Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1908-02-20
CASHIER CUSHMAN
MAKES A REPLY
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committee was authorized by the
Grand Jury to make an examination
of the affairs of the Tonopah agency,
and report to said Grand Jury The
attorney for the bank, Mr.. w. B.
Pittman, was present at this inter-
view, and in more explicit terms
stated plainly the objections of the
bank, both legal and otherwise. to
an examination being made by par
ties not authorized to take such ac-
ton. The committee then withdrew,
stating that under the circumstances
it was deemed advisable to ascertain
more fully its authority to make the
examination. State Bank Examiner
Miller, who had already commenced
an examination of the books, then
said that he would stop the examin-
alton at that point, as he did not
think it necessary to proceed | i'm
mediately demanded of Major Miller,
as State Bank Examiner. that he pro-
coed with his examination of this
agency. | claimed that so much had
been published in a general way re-
garGing the condition of the agency
| here that he must proceed at this
time to make thorough eXamina-
ton. | stated that | had nothing to
conceal; everything was open for the
inspection of all persons having the
right to go over our books, and that
he must go on with his examination
in his official capacity as State Bank
| Examiner.
This was done. and full exam
ination of the condition of affairs
here, including all collaterals, ETC.,
was made by him.
In making our objections to the
examination of the affairs OF this
bank other than by the State Bank
Examiner, ! certainly endeavored to
make our position perfectly clear
to the effect that we considered the
clients of this bank had the right to
be protected, and that no person or
! persons should. without good reason,
know to what extent any client of
/ the bank was indebted to the bank,
or what amount said client might
have on deposit.
\ Noting the statement particularly
| to the effect that the Tonopah agency
at this time had something like $500
! in coin on hand, with liabilities that
run to about 100000. why does not
the Grand Jury in making such state
ment do the officials of this bank the
! justice to explain the reason of there
being such a small sum of money on
hand, and if it publishes any figures
/ at all, why does it not give them
correctly? The Tonopah agency of
/ the State Bank and Trust Company
/ owes its depositors today not TO ex-
coed $160.000.00. This agency has
always had large account with its
Carson office, as We have used large
amounts of the surplus funds, pay
| ing therefor interest, as we could
use at times money to better advan-
tage at Tonopah than could be done
at Carson.
The liabilities outside of the
amount due depositors, as stated
above, are due our principal bank
at Carson. We have large amount
of money due us from debtors of
the bank and at the time loans were
made to these clients, the stocks
placed with us as collateral were
considered absolutely good and far
above the amount loaned on them.
The assets and collateral of the Ton
opah agency is ample to pay every
deposition of such agency.
The Grand Jury, in its severe criti.
cism of the management OF this
. oSShNN hdo SOSh III W
pletely this fact and also the fact
that during the past six or eight
months all stocks have deprecated
to an extent before unheard of.
The policy of the bank has been
and is. to protect both its depositors
and those borrowing money, in ever,
way possible No one could antici
pate such a decline in the value oil
i, securities. and the bank. in place oil
! sacrificing all of the stocks it hello
belonging 10 the clients who hat
borrowed money from the bank. III,
: not. as a rule. throw these on
: weak and declining market. but hai
= endeavored to hold them until IN,
; market has recovered sufficiently /,
realize a fair value ON said securi