Las Vegas age. [volume] (Las Vegas, Nev.) 1905-1947, 1927-12-03
W|NGF|ELD SUGGESTS
COMPROMISE OF SUIT
Complicated Financial MixupI
May Be Considered by Spe-
cial Legislative Session if
Called.

A letter written by George
Wingfield to Governor Balzar car
ries the suggestion that the legis-
lature, IL a special session is call
ed, shall be permitted to consider
a compromise of the suits now
pending between the State and
the Carson Valley Bank arising
out of the defalcation of $685.
322. from the state treasury with
the connivance of the bank cash
ier.
The letter follows:
"Hon. Fred B. Balzar
Governor of Nevada,
Carson City. Nevada.
My dear Governor:
you now have under consider
alton the question of determining
whether or not the existing affairs
of the State justify your calling a
special session Of the Nevada leg
islature.
"In the event that you decide to
do so, l respectfully suggest that
you include within your call and
message, the proposition of per-
mitting the legislature to consider
the claim of the State of Nevada
against the Carson Valley Bank
for $516,OO0.00, which is now the
basis of an action pending in the
courts of Oimsby county, and the
claims which the State may have
against the bondsmen of the form
er State Treasurer These claims,
as you know have grown of
the embezzlement of state funds
by two officials of the State of
Nevada and the cashier of the
Carson Valley Bank.
"At least a major part of the
claim of the State OF Nevada
against the Carson Valley Bank,
growing out of this embezzle-
ment, is unquestionably based up
on purely technical grounds. The
bank as an institution was alb
solutely innocent of any wrong
doing or misconduct. The State
of Nevada stands in the same
position. We have, therefore, two
innocent parties the victims of the
criminal acts Of their servants.
"The State has asserted that
the bank should pay three cash
iers checks, aggregating $4,000,
which were admittedly issued
fraudulently and without cOnsid-
Grafton by the banks cashier, and
at the same time takes the posi-
ton that it should not pay a fraud
ulent warrant for $4,000 issued
by the then State Controller. The
State is insisting upon enforcing
a technical liability against the
bank, and at the same tihe asserts
it's sovereign immunity as a de-
fense against the warrant, not
withlstanding that the warrant was
a part of the same transaction.
"a protraction of this contro-
versy is detrimental to the State
and the business of the State, is
not to the best interest of either
party, and is one which should be
amicably settled. Under the pres
ent state of the law, the parties
are unable to arrive at any fair
settlement of this matter on ac-
count of the State of Nevada not
State were private person there
would be no difficulty in arrang-
ing for a discussion of this matter,
to the end that some settlement,
that would be fair to both sides,
would be made. AS | aim inform
ed, however, the only method by
which consideration can be given
for the settlement of this matter,
so far as the State of Nevada is
its people. speaking through their
senators and assemblymen, at a
session Of the Nevada legislature.
''In suggesting settlement Of
this litigation, / desire to call your
attention to the fact that the
major portion of any loss which
may be sustaiend by the Carson
Valley Bank in the event that the
State is successful in it's claims
must of necessity fall upon me
personally. You are aware that
the total capital and surplus of
the Carson Valley Bank is but
$50 900 and that except for my
voluntary deposit of $500,000 the
bank conld not pay the amount Of
the States claim, and the State
and all depositors of the Carson
Valley Bank would suffer a tre-
mendous loss.
To the end. therefore, that pro-
longer litigation and a condition.
which cannot be conducive to the
best interest of the State. may be
terminated, I trust that in the
event you decide to call a special
session OF the legislature at this
time that you incorporate in your
call the matters herein mentioned.