gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ec9157fb36f8ee39
Response Measures
None
Description
Failure due to apparent embezzlement; receiver appointed and bank remained in receivership.
Events (2)
1.May 22, 1905Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed after discovery of missing funds and alleged embezzlement by officers (shortage ~ $78k).
Newspaper Excerpt
This bank will be closed until a meeting of the directors can be held.' J. B. Young.
Source
newspapers
2.May 25, 1905Receivership
Newspaper Excerpt
I. Hirschfeld has been appointed receiver of the Goldfield Bank and Trust Company. His bond has been placed at $200,000.
Source
newspapers
Newspaper Articles (24)
1.May 23, 1905Las Vegas Daily OpticLas Vegas, NM
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Wildcat Mining Camp Institution With No Assets to Speak of Suspends Operations. BIG INSTITUTION GOES TO WALL Merchants' Trust Company With Capital of $100,000 Fails For $2,000,000. GOLDFIELD, Nev., May 23. - The Goldfield Bank & Trust company, with liabilities of $78,227. has failed. The assets so far discovered are $4,800 in notees, $16 in vaults, and a five-dollar gold piece on the floor under the counter. The most disorganized state of affairs seems to exist in the books of the bank. President J. B. Young of the bank is in San Francisco, where it is stated he is endeavoring to get assistance with the bank's collateral. Goldfield is the new mining town in the heart of the newly discovered gold country of southwestern Nevada.
2.May 23, 1905Morning AppealCarson City, NV
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Bank Fails at Goldfield. Late yesterday afternoon the sheriff received a telegram from Goldfiell asking that Jas. G. Boal and J. R. Young be arrested should they come through this city. The telegram further stated that they were wanted on nearly a hundred charges for embezzlement. From what can be learned the firm. known as the Goldfield Bank and Trust Company failed for a considerable sum and did not open their doors yesterday but posted a notice that the bank would not open until a meeting of the Board of Directors was held. A search was instituted for the presldent and cashier and it was found that President Young had departed for parts unknown several days ago and that cashier Boal had left the camp Sunday. They were not among the passengers last evening and it is thought that they have both gone by the way of Las Vegas. The Liabilities are said to be 8$2,000 and the assets are not known. The report that a run on the other banks is said to be untrue as the people have the utmost faith in their management and, they are all on a sound basis,
3.May 23, 1905The Salt Lake HeraldSalt Lake City, UT
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GOLDFIELD, NEV., BANK ON FINANCIAL ROCKS Goldfield. New., May 22-When the banking hour arrived this morning the following notice was posted on the door of the Goldfield Bank and Trust company: "This bank will be closed until a meeting of the directors can be held.' J. B. Young. the president. left last night. The liabilities are approximately $82,000 and the assets are unknown. A meeting of creditors was held today and a committee appointed to investigate the affairs of. the defunct institution. There is said to be no danger of a run on the other banks of the city, which are declared to be in perfectly sound condition. San Francisco, May 22.-J. B. Young, president of the Goldfield Bank & Trust company tonight declared that he had nothing to do with bringing about the crisis in bank's affairs. He declared that he was opposed to the manner in which' the bank was conducted by its cashier, and directors. According to Young he sold his stock in the bank and denies that he fled from Goldfield. On the contrary he says that he came to San Francisco for a brief trip and that he intends to return to the mining town as soon as possible. Young does not believe that the liabilities of the bank will exceed $100,000 and he says that it should have assets enough to meet this amount.
4.May 24, 1905Deseret Evening NewsSalt Lake City, UT
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GOLDFIELD BANK AND TRUST CO. Warrants Out for the Arrest of The President and Cashier And a Promoter. CHARGED WITH EMBEZZLEMENT Stockholders' Committee Finds That No Balance Had Been Taken in Bank for Six Weeks, Goldfield, Nev., May 23.-The report of the committee appointed by the stockholders shows an unfavorable condition of affairs in connection with the Goldfield Bank & Trust company, which was closed yesterday. Warrants have been issued and are in the hands of Sheriff Bradley for the arreat of J. B. Young, president, and James R. Boal, cushier, charged with embezzlement, and for Francis A. Burton. a promoter, charged with obtaining money under false pretenses. Boal was not arrested in Hawthorne, as reported, yesterday. All day long the streets have been crowded with depositors angry and exeited. Mrs. Burton, a confirmed invalid. denies absolutely any connection of her husband with the bank other than AS a depositor. Depositors have been found today who placed approximately $100 in the bank Saturday, and the examination Monday showed out $16.05 innickels and dimes and a $5 gold piece, The stockholders' committee finds that no balance had been taken in the bank for six weeks. On May 18 funds were removed aggregating $43,500 with absolutely nothing to show for it. Of the bank's capitalization only $17,721 had been paid up, of which $13,283 was invested in the premises, with $15,000 still owing on the same. and $6,000 expenses. Francis A. Burton has an open debit of $2,157, a promissory note for $2,000, another for $1,500, a total of $6,657: then two checks for $5,000 each on which $7,000 had been advanced, making Burton personally indebted in the sum of $12,657. Assets are overdrafts for $10,662. Bills receivable, $4,812.50; real estate, $13,283.65; cash, $21.05; missing $78,247.39. The liabilities are: Due depositors, $78,662.72: capital stock. $17,721; due banks, $10,641: A total of $107,026. San Francisco, May 23,-J. B. Young, president of the Goldfield Bank & Trust company, and Francis A. Burton were arrested in this city tonight.
5.May 25, 1905Santa Fe New MexicanSanta Fe., Santa Fe, NM
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RECEIVER IS APPOINTED. For Defunct Goldfield Bank With Bond of $200,000-Missing Cashier Is Located. Goldfield, Nev., May 25.-I Hirschfeld has been appointed receiver of the Goldfield Bank and Trust Company. His bond has been placed at $200,000. J. H. Boal, cashier of the bank, for whom a warrant has been issued, has been located.
6.May 25, 1905The Providence NewsProvidence, RI
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RECEIVER APPOINTED FOR FAILED GOLDFIELD BANK Goldfield. Nev., May 25.-I. Hirschfeld has been appointed receiver of the Goldfield Bank and Trust company. His bonds have been placed at $200,000. J. H. Boal. cashier of the bank for whom a warrant has been issued has been located. F. T. Burton, who is under arrest in San Francisco. insists that the bank's securities are ample to protect liabilities.
RECEIVER APPOINTED Goldfield. Ner. May 2-1 Hirschfeld has been appointed receiver of the His Goldfield Beak and Treat Co. beads have been placed at $380,000. J. H. Beal. cookier of the bank, forwism a warfast - been I been r.L. Derten, who breaked Francisco arrose
8.May 26, 1905Evening StarWashington, DC
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Receiver for Nevada Bank. I. Hirschfield has been appointed receiver of the Goldfield Bank and Trust Company at Goldfield, Nev. His bonds have been placed at $200,000. J. H. Boal, cashier of the bank, for whom a warrant has been issued, has been located. F. L. Burton, who is under arrest in San Francisco, insists that the bank securities are ample to protect liabilities.
9.May 26, 1905Rock Island ArgusRock Island, IL
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Goldfield Gets Receiver. Goldfield, Nev., May 26.-I. Hirschfeld has been appointed receiver of the Goldfield Bank and Trust company. His bonds have been placed at $200,000. J. H. Boal, cashier of the bank, for whom a warrant has been issued. has been located.
FAILS FOR $78,000. Goldfield Bank and Trust Company Collapses. Crooked Work Charged and the President Is Arrested-The Cashier Runs Away. Goldfield, May 22.-The Goldfield Bank and Trust Company, of which J. B. Young is President; James R. Boal, Cashier, and George W. Currell, Vice President, failed to-day. The books of the concern are in an awful state of confusion, and it is found that the failure of the concern was due to the work of wreckers. The President of the bank was also President of the Goldfield Lida Company, which was using the bank's funds for promotion and investment purposes. The bank owes $16,000 to the Continental Construction Company for its ne building. Robert Alexander and I. Hirshfeld, officers of the construction company, caused the exposure of the condition of the bank by demanding a payment. The cashier, James R. Boal, and his brother have fled from town in a buggy. The total shortage, it is said, is close to $80,000. Wrath of Depositors Aroused. Goldfield, May 23.-The report of the committee appointed by the stockholders shows a startling condition in the affairs of the Goldfield Bank and Trust Company, and threats of lynching have been made. Evidence of gross mismanagement has been found. Warrants are in the hands of Sheriff Bradley for the arrest of J. B. Young and James R. Boal, charged with embezzlement, and for Francis L. Burton, charged with obtaining money under false pretenses. Boal was not captured as has been reported. All day long the streets have been crowded with angry and excited depositors. Depositors were found to-day who placed approximately $500 in the bank last Saturday. The examination made Monday showed but $16.05 in nickels and dimes and a five-dollar gold piece in the bank. The Committee's Report. The committee's report shows that no balance has been taken in the bank for six weeks. On May 18 funds aggregat. ing $43,500 were removed. Of the bank's capitalization only $17,721.95 had been paid up. Of this sum $13,283.65 was invested in the bank's premises. The report states that Burton is personally indebted to the bank for $12,657.16. The bank's assets are: Overdrafts, $10,662.01 ; bills receivable, $4312.50; real estate, $13,283.65 ; cash, $21.05; missing, $78,247.30. Its liabilities are: Amount due despositors, $78,662.72; capital stock, $17,721.95 due banks. $10,641.93.
PRESIDENT YOUNG ARRESTED. "Attorney" F. L. Burton Is Also Taken Into Custody. Jackson B. Young, President of the Goldfield Bank and Trust Company, and Francis L. Burton, attorney for Young, were arrested in San Francisco Tuesday evening and will be returned to Nevada. When first taken into custody Young and Burton were not disposed to discuss the bank failure. They said they were about to return to Goldfield, and their railroad tickets were in their possession. It was Burton's intention to apply for a receiver immediately upon his arrival home and to straighten out the affairs of the bank as far as possible. The prisoners assert that the assets of the institution are sufficient to cover its liabilities. In explaining the bank's embarrassment Burton said: Depositors Withdrew $25,000. "The bank was sound financially until three weeks ago, when 3000 people rushed for the newly opened districts around Lida, Kawich and Bullfrog. Many of them were depositors in the Goldfield Bank. They took their money with them, as they needed it in making locations and purchasing property. In this manner about $25,000 was drawn out in a few days and our funds began to run at low tide. It can be easily understood that a bank in that section of the country does not carry any large amount of cash. There are no secure vaults and the region is too isolated. Matters looked serious last week and Mr. Young came to this city to negotiate a loan. When I left Goldfield last Saturday evening it was understood that Boals should stick to his post. Had he done this, even though his funds were exhausted, there would have been no trouble of this kind." Burton puts the banks liabilities at $40,000 and assets at $56,000.
$20,000 for Creditors of Bank. On the eve of the trial of J. R. Boal, cashier, and J. B. Young President of the defunct Goldfield Bank and Trust Company, Earl Rogers, attorney for Boal, on Monday deposited $20,000 with the Receiver of the ruined concern for the benefit of the creditors. This will enable the Receiver to declare a payment of about 50 per cent. The money was raised by relatives of Boal, it is said.
FRIENDS OF BOAL WILL MAKE DEFICIT GOOD Steps have been taken by the family and friends of J. R. Boal, late Cashier of the defunct Goldfield Bank and Trust Company, to pay every dollar of the deficit that resulted from the failure. Since the bank closed its doors Cas 1ier Boal and President Young have paid over $12,000 in sucurities and realty. A few days ago Boal's family raised $20,000, which was handed to the Receiver, and the families say that within a few weeks the remaining $8,000, which is necessary to save the depositors from loss, will be paid over to the Receiver. While this will not excuse Boal from the charge of embezzlement it is believed that it will result in his securing but a nominal sentence. It is understood that Attorney Burton is to be charged up with all criminal carelessness when the two bankers are placed on trial at Hawthorne next fall.
14.August 27, 1905The Washington TimesWashington, DC
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FROM JAIL TO SUNDAY SCHOOL Absconding Cashier Now Bank's Superintendent. WILL TELL STRANGE STORY Goldfield Depositors Are Now Assured They Will Sustain No Losses. SALT LAKE, Aug. 26.-From jail to the assistant receivership of a bank and superintendency of a Sunday school within three months is the record established by James R. Boal, of Goldfield. Nev. On May 22 the Goldfield Bank and Trust Company closed its doors. The president of the bank, James B. Young, who was in San Francisco when arrested, had a large amount of mining and other stocks which he said he had taken to San Francisco to use as security for a loan to tide the bank over. Boal, the cashier, who had been seen at the bank late the night before, disappeared, and only $16.05 was found in the vault and a five-dollar gold piece on the floor. The bank owed depositors $78,000. Boal was arrested three days later. Boal and Young were indicted on three counts and their bail was fixed at $60,000. Six weeks later bail was reduced to $15.000 for Boal, and friends obtained his release. He was employed at once as assistant to the receiver. Boal's family turned over to the bank $20,000, and he is devoting his ability to converting the bank's assets into cash, with the result, it is announced, that the loss to the depoitors will be trifing. On the Sunday after his return to Goldfield Boal acted as superintendent of the Sunday school. While he will not discuss his part in the bank's history it is understood that he intends to tell a story on the witness stand in the trial of himself and Young which will shift the responsibility. Young and Francis L. Burton were exploiting a townsite, a water company, and many mining enterprises in a nearby camp. After Young's arrest a registered package addressed to him at Carson City was recovered, containing the best part of the bank's securities.
YOUNG AGAIN IN JAIL J. B. Young, president of the defunct Goldfield Bank and Trust company, is again in custody after having been released from the county jail on bond last week. As soon as he was liberated Young came to Goldfield and was almost immediately rearrested on a charge of embezzlement of $1297 preferred by Robert Ipswich. Mr. Ipswich claims that the money was deposited in the bank shortly before it suspended, and that Young is guilty of embezzlement thereof.
CREDITORS MAKE KICK. At a meeting of the creditors of the defunct Goldfield Bank and Trust company, held in the office of Williams & Colburn Monday evening, Receiver Hirshfeld of that institution was severely censured. Allegations were made to the effect that he is charging several thousand dollars too much for the work of erecting the building owned by the suspended banking firm, utilizing his position as secretary of the Continental Construction company, the contracting firm, to further that end; other allegations equally serious are made, including an assertion to the egect that as assistant cashier of the State Bank and Trust company, he is renting out quarters in the said building to the latter concern at $50 per month, which the creditors consider a ridiculously low figure. Steps were also taken at the meeting for the formarding of a petition to Judge Murphy praying for an injunction to stay the lien on the building.
17.October 6, 1905The Goldfield NewsGoldfield, NV
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RECEIVER'S SALE OF REAL ESTATE In the District Court of the First Judicial District of the State of Nevada, in and for the County of Esmeralda. J. E. C. Williams, Plaintiff. vs. Goldfield Bank and Trust Company, a Corporation, incorporated under the laws of the State of Nevada, Defendant. In the Matter of the Receivership of Goldfield Bank and Trust Company,
RECEIVER'S SALE OF REAL ESTATE In the District Court of the First Judicial District of the State of Nevada, in and for the County of Esmeralda. J. E. C. Williams, Plaintiff. vs. Goldneld Bank and Trust Company, a Corporation, incorporated under the laws of the State of Nevada, Defendant. In the Matter of the Receivership of Goldfield Bank and Trust Company,
RECEIVER'S SALE Monday afternoon at 2 o'clock 1. Hirshfeld, receiver of the Goldfield Bank & Trust company, opened the bids entered for the purchase of the bank building which is one of the as sets of the defunct institution. Only one bid was entered, that of Thomas B. Rickey, president of the State Bank s Trust company. This was in the amount of $20,000, but the sale has not yet been confirmed by the court.
JUSTICE AT HAWTHORNE Boal Is Acquitted and Young Granted a New Trial It took twelve wise men of Esmeralda county just thirty minutes to decide that, "extenuating circumstances" demanded the acquittal of J. R. Boal, cashier of the defunct Goldfield Bank & Trust company. Boal was recently on trial in the district court at Hawthorne on charge of embezzlement and the evidence brought out was anything but favorable to the accused. However, as his friends had made good $20,000 of the shortage, the jury decided that justice would be served by turning him loose. J. B. Young, his partner, and president of the suspended institution, did not receive the same consideration at the hands of the jury, probably due to the fact that no one came forward to make good his pilferings. There being, "no extennating circumstances" in his case he was adjudged guilty. He still has a chance, however, as Judge Murphy has ordered a re-trial owing to an error in his charge to the jury. It seems that Nevada has no statute governing banking institutions, but Judge Murphy not being conversant with this deviation from the usual custom of states, in charging the jury instructed the members to bring in a verdiet of guilty if they were satisfied that Young had received deposits after he knew the bank was in an insolvent condition. On being advised of his error Judge Murphy, in justice to himself, had no other alternative than the ordering of a new trial.
21.December 11, 1907The San Francisco CallSan Francisco, CA
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Nevada Editor Kills Noted Sharper Advises Camp to Run Him Out and Shoots Him When He' Objects to Article TONOPAH. Nev., Dec. 10.--Francis L. Burton, notorious bank wrecker, bunko man and wildcat promotor, ran his last bluff in Mina at noon today and was called by J. Holman Buck, editor, of the Rawhide Rustler and several other southern Nevada publications. Burton had threatened to kill Buck on sight. and today the men met in front of the Palace hotel and Buck was quicker on the trigger than the man who had threatened to take his life. Buck put a load of buckshot through his head killing him/instantly and narrowly escaping killing Will Edwards, with whom Burton was taking at the time. Burton had recently been run out of the new and hustling camp of Rawhide, and Buck paid his respects to him in the Rustler; he also stated in the paper that he should be run out of Mina, where Burton had been making his headquarters. Burton had made a threat that he would kill the editor on sight. Buck got back to Mina this morning and was told of Burton's threats. He immediately armed himself with a shotgun and went in quest of his/man. Turning a corner Buck came upon Burton standing in front of the Palace hotel talking to Will Edwards, and getting a bead on him told him to throw up his hands, at the same time shouting to Edwards to get away. Edwards moved aside as fast as he could and Burton drew a gun. Buck fired and almost the entire charge of buckshot entered Burton's head, tearing it almost from his shoulders. Edwards had a narrow escape, but was fortunate enough to miss the rain of bullets. Buck immediately gave himself up and will be held until the inquest which will be held tomorrow. Burton came to southern Nevada in the early part of 1905. In the early days of Goldfield he established the Goldfield bank and. trust company and then proceeded to wreck it. which he most successfully accomplished. It was simply a case of smooth thievery. Burton located a number of claims in Lida and opened up a townsite, which he proceeded to exploit through the papers, paying the same with the money of the depositors in the bank. He and the rest of his crowd disappeared, leaving a shortage of $78,000 and only $21.05 in the bank. Burton was captured in San Francisco and taken back to Goldfield, but there was no law at that time in this state for the crime. Burton had a previous penitentiary record, and while in prison he succeeded in getting $15,000 out of the warden to invest in a mythical mine in Colorado. He had some reputation as a gun fighter.
22.June 2, 1909Tonopah Daily BonanzaTonopah, NV
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RECEIVER OF GOLDFIELD BANK IS INDICTED (Special to the Bonanza.) GOLDFIELD, June 1.-It became known tonight that one of the secret indictments returned by the Esmeralda county grand jury several days ago, called for the arrest of I. Hirshfeld, formerly receiver of the Goldfield Bank and Trust company, wheich suspended operations on October 16, 1906. Hirshfeld, after his appointment, paid one dividend of 20 per cent, and according to the indictment, skipped out, leaving the sum of $17,586 unaccounted for. He is charged with embezzlement and was arrested today in San Francisco by Chief of Police Cook of that city, 1 upon telegraphic instructions from the sheriff's office here. Hirshfeld, after paying the first dividend, made no further report, although he was cited for contempt by the court several times, but each time he was out of the jurisdiction of the court and managed to evade making his appearance. He is now interested in oil lands near Bakersfield. Immediately after his arrest he a started habeas corpus proceedings to secure his release and will have a r hearing in the San Francisco court a Thursday. When the indictment was n returned Judge Somers fixed the t bond at $20,000. Under Sheriff Mike Cahalan leaves n a this morning for Carson to secure the necessary extradition papers and a then will continue on to San Francisco.
23.June 2, 1909Arizona RepublicanPhoenix, AZ
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former receiver of the defunct Goldfield Bank and Trust company of Goldfield, Nevada, under arrest late last night at his room in the St. Francis hotel.
The telegram stated that Hirschfield was wanted for felony and embezzlement. A deputy sheriff is now enroute from Goldfield to take Hirschfield back.
24.June 5, 1909The Goldfield NewsGoldfield, NV
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BANK & TRUST RECEIVER ARRESTED AS EMBEZZLER J. Hirschfeld, who was appointed receiver of the Goldfield Bank & Trust company, shortly after that bank failed in 1906, has been arrested in San Franeisco, upon telegraphic information from Sheriff Bradley, charging him with the embezzlement of $17,528.26, the charge being made in a secret indictment returned Saturday by the grand jury. Under Sheriff Mike Cahalan left for San Francisco this morning to bring the accused man to Goldfield. The arrest was made by J. B. Cook, chief of police in San Francisco. The indictment states that Hirschfeld, while receiver of the bank, about October 16, 1906, embezzled the sum of $17,528.16. His attorney, D. H. Keyhoe, was one of the witnesses before the grand jury. Hirschfeld was appointed receiver for the bank by Judge Langan, and returned one dividend of 20 cents, but thereafter failed to make any accounting, although he was repeatedly requested to do so by the court. Several months after his appointment as receiver, he bought himself an automobile, so it is said, and left the county, removing himself from the jurisdiction of the local court. In California, he failed to make any accounting to Judge Langan, and refused to return to Goldfield for that purpose, although repeatedly cited for contempt of court. Being outside of the jurisdiction of this court he could not be reached by contempt proceedings. Tired of his actions, his own attorney and others in Goldfield, presented the matter to the grand jury, resulting in his being charged with embezzlement. Hirschfeld already has instituted habeas corpus proceedings in San Francisco, Hirschfeld's bond already has been fixed in the sum of $20,000. He is said to be now interested in oil operations in the vicinity of Bakersfield, and to be well-to-do.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
