The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1922-12-05
American
State Bank
HereClosed
State Examiners Report Their
Inability to Restore Insti-
tuition to Solvent
Condition.
Protected by State Fund

The American State bank at Eight
eenth and Farnam streets failed to
apen its doors for business yesterday
morning.
Failure of the institution involves
losses estimated at 100000. accord
Ing to statement issued by ]. E
Hart, secretary of the Department of
Trade and Commerce.
All depositors will be paid in full
from the state guaranty fund. 1T was
announced at the Omaha office of
Attorney General Clarence a. Davis.
Capital of the American State bank
was 100000. Deposits, S1.100op0.
Loans. 81 900. 900.
Ss00. 900 Capitals
OF the $500 900 capital stock, $50, 100
WAS held by officers as follows: y. W.
Geiselman, president, $6s.70o. d. {.
Geiselnan. cashier, $40, 500; Ii. NJ.
krogh, assistant cashier, $500. Y. i.
Nelson, n vice president, held no
stock.
A group of local financial interests
are said to be organizing a new bank
which it is believed may take over the
Application for receiver was
made by Attorney General Davis dur.
ing the day. and an orderly liqulda.
ton will be pursued as rapidly as pos
sible, Secretary Hart stated.
Plan Falls Through.
Two weeks ago a plan for reorgan.
ization of the bank was worked out
hi ~ 60
would be adequate. A group of Oma.
ha men stood ready to put in approx
mately 1925. 900 of new capital. Fur
ther examination indicated that this
would not be sufficient to meet the
situation and the deal failed.
Failure of the American State is
not regarded as a reflection of pres.
ent conditions in financial circles. as
transactions leading up to the failure
occurred many months ago. No 9th.
err banks are involved, 1t was an
nounced.
It was found during the recent ex-
animation of bank paper by the De-
partment of Trade and Commerce that
there was much American Bank Build
ing company and other Shafer paper
being held. according to Deputy At
torney General J. B. Davis.
Organized by Shafers.
Founders of the. American State
bank took over the charter ofothe
German American State bank several
years ago. NJ. +. and ". e. Shafer
were among the group handling this
transaction. NJ. F. Shafer formerly
was president of the bank.
In 1919 the Geiselmans gained con-
troll. For several months afterward
their management was marked by hti-
cation coming out of the differences
between the new officers and the
Shafers.
Just two years ago yesterday war
rant for the arrest of d. w. Geisel-
man was issued by the United States
district attorneys office, charging the
use of the mails for the purpose of
iniuring the business of M. +. Shafer
< Co. Geiselman was not tried on the
charges.
In October. 1920. suit for s2500o0
damages was filed against ID. w.
Geiselman and five directors of the
bank by NJ F. Shafer, who alleged
damage 10 his business and reputa-
ton and health.
Operated at Loss.
This statement was made by j. f.
Hart, stcretary of the Department OF
Trade and Commerce.:
In announcing the closing OF the
American State bank, the Depart
ment of Trade and Commerce state
that the banks capital was hope
lessly dissipated and the directors
and shareholders were unwilling
and unable to make good the IN
pairment. The bank has operate
at a loss for several months. and
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