1.
May 23, 1905
The San Francisco Call
San Francisco, CA
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CROOKED WORK IS SUSPECTED Goldfield Bank and Trust Company Shuts Down Under Queer Circumstances AWAY RUNS CASHIER Demand for Payment on New Building Brings Disaster to Financial Institution 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 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's assets are $16 05 in the vault and a five-dollar gold piece found under the counter. Two checks, drawn by W. R. Hale of San Francisco, each for $5000 in favor of Francis L. Burton, promoter of the Goldfield Lida Investment Company, and one or the John S. Cook Bank here, were paid by the wrecked bank. One was dated the 23d and was paid on the 20th. It was returned by the Cook bank, which is but three blocks from the Goldfield Bank and Trust Company, with "no funds". marked on it, W. R. Hale never having had an account with the Cook bank. After the check was returned to the bank the other check for $5000, drawn by Hale in favor of Burton, was cashed by the now defunct bank. Francis L. Burton is personally overdrawn between $2000 and $3000 The bank has additional assets of $4800 in notes and $22 in cash, making the total assets, as far as discovered, $4822. The liabilities will run close to $82,000. The bank owes $16,000 to the Continental Construction Company for its new building. Robert Alexander and I. Hirschfeld, offlcers 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 fied from town in a buggy, but were caught in Háwthorne. A telegram received from Burton from San Francisco reads: "Any statements connecting me with the bank's failure are concerted lies. Young, the president of the bank, is here with the bank's collateral endeavoring to cover it. The First National Bank and the American National Bank are considering a plan to give assistance. Young, Redmond, Stein and myself will be in Goldfield Thursday morning. Chase sources of lying statements and protect us until we arrive." Burton is from Colorado, Young from Los Angeles and Redmond from Eureka, Cal. The total shortage of the Goldfield Bank and Trust Company has just been learned. It amounts to $78,227 20.
2.
May 23, 1905
Morning Appeal
Carson 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, 1905
The Salt Lake Herald
Salt 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 25, 1905
Santa Fe New Mexican
Santa 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.
5.
May 25, 1905
Los Angeles Herald
Los Angeles, CA
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TO BE RETURNED TO GOLDFIELD YOUNG AND BURTON TO MAKE NO FIGHT CLAIM BANK TO BE SOLVENT They Declare There Are Sufficient Assets to Liquidate Institution's Indebtedness-Cashier Boal Blamed By Associated Press. SAN FRANCISCO, May 24.-It was announced today that J. B. Young, former president, and E. L. Burton, attorney for the collapsed Goldfield bank and trust company, would return to Goldfield, Nev., without resisting extradition. They were arrested here last night on telegraphic warrants from the sheriff at Goldfield, charging them with embezzlement of funds for the bank. Young claims to have brought $27,000 in securities here with which to negotiate a loan, but said all the securities had been returned to the district judge at Carson City, pending the application of a receiver. Young said this morning he cannot make any statement of the condition of the bank at present, but claims it is solvent. He blames the cashier, J. R. Boal, for loose bookkeeping methods and says he never could get a trial balance from him. "If Boal had stuck to the bank we could have borrowed $20,000 down here and got through the trouble." "I am still president of the bank, although I had sold my interest under certain conditions and I am anxious to get back and make application for the appointment of a receiver." Francis L. Burton, the attorney, claims that instead of his owing the bank it owes him. He claims he should have a credit of $6000 on the books. "And if it is not there," he said, "it is due to poor bookkeeping." Asked for a statement of the bank's condition, he said he could not give one. But he added: "Take the item of $78,000 which it is claimed the bank owes depositors; against this we have $27,000 in securities returned to the district judge, $35,000 in gold collateral left in the bank, real estate valued at $15,000 and $6000 in a new hotel building in Goldfield. "This makes $82,000 and besides we have 100,000 shares in a mining company, worth fifty cents a share, and numerous small outside holdings."
6.
May 26, 1905
Evening Star
Washington, 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.
7.
May 26, 1905
Rock Island Argus
Rock 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.
8.
May 26, 1905
Morning Appeal
Carson City, NV
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SAYS THERE ARE FUNDS. Defunct Goldfield Bank Will Have to Show the People. GOLDFIELD, Nev., May 24-Application will be made to the courts with in a few days for the appointment of a receiver for the Goldfield Bank and Trust Company. Advices from San Francisco today state that President Young and Attorney F. L. Burton of the bank will return to Goldfield without the formality of extradition. President Young claims that he took $27,000 worth of securities to San Francisco to negotiate a loan with. These securities were sent to the federal Judge at Carson City. In addition to this Young claims that there is $35,000 good collateral in the bank, real estate in G oldfield valued at $15,000 and $6000 invested in a new hotel building at Goldfield. President Young blaims cashier Boal for the condition of the bank, saying that it could have borrowe 1 $20,000 if he had stuck to the bank. Attorney Burton claims that in addition to these items enumerated the bank owns 100,000 shares of mining stock worth 50 cents per share, as well as some other holdings.
9.
May 27, 1905
The Eureka Sentinel
Eureka, Tonopah, NV
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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.
10.
May 27, 1905
The Eureka Sentinel
Eureka, Tonopah, NV
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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.
11.
June 7, 1905
The Daily Silver State
Winnemucca, NV
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CASHIER BOAL WILL TELL ALL Evidence that Young's Wife Knew of Rotten Condition of Bank The preliminary hearing of President Young and Burton on a charge of embezzzling funds of the defunct Goldfield bank, began last Friday. A letter from Young's wife, found on his person shows conclusive'y that she was aware of the rotten condition of the bank and had withdrawn her money Irom it before it suspended. A continuance was granted on the plea of Attorney George D. Pyne that the books of the bank were before the District court in Carson City. Mr. Pyne is attorney for the creditors' committee to prosecute Young, Boal and Burton. Cashier J. R. Boal, of the collapsed Goldfield Bank and Trust Company, jointly charged with President Young with embezzing $78,000, will divulge, at the proper time, everything he knows in connection with the closing of the institution. He will go still farther, in that he will do everything in his power to aid the depositors' committee and Receiver Hirshfeld in clearing up the affairs of the bank. I. Hirshfeld has returned from the District court at Carson with his commission as permanent receiver of the bank and instructions to exercise full authority in all matters pertaining to the bank. His appointment was not contested, as had been expected as a result of the petition of President Young to the court that the receivership be dissolved, upon the ground that the bank was solvent. Upon his return from Carson Receiver Hirshfold conferred at the jail with President Young in the matter of the bank in Young's possession, including the $34,000 worth of securities which Young claims to have taken to San Francisco and which he sent to Carson after arriving in Goldfield. Young signed an order instructing the postmaster at Carson to forward the registered letter, said to contain the securities, to the postmistress in Goldfield, upon the agreement that they will be de ivered to Receiver Hirshfeld in the presence of Young's counsel, Attorney Detch.
12.
June 17, 1905
The Eureka Sentinel
Eureka, Tonopah, NV
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FAKE CHECKS BOLSTER CAPITAL Bankers Acquitted of One ChargeYoung Held for Embezzlement. The preliminary examination of J. B. Young of the Goldfield Bank and Trust Company and Francis L. Burton on the charge of conspiracy and obtaining money under false pretenses resulted in their acquittal at Goldfield last Satur. day. Young was remanded into custody pending his trial on the charge of embezzlement. Twenty - four thousand dollars' worth of Youngs' personal securities have been attached and these, with others, will, it is estimated, pay the creditors of the bank 50 per cent. Cashier Boales' testimony showed that he paid but one $5000 check to Burton on the advice of Director Davis. This check was indorsed twice. The two debit checks amounting to $43,000 were accounted for by Cashier Boales' statement to Receiver Hirsch. feld that they were fakes, representing no money, but were used to bolster up the bank's capitalization, which was said to be $100,000, but which was only in reality $17,000 cash.
13.
July 18, 1905
The Daily Silver State
Winnemucca, NV
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FRIENDS OFCASHIER BOAL PUT UP MONEY Twenty Thousand Dollars Deposited With Receiver of Defunct Goldfield Bank and Trust Co. On the eve of the trial of J. R. Boal, the cashier, and J. B. Young, president of the defunct Goldfield Bank and Trust Company, Attorney Earl Rogers, who appears for Boal, has deposited $20,000 in cash which has been advanced by friends and relatives of the unfortunate cashier. No condition is attached to the payment, but Boa's people expect that It will have the effect of mitigating his offense in a large degree. It is the opinion of the receiver at this time that with the payment of the $20.000 a dividend of 50 per cent can soon be daclared for the benefit of depositors.
14.
July 22, 1905
The Daily Silver State
Winnemucca, NV
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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.
15.
August 11, 1905
The Goldfield News
Goldfield, NV
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When interviewed by a reporter of the News this morning, he said: "I am assisting Mr. Hirshfeld in every possible way to pay off the indebtedness of the Goldfield Bank and Trust company and we are going over the accounts as rapidly as the conditions permit. I expect to remain here until matters are all cleared up and am now endeavoring, with I believe excellent prospects of success, to raise the balance of the money due the depositors. The receiver and I are working in harmony and the result will I am sure accrue to the benefit of the bank's customers. Other dividends are to follow the one mentioned by Mr. Hirshfeld as rapidly as possible, and I feel hopeful of being able to pay every claim in full. If I live there is no question but what some day I will pay every depositor every dollar due him and I am hopeful that the day of payment is near at hand."
16.
August 27, 1905
The Washington Times
Washington, 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.
17.
September 1, 1905
The Goldfield News
Goldfield, NV
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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.
18.
October 6, 1905
The Goldfield News
Goldfield, 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,
19.
November 4, 1905
Tonopah Bonanza
Tonopah, Butler, NV
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# YOUNG IS CONVICTED.
Prseident of Defunct Geldfield Bank Gets a Shock.
J. B. Young, president of the defunct Goldfield Bank and Trust company, is again in jail at Hawthorne. This is as a result of the second trial, the jury convicting him after being out only forty minutes.
Young was overcome by the shock as he had confidently expected that he would be able to clear himself of the three indictments brought against him. He was taken in charge by the sheriff and is now in a cell awaiting sentence. Young was acquitted on the first count, but now that he has been found guilty Cashier James R. Boal will be placed upon trial.
Boal was in charge of the bank at the time of its disaster, but he claims that he acted solely under orders from Young and his associates and was in no wise responsible. Boal is defended by Earl Rogers of Los Angeles, one of the greatest criminal lawyers of the west, who says he will easily clear his client.
Boal, it will be remembered, made partial restitution of the stolen funds, returning about $20,000 to the bank, the amount being raised by his friends. The failure of the concern was one of the worst that ever occurred in Nevada.
When the receiver took charge he found but $19.40 in the vault and the outstanding liabilities amounted to over $70,000.
The most valuable asset of the bank was its business property which has since become quite valuable, and will go far toward liquidating the debts of the institution.