Carson Valley Bank (Carson City, NV)

Episode Information

Episode Type
Suspension → Closure
Start Date
November 1, 1932
Location
Carson City, Nevada (39.164, -119.767)
Bank Type
state
Routing Number
94-0033

Metadata

Episode ID
Bank ID
City ID
320863976
Model
gpt-5-mini
Short Digest

Notes

Bank was part of the Wingfield group and closed with that chain; later placed in receivership and paid a dividend while remaining defunct.

Events (5)
1. November 1, 1932 Suspension
Cause
Government Action
Cause Details
State business and banking holiday/moratorium declared (Lieutenant Governor Griswold) amid Wingfield group troubles.
Newspaper Excerpt
By proclamation, I have just declared a business and banking holiday to and including the twelfth day of November, 1932.
Source
newspapers
2. May 19, 1933 Other
Newspaper Excerpt
suits ... to determine the status of state funds on deposit in the Carson Valley Bank ... against various closed banks
Source
newspapers
3. February 9, 1934 Receivership
Newspaper Excerpt
The right of District Judge Clark J. Guild to appoint receivers for seven Nevada state banks... including the Carson Valley bank at Carson City, was upheld in a unanimous decision of the Nevada supreme court today.
Source
newspapers
4. May 17, 1934 Other
Newspaper Excerpt
Leo F. Schmidt, bank receiver, has announced that bids for the purchase of the Carson Valley Bank building in Carson City will be received up until May 19.
Source
newspapers
5. July 18, 1935 Other
Newspaper Excerpt
Checks totaling 208,500 will be deposited ... for depositors in the defunct Carson Valley bank. The sum represents 25 per cent of the bank's deposit liability.
Source
newspapers

Newspaper Articles (15)
1. November 1, 1932 Reno Gazette-Journal Reno, NV

Article Text

GROUP OF BANKS The Wingfield group of banks in Nevada, with combined deposits of about sixteen million dollars and capital of $1,975,000 include: Reno National Bank and Bank of Nevada Savings and Trust Company, with deposits of $7,600,000 and capital of $800,000; Riverside Bank of Reno, capital $50,000, deposits approximately $1,060,000; United Nevada Bank of Reno, capital $400,000, deposits approximately $1,800,000; Tonopah Banking Corporation, capital $50,000, deposits approximately $325,000; Virginia City Bank, capital $25,000, deposits approximately $200,000; Wells State Bank, capital $25,000, deposits approximately $85,000; Henderson Banking Company of Elko, capital $200,000, deposits approximately $1,650,000; Churchill County Bank of Fallon, capital $75,000, deposits approximately $750,000; Carson Valley Bank of Carson City, capital $125,000, deposits approximately $850,000; Bank of Sparks, capital $25,000, deposits approximately $730,000; Winnemucca First National Bank, capital $200,000, deposits approximately $2,000,000. LEGISLATIVE SESSION Reports were current this morning that the calling of a special session of the Nevada legislature will be discussed with Governor Balzar on his return to the state as a considerable part of the state's funds, as well as the funds of counties, school districts, municipalities and the university are on deposit in the Wingfield banks. The legislative session, however, if one is called would not be held until late this month and during the next twelve days the proposed reorganization of the Wingfield banks may be effected, it was pointed out. The terms of present members of the legislature, excepting hold-over senators expire on November 8 and if the legislature is called in special session its membership will consist of those elected next Tuesday and the hold-over senators. GRISWOLD'S STATEMENT Lieutenant Governor Griswold issued a statement in addition to the moratorium proclamation setting forth in detail his reasons for taking the action. The statement follows: "To the people of the state of Nevada: By proclamation, I have just declared a business and banking holiday to and including the twelfth day of November, 1932. My reason for so doing is the conviction that business, banks, bank depositors and the entire people of the state of Nevada will be best protected by this action. "While some of our banks are not to be considered as otherwise than sound in all particulars, those of our banking institutions which have particularly supported our agricultural interests are naturally most seriously affected by the collapse in prices of agricultural products, which occurred about three years ago. Only very slight recovery in such prices has been realized and in the meantime and before the price collapse, exceptionally adverse climatic conditions have further destroyed the ability of the livestock raisers and farmers to reduce their obligations to the banks. In fact, these banks, in the hope of carrying over to a period of better conditions, have been obliged to

2. May 20, 1933 Nevada State Journal Reno, NV

Article Text

Reno High School Students Receive Awards at Meeting The final assembly of the spring semester was held Wednesday at the Reno high school. Entertainment was furnished by the Three Arts club, in the form of a short three-act play and the members of the cast were Celia Lazerowitz, Robert Baum, Leo Doyle, Alice Sauer and Bill Martinez. After the play a minor activities award was presented Bill De Vore by Dramatics Director Don Harvey Bell in recognition of his work as stage manager for the past season. Short teasers of last night's senior one-act play were also presented. Coach Herb Foster presented the members of the basketball and track squads with their "R" awards. Randy Booth and Bob Kane received letters in both sports. They are also football letter men. Chet Humes, Johnny Falcioni, Lauritz Lund, John Williams, Bill Beecher, Bill Newman, Fred Vonsild and Sam Stark had the required playing time in basketball, while Ernest Rodriquez, Quido Pincolini and Harold Hull qualified in track. Following this, Major Carl Smith, U. S. A., presented members of the high school R. O. T. C. rifle team with their insignia. Those awarded "crossed rifles" were Ross Hall, Loren McCollum, Earl Hancock, Dick Nesbitt, Duane Collins, Ray Frazer, Manuel Hartor, Bill Whiting, Benjamin Moore and Ben Menke. Shields, significant of participation in national matches, were given Joe Borgognone, Eugene Grutt, Tomas Shone, Henry McCormick and Jim Hawkins. Hawkins was high score man of the year, but due to depleted financial conditions did not receive the usual medal. The assembly was concluded with the installing of the new student body president, Joe Williams, by the retiring chief, Russell Byington. Williams then installed the other newly elected officers, as follows: Bill Goodin, vice president; Lois Aldrich, secretary, and Eric Young, treasurer. Gavels were awarded by Principal Otis Vaughn to Herbert ("Spot") Ayers, Lynn Gerow and Russ Byington in recognition of their services as student body heads during the past two years. Three Reno Youths To Get Navy Degree Attaining high standing in their class, three Reno young men, Frank Brown, Theodore Tomamichel and Albert Edwards, will graduate from the Annapolis naval academy on June 1. They stood thirtieth, thirty-first and thirty-second in their class of several hundred. Brown and Tomamichel will receive their ensign's commissions immediately, but Edwards is now seriously ill in the hospital at the More Bank Suits Will Be Filed at Carson Next Week CARSON CITY, May 19.—Several suits somewhat similar to the one filed yesterday in the Ormsby county district court by the state to determine the status of state funds on deposit in the Carson Valley Bank will be filed next week against various closed banks, according to a statement of Gray Mashburn, attorney-general of Nevada, today. The purpose of the suits is to have a judicial determination of whether the deposits of state funds constitute preferred claims in view of the indefiniteness of the 1928 state depositary act and the fact that the Nevada supreme court has never passed upon the question and the decisions of the courts of other states are quite divided on the issue. The 1928 state depositary act contains nothing to guide the officers of the state as to whether the deposits are preferred or not preferred, so the only way to have the question settled is for the attorney-general and other state officers to take the position that the deposits are preferred and for the state superintendent of banks to take the position that the deposits are not preferred. By assuming these divergent viewpoints, a friendly suit over the matter will expedite the final determination of the question by the supreme court. Many years ago a suit was instituted by Esmeralda county against Frank L. Wildes, receiver of the State Bank & Trust Company, seeking to have the county funds on deposit in the bank declared preferred claims with a right of preference in payment. The district court held that the county deposits were preferred and Wildes appealed to the supreme court from that decision. M. A. Diskin, then district attorney of Esmeralda county, moved to dismiss the appeal on the ground that the receiver was not an interested party and was not, therefore, entitled to appeal the case. Taking that position and holding that the bank receiver held a neutral position as between preferred claimants and general claimants and could not assume a position favoring either one or the other, the supreme court dismissed the appeal. It did not, however, pass on the question of preference of county deposits, and so the question of the prior right of public funds in insolvent banks has never been decided by the supreme court of Nevada. In commenting on the matter today, Mashburn stated "This is simply a friendly suit to have the question of whether state funds deposited in depositary banks of this state under the 1928 depositary act are preferred. The position of the attorney-general and state superintendent of banks in this suit is not to be taken as representing the personal views of either of them, but is simply to determine the question of preference as to such funds."

3. May 20, 1933 Nevada State Journal Reno, NV

Article Text

More Bank Suits Will Be Filed at Carson Next Week CARSON CITY, May 19.-Several suits somewhat similar to the one filed yesterday in the Ormsby county district court by the state to determine the status of state funds on deposit in the Carson Valley Bank will be filed next week against various closed banks, according to a statement of Gray Mashburn, attorney-general of Nevada, today. The purpose of the suits is to have judicial determination of whether the deposits of state funds constitute preferred claims in view of the indefinitness of the 1928 state depositary act and the fact that the Nevada supreme court has never passed upon the question and the decisions of the courts of other states are quite divided on the issue. The 1928 state depositary act contains nothing to guide the officers of the state as to whether the deposits are preferred or not preferred, so the only way to have the question ity. settled is for the attorney general and other state officers to take the position that the deposits are preferred and for the state superintendent of banks to take the position that the deposits are not preferred. By assuming these divergent viewpoints. a friendly suit over the matter will expedite the final determination of the question by the supreme court. Many years ago a suit was instituted by Esmeralda county against Frank L. Wildes, receiver of the State Bank & Trust Company, seeking to have the county funds on deposit in the bank declared preferred claims with right of preference in payment. The district court held that the county deposits were preferred and Wildes appealed to the supreme court from that decision. M. A. Diskin, then district attorney of Esmeralda county. moved to dismiss the appeal on the ground that the receiver was not an interested party and was not, therefore, entitled to appeal the case. Taking that position and holding that the bank receiver held neutral position as between preferred claimants and general claimants and could not assume a position favoring either one or the other, the supreme court dismissed the appeal: It did not, however, pass on the question of preference of county deposits, and so the question of the prior right of public funds in insolvent banks has never been decided by the supreme court No. of Nevada. In commenting on the matter today, Mashburn stated "This is simply a friendly suit to have the question of whether state funds deposited in depositary banks of this state under the 1928 depositary act are preferred. The position of the attorney-general and state superintendent of banks in this suit is not to be taken as representing the personal views of either of them. but is simply to determine the question of preference as to such funds."

4. February 10, 1934 The Salt Lake Tribune Salt Lake City, UT

Article Text

Bank Receiver Action Upheld CARSON CITY, Nev., Feb. 9 (JP)The right of District Judge Clark J. Guild to appoint receivers for seven Neveda state banks, all of which were members of the defunct George Wing. field banking group, was upheld in a unanimous decision of the Nevada supreme court today. Institutions affected by the ruling are the Bank of Nevada Savings and Trust company, the United Nevada bank and the Riverside bank, all of Reno; the Bank of Sparks, the Carson Valley bank at Carson City, the Virginia City bank and the Tonopah Banking corporation.

5. May 17, 1934 Nevada State Journal Reno, NV

Article Text

Building for Sale Leo F. Schmidt, bank receiver, has announced that bids for the purchase of the Carson Valley Bank building in Carson City will be received up until May 19. The building is a two story structure and is located at one of the principal corners in the capital city.

6. May 17, 1934 Nevada State Journal Reno, NV

Article Text

Building for Sale Leo F. Schmidt, bank receiver, has announced that bids for the purchase of the Carson Valley Bank building in Carson City will be received up until May 19. The building is a two story structure and is located at one of the principal corners in the capital city.

7. June 22, 1934 Nevada State Journal Reno, NV

Article Text

Preference In Opens Ormsby CARSON CITY, Nev., June With the assertion that unless deposit of $174,747.64 in the closed Carson Valley Bank made preference claim, will be unable to meet its obligations, the Nevada industrial commission's suit against the bank opened before Judge Clark Guild this morning. George Sanford and W. Mathews are attorneys for the plaintiff and stated that $55,000 had been on deposit in the bank since 1917. Sam Platt and John Sinai, representing the defendant. claim that the money was deposited wtih provision for preference and, no therefore, the commission has claim. The commission recently filed similar suit against Bank Receiver Leo Schmitt asking preference for $10,000 deposit.

8. October 6, 1934 Nevada State Journal Reno, NV

Article Text

SALARY COSTS CUT; DEBTORS FACING SUITS Lax Borrowers Who Do Not Cooperate Hit by Administrator The small percentage of persons who are indebted to the seven closed state banks and who, in the opinion of Leo F. Schmitt, receiver for the institutions, are not making the proper effort to liquidate such indebtedness may, in the near future, find such indebtedness reduced to judgment with a levy to issue on any of their assets. This suggestion was contained in a letter written by Schmitt to Judge Clark J. Guild, and which accompanied his quarterly report of the seven banks, Riverside bank of Reno, United Nevada bank of Reno, Bank of Nevada Savings and Trust company, Reno; Bank of Sparks, Carson Valley bank, Virginia City bank and the Tonopah Banking corporation.

9. October 11, 1934 Nevada State Journal Reno, NV

Article Text

Carson Dividend Must Await Suit A $169,678 dividend to Carson Valley bank depositors hangs in the balance while the Nevada industrial commission suit for preference is resumed in Carson City today. Bank Receiver Leo F. Schmitt said last night that he could release a 20 per cent dividend if his attorneys win the suit and the industrial commission is denied its petition to have its $172,744.19 deposit declared a preferred claim. The suit partially has been heard. More evidence will be taken today. The industrial commission could appeal the decision and create further delay of the dividend if it loses its case. Schmitt said he expected the matter to be determined within a few days.

10. October 11, 1934 Nevada State Journal Reno, NV

Article Text

Carson Dividend Must Await Suit A $169,678 dividend to Carson Valley bank depositors hangs in the balance while the Nevada industrial commission suit for preference is resumed in Carson City today. Bank Receiver Leo F. Schmitt said last night that he could release a 20 per cent dividend if his attorneys win the suit and the in, dustrial commission is denied its petition to have its $172,744. 19 deposit declared a preferred claim. The suit partially has been heard More evidence will be taken today The industrial commission could appeal the decision and create further delay of the dividend if it loses its case. Schmitt said he expected the matter to be determined within a few days.

11. January 27, 1935 Nevada State Journal Reno, NV

Article Text

RFC Loan to Reno National Is Called Depositors' Blow Had the Reconstruction Finance corporation not loaned money to the Reno National bank in 1932 depositors in at least four closed banks would have benefitted, Leo F. Schmitt, receiver of the bank, testified in the federal court last week. The testimony was taken in Schmitt's suit against the RFC for an accounting and judgment for $188,000. The suit was brought by Schmitt in behalf of five of the closed banks that hold split loans, the security for which was pledged the RFC for part of the $3,500,000 loan made to the bank. The receiver testified that subordination agreements executed by the officers of the banks were unlawful. He held that the banks received nothing in return for subordinating their notes in order to make it possible for the Reno National to borrow the money and, therefore the RFC has no legal right to hold the paper and deprive the other banks of their equity in it. In support of his theory he testified that the banks gained nothing from the RFC loans. He stated that as a result of the loans to the Reno National, the action of the Reno National in transferring bad paper to several of the other banks, and the transferring of cash from certain banks to the Reno National, there were net losses or gains between March and November, 1932, to the depositors of the several closed banks. These banks follow: Bank of Nevada Savings and Trust company, loss $1,044,767.30. Tonopah Banking corporation, loss $86,531.51. Carson Valley Bank, loss $134,142.58.

12. July 11, 1935 The Sacramento Bee Sacramento, CA

Article Text

NEVADA LOSES PREFERENTIAL DEPOSIT CLAIM Way Is Cleared To Pay Dividend From Closed Carson Valley Bank CARSON CITY (Nev.), July 11. The way was cleared yesterday for a dividend to depositors of the Carson Valley Bank, a closed Wingfield institution, when the state supreme court held that the Nevada Industrial Commission is not entitled to preference in its deposit of $174,747.74. The supreme court upheld a decision of District Judge Clark J. Guild. The bank receiver has on hand $241,000, which will be available for a 25 per cent dividend immedi-

13. July 16, 1935 Nevada State Journal Reno, NV

Article Text

Governor Richard Kirman attempted to open the way for the payment of a 25 per cent dividend from the Carson Valley bank when he requested the state industrial commission to drop its litigation seeking to have the commission's funds in the bank declared a preferred deposit. Leo F. Schmitt, bank receiver, said last week that the dividend checks will be in the mail 24 hours after the commission drops its case. It is believed the commission will follow Governor Kirman's advice and allow the payment to go through. The state supreme court ruled early last week that the commission's deposit of $175,550 is no different from other deposits and is not entitled to preferment. Attorneys indicated at that time that they might ask a new trial. The Carson Valley Bank has never paid a dividend since its funds were tied up by the litigation shortly after it collapsed with the Wingfield banking chain. sembled so that the district administrators might ask questions and coordinate the entire setup in their minds. Ross described to them how all the federal agencies, including the WPA, PWA, CCC and treasury department will work together in the future, cooperating in providing labor for all the state's unemployed. The exact amount that will be allotted to the Nevada Works Progress division has not been announced and the funds will be apportioned according to the number of people who are employed.

14. July 18, 1935 Nevada State Journal Reno, NV

Article Text

CARSON VALLEY BANK DIVIDEND WILL BE PAID Suit Is Withdrawn by State Commission Yesterday Checks totaling 208,500 will be deposited at 10:30 a. m. today in the Carson City postoffice for depositors in the defunct Carson Valley bank. The sum represents 25 per cent of the bank's deposit liability and is the first dividend the institution has paid since it closed with the Wingfield chain almost three years ago.

15. July 18, 1935 Nevada State Journal Reno, NV

Article Text

Suit Is Withdrawn by State Commission Yesterday Checks totaling 208,500 will be deposited at 10:30 a. m. today in the Carson City postoffice for depositors in the defunct Carson Valley bank. The sum represents 25 per cent of the bank's deposit liability and is the first dividend the institution has paid since it closed with the Wingfield chain almost three years ago.