Carson Valley Bank - Carson City, NV

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: May 7, 1927
Location: Carson City, Nevada (39.164, -119.767)

Metadata

Model: gpt-5-mini
Short Digest: 78f0258e

Response Measures

Accommodated withdrawals, Public signal of financial health

Description

Newspaper describes a brief panic/rumors around May 7, 1927 after disclosure of alleged embezzlement by former cashier Clapp. The president (George Wingfield) announced steps to protect depositors and the near panic subsided after a few hours. No suspension, closure, or receivership of Carson Valley Bank is mentioned.

Events (1)

1. May 7, 1927 Run

Cause: Bank Specific Adverse Info
Cause Details: Disclosure of alleged embezzlement involving former cashier H. C. Clapp and the indictment of state officials linked to the scheme; rumors that the bank might be in peril followed the revelations.
Measures: President George Wingfield announced he had taken ample steps to protect depositors.
Newspaper Excerpt: Thrilling hours were witnessed in Carson City, as rumors flew about that the little bank might be in peril, but Wingfield announced that he had taken ample steps to protect depositors, and after a few hours the near panic subsided
Source: newspapers

Newspaper Articles (1)

1. August 13, 1927 Las Vegas Age Las Vegas, NV

Article from Las Vegas Age, August 13, 1927

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Article Text

STAGE ALL SET FOR COLE-MALLEY TRIAL Drama Opens Monday, Aug. 15, When Former State Treasurer and Controller Go On Trial For Embezzlements. The little courtroom in the Ormsby county courthouse at Carson City will be the scene of Nevada's greatest legal drama August 15th, at 10 o'clock when Ed Malley and George Cole go on trial. The actors have been summoned, and the stage is set. The actors will include many of the state's most prominent residents. The twb in the leading roles of defendants are men described as once the state's best known and best loved citizens. Ed Malley, who until a few months ago had served Nevada as state treasurer for eight years, has been a resident of the state for 20 years. He is known in every corner of the state and was highly popular. George Cole. former state controller, has lived in Nevada 30 years and also is known in every section. Clapp to Appear The third member of the trio of George Cole, Ed Malley and H. C. Clapp also will be in the scene. Clapp is expected to be one of the principal witnesses for the prosecution of Malley and Cole, accused of embezzling $516,322.16 from the treasury of Nevada, having pleaded guilty to his part in the gigantic scheme and intimated in court that he would give evidence for the state. Malley, Cole and Clapp-for weeks those names were on the lips of every Nevadan last spring, when they were charged with one of the greatest swindling plots in the history of the nation. Clapp is former cashier of the Carson Valley bank, and was an indespensible link in the "perfect circle" which the three are alleged to have formed to cover defalcations. Circle Is Broken It was not until he had been discharged from his position by George Wingfield, president of the bank. for actions in no way connected with the alleged embezzlement, that disclosure of the scheme was made. Then, May 7. the bomb was burst. Governor Fred B. Balzar filed charges against Malley, accusing Cole and Clapp with aiding and encouraging him in the suspected swindle. Nevada was shocked, probably as it had never previously been shocked. The names of the men their reputations and the magnitude of the alleged swindle caused the state to gasp. Thrilling Hours Seen Thrilling hours were witnessed in Carson City, as rumors flew about that the little bank might be in peril, but Wingfield announced that he had taken ample steps to protect depositors, and after a few hours the near panic subsided, but not yet has the tree lined main street of the state capital ceased carrying stories of the Malley, Cole, Clapp machinations. Monday, May 9. Attorney General M. A. Diskin asked that the governor appoint special counsel to aid him in the prosecution, "that no possible criticism can be raised that. because of political or other reasons, the prosecution for the state was not conducted with the utmost diligence and skill." Counsel Selected Balzar shortly afterward named Lester D. Summerfield, district attorney of Washoe county, and N. J. Barry, Reno attorney. to assist Diskin in the case. John M. Chartz, district attorney of Ormsby county, also will be of counsel for the prosecution. Malley and Cole will be represented by P. A. McCarran, former justice of the supreme court. It is probable that other attorneys will assist McCarran in the defense, but the attorney said yesterday that no definite arrangements have been made. A final conference is expected to be held today. The three men were indicted by a grand jury May 20, with seven true bills being returned. Witnesses before the grand jury were George Wingfield, J. H. White, secretary to Governor Balzar; W: G. Greathouse, secretary of state; Ed Peterson, state controller; George B. Russell, appointed by Governor Balzar as (Continued on Page Six.) To through founteen