18546. Midvale State Bank (Midvale, UT)

Bank Information

Episode Type
Suspension → Run → Reopening
Bank Type
state
Start Date
April 2, 1928
Location
Midvale, Utah (40.611, -111.900)

Metadata

Model
gpt-5-mini
Short Digest
05f5446f381d288b

Response Measures

None

Description

Articles show the Midvale State Bank suspended business in early April 1928 after the state banking department took charge and a $74,000 shortage was found (audit/embezzlement investigation). Later pieces (1929 trial of former cashier) treat the officers as former and the bank as closed, but a 1930 article reports a depositor run triggered by a (false) postoffice burglary rumor — implying the bank was operating again by 1930. Chronology: suspension (1928) → later run (1930). It's unclear when/how the bank resumed operations between 1928 and 1930; classification chosen is suspension_run_reopening to reflect a suspension followed by a later run while the bank appears to have been open. Not all reopening details are in the provided articles.

Events (3)
1. April 2, 1928 Suspension
Cause
Government Action
Cause Details
State banking department took over and audited the bank after disclosures/shortages in accounts; bank suspended business pending audit.
Newspaper Excerpt
the bank suspended business and was over by the state banking department which making an audit of the accounts. Preliminary examination of the accounts of the bank shortage of $74,000
Source
newspapers
2. April 9, 1929 Other
Newspaper Excerpt
Trial Olsen begins ... Leon Olsen, former cashier of the Midvale State bank, charged specifically with embezzlement ... Burgon former county and director of the Midvale State bank when was closed. ... the court would admit all bearing upon the shortage, if had any connection with the specific $1000.
Source
newspapers
3. March 17, 1930 Run
Cause
Rumor Or Misinformation
Cause Details
False rumor of a $17,000 postoffice robbery and looting of mailboxes led depositors to demand funds; authorities later held youths for questioning and postal inspector said stolen items were canceled checks.
Random Run
Yes
Random Run Snippet
Rumors of $17,000 postoffice robbery; stolen items were canceled checks
Newspaper Excerpt
Rumors $17,000 postoffice robbery started the Midvale State bank Monday, according ports. depositor, hearing that the boxes had been broken postoffice night, hotfooted the bank demanded his money despite 000 assurances that the stolen was all canceled checks.
Source
newspapers

Newspaper Articles (3)
1. April 2, 1928 Deseret News Salt Lake City, UT
Article from Deseret News, April 2, 1928

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Article Text

Midvale Bankers Deny Charges at for Clothilde in the interest radio publications Miss Grunsky an editor the and Mining Journal Three years Mr. Grunsky came Salt the principal speaker at the annual banquet of In his Monday the engineer described an cidents made year ago through Egypt, the countriest Holy land. Great going forward redeem this fertile tion of he said. and pressed gratification that engineers are taking the lead Legn Olson and D. Anderand cashier, respectively. the Midvale State bank pleaded not guilty Monday making false ments regarding the condition of bank. Pleas entered before City Judge H. Tanner, fixed April 11, date for prelimhearing Olson Anderson appeared without disclosures shortages in accounts men. the bank suspended business and was over by the state banking department which making an audit of the accounts. Preliminary examination of the accounts of the bank shortage of $74,000

2. April 9, 1929 The Salt Lake Tribune Salt Lake City, UT
Article from The Salt Lake Tribune, April 9, 1929

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Article Text

TRIAL OLSEN BEGINS WITH LONG DEBATE to Bank on Alleged mony Embezzlement. arguments of counsel admission evidence over marked the first day Monday of the Leon Olsen, former cashthe Midvale State bank, ier of charged specifically with embezzlement $1000. When Judge Oscar McConkie at o'clock adjourned court until Tuesday only three witnesses had been on the stand. Jurors selected Monday are George Baxter Joseph W. Flynn, William Aplin, Joseph Sellway A Avery. Clayton Valentine and Bagley Former County Commissioner Called to Witness Stand. After District Attorney Ray Van Cott told the jury what the state pects to reciting the story the after an alleged of approximately was the state bank E. Burgon was called to the witness stand. Burgon former county and director of the Midvale State bank when was closed. The district attorney asked the witness to relate all details of an amination made of the bank's books Counsel for the defense objected contending the witness should be lowed to tell only about the alleged embezzlement. The court $1000 sustained the defense. and the witexcused, declaring he knew nothing of the specific amount. Defense Counsel Stops. Additional Witness. Joseph M. Holt, another director started to tell of the entire shortage when he too, was blocked by defense counsel on the same grounds The district attorney insisted would like to argue the matter and the jurors were dismissed until o'clock. When the session was sumed Judge reversed decision and said the court would ad mit all bearing upon the shortage, if had any connection with the specific $1000. Bank Examiner Occupies Stand in Afternoon. Herbert bank who the books at the instance of the state bank examiner. the stand all afternoon $1000 referred to the complaint is alleged to have been withdrawn by Olsen from the deposit of Mrs. Drawn. who had an count of about in the bank. Trial of Anderson, former sistant cashier of the Midvale State facing similar probably will started is finished. the ter the Olsen case district attorney said.

3. March 17, 1930 Salt Lake Telegram Salt Lake City, UT
Article from Salt Lake Telegram, March 17, 1930

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Article Text

Bank Started by Burglary Rumor Rumors $17,000 postoffice robbery started the Midvale State bank Monday, according ports. depositor, hearing that the boxes had been broken postoffice night, hotfooted the bank demanded his money despite 000 assurances that the stolen was all canceled checks. Three youths, alleged to have looted the boxes, were their homes Midvale Monday by City Marshal Roy Steadman and being held for questioning Postal Inspector Dutton. LaDrew Bennett, 14, South street; John Eltz Jr., 16, of South Main street, and Albert Poulsen Jr., 64 Seventh avenue.