14644. State Bank and Trust company (Tonopah, NV)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 1, 1907*
Location
Tonopah, Nevada (38.067, -117.230)

Metadata

Model
gpt-5-mini
Short Digest
b33f4854

Response Measures

None

Description

The State Bank and Trust Company in Tonopah had previously suspended (is described as 'defunct' and a receiver, Frank L. Wildes, was appointed). Articles discuss mismanagement, overstated assets, insufficient coin reserves, embezzlement charges, and receiver actions — indicating a suspension that led to permanent closure/receivership rather than a depositor run or reopening.

Events (3)

1. November 1, 1907* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed after mismanagement: overstated assets, insufficient coin reserves, large improper loans, diversion of depositor funds to building; alleged embezzlement and huge liabilities exceeding assets
Newspaper Excerpt
at the time of the suspension of the bank about a year ago
Source
newspapers
2. August 18, 1908 Receivership
Newspaper Excerpt
Receiver Wildes ... appointed by the court; the withdrawal of the two companies from the bonds adds a new phase to the bank tangle. There is a doubt whether the receiver appointed by the court has any power to act now that more than half of the security has been withdrawn. F. L. Wildes, receiver of the defunct State Bank and Trust company, arrived in Tonopah yesterday from Carson. Frank L. Wildes became the plaintiff in an action as receiver of the State Bank and Trust company against ... the former directors of the defunct bank. The first witness called to the stand was Fred A. Seymour, who has charge of the receiver's office of the State Bank and Trust company in this city, and who was on the stand when the court adjourned. STATE BANK AND TRUST RECEIVER ASKS HEAVY DAMAGES ... the duly appointed and acting receiver of the said State Bank and Trust company; that during all of the time the plaintiff has honestly, properly, energetically and lawfully conducted the affairs of said receivership ... Wildes had drawn a salary of $16[00] monthly for 16 months from the state, after his appointment as receiver of the defunct bank, ... The complaint ... was filed by Frank L. Wildes as receiver ... and claims ... mismanagement ... insufficient reserves ... (Various articles compiled.) what to pick up here? (This long string is one excerpt showing lot of evidence.) *truncated* (See articles.)
Source
newspapers
3. February 10, 1909 Other
Newspaper Excerpt
The securing of the jury in the case of E. B. Cushman, charged with embezzlement ... The first witness called to the stand was Fred A. Seymour, who has charge of the receiver's office of the State Bank and Trust company in this city ... (trial testimony).
Source
newspapers

Newspaper Articles (5)

Article from Tonopah Daily Bonanza, August 18, 1908

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Article Text

the object of the bond is to protect the depositors in such matters. He stated that in his final accounting he must show vouchers for every cent expended. There is a statement at the bank, open to inspection, showing the disposition of all moneys so far expended by him. The withdrawal of the two companies from the bonds adds a new phase to the bank tangle. There is a doubt whether the receiver appointed by the court has any power to act now that more than half of the security has been withdrawn. The compiled laws of Nevada, section 1887, spra, provide that where more than half of the sum required on any bond undertaking is withdrawn the official thereby bound is prohibited from exercising any further functions of the office. If this presumption is correct the State Bank and Trust company is in the same position where it was before the receiver was appointed. What effect this will have on the depositors, or what action is taken is problematical. Judge Langan will not be here before September 8 to hear the applications of the backsliding companies for permission to withdraw. Until this application is granted the court has no power to reduce the amount of the bond. It may be that the gravity of the situation may cause the judge to come here sooner, or hear the applications at Goldfield, where he is now holding court. In any event it will require hard work amount of a new bond in such a short time, and considerable mischief or harm may be done in the meantime. Granting that Receiver Wildes has no power to act until a new bond has been approved, deposi-


Article from Tonopah Daily Bonanza, September 26, 1908

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Article Text

PERSONAL MENTION H. MeNamara is over from Goldfield, W. B. Sollender left yesterday for Bishop. Charles Alphin came over from Goldfield last night. George Thatcher returned from Round Mountain yesterday. G. I. McLeod leaves tomorrow morning for a visit to the coast. Congressman George A. Bartlett returned from a business trip to Round Mountain yesterday. Mrs. H. H. Bacon arrived yesterday morning from Los Angeles after an absence of eight months. W. W. Keith, the popular official of the Tonopah and Tidewater, came over from Goldfield yesterday. F. L. Wildes, receiver of the defunct State Bank and Trust company, arrived in Tonopah yesterday from Carson. J. Bergholdt of the firm of Silvia and Bergholdt came in on yesterday's train from Newcastle, California.


Article from Tonopah Daily Bonanza, November 17, 1908

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THE RICKEY BANK DIRECTORS SUED Another turn of the State Bank and Trust company wheel has been made and Saturday in the district court of Ormsby county Frank L. Wildes became the plaintiff in an action as receiver of the State Bank and Trust company against T. B. Rickey, George H. Meyers, P. H. Peterson, Al. Livingston, Wilson Brougher, George W. Mapes, Charles T. Bender, James P. Woodbury and S. L. Lee, who were the former directors of the defunct bank. The instrument filed contains over forty pages and contains a complete history of the corporation. It claims that the amount of $42,000 which has been paid to the stockholders during the past two years in dividends was far in excess of the amount that should have been paid. It states that at the closing of the bank about a year ago the assets were claimed to be $2,681,808.51, when as a matter of fact the true value was only about $560,000. The liabilities at this time were estimated to be $3,614,399.68. It also claims that directors or the bank were guilty of mis-management and of failure and neglect to perform their proper duties by allowing loans of thousands of dollars to be made without the consent of the board of directors. The document then sets forth the fact that at the time of the suspension of the bank there was in all only $140,326.17 in coin in all the branches of the bank and this includes the amount owed to them by other banks. This cash represented one of the principal assets while at the same time the bank owed to depositors the amount of $2,308,027.22 and according to their laws should have had at least 20 per cent of their deposits on hand in coin or the amount of $461,608.44. Their actual reserve of $321,279.27 was found to have been invested in loans whose securities were a lot of worthless mining stock. Attention is also called to the $170,000 of the depositors' money spent in the erection of the banking building at Tonopah and which has decreased in value fully $125,000 since it was erected. T.B. Rickey, president of the bank, is


Article from Tonopah Daily Bonanza, February 10, 1909

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JURY SECURED IN CUSHMAN CASE AFTER TWO AND A HALF DAYS SPENT IN EXAMINING VENIREMEN. The securing of the jury in the case of E. B. Cushman, charged with embezzlement, was completed yesterday afternoon in the district court and the taking of testimony commenced. Only five peremptory challenges were used, two by the defense and three by the state. The first witness called to the stand was Fred A. Seymour, who has charge of the receiver's office of the State Bank and Trust company in this city, and who was on the stand when the court adjourned. A few tiffs between the attorneys for both sides caused considerable amusement for the spectators, but luckily no blood was pilt, and the intervening of Judge Averill caused the cessation of hostilities. The case will be resumed this morning and should be concluded before night. The following are the jurymen secured: William Bryant, Joe Rippingham, Paul F. Revert, J. G. Ford, E. E. Lawson, George LaDuke, Edmond Thornton, Carl Johnson, W. V. Ryan, P. R. Terwilliger, George W. Pettigrove and James W. Riggle.


Article from Tonopah Daily Bonanza, April 26, 1913

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STATE BANK AND TRUST RECEIVER ASKS HEAVY DAMAGES ALLEGED FOR DEFAMATION OF CHARACTER Tag! The Bonanza is "it." tiff ever since said appointment ha been, and now is, the duly appoin Balm for the wounded feelings and ed, qualified and acting receiver injured dignity is asked from the the said the State Bank and Trus Bonanza by Frank L. Wildes to the company; that during all of sal extent of $30,000. time the plaintiff has honestly, pro For the first time in several years erly, energetically and lawfully col this publication is made the defendant ducted the affairs of said receivershi and has applied to the same his et in a libel suit. In the language of the poet it is "just one damn thing tire time except when incapacitate after another.' by illness. The suit was filed in the Carson "That on or about the 12th day district court, Judge Langan presidMarch, 1913, at Tonopah, Nevada, th ing, Tuesday and yesterday the padefendants did, wrongfully and wit pers reached this city, the service be malice, publish and cause and pr cure to be published in said new: ing made after this paper had gone to press. paper of and concerning the plaintit The case will be watched with inherein the following words: RECALL OR IMPEACH. terest, not only by the residents of 'Perjury on the part of Fran Nevada but by the entire population of this state for it comes as aclimax L. Wildes, receiver of the Stat of the battle fought by the Bonanza Bank and Trust company, and als in the interests of the depositors of on the part of District Judge Fran the long defunct State Bank and Langan, appears to have been com Trust company. The Bonanza has mitted, according to the startlin evidence placed before the assem long contended that the depositors interests were not being protected by bly yesterday by Assemblyman Ke Receiver Wildes, and for entertain liber of Tonopah. Wildes declare ing this opinion Wildes asks that we that he had devoted his entire tim contribute $30,000 to his upkeep. to the conducting the affairs o The idea! Thirty thousand plunks! the receiver's office when askin Three years salary, according to the for an order allowing him $10,00 yearly salary, and the court in rul handsome sum now allowed by Judge Langan to the receiver. The mat ing also declared that the sum o E ter is hardly worth mentioning, for $10,000 appeared reasonable as th it is believed to be the smallest libel entire time of the receiver was 00 suit ever filed in this state. Several cupied in the performance of hi duties. $50,000 suits have been directed in 'What a farce,' the past against the Bonanza, but to en make a reduction to $30,000 is appali The startling discovery tha et ing. It is ridiculous. Why be a Wildes had drawn a salary of $16 or piker for a mere $20,000. monthly for 16 months from th d Wildes insists that the Bonanza is state, after his appointment as re higuilty of defamation of character. ceiver of the defunct bank, come e Wow! Readers with cracked lips as a fitting climax to the disgrace es should read no further. ful condition that has long beer 'OThe alleged act of violence that tolerated. Wildes drew a salary d wounded the reputation of Wildes was from both the state and from the les supposed to have been committed 01. bank. He could not serve two re March 12, when an editorial appear masters at the same time, nor could leed in which it was declared that he have earned the salary receiv Wildes appears to have committed ed from the state if, according to he perjury. This was in relation to his his statement and also the state ht statement to the Carson court that ment of Judge Langan, that "de he had "devoted his entire time" to devoted his entire time to the bank am the work of the receiver's office, and receivership." at the subsequent disclosure that he had "Judge Langan committed ds breach of public trust in allowing drawn salary from the state as depni uty state treasurer for sixteen or such a salary to his appointee while nd eighteen months after being appointsaid appointee was under salary We ed to the receiver's office, The Bo to the state, and it should be the to nanza contended that Wildes could duty of Langan to immediately sub not serve two masters at the same mit a ruling rescinding his former time, but the rebuke in the form of order. In addition, it should be th the libel suit makes it appear that duty of the court to immediately Wildes is of the opinion that he can remove Wildes from the office he serve two masters without commitnow holds, and in his stead ap ting perjury, point a man whose honesty an The complaint in its entirety, omitintegrity is not doubted. ting the title of the court and cause, "The immediate recall of Judge is given herewith as received yesterLangan, or his impeachment, should day follow as soon as the law will per "The plaintiff complains of the demit such action. The Bonanza con fendants, and for cause of action al tends that Judge Langan is not leges: fit person to occupy the bench o 'That the defendant Tonopah Puba district court, for by the dis OMlishing Company is. and at all times closures as made yesterday, his in herein mentioned was, a corporation ability to protect the depositors clearly shown. It is within th organized and existing under and by virtue of the laws of the state of power of the legislature to impeac Nevada: and is and was at said times Langan, and this action should b ernengaged in the business of publishtaken without delay. Furthermore reing, at Tonopah, Nye county, Nevada, the impeachment of the juris 1 by a newspaper known as "The Tonopah should precede the appointment ague Daily Bonanza." a successor to Wildes, for by thi urgThat at all times herein mentioned action the depositors can only land the defendant, W. W. Booth, was the assured of a receiver who will pr the editor and manager of said newstect their interests. ryan peper. "Judge Langan has not performe d by "That on or about the 18th day of his duty in a manner that wou May, 1908, by the district court of protect the interests of the the First Judicial district of the state funet bank's creditors. Had of Nevada, in and for the county of done so he would have ordered DAY Ormsby, in that certain action then initial report of Wildes forward and there pending in said court in to the depositors, instead of bei eries which the state of Nevada, on the redestroyed after being printed. T field lation of John Sparks, et al, was court knows of the disappearan at d plaintiff. and the State Bank and of the reports for the matter h noon. Trust company, a corporation organbeen given publicity, not only brove ized and existing under and by virtue the Bonanza, but in the Goldfie termof the laws of the state of Nevada, Tribune and also the Reno Journ both et al, were defendants, the plaintiff in addition to other state pape vic herein was duly and regularly ap The matter has been discuss The pointed receiver of the said the State broadcast. It is common talk clock Bank and Trust company: that there over the state. And yet Jud after the plaintiff filed his bond in Langan has remained inactive. said court and cause, took the oath "Whatever the motive may such be a that lies behind the inactivity r the of his dutered of office upon of the discharge receiver. and enties as such receiver: that the plain(Continued on page 4)