14660. Wells State Bank (Wells, NV)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
November 1, 1932*
Location
Wells, Nevada (41.112, -114.964)

Metadata

Model
gpt-5-mini
Short Digest
7ad79ddb

Response Measures

None

Description

The Wells State Bank was put on a holiday/suspension as part of the Wingfield banks reorganization in Nov 1932 (article dated 1932-11-21). By June 1934 it is reported open under restrictions (article dated 1934-06-01). There is no explicit mention of a depositor run in these excerpts — the closure was a planned holiday/reorganization among Wingfield banks and later reopening under restrictions supervised by the state bank superintendent.

Events (2)
1. November 1, 1932* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Part of the Wingfield banks group placed on a holiday to permit reorganization amid Nevada banking difficulties; plan to consolidate Wingfield banks and require depositors to waive portion of deposits into stock.
Newspaper Excerpt
The 12 Wingfield banks, now on a holiday to permit reorganization, would be wiped out and their assets utilized in creating one strong bank with branches.
Source
newspapers
2. June 1, 1934 Reopening
Newspaper Excerpt
Those under restrictions are: Lander County Bank, Austin; Wells State Bank, and the Mason Valley 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.
Source
newspapers

Newspaper Articles (3)
1. November 21, 1932 Nevada State Journal Reno, NV
Article from Nevada State Journal, November 21, 1932

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Article Text

SPARKS SESSION FIRST AND WELLS TOMORROW McKee, Wingfield and Thatcher to Explain Consolidation Plans; Legislation Needed By GEORGE CRISSEY The first of series of mass meetings to educate Nevadans as to the advantage of reorganizing the Wingfield banks into one consolidated bank which, with branches, would serve the entire state, will be launched at Sparks tonight. A mass meeting of depositors of the Bank of Sparks will be held. It will be addressed by J. K. McKee, Reconstruction Finance Corporation expert; George Wingfield, head of the Wingfield banks; George B. Thatcher and others. The meeting will open at 7:30 m. in the auditorium of the Sparks high school. H. Gazin will open the conference and will call upon Thatcher to preside. The meeting will be open to the public and depositors are particularly urged to attend. 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 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 Nevalda 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. Consolidation of 12 Banks Into One Strong Institution Is Basis of Reorganization Plan The plan, as explained to a committee of depositors which endorsed it, is simplicity itself. The 12 Wingfield banks, now on a holiday to permit reorganization, would be wiped out and their assets utilized in creating one strong bank with branches. A special session of the legislature, in addition to depositor consent, is necessary. If the depositrs agree to the change in banking, a special session will be called to legalize branch banking which, at present, is contrary to Nevada law. Reconstruction Finance Corporation Expert Gives Plan Unqualified Endorsement Local citizens today stressed the fact that the plan has the unqualified endorsement of McKee, who represents the Federal Reconstruction Finance Corporation. He, it was pointed out, is an outsider, and sees Nevada problems in the abstract. His decision, after prolonged investigation, is in favor of the plan. That, it was stréssed, is the view of a financial expert from the outside who has no direct interest in the state. The members of the depositors' committee which, on Saturday night, endorsed the consolidated bank plan, left for their various homes to arrange general meetings of depositors. In each instance, the committeemen will carry word of the plan back home, plan the meeting and advise Thatcher who will arrange for the mass meetings. McKee Leaves Tuesday for Washington, But LeRoy Will Remain Until Plan is Worked Out McKee is leaving Nevada Tuesday after the Wells called back due to for He was meeting Washington. pressure of business from other quarters. A. R. LeRoy, the other R. C. expert, will remain here, however, until the present situation is worked out. Details of the plan call for depositors waiving 40 per cent of their deposits, which would be given to them in stock in the consolidated bank: The remaining 60 per cent would be subject to a withdrawal restriction while assets of the bank, including slow loans, would go into a trust fund to secure the deposits transferred into stock. McKee heartily approved of the plan, saying he saw officials that view also. out. Bank expressed other way

2. November 2, 1933 Nevada State Journal Reno, NV
Article from Nevada State Journal, November 2, 1933

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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.

3. June 1, 1934 Mason Valley News Yerington, NV
Article from Mason Valley News, June 1, 1934

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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.