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Goldfield' Bank Suspends Goldfield, Nev., Oct. 23-The State Bank & Trust Company of this city closed its dors this morning.
State Bank & Trust Company (Goldfield, NV)
Episode Information
- Episode Type
- Run → Suspension → Closure
- Start Date
- October 23, 1907
- Location
- Goldfield, Nevada (37.709, -117.236)
- Bank Type
- state
Metadata
Notes
Bank reopened temporarily to process resumption agreements but later was placed in receivership and effectively failed.
Events (4)
1.
October 23, 1907
Suspension
- Cause
- Local Banks
- Cause Details
- Closed because branch banks could not make collections and a run was in progress on the institution.
- Newspaper Excerpt
- Goldfield, Nev., Oct. 23-The State Bank & Trust Company of this city closed its dors this morning.
- Source
- newspapers
2.
October 25, 1907
Run
- Cause
- Local Banks
- Cause Details
- Runs and collection failures at branch offices created a run on the Goldfield/main bank.
- Measures
- Bank later sought cash infusion and arranged depositor agreements for gradual withdrawals; attempted to secure $2,000,000 in cash.
- Newspaper Excerpt
- branch banks at Carson, Manhattan, Tonopah and Blair, were unable to make collections sufficient to withstand the run on the main bank.
- Source
- newspapers
3.
November 3, 1907
Reopening
- Newspaper Excerpt
- the doors of the local branch of the State Bank and Trust company will be open tomorrow to receive deposits and allow depositors to sign an agreement providing for gradual withdrawals.
- Source
- newspapers
4.
July 21, 1908
Receivership
- Newspaper Excerpt
- Receiver Wildes has filed a report in which he condemns the action of President Rickey and the directors. He reports ... the banks at Tonopah, Goldfield, Manhattan and Blair were in the worst possible condition.
- Source
- newspapers
Newspaper Articles (22)
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# RICKEY ENDEAVORING # TO SECURE CAPITAL WILL REQUIRE TWO MILLIONS TO MEET ALL DEMANDS IN FIVE BANKS. SAN FRANCISCO, Oct. 28-Strenuous efforts are being made by Thomas B. Rickey, president of the State bank and Trust Company, the institution which closed its doors in five cities of Nevada, Wednesday, to arrange to open for business again this week. Rickey has been in this city for several days in consultation with leading local bankers with a view to securing sufficient cash to meet all the demands of depositors when the bank opens. He estimates that $2,000,000 in cash will be required to pay depositors as soon as the bank's doors are opened. Governor Sparks, of Nevada, has declared a legal holiday until yesterday, in order to give the bank officials an opportunity to realize on the great block of securities which they hold for collateral for loans, but President Rickey thinks that the holidays should be continued a few days longer in view of the conditions of the money market. When seen yesterday at the Fairmont, he said: "The financial difficulties of the State Bank and Trust Company, in common with all other financial institutions interested in the Nevada gold fields, is primarily due to labor troubles which have so seriously interfered with the development of all mining properties in the state. All calculations have been upset by the continued labor disturbances. Investors have been frightened away. Business men have found it impossible to meet their obligations to the banks, the market for mining securities has become depressed and things are practically at a standstill. "Our bank has a paid-up capital of $200,000 and a surplus of $204,000. In making loans we have always pursued a most conservative policy. On all clases of mining securities we have never loaned more than one-quarter to one-fifth of their value, so today we have four or five times the value of our outstanding loans in colateral, but the money stringency in New York, the failure of the Knickerbocker Trust Company and the general disposition of people to withdraw their savings and hoard them in safe deposit vaults until the situation clears makes it difficult for us to realize on these securities. "During the past six weeks we have paid out to depositors $2,000,000, and I estimate that as much more will be required in cash to meet the demands of depositors the minute we open again. I think I can safely say that no depositor of the State Bank and Trust Company will lose one dollar, but until I have made a thorough examination of every branch of the bank in Tonopah, Carson, Goldfield, Manhattan and Blair-I cannot give out a definite statement, and I cannot say when we shall open." When asked whether a receiver
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Oct. Goldfields, 25-Michael Kennedy attacked Andrew Larsen a resident of this piace last night with a knife, and was shot by Mrs. Larsen. Kennedy is dying. Goldfield, Oct. 25-The Sta e Bank and Trust Company closed its doors yesterday afternoon, because the branch banks at Carson, Manhattan, Tonopah and Blair, were unable to make collections sufficient to withstand the run on the main bank. Vancouver, Oct. 25-The Empress of China sunk at the dock here last night. leaving only her masts above water. She listed while taking on a load of coal and went under. Her cargo is flour, which will be a total less aggregating $1,000,000. Fort Leavenworth, Oct. 25During the dedication of the Young Men's Christian Association building, which was a gift from Helen Gould, the troops saluted the young lady as they passed in review before the stand. This is the first salute offered to a woman by the troops of the United States. Miss Gould was much affected. Milwaukee, Oct. 28-A committee has been appointed by the telegraphers union to confer with the companies regarding a peaceable settlement of the strike.
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Goldfields, Oct. 25-Michael Kennedy attacked Andrew Larsen a resident of this place last night with a knife, and was shot by Mrs. Larsen. Kennedy is dying. Goldfield, Oct. 25-The Sta e Bank and Trust Company closed its doors yesterday afternoon. Decause the branch banks at Carson. Manhattan, Tonopah and Blair. were unable to make collections sufficient to withstand the run on the main bank. Vancouver, Oct. 25-The Empress of China sunk at the dock here last night. leaving only her masts above water. She listed while taking on a load of coal and went under. Her cargo is flour, which will be a total loss aggregating $1,000,000. Fort Leavenworth, Oct. 25During the dedication of the Young Men's Christian Association building, which was a gift from Helen Gould. the troops saluted the young lady as they passed in review before the stand. This is the first salute offered to a woman by the troops of the United States. Miss Gould was much affected. Milwaukee, Oct. 28-A committee has been appointed by the telegraphers union to confer with the companies regarding a peaceable settlement of the strike.
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Governor Sparks Comes to the Resue of Financial Institutions. Goldfield, Nev.-A bank holiday throughout Nevada was declared by Governor Sparks on Thursday, to last five days. All the banks of Goldfield were closed on Thursday in consoquence. The proclamation came as a great relief to local banks. The State Bank & Trust company had already closed its doors. At noon Wednesday, a big run was in progress at the Nye & Ormsby bank, when banking hours closed, and the run probably would have continued had the bank opened
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SULLIVAN PROPERTIES The tribulations of the State Bank & Trust company can have but little effect upon continued development of the mine holdings here of the L. M. Sullivan Trust company of which T. B. Rickey of the suspended institution is presi-
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THE GOLDFIELD BANK. It Will be Open to Receive Deposits Today. Goldfield, Nov. 3.-The doors of the local branch of the State Bank and Trust company will be open tomorrow to receive deposits and allow depositors to sign an agreement providing for grauual withdrawals. On Tuesday the bank will probably open for regular business. No friction is anticipated. Otherwise the receivership proceeding will ensue.
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DEPOSITORS IN NEVADA BANKS EXPRESS THEIR CONFIDENCE By Associated Press. GOLDFIELD, Nev., Nov. 3.-In order to allow depositors to sign the agreement providing for gradual withdrawals, the doors of the local branch of the State Bank and Trust company will be thrown open tomorrow morning and the bank will receive depositors all day. No other business will be transacted. On. Tuesday morning the bank will probably reopen for business. The agreement with depositors is being signed in all the branches by practically a unanimous vote and no friction is anticipated here, as otherwise receivership proceedings would ensue.
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VOTE WITH RICKEY IN GOLDFIELD GOLDFIELD, Nov. 4.-There was a meeting of the depositors of the State Bank and Trust Company and a motion to appoint a committee of five to investigate the affairs of the bank was voted down. The motion to accept the proposition of the bank to pay all depositors in a year at three, six, nine and twelve months, ten, twenty, twenty and fifty per cent, was carried by a large majority. The opposition came from the Nagle'end, which wanted a receiver appointed. This faction will meet tomorrow afternoon to consider the proposition of the Farmers' and Merchants' bank to take over the affairs of the bank, but not much stock is taken in the proposition.
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WILL INVESTIGATE THE STATE BANK COMMITTEE OF FIVE TO EXAMINE AFFAIRS OF THE GOLDFIELD BRANCH. GOLDFIELD, Nov. 5.-There was another meeting of the depositors of the State Bank and Trust Company this afternoon, and a committee of five were named to investigate the affairs of the local institution and determine how much is in the strong box. The committee comprises H. W. Boyer, R. J. Shoemaker, R. L. Colburn, C. W. Hayes and C. H. Beesley. E. T. Patrick was chairman of the meeting and W. Jennings secretary. General Donovan, on behalf of his clients, stated that he had been opposed to the appointment of a receiver, but what was wanted now was the exact information regarding the standing of the bank. His clients, he said, wanted to know whether the bank was in condition to pay according to the agreement outlined by Mr. Rickey. The question for the depositors to decide, he said, was whether they would agree to have their money pooled to pay the demands of the other branches. His clients would not. His argument was that the money in the bank at Goldfield should be used as an asset for the people of Goldfield. Upon the statement being made that President Rickey would not be here until Thursday, adjournment was taken until 2 p. m. of that day. Frank Golden, president of the Nye and Ormsby bank was here today, looking into the matter of the attachment on his bank by the MacMillan Company. It it is said that an indemnity bond will be furnished by Mr. Golden, and the institution released from the care of Sheriff Ingalls.
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There is little or no change In the bank situation in Goldfield except that the John S. Cook bank, following the example of all outside banks, practically, has gone to a paper basis, and is giving out but little gold. The bank is well supplied with specie and currency but in view of the fact that all other banks are paying in certificates, and no actual money is being deposited. the supply would run short in time; so that this bank has adopted the same expedient as others. Some days ago the Cook bank notified the mine operators that it would not meet their pay rolls in cash, but would issue cashier's checks in denominations of $5, $10, and $20. This notice was given to the miners by the operators. The miners balked and the union took up the question. A committee of three was appointed to confer with the mine operators and bankers. This committee suggested to the operators that the miners would take the cashier's checks if they were endorsed by the mine owners, They also suggested that the shippers of ore demand payment from the smelters in the bullion extracted from the ore they shipped, this bullion to be sent to the mint and coin received therefor, the coin being paid to the miners for wages. The mine owners refused to consider this plan as impracticable and sent word to the miners that they would have to accept the proposition made by them. or quit work. The miners have evidently decided to accept the plan, as at the meetings held during the week, no adverse action was taken. The Nye and Ormsby County bank and the State Bank and Trust company are still at work upon depositors, urging them to sign the agreement. whereby they receive a certain per cent of their deposits at stated times covering a year. The banks are meeting with success but there are many depositors absent who will have to be signed up before the banks will open, as they intend to treat all depositors alike, The local banks have a great deal of money tied up in outside depositories which they cannot get hold of. The State Bank and Trust company says it has money in depositories at Los Angeles, San Francisco, Salt Lake City, Denver, Chicago and New York, which it cannot get, but with millions pouring into the New York banks and the banks of other financial centers, it hopes that these reserves will soon be released. President Rickey of the State Bank
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PROSPECTS ARE GOOD FOR OPENING BANK Reorganization Committee and Directors of Chamber of Commerce cf Goldfield Take Steps for Resumption By Associated Press. GOLDFIELD. Nev., Feb. 20.-The prospect for an early resumption of business by the State Bank and Trust company is better today than at any time since its suspension. The reorganization committee which has been in Goldfield met today with the directors of the chamber of commerce and the latter, after a careful investigation of the plan proposed, indorsed it by resolution and pledged the support of that body toward getting the unsigned depositors on the resumpNon agreement. Last night a public meeting was held here by the depositors and was largely attended. The reorganization committee explained the proposed plan of resumption and after lengthy discussion the plan was approved by a unanimous vote. By this plan D. Mackenzie will finance the institution, the depositors agreeing to accept payments in installments covering a year.
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TALK OF RESUMPTION. Depositors of the Goldfield Branch Appear Tractable. Goldfield, Nev., Feb. 20.-The prospects for an early resumption of business by the State Bank & Trust company are better today than at any time since its suspension. The reorganization committee which has been in Goldfield met today with the directors of the chamber of commerce, and the latter, after a careful investigation of the plan proposed, endorsed it by resolution and pledged the support of that body toward getting the unsigned depositors on the resumption agreement. Last night a public meeting was held here by depositors and was largely attended. The reorganization committee explained the proposed plan of resumption, and after a lengthy discussion the plan was approved by an unanimous vote. By this plan D. Mackenzie will finance the institution, the depositors agreeing to accept payments in installments covering a year.
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AFTER COUNTY FUNDS The Goldfield Tribune states that the district attorney of that county has been instructed to begin procfeedings against the State Bank and Trust Company to recover the $15.000 deposited in the bank by the county Proceedings will be brought against directors, President Rickey and a also the casheir of the bank. The district attorney will also demand of the court that a receiver be appointed immediately or the bank resume operations on a strictly solvent basis. How soon the district attorney will take action in the matter is not known but the commissioners of Esmeralda declare they will get the funds belonging to the county out of the bank before their term expires at any cost.
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COUNTY SUES FOR MONEY The board of county commissioners of Esmeralda county passed a resolution this week instructing the district attorney to enter suit against the State Bank and Trust company for the recovery of a special deposit of $4,870.03 and for the balance of the county money deposited in the suspended institution, amounting to about $15,000. The charge of embezzlement will be brought against the officials of the bank.
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Rottenness of Rickey's Banks The rottenness of the management of the State Bank and Trust company is being shown up little by little. Re ceiver Wildes has filed a report in which he condemns the action of President Rickey and the directors. He reports that he found the Carson bank in very good condition, but that the banks at Tonopah, Goldfield, Manhattan and Blair were in the worst possible condition. These banks were run in an openhouse fashion and loans were made without any attempt to get good security and that in every way the money was spent in a manner never recognized in banking. At Tonopah the company built a building suitable for a bank with $10,000,000 capital and with a business equal to that of a Wall street bank and employed a force more than three times as large as was necessary. He says in one instance the president and directors loaned a man at Tonopah $2500 when he did not have enough security to warrant a loan of 25 cents. He says the books are in a jumble and that he is unable to untangle them, but hopes to pay a dividend of 10 per cent to the depositors within two months. He gives an instance where the bank paid a check of several thousand dollars drawn by the Sullivan Trust company on the State Bank and Trust company after the bank had failed. He declares that the cashier endeavored to show by the books that the assets of the bank were $1,500.000, but that so far he had been unable to find assets amounting to more than $940,000. Wildes lays all the blame for the rottenness of the bank upon Preiident Rickey and the directors.
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Rottenness of Rickey's Banks The rottenness of the management of the State Bank and Trust company is being shown up little by little. Re ceiver Wildes has filed a report in which he condemns the action of President Rickey and the directors. He reports that he found the Carson bank in very good condition, but that the banks at Tonopah, Goldfield, Manhattan and Blair were in the worst possible condition. These banks were run in an openhouse fashion and loans were made without any attempt to get good security and that in every way the money was spent in a manner never recognized in banking. At Tonopah the company built a building suitable for a bank with $10,000,000 capital and with a business equal to that of a Wall street bank and employed a force more than three times as large as was necessary. He says in one instance the president and directors loaned a man at Tonopah $2500 when he did not have enough security to warrant a loan of 25 cents. He says the books are in a jumble and that he is unable to untangle them, but hopes to pay a dividend of 10 per cent to the depositors within two months. He gives an instance where the bank paid a check of several thousand dollars drawn by the Sullivan Trust company on the State Bank and Trust company after the bank had failed. He declares that the cashier endeavored to show by the books that the assets of the bank were $1,500.000, but that so far he had been unable to find assets amounting to more than $940,000. Wildes lays all the blame for the rottenness of the bank upon Preiident Rickey and the directors.
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WANTS THE WHISKEY One of the attorneys for Receiver Wildes departed for Goldfield to attach a quantity of whisky given to the State Bank and Trust Company as security for a loan.
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# Session of District Court Judge Langan held a session of the District Court in this city to-day. Rev Lloyd B. Thomas, rector of St. Peter's Church was granted permission to perform marriages in this county. Attorney H. V. Morehouse appeared in court and asked permission to institute suit against the Receiver of the State Bank & Trust Company, Frank L. Wildes, to quiet title to mining property situated in Esmeralda County. The request was granted and the case will be heard in that county at an early date. Attorney Morehouse also appeared for Sheriff Ingalls of Esmeralda County, asking that the sum of $9,872.67 on deposit in the State Bank & Trust Company 'n Goldfield be made a preferred claim and the hearing for the same was set for the 13th of June. This action is similar to the one instituted in this county recently asking that the county money on deposit in the Nye & Ormsby County Bank be declared a preferred claim. The money desired to be recovered by Mr. Ingalls being receipts of his office as Sheriff of Esmeralda County.
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The two convicts who escaped from the state prison farm near Carson are still at large. They are said to be making toward the eastern part of the state. The state police are on the tracks of the convicts. Peter Perlot, formerly manager of the Quartette mine at Searchlight committed suicide recently in Los Angeles. Ill health and business reverses are said to be the cause. T. B. Rickey, the man who it is said was responsible for the collapse of the State Bank & Trust company at Goldfield several years ago, has paid the receiver $20,000 as his share of the compromise. Rickey has twice stared the penitentiary in the face and has managed to get out both times on technicalities. Some people are born lucky. The San Francisco Examiner contains a report of an attempt at suicide on the part of T. R. Hofer Jr., in that town. Mr. Hofer was once postmaster at Reno an enjoyed the acquaintance of a host of friends. Senator Williams of Reno suffered the loss of a biig stack of alfalfa hay recently. The loss was sustained by fire and is estimated at $1,000.
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JUDGE LANGAN IS NOT VINDICATED AS PEOPLE SEE IT vote of the senate members LanThe to acquit Judge who yesterday balloted is the talk of and south- the gan citizens today, be and against him vote for and preserved for Goldfielders ern cut out Nevada denounce future should Senator reference. words not complimentary should Ducey in many assert that will to him. and return to Goldfield he he ever of his standing vote The following is of soon learn the in that the as recorded city in both branches legislature: SENATE VOTE Against Removal. MILLER, HESSEN, PENROSE, HARRINGTON, DRESSLER, KENNEY, KENT and DUCEY. For Removal. GRIFFITH, RAND, MA CALLAN COWLES. CHAPIN, FITZGERALD. SHEEHAN SCOTT. UNIACKE and ASSEMBLY VOTE Against Removal. FULTON, KING, FALL, LOCK WHIT. ACRE, TANNAHILL, MACK, HART. For Removal. HENDERGUMMOW, VENCIL, HUSSMAN, BARTSON LETT SMITH. BYERS, WALTERS, FAIRCHILD. WARD, LUTTS. ME- ARHARTLEY, BROWN. DEFENBAUGH AVERILL. DER. POHL, GENTRY, ADDEN NOLD. ROBB, HART, MATHEWS. PIERCY, HEWARD, ROYLE SPELLIER. BROOKE HILL CROSS. followers of Langdon brought This The children into the create fight. symhis six sob stuff" used to not en was pathy for him, when he of was sympathy a scintilla truthfully titled to Goldfield Tribune says The in its issue of yesterday in THOSE "SMALL CHILDREN" consumed lot of time was the legis"A Langan hearing before jockeying the at Carson in legal the lature to get before the members judge has "aix fact the accused time that children." HOW much hundred or small devoted to the six of the was "small children" fell six of the bank control depositors thousand Langan's that because doors were un- he happened der at the time its of district to hold the office children" judge? closed These other "small their graves or have either gone to and womanhood to manhood other "small grown have brought us $2000 clerk and children" while Langan's job as been nursing his $10,000 the funds has payable out of protect receiver. the court was sworn to Again we ask. for the forty-third or in all where in all Nevada that would, America time, is there a bank this $10. its own funds, pay as $2000 out of bank receiver as much The men 000 year as a banker? money in per women who put their there for and the defunct bank put it not for own children and come into their Frank Langan's, who have father and his the world since got their their strangle hold receiver bank." pet on the funds of this of The assembly yesterday the talked attorney proceedings general to commence authorizing action against Wildes for perjury. follow Frank Judge Langan gave out the of course, glad and that I am, action. I ing statement: senate's complete believe pleased vindiat the vote is a during the senate I do not think bench that 1 have cation. 14 years on the wrong-doing. been my guilty of any Bank & Trust 1 as the State concerned. "As far affairs are completion company's to rush them to further propose 1 do not know of " anything that If Langan I could can say." see any of complete the nine vindication in the action assemblyment senators and seven be has better
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# FAILURE OF # LANGAN REMOVAL The press of Nevada is pretty well worked up over the failure of the state senate to vote for the removal of Judge Langan. We are proud to report, however, that the senator from Humboldt is not a target for the displeasure, because he saw his duty and voted "right." He accompanied his action by the sensible statement that it was his duty to help rectify wrongs, and because they cannot all be cured is no reason why this one should not be corrected, which is along the line of reasoning that nothing good is attained without effort and a start being made. Judge Langon, who, by the way, is also the judge who figured in the Mary Pickford divorce scandal, is held responsible for delay in winding up affairs of the State Bank & Trust Company of Goldfield, dragging settlement over a long period of years during which time a receiver, Frank Wildes, also waxed fat on a thousand dollars a month salary. Several state papers have spoken right out in their disapproval, in words seldom used in newspapers of Nevada. It shows editors are sincere and willing to take any possible comeback that may be sprung, be it court action for libel or personal abuse and persecution. It's time the press of the state takes a stand against injustice to the people. Nothing has been done to help the poor depositors who lost savings of lifetimes in this bank smash. People who had power to see that justice was done have sat back and thought the receiver a real smart man because he could pick up a soft job that would make him wealthy in a few years. The poor people who lost what they could save out of wages for hard work-they were simple-anyone who could get rich from their misfortune was all right. That's what is the matter with the country today-the willingness to cover up politicians who are too weak to stand for the rights of the people; who are willing to stand back and see injustices that they may carry favor and win soft jobs and easy money. Newspapers are not all to blame, however. A newspaper man has to live and eat, just the same as other people. He knows that if he tells the people about the acts of men who for the love of money will stoop to most anything, those men and their friends are going to make him pay for it in the coin of the realm. And nine times out of ten the people to be benefitted by such exposures don't care a rap anyway. It's not Socialism or Bolshevism that's needed-our present form of government is hard to beat and still maintain progress of civilization. What is needed if for the people to do a little thinking for themselves, refuse to elect professional politicians regardless of beautiful promises, and insist that men qualified for the jobs, and not afraid to stand up, make the campaigns. We must have more common honesty and desire for a fair deal all around, whether our own pocketbook is affected directly or not. Such men as those who voted to maintain Langan must be forever