State v. Nebraska Savings Bank

58 N.W. 976, 40 Neb. 342, 1894 Neb. LEXIS 289
CourtNebraska Supreme Court
DecidedMay 2, 1894
DocketNo. 6336
StatusPublished
Cited by7 cases

This text of 58 N.W. 976 (State v. Nebraska Savings Bank) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Nebraska Savings Bank, 58 N.W. 976, 40 Neb. 342, 1894 Neb. LEXIS 289 (Neb. 1894).

Opinion

Harrison, J.

On the 24th day of March, of the current year a petition was filed in this court by certain of the creditors of the Nebraska Savings Bank, and as it fully explains its purpose, we will copy it in full and allow it to speaks for itself. It reads as follows:

“Now comes the First National Bank, the American Exchange National Bank, the Columbia National Bank, the German National Bank, all organized'and incorporated under the national banking act of the United States and [344]*344engaged in a general banking business in the city of Lincoln, Nebraska, and the Lincoln Savings Bank, the Union Savings Bank, the Industrial Savings Bank, and the Merchants Bank, all duly organized and incorporated under the laws of the state of Nebraska, and engaged in the business of banking in the city of Lincoln, Nebraska, and by leave of the court file their petition, and for their cause of action say:

“1. That the Nebraska Savings Bank is, and was at all times mentioned herein, a corporation organized and incorporated under the laws of the state of Nebraska and doing a general banking business in the city of Lincoln, Nebraska.

“2. That prior to the lltli day of May, 1893, the said Nebraska Savings Bank was a going concern, but on or about said date a run was made on said bank by the depositors of the bank, and the said bank was in great danger of having its doors closed by lack of sufficient funds to meet said run, and by the depositors demanding money deposited by them in said bank; that said Nebraska Savings Bank,, without the aid and assistance of the other banks in the city of Lincoln, would have been unable to stop the ruu on the above named bank and the demands upon it, and in its-distress and peril it called upon the above named banks of the city of Lincoln for assistance, and on or about the 11th day of May, 1893, the said banks agreed to come to the aid and assistance of the said Nebraska Savings Bank, and on or about said last named date said banks advanced and made a loan to said Nebraska Savings Bank, of the sum total of $50,000, part of which was paid, so that on the 1st day of July, 1893, there was due your petitioners the sum of $47,922.13, in the respective amounts as follows:

American Exchange National Bank...............$6,702 54

Columbia National Bank............................ 6,702 54

German National Bank.............................. 6,697 28

First National Bank................................... 6,702 39

Union Savings Bank................................. 6,702 38

[345]*345Merchants Bank.......................................$3,028 22

Lincoln Savings Bank................................ 5,701 06

Industrial Savings Bank............................. 5,685 72

“For the said sums advanced respectively by the above named and enumerated banks the said Nebraska Savings Bank on the 1st of July, 1893, executed and delivered to the said banks promissory notes, whereby the said Nebraska Savings Bank agreed to pay on the 1st day of January, 1894, to each of' said banks one-half of the amount advanced by said bank, and the balance, or remaining half, was made payable on or about the 1st of July, 1894. Separate notes were given to each bank for the amount of money advanced by said bank.

“ 3. For the purpose of securing the payment of said several sums of money advanced by the said banks respectively, and evidenced by the said promissory notes executed to each of said banks by the Nebraska Savings Bank, the said Nebraska Savings Bank, after having been duly authorized thereto by resolution of the board of directors, transferred, assigned, and made over to Richard Miller, cashier of the said Lincoln Savings Bank, in trust for each and all of said banks, notes, bills receivable, and other assets and collateral of the face value of $55,279.48, of which amount the sum of $9,158.58 has been collected and applied pro rata upon the said notes, leaving a balance of $41,536.38 due to all of said banks, which indebtedness is proportioned to the several banks according to the amount of the sums advanced by each of said banks to the said Nebraska Savings Bank.

“4. Your petitioners allege that the collateral in their hands is insufficient to pay in full and satisfy the said notes, and your petitioners have no other assets of said bank, or any other way or means by which they can satisfy and secure the payment of the said notes and the said sums of money advanced by the said banks as aforesaid, except they are permitted to share in the assets and participate in [346]*346the dividends to be paid by the receiver of said bank. Your petitioners have offered to surrender to the receiver the whole of their security and collateral if the receiver will pay ninety per cent of your petitioners’ claim, which offer the receiver has declined.

“ 5. Your petitioners further allege that on or about the 12th day of July, 1893, the said Nebraska Savings Bank closed its doors, and, being then insolvent, was- proceeding to wind up its business under the supervision of the state banking board; that on an application made to this court on the 17th day of July one Charles H. Morrill was appointed receiver of the said Nebraska Savings Bank, and on or about the 17th day of July the said Charles H. Morrill entered upon his duties as the receiver of said bank and took possession of all of its assets and proceeded to administer the estate of said bank and wind up its business affairs pursuant to law and under the direction of the said court.

6. Your petitioners further allege that the said Charles H. Morrill, receiver of the said Nebraska Savings Bank, has in his possession a large amount of assets of the said bank, upon which and from which and out of which a dividend to the creditors of the said Nebraska Savings Bank will be paid.

“7. Your petitioners further allege that the said notes, hereinbefore mentioned and described, were duly presented by the said banks, respectively, to the said Charles H. Morrill, as receiver of the said Nebraska Savings Bank, as a claim against said bank, and the said Charles H. Morrill, as such receiver, was duly requested by your petitioners to allow said notes as a claim against said bank and in favor of the said respective banks for the amount of the said separate notes; and in this behalf your petitioners further allege that the said Charles H. Morrill refused, and still refuses, and does now refuse, to allow said notes, or either of them, as a claim against said bank, and is about to dis[347]*347allow the same as such receiver, unless otherwise ordered and directed by this court.

“8. Your petitioners allege that at the time of the failure of said bank there was due to each of said banks the said sums of money as alleged to have been advanced by the said banks, and interest on the same from the 1st day of July, 1893, making a sum total of $47,922.13 and interest from the 1st day of July, 1893, due to all of said banks; and there was due at the date of the last report made to the said trustee, Richard Miller, by the receiver of said bank, bearing date March 13, 1894, $41,556.38.

“Your petitioners therefore pray that the said receiver, Charles H.

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Bluebook (online)
58 N.W. 976, 40 Neb. 342, 1894 Neb. LEXIS 289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-nebraska-savings-bank-neb-1894.