Wells State Bank (Wells, NV)

Episode Information

Episode UID
94004871595
Episode Type
Suspension → Reopening
Bank Type
state
Bank ID
9400487 routing
Routing Number
94-0048
Start Date
November 1, 1932
Location
Wells, Nevada (41.112, -114.964)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
8d063cadbce8d0f2

Response Measures

None

Description

Bank was one of the Wingfield group closed in the November 1932 banking holiday and later reopened under restrictions.

Events (5)
1. November 1, 1932 Suspension
Cause
Government Action
Cause Details
State banking holiday/moratorium declared by Nevada lieutenant governor and state bank superintendent took control of Wingfield banks; banks closed Nov. 1, 1932.
Newspaper Excerpt
By proclamation, I have just declared a business and banking holiday to and including the twelfth day of November, 1932.
Source
newspapers
2. November 21, 1932 Other
Newspaper Excerpt
meeting ... depositors will be told of Nevada banking difficulties and of the way out, through the consolidated bank plan. ... meeting ... of the Wells State Bank Tuesday night.
Source
newspapers
3. May 11, 1933 Other
Newspaper Excerpt
Wells Bank.... $15,640.03 (Apr. 30) $6,843.64 (Nov. 1) -- consolidated report for Wingfield banks showing cash position and reorganization progress.
Source
newspapers
4. November 2, 1933 Other
Newspaper Excerpt
trial of the Wells State bank preference claims was set for next Monday ... answers and cross-complaints asking receivership filed ... except the Wells State bank.
Source
newspapers
5. June 1, 1934 Reopening
Newspaper Excerpt
Banks reopening for restricted business ... Those under restrictions are: Lander County Bank, Austin; Wells State Bank, and the Mason Valley Bank.
Source
newspapers

Newspaper Articles (6)
1. November 1, 1932 Reno Gazette-Journal Reno, NV

Article Text

GROUP OF BANKS The Wingfield group of banks in Nevada, with combined deposits of about sixteen million dollars and capital of $1,975,000 include: Reno National Bank and Bank of Nevada Savings and Trust Company, with deposits of $7,600,000 and capital of $800,000; Riverside Bank of Reno, capital $50,000, deposits approximately $1,060,000; United Nevada Bank of Reno, capital $400,000, deposits approximately $1,800,000; Tonopah Banking Corporation, capital $50,000, deposits approximately $325,000; Virginia City Bank, capital $25,000, deposits approximately $200,000; Wells State Bank, capital $25,000, deposits approximately $85,000; Henderson Banking Company of Elko, capital $200,000, deposits approximately $1,650,000; Churchill County Bank of Fallon, capital $75,000, deposits approximately $750,000; Carson Valley Bank of Carson City, capital $125,000, deposits approximately $850,000; Bank of Sparks, capital $25,000, deposits approximately $730,000; Winnemucca First National Bank, capital $200,000, deposits approximately $2,000,000. LEGISLATIVE SESSION Reports were current this morning that the calling of a special session of the Nevada legislature will be discussed with Governor Balzar on his return to the state as a considerable part of the state's funds, as well as the funds of counties, school districts, municipalities and the university are on deposit in the Wingfield banks. The legislative session, however, if one is called would not be held until late this month and during the next twelve days the proposed reorganization of the Wingfield banks may be effected, it was pointed out. The terms of present members of the legislature, excepting hold-over senators expire on November 8 and if the legislature is called in special session its membership will consist of those elected next Tuesday and the hold-over senators. GRISWOLD'S STATEMENT Lieutenant Governor Griswold issued a statement in addition to the moratorium proclamation setting forth in detail his reasons for taking the action. The statement follows: "To the people of the state of Nevada: By proclamation, I have just declared a business and banking holiday to and including the twelfth day of November, 1932. My reason for so doing is the conviction that business, banks, bank depositors and the entire people of the state of Nevada will be best protected by this action. "While some of our banks are not to be considered as otherwise than sound in all particulars, those of our banking institutions which have particularly supported our agricultural interests are naturally most seriously affected by the collapse in prices of agricultural products, which occurred about three years ago. Only very slight recovery in such prices has been realized and in the meantime and before the price collapse, exceptionally adverse climatic conditions have further destroyed the ability of the livestock raisers and farmers to reduce their obligations to the banks. In fact, these banks, in the hope of carrying over to a period of better conditions, have been obliged to

2. November 21, 1932 Nevada State Journal Reno, NV

Article Text

Plan of Reopening Banks Through Creation Of Consolidated Institution Will Be Told The meeting is the forerunner of similar gatherings to be held in all communities where Wingfield banks are located. The meeting in Sparks will be followed by a gathering of bank depositors of the Henderson Banking corporation in Elko Tuesday noon and of the Wells State Bank Tuesday night. The Winnemucca meeting is likely to be held Wednesday noon. Three meetings are likely in Reno, one for the depositors of the Reno National and the Bank of Nevada Savings & Trust company, another for the United Nevada and the third for the Riverside Bank. However, the dates of the Reno meetings have not been set. In each instance depositors will be told of Nevada banking difficulties and of the way out, through the consolidated bank plan.

3. May 11, 1933 Reno Gazette-Journal Reno, NV

Article Text

CASH IN CLOSED BANKS AMOUNTS NOW TO OVER $700,000 The eleven Wingfield banks, destined to be consolidated under the proposed reorganization plan, have approximately $708,000 in cash on hand as compared with approximately $426,000 in cash that was in the eleven banks when they closed on November 1, 1932, according to a consolidated report prepared for the state banks by E. J. Seaborn, bank superintendent, and the reports of the receivers of the two national bank receivers are dated March 31. Cash in the nine state banks, excluding the Churchill County Bank at Fallon, as of April 30, compared with November 1, is as follows: Apr. 30 Nov. 1 Riverside Bank. $ 88,628.57 $ 64,780.25 United Nevada. 23,328.09 69,071.88 Bk. of Nev. S.-T. 23,824.44 28,188.83 Henderson Bk.. 83,290.42 74,339.33 Carson C. Bk... 24,336.76 36,463.77 Virginia C. Bk.. 10,870.05 12,939.49 Sparks Bank... 69,411.17 29,437.82 Tonopah Bk.... 17,451.70 19,589.78 Wells Bank.... 15,640.03 6,843.64 Total ......$356,781.23 $341,654.80 Cash in the two national banks as of March 31, compared with November 1, is as follows: March 31 Nov. 1 Reno Natl. ....$207,744.00 $ 35,536.16 Winnemucca .. 144,000.00 48,827.57 Total ......$351,744.00 $ 84,363.69 The Churchill County Bank at Fallon, which it is indicated will not join in the consolidation plan, had $27,480.79 in cash on hand on November 1 and $13,723.11 on April 30. The consolidated report of the condition of the ten state banks discloses a decrease of $816,205.40 in loans since the state bank superintendent took charge of them on November 12 and an increase of $11,253.88 in cash on hand. Interest bearing bills payable such as Reconstruction Finance Construction loans have been reduced $298,800.36 during the period the report discloses. Net collections and offsets total $532,000 and worthless assets to the extent of $97,000 have been charged off for income tax purposes, it is stated. Gross operating earnings of the ten banks for the period, which includes interest collected rentals and other items, amounted to $125,397.20 while the operating expenses including salaries, rents, attorneys' fees, postage, telephone and telegraph amounted to $68,644.76. The consolidated statement appears in an adjacent column and includes the Fallon bank.

4. November 2, 1933 Nevada State Journal Reno, NV

Article Text

Receivers Asked For Banks; Move Will Be Fought (Continued from Page One) been unavailing. but that Transamerica was still considering entering the Nevada banking field. Court's Jurisdiction Issue "What they may do is to open branch banking system here and then buy certain assets from the mortgage company or receivers. or whoever has the assets," Eccles said. A decision by Transamerica is expected this week end. Eccles said. The authority of a Nevada district judge to appoint a receiver for a bank will be an issue at forthcoming sessions of the trial. Judge H. W. Edwards of Ely, in the case in which Prince A. Hawkins sought to have a receiver appointed for the United Nevada bank. ruled that the court had no jurisdiction to appoint a receiver unless grave charges were made against the bank superintendent Two Remedies Seen "Our position will be that the court cannot appoint a receiver," M. A. Diskin, attorney for Bank Superintendent Seaborn, said last night. "The Nevada statute provides two remedies: reorganization or turning over the assets to the depositors. Seaborn has $20,000,000 in his care. We are going to be sure that the assets are not given to any one who has not the authority to receive them." Diskin said. Any further reorganization steps and the receivership issue will be decided at the next court session. November 15. Statement Issued After a conference last night Gunzendorfer and Griswold made the following statement: "We are going over the law and checking facts to determine which methods (receivership or a mortgage company) will be legal and how depositors can get the most money with the least expense. "As to the law, we have grave doubts of the court's authority to appoint a receiver or receivers under the present status of the case. Receivership Held Costly "As to the benefit of the depositors, we certainly feel that anything that will provide for liquidation is better than receiverships, with the incidental costs and attorney fees. "Further, we feel that the assets of the banks belong to the depositors and that they should have the right to select the method in which their property should be handled. "The cross-complaints filed by opposing attorneys do not show that it is the desire of the depositors to have receiverships. Receiverships certainly are not our desire, as past receiverships have been impractical from the standpoint of time and expense. Bank Asks Receiver "The 1933 legislature. in drawing the 1933 banking act. attempted to avoid the very thing our opponents desire to accomplish. "In due course and as soon as possible we expect to file pleadings setting forth our position." The attorneys filed answers and cross-complaints asking receiverships or a joint receivership for all state banks except the Wells State bank. E. F. Lunsford on October 10 filed such papers in the Riverside bank case. The First National bank of Reno vesterday petitioned for receivership the Henderson bank of Elko. The Henderson bank owes the Reno First National $3,324.36. Resume Case Nov. 15 Judge Guild declared that hearings would be held every day beginning November 15 and until the matter of disposal of the assets of the banks is completed. The issue now before the court is: Can the court appoint a receiver?" Judge Guild declared. The show-cause order, notifying all depositors to have any plans or suggestions before the court in writing on November 15 was granted by Judge Guild at the suggestion of H. R. Cooke. Judge Guild spent yesterday aft- ernoon preparing the order and mailing It to every newspaper in a town where there is a closed Wingfield bank. Preference Suits Pending "We will hear all matters regarding receiverships or new plans Wednesday, November 15. at 10 a. Judge Guild ordered. Griswold said he had no objection to the show-cause order. Judge Guild said that he still had jurisdiction of the case and expected to make final disposition of the bank problem. There are 10 suits for preference pending. one in Elko. one in Reno, three in Tonopah. three in Carson, one in Virginia City and one in Wells. Trial of the Wells State bank preference claims was set for next Monday. the Virginia City case for Tuesday and the industrial commission suits against the Carson Valley bank next Wednesday. The answers and cross-complaints asking receivership filed yesterday included the Tonopah Banking corporation. H. R. Cooke petitioner; Bank of Sparks, Agnes Brown, John Gunn. Herbert L. Covington, M. E. Bowman. William Schipper, August Bernacini, Frank Cantlon and A. J. Christensen petitioners; Virginia City bank, George H. Niemeyer petitioner; Carson Valley bank. Gertrude Church and the Zephyr Cove Properties company petitioners; United Nevada bank, Neph Adamson petitioner, and Bank of Nevada Savings and Trust company. Joseph A. Tacchino petitioner. The petitioners in the Riverside action included Mrs. J. La Rue Robinson, P. E. Groesbeck. Eliza Hill, Roger Bernard and L. B. Jenkins.

5. February 10, 1934 Reno Gazette-Journal Reno, NV

Article Text

ELKO BANK ACTS Griswold returned late yesterday from Winnemucca where he spent a week and immediately filed a petition in the district court at Carson City on behalf of the Henderson Banking Corporation of Elko asking that a depositor-creditor corporation be formed to take over that bank. The unanimous decision of the state supreme court yesterday, upholding the authority of Judge Clark Guild of the district court to place seven of the state banks in the hands of receivers, wound up a hotly contested phase of the protracted litigation. GUILD DUE TUESDAY It is expected that Judge Guild will name the receiver or receivers next week. He is now in Las Vegas and will return to Carson on Tuesday, he has advised the court attaches, at which time he may take up the petition of the Henderson Banking Company and may also name the bank receivers. Depositors of the Henderson Banking Corporation of Elko completed preparations several days ago for filing the petition for organizing a depositor-creditor corporation similar to the corporation that is now in charge of the Churchill County Bank at Fallon. Depositors of the Elko holding nearly one million dollars in deposits signed the necessary petitions. It is reported that similar action will be taken by depositors of the Wells State Bank of Wells, which is also in Elko county. These two banks were not included in the receivership decision of Judge Guild. They were eliminated by him because of the fact that they had asked for a change of venue from his court shortly before his receivership opinion was rendered. FEES OF ATTORNEYS Next week it is expected that the state board of finance will consider the claim presented by Harwood & Diskin for attorney fees for representing the state bank superintendent.

6. June 1, 1934 Mason Valley News Yerington, NV

Article Text

13 STATE BANKS STILL OPEN RENO, Nev., (UP)-Thirteen banks in Nevada are open for business, compared to 31 before the depression, a United Press survey showed. Of the banks open six are national banks, four state banks are operating without limitations and three under restrictions. Thirteen of the 18 closed institutions are in hands of receivers. 4 others have been reorganized into liquidatating companied and one, Bank of, Southern Nevada at Las Vegas, is in voluntary liquidation. Depositors of the closed Battle Mountain State Bank have petitioned for permission to reopen under restrictions. Hearing has been set for June 6 before Judge Edgar Eather at Austin. If the depositors' petition is granted the Batle Mountain institution will be opened for limited business similar to the Lander County Bank, Austin, the Mason Valley Bank at Yerington, and the Wells State Bank. Banks reopening for restricted business under the supervision of State Bank Superintendent E. J. Seaborn are required to freeze all old deposits for a four year period. New deposits must be held in cash, be, deposited with a Federal Reserve bank or invested in federal securities. Banks open for unrestricted business are: Ely National Bank and First National Bank, both at Ely; First National Bank, Lovelock; First National Bank, Elko; First National Bank, Reno: Ruth Bank, Ruth; First State Bank, Las Vegas; First National Bank, Eureka; Farmers Bank of Carson Valley, Minden, and the Bank of Pioche. Those under restrictions are: Lander County Bank, Austin; Wells State Bank, and the Mason Valley Bank. Closed Banks under Leo F. Schmitt as receiver are: Carson Valley Bank, Carson City; Bank of Nevada Savings and Trust, Riverside Bank, and United Nevada Bank, all of Reno; Bank of Sparks; Tonopah Banking Corporation, of Tonopah, and Virginia City Bank. Seaborn is in charge of the following closed institutions: Battle Mountain State Bank; Douglas County Farmers' Bank Gardnerville; The Quinn River Bank, McDermiat; Winnemucka State Bank and Trust Co. The Reno National Bank is in charge of Walter J. Tobin, national bank receiver. Receiver H. S. Streeter is in charge of the First National Bank of Winnemucca. MRS. JOHN FEENEY, former resident of Wabuska, accompanied by her son John, is spending a short vacation visiting at the home of Mrs. Gelmstedt. She will return to San Francisco on Monday. Subscribe to the News.