1,000.00 25,000.00 15,000.00 1,921.83 2,335.13 1.10 731.22 5,107.28 15,000.00 $220,503.61 $122,781.15 $329,167.05 30.72 125.00 193.02 905.31 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 Beltlen $ 7,609.25 CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 46,971.40 46.60 4,576,88 22,579.23 15,320.46 50 State Belgrade Bennington $ 13,098.38 $ 12,800.43 12,616.16 8.34 1,999.35 55,162.37 13,347.25 49,179.27 19,317.61 206.40 SUBDIVISION NO. 2, EXHIBIT C. Belden 44.60 Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not shown on books Claims in Disp. not on Books . Loss on Assets CAPITAL IMPAIRMENT State Bennington 804.61 584.17 Belgrade 3,500.00 400.00 875.21 850.00 4,782.50 1,186.00 1,787.81 251.99 1,508.38 630.70 311.11 38.64 740.52 3,177.38 2.00 16,860.29 1,200.00 510.99 66,998.25 3,086.62 212.40 26,843.64 30,645.32 3,309.63 10,179.37 1,865.28 47,986.98 $188,023,48 $168,888.96 $149,504.33 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receiver's Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS Interest Received Real Estate Income Realized Thru Assets Disc. Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14,137.51 95,003.30 147,086.70 139.790.46 1,200.00 11,670.33 212.40 67.93 1,160.49 629.56 125.00 2,651.40 3,500.00 20,000.00 618.73 2,198.46 279.80 721.18 36.22 30.00 211.67 555.54 25,000.00 25,000.00 3,639.3' 10.890.50 $188,023.48 $168,888.96 $149,504.33 51 SUBDIVISION NO. 2, EXHIBIT C. CASH STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 M & G Bennington Benson Blair $ 1,468.80 $ 19,393.92 $ 23,029.47 ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels 165,178.13 126.81 144,974.97 5,700.00 24,924.40 60,906.93 24,136.03 4,560.61 33,297.19 34,009.13 484.14 2,250.00 9,262.84 4,946.13 7,997.63 1,080.60 62.00 4,668.55 5,023.35 2,307.59 504.81 279.95 3,616.94 571.46 2,533.82 10,907.32 1,105.28 19,413.89 5,965.49 68.78 59,967.59 144,720.15 40,361.40 63,971.91 $117,633.61 $520,539.88 $354,672.39 97,441.34 454,273.33 297,893.72 253.00 OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not Sh'wn on B'ks Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receiver's Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 58,814.87 68.78 14.04 21.86 52 3,749.31 690.25 SUBDIVISION NO. 2, EXHIBIT C. G M Bennington 97.90 190.04 1,132.47 3,750.00 15,000.00 Real Estate Income Realized Thru Assets Disc. Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS Benson 3,437.22 735.81 8,261.39 Blair 1,787.05 1,133.34 3,168.03 50,000.00 50,000.00 $117,633.61 $520,539.88 $354,672.39 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 Bloomfield Boelus Brayton 1,046.31 $ 5,132.33 $ 9,919.83 $ CASH AssETs NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered Bills Receivable Real Estate Judgments Chattels OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not Sh'wn on B'ks. Claims in Disp. not on Books . Loss on Assets CAPITAL IMPAIRMENT 316,161.95 3,307.66 3,824.75 28,163.08 46,031.46 3,150.68 1,745.16 2,040.00 4:7441..0400 950 40,585.48 54,201.95 27,390.11 3,737.36 27,436.78 329.06 1,124.74 360.20 122.08 2,223.12 856.96 26,413.95 5,473.23 7.59 24 3 16 33 8..0 90 1 26 48 2,5 13,291.80 41.870.69 20,836.64 10.25 216.65 3,217.24 1,117.73 198,667.49 32,960.75 8,510.90 5,066.16 $792,209.15 $107,399.68 $ 54,444.84 L IABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 83,935.02 53 , SUBDIVISION NO. 2, EXHIBIT C. Bloomfield Preferred Claims Receiver's Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS Boelus Brayton 9.78 3,321.96 96.87 697,250.00 42,006.76 16,338.02 5,674.19 3,203.33 2,557.23 5,011.87 50,000.00 8,852.55 6.12 6.54 8,452.00 15,000.00 1,285.17 200.00 218.06 517.29 110.91 10,000.00 $792,209.15 $107,399.68 $ 54,444.84 STATEMENT OF CONDITION—NEW RECEIVERSHIP S February 5, 1929 Bridgeport Broadwate? Brownville CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 15,286.63 $ 45.22 $ 186,848.42 9,202.94 17.78 57,023.17 18,489.87 1,459.97 7,391.30 6,182.49 1,246.51 1,490.33 1,139.50 54 785.03 1,174.98 3,497.41 2,035.65 3,372.49 699.45 2,191.59 787.80 6,817.49 3,483.33 452.26 SUBDIVISION NO. 2, EXHIBIT C. Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT Bridgeport Broadwater Brownville 1,541.97 12,201.97 646.67 1,500.96 5,723.82 48,864.57 74,106.59 157,243.56 972.22 7,905.72 1,805.45 $430,212.42 $179,519.20 $ 33,903.49 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified .... Preferred Claims Receiver's Certificates Other Liabilities Claims In Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc Deferred Credit:; Stockholders' Liab. Settled CAPITAL STOCK SURPLUS 365,974.51 V 294.14 141,875.00 14,858.02 2,927.58 2,109.45 25.84 7,581.33 1,616.37 482.00 985.08 667.88 25,000.00 15,000.00 3,950.73 4,980.19 1,791.01 3,515.98 25,000.00 25,000.00 $430,212.42 $179,519.20 $ 33,903.49 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 Brunswick CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 908.09 $ 33,218.78 114.15 1,975.00 20,252.23 12,538.17 55 Bushnell 6.52 $ Carroll 79.58 SUBDIVISION NO. 2, EXHIBIT C. Brunswick Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Dispute not on books Loss on Assets CAPITAL IMPAIRMENT Bushnell Carroll 822.79 506.12 286.04 4,518.73 1,386.30 1,529.79 809.71 907.20 5.50 8,942.51 6,138.47 231.96 2,632.15 1,241.17 129,957.43 3,411.25 144,537.34 25,079.53 1,447.66 101.22 2,357.30 49,589.86 $125,024.61 $154,366.71 $176,141 .23 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receiver's Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 56 101,349.21 V 101.22 1,240.93 17,965.68 103,568.40 135,552.15 31.34 181.50 4.26 3,357.08 2,678.00 128.00 166.86 3,618.84 20,000.00 25,000.00 262.35 200.00 12.00 11,002.61 4,112.12 25,000.00 $125,024.61 $154,366.71 $176,141.24 SUBDIVISION NO. 2, EXHIBIT C. STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 CASH ASSET NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT Cedar Rapids Chadron Clearwater $ 9,242.98 $ 6,032.26 $ 12,831.99 13,341.92 78,544.61 604.48 1,566.95 153,505.66 • 45,566.37 873.29 263,951.77 457.35 3,054.89 43,651.80 6,397.55 3,680.93 2,606.43 2,655.95 46,673.02 11,960.49 15,478.90 25.00 5,090.00 4,359.99 1,737.55 255.32 13,980.35 2,652.82 1,704.94 441.74 3,278.73 17,613.00 11,088.17 11,821.02 1.91 127,974.37 5,525.82 5,281.80 16,236.67 22,245.62 75,436.05 23,075.49 945.21 4,043.88 4,413.20 57,981.50 $341,546.46 $573,647.65 $224,695.63 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receivers' Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Accounts Payable Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 243,674.32 k 758.67 16,629.68 388.74 205,836.56 251.91 5,956.81 385,500.00 598.35 6,022.80 57 5,841.25 12,586.27 2,472.64 2,865.99 SUBDIVISION NO. 2, EXHIBIT C. Cedar Rapids Chadron Clearwater 392.92 1,656.23 21,813.49 50,000.00 9,622.39 60,037.25 7,400.00 75,000.00 11,063.03 129.78 390.66 1,000.00 12,000.00 Realized Thru Assets Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS $341,546.46 $573,647.65 $224,695.63 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT $ Clinton Cotesfield Cornlea 114.36 $ 7,028.94 $ 306.54 72,986.82 185.80 1,200.97 3,434.21 46,551.82 17,955.21 2,219.00 4,673.92 20,262.44 1,545.46 8,216.30 8.33 935.00 7,880.25 942.55 792.51 370.92 1,100:88 618.20 1,100.06 3,336.60 11,647.57 142.05 575.28 926.11 603.39 127.91 132.39 4,137.08 8,247.91 67.50 1,938.98 5,311.78 8,000.00 16,286.84 37,273.86 22,603.70 5,864.04 $117,348.57 $168,414.75 $ 41,890.16 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 58 SUBDIVISION NO. 2, EXHIBIT C. Clinton Preferred Claims Receivers' Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS Cornlea 133,580.33 900.00 535.80 5,650.10 8,000.00 5,936.39 Cotesfield 1,155.78 2,500.01) 114.69 15,500.00 77,000.00 , 6,174.79 3,671.75 792.16 4,108.32 3,515.65 15,000.00 $117,348.57 104.48 12.82 8.73 3,134.82 2,650.00 15,000.00 22.06 748.01 6,836.90 15,000.00 $168,414.75 $ 41,890.16 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 Crofton Crawford Craig 469.11 $ 21,150.63 $ 681.64 $ CASH ASSETS NOT REALIZED: 202,065.96 105,013.13 Bills Receivable 3.30 233.30 Overdrafts 2,260.52 2,278.75 Furniture & Fixtures 57,284.85 27,914.33 Real Estate 14,627.57 Judgments '651.12 1,066.39 Other Assets Acquired & Discovered: 1,271.00 3,375.00 Bills Receivable 4,000.00 Real Estate 5,148.22 Judgments Chattels OPERATING COST: 3,925.76 6,263.30 General Expense 3,122.57 Legal Expense 1,807.32 3,115.61 628.92 SUPPLEMENTARY CHARGES: Real Estate Expense 2,131.58 3,904.66 2,160.96 Interest Paid 14,966.28 2,745.77 ' Claims Est. not on Books 10,873.34 5,311.32 6,232.50 59 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SUBDIVISION NO. 2, EXHIBIT B. Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receivers' Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS Craig Crawford 53,524.34 52,370.60 123,330.69 11,871.24 Crofton 631.73 12,732.90 65,705.47 $297,418.28 $157,011.70 $382,421.70 326,603.44 631.73 5.00 26,250.00 256,000.00 86,589.10 4,967.01 638.61 11.55 796.11 35,000.00 2,737.81 1,479.69 1,245.25 3,509.85 200.00 35,000.00 50,000.00 $297,418.28 $157,011.70 $382,421.70 1,412.36 2,662.48 70.30 1,041.39 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 Dannebrog 1st State Crookston State Dannebrog CASH $ 222.39 $ 9,055.02 $ 1,598.57 ASSETS NOT REALIZED: Bills Receivable 147,861.81 128,128.76 Overdrafts 1,154.42 1,430.80 Furniture & Fixtures 225.07 Real Estate 5,000.00 48,668.79 Judgments 193.37 753.41 Other Assets 14,539.55 12,395.78 Acquired & Discovered: Bills Receivable Real Estate 1,500.00 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 60 SUBDIVISION NO. 2, EXHIBIT C. Crookston Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT 5,027.17 2,687.79 1,407.73 550.00 357.44 124.85 1,972.32 3,985.17 4,968.46 2,670.18 418.80 4,735.72 577.03 39,358.18 50,971.59 3,701.12 2,110.15 214.68 83,927.18 83,902.75 3,382.99 $106,149.04 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receivers' Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS Dannebrog 1st State Dennebrog State 4,384.66 $283,059.26 $284,055.40 241,931.74 250,699.96 5,577.03 2,730.25 2,110.15 10,877.13 910.00 515.75 5,881.36 3,874.80 20,000.00 2,116.53 1,825.40 26.05 1,152.26 3,600.00 25,000.00 34.21 487.20 .15 2,223.73 13,500.00 15,000.00 $106,149.04 $283,959.26 $284,055.40 64,090.00 STATEMENT OF CONDITION —NEW RECEIVERSHIPS February 5, 1929. Dixon' Doniphan Dunbar CASH 714.96 $ 20,081.09 $ 3,973.24 $ ASSETS NOT REALIZED: Bills Receivable 10,471.78 67,295.75 179,191.55 61 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SUBDIVISION NO. 2, EXHIBIT C. Dixon Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est., not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT 50.00 12.80 2,385.00 12,303.00 682.22 1,517.14 Dunbar 366.88 2,000.00 18,927.56 36,124.32 2,670.41 3,180.00 2,109.93 1,128.13 3,885.66 927.00 586.22 2,094.61 336.73 692.74 246.39 1,953.66 88.82 21.40 3,994.58 39,752.85 3,739.66 4,513.25 18,405.95 8,397.93 44,935.55 10,536.33 $ 65,906.91 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc. Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Doniphan 597.71 102,091.99 204,021.03 7,115.91 72,057.53 10,478.00 5,000.00 199.19 7,500.00 21,086.06 854.32 377.00 21.34 492.48 7,000.00 20,000.00 $ 65,906.91 62 $118,703.82 $325,681.35 773.99 2.93 560.72 75.00 15,000.00 2,312.23 107.97 99.75 1,547.06 4,000.00 25,000.00 1,922.87 $118,703.82 $325,684.35 SUBDIVISION NO. 2, EXHIBIT C. STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929. CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT $ Elba Eddyville Eagle 484.82 $ 8,188.08 $ 7,651.01 15,808.25 18.43 1,037.75 7,442.44 2,213.11 506.84 59,545.63 316.45 727.21 43,126.83 3,566.51 982.26 3,745.45 4,276.41 395.40 3,160.21 332.37 182.13 4,110.37 10,270.28 5,049.50 1,916.04 690.53 2,772.79 1,783.11 6,906.53 6,068.21 878.80 • 140.00 6,878.30 121,009.96 918.13 10,212.12 1,733.96 121.66 13,048.41 31,850.67 $ 56,365.73 $158,410.69 $175,320.54 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable .Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 40,023.47 1,300.00 151,717.74 19,580.87 4,201.66 4.00 140.00 98,000.00 362.87 160.25 13.81 665.33 63 15,873.39 61.00 1,712.79 4,982.64 2,628.24 978.23 24.9S 415.69 SUBDIVISION NO. 2, EXHIBIT C. Eagle Eddyville Stockholders Liab. Settled CAPITAL STOCK SURPLUS 1,900.00 15,000.00 Elba 350.00 15,000.00 $ 56,365.73 $158,410.69 $175,320.51 15,000.00 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929. CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT Elgin Enola Ericson $ 18,371.61 $ 10,902.29 $ 1,531.44 239,171.46 453.84 7,336.41 175,315.82 24,844.35 10,510.14 22,452.30 16,121.97 1,451.50 12,444.06 7,163.03 1,407.56 6,160.98 2,840.44 559.08 686.74 53.78 1,257.98 691.97 4,130.58 140.33 10,066.01 2,595.68 22,081.22 187,040.28 1,440.09 2,560.12 4,988.51 9,838.37 61.71 6,037.50 1,360.92 18.83 57,756.72 20,347.42 209.5S 1,858.01 12,128.70 $719,303.63 $ 91,650.65 $ 95,455.05 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified 608,265.46 Preferred Claims 43,084.29 524.66 Receivers Certificates Other Liabilities Claims in Dispute 2,783.64 25,832.84 1,005.13 241.18 General Claims Bills Payable 64 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SUBDIVISION NO. 2, EXHIBIT C. Elgin Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credite Stockholders Liab. Settled CAPITAL STOCK SURPLUS Enola Ericson 78,500.00 1,296.74 1,704.73 126.10 4,885.78 444.46 274.00 28.94 1,986.12 39.64 333.85 100,000.00 20,000.00 15,000.00 51.77 $719,303.63 $ 91,650.65 $ 95,455.05 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929. Pioneer Bank, Fairfield Ewing Ewing State CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SU PPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 2,963.99 $ 6,382.73 $ 7,978.37 108,601.26 788.14 2,488.70 600.00 602.28 1,088.81 143,351.90 102.18 2,052.50 1,666.00 11,856.79 4,707.42 37,872.01 17.21 2,476.35 16,847.00 4,889.22 3,758.96 1,000.00 1,054.85 2,000.00 1,852.02 493.65 1,904.96 143.39 1,322.83 155.98 1.40 136.92 2,244.48 2,544.23 2,507.71 16,374.07 54,766.28 4,008.32 678.98 9,101.93 71,417.33 2,331.67 $196,672.54 65 28,291.75 44,632.64 $259,511.35 $153,873.32 SUBDIVISION NO. 2, EXHIBIT C. Ewing State LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS Pioneer Bank Ewing Fairfield 164,656.95 234,109.14 125,105.14 3,126.91 2,678.98 370.03 2,111.38 1,448.55 24.00 43.73 261.02 682.35 81.58 114.00 1,845.30 25,000.00 20,00.00 $196,672.54 1,585.14 435.50 822.51 555.00 25,000.00 $259,511.35 $153,873.32 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929. Gibbon Geneva Florence 587.04 $ 25,666.34 $ 921.06 $ CASH ASSETS NOT REALIZED: 112,697.16 122,323.91 Bills Receivable Overdrafts 3,434.00 7,580.48 Furniture & Fixtures 4,053.72 55,366.42 Real Estate 28,089.12 31,152.75 Judgments 3,355.26 1,469.97 Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COST: 657.90 2,681.36 General Expense 222.25 406.99 Legal Expense https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 66 7 SUBDIVISION NO. 2, EXHIBIT C. SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT Florence Geneva 1,025.13 3,607.81 2,139.96 81.35 54,798.63 25,060.17 118,005.97 Gibbon 34,718.24 $ 90,722.46 $362,445.99 $186,934.51 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS 321,109.73 166,934.51 81.35 78,585.72 973.96 541.25 8.00 532.18 212.46 1,029.98 93.82 10,000.00 40,000.00 20,000.00 $ 90,722.46 $362,445.99 $186,934.51 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929. Harvard Gretna Giltner CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 3,591.77 $ 16,439.03 $ 11,872.86 33,476.24 767.25 35,551.25 7,932.99 348.75 67 70,055.44 79.75 1,441.63 112,067.66 2,206.17 587.15 93,252.12 1,714.69 47,965.52 893.45 1,362.42 SUBDIVISION NO. 2, EXHIBIT C. Giltner Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels Gretna 216.13 9,317.18 649.24 43,654.75 3,853.22 1,408.60 415.33 939.52 56.42 3,963.91 4,669.22 1,698.19 368.50 3,074.66 2,480.22 30,020.12 16,616.93 7,971.82 85,123.06 10,086.61 5,430.76 1,803.15 OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Eat. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT Harvard 2,769.88 211.77 7.60 25,585.97 $120,999.50 $236,957.74 $346,041.66 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 214,297.73 108,559.84 279,730.14 211.77 1,000.00 19,256.74 597.93 773.65 746.56 35.08 432.60 40.00 10,200.00 68 384.64 2,272.13 3.24 7,823.09 3,461.20 5,033.87 4,134.69 20,000.00 25,000.00 $120,999.50 $236,957.74 $346,041.66 I SUBDIVISION NO. 2, EXHIBIT C. STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929. Jackson Hooper Hazard CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Received Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT $ 11,056.06 $ 99,587.80 727.26 1,126.09 24,044.75 1,645.62 3,472.47 17,665.48 12.68 943.85 8,769.15 6,172.60 199.89 306.86 224.24 4,647.14 62.50 960.59 1,838.04 435.15 36.52 204.68 1,394.07 1,319.99 59.37 36,779.53 $ 82,189.71 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 679.90 8 8,593.84 69 118,800.05 4,830.15 925.50 6,602.50 16,191.00 $129,639.78 $168,485.83 59,390.54 143,939.76 1,000.00 8,488.13 15.01 57,867.17 155.55 43.62 363.00 197.15 368.75 45.74 11 SUBDIVISION NO. 2, EXHIBIT C. Hazard Hooper 2,600.00 20,000.00 22,476.53 20,800.00 25,000.00 2,133.08 $ 82,189.71 $129,639.78 Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS Jackson 431.29 15,000.00 $168,485.83 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 Kennard $ CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expenses Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est., not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT 80,533.52 4.33 1,308.00 4,567.03 4.97 70 Lakeside $ $ 4,016.13 Lynch 4,825.13 70,094.96 14,297.58 60.16 469.75 1,400.00 95,952.40 196.99 6,471.13 184.45 843.00 12,971.54 9,419.38 380.00 2,207.24 1,125.14 2,655.10 453.12 3,888.10 772.80 10.40 190.32 5,411,23 20,673.20 41,300.68 50,577.42 4,518.19 14,096.49 10,380.43 1,366.37 7,142.21 106,361.08 20,843.60 $215,064.54 $ 55,685.22 $338,565.19 158,820.07 34,085.18 500.00 2,000.00 1,863.00 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2,978.38 Y 3 SUBDIVISION NO. 2, EXHIBIT C. Kennard 20,673.20 Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guar. Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS Lynch Lakeside 1,877.77 294,481.02 1,120.54 2,387.98 10.75 681.98 3,758.00 30,000.00 403.50 5,057.56 1,385.23 9:520.48 253.52 1,287.07 9,760.10 20,000.00 11,000.00 2,751.00 $215,064.54 $ 55,685.22 $338,565.19 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 $ CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 71 McGrew Lyons 103.47 $ 57.84 $ Macy 107.19 1,341.29 945.14 3,546.00 1,479.55 4,061.61 3,313.54 160.50 6,610.75 3,906.70 87.50 71.00 2,931.07 1,035.04 558.78 1,974.71 4,364.62 SUBDIVISION NO. 2, EXHIBIT C. Lyons 90,331.52 79,324.28 Loss on Assets CAPITAL IMPAIRMENT McGrew 52,334.08 937.41 Macy 94,674.80 $182,765.52 $ 62,437.62 $109,055.25 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS 87.50 683.84 11,076.74 8,017.45 138,711.00 44,875.52 64,119.62 251.10 80.00 6.54 3,045.54 9,900.00 30,000.00 5,235.70 715.77 6.00 111.91 5,161.07 65.41 1,760.99 500.00 10,000.00 10,000.00 9,847.69 $182,765.52 $ 62,437.62 $109,055.25 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 Meadow Magnet Malcolm Grove $ 1,917.37 $ 17,150.42 $ 925.85 CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 37,734.54 7.73 740.00 10,043.10 3,580.57 291.41 72 11,722.66 730.00 57,008.32 6,331.41 421.91 77,158.03 301.57 7,045.50 590.35 "•7. "77,7TF.' --• SUBDIVISION NO. 2, EXHIBIT C. Magnet Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books .... Claims in Disp. not on Books .. Loss on Assets CAPITAL IMPAIRMENT Malcolm Meadow Grove 983.02 36.32 660.15 39.21 900.67 111.93 140.63 830.75 93.57 2,016.41 60.42 2,492.09 15,580.48 4,904.74 681.04 4,417.38 43,331.88 4,121.03 103.65 91,216.94 $ 75,624.09 $148,229.87 $182,569.09 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 73 $ 58,803.94 $126,735.46 $154,480.49 60.42 681.04 103.6 343.11 75.00 161.60 280.02 900.00 15,000.00 203.23 452.14 2.66 155.34 294.69 20,000.00 9.38 505.88 2,175.00 25,000.00 $ 75,624.09 $148,229.87 $182,569.09 SLTBDIVISION NO. 2, EXHIBIT C STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 Atlas Bank, Neligh Mt. Clare Minatare 204.62 $ 6,145.97 $ 5,016.47 $ CASH D: ASSETS NOT REALIZE 45,003.34 50,961.80 Bills Receivable 5.93 Overdrafts 871.00 Furniture & Fixtures 450.00 44,176.83 Real Estate 1,659.65 11,826.68 Judgments 203.86 7,556.34 Other Assets d: Discovere & Acquired Bills Receivable 2,159.69 Real Estate 248.31 Judgments Chattels OPERATING COST: 12,442.28 405.74 2,511.54 General Expense 8,904.08 30.73 797.46 Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims In Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS:• 60.36 1,946.98 1,625.81 5,192.01 51,510.30 14,864.38 12,495.13 11,829.64 2,116.47 2,304.64 771,767.18 37,714.91 $155,676.86 $ 59,996.38 $902,599.76 118,699.33 49,638.00 15,282.92 780,944.60 921.73 3,160.62 Interest Received Real Estate Income https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3,262.87 74 56.22 10,246.34 6,533.33 )2 ;0 SUBDIVISION NO. 2, EXHIBIT C. Minatare 2,959.31 4,865.37 70.00 25,000.00 Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS Atlas Bank Neligh 1,045.88 8,519.39 27.30 10,000.00 80,000.00 Mt. Clare 44.21 257.95 $155,676.86 $ 59,996.38 $902,599.76 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929. Neligh Nelson State Newcastle CASH 72.72 $ 443.59 $ 11,912.99 ASSETS NOT REALIZED: 46,378.58 Bills Receivable 201,017.29 186.80 93.70 Overdrafts Furniture & Fixtures 1,766.00 Real Estate 83,387.94 741.20 19,366.58 Judgments 162.93 2,527.38 Other Assets Acquired & Discovered: Bills Receivable 1,490.10 Real Estate 2,499.85 Judgments 5,325.76 Chattels OPERATING COST: 1,580.35 182.65 5,038.81 General Expense 417.47 25.73 Legal Expense 1,881.17 SUPPLEMENTARY CHARGES: 142.60 Real Estate Expense 6,495.83 1,677.38 2,954.71 Interest Paid 1.85 Claims Est. not on Books 4,004.43 Claims in Disp. not on Books 2.00 21,581.24 Loss on Assets 187,093.78 CAPITAL IMPAIRMENT 92,671.03 2,089.50 2,678.84 $210,220.29 $ 83,088.50 $414,584.04 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 75 391,855.87 SUBDIVISION NO. 2, EXHIBIT C. Neligh State Receivers Certificates Other Liabilities Claims in Dispute General Claim Bills Payable Rediscqunts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS Nelson 50.95 2.00 1.80 145,510.00 29,000.00 4,665.53 6,895.98 419.62 2,678.21 1,125.87 144.93 2,813.90 50,000.00 50,000.00 Newcastle 251.93 2,004.48 7.31 464.45 20,000.00 $210,220.29 $ 83,088.50 $414,584.04 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929. Niobrara Newport Nickerson $ 90.96 $ 299.81 $ 72.80 CASH ASSETS NOT REALIZED: 69,415.91 Bills Receivable Overdrafts 1,025.75 Furniture & Fixtures 3,500.00 Real Estate 7,965.54 Judgments 328.79 296.70 Other Assets Acquired & Discovered: 3,385.00 Bills Receivable Real Estate 11,800.00 1,794.17 Judgments Chattels OPERATING COST: 5,385.50 2,961.30 549.04 General Expense 55.49 4,016.02 2,179.86 Legal Expense SUPPLEMENTARY CHARGES: 41.20 239.60 7,251.68 Real Estate Expense 2,904.30 2,890.55 Interest Paid 6,794.94 1,760.62 13,455.27 Claims Est. not on Books https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 76 SUBDIVISION NO. 2, EXHIBIT C. Newport Nickerson 1,172.89 586.02 141,458.32 73,877.89 57,274.97 Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT Niobrara 180,971.13 10,458.85 $145,561.35 $254,680.46 $216,019.46 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS 59.97 111.888.49 1,175.89 174.00 324.81 30.00 14.30 1,953.86 30,000.00 1,806.28 • 1,456.36 205,975.39 186,168.00 1,012.82 3,088.92 2,243.11 104.01 2,898.66 740.38 3,317.21 16,828.38 25,000.00 20,000.00 $145,561.35 $254,630.46 $216,019.46 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929. Oakdale Ante Co. Bank Oakdale No. Platte CASH 2,377.86 $ 3,195.78 $ $ 30,599.56 ASSETS NOT REALIZED: 62,392.77 48,955.72 576,951.47 Bills Receivable 3,883.9,5 370.00 Overdrafts 2,684.50 1,798.00 Furniture & Fixtures 118,497.76 58,374.66 Real Estate 37,493.26 15,045.51 12,564.26 Judgments 4,583.97 3,403.69 Other Assets 1,987.49 Acquired & Discovered: 600.00 Bills Receivable 8,480.12 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 77 SUBDIVISION NO. 2, EXHIBIT C. No. Platte 33,161.09 32,977.98 Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ante Co. Oakdale Oakdale Bank 2,967.50 8,558.32 2,172.50 549.62 106.60 607.45 47.23 7,775.48 834.55 1,288.23 17,475.02 8,464.28 88,034.29 39,391.34 3,002.47 7,767.27 4,198.04 2,390.82 742.15 20,263.39 4,969.42 $893,892.20 $152,973.49 $235,119.6S 670,320.13 124,183.58 196,910.97 29,218.90 651.35 59,909.33 7,767.27 2,390.82 500.00 4,810.33 4,939.06 344.51 9,698.59 14,000.00 100,000.00 701.11 701.12 89.25 731.16 800.00 18,000.00 49.00 1,130.30 151.49 3,987.10 30,000.00 $893,892.20 $152,973.49 $235,119.68 78 SUBDIVISION NO. 2, EXHIBIT C. STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929. Orchard Omaha Ohiowa CASH $ ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense , Interest Paid Claims Est. not on Books Claims in Dispute not on Bociks $ 2,419.76 $ 577.09 1,138.92 Loss on Assets CAPITAL IMPAIRMENT LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thcu Assets https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 601.11 14.35 7.74 614.55 644.28 1,557.4'2 296.64 1,966.07 21,176.49 2,288.61 •1,226.1 1,539.42 15,703.90 490,574.17 39,590.94 68,623.21 56,510.12 18,293.17 $560.310.80 $134,469.56 7.000.01, 12 1n 7,1 ft 1,609.38 517.55 79 :;08.05 SUBDIVISION NO. 2, EXHIBIT C. Ohiowa Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS 15,000.00 1,136.24 Omaha 15,165.11 Orchard 472.55 1,000.00 10,000.00 100,000.00 $ 18,293.17 $560.310.80 $134,469.56 STATEMENT OF CONDITION—NEW RECEIVERSHIP February 5, 1929. Pawnea Osceola Papillion City $ 4,094.89 $ 936.62 $ 1,742.54 CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture and Fixtures Real Estate Judgments Other Assets Acquired and Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT 127,046.51 52,580.93 1,270.95 48,311.73 8,227.10 731.66 171,983.07 10,473.55 17,128.32 2,925.72 9,864.68 1,502.69 1.00 2,973.87 2,658.14 4,897.88 11,594.04 1,745.41 533.07 2,781.21 7,569.97 8,194.542 1,478.50 24,666.60 116,738.07 5,738.19 60,776.33 157,282.87 194,364.62 7,673.59 503.15 10,020.68 136,673.76 $304,226.51 $511,959.20 $401,500.72 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates https://fraser.stlouisfed.org I. Federal Reserve Bank of St. Louis 244,020.69 80 358,959.13 SUBDIVISION NO. 2, EXHIBIT C. Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS Osceola Papillion 244.59 2,378.52 13,459.17 Pawnee City 503.15 418,500.00 755.56 1,614.17 22.14 834.45 19,234.91 37,500.00 2,150.04 5,549.88 21,190.96 28,230.63 500.00 20,000.00 405.34 8,703.23 188.80 2,741.07 30,000.00 $304,266.51 $511,959.20 $401,500.72 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929. Farmers Citizens State State Petersburg Petersburg Peru 297.10 $ 5,905.37 $ 16,350.69 $ CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired and Discovered Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SU PPLEMENTARY CHARGES: Real Estate Expense https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5,683.11 1,200.00 49,994.33 131.78 1,603.05 19,005.03 7,850.38 1,473.95 90,321.76 21.33 2,672.00 27,456.00 43,484.59 954.35 13,455.70 1,851.63 20,417.76 1,275.59 1,811.90 453.63 585.50 593.25 168.76 37,346.47 219.02 15.00 81 357.50 SUBDIVISION NO. 2, EXHIBIT C. Interest Paid Claims Est. not on Books Claims in Dispute not on Books Loss on Assets CAPITAL IMPAIRMENT LAIBILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liability Settled . CAPITAL STOCK SURPLUS Citizens State Farmers State Peru Petersburg Petersburg 1,553.98 1,115.84 5,393.59 10,046.50 6,418.28 106.59 6,913.84 29.00 8,908.54 10,630.12 30,291.57 77,480.8 $ 81,517.67 $130,987.09 $299,340.50 2,295.19 102,461.65 230,805.41 6,418.28 606.77 2,163.08 106.59 225.62 • 59,000.00 2,860.94 6,116.51 460.54 525.90 686.76 1,148.88 15,000.00 546.01 90.00 1.75 862.63 20,000.00 50,000.00 $ 81,517.67 $130,987.09 $299,340.50 9,462.75 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929. Ralston $ 378.61 CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 96,979.06 721.32 14,086.86 7,557.15 830.05 82 Randolph $ 1.13 I hi 1.20 SUBDIVISION NO. 2, EXHIBIT C. Ralston Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT Randolph Richfield 283.49 4,557.32 5,004.36 3,233.01 905.60 250.65 756.46 1,488.72 3,659.47 7,570.58 14,022.17 1,250.78 900.00 2,261.04 5,216.55 34,236.92 8,222.45 73,228.46 16,488.23 35,685.67 677.74 $201,342.82 $ 93,024.85 $ 46,087.38 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guaranty Fund SU PPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK 8PRPLus https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4,948.86 2,896.21 4,508.22 157,983.74 33,065.01 30,191.00 820.75 3,284.36 1,539.97 10,309.57 23.80 545.97 5.00 4,131.04 20,800.00 35,000.00 96.75 301.66 3.14 10,000.00 20,000.00 $201,342.82 $ 93,024.85 $ 46,087.38 83 SUBDIVISION NO. 2, EXHIBIT C STATEMENT OF CONDITION — NEW RECEIVERSHIPS February 5, 1929. CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books • Loss on Assets CAPITAL IMPAIRMENT $ 66,606.17 1,994.70 943.60 500.00 15,635.80 325.80 25.69 27,772.22 18.94 175.00 5,000.00 4,978.45 291.70 2,160.86 1,904.11 5,574.33 767.87 1,074.66 382.29 1,380.31 5,000.00 3,256.07 54,190.85 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claim Bills Payable Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Citizen State Royal Rosalie Royal State 846.78 $ 5,713.71 $ 624.71 84 3,629.11 4,422.68 1,243.85 556.50 463.17 1,168.42 1,487.97 358.67 40,902.03 1,195.83 8,248.34 50,563.64 $150,142.33 $ 66,149.68 $105,092.82 119,5.18.N.1 5,000.00 45.54 84,235.98 13,903.46 1,994.70 16,754.38 41.85 1,930.36 438.28 SUBDIVISION NO. 2, EXHIBIT C. Rosalie Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS 18.96 487.14 25,000.00 Citizens State' Royal 135.31 677.71 15,000.00 15,000.00 753.76 Royal State 28.71 389.85 20,000.00 $150,142.33 $ 66,149.68 $105,092.82 NEW RECEIVERSHIPS STATEMENT OF CONDITION— February 5, 1929. Seneca Scottsbluff Santee 516.83 $ 14,055.76 $ 96.06 CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments °PERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT 344,731.97 1,703.34 2,895.60 46,281.74 1,487.59 13,949.91 21,441.60 7.94 2,001.00 11,517.72 1,502.00 250.00 613.75 1,613.32 1,105.10 328.96 341.97 2,270.27 132.32 87.77 423.91 258.59 58.80 1,217.41 1,719.62 599.48 11,711.42 4,435.16 82.89 37,775.45 6,184.69 5,929.42 $ 18,446.97 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $464,867.02 $ 56,145.96 413,400.43 85 130.59 SUBDIVISION NO. 2, EXHIBIT C. Santee Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Expense Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS Scottsbluff Seneca 98.51 156.73 8,145.57 34,500.00 26.07 35.00 25.96 15.86 100.00 10,000.00 990.01 105.53 371.05 1,082.71 110.25 36.00 260.27 50,000.00 20,000.00 $ 18,446.97 $464,867.02 $ 56,145.96 STATEMENT OF CONDITION —NEW RECEIVERSHIPS February 5, 1929. Sidney Silver Creek $ 1,668.49 $ 1,989.65 CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34,441.72 9.30 2,391.00 59,153.40 5,347.53 897.60 300.00 1,295.05 1,286.60 86 1,447.24 287.32 1,585.97 427.19 4,461.91 8,436.18 64.00 7,335.24 3,855.70 ••,,, SUBDIVISION NO. 2, EXHIBIT C. Sidney Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Deposits not Classified Preferred Claims Receivers Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS Silver Creek 288,032.37 211,916.48 10,771.62 73,592.42 $516,313.99 $204,679.89 157,523.40 7,096.08 334,184.00 2,509.86 1,268.50 180.24 20,238.45 57,932.94 100,000.00 1,549.73 4,833.65 47.20 329.83 3,300.00 30,000.00 $516,313.99 $204,679.89 RECEIVERSHIPS STATEMENT OF CONDITION —NEW February 5, 1929. Spring South Ranch City Sioux Snyder .848.49 $ 7,913.90 $ 60N.50 q: CASH ASSETS NOT REALIZED: 11,626.36 221,535.51 81,417.77 Bills Receivable 981.34 203.58 266.96 Overdrafts 1,414.20 4,190.38 Furniture & Fixtures 3,450.27 2,294.82 20,403.88 Real Estate 11,136.35 2,140.35 6,625.29 Judgments 452.75 33,158.44 1,500.00 Other Assets Acquired & Discovered 1,896.19 Bills Receivable https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 87 SUBDIVISION NO. 2, EXHIBIT C. South Sioux City Spring Ranch 6,720.21 2,596.1:; 1,592.00 287.50 3,047.72 730.39 1,045.75 260.47 546.60 270.45 23.00 3,984.09 54.46 2,601.42 16,505.32 7,855.23 1,958.26 5,182.54 2,392.98 38,229.86 Snyder Real Estate Judgments Chattels OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT $136,423.79 LIABILITIES NOT LIQUIDATED: • Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receiver's Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositor's Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc. Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 108,926.70 19,080.84 86,216.35 $396,354.36 $111,599.05 363,389.26 54.46 42.00 1,561.76 400.00 89,51,; 5,182.54 540.55 3,660.06 50.00 360.48 1,464.56 2,430.00 25,000.00 10,000.00 $136,423.79 $396,354.36 $111,599.05 438.87 25,000.00 501.49 1.83 5,865.60 SUBDIVISION NO. 2, EXHIBIT C. STATEMENT OF CONDITION —NEW RECEIVERSHIPS February 5, 1929. CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Asseti; Acquired & Discovered Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT $ Springview 102.63 $ Stapleton Sterling 40.57 $ 16,977.52 33,853.43 41,819.43 757.25 7,500.00 14,696.41 1,458.97 951.43 120.75 718.52 100.22 17.50 143.45 78.27 57.90 347.57 47.72 7,936.48 22,659.72 96.00 33.50 11,546.46 $ 9,350.51 $ 57,825.65 $ 94,885.54 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receiver's Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 68,398.96 3,890.34 222.31 89 17,000.00 4.27 25.00 SUBDIVISION NO. 2, EXHIBIT C. Springview 118.36 100.00 5,000.00 19.50 Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS $ 9,350.51 Stapleton Sterling 1,165.20 15,000.00 15,000.00 9,660.45 1,457.31 25,000.00 $ 57,825.65 $ 94,885.54 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 $ CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired and Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COST: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT Superior Sweetwater $ 26,483.63 $ 1,019.11 21,730.80 144,411.93 512.15 1,675.50 43,414.97 13,725.20 56,603.92 12,050.70 1,040.72 4,218.99 48,453.94 25,508.15 136,882.95 30.43 10,116.78 5,197.22 704.ss 78.70 15,502.07 20,127.32 76.05 1,242.81 464.03 141.74 2,865.16 5,648.62 $ 76,394.49 $758,013.15 $ 27,800.94 3,770.00 11,353.12 2,781.22 10,267.79 25.00 8.00 76,722.71 12,270.00 136,313.04 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receiver's Certificates https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Strang 6,331.24 90 2,330.00 107.99 65,448.30 614,603.50 3.80 11% SUBDIVISION NO. 2, EXHIBIT C. Strang Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc. Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS Superior Sweetwater 12,270.00 323.16 6,064.89 265.87 16,000.00 287.16 108.03 551.00 10,000.00 5,471.46 7,504.13 182.00 49,231.98 1,000.00 50,000.00 11,362.03 269.90 74.56 186.81 1,000.00 10,000.00 $ 76,394.49 $758,013.15 $ 27,800.91 NEW RECEIVERSHIPS STATEMENT OF CONDITION February 5, 1929 Trumbull Tilden Thurston 18.37 318.88 $ 20,552.94 $ $ CASH ASSETS NOT REALIZED: 97,075.61 32,122.41 Bills Receivable Overdrafts 789.06 801.50 Furniture & Fixtures 20,838.89 9,116.48 Real Estate 15,613.96 150.42 Judgments 10,938.73 143.53 Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Disp. not on Books https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 147.80 321.86 386.46 32.10 32.95 453.80 1,718.99 164.79 91 237.S 46.41 72.50 457.32 SUBDIVISION NO. 2, EXHIBIT C. Thurston 1,574.94 46,057.45 Loss on Assets CAPITAL IMPAIRMENT Tilden 50,309.68 Trumbull 13,000 00 $ 92,672.00 $216,991.23 $ 13,832.44 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receiver's Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc. Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS 195,861.73 72,429.80 164.79 259.94 2,072.50 40.88 512.50 6.12 77.41 20,000.00 $ 92,672.00 570.00 20,000.00 1,500.00 10,000.00 $216,991.23 $ 13,832.41 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 F.& M. First Bank Ulysses Ulysses Valentine $ 2,939.63 $ 10,751.24 $ 136.40 CASli ASSETS NOT REALIZED: Bills receivable Overdrafts Furniture and Fixtures Real Estate Judgments Other Assets Acquired and Discovered : Bills Receivable Real Estate https://fraser.stlouisfed.org A. Federal Reserve Bank of St. Louis 45,373,88 620.90 542.50 4,700.00 37,205.35 1,345.17 6,709.92 92 48,629.82 37.46 4,145.00 40,142.15 38,435.34 SUBDIVISION NO. 2, EXHIBIT C. F.& M. First Bank Ulysses Ulysses 160.00 472.60 861.56 Judgments Chattels OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. Not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT Valentine 1,249.39 1,624.69 1,056.73 165.03 5,954.47 2,008.59 227.53 793.81 10,878.57 43.23 4,052.93 75,771.06 7,332.01 408.99 43,922.18 139,104.40 1,489.88 2,617.59 3,965.27 126,749.45 13,430.42 $194,619.81 $335,084.16 $156.352.07 [ABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified 291,589.27 159,629.30 Preferred Claims Receiver's Certificates Other Liabilities 408.99 43.23 Claims in Dispute 6,403.38 General Claims Bills Payable Rediscounts 116,442.51i Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: 377.31 $ 9,880.29 681.69 $ $ Interest Received 990.95 131.00 5.00 Real Estate Income 81.92 20.35 24.82 Realized Thru Assets Disc 2,456.41 2.057.24 10,432.39 Deferred credits 1,500.00 500.00 2,400.00 Stockholders' Liability Settled. 25,000.00 40,000.00 15,000.00 CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $194,619.81 $335,084.16 $156,352.07 93 SUBDIVISION NO. 2, EXHIBIT C. STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 Verde! Wahoo Waverly $ 2,155.82 $ 5,672.24 $ 816.58 CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture and Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Book' Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT 92,861.63 1,750.00 43,960.98 10,203.29 3,400.14 69,028.27 196.25 2,159.11 12,347.66 542.14 113,792.03 3,009.39 300.00 6,924.39 798.34 4,979.04 500.00 5,960.11 1,437.00 3,089.00 1,129.64 56.92 1,978.16 515.72 8,400.07 1,938.22 1,927.55 2.05 4,968.95 16.82 31,454.80 72,804.65 6,147.13 624.26 4,835.72 25,782.95 110.25 8,098.52 10,063.22 6,898.05 48,522.94 29,307.47 $266,691.19 $142,708.11 $242,068.47 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits Not Classified Preferred Claims Receiver's Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc https://fraser.stlouisfed.org A._ Federal Reserve Bank of St. Louis $243,769.85 $100,792.88 16.82 34.84 625.82 2,056.02 217,037.25 27.38 2,149.64 60.10 94 2,190.92 345.07 3,644.70 805.64 645.28 SUBDIVISION NO. 2, EXHIBIT C. Verde! 832.56 1,800.00 18,000.00 Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK 3URPLUS $266,691.19 Wahoo 1,697.40 Waverly 4,935.60 35.000.00 15,000.00 $142,708.11 $242,068.47 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 N/ Winnetoon Western Wayside 573,09 $ 3,476.38 $ 1,634.19 CASH $ ASSETS NOT REALIZED: 128,499.49 '29,605.77 Bills Receivable 14.56 8.73 Overdrafts 2,422.50 Furniture and Fixtures 28,497.60 525.00 Real Estate 832.78 1,456.42 Judgments 749.37 442.41 Other Assets Acquired & Discovered: Bills Receivable Real Estate Judgments Chattels OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est, not on Books Claims in Disp. not on Books Loss on Assets CAPITAL IMPAIRMENT 1,877.66 169.72 863.97 308.22 144.85 25.00 117.04 330.00 712.63 169.73 4,290.39 17,869.11 2,052.61 5,656.76 57,937.40 61,547.63 $ 23,424.55 $104,688.49 $224,697.97 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receiver's Certificates Other Liabilities https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $203,682.97 66,132.98 95 SUBDIVISION NO. 2, EXHIBIT C. Wayside Claims in Dispute General Claims Bills Payable Rediscounts Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS Western Winnetoon 2,740.97 11,543.50 1,292.24 218.00 10.00 323.78 37.03 10,000.00 266.13 15.00 130.95 32.50 268.69 • 15,116.37 1,000.00 20,000.00 20,000.00 $ 23,424.55 $104,688.49 $224,697.97 STATEMENT OF CONDITION—NEW RECEIVERSHIPS February 5, 1929 Wolbach $ CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Furniture & Fixtures Real Estate Judgments Other Assets Acquired & Discovered: Bills Receivable . Real Estate Judgments Chattels OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not on Books Claims in Dispute https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 85,552.06 437.66 3,989.14 144.01 96 York 371.47 $ 4,458.81 35,490.48 362.59 2,816.25 48,356.67 33,494.03 434.99 88.35 6,545.62 500.00 1,835.98 1,288.76 2,404.37 232.27 878.59 6,263.95 1,720.67 10,582.38 1,777.23 4,185.69 1,989.77 SUBDIVISION NO. 2, EXHIBIT C. Wolbach .• York 15,061.57 54,391.80 27,870.35 32,920.18 Loss on Assets CAPITAL IMPAIRMENT $207,010.62 $179,435.07 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Deposits not Classified Preferred Claims Receiver's Certificates Other Liabilities Claims in Dispute General Claims Bills Payable Rediscounts Depositor's Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc. Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS 8.15 2,200.00 121,538.10 43,775.42 529.11 3,635.77 561.57 130,985.73 1,818.76 798.15 1.50 5,560.47 1,333.33 20,000.00 1,136.28 1,835.26 728.09 50,000.00 $207,010.62 $179,435.07 STATEMENT OF CONDITION—NEW RECEIVERSHIPS (Van E. Peterson, Receiver) February 5, 1929. Beverly Culbertson Bartley CASH 22.45 $ 1,306.86 $ 1,038.35 $ OPERATING COST: General Expense 7,502.87 2,544.90 5,267.05 Legal Expense 4,839.09 1,357.85 2,926.10 SUPPLEMENTARY CHARGES: Real Estate Expense 59.80 2,982.50 576.89 Interest Paid 4,318.59 1,144.99 1,235.33 Claims Estb. not shown on Books 3,791.52 9,156.89 812.76 Loss on Assets 100,149.08 12,701.94 36,391.85 CAPITAL IMPAIRMENT 4,133.30 8,312.07 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $48,248.33 $ 35,300.89 $129,023.81 97 •••-- SUBDIVISION NO. 2, EXHIBIT C. Bartley LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Preferred Claims Claims in Dispute General Claims Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Discovered Deferred Credits Stockholders Liability Settled CAPITAL STOCK SURPLUS Beverly Culbertson 53.82 406.73 17,910.96 154.56 17,799.94 4,437.57 115.80 586.26 1,092.51 3,546.76 20,000.00 151.74 1,703.64 300.01) 3,690.45 89,707.08 1,868.63 3,020.30 700.00 10,000.00 5,843.60 1,025.79 396.61 2,060.2s 6,000.00 20,000.00 $48,248.33 $ 35,300.89 $129,023.81 STATEMENT OF CONDITION—NEW RECEIVERSHIPS (Van E. Peterson, Receiver) February 5, 1929. CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets Acquired and Discovered: Real Estate Judgments Chattels OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Established Not Shown on Books https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 98 $ Union State Dix Harvard Hastings 1,687.83 $ 24.26 $ 697.84 25,467.56 72.63 101,550.38 63.77 6,364.28 119.18 7,650.25 1,070.63 2,300.00 19,470.34 4,100.00 142.11 12.60 5,272.87 3,375.70 825.04 1,541.88 4,426.91 6,557.21 378.92 3,323.30 320.62 5,155.47 3,509.44 15,544.89 4,340.07 1,050.00 si RDIVISION NO. 2, EXHIBIT C. Dix Claims in Dispute Not Shown on Books Loss on Assets CAPITAL IMPAIRMENT Union State Harvard Hastings 11,500.00 19,300.44 5.50 426,609.75 28,521.87 $110,339.73 $169,535.68 $492,415.66 11,500.00 2,809.17 102,420.00 1,592.39 41,573.79 38,000.00 56,841.34 3,026.05 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Claims in Dispute General Claims Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Discovered Deferred Credits Stockholders' Liability Settled CAPITAL STOCK SURPLUS 3,400.45 2,088.50 1,462.21 27,071.14 43,800.94 75,000.00 396.58 797.75 175.42 4,825.18 761.01 344.63 3,835.12 1,000.00 20,000.00 $110,339.73 338,000.00 25,000.00 25,000.00 1,436.76 $169,535.68 $192,415.66 STATEMENT OF CONDITION—NEW RECEIVERSHIPS (Van E. Peterson, Receiver) February 5, 1929. Cit. State Holdrege CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Other Assets Acquired and Discovered Bills Receivable Real Estate Judgments Chattels OPERATING COSTS: General Expense Legal Expense https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ Lorenzo 424.19 $ 10,146.81 32,294.08 McCook 555.40 $ 16,197.01 1,298.85 6,150.61 49.91 779.43 41,863.67 14,100.00 17,281.51 93,560.15 7,500.00 189,919.91 1,583.45 1,016.28 99 4,505.39 1,175.35 12,477.02 6,525.97 SUBDIVISION NO. 2, EXHIBIT C. Citizens State Holdrege SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Established Not Shown on Books Loss on Assets CAPITAL IMPAIRMENT Lorenzo McCook 4,409.99 3,776.08 507.04 681.37 13,059.82 6,736.55 575.83 94,736.83 2,114.70 11,742.60 510.04 961.57 88,075.01 $346,383.45 $ 45,488.27 $295,420.70 LIABILITIES NOT LIQUIDATED: Payable from Guananty Fund General Claims Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Discovered Deferred Credits Stockholders' Liability Settled CAPITAL STOCK SURPLUS 223,000.00 36,281.57 4,933.81 37.75 258.17 25,000.00 50,000.00 6,872.15 4,831.52 16,750.00 3,105.47 120,500.00 2,402.24 1,470.54 58.11 541.98 4,433.88 15,000.00 35,076.31 13,954.32 3,102.99 28,413.92 39,000.00 50,000.00 2,267.69 $346,383.45 $ 45,488.27 $295,420.70 STATEMENT OF CONDITION—NEW RECEIVERSHIPS (Van E. Peterson, Receiver) February 5, 1929 Monowi Naponee Potter $ 318.25 $ 43.60 $ 3,247.08 CASH ASSETS NOT REALIZED: 16,840.71 59,684.79 Bills Receivable Overdrafts 3.21 3,624.51 Real Estate Judgments 2,192.85 4,471.13 Other Assets 212.95 Acquired and Discovered: Bills Receivable 700.00 Real Estate 1,000.00 Judgments 2,620 77 OPERATING COSTS: 2,767.52 General Expense 3,095.70 6,394.12 2,536.54 Legal Expense 799.95 4,705.05 100 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SUBDIVISION NO. 2, EXHIBIT C. Monowi SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estab. not shown on Books Claims in Disp. not shown on Books Loss on Assets CAPITAL IMPAIRMENT Naponee Potter 734.80 7,552.69 918.40 2,001.27 699.29 5,056.81 18,854.44 1,656.73 7,312.83 136,262.81 40,715.02 14,082.38 4,050.00 36,794.81 19,775.17 $169,027.05 $ 85,971.12 $156,728.01 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Preferred Claims Claims in Dispute General Claims Accounts Payable Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc. Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK SURPLUS 12,000.0011,150.00 26,491.51 6.10 146,363.41 1,959.01 1,078.85 225.77 1,857.81 1,200.00 12,000.00 4,336.10 385.00 73,500.00 74,500.00 732.29 336.65 3.26 513.92 500.00 10,000.00 9,121.57 281.25 401.00 7,082.68 700.00 15,000.00 $169,027.05 $ 85,971.12 $156,728.01 STATEMENT OF CONDITION—NEW RECEIVERSHIPS (Van E. Peterson, Receiver) February 5, 1929 Taylor Stratton Riverton 92.26 CASH $ 2,190.63 $ 46.41 $ ASSETS NOT REALIZED: 31,998.76 Bills Receivable 15,201.13 161.08 Overdrafts 197.25 31,033.18 Real Estate 200.85 3,401.88 Judgments 117.40 231.08 Other Assets Acquired and Discovered: Judgments 11,209.23 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 101 SUBDIVISION NO. 2, EXHIBIT C. Riverton OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not shown on Books Loss on Assets CAPITAL IMPAIRMENT Stratton Taylor 2,180.62 747.53 3,523.46 1,794.85 1,453.82 557.73 1,649.45 1,626.20 889.35 64,838.14 7,636.60 3,866.17 3,753.35 2,650.73 20,578.34 11,577.09 2,465.49 1,747.9 64,103.01 10,294.82 $ 79,928.95 $110,780.04 $113,306.31 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund: Other Liabilities General Claims Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Disc. Deferred Credits Stockholders' Liab. Settled CAPITAL STOCK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 59,500.00 1,991.14 989.53 378.44 4,569.84 2,500.00 10,000.00 9.35 7,348.19 76,000.00 3,385.39 4,246.38 567.31 4,223.42 15,000.00 90,690.00 122.91 151.83 2,338.90 3.15 20,000.00 $ 79,928.95 $110,780.04 $113,306.84 SUBDIVISION NO. 2, EXHIBIT C. STATEMENT OF CONDITION—NEW RECEIVERSHIPS (Van E. Peterson, Receiver) February 5, 1929 Thedford CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets Acquired and Discovered: Bills Receivable Judgments OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Established Not Shown on Books Claims in Dispute Not Shown on Books Loss on Assets CAPITAL IMPAIRMENT $ 161.98 27,605.04 1,467.44 3,500.00 3,845.44 98.13 10,258.52 2,84,7.21 8,740.63 , 2,846.96 730.72 3,532.83 6,979.51 428.72 27,176.81 8,219.29 $108,439.23 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Claims in Dispute General Claims Depositors' Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Realized Thru Assets Discovered Deferred Credits CAPITAL STOCK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 428.72 7,676.44 74,650.00 1,534.97 1.282.66 466.65 12,399.79 10,000.00 $108,439.23 103 SUBDIVISION NO. 3, STATEMENT NO. 1. CONSOLIDATED STATEMENT OF FORTY-SIX OLD PECEIVERSHIPS February 5, 1929. $ CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets 28,734.91 $ 487,752.99 17,487.61 339,419.02 223,152.75 72,590.58 1,140,402.95 OPERATING COST: General Expense Legal Expense 154,899.91 86,437.46 241,337.::T SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est. not shown on Books Loss on Assets 42,570.76 122,719.86 368,473.14 5,557,011.40 6,090,775.16 2,099,442.97 CAPITAL IMPAIRMENT $9,600.693.31; LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable 8,275.00 2,000.00 342,415.67 6,871.94 231.41 359,794.02 Depositors Guaranty Fund -4 UPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liab. Settled https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6,626,451.23 225,233.85 46,775.93 121,183.87 525,195.12 104 SUBDIVISION NO. 3, STATEMENT NO. 1. 918,388.77 1,668,125.00 27,934.34 CAPITAL STOCK SURPLUS $9,600,693.36 SUBDIVISION NO. 3, EXHIBIT A. Statement of Assets, Estimated Cash Value, Liabilities and Net Recoveries in 46 Old Receiverships as of February 5, 1929. Total Assets, Cash and Unpaid Stockholders Liability in 46 $2,312,067.71 Old Receiverships Expect to realize in cash from above $ 146,440.00 Total Liabilities against Guaranty Fund in 46 Old Receiverships 10,275.00 Leaving a Net Recovery to be made for benefit of the Guaranty Fund of 136,165.00 (Note—The amount of the estimated cash value given is approximately 6% per cent of the book value. However, the estimated cash value was determined from the assets and not by a percentage basis.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 105 WEIP15 di SUBDIVISION NO. 3, EXHIBIT B. ULTIMATE LOSSES AND RECOVERIES IN 46 OLD RECEIVERSHIPS Estimated as of February 5, 1929. Town Aurora Bayard Blair Ceresco Chambers Hemingford Holdrege Kimball Lincoln Long Pine Merriman Milligan Morrill Newcastle Octavia, Omaha Omaha Oshkosh Plattsmouth Table Rock Waco Name of Bank American State Bank Farmers State Bank Banking House of A. Castetter State Bank of Ceresco South Fork State Bank First State Bank Holdrege State Bank Citizens State Bank American State Bank American State Bank American State Bank Nebraska State Bank Farmers & Merchants Bank Newcastle State Bank Octavia State Bank American State Bank Pioneer State Bank First State Bank Bank of Cass County Community State Bank Waco State Bank Loss $ 800.00 1,500.00 1,000.09 7,475.00 15,000.00 10,000.00 2,000.00 5,000.00 1,700.00 2,000.00 $8,275.00 Total Recoveries to be made for Guaranty Fund Total Loss to be paid by Guaranty Fund Recovery $ 5,000.00 2,000.00 35,950.00 5,750.00 2,000.00 8,000.00 4,000.00 1,000.00 17,540.00 20,000.00 5,000.00 $144,440.00 $144,440.00 8,275.00 $136,165.00 Net Recoveries for use of Guaranty Note—Trusts not listed above have no losses to be paid and any recov eries are very doubtful. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 106 SUBDIVISION NO. 3, EXHIBIT C. STATMENT OF CONDITION OF OLD RECEIVERSHIPS February 5, 1929. $ CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est., not on Books Loss on Assets CAPITAL IMPAIRMENT 1,011.46 754.86 1,034.48 786.67 648.33 997.21 247.98 852.88 4,837.94 139,624.75 37,171.30 41.23 584.63 18,910.68 165,845.03 76.67 8,851.89 165,918.38 22,814.98 $185,536.24 $187,544.89 $199,868.56 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liab. Settled CAPITAL STOOK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bayard Aurora Allen 440.32 517.78 $ 980.24 $ 10,625.00 2,000.00 871.01 140,670.16 151,377.44 143,547.08 245.07 99.65 5.25 13,750.00 30,000.00 1,067.80 35,000.00 4,445.31 14,245.92 25,000.00 $185,536.24 107 $187,544.89 $199,868.56 SUBDIVISION NO. 3, EXHIBIT C. STATEMENT OF CONDITION OF OLD RECEIVERSHIPS February 5, 1929. Belvidere CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Asets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est., not on Books Loss on Assets CAPITAL IMPAIRMENT $ 93.98 $ Bennett Berwyn 630.86 $ 556.83 1,800.00 3,900.00 941.50 577.65 2,094.49 2,575.52 4,677.98 1,922.54 166.12 3,130.82 2,994.46 34,647.63 1,085.65 51,912.81 29,146.01 14,394.98 5,517.30 174,743.24 8,379.01 $ 42,386.04 $ 89,411.46 $214,091.91 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 252.10 20,216.07 68,859.00 184,489.68 132.32 1,041.14 259.34 231.98 4,020.00 15,000.00 6,411.91 141.07 2,200.00 15,000.00 4,696.58 138.22 7,800.00 15,000.00 $ 42,386.04 $ 89,411.46 $214,091.91 108 1) SUBDIVISION NO. 3, EXHIBIT C. STATEMENT OF CONDITION OF OLD RECEIVERSHIPS February 5, 1929. CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est., not on Books Loss on Assets CAPITAL IMPAIRMENT Blair $ 1,121.11 flristow $ 145,902.57 2,358.04 189,957.55 59,927.15 2,320.00 Ceresco 539.11 57,137.76 '.80 6,290.00 2,303.15 11,183.10 2,525.49 7,410.74 5,578.25 1,065.85 134.46 13,761.03 702.21 34,138.07 11,176.24 271,383.65 10,132.62 2,054.57 2,063.85 51,018.40 5,676.96 227,011.80 78,513.16 $740,257.96 $340,521.78 $122,607.95 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8,044.58 603,000.00 19,856.69 9,557.18 7,510.75 333.34 100,000.00 31.13 302,900.34 110,994.18 3,154.00 892.45 499.28 1,613.77 25,000.00 10,000.00 $740,257.96 $340,521.78 $122,607.95 109 SUBDIVISION NO. 3, EXHIBIT C. STATEMENT OF CONDITION OF OLD RECEIVERSHIPS February 5, 1929. CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estb., not on Books Loss on Assets CAPITAL IMPAIRMENT $ Chambers Endicott Gering 739.26 $ 253.61 $ 151.30 3,700.00 500.00 2,027.24 281.16 43.33 2,705.80 32,356.78 6,313.88 209.50 100.95 4,006.09 1,133.75 39,622.40 366.04 13,590.89 178,198.11 29,960.95 $ 44,467.45 $ 43,886.46 $227,907.1'3 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 28,623.70 23,000.00 199,893.59 546.85 386.46 1,709.37 5,500.00 15,000.00 1,289.17 15.00 25,000.00 296.90 15,000.00 $ 44,467.45 $ 43,886.46 $227,907.13 110 SUBDIVISION NO. 3, EXHIBIT C. STATEMENT OF CONDITION OF OLD RECEIVERSHIPS February 5, 1929. Gross CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estb., not on Books Loss on Assets CAPITAL IMPAIRMENT $ 647.81 $ Gurley Hemingford 152.04 $ 957.46 3,719.68 4,007.38 2,142.61 446.42 6,245.52 675.51 294.81 10,354.33 2,032.34 78,311.26 4,198.35 241.44 1,228.53 76,350.14 21,376.76 2,691.49 171,080.35 11,201.57 $103,565.96 $100,709.41 $194,080.43 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receiver's Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2,000.00' 10,501.00 81,737.00 67,000.00 146,500.00 1,302.96 25.00 927.70 616.76 2,243.07 9,921.88 20,000.00 3,691.94 730.97 690.83 5,466.69 35,000.00 10,000.00 $103,565.96 $100,709.41 $194,080.43 111 A SUBDIVISION NO. 3, EXHIBIT C. STATEMENT OF CONDITION OF OLD RECEIVERSHIPS February 5, 1929. Henry CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est., not on Books .... Loss on Assets CAPITAL IMPAIRMENT LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 112 Homer $ Kilgore 223.77 $ 13.71 8,500.00 6,614.83 266.23 4,058.20 4,156.99 1,378.23 984.35 2,306.69 11,054.66 5,653.17 76,540.19 14,718.51 7,873.99 151,570.60 67,078.54 826.00 8,497.46 156,398.76 22,861.59 $123,347.59 $237,268.78 $190,960.10 10,012 .— 9.39 100,000.00 183,163.00 147,022.78 841.23 1,037.48 8,500.00 10,000.00 7,437.15 3,758.89 711.85 17,197.89 25,000.00 251.51 7,832.26 25,000.00 $123,347.59 $237,268.78 $190,960.11) 3,800.72 SUBDIVISION NO. 3, EXHIBIT C. STATEMENT OF CONDITION OF OLD RECEIVERSHIPS. February 5, 1929. $ CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense ... Interest Paid Claims Estb. not on Books Loss on Assets CAPITAL IMPAIRMENT Kimball A.S. Lincoln M.S.Lincoln 89.70 $ 1,428.54 $ 1,955.07 4,416.81 2,694.95 22,410.25 5,038.80 320,914.20 42,022.62 61,898.55 335.22 2,590.00 77,073.95 5,738.21 10,212.50 7,582.79 7,911.30 1,000.00 2.75 824.10 992.31 10,482.43 79,459.48 155,436.30 2,857.15 11,493.12 $397,587.33 $410,760.87 $ 28,512.93 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income .......• • • • Deferred Credits Stockholders Liability Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 26,754.48 299,850.00 242,500.00 6,559.40 28,708.26 1,031.52 13,391.93 50,000.00 13,652.61 25,900.00 100,000.00 1,362.93 25.00 27,125.00 $397,587.33 $410,760.87 $ 28,512.93 118 SUBDIVISION NO. 3, EXHIBIT C. STATEMENT OF CONDITION OF OLD RECEIVERSHIPS. February 5, 1929. A. S. Long Pine CASH AASETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estb. not on Books Loss on Assets CAPITAL IMPAIRMENT $ 564.05 $ Maskell 380.73 $ 257.21 7,756.18 982.20 4,000.00 2,298.11 2,963.56 185.14 2,270.15 1,027.00 2,719.87 759.70 2,816.09 843.85 697.93 2,415.63 261,078.38 61,783.49 4,318.83 296,170.99 14,314.48 $343,375.41 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income • • • . Deferred Credits Stockholders Liability Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B. C. Long Pine 58,889.40 81,558.14 $308,661.39 $159,014.31 31,948.53 277,804.56 168,246.00 130,837.57 945.93 4,111.08 421.51 624.92 14,000.00 50,000.00 819.30 50,000.00 50,000.00 3,536.48 155.23 7,600.00 20,000.00 $343,375.41 $308,661.39 $159,014.31 414 SUBDIVISION NO. 3, EXHIBIT C. STATEMENT OF CONDITION OF OLD RECEIVERSHIPS. February 5, 1929. Milligan • CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense .... Interest Paid Claims Estb. not on Books Loss on Assets CAPITAL IMPAIRMENT $ 78.07 $ Morrill Newcastle 2.50 135.87 $ 26,896.15 86,494.61 7,280.50 1,935.19 506.11 4,199.52 14,417.97 30,516.46 56,451.90 3,846.03 724.80 5,231.98 2,007.19 21.00 4,964.58 2,282.75 10,259.23 338,160.74 141.557.61 2,422.63 177,484.88 21,502.34 $113,450.53 $206,137.55 $419,792.53 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liability Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 800.00 75,309.72 173,000.00 375,677.50 338.56 5,879.45 17,002.25 20,000.00 258.11 1,999.99 25,000.00 2,741.07 7,370.80 2,903.16 1,100.00 30,000.00 $113,450.53 $206,137.55 $419,792.53 115 SUBDIVISION NO. 3, EXHIBIT C. STATEMENT OF CONDITION OF OLD RECEIVERSHIPS. February 5, 1929. CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Estb. not on Books Loss on Assets CAPITAL IMPAIRMENT $ Obert 250.3 Octavia $ 93.02 $ Ogallala 56.03 2,068.03 403.85 660.19 748.57 3,633.82 2,218.53 2,654.05 169.14 1,287.00 34,408.37 46,794.57 50,058.44 953.90 4,182.54 54,974.33 158,028.76 13,402.44 400.00 97,857.43 43,053.90 $146,687.64 $134,219.30 $237,450.35 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liability Settled . CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7,475.00 106,260.68 108,708.00 69,663.49 122.14 1,708.00 587.32 13,009.50 26,000.00 640.57 25.00 2.40 7,368.33 10,000.00 7,878.78 3,648.96 6,259.12 75,000.00 75,000.00 $146,687.64 $134,219.30 8237,450.35 116 SUBDIVISION NO. 3, EXHIBIT C. IPS. STATEMENT OF CONDITION OF OLD RECEIVERSH February 5, 1929. Pioneer St. Oshkosh Omaha 2,335.77 $ 1,057.27 $ $ 1,003.36 Am St. Omaha CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est., Not on Books Loss on Assets CAPITAL IMPAIRMENT 485.00 35.89 18,823.79 6,425.15 25,358.00 2,000.00 7,800.00 10,535.53 7,157.45 7,218.49 1,584.79 687.60 1,685.00 13,819.71 412,281.33 174,460.42 794.27 83.50 200.00 426,011.98 2,193.25 43,923.69 $630,742.80 $436,072.53 $101,145.91 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liability Settled . CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 16,000.00 369,841.00 161,327.00 47,000.00 2,369.62 1,662.88 12,051.05 28,818.25 200,000.00 14,565.64 76.56 2,481.74 1,713.77 47,464.72 200,000.00 11,001.40 24,000.00 25,000.00 2,587.61 $630,742.80 $436,072.53 $101,145.91 117 SUBDIVISION NO. 3, EXHIBIT C. STATEMENT OF CONDITION OF OLD RECEIVERSHIPS. February 5, 1929. Plattsmouth Sholes Sidney $ 2,031.02 $ 2,230.19 $ 353.36 CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est., Not on Books Loss on Assets CAPITAL IMPAIRMENT 14,976.44 273.72 • LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liability Settled . CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2,000.00 2,911.52 3,293.53 1,281.27 708.04 111.75 4,724.04 770.76 1,128.63 177.43 13.20 860.29 224,948.72 23,153.71 339.45 92,210.39 2,855.65 153,593.36 40,411.86 $256,697.17 $113,938.93 $204,722.2S 339.45 4,871.94 164,101.92 88,092.29 895.39 8,537.77 762.09 32,400.00 50,000.00 177.50 5,400.00 4,057.75 11,000.00 129.06 4,008.90 50,000.00 $256,697.17 $113,938.93 $204,722.23 118 146,500.00 4,084.27 SUBDIVISION NO. 3, EXHIBIT C. S. STATEMENT OF CONDITION OF OLD RECEIVERSHIP 1929. February 5, Springfield Table Rock Valparaiso 49.18 939.88 $ 2,795.02 $ $ CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est., Not on Books Loss on Assets CAPITAL IMPAIRMENT 11,699.13 3,218.13 500.00 13,364.91 11,661.34 116,006.51 11,265.81 29,559.95 13,257.38 8,552.92 1,428.51 496.72 1,044.18 1,039.83 2,934.96 135.33 199.81 103.61 2,368.57 1,387.28 74,023.42 5,624.83 3,162.57 11,568.39 22,489.12 712.60 12,724.80 164,128.62 $ 84,100.45 $112,646.23 $359,696.63 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liability Settled . CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1,500.00 2,800.00 56,926.74 75,000.00 311,878.44 4,565.89 75,00 5,132.82 900.00 15,000.00 6,036.42 636.10 805.91 14,560.43 6,815.75 25,000.00 309.81 8,500.00 20,000.00 $ 84,100.45 $112,646.23 $359,696.63 119 SUBDIVISION NO. 3, EXHIBIT C. STATEMENT OF CONDITION OF OLD RECEIVERSH IPS. February 5, 1929. Waco CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est., Not on Books Loss on Assets CAPITAL IMPAIRMENT $ LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund ,. SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liability Settled . CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Walton 619.96 $ Waterloo 167.04 $ 692.92 1,064.12 238.68 561.98 364.02 1,787.79 352.95 1,350.08 4,170.42 4,216.51 26,082.99 43.50 6,101.40 20,910.09 32,268.58 963.70 53,425.82 7,690.55 $ 37,742.76 $ 60,416.61 $ 64,913.73 15,000.00 46,190.00 38,483.22 1,601.97 192.58 27.30 536.73 3,470.00 10,000.00 5,611.88 67.52 6,073.27 15,000.00 818.63 20,000.00 $ 37,742.76 $ 60,416.61 $ 64,913.73 120 TRUiroMelk SUBDIVISION NO. 3, EXHIBIT C. STATEMENT OF CONDITION OF OLD RECEIVERSHIPS February 5, 1929. $ CASH ASSETS NOT REALIZED: Bills Receivable Overdraft's Real Estate Judgments Other Assets OPERTAING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est., Not on Books Loss on Assets CAPITAL IMPAIRMENT Merriman Winside 792.47 $ 11,200.00 19,443.50 20,078.57 2,266.08 736.85 4,386.94 476.90 39,636.51 239,871.49 41,927.25 4,627.34 57,371.70 $377,336.73 $ 65,478.87 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10,312.10 259,759.08 56,677.37 3,524.48 22,063.70 25,000.00 190.89 30,000.00 4,208.78 766.93 9,200.00 15,000.00 6,112.27 $377,336.73 $ 65,478.87 121 SUBDIVISION NO. 3, EXHIBIT C. STATEMENT OF CONDITION OF OLD RECEIVERSHIPS February 5, 1929. Dunning CASH ASSETS NOT REALIZED: Bills Receivable Overdrafts Real Estate Judgments Other Assets OPERATING COSTS: General Expense Legal Expense SUPPLEMENTARY CHARGES: Real Estate Expense Interest Paid Claims Est., Not on Books Loss on Assets CAPITAL IMPAIRMENT $ Holdrege 90.68 $ 266.43 3;000.00 182.49 372.25 1,262.92 1,212.34 680.91 1,773.92 1,611.48 61,799.06 149,761.83 26,644.45 152,312.78 $156,639.11 $244,332.43 LIABILITIES NOT LIQUIDATED: Payable from Guaranty Fund Preferred Claims Receivers Certificates General Claims Bills Payable Accounts Payable Depositors Guaranty Fund SUPPLEMENTARY CREDITS: Interest Received Real Estate Income Deferred Credits Stockholders Liab. Settled CAPITAL STOCK SURPLUS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 22,535.19 189,919.91 85,500.00 30,403.92 3,200.00 15,000.00 10,797.52 865.00 2,750.00 40,000.00 $156,639.11 $244,332.43 122 I SUBDIVISION NO. 4, STATEMENT NO. 1. CONSOLIDATED STATEMENT OF SEVENTY SALE ASSETS February 5, 1929. Nominal Value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets $ 86,913.58 3,131,693.91 704,038.14 24,970.73 63,687.53 42,574.35 4,053,878.24 3,885,496.83 Allowance for Doubtful Assets Book Value of Assets Cash Operating Cost: General Expense Legal Expense $168,381.41 18,967.33 49,851.46 8,787.28 58,638.74 Supplementary Charges: Real Estate Expense Loss on Realization 4 tp, 26,294.93 9,397.39 Depositors Guaranty Fund (Excess of refunds over amount bid for Assets) Liabilities not Liquidated Depositors Guaranty Fund Accounts Payable 35,692.32 23,606.88 $305,286.68 167,381.07 414.24 167,795.31 Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13,479.31 28,081.14 95,871.28 59.64 137,491.37 $305,286.68 123 SUBDIVISION NO. 4, EXHIBIT A. STATEMENT OF ASSETS, ESTIMATED CASH VALUE AND NET RECOVERIES IN 70 SALE ASSE1 TRUSTS AS OF FEBRUARY 5, 1929 (Note:—The division of work carried on our books as "Sale Assets" is a record of the assets purchased by the Guarantee Fund Commission from receivers of failed banks as provided for under Section 32. Chapter 191, Session Laws for 1923. The receiver offers the remaining assets of his trust at public sale and the Commission may buy the same and the law provides for the giving of the Commission's receipt to the receiver which is considered by him the same as cash. On our books the assets are carried both at the face or nominal value and also at the book value which is the amount bid for the assets at the sale. These assets are realized upon and the cash received less the expense incurred, is refunded to the Depositors' Guaranty Fund for the benefit of other claimants against that Fund. In handling a large amount of such assets we find that we are, on an average, able to realize, after the deduction of expense, more than the amount bid. So in the following estimate the book value or amount bid is used as the cash value, plus the cash on hand.) Total Face, or Nominal Value of Assets in 70 Trusts Estimated Cash Value (Book Value) of Assets Cash on hand Total Estimated Net Recovery to be made for the benefit of the Guaranty Fund https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 124 $4,072,845.57 $168,381.41 18,967.33 $187,348.74 SUBDIVISION NO. 4, EXHIBIT B. STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929. Ames Allen Adams Nominal Value of Assets Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets 11,600.09 6,356.90 189.30 84,133.48 9,374.25 1,202.68 800.00 394.92 886.50 697.20 95,905.33 94,133.33 17,966.99 17,247.49 189.30 138.07 1,772.00 377.19 719.50 267.50 32.50 1,351.45 304.70 146.80 697.20 Allowance for Doubtful Assets Book Value of Assets Cash Operating Cost: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund 10.00 2.45 1,192.50 Liabilities Not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits $ 4,695.59 229.87 4,638.00 127.00 57.59 2.50 1,309.00 130.00 $ 1,438.50 359.87 $ 359.87 $ 4,695.59 $ 1.438.50 STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929. Angus Angora Nominal Value of Assets: Assets Acquired Bills Receivable https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 11,463.8(1 125 Anselmo 1,833.31 $ 40,250 1 6,087.20 SUBDIVISION NO. 4, EXHIBIT B. Judgments Overdrafts Real Estate Other Assets Allowance for Doubtful Assets Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund Angora 2,998.74 573.41 Angus 5,786.37 193.28 AnseImo 17,902.67 83.77 72.74 20.00 15,119.72 14,965.33 154.39 310.26 13,972.90 13,188.96 783.94 124.38 58,172.98 57,786.43 386.55 798.88 246.80 52.09 5.00 3,001.66 234.32 8.55 250.00 $ Liabilities not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits $ 185.15 970.00 $ 965,41 970.00 851.91 64.05 3.29 446.09 110.21 4,096.42 970.00 $ 965.41 $ $ 4,606.56 4,606.56 STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929. Aurora Nominal Value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bartley Bayard 13,387.83 764.81 1,800.99 115.00 360.00i 14,627.64 126 566.96 284.23 566.96 2,085.22 SUBDIVISION NO. 4, EXHIBIT B. Aurora Bayard 2,085.22 Bartley 14,497.64 Allowance for Doubtful Assets 130.00 20.00 Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund 566.96 22.08 537.30 474.71 400.00 $ Liabilities Not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits 150.00 $ 5s9.0,1 150.00 589.04 $ 1,412.01 171.16 1.240.87; 150.00 $ 589.04 $ 1,412.01 STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929. Bennett Nominal Value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets 11.•‘ 11,732.92 17,924.23 236.65 29,893.80 27,852.80 Allowance for Doubtful Assets Book Value of Assets Cash https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Berwyn 2,041.00 250.00 127 4.02 55.68 SUBDIVISION NO. 4, EXHIBIT B. Bennett Berwyn Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund $ Liabilities Not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits Beverly 1,221.41 157.75 220, 59.99 883.82 172.38 2,291.00 $ 2,326.99 2,141.00 $ 250.06 2,100.00 21.00 250.06 226.99 129.00 $ 2,291.00 $ 2,326.99 $ 250.06 STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929 Bostwick Nominal Value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets 400.00 50.00 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Broadwater 85,100.36 2,325.53 36.12 310.00 654.82 34,143.44 928.02 97.63 $ 450.00 $ 88,169.09 $ 35,169.09 35,082.09 87,873.33 $ 450.00 $ 483.44 Allowance for Doubtful Assets Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Bristow 553.50 $ 87.30 84.00 2.35 5.66 128 89.10 87.00 59.96 SUBDIVISION NO. 4, EXHIBIT B. Bristow Bostwich Broadwater 304.90 Loss on Realization Depositors Guaranty Fund Liabilities Not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits 3.19 $ 1,244.00 $ 816.25 $ 150.15 $ 1,200.00 $ 658.50 $ 125.00 25.15 106.50 51.25 44.00 $ 1,244.00 $ 816.25 $ 150.15 STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929 1,790.00 53.24 Liabilities Not Liquidated: Depositors Guaranty Fund https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 696.13 $ 10,332.12 118,595.05 6,077.84 1,520.73 52.97 1,280.00 $126,649.02 $ 11,905.82 11,858.82 122,155.25 $ 1,843.24 $ 1,843.24 $ 4,493.77 $ 755.67 1,050.13 Allowance for Doubtful Assets Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund Chambers Carroll Bushnell Nominal Value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets 252.98 108.10 1,162.55 225.45 3.50 108.96 155.28 47.00 $ 3,366.91 $ 6,792.72 $ 47.00 $ 3,221.16 $ 6,280.00 47.00 129 $ SUBDIVISION NO. 4, EXHIBIT B. Bushnell Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits Carroll 312.72 200.00 145.75 $ 3.366.91 Chambers $ 6,792.72 $ 47.00 STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929 Crawford Crookston Culbertson Nominal Value of Assets: Assets Acquired $ 4,537.50 $ Bills Receivable 59,165.39 49,991.31 Judgments 11,236.79 14,109.80 Overdrafts 44.68 471.83 Real Estate 1,601.00 1,600.00 692.50 Other Assets 297.67 Allowance for Doubtful Assets Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund Liabilities Not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits $ 72,345.53 $ 71,402.94 70,025.16 62,059.44 $ I 9,343.50 1,040.04 51.01 1,546.30 35.30 264.80 1,129.66 99.94 41 1,092.23 $ 1,192.92 8,744.50 $ 1,192.92 $ 2,674.90 $ 13.094.80 $ 2,410.90 264.00 $ 130 „. . iteffetar:relti..L;i, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2,320.37 $ 38.72 $ 1,443.67 2,003.74 902.89 2,674.90 $ 13,094.80 $ 1,192.92 SUBDIVISION NO. 4, EXHIBIT B. STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929 Florence Dixon Nominal Value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets Allowance for Doubtful Assets 200.00 240.09 $162,943.20 148,390.10 $ 18,497.36 $ 46,320.08 44,956.49 18,072.36 425.00 $ 235.30 Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund 1,363.59 $ 14,553.10 539.64 43.79 1,253.46 250.00 414.70 6.90 2,612.51 $ Liabilities Not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits $ 3,128.00 132,435.04 19,471.60 243.56 7,665.00 37,318.32 8,561.67 18,135.68 339.61 22.07 $ 1,075.00 $ 475.00 $ 1,414.28 $ 19,208.71 $ 15,000.00 1,414.28 287.17 3,264.30 657.24 600.00 $ — 1,075.00 $ 1,414.28 $ 19,208.71 STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929 Curley Gross Nominal Value of Assets: Assets Acquired Bills Receivable Judgments https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Gering 51,395.87 3,189.03 Hadar 1,544.29 1,302.51 SUBDIVISION NO. 4, EXHIBIT B. Gross 31.31 100.00 35.00 Overdrafts Real Estate Other Assets $ 54,751.21 54,490.21 Allowance for Doubtful Assets $ Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund $ Liabilities Not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization ...... • • • Deferred Credits Gurley 5.00 $ 5.00 $ 2,846.80 2,445.80 5.00 $ 280.32 401.00 92.46 83.70 19.36 141.00 421.65 3.00 57.86 123.65 261.00 $ 55.34 477.26 $ 549.97 $ 106.26 108.00 477.26 918.11 305.00 263.00 $ Hadar $ 32.59 172.23 517.38 440.88 549.97 $ 918.11 STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929 Hooper Henry Homer Nominal Value of Assets: $ 462.00 $ 3,500.00 $ Assets Acquired 1,813.47 56,520.15 Bills Receivable 78,094.28 Judgments Overdrafts Real Estate Other Assets 15,286.63 131.36 Allowance for Doubtful Assets .... Book Value of Assets https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 132 58.86 1,500.00 5.00 57,172.37 55,810.17 98,385.91 92,658.91 _1,813.47 1,788.47 1,362.20 5,727.00 25.00 SUBDIVISION NO. 4, EXHIBIT B. Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund Henry 267.13 Homer 745.22 Hooper 359.07 2,012.23 24.70 720.38 3.50 579.43 11.50 213.18 1,643.10 2,500.00 $ 6,379.44 $ 8,839.20 $ Liabilities Not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization I /ererred Credit s 432.20 5,947.24 975.00 6,837.00 950.00 40.00 1,387.20 575.00 25.00 $ 6,379.44 $ •8,839.20 $ 975.00 ASSETS STATEMENT OF CONDITION OF SALE February 5, 1929 Kimball Kilgore Hoskins Nominal value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets $ Allowance for Doubtful Assets Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 133 930.00 $ 6,642.88 $ 1,200.00 119,673.33 34,862.76 15,384.49 22,717.59 401.94 374.76 600.00 20.00 58,885.11 56,948.11 142,722.64 137,001.48 1,200.00 650.00 1,937.00 59.68 5,721.16 238.66 550.00 97.16 518.60 16.00 2,570.06 216.56 231.10 SUBDIVISION NO. 4, EXHIBIT B. Hoskins Kilgore Real Estate Expense Loss on Realization Depositors Guaranty Fund Kimball 200.64 $ Liabilities Not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits 2,531.28 $ 8,947.08 $ 1,004.00 1,997.00 7,028.23 850.00 233.04 261.48 301.95 1,355.42 154.00 301.24 $ 125.71 2,531.28 $ 8.947.08 $ 1.004.00 STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929 Amer St. Long Pine Nominal Value of Assets: Assets Acquired Bills Receivable , Judgments Overdrafts Real Estate Other Assets $ 10,190.85 $ 26,594.52 125,024.98 146,366.31 76,237.71 48,861.29 444.54 34.94 5,840.00 426.00 7,366.15 Allowance for Doubtful Assets Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Brown Co. Long Pine 67,782.72 99.00 218,164.08 210,947.97 229,223.21 209,883.65 67,881.72 67,445.72 7,216.11. 1,014.92 19,339.56 457.09 436.00 5,557.82 1,544.63 5,963.91 1,710.15 1,136.51 170.13 2,799.62 2,850.40 89.05 190.05 $ 18,133.10 $ 30,321.11 $ 134 Lyons 2,021.76 SUBDIVISION NO. 4, EXHIBIT B. Amer St. Brown Co. Long Pine Long Pine Liabilities Not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits 6,857.61 14,254.00 1,190.20 2,884.90 7,200.39 3,030.47 1,242.58 11,794.06 Lyons 1,741.00 20.76 260.00 $ 18,133.10 $ 30,321.11 $ 2,021.76 STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929. NI(•(;1'1•NN Nominal Value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets 26,669.15 6,469.29 592.20 1,142.24 201.84 91.77 13,665.72 13,000.10 35,074.72 33,226.48 91.77 422.71 665.62 68.92 1,848.24 52.51 10.00 600.00 30.00 787.97 I ) Allowance for Doubtful Assets 379.45 25.00 1,544.00 $ 1,124.48 $ Liabilitities not Liquidated: Depositors Guaranty Fund Accounts Payable https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Merriman 10,545.70 1,708.30 257.88 500.00 653.84 91.77 Book Value of Assets Cash Operatiing Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund Macy 1,124.48 135 789.54 $ 4,612.17 789.54 SUBDIVISION NO. 4, EXHIBIT B. McGrew Macy Merriman Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits 731.67 3,880.5) $ 1,124.I" 789.54 $ 4,612.17 STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929. Milligan Nominal Value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets Atlas Bank Neligh $ Allowance for Doubtful Assets Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund 138.50 62,334.43 35,927.95 1,714.70 2,550.00 8,860.99 60,308.44 12,812.47 4,412.19 200.00 6.00 268.75 15,823.18 14,788.68 73,326.91 72,973.91 100,384.33 99,132.01 1,034.50 353.00 97.50 45.50 30.00 2.00 ( 1,252.29 167.61 89.47 45.50 1,650.00 $ 1,080.00 $ Liabilities not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Monowi 1,070.00 10.00 136 2,178.00 $ 1,509.37 2,103.00 1,404.29 SUBDIVISION NO. 4, EXHIBIT B. Milligan Real Estate Income Gain on Realization Deferred Credits Monowi 75.00 Atlas Bank Neligh 105.0k 1,509.37 $ 1,080.00 $ 2,178.00 $ STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929. Neligh St. Newcastle Nickerson of Assets: Nominal Value 439.36 $ 1,975.00 $ $ Assets Acquired 108,777.45 143,807.36 3,270.27 Bills Receivable 7,933.50 2,118.91 12,559,17 Judgments 1,276.15 44.85 Overdrafts Real Estate Other Assets Allowance for Doubtful Assets Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund 6,231.00 17,443.87 30.00 1,473.5X 39,504.31 32,039.31 146,440.48 145,743.98 121,435.68 120,555.90 7,465.00 2,015.01 696.50 603.88 879.78 94.10 435.35 187.97 7.90 770.00 418.35 1,793.50 285.22 2,417.15 $ 11,708.86 $ 1,496.25 $ Liabilities not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6,49,0.00 156.00 1,882.16 3,180.70 822.50 107.46 673.75 2,339.99 $ 11,708.86 $ 1,496.25 $ 2,447.45 137 SUBDIVISION NO. 4, EXHIBIT B. STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929. Niobrara Nominal Value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets Allowance for Doubtful Assets Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund 15.11 Obert Octavia 59,127.88 12,490.65 22,360.51 4.40 15.00 1.00 59,142.88 58,732.38 34,856.56 34,819.56 410.50 69.67 37.00 10.00 378.63 86.85 676.21 2,489.36 $ Liabilities not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits 1.15 600.00 3,646.16 $ 1,081.32 $ 47.00 2,932.00 1,010.50 42.00 714.16 70.82 5.111) $ 3,646.16 $ 1,081.32 $ 47.00 STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929. A. S. Omaha Nominal Value of Assets: Assets Acquired Bills Reeclvable https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 2,996.84 191,894.78 138 Sec'y St. P. S. Omaha Omaha $ 153,914.03 840.91 $ 242,340.11 SUBDIVISION NO. 4, EXHIBIT B. Sec'y St. A. S. Omaha P. S. Omaha Omaha 65,262.31 25,339.37 1,796.25 Judgments Overdmfts Real Estate Other Assets Allowance for Doubtful Assets 1,064.00 2,610.00 223,091.24 221,568.24 221,786.34 213,114.34 1,523.00 403.33 8,672.00 892.89 162.00 331.88 1.00 Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplernentarly Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund 243,181.05 243,181.05 927.11 1,814.47 2.50 3.75 12.00 $ $ 2,993.22 $ 9,004.88 Liabilities not Liquidated: Depositors Guaranty Fund .... Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization referred Credits 2,747.s1; 8,673.00 331.30 2,159.00 54.30 100.00 2,647.86 .58 779.92 $ 2,993.22 $ 9,004.88 $ 2,747.8i; ION OF SALE ASSETS STATEMENT OF CONDIT February 5, 1929. Papillion Page Orchard Nominal Value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 310.33 1,239.39 $ 45,508.89 61,499.84 9,755.78 154.75 2,496.99 9,138.61 832.29 1,264.88 305.00 310.33 72,337.59 $ 139 59,858.83 SUBDIVISION NO. 4, EXHIBIT B. Orchard Page 69,415.94 Allowance for Doubtful Assets Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund 310.33 59.63 Papillion 57,494.66 2,921.65 170.26 2.364.17 312.71 2,672.24 77.20 160.00 • 51.08 $ Liabilities not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits '369.96 $ 5,841.35 $ 2,887.96 369.96 4,30445 2,500.00 447.80 1,089.40 $ 367.96 20 00 369.96 $ 5,841.35 $ 2,887.96 STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929. Plattsmouth Nominal Value of Assets: Assets Acquired Bills Recenvable Judgments Overdrafts Real Estate Other Assets $ 3,263.31 9,508.98 36,065.73 Allowance for Doubtful Assets Book Value of Assets Cash https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 140 Pleasanton ltandolpii $ 39,565.10 5,163 1", 25.00 32.1111 48,863.02 46,018.02 44,760.85 44,046.85 2,845.00 46.60 714.00 56.09 SUBDIVISION NO. 4, EXHIBIT B. Plattsmouth Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund Pleasanton Randolph 9.0.0 15.00 51.00 17.40 4,366.90 $ 2,960.00 $ 4,366.90 $ Liabilities not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits 794.00 719.00 2,915.00 15.00 4,366.90 $ 2,960.00 $ 4,366.90 $ 75.00 794.00 SALE ASSETS STATEMENT OF CONDITION OF 1929 5, February Richfield Nominal Value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets $ Santee 191.30 $ 223.29 $ 6,527.65 24,119.60 27,807.31 1,874.35 318.11 115.00 Allowance for Doubtful Assets Book Value of Assets Cash Operating Costs: General Expense Legal Expense https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Royal 141 30,223.06 29,929.06 24,119.60 23,828.60 6,833.95 6,600.65 294.00 291.00 851.15 233.30 7.41 8.92 525.49 246.00 SUBDIVISION NO. 4, EXHIBIT B. Richfield Royal Santee Supplementary Charges: Real Hstate Expense Loss on Realization Depositors Guaranty Fund $ Liabilities not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Incom,, Gain on Realization Deferred Credits 310.33 $ 309.00 1.33 $ 310.33 $ 1,667.64 $ 1,417.00 354.43 8.15 147.39 13.27 103.25 103.45 1,667.64 $ STATEMENT OF CONDITION OF SALE ASSETS February 5, 1929 Shelton Sholes Nominal Value of Assets: Assets Acquired $ 5,340.49 $ 1,343.90 $ Bills Receivable 65,719.14 26,416.76 Judgments 10,900.00 6,960.96 Overdrafts 332.03 Real Estate Other Assets 479.30 Sidney 7,600.00 69,738.83 13,127.24 29,180.00 $ 82,291.66 $ 34,721.62 $119,647.07 82,291.66 32,937.62 82,260.92 Allowance for Doubtful Assets Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 479.30 $ $ 262.86 1,784.00 $ 37,386.15 60.46 241.56 2,022.76 1,785.16 813.69 112.30 3,077.84 66.70 1,911.81 234.45 8,219.46 14,167.26 $ 20,149.85 142 $ 3,004.90 $ 48,991.71 SUBDIVISION NO. 4, EXHIBIT B. Sholes Sheldon Liabilities Not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Incom“ Gain on Realization Deferred Credits $ $ 20,149.85 481.00 $ 22,566.00 655.89 10,279.36 15,490.46 1,035.32 946.96 1,977.50 17,225.39 $ Sidney 1,428.94 59.64 $ 3,004.90 $ 48,991.71 SALE ASSETS STATEMENT OF CONDITION OF February 5, 1929 Springfield Nominal Value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets Allowance for Doubtful Assets Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund Liabilities Not Liquidated: Depositors Guaranty Fund Accounts Payable https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Springview 284.07 $ 23,527.24 26,349.24 170.78 1,000.00 8.00 Valentine 3,265.61 334.62 32.55 88,965.16 26,307.83 400.40 386.00 148.00 9 $ 51,339.33 $ 3,632.78 $116,207.3 110,975.89 3,527.23 49,720.01 $ 1,619.32 $ 337.54 105.55 $ 4.11 5,231.50 39.11 858.21 79.35 406.82 203.41 46.55 $ 3,097.83 $ 109.66 $ 5,723.98 597.25 $ 109.66 $ 4,557.50 $ 143 SUBDIVISION NO. 4, EXHIBIT B. Springfield Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits Springview Valentine 456.48 480.00 1,564.10 $ 6.48 1,160.00 3,097.83 $ 109.66 $ 5,723.9N STATEMENT OF CONDITION OF SALE ASSETS . February 5, 1929. Walton Nominal Value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets 10,012.90 817.54 Allowance for Doubtful Assets 11,130.44 10,155.44 \Val orIc)(, 250.00 50.00 Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund 975.00 66.50 1.05 602.20 185.63( 59.13 435.00 • $ Liabilities Not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1042.55 $ 1,281.96 1,010.00 17.55 1,216.78 65.18 15.00 $ 144 1042.55 $ 1,281.96 k SUBDIVISION NO. 4, EXHIBIT B. STATEMENT OF CONDITION OF SALE ASSETS. February 5, 1929. Wayside Nominal Value of Assets: Assets Acquired Bills Receivable Judgments Overdrafts Real Estate Other Assets $ 1,322.00 132,311.93 56,215.07 32.66 160.00 5.00 25.50 11,520.72 Allowance for Doubtful Assets Book Value of Assets Cash Operating Costs: General Expense Legal Expense Supplementary Charges: Real Estate Expense Loss on Realization Depositors Guaranty Fund 11,546.22 11,394.72 190,046.66 189,025.66 151.50 226.86 1,021.00 404.61 313.90 927.60 85.00 35.79 343.50 $ Liabilities Not Liquidated: Depositors Guaranty Fund Accounts Payable Supplementary Credits: Interest Received Real Estate Income Gain on Realization Deferred Credits https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Winside 1,035.76 4; 2,474.51 , 1,341.00 290.72 18.00 1,017.76 $ 145 1,035.76 $ 842.78 2.474.50 List Showing Amounts Paid from Depositors' Guaranty Fund in Failed Banks During the Operation of the Depositors' Guaranty Law Town Superior Decatur Halsey Valparaiso Aurora Page Dunning Merriman Ceresco Blair Long Pine Hoskins Hadar Oshkosh Allen Pleasanton Belvedere Anselmo Omaha Lincoln Sidney Octavia Table Rock Kilgore Obert Gurley Springfield Plattsmouth Fairbury Ogallala Ilayard Homer Winside Walton Newcastle Long Pine Shelton Milligan Waterloo Endicott https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Amount Name of Bank ,l)" 18,656.01 The First State Savings Bank 43,921.14 Farmers State Bank 6,131.80 Farmers State Bank 311,878.44 Valparaiso State Bank 151,527.44 American State Bank Farmers Bank 190,354.27 Home State Bank 85,500.00 American State Bank 28,456.00 The State Bank 110,994.18 603,000.00 The Banking House of Castetter Brown County Bank 182,500.00 Farmers State Bank 85,663.38 Farmers State Bank 4,146.15 First State Bank 47,000.00 Farmers State Bank 145,308.16 Farmers State Bank 88,317.14 The Farmers State Bank 20,216.07 The Peoples State Bank 107,777.61 Pioneer State Bank 170,000.00 The American State Bank 242,500.00 Nebraska State Bank 146,500.00 Octavia State Bank 108,750.00 Community State Bank 75,000.00 Kilgore State Bank 154,051.01 Obert State Bank 107,271.18 Gurley State Bank 67,000.00 Farmers State Bank 57,523.99 The Bank of Cass County 167,046.92 The Goodrich Brothers Banking Company.... 11,732.6s Exchange Bank 69,663.49 The Farmers State Bank 143,147.08 Homer State Bank 190,000.00 Farmers State Bank 261,100.08 Farmers & Merchants Bank 47,200.00 Newcastle State Bank 376,500.00 The American State Bank 284,662.17 Shelton State Bank 239,961.59 The Nebraska State Bank 76,379.72 Bank of Waterloo , 39,700.00 Endicott State Bank 23,000.00 146 I. OD IIP Town Sholes Benedict Hemingford Morrill Waco Gering Omaha Kimball Bennett Bristow Chambers Berwyn Maskell Henry Gross Kenesaw Neligh Crookston Wayside Eddyville Broadwater McCook Dixon Bushnell Royal Springview Dix i'otter Waverly Lorenzo Thedford McGrew Culbertson Bartley IVIonowi Nickerson Clinton' Trumbull Crawford Valentine Ames Angora Carroll Riverton https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Name of Bank Wayne County Bank Farmers State Bank First State Bank Farmers & Merchants Bank Waco State Bank State Bank of Gering American State Bank Citizens State Bank Farmers Bank American Exchange Bank South Fork State Bank Berwyn State Bank Maskell State Bank Henry State Bank Gross State Bank First State Bank Atlas State Bank Bank of Crookston Wayside State Bank Security State Bank Broadwater Bank Citizens State Bank Farmers State Bank Farmers State Bank Citizens State Bank Springview State Bank Farmers State Bank Citizens State Bank Bank of Waverly Lorenzo State Bank Thedford Bank Security State Bank Farmers State Bank Farmers State Bank Monowl State Bank First State Bank Clinton State Bank Trumbull State Bank Farmers Bank Valentine State Bank Farmers State Bank Angora State Bank Citizens State Bank Republican Valley Bank 147 Amount 88,573.29 139,868.68 146,500.00 173,000.00 15,000.00 214,893.59 372,000.00 300,700.00 71,000.00 303,558.84 28,670.70 186,589.68 130,837.57 97,500.00 82,000.00 115,775.00 782,348.89 72,834.50 11,200.00 98,000.00 142,000.00 120,500.00 21,561.06 106,789.56 18,171.313 4,000.00 38,000.00 74,500.00 217,037.25 16,750.00 74,650.00 46,000.00 90,900.00 18,500.00 148,466.41 205,690.17 77,000.00 2,072.50 89,000.00 121,000.00 7,250.00 35,000.00 141,832.15 59,500.00 110 Town Hooper Chadron . • .Adams . Naponee Macy Taylor McLean Niobrara Neligh . Stapleton Peru Bloomfield Beverly Holdrege Sidney Orchard Ralston Hastings Randolph Bostwick Lynch Cotesfield Santee Brownville Harvard Stratton Wolbach Seneca Lyons Papillion Omaha Ord Richfield Omaha Craig Sweetwater Angus Ericson Brayton Nelson Bazile Mills Name of Bank Dodge County Bank Citizens State Bank Farmers State Bank Republican Valley Bank Macy State Bank Old Gold Bank .... McLearryre Bank NiobraV alley Bank Neligh' State Bank • Farmers Bank Peru State Bank Citizens State Bank Beverly State Bank Citizens State Bank American Bank Orchard State Bank Citizens State Bank Bank of Commerce Farmers State Bank Bostwick State Bank Security State Bank Farmers State Bank Santee State Bank Brownville State Bank Union State Bank Citizens State Bank Farmers State Bank Seneca State Bank Citizens State Bank The State Bank Security State Bank Ord State Bank First State Bank Commercial State Bank Farmers State Bank Sweetwater State Bank Bank of Angus Farmers State Bank „ Brayton State Bank State Bank First State Bank 1 3 . 9,e00.00 , Total Net Amount Due2tyypeisitors' Guaranty Fund https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 148 Amount , 58,817.17 '385,500.00 53,200.00 73,500.00 64,909.16 90,690.00 107,062.81 189,100.00 152,000.00 17,000.00 59,000.00 697,250.00 18,050.00 223,000.00 356,750.00 123,000.00 157,983.74 338,000.00 33,784.01 115,800.00 294,481.02 15,500.00 8,500.00 14,858.02 102,420.00 76,000.00 130,985.73 34,500.0 140,452.0 421,000.00 438,113.50 83,622.33 30,500.00 80,000.00 256,000.00 16,000.00 472%500601706 29,000.00 297,284.99 $16,510,180.16 i 1 I 40 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ••••••••••••••#~41NONI.M11~~~4.~I Final Report OF THE Banking Investigation Authorized by House Roll No 585 Beginning May 2 1929 and Ending August 1st. 1930 A. C. SHALLENBERGER Chief Examiner To his Excellency the Governor and the Legislature of Nebraska WEAVER, To GOVERNOR ARTHUR J. Lincoln, Nebraska. Your Excellency: 585 enacted by the Legislature of As required by House Roll No. acting, I have the honor to submit to Nebraska under which I have been the required by law, the following report of you and to the Legislature, as us vario the and banks in Nebraska investigation and audit of failed and tion istra admin the with laws departments charged under state and the enforcement of the bankmanagement of the banking business ing laws of Nebraska. by your Excellency to direct I was commissioned Chief Examiner in House Roll No. 585, apded provi as the investigation and audit ssion was dated May 2, 1929. Bids proved April 22, 1929. My commi audit were considered for about six the and estimates for the work of of auditing and investigation was weeks. The contract to do the work Certified Public Accountants of iated finally made with The Assoc 13, 1929. Three managing partners Nebraska and was signed June and making all reports *.o the were directly in charge of the audit ers were Raymond H. Walker, partn ging mana Chief Examiner. The Moeller, C. P. A., of Omaha, and M. J. C. P. A., of Lincoln, Henry S. The work of investigation was ima. Holland, C. P. A., of Omah ors and assistants conducting the mediately begun by the force of audit d in the State Capitol at Lincoln, lishe estab various audits. Offices were The Associated Certified Public Nebraska. A copy of the contract with this report as a part of the s panie accom Accountants of Nebraska ion. tigat inves record of the ership of Nebraska certified I awarded the audit contract to a partn satisfied myself that they I that n reaso the for s public accountant much the lowest made, was bid Their were qualified to do the work. expenses. I am glad to report that both as to per diem cost and other s has been thorough and satisthe work of the Nebraska accountant began in June, 1929. I had ors audit the by work factory. Actual July 1st, 1930. Investigation hoped to complete the investigation by s of banking could not be tment and depar banks and audits of certain nued the investigation for ancompleted at that date, so I have conti tion as Chief Examiner was direc my under work other month and the finished on August 1, 1930. e field of state banking in The investigation has covered the entir n into the operations and Nebraska. It has included an examinatio Commerce and an audit and Trade of nt management of the Departme ses and collection and expen tive istra , admin ments state ial of their financ s. sment asses disbursements of the Guaranty Fund https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis —1— During the period from 1919 to May 1, 1929, when the Guarantee Fund Commission was abolished, 270 banks were closed by the Department of Banking. From May 1, 1929, to July 1, 1930, 83 state banks were closed, or a total of 353 banks failed since 1919. 225 were closed in the six year period during which the Guarantee Fund Commission operated. Since June, 1929, this office has had under investigation and audit 116 banks, 74 sale asset trusts and the auditors' reports are on file in this office or with the Attorney General for his information. In addition to the above reports the auditors have made to this office 7 special reports on certain banks and three general reports as follows: Operation and Disposition of Depositors' Guaranty Fund, The Administration Fund of the Guarantee Fund Commission and the 74 Sale Asset Trusts Fund. This investigation has served its purpose and finished the work it was appointed to do. Every failed bank for which there has been a request for an investigation from depositors' committees has been audited. Wherever reliable information indicated reasons for an audit, it has been ordered without demand from interested parties. No petitions for further investigations are on file in this office. PUBLIC HEARINGS Public hearings have been held wherever petitioned for by depositors' committees. A representative of the Attorney General's office has attended each hearing to conduct the legal examinations and a competent court reporter has made a record of the evidence introduced. The record of these hearings is on file in this office. The public hearings held had a salutary effect on public opinion and, together with the reports of bank audits published in the public press, have given the people the information necessary to a correct understand ing of the reasons for the disastrous bank failures that came upon them. NEW LAW AND NEW POLICY PUT IN FORCE The Department of Trade and Commerce, acting under the new law recommended by your Excellency, is investigating with its own auditors and examiners, all banks that have failed since the new law was enacted. The Attorney General is conducting the prosecution s of all violations of the state's banking laws when reported to him. If the present rule of strict administrative supervision, rigid enforcemen t of banking laws and prompt punishment of those who violate them had been pursued in the past, there would have been no need for the creation of this office. ADMINISTRATIVE IMPROVEMENT During the year this office has been investigating bank failures, their causes and results, great improvements have taken place both a i to bank management and administrative supervision by the Banking https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis —2— •pi 'km Commissioner, Bureau. Under the management of the new Banking Past abuses . enforced being are laws Mr. George Woods, our banking and should few are failures nce, conseque a As d. permitte longer are no is rapidly banking sound of ion Restorat soon be a thing of the past. is eswhich credit, and ce confiden public of on foundati building the d appointe is ioner Commiss Banking sential to public prosperity. The the taking thereby cause, for removed be only can and for six years With banks and supervision of banks out of the field of politics. money for public of ure expendit further basis, sound bank credits on a ion or reinvestigation of past failures where possibilities of prosecut nted. unwarra is d, coveries are out-lawe unI wish to thank your Excellency for the very earnest and out carry to ing qualified support you have given me while endeavor enyou duties nt the mandate of the Legislature and the importa office this of ent trusted to me when you appointed me to the managem ce from the as Chief Examiner. I have had much valuable assistan business banking various departments of state dealing with the state and the Attorney General's office. AUTHORITY FOR THIS INVESTIGATION authorizing The title and first section of the Act of the Legislature ation and the creation of this office defines the purpose of the investig follows: audit as "TITLE: inAN ACT relating to banks and banking and providing for an vestigation and audit of the business transactions and activities of the e Guarantee Fund Commission, the Department of Trade and Commerc in receivership; and Bureau of Banking, and receivers of state banks providing methods of procedure and rules and regulations for said shall investigation and audit; providing that the Attorney General shall as and ation audit investig said in help and give such assistance out of be requested by the Governor and that all information arising or said investigation and audit which indicates violation of law, fraud negligence, shall be reported to the Attorney General for action; providing penalties for the violation of this ACT and for failure to comply with the requests of the Governor and those acting for or with him in conducting said investigation and audit; providing for a report of said investigation and audit; providing for an appropration of $150,000.00, or as much thereof as may be necessary, for the purpose of carrying out the intent and object of this ACT, and declaring an emergency to exist. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis --3-- BE IT ENACTED BY THE PEOPLE OF THE STATE OF NEBRASKA Section 1. The Governor of the State of Nebraska is hereby empowered, authorized and directed to cause at once to be made a thorough investigation and audit of the business transactions and activities of: (a) The Guarantee Fund Commission and its members, officers, agents and employees, in connection with the handling and management of the affairs and assets of such state banks as have come under the control or .supervision of the Guarantee Fund Commission since its creation by law. (b) The Department of Trade and Commerce and Bureau of Banking and their officers, agents, examiners and employees, since January 1, 1919, in connection with the supervision and examination of going state banks and the liquidation of failed state banks. (c) All receivers of state banks in receivership, appointed since January 1, 1919, and their agents and employees, in connection with the sale of the assets of said banks and the expense of liquidation. (d) All hearings in this inquiry shall be made public after due nctice given, and in so far as practicable, shall be held in the localities where the bank under inquiry is or was located and doing business. All general hearings shall be held at the State Capitol." GENERAL PURPOSES OF THE AUDIT In conformity with the language and mandate of the ACT, this investigation has had certain principal purposes in view: First—The audit of a sufficient number of banks to determine the cause of the many bank failures in Nebraska and to secure evidence of law violations by bank officers that would result in the punishment of guilty offenders. Second—To investigate the liquidation and disposition of bank assets and to protect as far as possible the interests of depositors. Third—To investigate and report on the work of the Guarantee Fund Commission as administrators of the affairs of failed banks. Fourth—To investigate and report on the efficiency and effectiveness of the supervision and examination of state banks as conducted by the Department of Trade and Commerce. The auditors' reports on file in this office show the causes and reasons for the bank failures of the past and indicate needed ad- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -4— ministrative reforms necessary to insure sound banking in the future. Most of the reforms recommended have been enacted into law by the Legislature upon recommendation of your Excellency. The investigation was authorized by Legislative Act to cover a period of ten years beginning with 1919 but, since the Statute of Limitations begins to run against most violations of criminal statutes after three years, I centered the work of the auditors and examiners upon failures since May 1st, 1923, when the Guarantee Fund Commission was established. It would be a waste of public money to work on cases that could only result in findings of no value as basis for legal action in the courts because outlawed by Statute of Limitations. The banks that have failed since the Guarantee Fund Commission was abolished by Act of Legislature in May, 1929, are now in the hands of the Department of Trade and Commerce. A large number of them have been reorganized and reopened under the law signed by your Excellency and the others are having audited and examined by that department. In all, 37 closed banks have been reorganized and reopened since May, 1929; 4 as a result of stockholders making satisfactory arrangements with the Department of Banking and 33 by depositors reducing their claims in a sufficient amount to absorb the losses in the bank. APPROPRIATION AND EXPENDITURES The Legislature appropriated $150,000.00 for the expenses of the investigation authorized. The entire amount was available for the expenses of the audit, as well as the costs of the Attorney General's office because of legal actions resulting from the investigation. Some legal expenditures will necessarily continue after the audit is finished. There are still pending numerous actions in state courts to recover large sums of money due from stockholders, bank directors and others. Also many indictments for criminal violations of banking laws are still pending. To date of August 1, 1930, there has been expended by this office $99,027.82 divided as follows: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis —5— EXPENDITURES OF THE AUDITING DEPARTMENT Salaries to August 1, 1930 Expense $61,827.32 2,253.49 $64,080.81 LEGAL EXPENDITURES UNDER DIRECTION OF THE ATTORNEY GENERAL Salaries to August 1, 1930 Expense $10,779,82 6,452.23 $17,232.05 CHIEF EXAMINER'S OFFICE Salaries to August 1, 1930 Expense, including traveling, supplies, postage, telephone, telegraph, express and equipment TOTAL $15,395.34 2,319.62 There have been varying numbers of auditors and ployed. Per diem pay was fixed by contract. The accountants received $20.00 per day when actually assistant accountants $12.50 per day. No charges for employed in Lincoln were allowed. Actual expenses work outside of Lincoln or Omaha were paid. $17,714.96 $99,027.82 assistants emcertified public at work and expenses while only when on CAUSES OF BANK FAILURES In my preliminary report, dated March 3, 1930, to your Excellency, I analyzed at some length the causes of bank failures during the past decade. The reasons stated and conclusions arrived at were the • results of study of the history of banking in Nebraska for the period covered by this audit and careful consideration of the facts disclosed by the investigation. Investigation and study since my preliminary report has only confirmed the statements and recommendations made in that document. In analyzing almost every bank failure there are important facts and law violations disclosed that pertain to that bank alone, but there are certain economic causes as well as violations of both statutory law and sound business practice that are constantly disclosed as the underlying reasons for failures in almost every case. Since the World War economic causes general in scope and character destroyed agricultural https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis —6— and commercial credit and made bankruptcy widespread throughout the middle west with consequent disaster to the banks of Nebraska and to the states surrounding her. The World War inflated prices, both of land and other property, to such an extent that a business boom developed which swept many bankers, business men and even farmers into a maelstrom of speculation. Standards of values and normal basis of credit were completely lost sight of and sound business principles were forgotten. Banks were increased in numbers until competition brought disaster because there was not sufficient safe and profitable business for all who were fighting for it. Land speculation, a most dangerous economic disease for bankers to contract, became epidemic either through loans on lands or by indirect purchases by bank officers. The fall in value of farm property has swept away supposed securities and caused a serious destruction of credit. Federal statistics show that agricultural values shrunk eight billions in one year. Only the strong, careful and experienced banker could weather this storm. During the war boom period 315 additional state banks were chartered. In the year 1917, one hundred and one new banks were opened and during 1918, one hundred and two more were chartered. The courts decreed that, under the existing law, the State Banking Department could not refuse charters. This decision denied to the state's officers a power essential to the safety of banking and the security and sufficiency of the Bank Guaranty Fund. The Legislature later passed a law giving the authority to the Banking Department to refuse charters for good cause, requiring officers in management of banks to secure a license from the Banking Department certifying the bankers' ability and character. This law was suspended by a referendum petition and later was defeated by a vote of the people. Subsequently, hundreds of banks were chartered for which there was no economic use and men permitted to operate them who, for want of ability and honesty, have disgraced the business of banking. Too many banks and too few bankers bred bankruptcy in the banking business. The irresistible economic law that unprofitable banks must finally fail or discontinue has reduced the number of state banks to the requirements of banking and commerce. The law now permits the Banking Department to judge as to the need for a bank in a community and as to the ability and character of the officers. As a result in the past year only one new state bank has been chartered in Nebraska. No one protests that any just demand has been denied. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis —7— UNSAFE EXPANSION OF CREDIT The unsafe and unnecessary expansion in banking during the boom period because of no limiting of charters led to an extraordinary and dangerous increase in loans and credits. Where too many banks make competition ruinous, bad loans become common because there are not enough safe borrowers to absorb the funds that must be loaned to make a show of profit. Paper profits disappeared when deflation had done its work. Millions of dollars of worthless loans encumbered the note cases of the banks audited by this office. Very often more than half of the notes in failed banks were found worthless because the officers making them were speculators, not bankers. Destruction of agricultural credit, dishonest and incompetent bankers, weak supervision and lack of law enforcement were the causes of bank failures in Nebraska. THE GUARANTY LAW Banking laws, no matter how sound and carefully drawn, will not be effective in protecting the interests of the depositors and the. public, if bankers are permitted to continually violate their most important provisions. The Guaranty portion of the banking laws of Nebraska established an insurance for the protection of depositors. The annual assessments for the payment of losses were based upon federal reports of the average losses in national banks during the life of that system since it was established in 1862. For fifteen years before the war boom multiplied the number of banks and inaugurated an area of speculation, failures were few, depositors lost no money and public confidence in our state banks was complete. Three sound banking principles were essential to the success of the Guaranty Law, if the insurance plan was to prove sound and safe. First—Limitation of bank charters to the requirements of business and safe credit of the community served. Second—Bank earnings of sufficient amount to insure a fair return and the charging out of losses that come in periods of business depression. No bank that can honestly show a fair profit ever fails. Third—Competent and efficient supervision and examination by the department in charge of the administration of banking laws and requiring from all officers and managers of banks a state license certifying as to their honesty, ability and character. Failure to observe and enforce these essentials undermined and wrecked the Guaranty Fund. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis —8- 1 The Guaranty Law brought prosperity and strength to the state banks and saved depositors from losses of millions of dollars. It has been discredited and destroyed by those who should have been its staunchest defenders. Betrayal of their trust by faithless bankers and inefficient supervision nullified the law and destroyed the confidence it had established. LAX ADMINISTRATION BY DEPARTMENT OF BANKING The Department of Banking Administration is required by law &mks shown insolvent by its examiners. It is a felony for close to officers of a bank to receive deposits after it is insolvent. If an insolvent bank is permitted to operate, the depositor is grossly deceived and his supposed security becomes a state swindle. In case of failure stockholders are liable for an additional amount equal to their capital investment. Under careful supervision the double liability should insure liquidation with little loss to depositors. A former Governor stated in a message to the Legislature that early in his administration his Banking Commissioner reported to him that there were 125 state banks hopelessly insolvent. A Banking Commissioner of another administration stated to me that a few months after he took office he made a written report that 150 banks were at that date insolvent. Permitting broken banks to run only delayed the deluge. Lax law enforcement did not save the banks. It did cost depositors large losses and piled up a mountain of bank failures when conditions could no longer be concealed. The greatest blot on our state and national governments is failure to enforce laws enacted for the protection of property and the punishment of crime. THE GUARANTEE FUND COMMISSION The Guarantee Fund Commission was the chief agency of the state for the liquidation of failed banks during the period covered by this audit and investigation. The Commission first organized and took oath of office May 4, 1923. It was advocated by bankers and composed of bankers recommended to the Governor by banking groups. The law provided that the Commission took charge and acted for the stockholders of closed banks when directed to do so by the Department of Trade and Commerce. The Commission was authorized to reopen failed banks, receive and pay out deposits without regard to the solvency of the institution. Every bank so operated showed a continual monthly operating loss and few reorganizations and sale of closed banks resulted from this policy. Delayed liquidations were only profitable to those in charge of them. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The operation of banks by the Guarantee Fund Commission resulted in payment of millions of dollars of discriminations and preferences in payment of deposits. It has been charged that the Commission used the funds belonging to the assets of one bank to pay claims or deposits of another, but the record shows this was not true. No breach of trust by the Commissioners was disclosed by this audit. Governor Weaver pointed out, in his statement issued when convening the extra session, that in 73 banks operated by the Commission there were preferences paid some depositors to the amount of $5,000,000. It should be said that the Commissioners claim that before December 1, 1927, it was represented to them by the Department of Trade and Commerce that losses would finally be paid in full from the Guaranty Fund. All unequal preferences in payments to depositors were discontinued after December, 1927. This audit first disclosed the magnitude of these discriminations. There have been many cases reported to this office of compromises of debts owing to failed banks. Also numerous reports of sale of lands or property at unfair prices. All these reports have been carefully investigated. The Commission has left a complete and well kept set of records showing the history of every transaction performed by itself or its agents. Compromises on loans and sale of real estate were all approved by district court judges after being authorized and reviewed by heads of departments. Because of the constant fall in values during recent years, delay in sale of land and other assets resulted in severe losses in many cases. DEFICIT IN PAYMENT OF DEPOSITORS From 1909, when the guaranty law was enacted, to 1925, when a long series of bank disasters began to undermine the Guaranty Fund, deposits in Nebraska state banks increased almost 500 per cent. The increases was from 62 million to 272 million dollars. During that period 91 banks closed but depositors suffered no losses. From 1919 to June 30, 1930, 353 state banks were closed in Nebraska. There were 615 state banks in operation in 1908. By 1921 the number was 1,009, an increase of 394 banks. On June 30, 1930, 602 state banks reported to the Department of Banking, a decrease of 402 banks from the high water mark of 1921. Liabilities of all banks closed prior to May 1, 1929, when the Guarantee Fund Commission was abolished $ 79,106,559.78 Liabilities of banks closed since May 1, 1929 22,874,934.29 Grand total of Liabilities https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $101,981,494.07, --10-- In his final report Mr. Van Peterson, Secretary of the Guarantee Fund Commission, estimated the deficit from the 79 million •of liabilities as of May 1, 1929, at 16 millions of dollars. The following is a summary of the consolidated statement of the condition of receiverships of the Department of Trade and Commerce as of June 30, 1930. 38 OLD RECEIVERSHIPS 141 NEW RECEIVERSHIPS 106 DEPARTMENT RECEIVERSHIPS 285 TOTAL NUMBER RECEIVERSHIPS $ 1,644,146.79 CASH IN BANKS ASSETS NOT REALIZED: Bills Receivable Bonds, Stocks & Warrants Furniture & Fixtures Judgments Other Assets Overdrafts Real Estate $16,892,239.24 233,952.02 313,292.99 1,332,165.03 710,097.37 94,053.50 3,887,579.20 Acquired & Discovered: Bills Receivable Judgments Other Assets Real Estate 262,405.80 567,174.74 194,185.60 446,338.22 $24,933,483.80 OPERATING COSTS: General Expense Legal Expense 843,320.78 363,860.71 1,207,181.49 SUPPLEMENTARY CHARGES: Protection of Real Estate Interest Paid Claims Estab., Not on Books Claims in Disp., Not on Books Loss on Assets https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 585,752.51 419,576.11 2,148,387.69 352,274.20 16,803,076.10 $20,308,066.61 • CAPITAL IMPAIRMENT 7,278,773.02 $55,371,651.71 LIABILITIES NOT LIQUIDATED: Deposits Not Classified $ 1,517,743.45 Preferred Claims 27,689,064.76 Total $29,206,808.21 Claims in Dispute General Claims Bills Payable Other Liabilities Bank Overdrafts Trust Funds 786,615.78 547,080.20 225,518.34 17,472.18 16,955.09 22,810.71 $30,823,260.51 Due Depositors Guaranty Fund Depositors' Final Settlement Fund $12,553,809.88 245,512.52 Total $12,799,322.40 SUPPLEMENTARY CREDITS: Deferred Credits Interest Received Real Estate Income Realized Thru Assets Disc Stockholders Liab. Settled CAPITAL STOCK SURPLUS $ 864,864.98 673,429.28 445,235.89 231,459.01 1,209,859.81 $ 3,424,948.95 7,811,825.00 512,285.85 $55,371,651.71 The above statement of the Department of Trade and Commerce shows that on June 30, 1930, the total amount of allowed claims on state banks yet unpaid was $29,206,808.21 Cash on Hand 1,644,146.79 Balance due depositors less cash on hand Estimated realization from remaining assets and directors and stockholders liabilities $27,561,66.42 Leaving an estimated deficit or loss to depositors of $20,561,681.42 The estimate of realization is arrived at as follows: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis --12-- 7,000,000.00 04: Assets on hand, other than cash, have a book value of $24,933,ical, 483.80. What they are worth under present conditions is problemat ders Stockhol from them. realized be should 0.00 $5,000,00 least but at uncollected liability is over $6,000,000.00. Suits for collection of large amounts against directors for approval of illegal loans are pending. $2,000,000.00 should be collected from unpaid liabilities of stockholders and directors. RECEIVERSHIP DEPOSITS The cash on hand shown in the above statement is on deposit in certain banks. On date of July 1, 1930, there was $496,000 still in the hands of receivers of Guarantee Fund Commission banks. Of this amount $167,223.52 is secured by bonds. Most of the fund is deposited in reserve banks. All funds of failed banks now in receivership under control of Secretary Bliss of the Department of Trade and Commerce are secured by bonds. The amount of the Department of Trade and Commerce receivership funds on deposit in bonded banks was $1,131,102.02 on July 1, 1930. The Commission Bank receiverships are being taken over by Secretary Bliss as rapidly as possible. Administration of receiverships was transferred to the Department of Trade and Commerce April 30, 1929. Statement of administration and receipts and disbursements by the Receivership Division of the Department of Trade and Commerce from April, 1929, to June 30, 1930, follows: ADMINISTRATION FUND of the Department of Trade & Commerce Receivership Division April 30, 1929, to June 30, 1930. Cash Receipts and Disbursements Balance transferred May 1, 1929, from Guarantee $ Fund Commission Receipts: Assessments on Department $ 64,709.50 Receiverships on Commissi Assessments on 31,760.50 Receiverships 2,908.38 Assessments on Old Receiverships 7,149.31 Assets Sale on nts Assessme 1,305.94 Interest on Cash Balances 1,306.03 Miscellaneous https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23,829.69 109,139.66 $ —13- 132,969.35 I Disbursements: Expenses Employees' salaries $94,491.50 Employees' traveling expense 17,485.85 Office supplies and printing 4,754.65 Postage 2,730.00 Special Atty. fees and court costs 147.00 Telephone & telegraph 1,195.70 Employees' Bond Premium 845.69 Service contracts 249.45 Miscellaneous 187.07 4 $ Office Equipment Purchased Revolving Fund BALANCE, JUNE 30, 1930 National Bank of Commerce Continental National Bank 122,086.91 3,102.79 178.46 $ 125,368.16 $ 7,601.19 $2,821.86 4,779.33 $7,601.19 CASH COLLECTIONS FROM FAILED STATE BANKS IN NEBRASKA MADE BY THE DEPARTMENT OF TRADE AND COMMERCE SINCE TAKING OVER RECEIVERSH IPS May 1, 1929 to June 30, 1930 Old Receiverships, being those pending when Guarant ee Fund Commission created (38 Banks) and Commission Receiverships, being those of which member s of the Guarantee Fund Commission were the original receivers. (140 banks) $ 1,257,239.12 Department Receiverships, being those banks placed in Receivership since May 1, 1929, and of which the Secretary of the Department of Trade and Commerce is the receiver (106 banks) 4,034,768.57 Sale Assets, being those purchased at public sale by the Guarantee Fund Commission and being liquidated for the benefit of the Depositors Final Settlem ent Fund (70 trusts) TOTAL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 79,938.82 $ 5,371,944.51 —14- COMPARATIVE STATEMENT OF ADMINISTRATION COSTS OF RECEIVERSHIPS UNDER THE MANAGEMENT OF THE GUARANTEE FUND COMMISSION AND FOR A LIKE PERIOD UNDER THE RECEIVERSHIP DIVISION OF DEPARTMENT THE OF TRADE AND COMMERCE RECEIVERSHIP DIVISION COSTS Department of Trade and Commerce From May 1, 1929, to June 30, 1930 (14 months) Paid from Administration Fund Paid from State Appropriation $ 125,368.16 17,489.40 $ 142,857.56 $ 147,425.56 22,534.18 $ 169,961.74 GUARANTEE FUND COMMISSION COSTS From March 1, 1928, to May 1, 1929 (the preceding 14 months) Paid from Administration Fund Paid from State Appropriation The Legislature made appropriations for payment of expense tf the Guarantee Fund Commission as follows: $ 30,000.00 1923 30,000.00 30,000.00 1925 1927 Total .............................................................................$ Of this amount the Commission expended Leaving an unexpended balance of for the six years 90,000.00 89,627.89 372.11 At termination of his office as Secretary to the Commission, Mr. Van Peterson, submitted to me a statement showing the total cost of leceiverships under the Guarantee Fund Commission management to be as follows: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis —16— Operating costs of liquidation of 58 banks closed prior to May 4, 1923 $ 1,008,585.99 226 banks closed after May 4, 1923, and prior to May 1, 1929 Total operating cost under Commission management 2,370,312.26 $ 3,378,898.25 All costs of liquidation by Guarantee Fund Commission and Department of Trade and Commerce such as salaries of receivers, auditors, attorneys' fees, collectors, clerical salaries and administration expenses are paid out of the assets of failed banks. All expenses chargeable to this office are paid out of the appropriation made by the Legislature for its use. STATEMENT SHOWING DIVIDENDS PAID BY THE DEPARTMENT OF TRADE AND COMMERCE TO DEPOSITORS IN FAILED BANKS May, 1929 June, 1929 July, 1929 August, 1929 September, 1929 October, 1929 November, 1929 December, 1929 January, 1930 February, 1930 March, 1930 April, 1930 May, 1930 June, 1930 $141,933.81 148,792.90 72,564.06 152,385.01 227,668.37 234,934.45 232,837.72 302,385.35 336,184.67 388,798.67 451,744.42 476,350.69 403,787.73 713,214.97 Total Dividend payments from Assets $4,281,583.02 Following amounts paid from Depositors Final Settlement Fund: May, 1930 $129,487.77 Following Dividends paid entirely from the Depositors Final Settlement Fund: May, 1930 $114,507.55 Total Dividend payments from Depositors Final Settlement Fund Amount of Dividends on Belated Claims paid during period of May 1, 1929, to June 30, 1930 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis —16- 243,995.32 12,643.17 GRAND TOTAL OF DIVIDENDS PAID DURING PERIOD OF MAY 1, 1929, to JUNE 30, 1930 $ 4,538,221.51 paid to In addition to the foregoing Dividends there has been g: claimants of the above banks the followin PRIORITY CLAIMS FOR TRUST FUNDS...$130,753.65 282,520.20 SECURED DEPOSITS TOTAL AMOUNT PAID TO DEPOSITORS 413,273.85 $ 4,951,495.36 OF SUMMARY SHOWING ASSESSMENTS AND DISBURSEMENTS FUND TY THE GUARAN Total Guaranty Fund Assessments to Jan. 2, 1930 Refunds to Jan. 2, 1930 $19,811,378.83 2,211,258.75 Total charges to banks for Guaranty Fund to Jan. 2, 1930 22,022,637.58 Drafts—Paid by banks for Guaranty Fund to $18,694,668.59 Jan. 2, 1930 28,907.62 Miscellaneous credits Total credits allowed banks to Jan. 2, 1930 Due Guaranty Fund Jan. 2, 1930 $18,723,576.21 3,299,061.37 $22,022,637.58 2,954,108.59 -1930.... 2, Jan. banks Unpaid assessments due from going 344,952.78 1930.... 2, Jan. banks Unpaid assessments due from closed Total balance due from banks to Guaranty Fund Jan. 2, 1930 $ 3,299,061.37 Examination of Guaranty Fund books subsequent to January 2, 1930, shows that on May 28, 1930, drafts were drawn on going banks aggregating $203,492.22 of which only $21,117.05 was paid by banks. Further disposition of the matter of unpaid assessments is awaiting the ruling of the Supreme Court of the United States on the appeal from the decision of the Supreme Court of Nebraska sustaining the validity of the unpaid assessments. All Guaranty Fund assessments required by law have been made by the Department of Trade and Commerce. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — 17 — j ACTIVITIES OF THE DEPARTMENT OF TRADE AND COMMERCE Mr. C. C. Bliss, Secretary of the Department of Trade and Commerce, reports the following summary of cash settlements and recoveries made by the Department growing out of the banking investigation and amounts involved in suits pending to recover from stockholders and directors. A more detailed statement is attached to this report. SUMMARY OF DEPARTMENT ACTIVITIES Direct settlements and recoveries collected Collections made by legal department $ 152,196.06 14,967.19 Total Cash Collections $ 167,163.25 Stockholders double liability suits pending by legal department Directors' liability suits pending $ 188,755.00 688,529.00 Total collections and suits pending $ 1,044,447.25 LEGAL ACTIVITIES, TRIALS, INDICTMENTS, CONVICTIONS, RECOVERIES AND SUITS PENDNG During the period of this investigation, the findings and reports by examiners and auditors of this office and that of the Department of Trade and Commerce and the work of the various legal departments under the Attorney General's and Judge Skiles' supervision have resulted in a large number of indictments, trials and convictions followed by prison sentences, lawsuits for recoveries from stockholders, directors, bank officers and others have been instituted. Sufficient funds to carry on this important work is available in the unexpended balance in the fund appropriated for this investigation. A statement of recoveries, settlements of prosecutions and other activities of the several legal departments under supervision of the Attorney General's office is attached to this report showing cases growing out of the banking investigation. DEPOSITORS' COMMITTEES Early in his administration, as a result of dissatisfaction of depositors with past compromises and settlement, Governor Weaver authorized establishment of depositors' committees for each failed bank in receivership. Each committee is given full information concerning the receivership and no compromises or settlements are made without their consideration and approval. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — 18— EXAMINATIONS One of the most important advances made in supervision is in the character and thoroughness of examinations. All notes and bills receivable are examined and classified and listed so that a banker has an inventory and statement of the value of the contents of his note case and the Bureau of Banking has this classified list of notes for its information. Examinations that were formerly made by one man and were too hurried to be thorough, now require two examiners working two or more days to complete them. Examinations are made more frequently than before. Periods between examinations are still too long because much of the time of examiners is taken up with the affairs of closed banks. This delay will soon be a thing of the past and the whole corps of examiners can be used in supervision of the banks in operation. Notwithstanding the greatly reduced number of banks, a very material increase has been made in the number of bank examiners in the field. Follow up men are sent out to see that rcommendations of the department are obeyed and that promises of making good any losses and better management are carried out. All expenses of examination and supervision by the Bureau of Banking including the Banking Commissioner's salary are now paid by the banks. Bank examiners should have authority and be instructed to verify the validity and amounts payable of all notes and bills receivable carried as the assets of a bank. They should reconcile depositors' balances and outstanding Certificates of Deposit when deemed necessary. If this practice had been in force heretofore the forgeries and fraudulent bank balances that cost depositors a loss of $800,000.00 in the Wupper bank at Beemer and the long series of forgeries and frauds that wrecked the Monowi Bank and sent its manager to the penitentiary for fifty years would have been prevented. The double liability of stockholders of banks is security in addition to the capital stock to insure the payment of depositors' claims in case of failure. Experience has proven that only a small portion of the additional liability has been collected from stockholders in the past. If the constitutional amendment is adopted giving broader powers for legislation to insure immediate payment of stockholders' liability, the Legislature should promptly correct the disclosed weak- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis nesses in the present law. It is only equity to the depositors that the security the law professes to afford should be made immediately effective upon failure of a bank. 0111V,, Auditors' statements of the work of the Guarantee Fund Commission and the Department of Trade and Commerce in the liquidation and management of the banks under their charge are on file with this report. Respectfully submitted, A. C. SHALLENBERGER, (Signed), APPROVED: Chief Examiner. ARTHUR J. WEAVER (Signed), Governor. STATEMENT FROM THE ATTORNEY GENERAL'S OFFICE OF CASES GROWING OUT OF BANK INVESTIGATIONS State v. Wm. Morton, District Court Scotts Bluff County. Mitchell State Bank, charged with embezzlement. Conviction—sentenced to penitentiary. State v. Chas. Hinds, District Court of Gage County. Hinds State Bank of Odell, charged with embezzlement, false records, excess bills payable. Preliminary hearing, bound over to District Court Gage County for trial. Case pending. State v. Fred A. Wright, District Court Gage County. Security Savings Bank Beatrice, charged with false reports, illegal loans, and misapplication. Preliminary hearing, bound over to District Court of Gage County for trial. Case pending. State v. Raymond L. Cox, District Court Polk County. Bank of Polk, charged with illegal loans. Preliminary hearing, bound over to District Court Polk County. Case pending. State v. Roy S. Appel, District Court of Howard County. First State Bank of Dannebrog, charged with forgery. Preliminary hearing, bound over to District Court Howard County. Case pending. State v. Ronald I. Gutru and W. E. Nelson, District Court of Boone County. Farmers State Bank of Bradish, Nebraska, charged with making false entry upon books of the bank. Ronald I. Gutru pleaded guilty and paroled. W. E. Nelson case still pending. State v. Julius A. Johnson, Security State Bank of Rohrs, charged with embezzlement. Trial to jury, convicted, sentenced to one to six https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — 20 — 010 fis Court years on several counts running concurrently, appealed Supreme where judgment and sentence were sustained. State v. Frank Pilger and Daniel C. Diebler, County Court of Pierce County. Pierce State Bank, Pierce, Nebraska, charged Pilger with embezzlement; Diebler charged with making false entry upon books of the bank. Pilger tried, convicted and sentenced five years in penitentiary. Diebler's case still pending in County Court of Pierce County. State of Nebrasta v. Benson, F. J. Kirchman, Max A. Kirchman, Charles C. Carek, Justina Carek and W. H. Kirchman (separate actions). Saunders County Bank, Wahoo, Nebraska. Benson charged with using bank with intent to defraud, convicted and sentenced to five years in penitentiary. F. J. Kirchman charged with same offense, sentenced to sixty-five years in penitentiary. Max A. Kirchman charged with misapplication of bank's funds plead guilty and sentenced to one-ten years in penitentiary. Charles C. Carek and Justina Carek charged with wilful misapplication and forgery and cases against W. H. Kirchman, charging him with using the bank with intent to defraud, are pending. State v. Thomas J. Kastle, District Court Dodge County. First Charged with receiving deposits from State Bank of North Bend. persons at the time he knew the bank was insolvent. Kastle acquitted. State v. Peart, District Court of Franklin County. Charged with embezzlement of $6,780.00 from Peoples Bank, Upland, Nebr. Convicted, now in State Reformatory, Hawthorne Apartment. State v. Elizabeth Brown Hogoboom, District Court of Frontier County. Charged with embezzlement. Convicted. Appeal pending in Supreme Court of Nebraska. State v. Louis Verne Hogoboom, District Court of Frontier County. Charged with aiding and abetting embezzlement. Found not guilty. State v. Westbrook, District Court of Otoe County. Charged with embezzlement. Convicted. Now serving sentence. This grew out of failure of Dunbar State Bank. State v. Harry D. Hancock, District Court of Thurston County. Charged with E. Gerald Hancock and Mike Minarik with making false reports as accessory. Case pending. Now set for September term. State v. E. Gerald Hancock, District Court of Thurston County. Charged with Mike Minarik with making false reports to Banking Department. Case pending and now on list for September term. State v. Mike Minarik, District Court of Thurston County. Charged jointly with E. Gerald Hancock in making false reports of the con- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -21— dition of the Thurston State Bank. September term. Case pending and on list for State v. Bert Spearman, District Court of Morrill County. Charged with making false reports to Banking Department. Nebraska State Bank, Bridgeport, Nebr. Defendant convicted. Case pending on appeal to Supreme Court. State v. Robert J. Wilson, District Court of Morrill County. Charged with false entries in books and reports of Nebrask a State Bank. Case dismissed upon conviction of Spearman. State v. Joseph E. Weir, District Court of Nuckoll s County. Charged with receiving deposits when bank insolvent. Case pending. State v. George S. Aldrich, District Court of Nuckolls County. Charged with receiving deposits after bank insolvent. Case pending. State v. Wupper, District Court of Cuming County. Charged in a number of counts in embezzlement. Defendant a fugitive from justice. State v. Johnson, District Court of Scotts Bluff County. Charged with taking bank funds. Case pending. State v. Arthur A. Foreman, District Court Dawson County. 14 Counts charging false statements in reports and books. Farmer s State Bank, Overton, Nebraska. Defendant under bond to appear at the fall term of court for trial. State v. William W. Vanatta and Earl R. Vanatta, District Court Morrill County. Bank of Bayard, Bayard, Nebraska. Preliminary hearing pending. State v. Agnes J. Vanatta, District Court of Morrill County, Nebraska. Bank of Bayard, Bayard, Nebraska. Preliminary hearing pending. State v. Earl R. Vanatta, District Court of Morrill County, Nebraska. Bank of Bayard, Bayard, Nebraska. Preliminary hearing pending. State v. John W. Fieselman, District Court Morrill County, Nebraska. Bank of Bayard, Bayard, Nebraska. Preliminary hearing pending. R. 0. Brownell v. T. J. Kastle, District Court of Dodge County, Nebraska. North Bend, Nebraska. Attachment for the recovery of double stock liability. This case was filed in conjunction with Mr. Skiles and Mr. Beynon representing the Guarantee Fund Commiss ion. An attachment was levied upon certain lands and properti es in Dodge County, Nebraska, and the case is pending in .the District Court of that county. State v. Thomas J. Kastle, District Court of Dodge County, Nebraska. First State Bank, North Bend, Nebr. Preliminary hearing pending. — 22 — https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ADMINISTRATION FUND OF THE GUARANTEE FUND COMMISSION DEPARTMENT OF TRADE AND COMMERCE May 4, 1923—December 31, 1929 The Guarantee Fund Commission took oath of office May 4, 1923. RECEIPTS: Assessments—Going Banks Assessments—New Receiverships Assessments—Old Receiverships Sale Assets Interest on Cash Balances Miscellaneous Income Assessments Unaccounted For— Sale Assets, New Receiverships & Old Receiverships prior to June 30, 1925 $164,212.86 123,925.03 54,478.89 33,443.77 6,681.75 864.94 191.57 $383,801.81 TOTAL RECEIPTS DISBURSEMENTS: Expense: a $273,860.30 Salaries Employees', Miscellaneous 58,510.92 Salaries & Traveling Expense Printing, Stationery, Office 9,418.17 Supplies and Postage 1,514.63 Advertising—Real Estate 2,108.80 Surety Bond Premiums 820.11 Telephone & Telegraph 209.14 Express and Drayage 128.42 Repairs—Office Machines Special Attorney's Fees and 2,852.64 Court Costs 1,603.43 Accountant's Fees 1,965.07 Miscellaneous Office Expense $352,991.63 6,980.49 TOTAL EXPENSE Office Equipment Purchase TOTAL DISBURSEMENTS Cash Transferred to the Department of Trade and Commerce https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — 23 — $359,972.12 $ 23,829.00 ADMINISTRATION FUND GUARANTEE FUND COMMISSION May 4, 1923—December 31, 1929 DEl'ARTMENT OF TRADE AND COMMERCE May 1, 1929, to December 31, 1929 RECEIPTS: Cash Transferred from the Guarantee Fund Commission ..$ 23,829.69 Assessments—Going Banks (Burchard Bank) $ 50.00 Assessments—Department Receiverships (Bliss) 29,594.50 Assessments—Commission Receiverships (New) 20,550.50 Assessments—Old Receiverships Assessments—Sale Assets Interest on Cash Balances Miscellaneous Income 1,540.00 3,689.11 93.99 59.83 Total Receipts Total Receipts and balances transferred from Commission 55,577.93 $ 79,407.62 DISBURSEMENTS: Expense: $ 52,876.59 Employees', Miscellaneous Salaries & traveling expense 10,287.15 Printing, Stationery, Office Supplies & Postage Surety Bond Premiums Telephone & Telegraph Repairs—Office Machines Miscellaneous 3,868.01 322.56 674.69 201.30 104.20 Total Expense Office Equipment Purchased $68,334.50 ?,042.81 Total Disbursements $ 70,377.31 Balance due December 31, 1929 $ 9,030.31 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -24- Cash December 31, 1929: Continental National Bank National Bank of Commerce Revolving Fund due from York and Newport Banks $4,779.33 3,717.63 533.35 $9,030.31 SUMMARY Guarantee Fund Commission—May 4, 1923—April 30, 1929 Department of Trade and Commerce—May 1, 1929—December 31, 1929 RECEIPTS:—May 4, 1923, to April 30, 1929 Assessments Interest on Cash Balances Miscellaneous $376,252.12 6,681.75 867.94 Total Receipts $383,801.81 DISBURSEMENTS:—May 4, 1923, to April 30, 1929 $273,860.30 Office Salaries 79,131.33 Office Expense 6,980.49 Office Equipment 359,972.12 Total Disbursements .29.69 Cash transferred to Department of Trade and Commerce 23,8 RECEIPTS:—May 1, 1929, to December 31, 1929 $ 55,424.11 Assessments 93.99 Balances Cash Interest on 59.83 Miscellaneous Total Receipts $ 55,577.93 $ 79,407.62 DISBURSEMENTS:—May 1, 1929, to December 31, 1929 $ 52,876.59 Office Salaries 15,457.91 Office Expense 2,042.81 Office Equipment Total Disbursements Cash on hand December 31, 1929 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 70,377.31 $ 9,030.31 REPORT ON DEPOSITORS' GUARANTY FUND August 12, 1930. Mr. A. C. Shallenberger, Chief Examiner, State Capitol Bldg., Lincoln, Nebraska. Dear Sir: We have audited the books, records and accounts of the Department of Trade and Commerce with reference to the Depositors' Guaranty Fund of the State of Nebraska for the period from the date the Depositors' Guaranty Fund law became effective on January 3, 1911, to January 2, 1930, a period of exactly nineteen years. The results of this audit are presented in our comments which follow and the four exhibits accompanying this report but not typewritten. We also submit an untypewritten addendum with this report which consists of a list of the state banks of Nebraska, arranged alphabetically, showing the Guaranty Fund certificate number of each, so that any bank desired may be readily located in Exhibit "A" by certificate number. Respectfully submitted, THE ASSOCIATED CERTIFIED PUBLIC ACCOUNTANTS OF NEBRASKA, By R. H. WALKER, Certified Public Accountant. SCOPE AND NATURE OF AUDIT We examined and checked for the period audited the statements of average daily deposits on file with the Department of Trade and Commerce which were submitted by the various going state banks in Nebraska as required by law to be used as a basis for computing the assessments for the benefit of the Depositor's Guaranty Fund. Statements submitted as a basis for two assessments made during the period audited were missing and could not be located. A few errors of minor importance were discovered in a few of the statements examined. The assessments shown by the statements examined were compared with those made against each individual bank as entered in the ledger accounts. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis —26-- Schedules were prepared from the books of the Department of Trade and Commerce showing the assessments, withdrawals, refunds and other data affecting each of the 1,126 banks contributing to the Depositors' Guaranty Fund. The drafts drawn on these banks, constituting withdrawals from the going banks for the payment of losses in failed banks, were checked against the books or reports cof the various receivers who received and disbursed the money to claimants. The refunds made by the various receivers, in the case of receiverships, or the Guarantee Fund Commission, in the case of "sale asset" trusts to the Department of Trade and Commerce for the benefit of the Guaranty Fund were checked against the books and reports of the receivers and the Guarantee Fund Commission. The cash as shown by the books of the Department of Trade and Commerce to have been on hand to the credit of the Depositors' Guaranty Fund on January 2, 1930, was verified by certificates obtained from the depositories and examination of bank statements in the case of funds on hand but not deposited until subsequent to this date. We did not verify the balances due the Guaranty Fund from going banks, by correspondence with them, for the reason that many of the banks have not credited recent assessments to the Guaranty Fund on their books due to the litigation pending involving the legality of same. The balances due the Guaranty Fund from failed banks represented by the difference between amounts received from the fund and those refunded to it were taken from the books and reports of the various receivers and the total was reconciled with the monies shown to have been received and disbursed by the books of the Department of Trade and Commerce. OPERATIONS OF DEPOSITORS' GUARANTY FUND From January 3, 1911, to January 2, 1930. Accompanying this report and designated as Exhibit "A" is a list cf the state banks of Nebraska, 1,126 in number, which contributed to the Depositors' Guaranty Fund in accordance with the law which became effective January 3, 1911. This exhibit shows for each bank the transactions, in summary form, between it and the Department of Trade and Commerce on account of the Depositors' Guaranty Fund. Below are shown the grand totals for all banks during the nineteen year period covered by our audit as shown by Exhibit "A": Total Guaranty Fund Assessments Made Refunds Deposited with Banks by Department of Trade and Commerce Charges Due to Bank Consolidations $19,811,378.83 Total Charges to Banks $22,106,252.29 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis —27— 2,211,258.75 83,614.71 . S Drafts Paid by Banks from Assessments and Refunds Made Credits Due to Bank Consolidations Miscellaneous Credits to Banks $18,694,668.59 83,614.41 28,907.62 Total Credits to Banks $18,807,190.92 Balances of Unpaid Assessments and Refunds Due Fund January 2, 1930: Going Banks Closed Banks $ 2,954,108.59 344,952.78 $ 3,299,061.37 We found that the balances shown to have been due from banks as of January 2, 1930, per the individual ledger accounts kept by the department, were in agreement with the controlling account. However, in auditing these accounts we found errors in the accounts of thirteen banks of $195.08, net, which, when corrected, increased the balances shown to have been due from banks by the same amount. We conclude that the controlling account kept by the department was found to be in agreement with the individual balances in the ledgers because of arbitrary adjustments made therein. The attention of the department will be called to these errors so that corrections may be made. In checking the monies drawn from the various banks by the Department of Trade and Commerce for the payment of losses in failed banks, we found that the books and records of the receivers of failed banks, which were made available to us, showed the receipt of $18,695,101.34, while the books of the Department of Trade and Commerce show only $18,694,668.59, or a difference of $432.75. The books of the department show less money paid to receivers than the latter's books show, it will be observed. We were unable to locate the difference because some of the receivers' records were incomplete or missing. In the case of refunds made to the department by receivers, in the case of receiverships, and by the Guarantee Fund Commission, in the case of "sale asset" trusts, arising from the realization of assets in their charge, the department's records show the receipt of $2,250,817.90, while the records of the receivers and the Guarantee Fund Commission show refunds made of $2,253,702.93, a difference of $2,885.03. It will be noted that the records of the department show https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis less money received than those of the receivers and the commission. This difference could not be located from the records available to us. Of the amount shown by the department's books to have been received by it from refunds, the sum of $2,208,741.31 was deposited with and charged to the contributing banks. Deposits of these refunds were not made with the contributing banks subsequent to April 29, 1929, although received by the department. Consequently, the balance of the refunds amounting to $42,076.59 received by the department to January 2, 1930, not turned back to contributing banks, must be accounted for separatEly. This is accounted for below: PAID TO PREFERRED CLAIMANTS OR RECEIVERS IN FAILED BANKS AS FOLLOWS: $ 5,000.00 800.00 1,016.66 18,101.47 522.30 First State Bank, Litchfield Nebraska State Bank, Milligan Farmers State Bank, Cotesfield Citizens State Bank, Potter Farmers State Bank, Bushnell $25,440.43 Cash on Deposit: Continental National Bank, Lincoln Stevens National Bank, Fremont $ 2,724.18 731.93 3,456.11 Cash on Hand: Draft on Receiver, Atlas Bank of Neligh (Deposited in Continental Nat'l Bank 3-4-30) 13,179.95 .10 Error in Drafts $42,076.59 Accompanying this report and designated as Exhibit "B" is a list of the trusts which have made refunds to the Department of Trade and Commerce, as shown by its books for the benefit of the Depositors' Guaranty Fund which amounts have, in turn, been deposited and charged to the contributing banks (except a balance of $732.03 remaining on hand) during the nineteen year period audited. The total amount thus refunded by receiverships was $2,036,195.53, and the amount refunded by "sale asset" trusts was $173,277.81, a total of $2,209,473.34. Of this total the sum of $732.03 was not de- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -29 — posited with the contributing banks, leaving $2,208,741.31 as the umount refunded and deposited from this source. To this amount is added the sum of $2,517.44, likewise deposited, which was obtained om amounts previously withdrawn from banks for the purpose of paying losses in failed banks. The total thus arrived at is $2,211,258.75, which is in agreement with the total shown in Exhibit "A" as refunds deposited with banks by the department. It was previously stated herein that the total refunds made to the department, according to its books, by receivers and "sale asset" trusts was $2,250,817.90, which amount is $41,344.56 in excess of the amount shown above as having been received by the department from receivers and "sale asset" trusts. This difference consists of refunds made to the department subsequent to April 29, 1929, by the following trusts which monies were accounted for previously herein: Pioneer State Bank, Omaha Homer State Bank, Homer Wayne County Bank, Sholes Neligh State Bank, Neligh Security State Bank, Lynch Atlas Bank, Neligh Receiverships "Sale Assets" Total $16.500.00 $16.500.00 3,000.00 3,000.00 $ 1,664.61 1,664.61 3,000.00 3,000.00 4,000.00 4,000.00 13,179.95 13,179.95 $18,844.56 $22,500.00 $41,344.56 The total refunds for the period audited would, therefor e, be divided as follows: Receiverships "Sale Asset" Trusts $2,055,040.09 195,777.81 $2,250,817.90 • Reference is made to Exhibit "C", attached, which shows the failed state banks of Nebraska, in the order of payment , which received payments from the Depositors' Guaranty Fund to pay their losses during the nineteen year period audited. These payment s aggregate $18,717,021.13 as will be noted. • Of this amount $18,691,580.70 was paid from the proceeds of drafts drawn on and paid by solvent banks during the period. The balance of $25,440.43 was paid subsequent to April 29, 1929, from refunds made to the Guarant y Fund by receiverships and "sale asset" trusts, as was set out previous ly herein. The total drafts drawn on, and paid by, solvent banks was $18,694,668.59 during this period, as is shown by Exhibit "A". The balance of $3,087.89 thus withdrawn but not paid to failed banks to pay losses therein is accounted for below: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — 30— Deposited with Contributing Banks (Considered as Refund) Check to Bridgeport State Bank (Error in Draft) Check to State Treasurer (Paid in Error) Collection Expense $2,517.44 459.12 94.09 17.24 $3,087.89 There were 125 failed banks during the period audited whose losses were paid from the Depositors' Guaranty Fund, as shown by Exhibit "C", of which number, 89 refunded to the Guaranty Fund a portion of the amounts received from the realization of assets. In addition, the Guarantee Fund Commission in charge of the "sale asset" trusts made refunds to the fund from 30 of these trusts. The largest payment made from the Guaranty Fund to any failed bank during the period audited was to the Atlas Bank of Neligh, Nebraska, in the amount of $809,348.89 and the smallest amount paid was to the Trumbull State Bank of Trumbull, Nebraska, in the amount of $3,072.50. The largest refund made to the Guaranty Fund by receiverships during the period audited was from the American State Bank of Lincoln, Nebraska, in the amount of $307,358.38 and the smallest amount was $1,000.00 made by each of six receiverships. The largest refund made by "sale asset" trusts to the Guaranty Fund was by the American Bank of Sidney, Nebraska, in the amount of $34,250.00. ThE, smallest refund made by these trusts was by the Bostwick State Bank in the amount of $400.00. The balances due from failed banks represented by the difference between the amounts paid to them from the Guaranty Fund and the refunds to the fund, plus credits on account of assets purchased by the Guarantee Fund Commission at receivers' sales are shown in Exhibit "D", as shown by the books of the various receivers. .These emounts aggregate $16,330,620.92. The books of the Department of Trade and Commerce are not kept so as to show the amounts due from failed banks, but we are able to reconcile the total shown above with the total indicated by data compiled from the books of the Department of Trade and Commerce as follows: Payments to Failed Banks from Guaranty Fund Refunds from Receiverships $18,717,021.13 .2,055,040.09 Balance $16,661,981.04 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Deduct: Bid Price of "Sale Assets" Allowed as Credit $331,509.37 Difference Between Refunds to Guaranty Fund per books of Receivers and Department of Trade and Commerce 2,885.03 334,394.40 $16,327,586.64 Add: Payments to Receivers by Guarantee Fund Commission from Sale Assets (Considered as Charge) 2,601.53 Difference Between Payments from Guaranty Fund per books of Receivers and Department of Trade and Commerce 432.75 Balance due from Failed Banks per Exhibit "D" 3,034.28 $16,330,620.92 Of the total bid price of the Guarantee Fund Commission for the assets acquired by it at receivers' sales in the amount of $331,509.37, the sum of $195,777.81 has been refunded to the Guaranty Fund, to December 31, 1929, as is shown by our summary report on audit of 71 "sale asset" trusts dated July 29, 1930. It is estimated that the remaining assets of these "sale asset" trusts had a value of $163,426.91, as of December 31, 1929, which would provide for the refund of the balance of the Guaranty Fund's investment therein amounting to $135,731.56 and $27,695.35 in excess thereof. The sum of $2,601.53 has already been paid back to receivers as provided by law for the payment of expenses, which amount has gone to reduce the total payments to failed banks from the Guaranty Fund. The balances due the Depositors' Guaranty Fund for unpaid assessments and refunds from 652 solvent banks on January 2, 1930, was $2,954,108.59, while the balance due from 314 failed banks amounted to $344,952.78 on the same date. Attention is directed to the fact that, in our opinion, the Department of Trade and Commerce did not protect the interests of the Depositors' Guaranty Fund, except in a few cases, with reference to the balances due the fund from failed banks, aggregating $344,952.78 on January 2, 1930, by filing claims with the various District Courts at proper times. These claims would, of course, be classified as general https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — 32 — claims but would share in any amounts recovered on stockholders' double liability with the preferred and other general creditors, according to the decisions of the Nebraska Supreme Court on this question. While the recovery might not have been large by the filing of claims in the case of each failed bank owing the Guaranty Fund, it would have, no doubt, been worth while. We recommend that claims be filed for these amounts in the future and that steps be taken to file claims in the case of past failures, where possible. During the nineteen year period audited there were 38 regular semi-annual assessments made against solvent banks aggregating $4,680,337.08 and 21 special assessments aggregating $15,131,041.75, a grand total of $19,811,378.83. This is an average of over one million dollars per year for the past nineteen years. Drafts were drawn by the Department of Trade and Commerce against these assessments 66 times for amounts aggregating $18,694,668.59. Refunds received from receiverships and "sale asset" trusts by the department were returned to, and deposited with, solvent banks 27 times in amounts aggregating $2,211,258.75. BOOKS AND RECORDS Our audit of the Depositors' Guaranty Fund, proper, was somewhat handicapped by the inadequate books and records kept by the Department of Trade and Commerce. Ledger accounts were kept with each solvent bank showing the assessments, refunds, withdrawals and balances as to each. A controlling account was also kept. We have no serious criticism to make of this portion of the department's records. The other books kept were not adapted to the department's needs and, in fact, only served as memorandum books. Neither a regular cash book was kept showing the receipts of cash nor was a check register used to enter all checks drawn by the department in connection with the Guaranty Fund. One of the most serious defects in the accounting records in this department, in our opinion, is the absence of a permanent record containing accounts with the failed banks which have received payments from the Guaranty Fund. There is no record available in this department at present showing the balances owing the fund from failed banks which have received payments therefrom on account of losses. In our audit we were obliged to obtain this information from the receivers' books. It is our judgment that the department should keep such records that it will be able to account for all moneys coming under its control https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — 38 — in such form that it can be readily verified and comprehended by those interested. We were obliged to spend an unsual amoun t of time in auditing the records kept to obtain and verify the data and information desired. An adequate system would have eliminated a large part of this work. As to the method of keeping documents belonging to the office, we found considerable carelessness and laxity. We could not locate the bank statements from 1914 to 1923, inclusive, and no one seemed to know their whereabouts. Drafts for the earlier years were not available. Some of the statements of average daily deposit s submitted by banks were also missing. No uniform system of filing such documents seems to have been in use. Needless to say this matter should have attention with a view to correcting such methods. All of the records pertaining to the department should be systematically filed and kept so that they can be readily examined. The depart ment's officials and employees should desire this for their own protection. REPORT ON THE ADMINISTRATION FUND OF GUAR ANTY FUND COMMISSION AND THE SECRETARY OF THE DEPARTMENT OF TRADE AND COMMERCE August 1, 1930. Mr. A. C. Shallenberger, Chief Examiner, State Capitol Building, Lincoln, Nebraska. In re: Administration Fund of Guarantee Fund Commis sion and its successor, the Secretary of the Depart ment of Trade and Commerce. Dear Sir: We have audited the books and records of the Guarantee Fund Commission, the Department of Trade and Commerce and the State Auditor, with reference to the Administrati on Fund of the Guarantee Fund Commission, from May 4, 1923, to April 30, 1929, inclusive, and its successor, the Secretary of the Department of Trade and Commerce from May 1, 1929, to December 31, 1929, inclusive, and present the results of our examination in the accomp anying twenty exhibits and schedules of 66 pages, with comments. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Respectfully submitted, THE ASSOCIATED CERTIFIED PUBLI C ACCOUNTANTS OF NEBRASKA, By M. J. Holland, Certified Public Accountant. — 34 — COMMENTS ON THE AUDIT The various sources from which monies were received and purposes for which disbursed, which may be found in detail in the exhibits and schedules, are condensed in the following statement, which includes the whole period under examination, as well as the total receipts and disbursements with amounts on hand and available. SUMMARY OF RECEIPTS AND DISBURSEMENTS OF THE ADMINISTRATION AND ADMINISTRATIVE FUNDS MAY 3, 1923, TO DECEMBER 31, 1929 Receipts $436,214.46 99,617.80 6,775.74 927.77 Assessments Appropriations Interest on Cash Balances Miscellaneous $543,535.77 Total Receipts Disbursements $380,021.35 142,821.16 10,462.95 1,200.00 Salaries Office Expenses Office Equipment Compensation and Damages $534,505.46 Total Disbursements 9,030.31 Cash in Banks December 31, 1929 CASH AVAILABLE FOR USE DECEMBER 31, 1929 Appropriation 1929 (Under House Roll 280) Amount Used • Amount Unexpended Add: Cash in Banks December 31, 1929 Cash Available for use by Secretary of Department of Trade and Commerce, December 31, 1929 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — 35 — • $100,000.00 9,989.91 90,010.09 9,030.31 $ 99,040.40 THE ADMINISTRATION FUND For the purpose of this Audit we have included under the term "Administration Fund", the amounts obtained in the manner and from the sources immediately hereafter set out under I, II, III, IV and V. This item, in a total amount of $4,538.23 as shown by the minutes of meeting of Guarantee Fund Commission, under date of May 29, 1923, was derived from an assessment levied and collected by the Secretary of the Department of Trade and Commerce, under Section 9, House Roll 272. Guarantee Fund Commission Law of 1923, on all state banks and transferred to the Secretary of the Guarantee Fund Commissio n for the use thereof as Commission directed. II This item, in a total of $89,627.89, came from three Legislati ye appropriations, one under House Roll 672 in 1923, of $30,000.00 for the "Bureau of Banking support of Guarantee Fund Commission, under provisions of House Roll No. 272", and similar appropriations of the same amount by the Legislatures of 1925 and 1927, under House Rolls 329 and 295. The appropriations were for the Bienniums ending June 30, 1925, 1927 and 1929, respectively, and the amounts used and returned to the State Treasurer were as follows: 1923 Appropriation 1925 Appropriation 1927 Appropriation Totals Used $29,644.61 29,997.31 29,985.97 Returned $355.39 2.69 14.03 $89,627.89 $372.11 Date 7-25-25 8-29-27 7-30-29 III This item, in a total of $431,676.23, was received from what may he termed Assessments, made by the Guarantee Fvind Commissio n, on the banks in its charge in the amount of $376,252.12, curing the period May 4, 1923, to April 30, 1929, and from assessments made by the Secretary of the Department of Trade and Commerce on all banks and assets turned over to him by the Guaranty Fund Commission, under section 8, of House Roll No. 249, 1929 laws, and other banks for which he was receiver, in the amount of $55,424.11, during the period May 1, 1929, to December 31, 1929. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — 36 — Of this $376,252.12 received from assessments, and the $7,549.69 from interest and miscellaneous income by the Guarantee Fund Commission, the unexpended portion, $23,829.69, was turned over to the Secretary of the Department of Trade and Commerce, at the termination of the Guarantee Fund Commission, and of this $23,829.69 and the $55,424.11 received from assessments, with $153.82 from interest and miscellaneous, from May 1 to December 31, 1929, there was unexpended at the cicse of business, December 31, 1929, $9,031.31. IV This item, in a total of $9,989.91 came from a Legislative appropriation of $100,000.00, under House Roll No. 280 of 1929, under title "Department of Trade and Commerce" for "expense of organization and administration of state receiverships as successor of the Guaran_e Fund Commission, including the checking of all assets in transfer and administration of assets and property after transfer." The balance of the $100,000.00 appropriation, after deducting the $9,989.91 used as above indicated, is available, and, we an informed, I- eing used in the period following,IDecember 31, 1929. \if Under this item we include interest received on cash balances in banks by Guarantee Fund Commission of $6,681.75 and by Secretary of Department of Trade and Commerce of $93.99, making a total interest received of $6,775.74, and miscellaneous income of $867.94 received by the Guarantee Fund Commission and $59.83 by the Secretary of the Department of Trade and Commerce, making a total miscellaneous income of $927.77. AUTHORITY AND BASIS FOR ASSESSMENTS MADE BY THE GUARANTEE FUND COMMISSION AND SECRETARY OF THE DEPARTMENT OF TRADE AND COMMERCE The assessments from which the $376,252.12 was received by the Guarantee Fund Commission, probably were based on the idea incorporated in Section 13 of House Roll No. 249 of 1929 laws, which provide the Secretary of the Department of Trade and Commerce, shall, from time to time, allocate to the various receiverships the expense, by reason of such receiverships. They seem to have been based solely on the need of the revenue and the presumption that as the banks and various assets under the supervision of the Guarantee Fund Commission, as later under the Secretary of the Department of Trade and Commerce, were the beneficiaries of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 37 the services rendered and various other items of expense incurred, they were the proper subjects for levy to obtain the revnue. • In any event, the assessments were made, and the money expended was received from the banks and various assets under the supervision of the Guarantee Fund Commission, as later was done under the :,ecretary of Department of Trade and Commerce. The basis for making the assessments was not uniform. That is, :t was not wholly a percentage on assets, or a percentage on deposits, and it varied at times from one assessment to another. We are advised it was the purpose to make the assessments so that the charge to each bank or asset would be proportioned in part to the relative value cf that bank or asset to the others, and also in part to the value or benefit received, as well as the relative proportion of the cost. Taking the different elements into consideration, it is our opinion the assesments were fairly equitably made and the burden shared proportionally by the recipients of the benefits. As previously indicated, the allocation by the Secretary of the Department of Trade and Commerce was specifically authorized in Section 13 of House Roll No. 249 of 1929 laws. TOTAL DISBURSEMENT $534,505.46 The total disbursements of $534,505.46 as shown above are for the entire period, May 4, 1923, to December 31, 1929, and are made up of tl-oe items immediately hereafter listed with comment. SALARIES $380,621.31 This includes all regular salaries paid during the whole period of th2 Commission. Salaries ranged all the way from $10.00 per day to members of the commission and $60.00 to $150.00 per month for stenographers; $250.00 per month for assistant secretary and $850.00 for Counsel; to $625.00 per month for secretary. The increase in number of employees as well as increase in salaries of permanent employees appeared to extend gradually over the whole period. Any information as to any particular person or time during the period may be obtained by referring to schedules accompanying report. OFFICE EXPENSES $142,821.16 This item also includes the whole period and the following items: Employees Miscellaneous, Salaries and Traveling Expenses...4 98,583.57 Printing, Stationery, Office Supplies and Postage 24,385.75 Advertising Real Estate 1,514.63 Surety Bond Premiums 3,049.36 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis —38 — • 7,936.95 2c19.14 329.72 2,852.64 1,603.43 2,355.97 Telephone and Telegraph Express and Drayage Repairs—Office Machines Special Attorney Fees and Court Costs Accountants Fees Miscellaneous $142,821.16 Total as above The salaries included in the first item above are nearly wholly those of occasional employees in connection with whom our information as to the parts pertaining to salary and to expense were not clearly defined. OFFICE EQUIPMENT $10,462.95 This includes desks, files, typewriters, machines and various other items of equipment. COMPENSATION AND DAMAGES $1,200.00 This item represents amount paid in settlement of claim for damages for injury sustained by an employee while in service of Commission. CASH IN BANK DECEMBER 31, 1929 $9,031.31 This item was verified by certificates from the depositories, and, with the balance of appropriation of 1929 in the hands of the State Treasurer, makes up the $99,041.40 cash available for use December 31, 1929. The audit was made in detail, except as otherwise hereafter stated, and covered the whole period from May 4, 1923, when the members of the Guarantee Fund Commission took the oath of office to December 31, 1929. It also included an examination of the rewords of the State Auditor with reference to the expenditures from the various appropriations, as payments for those expenditures were made direct from the State Treasury on warrants for claims duly filed and approved by the State Auditor. The minutes of the meeting of the Commission were accepted as evidence of payment of the $4,538.23 received from the appropriation under House Roll No. 272 in 1923. BOOKS AND RECORDS Aside from the period covered by the expenditure of the $4,538.23 for May, June, July and August, 1923, to which reference is made in the preceding paragraph, the books and records of the Guarantee Fund Commission, the Department of Trade and Commerce, and the office of the State Auditor, were in good order with the desired evidence and information readily available. 39 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 STUDY OF CAUSES OF BANK TROUBLES AND BANK FAILURES IN NEBRASKA WITH SUGGESTIONS FOR THEIR CORRECTION • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis STATE OF NEBRASKA DEPARTMENT OF TRADE AND COMMERCE BUREAU OF BANKING STUDY OF CAUSES OF BANK TROUBLES AND BANK FAILURES IN NEBRASKA WITH SUGGESTIONS FOR THEIR CORRECTION , STATE OF NEBRASKA DEPARTMENT OF TRADE AND COMMERCE BUREAU OF BANKING https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A TO ALL STATE BANKS IN NEBRASKA: This Department has an inside picture of State Banks and a deal of information not available to the average banker as to the condition of banks and the causes of trouble and failures. This information has been studied and checked with the records of other states. We find dangerous tendencies have crept into many banks. We feel that these tendencies should be reported and corrections made before they get beyond control. On the other hand many of our banks have achieved notable success. And their practices and standards should be carefully studied. With these two thoughts in mind we list some of these dangerous tendencies to be corrected or eliminated. And we also include other suggestions whose soundness and practicability are well established. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • 1. EXPENSES IN EXCESS OF EARNINGS. Banks must make money to be safe. Study ways to increase your earnings and reduce expenses. 2. DECREASING DEPOSITS. The causes should be removed, if possible, by cleaning-house from within or effecting a reorganization in some manner. 3. TOO MANY BANKS IN THE TERRITORY. This condition has been largely corrected in Nebraska, but where it still obtains there seems to be only one solution, viz., consolidations. Do not permit petty or trivial matters to prevent consolidations. 4. INSUFFICIENT VOLUME. Your Officers and Directors should give their best thought to increasing the volume of your business. If you find it not possible then consolidation or liquidation seems to be the next step. 5. ACCOUNTS THAT DO NOT PAY. Such accounts should be thoroughly analyzed. The depositors should be shown the facts and asked to increase their balances to a paying basis, pay a, reasonable service fee, or close the account. Unprofitable business should not be taken because of keen competition or any other reason. A bank is not a charitable institution. 6. INCOMPETENT, DISHONEST OR EASY GOING MANAGEMENT. Change at once. Directors in the past have in many cases injured or even ruined their banks by delaying too long, the correction or elimination of such management. 7. CARELESSNESS IN KEEPING BOOKS AND BANK RECORDS: LISTING OVERDRAFTS, AND OTHER IRREGULAR ITEMS AS CASH, ETC. The Department can see no excuse for delinquencies of this character. We recognize that Officers and Directors may not always be able to correct other' criticisms but we feel that they can and must keep clear and exact records of their banks. S. OTHER REAL ESTATE. Other Real Estate is never a desirable asset in a Bank. It is often an expense and causes unfavorable comment when disclosed in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 your Published Statements. Sell it if possible or if in the sound judgment of your Officers and Directors, it should be held for later disposition, form a Holding Company to purchase it from your bank at Book Value and take it out of your assets. If neither of these suggestions can be followed then you should charge it off at a substantial rate each year. 9. SECOND MORTGAGES. Second mortgages should not be taken except to secure a debt previously contracted. Most "Other Real Estate" comes into banks through foreclosure of second mortgages and many bankers report their institutions would have been ahead if they had taken their initial loss and not attempted to redeem through acquiring "Other Real Estate". 10. NON-LIQUID AND FROZEN ASSETS. Our records disclose that many banks could have been saved if theie Officers and Directors had started soon enough to collect, secure or otherwise give such loans needed attention. If you have such assets, insist upon monthly or periodical payments, even though the payments have to be small. There is seldom any other way to handle these loans. Furthermore, amortizing loans in this manner, is generally as beneficial to the borrower as to your bank. 11. EXCESS LOANS. This Department has previously sent you a warning as to making excess loans in violation of the Statute. It is our purpose to enforce this Statute. Not only should your loans always be kept within the Statutory 20% limit, but banks are urged increasingly to require security on all loans in excess of 10% of your Capital and Surplus. 12. LARGE LOANS TO DIRECTORS, STOCKHOLDERS AND TO CORPORATIONS OR PARTNERSHIPS IN WHICH THEY ARE INTERESTED. Such loans should be carefully and, impartially scrutinized by thz Directors, who should record their approval in the Minute Book. The total of such loans should never be permitted to become excessive. 13. EXCHANGE OF PAPER BETWEEN AFFILIATED BANKS. Our Examiners are instructed to challenge this practice whereever found and to require its discontinuance. The records show that the practice generally results in unwarranted extension of credit. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 14. RECIPROCAL LOANS AMONG BANK OFFICERS. We have reference to an Officer of Bank "A" borrowing personally from Bank "B" and in consideration of such loan, an Officer of Bank "B" borrows from Bank "A". This practice is so obviously unsound and has resulted in so many unnecessary losses in the past that the Department is asking for the elimination of all such loans wherever discovered. 15. OUTSIDE LOANS. Experience shows that outside loans have caused more trouble to banks than any other class of loans. They should be indulged in sparingly, if at all, and only when they are adequately secured. 16. NOTES OF STOCKHOLDERS OR OF HOLDING COMPANIES GIVEN TO REMOVE REAL ESTATE OR TO EFFECT A CONSOLIDATION OR REORGANIZATION. If possible, Stockholders and Holding Companies should be required to pay cash in travsactions of this kind. If notes are taken, however, they must be steadily reduced and liquidated within a brief period. 17. CAPITAL LOANS. Under present conditions you should not loan to a borrower who will have to be closed out to enable you to get your money. You cannot afford to assume the risk of the business of the borrower in making loans. 18. LOANS DEPENDING ON ENDORSERS. Ordinarily if the original maker and beneficiary of the proposed loan is not good, you should not make the loan, regardless of the endorser. Such loans usually run indefinitely and ultimately an enemy is made of the endorser, if he is forced to pay. Experience also shows that notes with too many endorsers are especially hard to collect. 19. POLICY OR FAVOR LOANS. Such loans are usually made to Officers of corporations which carry a nice balance, or to Treasurers of Public Funds,—individuals not legitimately entitled to such loans. 20. NEGLECTING CHATTEL MORTGAGES. Chattel Mortgages need frequent checking and should be checked and renewed every six months. Experience shows that livestock, being prepared for market, is usually the best and most liquid security, while household goods, Store fixtures and equipment are the poorest. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 A Pr 21. ADDING INTEREST TO PRINCIPAL OF NOTES. fk If the borrower cannot pay the interest, the loan is usually doubtful and instead of being increased the transaction should be brought to a show-down. 22. LOANS AND INVESTMENTS. Diversify your loans and investments. In addition to your rerequired Cash Reserve you should have an extra Reserve in the form of some "A" notes and the bulk of your Note Case should be Class "B" assets. Class "C" loans are presumably collectible, but experience shows that if a bank has too many "C" or Capital loans, it may be forced to close its doors during disturbed conditions, even though, by analysis, it seems to be solvent. 23. TOO MANY LONG TIME AND SECOND RATE BONDS. A number of Banks bought bonds upon the recommendations of salesmen, without having them checked or rated by independent and impartial bond experts. Furthermore, some banks, without regard to maturity or payment of principal, sought bonds to yield a high interest rate. Only the highest grade bonds should be purchased and most of them should have a maturity of five years or less. 24. GRANTING CREDIT TOO FREELY AND WITHOUT COMPLETE CREDIT INFORMATION OR WITHOUT SECURITY AS PROVIDED BY LAW—SEE SECTION 15, Page 32, 1929 NEBRASKA BANKING LAWS. See that your credit files are up-to-date, your Financial statements current, or your notes adequately secured. 24a. FALSE FINANCIAL STATEMENTS BY BORROWERS. Statements should be signed and sworn to before a Notary. One man has been sent to the penitentiary in Nebraska for making a false statement. If you suffer a loss due to a false statement, do not fail to prosecute. 25. EXCESSIVE BILLS PAYABLE. Borrowing should be for temporary purposes only and you should not borrow money with the idea of re-loaning it. Do not use all your credit and thus render your bank helpless if anything unexpected happens. 26. EXCESSIVE INVESTMENT IN BANKING HOUSE, FURNITURE AND FIXTURES. These items should be in proportion to the size of your bank. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6 • 27. CONTINGENT LIABILITIES. All the liabilities of your bank must be shown on your books. There must be no undisclosed gentleman's agreements or secret understandings creating a liability on the bank. 28. LARGE PUBLIC OR OTHER TEMPORARY DEPOSITS. If accepted, invest the funds in liquid securities which can be sold or collected without delay when and if, such deposits are suddenly withdrawn. 29. UNWARRANTED DIVIDENDS. This is now covered by Statute. Dividends should not be paid unless losses are charged off, "Other Real Estate" adequately written-down, necessary amount transferred to Surplus and your Undivided Profits and Reserve Accounts adequately built-up. Many failed banks would be open today if they had not distributed all their earnings during the prosperous years from 1910 to 1920. 30. PROBABLE LOSSES STILL CARRIED AS ASSETS. Do not permit your losses, determined or probable, to accumulate. Charge-off these losses promptly. Keep your banks clean. 31. USE OF GIFTS OR PRIZES TO OBTAIN BUSINESS. These methods have usually been found costly and unsuccessful and have been largely discontinued. 32. MEETINGS OF DIRECTORS. The Department requests Boards of Directors to meet monthly. Directors cannot properly perform their duties if they meet less frequently. This study has been prepared for all Officers and Directors of State Banks in Nebraska. Yours very truly, DEPARTMENT OF TRADE AND COMMERCE, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Geo. W. Woods, Bank Commissioner. eikirwzt 7 A HOUSE JOURNAL FIFTY-FIRST (EXTRAORDINARY) SESSION SIXTEENTH DAY House of Representatives, Lincoln, Nebraska, November 14, 1935. The Speaker called the House to order at 9:00 A. M. Prayer was offered by the Chaplain. Roll was called and all members were present, excepting: cused: Stringfellow. Ex- The Journal for yesterday was approved as corrected. STANDING COMMITTEE REPORTS Engrossed and Enrolled Bills SENATE FILE NO. 11 (House Amedments) —correctly engrossed and delivered to Committee on Arrangement, Phraseology and Correlation. (Signed) EDITH BECKMAN, Chairman. Arrangement, Phraseology and Correlation SENATE FILE NO. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 Re-engross with amendments. ments mimeographed). (Signed) (Amend- ALFRED SOFTLEY, Chairman. 228 HOUSE JOURNAL Finance, Ways and Means HOUSE ROLL NO. 32 General file. (Signed) • GEO. E. NICKLES, Chairman. BILL ON FIRST READING The following bill was introduced and read the first time: HOUSE ROLL NO.. 34. Introduced by Representative Walter M. Burr of Adams. A Bill For an Act relating to the general welfare; to provide revenue for social security; to authorize the department of roads and irrigation of the State of Nebraska to engage in the business of importing and retailing petroleum products; to provide that the profits from such commerce shall be appropriated to the state assistance fund for social security; and to declare an emergency. MOTION—To Read H. R. No. 34 Second Time Mr. Burr offered the following motion: Nut. SPEAKER: I move that the rules be suspended and House Roll No. 34 be read the second time. Fifty-eight having voted in favor of the motion, the same was adopted. BILL ON SECOND READING The following bill was read the second time: HOUSE ROLL NO., 34. Introduced by Representative Walter M. Burr of Adams. A Bill For an Act relating to the general welfare; to provide revenue for social security; to authorize the department of roads and irrigation of the State of Nebraska to engage in the business of importing and retailing petroleum products; to provide that the profits from such commerce shall be appropriated to the state assistance fund for social security; and to declare an emergency. • MOTION—To Place H. R. No. 34 on General File Mr. Burr moved that under the suspension of the rules House Roll No. 34 be placed on general file. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S SIXTEENTH DAY—November 14, 1935 229 Fifty-six having voted in favor of the motion, the same was adopted. EXCUSES Representative Barnes asked to be excused for Friday and Saturday, which request was granted. Representative Schroeder asked to be excused for Saturday, which request was granted. COMMITTEE OF THE WHOLE On motion of Mr. Putney, the House resolved itself into a Committee of the Whole to consider bills on special and general file. Mr. Bishop was called to the Chair. When the Committee arose, it submitted the following report: MR. SPEAKER: Your Committee of the Whole has had under consideration: SPECIAL FILE SENATE FILE NO. 11 (House Amendments) —re-engross with the following amendments: Amend the Engrossed House Amendment, page 1, line 2 by inserting before the word "majority" therein the article "a"; and in line 3 of said Engrossed House Amendment strike the figures and symbot "60%" and insert in lieu thereof the words "sixty per cent,". —and report the same back to the House with the recommendation that the amendments be re-engrossed and the bill advanced to third reading. (Signed) JOHN S. BISHOP, Chairman. On motion .of Mr. Bishop, the report of the Committee of the Whole was adopted. MOTION TO RECESS On motion of Mr. Hyde, the House recessed until 11:00 A. M. AFTER RECESS The Speaker called the House to order at 11:00 A. M. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 230 HOUSE JOURNAL PRESENTED TO THE GOVERNOR November 13, 1935. MR. SPEAKER: Your Joint Committee on Engrossed and Enrolled Bills respectfully report that we have this day, at 2:00 P. M., presented to the Governor for his approval: SENATE FILE NO. 7 ( Signed) ARCHIE C. O'BRIEN, Chairman Senate Engrossing Committee. EDITH BECKMAN, Chairman House Engrossing Committee. November 14, 1935. MR. SPEAKER: Your Joint Committee on Engrossed and Enrolled Bills would respectfully report that we have this day, at 11:10 A. M., presented to the Governor for his approval: HOUSE ROLL NO. 14 (Signed) ARCHIE C. O'BRIEN, Chairman Senate Engrossing Committee. EDITH BECKMAN, Chairman House Engrossing Committee. COMMITTEE OF THE WHOLE On motion of Mr. Dunn, the House resolved itself into a Committee of the Whole to consider bills on general file. Mr. Bishop was called to the Chair. When the Committee arose ,it submitted the following report: MR. SPEAKER: Your Committee of the Whole has had under consideration: GENERAL FILE HOUSE ROLL NO. 31 —and report the same back to the House with the recommendation that we report progress and ask leave to sit again. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Signed) JOHN S. BISHOP, Chairman. SIXTEENTH DAY—November 14, 1935 231 On motion of Mr. Bishop, the report of the Committee of the Whole was adopted. MESSAGE FROM THE GOVERNOR Executive Office, November 14, 1935. To the Honorable W. H. O'Gara, The Speaker of the House of Representatives: I am directed by His Excelelncy, the Governor, to inform your honorable body that he has this day approved the following acts, viz: SENATE FILE NO. 7 (Signed) THEO M. OSTERMAN, Secretary to the Governor. SIGNED BY THE SPEAKER S. F. NO. 4 While the House was in session and capable of transacting business, the Speaker announced that he was about to sign and did sign Senate File No. 4. STANDING COMMITTEE REPORTS Engrossed and Enrolled Bills SENATE FILE NO. 11 (House Amendment) HOUSE ROLL NO. 21 --correctly re-engrossed and engrossed, respectively and delivered to Committee on Arrangement, Phraseology and Correlation. (Signed) EDITH BECKMAN, Chairman. Arrangement, Phraseology and Correlation SENATE FILE NO. 11 (House Amendment). grossed. Correctly re-en- —advance to third reading. HOUSE ROLL NO. 21 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Re-engross with amendments. ments mimeographed). (Signed) (Amend- ALFRED SOFTLEY, Chairman. HOUSE JOURNAL 232 MOTION TO RECESS On motion of Mr. Hastings, the House recessed until 1:30 P. M. AFTERNOON The Speaker called the House to order at 1:30 P. M. Roll was called and all members were present, excepting: cused: Stringfellow. Absent: Ex- O'Brien, Herrick. EXCUSES Representative Sallander asked to be excused for Monday and Tuesday, which request was granted. Representative Long asked to be excused for Saturday afternoon, which request was granted. REPORT OF THE BANKING COMMITTEE ON THE AUDIT OF THE BANKING DEPARTMENT CONDUCTED BY THE SECRETARY OF STATE Lincoln, Nebraska November 14, 1935 MR. SPEAKER: Your Committee on Banks and Banking to whom was referred the printed State Auditor's report of the Banking Investigating Committee as authorized by Chapter 20, Laws of Nebraska, 1935, as amended by House Roll No. 28, Fifty-first (Special) Session, Nebraska State Legislature, have had the same under consideration and beg leave to report as follows: "Your Committee has held open hearings on the matter in the House on the evenings of November 11 and 12, 1935, as well as executime sessions and makes the following recommendations, to-wit: First—That the House proceed to consider additional information which may be available from or through its membership. Second—That if any such information so offered appears to be valuable that the same be spread upon the House Journal for the purpose of preservation as a permanent record. Third—That if the House deems it proper after gathering all in- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIXTEENTH DAY—November 14, 1935 233' formation and evidence by resolution or otherwise to make such additional recommendations as it may consider necessary or proper. Fourth—Your Committee finds much evidence in support of the claim that the Banking Department under Mr. E. H. Luikart has been repeatedly prostituted for political purposes and your Committee condemns such practices as being not only unethical and unlawful but subversive of good government. Fifth—Your Committee finds that state moneys were unlawfully diverted from the Banking Department in 1932 and used in mailing out campaign letters furthering the political interests of Governor Charles W. Bryan, then a candidate for re-election, and your Committee recommends that the Attorney General forthwith commence and prosecute iuch civil action or actions as may be necessary to recover back all state moneys so diverted. Sixth—Your Committee finds that a number of employees in the State Banking Department have been and are now receiving larger salaries than are permitted under the statutes of Nebraska, and we respectfully recommend that the Attorney General be required to commence and prosecute the. necessary actions to recover back .all r.uch illegal excess salaries so paid and that henceforth no salaries be paid in said Department in excess of that fixed by law. Seventh—Your Committee further reports that it finds negligence and inefficiency on the part of the attorney for the Banking Department, Mr. F. C. Radke, and we respectfully recommend that said Radke be forthwith discharged from the employ of the state. Eight--Your Committee further recommends that Mr. E. H. Luikart be severely censured and condemned for misconduct while superintendent of banks in the following particulars: 1. Permitting the solicitation of funds for campaign purposes from employees in his office and using the same and the time of his employees for the advancement of political candidates. 2. For the use of state funds from his Department for the furtherance of the political campaign of Charles W Bryan. 3. For paying or permitting to be paid illegal and excess salaries to employees in his office. 4. For voting and holding stock in the State Bank of Stella in violation of law while he was acting as superintendent of banks. 5. In attempting to obtain for the members of his family stock in the State Bank of Stella without paying therefor but by virtue of his position as superintendent of banks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HOUSE JOURNAL 234 6. In refusing to resign as receiver of failed state banks after he had been removed from the office of superintendent of banks although requested so to do. Ninth—Your. Committee further recommends that the attention of the District Courts be directed to the evidence and findings of the Committee and the Committee further recommends to all District Courts, before whom bank receivership actions are pending, that the said E. H. Luikart be relieved of his duties as receiver and that the said District Court appoint in his stead the superintendent of banks. Tenth—Your Committee recommends a complete revision of the present banking law to the end that political corruption and fraud may be prevented or discovered and punished, and state banks operated in harmony with wise and just rules in the interest of the public generally, and the patrons of state banks in particular. Eleventh—Your Committee further recommends that all evidence taken by the Standing Committee of the House on Banks and Banking be transcribed and that all transcripts of evidence and depositions in, the hands of the Banking Investigating Committee be filed with the State Auditor of Public Accouts and that said Banking Investigating Committee be discharged. Respectfully submitted, GATES LILLEY, Chairman GEORGE E. TRUMAN JAS, A. BROWN JOHN MCLELLAN MASON E. HYDE B. B. WEBBER EUGENE PERIGO PETER H. CLAUSSEN ED. F. LUSIENSKI Byrkit and Exhibits DEPOSITION taken by the Auditor of Public Accounts of the State of Nebraska, acting through the Bank Investigation Committee appointed by him under an Act of the 1935 Legislature entitled House Roll No, 392, in effect March 15, 1935, in furtherance of the investigation and audit of all business transactions and activities of the Department of Banking with reference to the Centralized Receivership, State House, Lincoln, Nebraska. Wednesday, October 23, 1935, 4:00 P. M. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIXTEENTH DAY—November 14, 1935 BEFORE 235 Ellsworth L. Fulk, Chief Examiner. Frank B. Watson, Attorney and Ass't Examiner. W. D. Messenger, Assistant Examiner. W. J. Williams, Investigator. W. H. Pansing, State Accountant. At the close of the public hearing in the Centralized Receivership, October 23, 1935, the following deposition was taken regarding matters pertaining to the testimony at the public hearing. W. M. BYRKIT, Of lawful age, being be me first duly examined, cautioned and solemnly sworn, as hereinafter certified, deposeth and sayeth as follows, viz: Examined by MR. WATSON: 4—Will you please give your name and address to the reporter? A—W. M. Byrkit; Lindell Hotel, Lincoln, Nebraska. Q—Where are you employed, Mr. Byrkit? A—I handle investigation work for various people and firms. Q—Have you ever been employed by the Attorney General of the State of Nebraska? A—I have, several times. Q—Were your ever employed to make audits of a bank at Walton? A—Yes, I was. Q—What bank was that? A—The Farmers & Merchants Bank. Q—Did you make a report on that matter to the Attorney General? A—Yes, I did. . Q—Have you got a copy of that? A—I have. Q—Now, Mr. Byrkit, you handed me a copy of the so-called Hoagland report of the Farmers State Bank, Genoa. A—Yes, sir. Q—Dated March 27, 1931. Mr. A. B. Hoagland is now deceased, they tell me? A—That is right. Q--While he was living did you discuss this report with him? A—Yes, I did. Q—And did he make this report at the request of the Banking Department of the State of Nebraska? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HOUSE JOURNAL 236 A—No, he did not. Q—He was working for— A—He maae this report for the Attorney General Q—Of the State of Nebraska? A—Yes, he did. Q—Who was the Attorney General? A—C. A. Sorensen. Q—After this report was made—you get your information from what he told you, do you not? A—Absolutely; that is the only source I had of the information. Q—Now, I want you to testify only from what Mr. Hoagland told you, otherwise to make your qualifications: Now, did Mr. Hoagland tell you that page 5 of this report to the department was changed after he submitted it to the department? A—Yes, sir; he did. Q—In what way was this Page 5 changed? A—Well, I don't know ,but it was changed; I never saw them. Q—Who ordered it changed, did he tell you? A—Why, Mr. Hoagland told me that his report of this audit was changed after he had made it to his chief in the Banking Department. Q—Just a minute, you said he was working for the Attorney General. A—At this time that this report was made from his own private files. Q—I don't get you. A—Well, he had files and records at home, outside of the Banking Department. Q—Who ordered this audit (referring to file in counsel's hand)? A—Well, this particular audit covered this here (indicating); the Attorney General ordered it. Q—Oh, he kept a copy of the one that I have. The particular paper that you have in your hand, he kept that copy at his home in his own files? A—Yes, sir, he did. Q—And that is the one he gave you? A—He did, and he told me his reason for doing it. Q—Why? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIXTEENTH DAY—November 14, 1935 237 A—Because if he was ever subpoenaed on the witness stand relative to any of his transactions, he would have a true and exact copy. Q—And you were just to keep that safely for him? A—Yes. 1Q—Did he tell you what changes were made on Page 5? A—No, he didn't; he told me something about it, but I don't recall what those changes were. Q—You have no independent knowledge of what they were? A—No, because I tried to ascertain just what changes had been made in the Banking Department. Q—Have you studied this report? A—Quite a bit. Q—What is you experience as an auditor? How long have you been an auditor? What are your qualifications? A—Well, as an auditor, my qualifications are not very great. Q—Well, just L state what they are. A—Well, nothing only in matters of investigation work. I have been doing the investigation work. (4—And digging up the information and auditors have compiled it for you? A—That is right. (4—You never worked on the Genoa deal yourself? A—Yes, I did, but I didn't compile this. Q—Did you help Mr. Hoagland? A—No, Mr. Hoagland was in the department at that time. We attempted to obtain these C. D.'s,—(interrupted) (4—Now, just state what Mr. Hoagland told you this report brought out with relation to Charles W. Bryan. A—Well, Mr. Hoagland—I talked.to him, it was in July of 1931, and Mr. Hoagland told me that he was going to lose his job for making this report, and he wrote that letter which was attached on the back of it, in an endeavor to white-wash the thing so he would hold his job, and he told me, in his own language, that there was just plenty of heat turned on him —that is his own language—because he made this report. Q—Now, the letter you, refer to is a letter of June 19, 1931, to Mr. E. H. Luikart, Secretary, in re Farmers State Bank, Genoa, with https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HOUSE JOURNAL 238 reference to the fraudulent issuance of certificates of deposit to K. C. Knudson? A—That is right. Q—Who is K. C. Knudson? A—K. C. Knudson was head of the Banking Department and president of this Genoa bank, and president of the Coconut Grove, Florida, bank, all at the same time. Q—And what time was that? A—Well, that went over a period of years; at the time of this transaction it was 1925-1924, 1925, 1926, 1927 and along in there. Q—Now, Mr. Hoagland made this statement in his letter: "That my report in no way reflects that Mr. Bryan received funds from the fraudulent issuance of certificates of deposit in May and June, 1925, and is in no way involved in my report." Is that the statement you refer to as the white-wash of Mr. Bryan? A—Yes, sir; that is the statement. Q—Now, what did he say was the true state of affairs, if that is not the true state of affairs? A—Well, I don't know that he explained it at that time, only the conversation I had with him was relative to him compiling this and furnishing the facts, and what it was going to cost him, and he did lose his job; he was discharged. Q—Yes—he left the department in 1931; the department told us it was because they had no work for him to do at that time. As a matter of fact ,a great many banks were failing in August and September, 1931 weren't they? A—That was one of the busiest times the receivership division eveh had—you can go over a period of months—(interrupted) MR. WATSON: Mr. Fulk would like to ask you some questions. INTERROGATION BY MR. FULK: Q—Do you know the consideration Mr. Bryan gave the bank for these C. D.'s listed on Page 5? MR. WATSON: Can you answer that question? A—No—only through hearsay, because I don't have the facts. MR. WATSON: You see, Mr. Fulk, Mr. Hoagland told this story to Mr. Byrkit. Mr. Brykit is not an auditor and he has heard it second-hand, and now Mr. Hoagland is dead, so https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis im SIXTEENTH DAY—November 14, 1935 239 we cannot go to him for the information, and I believe we have got to go to some auditor or agent or assitant receiver or some one who worked on that bank's original files to get the low-down on this. Q—Do you know who the assistant receiver was in this bank at the time Mr. Hoagland made.the audit? A—I knew at the time, but I have just forgotten; I can find it in my records; I had it at one time and Jam quite sure I have yet, but in taking these records out of the safe deposit box, I could not ascertain that, because I knew Mr. Hoagland was dead and I knew the situation, what we were up against. Q—Well now, if I was to tell you that Mr. Roland Buell was the receiver, would that refresh your memory? A—Well ,that name is familiar to me, but relative to this bank, it would not. MR. WATSON: We would be glad to have you leave this copy with us so we can go over it, and we will make Page 5 an exhibit, and make the letter of June 19th an exhibit, and have the reported take a copy before you leave here today, then we can compare those exhibits with what the department offers us when they recover their copy of the Hoagland report which is supposed to be in the possession of Mr. Bryan, who is now Mayor of Lincoln. MR. BYRKIT: May I make a statement? MR. WATSON: Yes, we will hear what you have to say. MR. BYRKIT: During the special session in 1931 the session passed a resolution and demanded—they later changed the word "demand" to "request"—that the Attorney General for the State of Nebraska investigate the Genoa State Bank, the Farmers & Merchants Bank of Walton, Nebraska, and the Van Peterson alleged discrepancies of $10,000.00 while chief counsel for the Guarantee Fund Commission. The Attorney General was instructed to make these investigations and submit a written report to the 1933 Legislature. That is why these records now exist. This investigation was to have been carried on strictly non-partisan, which the Attorney General attempted to do, and myself, as one of the investigators was given those specific instructions. In 1933, the Attorney General, Mr. C. A. Sorensen, did make his report to the Legislature. This report contains a true and exact copy of that document we are looking at now, known as the Geona State Bank, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HOUSE JOURNAL 240 Hoagland report. It also contained my own original complete report of the Farmers & Merchants Bank of Walton; it also contained the complete report of the Van Peterson transaction; it also contained the complaint which Mr. C. A. Sorensen drafted to sue Van Peterson to recover this $10,000.00 for the Guarantee Fund Commission. It is necessary that the Governor sign such a petition. This petition was prepared by the Attorney General's office, sent to Governor Bryan's office and although the Attorney General was ready and willing, had all the evidence to prosecute this case or suit for recovery, Governor Bryan not only refused to sign this petition but never as much as returned the original to the Attorney General's office. All of these facts that I have just told you of was in the Attorney General's original report to the Senate of 1933. The Senate accepted this report, and immediately someone offered a resolution that the Senate accept the Attorney General's report and that it be placed in the files of the Senate, that no member of the press would have any access to it, and that no one, unless he was a member of the Senate, could see those records. The next day Senator McCarter, who was then President pro tern, of the Senate, called me into the President's office and asked if I would look at this file and see if it was all there. Mr. John Chapman. who was then Chief Clerk of the Senate, produced the files and we, meaning Senator McCarter and myself, sat down and went over these records, and he asked me if there was anything missing, and there was. The Walton bank report was gone. Senator McCarter asked me if I would make another copy and certify it, which he would pay for; I made that copy for the Senate, and Senator McCarter did pay me for it, that is, he paid my stenographer for drawing it. We certified it at the Capitol, and that is all the cost there was to it, a matter of two or three hours. Shortly after that the complete file disappeared from the Senate Files. We were looking for it one day and was unable to find it. I asked the Chief Clerk where this file was. In said maybe it has been stolen. He later changed that statement and said it had been taken out of the files, because he had instructions to keep that away from the Senate floor. I asked him if he knew who got these records, and he said he thought he did know. I asked him who got them. He didn't tell me who got the record, but he said if he ever was subpoenaed that he would tell the truth, that he would not perjure himself for any man. That, gentlemen, biings the history up to date. That is why I thought your report should be clarified—for that purpose only. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIXTEENTH DAY—November 14, 1935 241 Q—That is all there is, Mr. Byrkit, on Genoa? A—Yes, that is all. WITNESS EXCUSED (EXHIBIT 1) (Byrkit Deposition) "June 19th, 1931. Mr. E. H. Luikart, Deputy Secretary, Department of Trade and Commerce, Lincoln, Nebr. In Re: Farmers State Bank, Genoa, Nebraska with reference to fraudulent issuance of certificates of deposit to K. C. Knudson: Dear Mr. Luikart: With reference to my report in regard to the above matter, you will note that the fraudulent certificates of deposit were issued to K. C. Knudson in May and June, 1925. That in January, 1926 ,the issuing of these certificates of deposit Were covered by the entry of the Larson notes in the loans of the bank. That on April 17th, 1926, a draft was drawn upon the Florida Exchange Bank, Coconut Grove, Florida for the sum of $10,000.00; that this draft was finally paid by a transfer of funds from the Florida Exchange Bank of Coconut Grove, Florida to the credit of the Farmers State Bank, Genoa, Nebraska, at the Hanover National Bank in New York. The statement of the Hanover National Bank is in the records and clearly shows this fact, so that in the transaction the Farmers State Bank, Genoa, Nebraska, received full consideration on April 17th, 1926 for the issuing of the certificates of deposit in May and June, 1925. You will rte further, upon page 4 of my report, that after the Farmers State Bank at Genoa, Nebraska had received full consideration for the issuing of the Certificate of Deposit that the Certificate of Deposit was again renewed in the name of the Florida Exchange Bank of Coconut Grove, Florida on November 3rd, 1926. You will not note that on March 1st, 1927, in my report, upon page ;), that the certificates of Deposit for $10,000.00 that was issued in the name of the Florida Exchange Bank, Coconut Grove, Florida (upon which the Farmers State Bank of Genoa, Nebraska had received a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 242 HOUSE JOURNAL transfer of funds from the Florida Exchange Bank, Coconut Grove, Florida in April 1926) was cancelled. That when this certificate was cancelled the bank issued certificates Nos. 1785, 1786 and 1787 to Mr. C. W. Bryan; that my report in no way reflects that Mr. Byran received funds from the fraudulent issuance of certificates of deposit in, May and June, 1925, and is in no way involved in my report. Yours very truly, A. B. HOAGLAND, Field Auditor." (EXHIBIT 2) (Byrkit Deposition) (Signed March 26th, 1926 the above notes total of $11,000.00 are credited to Loans on the Tellers sheet (no record in the paid loan book) and the Remittance sheet shows a draft of J. W. Larson payable to Farmers State Bank on the Florida Exchange Bank, Coconut Grove, Florida. The Remittance sheet shows to the Hanover National Bank of N. Y. but on the daily Statement they charge it to Federal Reserve Bank. March 29th, 1926 they credit the Federal reserve bank with the $11,000.00 and charge it to the Hanover National Bank of N. Y. April 17th, 1926 the Hanover National Bank give the Farmers State Bank of Genoa credit for the draft with notation Transfer From Exch Bk Coconut Grove Fla. (Q—What went into the Exchange bank to pay this?) FOLLOWING IS A HISTORY OF THE CERTIFICATES OF DEPOSIT $5,000.00 August 28th 1926; T. C. C. No. 1538 2,500.00 1540 1,500.00 1541 Cancelled and 1,000.00 2193 D. C. D. Certificate No. 1678 Issued to Florida Exchange Bank for $10,000.00 November 3rd 1926 Certificate No. 1678 Returned and cancelled $10,000.00 "Certificate No. 1721 issued to Florida Exchange Bank $10,000.00. When Certificates No. 1538; No. 1540 and No. 1541 which were issued to K. C. Knudson on May 18th, May 2nd and June 1st 1925 came back to the Farmers State Bank the name of K. C. Knudson was struck out on the typewriter and the name of J. W. Larson inserted, and the name of L. W. Larson is written on the back of the certificates lengthwise of the C. D. below the endorsement of K. C. Knudson and the Florida Exchange Bank of Coconut Grove, Miami, Florida. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIXTEENTH DAY—November 14, 1935 March 1, 1927 They cancel Certificates of Deposit No. $10,000.00 and issue certificates as follows: No. 1785 Dated Feby 1927 Six Months to Charles W. Bryan 1786 1787 di 44 41 41 243 1721 for $5,000.00 2,500.00 2,500.00 June 18th 1927 Certificate No. 1786 is paid to Charles W. Bryan with interest $2,531.67 By Demand C. D. This is paid by draft on State Bank of Omaha. July 22nd 1927 Certificate No. 1787 is paid for $2,540.84 by Omaha Draft. August 19th 1927 Certificate No. 1785 is paid by draft on Omaha for $2,548.05 and Certificate No. 1869 is issued for $2,548.05. "August 29th 1927 Certificate No. 1869 is paid for $2,548.05. Respectfully submitted, A. B. HOAGLAND, Auditor for the Department" State of Nebraska, ) ss. County of Lancaster. I, Sidney M. Smith, appointed as official shorthand reporter to make a record of the proceedings held in connection with the taking of depositions by the Auditor of Public Accounts of the State of Nebraska, acting through the Banking Investigation Committee hereintefore listed, in the matter of the investigation and audit of all business transactions and activities of the Department of Banking with reference to the Centralized Receivership, at said City and State, on the 23rd day of October, 1935, do hereby certify that before said Committee came W. M. Byrkit, who was first duly sworn by B. Frank Watson, Attorney and Assistant Examiner of the Commmittee, to testify to the truth, the whole truth and nothing but the truth; that the examination of said witness was taken down in shorthand by myself and later transcribed on the typewriter, and said deposition is herewith returned. I further certify that Exhibits 1 and 2, offered and received in evidence at said hearing, are correctly set out in said proceedings, the transcript of which contains a full and complete record of said hearmg, all as appears from my notes taken at the time, and the record of said hearing now in my possession. In witness whereof, I have hereunto set my hand at Lincoln, Nebraska, this 31st day of October, 1935. (Signed) SIDNEY M. SMITH, Shorthand Reporter. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HOUSE JOURNAL 244 BUELL & DEPOSITION EXHIBIT DEPOSITION taken by the Auditor of Public Accounts of the State of Nebraska, acting through the Bank Investigation Committee appointed by him under an Act of the 1935 Legislature entitled House Roll No. :192, in effect March 15, 1935, in fi-.7:11!.rznec of the investigation and audit of all business transactions and activities of the Department of Banking with reference to the Centralized Receivership. State House, Lincoln, Nebraska. Wednesday, October 23, 1935. 800 P. M. BEFORE Ellsworth L. Fulk, Chief Examiner. Frank B. Watson, Attorney and Ass't. Examiner. W. D. Messenger, Assistsant Examiner. W. J. Williams, Investigator. At the close of the public hearing in the Centralized Receivership, October 23, 1935, the following deposition was taken regarding matters pertaining to the testimoney at the public hearing. ROLLIN BUELL, Of lawful age, being by me first duly examined, cautioned and solemnly sworn, as hereinafter certified, deposeth and sayeth as follows, viz: Examined by MR. WATSON: Q—Will you please give the reported your name and address? A—Roland Buell; I live at 2035 Euclid Avenue, Lincoln. Q—What is your present occupation, Mr. Buell? A—I am with a building firm here, and whatever is needed to be done, I do it, whether it is collecting or ordering— Q—Well, Mr. Buell, have you ever been connected with the Banking or Receivership Department of the State of Nebraska? A—Yes, sir, from 1926 to 1931. Q—In what capacity? A—As—well, I don't know—it was really assistant to the receiver; they had a lot of different names; I started under the old plan and they changed it to a dozen different names, but they ended up with assistant to the receiver, I think. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIXTEENTH DAY—November 14, 1935 245 Q—Were you assistant to the receiver at the Genoa State Bank? A—At the Farmers State Bank of Genoa. Q—About what time, Mr. Buell? A—That was from February, 1929 until June, 1931. Q—During that time you had charge of the books and records of the the Farmers State Bank of Genoa, did you? A—I did. Q—Was an auditor there for the Receivership Department investigating any irregularities in the bank at that time? A—The books were audited in January, February and March, 1931. Q—And who was the auditor? A— A. B. Hoagland. Q—He was a regular auditor of the Receivership Department, and was his expense charged to the Receivership Department? A—I think they surely were—I couldn't verify that. Q—He was regularly employed in the receivership department? A—Yes. Q—Have you a copy of his report? A—I have. Q—Will you hand that to me, please? A—Yes (handing report to counsel). Q—Where did you get this report, Mr. Buell? A—I borrowed the report of Mr. Hoagland and had a girl type it. Q—Now, Mr. Buell, I wish to ask you—we have compared this word for word with the original—will you please examine Exhibit Number 2 in the Byrkit deposition, this paper I hand you, and tell me whether or not that is exactly a duplicate of the last of Page 4 and Page 5 of the original audit made by A. B. Hoagland, of the Farmers State Bank of Genoa? A—It is. Q—And this Exhibit 1 is an exact copy of your report and exactly the same as the end of Page 4 and Page 5? A—It is. Q--Now, this Exhibit 1 in your deposition is the report that was originally submbitted to the receiver by A. B. Hoagland, auditor for the department? A—It was. IQ—No w, at a later date, do you know whether any changes were made in this audit, for the department's records? A—There was. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 246 HOUSE JOURNAL Q—How do you know that there was, Mr. Buell? A—I have a copy of the change. Q—And where is that? A—In this report that you have. Q---Just read that into the record; just read what Page 5 was changed to; read Page 5 as it is now, and the change. A—"When Certicates No. 1538; No. 1540 and So. 1541 which were issued to K. C. Knudson on May 18th, May 2nd and June 1st, 1925 came back to the Farmers State Bank the name of K. C. Knudson was struck out on the typewriter and the name J. W. Larson-inserted, and the name of L. W. Larson is written on the back of the certificates lengthwise of the C. D. below the endorsement of K. C. Knudson and the Florida Exchange Bank of Coconut Grove, Miami, Florida. March 1, 1927 they cancel! Certificates of Deposit No. 1721 for $10,000.00 and issue certificates as follows: No. 1785 dated February 24th, 1927, six months, to Charles W. Bryan, $5,000.00; 1786 dated February 24th, 1927, six months, to Charles W. Bryan, $2,500.00; 1787 dated February 24th, 1927, six months, to Charles W. Bryan, $2,500.00; June 18th, 1927, Certificate No. 1786 is paid to Charles W. Bryan interest, $2,531.67, by demand C. D. This is paid by draft on State Bank of Omaha; July 22nd, 1927, Certificate No. 1787 is paid for $2,540.84 by Omaha draft; Augusts 19th, 1927, Certilcate No. 1785 is paid by draft on Omaha for $2,548.05 and Certificate No. 1869 is issued for $2,548.05; August 29th, 1927, Certificate No. 1869 is paid for $2,548.05. Respectfully submitted, A. B. Hoagland, Auditor for the Department." Q—Now, what changes were made in there, Mr. Buell? In line four, what change is there? A—The name of L. W. Larson was changed to J. W. Larson. Q—That is right In the second paragraph, what change was made? A—Where it states Certificate Number 1785, dated February 24th, 1927, due in six months, in the original it was stated Certificate 1785, dated February 24th, 1927, he mentions, to Charles W. Bryan. Q—And what did the changed report read? A—The change read, Number 1785, dated February 24th, 1927, due six months, for $5.000.0,0. Q—In other wards, they left out the words "to Charles W. Bryan" in the changed report? A—On the three certificates. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIXTEENTH DAY—November 14, 1935 247 Q—And the next line, did they make the same change and leave out the words "to Charles W. Bryan"? A—They did. Q—And the next line, Number 1787, did they make the same change and leave out the words "to Charles W. Bryan"? A—They did. R—And in the next sentence did they leave out anything? A—They left out the words "to Charles W. Bryan". Q--And what else? A—They left out the word "this is paid by draft on State Bank of Omaha". Q—And in the next sentence what did they leave out, if anything, or did they insert anything? A—They inserted there "by Omaha draft"—they left that out. Q—Yes, they left out the words "by Omaha draft"? A—Yes. 14---And in the next line what change did they make? A,—The words left out, "Paid by draft on Omaha". Q—And on the next line what change, if any? A—They added "no interest". Q—The two words "no interest"? A--Yes. Q—Now, tell us if you saw this Hoagland report in the files of the Receivership Department at Lincoln, Nebraska after the changes were made, showing only the changes and not showing the original Page 5? A—No, I did not. Q—Where did you see the changed report? A--I borrowed the report from Mr. Hoagland; he had a copy of the report, and I made it from that, from his copy. Q—What did, he tell you about the changes? A—I asked him if there had been some changes mad, and he said —I said: "You made some changes in this report?" Ht said: "The only thing I did—" he said: "They called me in and asked me to leave out Mr. Bryan's name," and he said, "I did, and I think I have got myself all set." Those were the words he used. Q—Did he tell you he had given any letter clearing Bryan of having any part in this deal? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis If you don't remember— HOUSE JOURNAL 248 A—I have a recollection to that effect. He gave a letter, yes; he did tell me he had given a letter; I remember that. Q—And did he show you that letter? A---No, he didn't show me the letter. Q—Did he say that letter had been attached to his report? A—He did not, that I remember of. Q—Who was J. W. Larson, if you know? A—I think Larson was—I think he was a son-in-law of Mr. Knudson,—a brother-in-law of Mr. Knudson. Q—And who was Mr. Knudson? A—Which Knudson? Q—K. C. Knudson? A—He was president of the Farmers State Bank of Genoa and former secretary of the Department of Trade & Commerce. Q—Was he the secretary for the Department of Trade & Commerce for the period covered by this audit, if you know? This audit covers a certain period, and I would like to know if K. C. Knudson was secretary of the Department of Trade & Commerce when these certificates were issued in this Exhibit 1? A—He was. Q—Was Mr. Bryan, Governor? A—He was. Q—Of your knowledge, did Mr. Bryan have any interest in the bank of Coconut Grove at Miami, Florida, or Florida Exchange Bank? A—I don't know. Q—Did Mr. Knudson? A—Yes, he was connected with the banks there. Q—Now, did the Page 5, before it was changed, reflect the true statement of facts, of your own knowledge? A—It did. Q—And after it was changed, impoitant facts regarding Mr. Bryan had been left out of the audit? A—Yes, there had, because I seen the certificates; in fact, this report is only a verification of a report that I made, that I dug up; I dug up all these facts myself, and the auditor was merely an auditor, and he confirmed them. Q—What was your conclusion from these facts that you discovered in your investigation as to whether or not C. W. Bryan personally profited from this transaction to the detriment of the depositors of the bank? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIXTEENTH DAY—November 14, 1935 249 A—He did not; the depositors received all the money that they had as far as the Farmers State Bank of Genoa is concerned; I don't know anything about the Coconut Grove bank, because I don't know what went in there; but as far as the Farmers State Bank, they got all the money that came in; when they collected that draft on the bank at Coconut Grove, that money was returned to the depositors. Q—Inasmuch as we cannot put this whole report into the exhibit, and inasmuch as I understand it covers a period before our authority to make an investigation— you see our authority begins on Jan.uary 1, 1930—please state briefly the facts relative to this $11,000.00 that is mentioned in Pages 4 and 5 as copied into Exhibit 1, and who did profit by that transaction, if any one did, or what was the reason for handling it this way: In other words, Mr. Buell, how was Mr. Bryan connected with this in any way? A—Well, that is a thing I would not know, because we didn't —unless we would audit the Coconut Grove Bank we wouldn't know what went in there. Q—Why is that information necessary? A—As far as the depositors at Genoa was concerned, anything that Bryan had to do with that didn't affect them, that I can see in the report. Now, what went into the Coconut Grove Bank to take care of this worthless paper that went down there, I don't know, o: how it was taken care of, whether Mr. Knudson took it up out of his own pocket or whether it came out of the Coconut Grove Bank, I don't know. Q---Where did this paper come from? A—It was notes that were put up to take care of all these certific:.tes which were finally ended up as going to Mr. Bryan, but when they were first issued they were issued without making a record of them in the bank of these certificates; they turned over in a certificate book, and took out some certificates and issued them without making any record in the bank, and after considerable months, when they came in, back in, then they had to put something in. Q—And what did they put in? A—All they did to start with was just mark "loans" on the teller sheet, as I remember it; on the date that these certificates came back they made on the teller sheet—(interrupted) Q—That is, you mean on the day when these certificates were put on the books as a liability of the bank? A—They just wrote across the teller sheet "loans $11,000.00" Q—As a new charge to loans?? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HOUSE JOURNAL 250 A—As a new charge to to loans. Q—Without putting anything into the note case? A—Yes; in fact, the note register in which these notes were all listed, when they came in there was only an increase of $1.75.00 that day. Q—And there was no increase in the loans list, so the loans were out of balance then with the total loans shown on the daily statement for same? A—Yes, sir. Q—Then what was put into the note case to make the total loans agree with the daily sheet and take up this difference? A—There was no record in the bank to show what went in. Mr. Winne11, who was a former assistant cashier in the Farmers State Bank at Genoa at the time Mr. Hoagland and I questioned him, was assistant cashier in the Genoa National Bank at Genoa. Q—Now, just read from your report this paragraph right here and state whether that is a correct statement (indicating)? A—It is. Q—Now, that paragraph reads as follows—just check my reading here—"On January 28, 1926 the following notes went into the bank's loans without record in order to reconcile the charge to loans on January 13, 1926. I got this from a written memorandum made by Winne11, the assistant cashier, at the time. There is no record of these notes in 019 bank's records. Note of .T. W. Larson, dated January 11, 1926, due on demand, for $2800.00; note of Kingsley J. Kubler to J .W. Larson, dated January 11, 1926 and due July 11, 1926, for $4200.00, endorsed by J. W. Larson; note of Leland W. Larson to J. W. Larson, dated January 11, 1926 and due ruly 11, 1926, for $4,000.00, endorsed by J. W. Larson." Now, you state that that is a true statement of what happened as told to you by Winne11 who was asssitant cashier at that time? A—It is. Q—And did he say what becam& of these worthless assets when the certificates of deposit were paid? A,—He did. Q—What did he say happened to that? A—He said that on March 26, 1926—(interrupted) the part you are beginning to read now is Exhibit 1 in the Buell deposition? A—Yes. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIXTEENTH DAY—November 14, 1935 251 Q—He stated the first paragraph of Exhibit 1. A—Shall I read that? Q—Yes—just state it in your own words—what happened to these notes. A—Well, thees notes were credited to loans and discounts, but there was no record of it made in the paid loan book for the reason that they had never been recorded there in the first place, and the remittance sheet shows a draft to J. W. Larson, payable to the Farmers State Bank, on the Florida Exchange Bank, Coconut Grove, Florida. The remittance sheet showed to the Hanover National Bank of New York, but on the daily statement they charged it to the Federal Reserve Bank. Q—Now, what do you mean by that: Do you mean by that that these notes were sent out of the bank at that time? A—They were sent as collection to the Hanover National Bank. Q—Just read that over and refresh your recollection and tell us what happened. A—Well, in the records of the bank the remittance showed a draft of J. W. I arson, payable to the Farmers State Bank, on the Hanover National Bank, but on the daily statement it was charged to the Federal Reserve Bank, showing it was written on one but when the statement came back it was as if on the Federal Reserve Bank. Q—Did that draft remain outstanding for some time? A—It was. Q—Was it ever paid? A—It was. Q—How was it paid? It finally was paid by being charged by the Hanover National Bank, was it? A—It was. Q—It was paid by the Hanover National Bank? A—Yes. Q—And some time later? A—Yes, about two months later or a little over a month later. Q—Now, what about the notes, these notes you spoke of—What became of them? You made some statement about those notes being sent to the Florida Exchange Bank. A—Well, I was mistaken in that statement; it was just as I remember it, but (interrupted) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 252 HOUSE JOURNAL Q—Well, we are trying to find out now just what happened after this original set-up that you mentioned; you stated that C. D.'s were set up on the books as a liability, and $11,000.00, approximately, of worthless notes were set up in the note case as assets. Now, we have got that far. Apparently if the notes were worthless that would be a fictitious credit and a worthless asset, but from that noint en you haven't explained to us how they got the ha bility paid by disposing of the notes. A—May be I had better make myself clear on it. The reason I said they were worthless notes was because the notes, so far as the records of the bank are concerned, never appeared in the records of the bank except they were marked "loans", and the only record I had was a notation gotten from Mr. Winne11, a former cashier. Of course, whether these notes were ever in the bank or not, I know no more about it than you folks. There was no record whatever; it was only his notation when these notes were charged out. There was a draft sent out and when this draft went out in March, then these notes went out, and then, of course, this draft was carried as an item up until sometime in April, and then finally the draft was collected. So my statement of worthless notes was because they surely were worthless notes or they would have appeared on the record of the bank. Now, maybe I am wrong on that, but the only record we have of these notes—we have one report that should be on file in the Department of Trade & Commerce here—was the notation of Mr. Winne11 of what made up these loans of $11,000.00 and these notes were charged out when they issued a draft drawn as stated. It is a little difficult to get that because the whole thing was mixed. Q—The draft in this case, of course, was a draft of J. W. Larson, payable to this Farmers bank? A--That was it. Q—And drawn on the Florida bank? A—That was it. Q--And was, of course, appearing on the bank's books to take the place of the notes that went out? A—Yes. Q—And it was then sent to the Hanover National Bank as a remittance, and finally was paid through clearings, and the money came back to the Farmers State Bank of Genoa, so that the net sum of the whole thing is that the Farmers State Bank of Genoa got the amount of the draft in cash, and that, when you figure it way back to the beginning, was the consideration that the bank got for the C. Ds. that were eventually paid to C. W. Bryan? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIXTEENTH DAY—November 14, 1935 253, A—That is it, yes. Q—Does it state anywhere what the amount of the draft was? A—The draft was for $11,000.00. Q—Was the draft for $10,000..00 or $11,000.00? A—The draft was for $11,000. These certificates—originally when these certificates came back, the certificates amounted to $9,000.00, and then there was a demand certificate for $1,000.00. MR. WATSON: I think I understand that situation now, Mr. Fulk, I don't see but what the Farmers State Bank of Genoa finally did get payment for the sum of money that was paid out on the other hand through the certificate to Mr. Bryan. MR. BUELL: The bank had no loss at all. Q—But the transaction was a little irregular and questionable? A—It was very irregular. The facts are, a certificate shouldn't be issued unless there was a record made of it; they were fooling somebody some place along the line. Q—And the fact there was no record in the bank's books indicated that the certificates had been wrongfully issued at the time? A—In other words, if those certificates had been present when there was an examiner there when same came in that day, it would have been too bad for the officials of the bank. Q—Now, just examine that record again and state whether or not the certificates to Mr. Bryan were issued on February 24, 1927? A—They were according to the records. Q—And was Mr. Bryan Governor at that time? A—No, he was not. Q_And Mr. Knudson was no longer Secretary of the Department of Trade & Commerce then? A—No, he was not. Mr. Weaver was Governor at that time—no, he was not—Mullen was Governor at that time. Q—And Bliss was Secretary of the Department of Trade & Commerce? A—Yes, Bliss was Secretary; Bliss went in in 1927. Q—When Mr. Bryan entered this transaction on the books of the bank, he was no longer Governor of the State of Nebraska? A—No; he was not. Q—But when this note transaction took place was Mr. Knudson head of the Department of Trade & Commerce? That would be 1926, wouldn't it? A—No, he was not, because Mr.—now, I can't think of his name —he went to the building and loan company in Omaha. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 254 HOUSE JOURNAL Q—The Occidental Building & Loan? A—Yes, in 1926—I can't think of his name—Kirk 'Griggs. Q—Then when these notes went into the bank, Mr. Knudson was not Secretary of the Department of Trade & Commerce? A—No, he was not; I think he was in Coconut Grove at that time. N. WATSON: I believe we have a clear statement of the transaction now in the record. MR. FULK: May I ask a few questions? MR. WATSON: Mr. Fulk wishes to ask a few questions. By MR. FULK: Q—You stated that you borrowed this report from Mr. Hoagland and had a girl make a copy of it: Is that true? A—Yes, sir. Q—Do you remember her name? A—No, I don't; she was stenographer for Frank Arnold at Fullerton. Frank Arnold used to be a real estate man up there; she was stenographer for Frank Arnold—I don't remember her name. Q—Well, when did you make this copy of Mr. Hoagland's report—do you remember the month? A—Oh, I think it was either April or May of 1931; I can't remember the exact month. Q—It is either April or May? A—He was with me from January until the latter part of March or first of April, and he was sent to the Farmers State, at Columbus—I believe that is the Farmers State anyway, Clark's bank there at Columbus, and he was there making an audit on some work there when I borrowed this report; it was soon after, either April or May that I borrowed this—the first of April is when I think it was. Q—Did the report Mr. Hoagland gave you to copy have these two pages in it, the original and the changed way? A—No; it did not have both. Q—How did you get the changed report? A—I asked him about it. He said it was changed and I asked him if I might have a copy. He said yes. Q—(By Mr. Watson) Did he mail you a cpoy? A—No, just handed it to me; in making the reports the sheets are run through the typewriter separately, and he had this copy. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SIXTEENTH DAY—November 14, 1935 255 Q—Did Mr. Hoagland tell you himself he changed this report? A—He did. Q—Did he tell you who requested him to make the change? A—The department. Q—(By Mr. Watson) Who in the department? A—I suppose the head of the department. Q—(By Mr. Watson) Who was the head of the department? A--Mr. Luikart. Q—Did you ever see these reports with Mr. Bryan's name on them? A—Yes; he wrote all over the back of it when he signed his name. Q—Do you know why Mr. Hoagland's services were no longer needed with the departmennt, in August, 1931? A—I can only tell you what he told me. Q—What did he tell you? A—He told me that they called him in and when he came in they asked him if they could borrow his report of the Genoa State Bank, and after he was in and after they had had it, he went back to get his repo,t in a week or two and they wouldn't let him have it and told him he wasn't needed. Q—Lid the facts set forth in Mr. Hoagland's report have any bearing upon your services being dispensed with by the department? A—I think it did in a way, at least Mr. K. C. Knudson, when we were going to make the report, came to Platte Center—I had charge of the Farmers State Bank at Platte Center too. BY MR. WATSON: Q—Was that in receivership? A—A receivership; that was in February, 1931; I think it was February of 1931, and Mr. K. C. Knudson said if I had that bank audited he would see that I was fired. Q—Meaning the Farmers State Bank at Genoa? A—If I had the Farmers State Bank audited he would see that I was fired. Q—And were you fired? A—I was. I told Mr. Hoagland at the time as far as he was concerned I wouldn't ask him to make the audit, but so far as I personally was concerned I would see it was audited, and Hoagland made the remark: "Well, by God, I am the man that is going to do it." Q—And was Mr. Bryan governor during that entire year, 1931? A—He was. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HOUSE JOURNAL 256 BY MR. FULK: Q—Were these certificates issued held as cash items for a while in the bank? A—You mean these certificates issued to Mr. Bryan? Q—Yes. A-1`:o, they were not held. BY MR. MESSENGER: Q—You said when they were presented for payment they were held there as an item. A—That was this draft of Larson's; that was floating around there from January to April before it got credit; that was the draft of Larson's to the Coconut Grove bank which was held from January to April before it was cleared. BY MR. WILLIAMS: Q—Mr. Buell, do you know what consideration took place or what consideration took place or what Bryan gave of value to get this C. D. of $10,000.00? A—No; I would have no record of that. BY MR. WATSON: Q—How did Bryan get these C. D's.? Who transferred them to him, or whose C. D's. were they before they were issued to Bryan? A—They were K. C. Knudson's—well, they were issued to K. C. Knudson, and then his name was scratched off, marked off out of the face, and Larson's name put in. Q—Was it Larson or Bryan? A—No; Larson's. Q—When Knudson's name was scratched out, whose name was put in? A—Larson's. They put it in the typewriter; they had taken this certificate and put it in the typewriter and marked an cross-marked Knudson's name out, and then wrote Larson's name above—that is J. W. Larson. Q—And before K. C. Knudson's name was on those certificates, in whose name were the certificates held? A—To the Florida Exchange Bank of Coconut Grove, Florida. Q—When the Certificate Number 1721 in the name of the Florida Exchange Bank, Coconut, Florida, for $10.000.00, was cancelled, then in whose name were the certificates carried? A—Then it was issued into three different certifcates in the name of Charles W. Bryan. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (11 • r) SIXTEENTH DAY—November 14, 1935 MR. WATSON: Now, is there any other question? thank you, Mr. Buell, for coming in. 257 Well, we WITNESS EXCUSED MR. WATSON: The exhibit will be made a part of the deposition. (EXHIBIT 1) (Buell Deposition) 'March 26th 1926 The above notes total of $11,000.00 are credited to Loans on the Tellers sheet (no record in the paid loan book) and the Remittance sheet shows a draft of J. W. Larson Payable to Farmers State Bank on the Florida Exchange bank, Coconut Grove Florida. The Remittance sheet shows to the Hanover National Bank of N. Y. but on the daily Statement they charge it to Federal Reserve Bank. March 29th 1926 They Credit the Federal reserve bank with the $11,000.00 and charge it to the Hanover National Bank of N. Y. April 17th 1926 The Hanover National Bank give the Farmers State Bank of Genoa credit for the draft with notation Transf From Exch Bk Coconut Grove Fla. (Q What went into the Exchange bank to pay this?) FOLLOWING IS A HISTORY OF THE CERTIFICATES OF DEPOSIT $5,000.00 August 28th 1926; T. D. D. No. 1538 2,500.00 1540 1541 1,500.00 1,000.00 Cancelled and 2193 D. D. D. Certificate No. 1678 Issued to Florida Exchange Bank for $10,000.00 November 3rd 1926 Certificate No. 1678 Returned and cancelled $10,000.00 "Certificate No. 1721 issued to Florida Exchange Bank $10,000.00 When Certificates No. 1538; No. 1540 and No. 1541 which were issued to K. C. Knudson on May 18th, May 2nd and June 1st 1925 came back to the Farmers State Bank the naine of K. C. Knudson was struck out on the typewriter and the name of J. W. Larson inserted and the name of L. W. Larson is written on the back of the certificates lengthwise of the C. D. below the endorsement of K. C. Knudson and the Florida Exchange Bank of Coconut Grove, Miami, Florida. March 1, 1927 They cancel Certificates of Deposit No. 1721 for $10,000.00 and issue certificates as follows: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 256 HOUSE JOURNAL No. 1785 Dated Feby 24th 1927 Six Months to Charles W. Bryan $5,000.00. No. 1786 Dated Feby 24th 1927 Six Months to Charles W. Bryan $2,500.00. No. 1787 Dated Feby 24th 1927 Six Months to Charles W. Bryan $2,500.00. June 18th 1927 Certificate No. 1786 is paid to Charles W. Bryan with interest $2,531.67 By Demand C. D. This is paid by draft on State Bank of Omaha. July 22nd and 1927 Omaha Draft. Certificate No. 1787 is paid for $2,540.84 by August 19th 1927 Certificate No. 1785 is paid by draft on Omaha for $2,548.05 and Certificate No. 1869 is issued for $2,548.05. August 29th 1927 Certificate No. 1869 is paid for $2548.05. Respectfully submitted, A. B. HOAGLAND, Auditor for the Department". State of Nebraska, ) County of Lancaster. ) SS. I, Sidney M. Smith, appointed as official shorthand reporter to make a record of the proceedings held in connection with the taking of depositions by the Auditor of Public Accounts of the State of Nebraska, acting through the Banking Investigation Committee hereinbefore listed, in the matter of the investigation and audit of all business transactions and activities of the Department of Banking with reference to the Centralized Receivership, at said City and State, on the 23rd day of October, 1935, do hereby certify that before said Committee came Roland Buell, who was first duly sworn by B. Frank Watson, Attorney and Assistant Examiner of the Committee, to testify to the truth, the whole truth and nothing but the truth; that the examination of said witness was taken down in shorthand by myself and later transcribed on the typewriter, and said deposition is herewith returned. I further certify that Exhibit 1 offered and received in evidence at said hearing, is correctly set out in said proceedings, the transcript of which contains a full and complete record of said hearing, all as appears from my notes taken at the time, and the records of said hearing now in my possession. In Witness whereof, I have hereunto set my hand at Lincoln, Netraska, this 31st day of October, 1935. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Signed) Sidney M. Smith, Shorthand Reporter. Al 259 SIXTEENTH DAY—November 14, 1935 Mr. Lusienski offered the following motion: MR. SPEAKER: I move that the report of the Committee on Banks and Banking be adopted and be supplemented with the "Deposition of Wm. A. Byrkitt" and the "Deposition of Rollin Buell" all of which to be spread upon the House Journal. The motion was adopted. PRESENTED TO THE GOVERNOR November 13, 1935. MR. PRESIDENT: Your Joint Committee on Engrossed and Enrolled Bills respectfully report that we have this day, at 2:00 P. M., presented to the Governor for his approval: SENATE FILE NO. 4 (Signed) A. C. O'BRIEN, Chairman Senate Engrossing Committee. EDITH BECKMAN, Chairman House Engrossing Committee. STANDING COMMITTEE REPORTS Engrossed and Enrolled Bills HOUSE ROLL NO. 27 —correctly engrossed and delivered to Committee on Arrangement, Phraseology and Correlation. (Signed) EDITH BECKMAN, Chairman. Arrangement, Phraseology and Correlation HOUSE ROLL NO. 27 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Re-engross as amended. mimeographed). (Signed) (Amendments ALFRED SOFTLEY, Chairman. 1. 260 HOUSE JOURNAL MESSAGE FROM THE SENATE Senate Chamber November 14, 1935. MR. SPEAKER: I am directed by the Senate to inform your honorable body that it has passed: HOUSE ROLL NO. 12 (With Emergency Clause) HOUSE ROLL NO. 22 (With Senate Amendment and Emergency) HOUSE ROLL NO. 23 (With Senate Amendment and Emergency) HOUSE ROLL NO. 24 (With Senate Amendment and Emergency) —and the same are herewith returned. And has concurred in House Amendment to Senate File No. 3. (Signed) HUGO F. SRB, Secretary of Senate. MOTION—To Revert to Third Reading On motion of Mr. Haycock, under suspension of the rules and sixty-three having voted in favor of the motion, the House reverted to the third reading of bills. BILLS ON THIRD READING HOUSE ROLL NO. 22 (Senate Amendments) A Bill For an Act specifically to appropriate the sum of Thirtyfive Thousand Dollars, estimated, or so much thereof as may be necessary, from fees and moneys heretofore or hereafter arising under the provisions of Chapter 3, Laws of Nebraska, 1935, for the uses and purposes of the Nebraska Aeronautics Commission for the biennium ending June 30, 1937; to appropriate likewise specifically the sum of Eight Thousand Five Hundred Dollars from said fees and moneys for the purchase of a second state plane and equipment in the event of loss of first state plane, if purchased by said commission; and to declare an emergency. The Senate amendment was read. Strike the period at the end of Section 2 and add the following: ", same to be purchased after open competitive bidding without restricted specification.". https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I SIXTEENTH DAY—November 14, 1935 261 Whereupon the Speaker said, "Shall the House concur in the Senate Amendment to House Roll No. 22?" The roll was called and those voting in the affirmative were: Adams, Bailey, Beatty, Beckman, Bentzen, Bishop, Brandt, Bremer, Brown (Washington), Brown (Lancaster), Buresh, Busboom, Byers, Canfield, Carlson, Claussen, Comstock, Cromer, Cummins, Cushing, Dowell, Erisman, Flaherty, Frank, Frost, Gillespie, Grosbach, Hansen, Hanthorn, Hastings, Haycock, Henderson, Hopkins, Howard, Jeppesen, Johnston, Long, Lusienski, McLellan, Meline, Nickles, Nuernberger, Obbink, O'Gara, Osterman, Owens, Perigo, Peterson, Proskocil, Putney, Quinn, Ratcliff, Reed, Reilly, Reuter, Schepman, Schoenrock, Soderstrom, Softley, Somerhalder, Stark, Steele, Steuteville, Strong, Sullenberger, Summers, Sutton, Thomas, Thompson, Truman, Vogt, Webber (Franklin).-72 Those voting in the negative were: None. Those not voting were: Barnes, Biermann, Bock. Burr, Diers, Dinan, Doyle, Dugan, Dunn, Finnegan, Gutoski, Havekost, Herrick, Humphrey, Hyde, Lilley, McKim, Newman, O'Brien, Pizer, Porter, Rasdal, Richards, Sallander, Schroeder, Stringfellow, Von Seggern, Weber (Colfax).-28 A constitutional two-thirds majority having voted in the affirmative, the Speaker declared the House concurred in the Senate amendment to House Roll No. 22. HOUSE ROLL NO. 23 (Senate Amendments) A Bill For an Act specifically to appropriate the sum of Fortytwo Thousand Eight Hundred Twenty-seven Dollars and Fifty-three Cents for the support of the Nebraska National Guard; and to declare an emergency. The Senate Amendments were read. Line 2 of the title of the engrossed bill, strike out "Forty-two thousand Eight Hundred Twenty-seven Dollars and Fifty-three Cents" and in lieu thereof insert "Twenty-three Thousand Three Hundred Fifty-six Dollars and Sixty-eight Cents". Line 13 of the Preambl°. of the engrossed bill, strike the figures "P4,848.38" and insert in lieu thereof the fie:tires "44.74". https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 262 HOUSE JOURNAL Line 14 of the Preamble of the engrossed bill ,strike the figures "$34,339.45" and insert in lieu thereof the figures "$18,310.55". Line 17 of the Preamble of the engrossed bill strike out "$42,827.53, and". After line 16 of the Preamble of the engrossed bill add the following item: "Arbitration 1,100.00" "Reporter costs Make total 261.70" "$23,356.68" After figures in total add ", and". In Section 1, line 2 of the engrossed bill strike "Forty-two" and in line 3, Section 1 strike "Thousand Eight Hundred Twenty-seven Dollars and Fifty-three Cents" and insert in lieu thereof "Twentythree thousand three hundred fifty-six Dollars and sixty-eight cents", Strike Section 2 of the engrossed bill and insert in lieu thereof "All acts of the Auditor of Public Accounts, the Secretary of State, the Treasurer of the State and any other officer or officers, agents and employees of the State, with reference to the signing of claims against the State, the approval of such claims, and the issuance and payment of vouchers for and in behalf of the National Guard on account of the crises and emergencies named in preamble hereof, are hereby ratified and are hereby declared to be and they shall be deemed valid and binding in law." Add the following: "Section 3. Whereas, an emergency exists, this Act shall be in full force and take effect, from and after its passage and approval according to law." Whereupon the Speaker said, "Shall the House concur in the Senate amendments to House Roll No. 23?" The roll was called and those voting in the affirmative were: Adams, Bailey, Beatty, Beckman, Bentzen, Biermann, Bishop, Bock, Brandt, Bremer, Brown (Washington), Brown (Lancaster), Buresh, Byers, Canfield, Carlson, Claussen, Comstock, Cromer, Cummins, Cushing, Dowell, Erisman, Flaherty, Finnegan, Frank, Frost, Gillespie, Grosbach, Hansen, Hanthorn, Hastings, Haycock, Henderson, Hopkins, Howard, Humphrey, Jeppesen, Johnston, Lilley, Long, Lusienski, McLellan, Meline, Nickles, Nuernberger, Obbink, O'Gara, Osterman, Owens, Peterson, Porter, Proskocil, Putney, Quinn, Ratcliff, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 r• SIXTEENTH DAY—November 14, 1935 263 Reed, Reilly, Reuter, Sallander, Schepman, Soderstrom, Softley, Somerhalder, Stark, Steele, Steuteville, Strong, Sullenberger, Sutton, Thomas, Thompson, Truman, Vogt, Von Seggern, Weber (Colfax), Webber (Franklin).-77. Those voting in the negative were: None. Those not voting were: Barnes, Burr, Busboom, Diers, Dinan, Doyle, Dugan, Dunn, Gutoski, Havekost, Herrick, Hyde, McKim, Newman, O'Brien, Perigo, Pizer, P.asdal, Richards, Schoenrock, Schroeder, Stringfellow, Summers.-23. A constitutional two-thirds majority having voted in the affirmative, the Speaker declared the House concurred in the Senate amendments to House Roll No. 23. HOUSE ROLL NO. 24 A Bill For an Act relating to social security; to provide for the education and maintenance of certain deaf-blind persons and their mother-teachers; to create the Deaf and Blind Educational and Maintenance Fund; to appropriate the sum of Five Thousand Dollars for that purpose; and to declare an emergency. The Senate amendment was read as follows: Add the name of Senator George T. Sullivan as one of the introducers of the bill. Whereupon the Speaker said "Shall the House concur in the Senate amendment to House Roll No. 24?" The roll was called and those voting in the affirmative were: b Adams, Bailey, Beatty, Beckman, Bentzen, Biermann, Bishop, Bock, Brandt, Bremer, Brown (Washington), Brown (Lancaster), Buresh, Busboom, Byers, Canfield, Carlson, Claussen, Comstock, Cromer, Cummins, Cushing, Dowell, Erisman, Flaherty, Finnegan, Frank, Frost, Gillespie, Hanthorn, Hastings, Haycock, Henderson, Hopkins, Howard, Humphrey, Jeppesen, Johnston, Lilley, Long, Lusienski, McLellan, Meline, Nickles, Nuernberger, Obbink, O'Gara, Osterman, Owens, Peterson, Porter, Proskocil, Putney, Quinn, Ratcliff, Reed, Reilly, Reuter, Sallander, Schepman, Schoenrock, Soderstrom, Somerhalder, Stark, Steele, Steuteville, Strong, Sullenberger, Summers, Sutton, Thomas, Thompson, Truman, Vogt, Von Seggern, Weber (Colfax), Wbber (Franklin).-78. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 264 HOUSE JOURNAL Those voting in the negative were: Grosbach.-1. Those not voting were: Barnes, Burr, Diers, Dinan, Doyle, Dugan, Dunn, Gutoski, Havekost, Herrick, Hyde, McKim, Newman, O'Brien, Perigo, Pizer, Rasdal, Richards, Schroeder, Softley, Stringfellow.-21. A constitutional two-thirds majority having voted in the affirmative, the Speaker declared that the House concurred in the Senate amendments to House Roll No. 24. COMMITTEE OF THE WHOLE On motion of Mr. Haycock, the House resolved itself into a Committee of the Whole to consider bills on special and general file. Mr. Bishop was called to the Chair. When the Committee arose, it submitted the following report: MR. SPEAKER: Your Committee of the Whole has had under consideration: SPECIAL FILE SENATE FILE NO. 11 and report the same back to the House with the recommendation that the bill be advanced to third reading. tr HOUSE ROLL NO. 21 —and report the same back to the House with the recommendation that the bill be re-engrossed as amended. (Amendments Mimeographed). HOUSE ROLL NO. 27 —and report the same back to the House with the recommendation that the action on The adoption of the Arrangement, Phraseology and Correlation report be deferred. (Signed) JOHN S. BISHOP, Chairman. On motion of Mr. Bishop, the report of the Committee of the Whole was adopted. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis b SIXTEENTH DAY—November 14, 1935 265 EXCUSE Representative Osterman asked to be excused for Saturday, which request was granted. MOTION TO ADJOURN On motion of Mr. Haycock, the House adjourned until 9:00 A. M. tomorrow. MAX ADAMS, Chief Clerk. r4i https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis House Roll No. 392. INTRODUCED BY REPRESENTATIVES ELMER C. BARNES or CHERRY, GEO. E. NICKLES OF CASS, ALLEN A. STRONG OF SHERIDAN, S. J. FINNEGAN OF MADISON, E. PRESTON BAILEY OF THAYER, JAMES E. REED OF LANCASTER. A BILL FOR AN ACT relating to banks and banking; to provide for an investigation and audit of all the business transactions and activities of the department of banking, including its activities as Receiver and Liquidating Agent of failed or insolvent banks, since January 1. 1930; to provide methods of procedure and rules and regulations for said investigation and audit; to provide that the attorney general shall give such assistance and help in said investigation and audit, when requested by the auditor; to provide that all information arising out of said investigation and audit which indicates violation of law, fraud or negligence shall be reported to the attorney general for action; to provide penalty for the violation of this act and for failure to comply with the request of the auditor and those acting for or with him in conducting such investigation and audit; to provide for a report of said investigation and audit; to appropriate the sum of Twenty Thousand Dollars ($20,000), or as much thereof as may be necessary, for the purpose of carrying out the intent and object of this act; and to declare an emergency. Be it Enacted by the People of the State of Nebraska: Section. 1. Wherever the word "Auditor" appears herein, it is to be taken to mean "Auditor of Public Accounts". The auditor of the state of Nebrasht is hereby empowered, authorized and directed to cause at once to be made a thorough investigation and audit of all business transactions and activities of the department of banking ols t he state of Nebraska, particularly with respect to Hit activities of said department, acting as Receiver and Liquidating Agent of failed or insolvent banks since January 19:30. All hearings in thiS inquiry shall be made public after due notice is given, and in so far as practicable, shall be held in the localities where the bank under inquiry is Or was located and doing business. All general hearings shall be held in the state capitol. See. 2. In order to carry out promptly said investigation and audit the auditor is authorized to appoint such examiners, auditors, certified public accountants, clerks and employees as may be necessary. The auditor shall appoint a Chief Examiner https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to have general charge for the auditor of such investigation and audit. Said Chief Examiner shall serve during the pleasure of the auditor. The salary and compensation of all examiners, auditors, certified public accountants, clerks and employees shall be fixed by the auditor after receiving the recommendation of the Chief Examiner with respect thereto. The attorney general of Nebraska shall give to the auditor in connection with said investigation and audit, counsel and assistance, as and when requested by the auditor. Such special attorneys as the auditor shall request, if necessary, shall be assigned for said investigation and audit, at such compensation and expenses as the auditor shall fix; and the fees of such special attorneys, fixed as aforesaid, shall be paid out of the money hereinafter in this act appropriated for said investigation and audit. Sec. 3. Subpoenas duces tecum, orders and other processes of the auditor for the purpose of said investigation and audit may be served by anyone duly authorized by the auditor, either (a) by delivering a copy thereof to the person to be served, or a member of the partnership to be served, or to the president, secretary, or other executive officer or a director or managing agent of the corporation to be served, at any place where such person or persons may be found; or (b) by leaving a copy thereof at the residence of or at the principal office or place of business of such person, partnership, or corporation; or (c) by notifying any public official to produce papers or documents or to appear, by delivering a copy of said subpoena, order or other process to said officer or official to be served, or by leaving a copy thereof at the residence of or at the official office of said person or official so to be served, or by requesting the proper court to direct any receiver appointed by such court, or agent acting under such receiver, to produce or to appear. The verified return by the person so serving said subpoena, order, or other process, setting forth the manner of said service shall be proof of the same; the person serving said process shall be allowed such fees for services as are allowed for the service of similar processes, subpoenas or orders issued by authority of district, courts of the state of Nebraska. The several state officers and departments and bureaus of the government of the state of Nebraska and all clerks of the court in said state, when directed by the auditor, shall furnish him, or those acting for him, all records, papers and information in their possession relating to any transaction or mat- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • ter which shall be pertinent to the ob,jects and purposes of this inquiry. • • • Sec. 4. For the purposes of this act the auditor, and all persons acting for him, shall at all times have access to, for the purpose of examination, and the right to copy, any court record or any documentary evidence of any corporation being investigated and the auditor, and all persons acting for him, shall have power to require by subpoena the testimony of -Witnesses and the production of all documentary evidence relating to any matter under investigation by authority of this act. The auditor, or any person acting for him, may sign subpoenas and subpoenas duces tecum, and may administer oaths and affirmations, examine witnesses and receive evidence. Such attendance of witnesses, and the production of such documentary evidence may be required from any place in the United States and from any place in the state of Nebraska at any place and be designated for hearing by the auditor, or any person acting for him, and in case of disobedience to a subpoena, the auditor, or any person acting for him, may invoke the aid of any district court of the state of Nebraska, or of any court of any other state or of any court of the United States in requiring the attendance and testimony of witnesses and the production of documentary evidence. Any of the district courts of the state of Nebraska or any court of any other state or any of the district courts of the United States within the jurisdiction of which such inquiry is carried on, may, in case of contumacy or refusal to obey a subpoena or a subpoena duces tecum issued to any person or corporation, issue and order requiring such person or corporation to appear before the auditor, or any person acting for him, appointed for the purpose of taking testimony, or to produce documentary evidence if so ordered, or to give evidence touching the matter in question; and any failure to obey such order of said court may be punished by said court as a contempt thereof. Upon application of the attorney general of the state of Nebraska the district courts of the state of Nebraska shall have jurisdiction to issue writs of mandamus commanding any person or corporation to comply with the provisions of this act or of any order of the auditor, or person acting for him, when said order is made in pursuance of any of the provisions of this act. Testimony may be taken by deposition in any proceeding or investigation under this act at any stage of such proceeding or investigation. Such depositions may be taken without notice to anyone but the witness whose testi- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis mony is to be so taken before any person having power to administer oaths. Such testimony shall be reduced to writing by the person taking the deposition, or under his direction, and if the deponent or the governor desires, shall be subscribed by the deponent. Any person may be compelled to appear and depose and sign said deposition and to produce documentary evidence in the same manner as witnesses may be made to appear and testify and produce documents before the auditor, or any person acting for him, as hereinbefore provided. Witnesses summoned before the auditor, or any person acting for him, shall be paid the same fees and mileage that are paid witnesses in the district courts of the state of Nebraska and witnesses whose depositions are taken and the persons taking the same shall severally be entitled to the same fees as are paid for like services in district courts in the state of Nebraska. Svc. 5. Any person who shall neglect or refuse to attend and testify or answer any lawful inquiry, or to produce documentary evidence, if in his power to do so, in obedience to the subpoena or lawful requirement of the auditor or the attorney general, or for any person acting for either of them, shall be guilty of an offense against the state of Nebraska, and, upon conviction thereof by the district court of the state of Nebraska. in the district. within which he resides or by any court of competent juris(liction, shall be fined not. less than Five Hundred Dollars ($500.00) nor more than Five Thousand 1)ollars ($5,000.00), or be imprisoned in the county jail for not more than six months, or by both such fine and imprisonment. Any person who shall wilfully make or cause to be made any false entry of statement of fact in any testimony or report required to be made under this act, or shall wilfully make or cause to be made any false entry in any act, record, or memoranda., kept by any public official or corporation or court concerning matters subject to the investigation herein provided for or shall wilfully neglect or fail to make or cause to be made, full, true and correct entries in such accounts, records or memoranda of facts and transactions appertaining to the matters subject to the inquiry herein provided for, or who shall wilfully remove out of the jurisdiction of the state of Nebraska or wilfully mutilate, alter or by any other means falsify any documentary evidence pertinent to the inquiry herein authorized, or who shall wilfully refuse to submit to the auditor or to the attorney general, or to any person authorized to act for either of them, for the purpose https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • of inspection and taking copies of any records, documentary evidence bearing upon the matters which are the subject of the inquiry herein authorized and which shall be in his possession or within his control, shall be deemed guilty of an offense against the state of Nebraska and subject, upon conviction in any district court of the state of Nebraska of competent jurisdiction, to a fine of not less than One Thousand Dollars ($1,000.00) nor more than Five Thousand Dollars ($5,000.00), or to imprisonment in the penitentiary for a term of not more than three years, or by both such fine and imprisonment. OP/ 11,-1'4111( Sec. 6. The auditor, with the assistance of the Chief Examiner and the attorney general, shall make such rules and regulations and prescribe such forms as may be necessary for the carrying out of the provisions of this act. For said investigation and audit he shall adopt an official seal which shall be judicially noticed. All persons employed in connection with said investigation shall be subject to removal at any time by the auditor. Sec. 7. Whenever the auditor, or any of the examiners, certified public accountants, or other persons appointed under the provisions of this act shall secure information concerning any transact ion or act in vol ving the affairs or assets of a state batik or the act ivit ies of the officials or persons in charge of said bank, either as a going concern or during receivership after it shall have become insolvent, which .seeins to show violation of any of the criminal laws of the state of Nebraska, or fraud, or gross negligence, or that a cause of action of any nature exists against some person, partnership, association or corporation, for or against the receiver of any insolvent state bank, or in favor of the state of Nebraska, then such information shall at once be communicated to the attorney general by the person or persons having knowledge of the same. All files, papers, and records that may come into the possession of the auditor and other persons appointed in connection with said investigation and audit herein provided for, and all the 'files, papers, records and correspondence of the department of banking, particularly when acting in the capacity of Receiver and Liquidating Agent of failed or insolvent banks since January 1, 1930, shall at all times be open to public inspection and shall be transmitted to the attorney general, or to his duly authorized assistants, and the persons in charge of such files, papers and records shall give to the attorney general at his request such information as they may have with https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis reference to such files, papers and records. Whenever it shall appear to the attorney general that in connection with some transaction or act involving the affairs or assets of some state bank during the time it was a going concern or during the process of receivership or liquidation, that the criminal law of the state of Nebraska has been violated or that any cause of action exists against any person, partnership, association or corporation, in favor of or against the receiver of any failed state bank, the department of banking, or the state of Nebraska, he shall at once bring such action as may be proper under the circumstances. Sec. 8. The auditor shall make public from time to time such portions of the information obtained by this inquiry as he shall deem expedient in the public interest. At the conclusion of his investigation the auditor shall prepare and submit a complete report to the next regular session of the Nebraska State Legislature, and submit therewith such recommendations for legislation, if any, as he shall deem expedient and just; and he is hereby given power and authority to provide and pay for the printing of said reports and conclusions in such form and manner as may be best adapted for the information and use of the legislature and the citizens of the state of Nebraska. Sec. 9. There is hereby appropriated out of any money in the general fund in the state treasury, not otherwise appropriated, for the use of the governor in carrying out the purposes and objects of this act, the sum of Twenty Thousand Dollars ($20,000.00), or so much thereof as may be required. Sec. 10. The money herein appropriated shall be expended • under the direction of the auditor, and the auditor of public accounts is hereby authorized and directed upon presentation of proper vouchers, countersigned by the governor, to draw warrants on said fund as herein appropriated and the state treasury is hereby authorized and directed to pay said warrants for the purposes herein set forth. • Sec. 11. Whereas, an emergency exists, this act shall be in full force and take effect, from and after its passage and approval, according to law. Approved March 15, 1935. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -r 1 • # • I i https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis _
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