Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1904-10-19
A RECEIVER FOR
SCHETTLER'S BANK
Had Violated State Law by Doing
Business on an Insufficient
Capital.
INSTITUTION WAS INSOL VENT.
Law Required That the Paid up Capital
Should be 10000 While Business
Had Been Done on $4,000

Upon the petition Of secy OF state
James IT, Hammond, for the state OF
Utah, Judge Hall today appointed Rob.
ert r. Anderson as receiver OF the bank
OF B. H. Schettler at % south East
Temple street and fixed his bond at
$4,000 The petition asking for a re-
ceiver was fled In the district court
this morning and with Il was writ
ten waiver Of service by Mr.. schettler
and his consent to the appointment Of
a receiver
The action is brought In compliance
with section 1885 OF the Revised Statutes
OF Utah for 1898, which requires that
private bank doing business I'm this
city must have paid up capital Of at
least $4,000. ii Is further alleged In
the petition that the report made by
MI Schettler on Sept s, 1904 OF the
condition OF the bank shows that the
capital paid In is only 5000. The as
sets amounted to Sll5SSS.99 and the
Liabilities amounted 10 the same. The
report also shows that the available as
sets on hand amount TO Sl0SS6. 40,
which amount II Is alleged IN the Pc
tition, is wholly inadequate to liquidate
the liabilities of said bank.
by reason Of said conditions Il Is al
legged that the bank conducted by Mr
schettler has become insolyent and he
has violated the law In that he has
failed to have and maintain a paid up
capital OF $4,000 as required by law.
The appointment OF the receiver was
made as stated above and his bond was
filed today and approved by the court
RECEIVER ANDERSON.
Receiver r, h. Anderson was found
IN the bank early this afternoon. and
asked for q statement OF affairs: but
he said that he had only been In charge
OF the Institution about an hour, having
been appointed at II o'clock by Judge
W. G.. Hall as receiver Consequently
he had not had an opportunity as yet 10
30 through the books Of the bank, and
did not feel qualified to make any
statement
MR., sCHETTLER TALKS.
Banker b. II. Schettler stated in
response 10 queries that the secretary
Of state had found fault with the
banks capitalization which was only
$1,000 where. under the statutes ID
should be $4,000. and IN consequence
had concluded Il was best 20 close un-
al the capital had been increased ac-
cOrdng TO law "The bank was lncor-
porated, said Mr. Schettler, under the
old territorial laws. which allowed OF
the rather small capitalization. and up
to this date II had been allowed 10 con-
tinue. But now, the secretary conclud-
ed IL was bes, TO enforce the law"
Mr. Schetter called attention TO the
fact that "the item Of Sl0,Ss6 40 given
IN the report, was cash on hand and
only a part Of the banks assets which
amounted 10 very much more than this
sum. In addition to this cash on hand.
the bank had 10000 invested IA real es
ate and $4,000 IN notes, so that the
finances of the institution were per-
fectly straight and satisfactory"
When asked az to whether the banks
capital would be increased according
20 the law and business continued, Mi
Scheltler said that he could not ans.
wer that question,
Receiver Anderson has secured
hondsmen IN W. S. Mccormick for Si20,.
900, and W, A. Rossitcr Tor 5000
LAST MONTHS STATEMENT
The following Is a copy OF the sworn
statement OF the banks finances made
TO the secretary OF state on Sept OF
this year, by b. II. Schettler. and which
was subsequently published according
10 the law governing bank statements
RESOURCES
Loans and discounts ........S 81, Soi.8q