Goldfield Bank & Trust Company (Goldfield, NV)

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Wildcat Mining Camp Institution With No Assets to Speak of Suspends Operations. BIG INSTITUTION GOES TO WALL Merchants' Trust Company With Capital of $100,000 Fails For $2,000,000. GOLDFIELD, Nev., May 23. - The Goldfield Bank & Trust company, with liabilities of $78,227. has failed. The assets so far discovered are $4,800 in notees, $16 in vaults, and a five-dollar gold piece on the floor under the counter. The most disorganized state of affairs seems to exist in the books of the bank. President J. B. Young of the bank is in San Francisco, where it is stated he is endeavoring to get assistance with the bank's collateral. Goldfield is the new mining town in the heart of the newly discovered gold country of southwestern Nevada.

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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,

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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.

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GOLDFIELD BANK AND TRUST CO

Warrants Out for the Arrest of The President and Cashier And a Promoter. CHARGED WITH EMBEZZLEMENT Stockholders' Committee Finds That No Balance Had Been Taken in Bank for Six Weeks, Goldfield, Nev., May 23.-The report of the committee appointed by the stockholders shows an unfavorable condition of affairs in connection with the Goldfield Bank & Trust company, which was closed yesterday. Warrants have been issued and are in the hands of Sheriff Bradley for the arreat of J. B. Young, president, and James R. Boal, cushier, charged with embezzlement, and for Francis A. Burton. a promoter, charged with obtaining money under false pretenses. Boal was not arrested in Hawthorne, as reported, yesterday. All day long the streets have been crowded with depositors angry and exeited. Mrs. Burton, a confirmed invalid. denies absolutely any connection of her husband with the bank other than AS a depositor. Depositors have been found today who placed approximately $100 in the bank Saturday, and the examination Monday showed out $16.05 innickels and dimes and a $5 gold piece, The stockholders' committee finds that no balance had been taken in the bank for six weeks. On May 18 funds were removed aggregating $43,500 with absolutely nothing to show for it. Of the bank's capitalization only $17,721 had been paid up, of which $13,283 was invested in the premises, with $15,000 still owing on the same. and $6,000 expenses. Francis A. Burton has an open debit of $2,157, a promissory note for $2,000, another for $1,500, a total of $6,657: then two checks for $5,000 each on which $7,000 had been advanced, making Burton personally indebted in the sum of $12,657. Assets are overdrafts for $10,662. Bills receivable, $4,812.50; real estate, $13,283.65; cash, $21.05; missing $78,247.39. The liabilities are: Due depositors, $78,662.72: capital stock. $17,721; due banks, $10,641: A total of $107,026. San Francisco, May 23,-J. B. Young, president of the Goldfield Bank & Trust company, and Francis A. Burton were arrested in this city tonight.

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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.

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RECEIVER APPOINTED FOR FAILED GOLDFIELD BANK Goldfield. Nev., May 25.-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. F. T. Burton, who is under arrest in San Francisco. insists that the bank's securities are ample to protect liabilities.

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RECEIVER APPOINTED Goldfield

Ner. May 2-1 Hirschfeld has been appointed receiver of the His Goldfield Beak and Treat Co. beads have been placed at $380,000. J. H. Beal. cookier of the bank, forwism a warfast - been I been r.L. Derten, who breaked Francisco arrose

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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."

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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.

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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.

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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.

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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.

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MIMS-SUTRO CO., INC.

Market Letter and Weekly Review of Stocks in the Districts.

As we predicted in our market letter of last week Tonopah stocks as well as Goldfield stocks, particularly the latter, have declined. The three distinct reasons which we considered instrumental in bringing about this decline, as we said before, are local, but another extremely disturbing factor, as far as Goldfield is concerned, is the failure of the Goldfield Bank & Trust Company which caught many small depositors. As Goldfield has many people who speculate in stocks on a small scale it naturally had a tendency to compel them to dispose of their stocks at almost any price in order to meet their daily expenses, for which the average speculator at all times has a little money set aside in some bank, which of course was wiped out by the failure of the above-mentioned bank. We confidently expect, however, that within 30 or 60 days, when the Tonopah Banking Corporation, the new bank headed by Senator Nixon, opens its doors for business, there will be plenty of money to loan on the better class of Tonopah and Goldfield stocks, and to responsible parties so as to again create plenty of money to speculate in stocks. We therefore think the market a buy on any reaction. By about August 1st the broad gauge will be running into Tonopah, larger shipments will follow, and everything taken into consideration, the market must and will do better.

Tonopah mining company has held its own. The directors' report just issued is extremely satisfactory, and from what we know about the mine the stock will be very much higher. Tonopah Midway, in our opinion, is extremely cheap. Another strike has been made on this property and we are more bullish than ever on this particular stock. They are shipping ore regularly and a dividend will probably be declared before the end of the year.

Tonopah Belmont has also been in active demand in the East, and from information that we have we know for a positive fact that one hundred thousand shares of their treasury stock has been sold at $1.40 net, thus giving the company ample funds in the treasury to actively develop the mine, and making it possible to pay a dividend.

Jim Butler has suffered with the rest. We are positive that ore is being shipped from this mine, and as we have stated in our letters before, the control has evidently been obtained by the Tonopah mining company, and now that they have it do not care where the stock goes to. On the location and on the showing in the mine, it should sell above a dollar.

Montana Tonopah holds strong around $3.05. The mine is now in better shape than ever before. The company has a large cash reserve, is making regular shipments and a dividend is only a question of time.

The same may be said of Tonopah Extension which is held firm at $5.00. The strong directorate and financial backing that this company has make it one of the best purchases in Tonopah stocks that the camp affords.

In fact Golden Anchor and other properties controlled by the Schwab syndicate are well protected and are always good purchases.

The treasury stock of the Montana Pittsburg Extension mining company, which adjoins the Golden Anchor and Red Rock and other of the McKane properties, is extremely cheap at 25 cents a share. We still have a few shares for sale at this figure and we confidently expect to place one large block in very strong hands at 30 cents. If this deal is put through, as it has every indication that it will, there will be no more treasury stock to be had. Send in your orders and take on some of this exceptionally cheap stock.

West end, as we predicted, has made quite a rise. Some very good ore was struck a few days since and we firmly believe this mine will be a shipper in a very short while.

North Star after selling as high as 75 cents again reacted to 60 cents, It looks as if North Star at this figure is a purchase. The location is excellent and work is going to be started at once. It is an easy stock to trade in, as large blocks can readly be sold and the support the stock has in the open market is one of the best indications that the property has merit.

It is extremely hard to guage the market from week to week, but we want to impress our clients of this fact that we are very bullish on all standard Tonopah and Goldfield stocks.

The latest report from Tonopah Gold Mountain is better than ever. The company is now employing some 15 men and we firmly believe that shipments are only a question of a few weeks. The tunnels they have run show up excellent ore bodies, some of the rock assaying as high as $300.

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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.

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CREDITORS MAKE KICK

At a meeting of the creditors of the defunct Goldfield Bank and Trust company, held in the office of Williams & Colburn Monday evening, Receiver Hirshfeld of that institution was severely censured. Allegations were made to the effect that he is charging several thousand dollars too much for the work of erecting the building owned by the suspended banking firm, utilizing his position as secretary of the Continental Construction company, the contracting firm, to further that end; other allegations equally serious are made, including an assertion to the egect that as assistant cashier of the State Bank and Trust company, he is renting out quarters in the said building to the latter concern at $50 per month, which the creditors consider a ridiculously low figure. Steps were also taken at the meeting for the formarding of a petition to Judge Murphy praying for an injunction to stay the lien on the building.

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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,

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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. Goldneld 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,

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Goldfield Banker Convicted.

J. B. Young, President of the defunct Goldfield Bank and Trust Company, at his second trial at Hawthorne, Esmeralda County, was convicted Monday by a jury that was out but 40 minutes. Young was overcome by the shock as he confidently expected that he would be able to clear himself of the three indictments brought against him. He is now in jail 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. He was in charge of the bank at the time of its disaster but claims that he acted solely under orders from Young and his associates and was in no wise responsible. 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 $4.50 in the vault and the outstanding liabilities amounted to over $70,000.

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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.

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JUSTICE AT HAWTHORNE Boal Is Acquitted and Young Granted a New Trial It took twelve wise men of Esmeralda county just thirty minutes to decide that, "extenuating circumstances" demanded the acquittal of J. R. Boal, cashier of the defunct Goldfield Bank & Trust company. Boal was recently on trial in the district court at Hawthorne on charge of embezzlement and the evidence brought out was anything but favorable to the accused. However, as his friends had made good $20,000 of the shortage, the jury decided that justice would be served by turning him loose. J. B. Young, his partner, and president of the suspended institution, did not receive the same consideration at the hands of the jury, probably due to the fact that no one came forward to make good his pilferings. There being, "no extennating circumstances" in his case he was adjudged guilty. He still has a chance, however, as Judge Murphy has ordered a re-trial owing to an error in his charge to the jury. It seems that Nevada has no statute governing banking institutions, but Judge Murphy not being conversant with this deviation from the usual custom of states, in charging the jury instructed the members to bring in a verdiet of guilty if they were satisfied that Young had received deposits after he knew the bank was in an insolvent condition. On being advised of his error Judge Murphy, in justice to himself, had no other alternative than the ordering of a new trial.

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Nevada Editor Kills Noted Sharper Advises Camp to Run Him Out and Shoots Him When He' Objects to Article TONOPAH. Nev., Dec. 10.--Francis L. Burton, notorious bank wrecker, bunko man and wildcat promotor, ran his last bluff in Mina at noon today and was called by J. Holman Buck, editor, of the Rawhide Rustler and several other southern Nevada publications. Burton had threatened to kill Buck on sight. and today the men met in front of the Palace hotel and Buck was quicker on the trigger than the man who had threatened to take his life. Buck put a load of buckshot through his head killing him/instantly and narrowly escaping killing Will Edwards, with whom Burton was taking at the time. Burton had recently been run out of the new and hustling camp of Rawhide, and Buck paid his respects to him in the Rustler; he also stated in the paper that he should be run out of Mina, where Burton had been making his headquarters. Burton had made a threat that he would kill the editor on sight. Buck got back to Mina this morning and was told of Burton's threats. He immediately armed himself with a shotgun and went in quest of his/man. Turning a corner Buck came upon Burton standing in front of the Palace hotel talking to Will Edwards, and getting a bead on him told him to throw up his hands, at the same time shouting to Edwards to get away. Edwards moved aside as fast as he could and Burton drew a gun. Buck fired and almost the entire charge of buckshot entered Burton's head, tearing it almost from his shoulders. Edwards had a narrow escape, but was fortunate enough to miss the rain of bullets. Buck immediately gave himself up and will be held until the inquest which will be held tomorrow. Burton came to southern Nevada in the early part of 1905. In the early days of Goldfield he established the Goldfield bank and. trust company and then proceeded to wreck it. which he most successfully accomplished. It was simply a case of smooth thievery. Burton located a number of claims in Lida and opened up a townsite, which he proceeded to exploit through the papers, paying the same with the money of the depositors in the bank. He and the rest of his crowd disappeared, leaving a shortage of $78,000 and only $21.05 in the bank. Burton was captured in San Francisco and taken back to Goldfield, but there was no law at that time in this state for the crime. Burton had a previous penitentiary record, and while in prison he succeeded in getting $15,000 out of the warden to invest in a mythical mine in Colorado. He had some reputation as a gun fighter.

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RECEIVER OF GOLDFIELD BANK IS INDICTED (Special to the Bonanza.) GOLDFIELD, June 1.-It became known tonight that one of the secret indictments returned by the Esmeralda county grand jury several days ago, called for the arrest of I. Hirshfeld, formerly receiver of the Goldfield Bank and Trust company, wheich suspended operations on October 16, 1906. Hirshfeld, after his appointment, paid one dividend of 20 per cent, and according to the indictment, skipped out, leaving the sum of $17,586 unaccounted for. He is charged with embezzlement and was arrested today in San Francisco by Chief of Police Cook of that city, 1 upon telegraphic instructions from the sheriff's office here. Hirshfeld, after paying the first dividend, made no further report, although he was cited for contempt by the court several times, but each time he was out of the jurisdiction of the court and managed to evade making his appearance. He is now interested in oil lands near Bakersfield. Immediately after his arrest he a started habeas corpus proceedings to secure his release and will have a r hearing in the San Francisco court a Thursday. When the indictment was n returned Judge Somers fixed the t bond at $20,000. Under Sheriff Mike Cahalan leaves n a this morning for Carson to secure the necessary extradition papers and a then will continue on to San Francisco.

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former receiver of the defunct Goldfield Bank and Trust company of Goldfield, Nevada, under arrest late last night at his room in the St. Francis hotel.

The telegram stated that Hirschfield was wanted for felony and embezzlement. A deputy sheriff is now enroute from Goldfield to take Hirschfield back.