Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1908-02-19
DESIRES time TO
secure EVIDENCE
Continued from Page IL

Both conditions prevailed with
reference TO the State Bank and
Trust Company, on the 10th day
of November, 1907, when the re-
port to the State Bank Commits
SiOnerS was submitted by the
State Bank Examiner. The bank
was then, tO-Wit, on the 18th
day of November, 1907, and is
now, inSOlvent, and was then
conducting business in an I'M
safe manner in so far as its
creditors and depositOrs are
concerned. In connection there
with your attention is called to
the fact that the State Bank
Examiner did, on the 9Th day of
February, notify the State Board
of Bank Commissioners that he
believed that the institution
known as the State Bank and
Trust Company should be imme-
diately ordered to discontinue,
and his letter is on file, as we
understand it, with said Board.
We find the liabilities of the
institution on that date to be
1878, 93S.42 in excess of its re-
sources. In other words, it was
nearly 100000 short of being
able to pay its liabilities.
That the second condition pre-
vailed is VIGOROUSLY true from
the fact that before that date all
branches of that institution
closed their doors, suspended
business and dishonored the
checks of its depositOrs. Not
withstanding the fact that this
condition was made known to
the State Bank Commissioners
ON that date, and nothwithstand-
ing the further fact that the re-
port of the State Bank Exam
iner to that board disclosed the
unsafe and unreliable manner
of doing business, we are unable
to find that the Board of State
any action in this important mat
ter.
We beg leave to call the at
tention of the Grand Jury to
Section o of an act entitled IAN
Act to provide for the incor-
pOration of banks, banking in
situations and savings deposits"
on page 364 of the Session Laws
of 1907, which in substance and
words reads as follows: mo
directors or officers of any bank
ing corporations shall become
cndorsers CT sureties for loans
for Others, or in any manner be-
come obIigOr for moneys bor-
rowed of or loaned by such corr
porations."
That we have found that there
has been violation Of this pro-
vision of the statute, beyond
question from the testimony
and evidence which is before us.
We beg leave through the voice
of this body to call attention
again to the violation of Section
10 of the same act:. mo di-
rector or officer of any banking
corporation can be directly or
indirectly for himself, or as an
agent for others, borrow any of
the deposits or other funds of
the corporation unless he give
good and sufficient security for
the payment of the said loan,
which said security must be ap.
proved by the Board of Direc-
tors of the corporation"
The unquesJioned evidence is
before us that there has beer
IA fragrant violation of this pro.
vision and it is not necessary
for us to cite the evidence OF
the parties giving It.
We beg leave to call the at
tention of this body to the VIC
lation of that statute found OF
page IA of the Session Law,
of 1907, which reads as follows
Every officer, agent, teller OF
clerk of any bank and every in
dividual banker or agent, tellcl
or clerk of any individual bank
err, who receives any deposits
knowing that such hank, or as
sociation or banker i insolvcnt
shall he guilty OF embczzlc
mcnt."
In this connection we agail
refer to section a of the tc
on page 36i, which r~ads: -
shall h' unlawful for any prcsi
dent, director. manager. cashic
or ether ofiierr of any hankin
institution to assent to the -
ecpglon og deposits and the CIV