Las Vegas age. [volume] (Las Vegas, Nev.) 1905-1947, 1927-08-13
STAGE ALL SET FOR
COLE-MALLEY TRIAL
Drama Opens Monday, Aug.
is, When Former State
Treasurer and Controller
Go On Trial For Embezzle-
ments.

The little courtroom in the
Ormsby county courthouse at Car
son City will be the scene of
Nevadas greatest legal drama
August 18th, at 10 o'clock when
Ed Malley and George Cole go
on trial.
The actors have been sum-
moned, and the stage is set.
The actors will include many
of the states most prominent resi-
dents.
The two in the leading roles of
defendants are men described as
once the states best known and
best loved citizens.
Ed Malley, who until a few
months ago had served Nevada
as state treasurer for eight years,
has been a resident of the state
for 20 years. He is known in
every corner of the state and
was highly popular.
George Cole former state con-
troller, has lived in Nevada 30
years and also is known in every
section.
CIapp to Appear
The third member of the trio
of George Cole, Ed Malley and
H. C. Clapp also will be in the
scene.
Clapp is expected to be one of
the principal witnesses for the
prosecution of Malley and Cole,
accused of embezzling $516,322. 16
from the treasury of Nevada, hav-
ing pleaded guilty TO his part in
the gigantic scheme and intimated
in court that he would give evi-
dence for the state.
Malley, Cole and Clapp-for
weeks those names were on the
lips of every Neyadan last spring,
when they were charged with one
of the greatest swindling plots in
the history of the nation.
Clapp IS fopmer cashier of the
Carson Valley bank, and was an
indispensable link in the perfect
circle" which the three are al
legged to have formed to cover de
falcatiOns.
Circle Is Broken
1t was not until he had been
discharged from his position by
George Wingfield, president of the
bank, for actions in no way con-
nected with the alleged embez-
element, that disclosure of the
scheme was made.
Then, May 7, the bomb was
burst.
Governor Fred B. Balzar filed
charges against Malley, accusing
Cole and Clapp with aiding and
encouraging him in the suspected
swindle.
Nevada was shocked, probably
as it had never previously been
shocked. The names of the men
their regulations and the magni
tude of the alleged swindle caused
the state to gasp.
Thrilling Hours Seen
Thrilling hours were witnessed
in Carson City, as rumors flew
about that the little bank might
be in peril, but Wingfield an
nounced that he had taken ample
steps to protect depositors, and
after a few hours the near panic
,.ubsided, but not yet has the tree
lined main street of the state
capital ceased carrying stories of
the Malley, Cole, Clapp machina-
tion5.
Monday, May 8, Attorney Cen
eral M. A. Diskin asked that the
governor appoint special counsel
to aid aim in the prosecution,
'fthat no possible criticism can be
raised that, because of political
or other reasons, the prosecution
for the state was not conducted
with the utmost diligence and
skill"
Counsel Selected
Balzar shortly afterward named
Lester D. Summerfield, district at
torney of Washoe county, and n.
]. Barry, Reno attorney, to assist
Diskin in the case. John M.
Chartz, district attorney of Orms-
by county, also will be of counsel
for the prosecution.
Malley and Cole will be repre-
sented by P. A. McCarran, former
justice of the supreme court. 1t is
probable that other attorneys will
assist McCarran in the defense,
but the attorney said yesterday
that no definite arrangements have
been made. A final conference is
expected 10 be held today.
The three men were indicted by
grand jury May 20, with seven
true bills being returned.
Witnesses before the grand
jury were George Wingfield, ]. H..
White, secretary to Governor Bal
gar; w G. Greathouse, secretary
of state; Ed Peterson, state con-
troller; George B. Russell, ap-
pointed by Governor Balzar as
Continued on Page Six.)