Las Vegas age. [volume] (Las Vegas, Nev.) 1905-1947, 1927-08-20
Resume of Case

formerly cashier of the Carson
Valley Bank, were placed under
arrest, bonds being fixed at $780,
600 The arrest was made May z.
Clapp entered a plea OF guilty
and was sentenced to not less
than five nor more than Is years
in the state prison, where he is
serving his term.
The Ormsby county grand jury
returned seven indictments a
gainst the two The state elected
to try the defendants under
Indictment No. l first and it was
so ordered by the court
Later in the attempt to have
the bail reduced from 100000
after Indictment habeas corpus
proceedings in behalf Of Malley
were instituted in the supreme
court. The matter was heard hut
the supreme court denied the ap-
plication and ordered the habeas
corpus proceedings dismissed.
The indictments were attacked
by the attorneys for Malley and
Cole, the members of the grand
jury were brought into court and
questioned about alleged bias,
but all objections uere overruled
by Judge Ballard, and on June
twenty-first the case was set for
trial on August fifteenth.
The original complaint against
Malley, Cole and Clapp was Sign
ed by Governor Balzar The
complaint was prepared by At
torney NJ A. Diskin, following
conferences with District Attor-
ney John M. Chartz of Ormsby
county and District Attorney Les
ter d. Summerfield of Washoe
county. Within a week Lester d.
Sumerfield and N. j. Barry, both
of Reno, were named as special
prosecutors in the case and they
were appointed as deputies by
the attorney general. Not only
are they to assist in the prose
cution, but they are also to press
the suits for recovery of the
amount Of the alleged shortage
in the state treasury. The prose
cution of the original charges is
of course brought through the
office of district attorney ChartZ.
The day proceeding the arrest
of Malley Cole and Clapp, the
company which furnished Malley
his bond as state treasurer, not
flied him of withdrawal as surety
Governor BalZar announced his
intention of appointing George
B. Russell, registrar and receiver
of the U. S. Land Office in Elko
to the office of treasurer to sue
ceed Malley. The land office de-
partment in Washington, ID. c..
consented to relieve Russell from
duty at Elko for the remaining
few weeks of his term in that
office. Russell was appointed
state treasurer. and as Malley
failed to file new official bond in
the sum of 100000 the office
was declared vacant and after
careful checking by state officials
was surrendered to Russell Un-
til he turned the keys and the
combination over to Russell, NAL
ley spent every week day in the
treasurer's office in custody of
Sheriff Stern.
For a few wekes the state
treasurer's office did not function
to the extent of paying warrants
In fact warrants were not issued
by the state controller until there
was sufficient cash in the hands
of the state treasurer to pay the
current bills.
Following the Arrest of Malley,
Cole and Clapp and the disclO-
sure that the Carson Valley Bank
had no record of the three cash
ier's checks of date December 81,
1926 and amounting to $516,322.16,
carried as cash by Treasurer Nal
ley, but that the banks books
showed that cashiers checks of
the corresponding numbers had
been issued in the names of three
different persons and in amounts
aggregating $4!55. there was much
discussion about financing the