Carson City daily appeal. [volume] (Carson City, Nev.) 1907-1930, 1908-08-13
ANOTHER SCANDAL
STATE BANK AFFAIRS
Exorbitant Sum Charged FOR
Bond Of Receiver. Invest
isationS Now in Progress

what promises to he scandal
state Bank and Trust company affairs
has come to light in regard to the
premium paid by Receiver Frank L.
Wildes Of the State Bank TO the COM
panies which went on his one million
dollar bond which he was required TO
file when appointed to the position by
Judge Langan.
1herehas also been Il chaGe made
AGAINST the Receiver OF holding out
on the depositors OF the bank ana
paving an excessive amount for the
.aretlcs. This accusation originally
came from the Reno Gazette issue OF
last night and as a result MIR. Wildes
departed for the riverside town o.: the
evening train to consult with his at
torueys Mack and Green in the ntic
ter.
There has also been acharge made
the matter seems to be the opinion OF
many who are familiar with the pro-
ceedings of securing the bond requir-
ed by the court. Mr.. Wildes has been
working on the case for the past ten
DAYS trying To locate the guilty parties
II there were any in regard to the
charging of the premium for the bonds
Those who are personally acquaintee
with Receiver Wildes do not for
minute believe that he is in any way
connected with the affair and the lat
ter belief is shared by majority OF
people in this city. Mr.. Wildes has
always born clean reputation, is
conservative business man in every
way and a man fitted to handle the
State Bank and Trust Company mess.
That he would in any way lay NAL
self liable seems to be out oil the ques-
ton and from reports he is as anx-
ious to clear the matter up as anyone.
From what can be learned the con-
dltions as they now exist are about
a. follows
At the hearing of the motion Tor the
appointment OF a receiver Cashier IA
Wis of the bank stated that the assets
OF the institution were in the neish-
borhood of $l,600000. When r. L.
Wildes was appointed receiver these
figures we're taken into consideration
ard the bond was placed at one mil
lion dollars.
Immediately the surety companies
began to rustic around Tor the pusi-
ness and T. r. Hofer OF this city, az
agent for several surety companies
nnderwrote the whole bond. A rate
of s11OO as premium was quoteo
which was satisfactory and the Doho
WAS executed, five companies Taxing
q nroportion OF the business anc
signing the bond.
.Iudge Mack, attorney for the re-
ceiyer examined the bond and report
ed TO Judge Langan that it was COY
rect as to form but that RESTRICTIONS
were Incorporated in 1t that couid no
becomplied with by he receiver. A new
bond was ordered and this time th'
nremium amounted to $500 instea'
llUU the diuouht pau So
mer Lond. An additional charge o
stEo was also made owing to the re
firing Of one OF the former compan
lea from the bond, this additional sun
being charged for services IN secu'
ing another company to take the piac
81 the retiring one. According 10 IN
receiver he could get the bond iron
no other source than these suret
conpanies and had no alternative pu
TO pay the price.
check was drawn. for the amoun
Of s2e50 by the receiver payable l
7. r. Hofer and the same was cashe'
when everything was believed
have been settled along came a rel
resentative OF one OF the surety com
panies and informed the receiver Una
he had been overcharged to the am
cunt OF about $3.50, the amount pal
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