803. Bank of Healdsburg (Healdsburg, CA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
December 1, 1908*
Location
Healdsburg, California (38.610, -122.869)

Metadata

Model
gpt-5-mini
Short Digest
a3e4c349

Response Measures

None

Description

Cashier Edward (Ed) Rowland admitted large embezzlement (~$100–120k). The bank suspended payment (briefly) but directors and family covered losses and the Farmers' & Merchants/Mechanics bank took over operations; business was resumed. No depositor run is reported — one article explicitly says a purchaser's statement prevented a run.

Events (2)
1. December 1, 1908* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Shortage/embezzlement by cashier Edward S. Rowland (nearly $100,000–$120,000) discovered on examination, prompting suspension of payments until directors and family made good losses and a buyer took over the bank's business.
Newspaper Excerpt
the bank suspended payment Saturday afternoon. Before the following Monday a settlement had been made
Source
newspapers
2. December 8, 1908 Other
Newspaper Excerpt
Rowland ... confessed last Friday that he used the capital and surplus of the bank for mining investments ... The Farmers' and Merchant's bank which had been arranging to buy out the Bank of Healdsburg had consumated the deal and the statement of the purchasers that all depositors would be paid in full on application prevented a run.
Source
newspapers

Newspaper Articles (2)
1. December 8, 1908 Daily Capital Journal Salem, OR
Article from Daily Capital Journal, December 8, 1908

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Article Text

GASHIER WILL MAKE REFUND (United Press Leased Wire.) Healdsburg. Calif., Dec. 8.- It was announced today that a financial settlement by Cashier Ed Rowland of the Bank of Healdsburg, who is reported to have confessed last Friday that he used the capiital and surplus of the bank for mining investments, has been made with the stockholders of the institution. Rowland is at present city treasurer and has held that position for several years. His settlement wit the bank officials was made without outside aid and he was asked to retain his position as cashier until the bank's affairs are settled. On further examination of the books it was ascertained that $100;000 he is reported to have used in his speculations was part of the capital and surplus of the bank. The depositors money was not taken. The Farmers' and Merchant's bank which had been arranging to buy out the Bank of Healdsburg had consumated the deal and the state. ment of the purchasers that all depositors would be pai din full on application prevented a run.

2. April 11, 1909 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, April 11, 1909

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Article Text

FORMER CASHIER IS FOUND GUILTY Rowland Convicted of Stealing From Bank of Healdsburg SANTA ROSA, April 10. - The jury in the case of Edward S. Rowland, charged with embezzlement in connection with the failure of the Bank of Healdsburg last winter, returned a verdict of guilty late this afternoon. The case has caused much interest here, where the former cashier was well known and popular prior to his downfall. The first Intimation of anything being wrong at the bank was when Commissioner Watson arrived to make the usual investigation. Cashier Rowland called him into the private office and admitted there was a shortage of nearly $120,000 for which he was personally responsible. A meeting of the directors was called, and the bank suspended payment Saturday afternoon. Before the following Monday a settlement had been made, the directors making good half the loss and the aged father of the defaulting cashier the balance. The bank was taken over by the Farmers' and Mechanes' bank of Healdsburg and business was resumed. No action was taken toward the prosecution of the embezzler by the bank officials, but later the grand jury returned an indictment and the case went to trial before Judge Seawell and a jury three weeks ago. Owing to illness among the jurors and attorneys the case was delayed an entire week after the taking of testimony had been begun. District Attorney Clarence F. Lea and Deputy G. W. Hoyle worked hard on the case, and the verdict is considered a victory for them. Former Congressman Thomas J. Geary made a hard fight to save his client and probably will appeal the case.