Carson City daily appeal. [volume] (Carson City, Nev.) 1907-1930, 1908-07-20

these statements as being correct, but
when demand for payment was made
by your Receiver he was met with
Yes, they are good. If the man gets
the money he will pay" This ap,
pears to have been the guiding prin-
ciple for many embarrassing loans
''If he gets the money he will pay"
Employees at these branches were
| frequently notified to call in loans
which at that time may have been
possible of collection, but no informa-
| ton is at hand which would indi-
cate that any serious effort was ever
really made to do so, resulting, of
| course, in accounts reaching pro
portions all out of reason and without
| original or subsequent justification.
The Sullivan Trust Company Loan
These people first established a
large credit with the bank in Cold
field. Neither the John S. Cook Bank
nor the Nye and Ormsby Bank want
ed the account. This bank, how
ever, bid for it and got it-good. The
loss might not have been so great
if mere ordinary common sense had
been used, to say nothing OF eie-
mentary banking knowledge COL
lections of large amounts were cred
tied to the Sullivan Trust Company
before any advice of remittance was
received-and in fact upon the DAY
of presentation. At first these col
lections were met when presented,
but their very nature was menace.
II offered splenuid opportunity for
the Sullivan Trust people. were they
so disposed, to hand in dummy co.,
lections. thereby apparently reducing
their Indebtedness to the bank. rms
would extend their credit still further
of course, and their account could
attain marvellous growth during the
few days required for report upon
these doubtful collections. They
sholud have been sent for collecuon,
whereas they were recorded as Cash
Remittances and Immediately the
company's credit extended corresonu-
ingly.
This whole affair was "fshy' in
the extreme. and the bank people
were gulled by adopts at the business.
No banks elsewhere would have con-
sidered the collections as remittan-
ces and entitled to bank credit for
moment.
Your Receiver. is told. that the
Assistant Cashier at Goldfield refused
these loans in the first instance. but
was prevailed upon, by Preident
Hickey, to accept them.
Another Cause
Had the State Bank and Trust
Company building at Tonopah, been
domiciled in Wall Street, New York,
and had its capital been Ten Million
Dollars this structure would have
monument to its lavish disregard of
expenditure. Tonopah is not Wall
Street, however, and Nevada is not
New York, and so instead this build.
ing is simply white elephant. Over
One Hundred Fifty Thousand Dol.
lars (s15O ,OO0O.0O) out of total
capital of Two Hundred Thousand
Dollars $500, 900 .00) was expended to-
erect this structure in a mining town,
which, be it ever so prosperous and
promising cannot by any stretch of
good business judgement, be thought
as permanent and SAFE as an asrlcul-
tural community.
1t was represented to the Directors
of this concern, it is asserted, that
the enormous and unreasonable rent.
ais to be received for quarters in
this building. would pay for its erect
ion in two and one-half years. This
was absolute mis- representation of
existing and probable facts. The
people who submitted to the other
wise prohibitive rental rates did so
with the specific understanding that
rebate of approximately fifty per
cent $50 per cent? would be made
at some indefinite time in the future.
The furniture and fixtures of this
building would grace the Bank of
California in San Francisco, and
certainly never were required or
justified in a town of the size of Tono-
pah. '1-f s
Three quarters of the entire capi-
tai of this corporation was invested
in this gigantic monument to the
folly of it's builders.
The folly of these Directors in
permitting the erection of such
structure is something appalling.
Had these gentlemen gone on the
ground themselves and made thor
oug investigation of the project they
such terms as to effectively stop any
made some effort to sell the property
but it did not take long to convince
me that this was absolutely impOss-
ible at the present time; this left
only the alternative of leasing and
renting to the best possible advant-
age, making it less Of burden than
1t otherwise would be. 1t seems
reasonable to assume that filling 1t