The San Francisco call., 1905-05-24
Head of the Goldfield Bank
and Attorney F. L. Burton
Are Taken Into Custody by
Detectives at Ferry Depot
LAWYER DECLARES
BOTH ARE INNOCENT
Suspected Men Maintain
That No Crime Has Been
Committed and That All
Debts Will Be Settled

Jackson b. Young, president OF the
Goldheld Bank and Trust Company,
and Francis l.. Burton, attorney for
Young, were arrested last evening by
Detectives Freel and Bunner as they
were about to board n broadgauge fer
ry-bOat. The arrests were made at the
instance of Sheriff j. F. Bradley of Es-
nieralda County, New. who holds war
rants charging them with embezzle-
ment. Both men were returned to the
City Prison and the Goldfeld authorf-
ties communicated with.
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.
1t was Burtons intention to apply for
receiver Immediately upon his arrival
home and to straighten out the affairs
Of the bank as far as possible. The pris-
oners assert that the assets of the insfi-
tuition are sufficient to cover it's liabilities
and that the doors will open again very
soon. To the action of Cashier j. r.
Boals in making an attempt to escape
from the mining district they attribute
hend nothing serious and hope TO satisfy
the creditors. In explaining the banks
embarrassment Burton said:
THE bank was sound financially until
three weeks ago, when 5000 people rushed
for the newly opened districts around
Ida, Kawick and Bullfrog. Many of
them were depositors in the Goldfield
Bank. They took their money with them,
they needed 1T in making locations
and purchasing property. In this manner
about $4,000 was drawn out in few
days and our funds began to run at low
tide 1t can be easily understood that
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.
YOUNG WAS HONEST.
Matters looked serious last week and
Mr.. Young came to this city to ne
gotiate a loan with the First National
Bank of San Francisco. He brought some
SIS 900 in securities with him and when
these were presented to Vice President
Lynch of the local bank no question was
raised as to their validity. Negotiations
for a large loan that would have put the
bank on its feet would have been COM
pleted Monday had not Boals closed the
bank and left the town When l 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. The
other bankers in the town had agreed
to help him out
.There remained In the bank when
Young departed the previous Thursday
assets to the extent of $4,000 and pos
s,bly more I suppose they can be pro-
duced now The assets comprise little
mining stock. Notes of reputable busi-
ness men, properly indorsed, compose the
bulk Most of these are not yet due, but
payment on many of them will be made
at any time. We have plenty of backing
and have no fear as to the outcome.
When arrive In Nevada we shall place
all the assets in the hands of a receiver
and creditors will be paid. 1 do not think
the liabilities amount TO more than
$40 600 but ON this figure l would not be
sure as l have not had time to examine
the books We can produce assets to the
extent of $50 0o9 and full payment is al
most assured.
A CONDITIONAL SALE.
"On last Thursday Young sold out his
interest to F. f. Davis, who was one of
the directors. The sale was conditional
and Young will make no effort to shirk
the responsibility of the debts. He is a
man of considerable wealth and will see
that creditors will be paid dollar for dol
lar He was married to a Los Angeles
lady a few weeks ago and had just re-
turned from his honeymoon when the
rush to the outlying and newly discovered
districts came. He Immediately took
steps to gather funds and it was for this
purpose that he came to San Francisco.
We would have taken up the necessary
cash, but when Boals closed the bank no
national banks could deal with US.
Il have no connection with the bank
and am not even attorney for 1t. l SIM
ply represent Mr.. Young in his personal
affairs and do not understand how have
been dragged into this matter. The two
notes referred to in the dispatches were
never cashed and were given by mining
companies in payment for legal services.
1t may be that 1 am charged because
overdrew my account to the extent OF
s1lO0. This can readily be made good, as
1t was an error by Boals, and the money
should have been charged to other per-
sons. l have $4,000 on deposit in the in
stitution and am not worrying about 1t. .